10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	December 28, 2019

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ________ to ________.

Commission file number 1-34192

MAXIM INTEGRATED PRODUCTS, INC.

(Exact name of registrant as specified in its charter)

Delaware	94-2896096
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer I. D. No.)

160 Rio Robles

San Jose, California 95134

(Address of Principal Executive Offices including Zip Code)

(408) 601-1000

(Registrant’s Telephone Number, Including Area Code)

Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, $0.001 par value	MXIM	The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller” reporting company in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company
☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revisited financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). (Check one): Yes ☐ No ☒

As of January 17, 2020, there were 269,394,184 shares of Common Stock, par value $.001 per share, of the registrant outstanding.

MAXIM INTEGRATED PRODUCTS, INC.

INDEX

PART I - FINANCIAL INFORMATION	Page
Item 1. Financial Statements (Unaudited)	3
Condensed Consolidated Balance Sheets as of December 28, 2019 and June 29, 2019	3
Condensed Consolidated Statements of Income for the Three and Six Months Ended December 28, 2019 and December 29, 2018	4
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended December 28, 2019 and December 29, 2018	5
Condensed Consolidated Statements of Shareholders' Equity for the Three and Six Months Ended December 28, 2019 and December 29, 2018	7
Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 28, 2019 and December 29, 2018	6
Notes to Condensed Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3. Quantitative and Qualitative Disclosures About Market Risk	30
Item 4. Controls and Procedures	30
PART II - OTHER INFORMATION	31
Item 1. Legal Proceedings	31
Item 1A. Risk Factors	31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3. Defaults Upon Senior Securities	31
Item 4. Mine Safety Disclosures	31
Item 5. Other Information	31
Item 6. Exhibits	32
SIGNATURE	33

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

MAXIM INTEGRATED PRODUCTS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	December 28, 2019			June 29, 2019
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,720,194		$	1,757,342
Short-term investments	63,006			140,990
Total cash, cash equivalents and short-term investments	1,783,200			1,898,332
Accounts receivable, net of allowances of $723 at December 28, 2019 and $148 at June 29, 2019	348,342			360,016
Inventories	223,958			246,512
Other current assets	23,797			34,640
Total current assets	2,379,297			2,539,500
Property, plant and equipment, net	571,359			577,722
Intangible assets, net	48,509			56,242
Goodwill	532,251			532,251
Other assets	95,413			38,267
TOTAL ASSETS	$	3,626,829		$	3,743,982
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	89,449		$	84,335
Price adjustment and other revenue reserves	105,237			100,490
Income taxes payable	38,307			33,765
Accrued salary and related expenses	94,739			118,704
Accrued expenses	32,739			33,873
Total current liabilities	360,471			371,167
Long-term debt	993,303			992,584
Income taxes payable	433,743			469,418
Other liabilities	112,803			65,537
Total liabilities	1,900,320			1,898,706
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock and capital in excess of par value	270			272
Retained earnings	1,737,528			1,856,358
Accumulated other comprehensive loss	(11,289		)	(11,354		)
Total stockholders’ equity	1,726,509			1,845,276
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	3,626,829		$	3,743,982

See accompanying Notes to Condensed Consolidated Financial Statements.

3

MAXIM INTEGRATED PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended					Six Months Ended
	December 28, 2019			December 29, 2018		December 28, 2019		December 29, 2018
	(in thousands, except per share data)
Net revenues	$	551,070		$	576,906	$	1,084,110	$	1,215,401
Cost of goods sold	190,546			203,858		380,263		412,117
Gross margin	360,524			373,048		703,847		803,284
Operating expenses:
Research and development	111,914			110,303		220,903		223,011
Selling, general and administrative	76,071			77,853		152,186		159,372
Intangible asset amortization	756			756		1,512		1,529
Impairment of long-lived assets	—			753		—		753
Severance and restructuring expenses	2,728			1,179		4,162		2,173
Other operating expenses (income), net	(1		)	—		24		60
Total operating expenses	191,468			190,844		378,787		386,898
Operating income	169,056			182,204		325,060		416,386
Interest and other income (expense), net	(17		)	472		1,812		(74		)
Income before provision for income taxes	169,039			182,676		326,872		416,312
Income tax provision	22,989			50,784		40,666		86,997
Net income	$	146,050		$	131,892	$	286,206	$	329,315
Earnings per share:
Basic	$	0.54		$	0.48	$	1.06	$	1.19
Diluted	$	0.53		$	0.47	$	1.04	$	1.17
Shares used in the calculation of earnings per share:
Basic	270,330			276,252		270,859		277,144
Diluted	273,269			280,008		273,884		281,414

See accompanying Notes to Condensed Consolidated Financial Statements.

4

MAXIM INTEGRATED PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019			December 29, 2018
					(in thousands)
Net income	$	146,050	$	131,892	$	286,206		$	329,315
Other comprehensive income (loss), net of tax:
Change in net unrealized gains and losses on available-for-sale securities, net of tax benefit (expense) of $(3), $(201), $(17) and $(228), respectively	—		885		118			1,977
Change in net unrealized gains and losses on cash flow hedges, net of tax benefit (expense) of $(117), $(96), $48 and $(310), respectively	610		423		(249		)	1,518
Change in net unrealized gains and losses on post-retirement benefits, net of tax benefit (expense) of $(20), $(18), $(42) and $(37), respectively	98		76		196			154
Other comprehensive income (loss), net	708		1,384		65			3,649
Total comprehensive income	$	146,758	$	133,276	$	286,271		$	332,964

See accompanying Notes to Condensed Consolidated Financial Statements.

5

MAXIM INTEGRATED PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended
	December 28, 2019			December 29, 2018
	(in thousands)
Cash flows from operating activities:
Net income	$	286,206		$	329,315
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	48,738			42,153
Depreciation and amortization	48,008			57,994
Deferred taxes	(2,231		)	(8,206		)
Loss (gain) on disposal of property, plant and equipment	489			2,896
Other adjustments	5,961			636
Changes in assets and liabilities:
Accounts receivable	16,421			19,798
Inventories	22,583			3,497
Other assets	(55,820		)	(6,587		)
Accounts payable	4,844			2,401
Income taxes payable	(31,133		)	33,261
Accrued salary and related expenses	(23,965		)	(45,783		)
Other liabilities	58,634			60
Net cash provided by (used in) operating activities	378,735			431,435
Cash flows from investing activities:
Purchases of property, plant and equipment	(34,301		)	(30,913		)
Proceeds from sale of property, plant and equipment	171			2
Proceeds from sale of available-for-sale securities	—			27,253
Proceeds from maturity of available-for-sale securities	78,067			718,554
Payment in connection with business acquisition, net of cash acquired	—			(2,949		)
Purchases of available-for-sale securities	—			(214,587		)
Purchases of private company investments	—			(906		)
Other investing activities	(68		)	—
Net cash provided by (used in) investing activities	43,869			496,454
Cash flows from financing activities:
Repayment of debt	—			(500,000		)
Contingent consideration paid	(8,000		)	(8,000		)
Net issuance of restricted stock units	(17,566		)	(13,444		)
Proceeds from stock options exercised	8,820			13,843
Issuance of common stock under employee stock purchase program	18,535			17,689
Repurchase of common stock	(201,509		)	(320,056		)
Dividends paid	(260,032		)	(254,665		)
Net cash provided by (used in) financing activities	(459,752		)	(1,064,633		)
Net increase (decrease) in cash and cash equivalents	(37,148		)	(136,744		)
Cash and cash equivalents:
Beginning of period	$	1,757,342		$	1,543,484
End of period	$	1,720,194		$	1,406,740
Supplemental disclosures of cash flow information:
Cash paid, net, during the period for income taxes	$	63,692		$	60,946
Cash paid for interest	$	17,063		$	23,313
Noncash financing and investing activities:
Accounts payable related to property, plant and equipment purchases	$	12,360		$	14,660

See accompanying Notes to Condensed Consolidated Financial Statements.

6

MAXIM INTEGRATED PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

	Three Months Ended December 28, 2019
	Common Stock					Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Stockholders' Equity
	Shares		Par Value
	(in thousands)
Balance, September 28, 2019	270,883		$	271		$	—		$	1,793,012		$	(11,997	)	$	1,781,286
Net income	—		—			—			146,050			—			146,050
Other comprehensive income (loss), net	—		—			—			—			708			708
Repurchase of common stock	(1,862	)	(1		)	(36,321		)	(71,635		)	—			(107,957		)
Cumulative-effect adjustment for adoption of ASU 2016-02	—		—			—			(89		)	—			(89		)
Net issuance of restricted stock units	270		—			(7,623		)	—			—			(7,623		)
Stock options exercised	50		—			1,338			—			—			1,338
Stock-based compensation	—		—			24,071			—			—			24,071
Common stock issued under Employee Stock Purchase Plan	402		—			18,535			—			—			18,535
Dividends paid, $0.48 per common share	—		—			—			(129,810		)	—			(129,810		)
Balance, December 28, 2019	269,743		$	270		$	—		$	1,737,528		$	(11,289	)	$	1,726,509

	Six Months Ended December 28, 2019
	Common Stock					Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Stockholders' Equity
	Shares		Par Value
	(in thousands)
Balance, June 29, 2019	271,852		$	272		$	—		$	1,856,358		$	(11,354	)	$	1,845,276
Net income	—		—			—			286,206			—			286,206
Other comprehensive income (loss), net	—		—			—			—			65			65
Repurchase of common stock	(3,484	)	(2		)	(58,556		)	(142,951		)	—			(201,509		)
Cumulative-effect adjustment for adoption of ASU 2016-02	—		—			—			(2,053		)	—			(2,053		)
Net issuance of restricted stock units	657		—			(17,566		)	—			—			(17,566		)
Stock options exercised	316		—			8,820			—			—			8,820
Stock-based compensation	—		—			48,767			—			—			48,767
Common stock issued under Employee Stock Purchase Plan	402		—			18,535			—			—			18,535
Dividends paid, $0.96 per common share	—		—			—			(260,032		)	—			(260,032		)
Balance, December 28, 2019	269,743		$	270		$	—		$	1,737,528		$	(11,289	)	$	1,726,509

See accompanying Notes to Condensed Consolidated Financial Statements.

7

MAXIM INTEGRATED PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

	Three Months Ended December 29, 2018
	Common Stock				Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Stockholders' Equity
	Shares		Par Value
	(in thousands)
Balance, September 29, 2018	277,430		$	279	$	—		$	1,924,764		$	(12,720	)	$	1,912,323
Net income	—		—		—			131,892			—			131,892
Other comprehensive income (loss), net	—		—		—			—			1,384			1,384
Repurchase of common stock	(3,960	)	—		(44,181		)	(163,377		)	—			(207,558		)
Net issuance of restricted stock units	281		—		(5,916		)	—			—			(5,916		)
Stock options exercised	191		—		7,235			—			—			7,235
Stock-based compensation	—		—		21,702			—			—			21,702
Modification of liability to equity instruments (1)	—		—		3,471			—			—			3,471
Common stock issued under Employee Stock Purchase Plan	384		—		17,689			—			—			17,689
Dividends paid, $0.46 per common share	—		—		—			(126,808		)	—			(126,808		)
Balance, December 29, 2018	274,326		$	279	$	—		$	1,766,471		$	(11,336	)	$	1,755,414

	Six Months Ended December 29, 2018
	Common Stock					Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Stockholders' Equity
	Shares			Par Value
	(in thousands)
Balance, June 30, 2018	278,664			$	279	$	—		$	1,945,646		$	(14,985	)	$	1,930,940
Net income	—			—		—			329,315			—			329,315
Other comprehensive income (loss), net	—			—		—			—			3,649			3,649
Repurchase of common stock	(5,822	)		—		(63,744		)	(256,312		)	—			(320,056		)
Cumulative-effect adjustment for adoption of ASU 2016-01	—		—	—		—			2,487			—			2,487
Net issuance of restricted stock units	578			—		(13,444		)	—			—			(13,444		)
Stock options exercised	522			—		13,843			—			—			13,843
Stock-based compensation	—			—		42,185			—			—			42,185
Modification of liability to equity instruments (1)	—			—		3,471			—			—			3,471
Common stock issued under Employee Stock Purchase Plan	384			—		17,689			—			—			17,689
Dividends paid, $0.92 per common share	—			—		—			(254,665		)	—			(254,665		)
Balance, December 29, 2018	274,326			$	279	$	—		$	1,766,471		$	(11,336	)	$	1,755,414

________________

(1) In December 2018, $3.5 million was reclassified from accrued salaries to additional paid-in capital due to a settlement agreement relating to the expiration of stock options.

See accompanying Notes to Condensed Consolidated Financial Statements.

8

MAXIM INTEGRATED PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1: BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Maxim Integrated Products, Inc. and all of its majority-owned subsidiaries (collectively, the “Company” or “Maxim Integrated”) included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“GAAP”) have been condensed or omitted pursuant to applicable rules and regulations. In the opinion of management, all adjustments of a normal recurring nature which were considered necessary for fair statement have been included. The year-end condensed consolidated balance sheet data were derived from audited consolidated financial statements but do not include all disclosures required by GAAP. The results of operations for the six months ended December 28, 2019 are not necessarily indicative of the results to be expected for the entire year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended June 29, 2019.

The Company has a 52-to-53-week fiscal year that ends on the last Saturday in June. Accordingly, every fifth or sixth fiscal year will be a 53-week fiscal year. Fiscal years 2019 and 2020 are 52-week fiscal years.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Recently Issued Accounting Pronouncements

(i) New Accounting Updates Recently Adopted

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). Topic 842 states that lessees will recognize a lease liability for the commitment to make lease payments and a right-of-use asset for the underlying asset, for the duration of the lease. The FASB also issued ASU 2018-10 and ASU 2018-11 which provide improvements to ASU 2016-02 and an additional transition method option, respectively. This transition method allows a Company to apply the new lease accounting standard on adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted ASU 2016-02 in the first quarter of fiscal year 2020.

The Company adopted the new standard using the modified retrospective method and electing the optional transition method practical expedient. Under the optional transition method, the Company recognized a cumulative-effect adjustment to the consolidated balance sheet and did not adjust comparative prior period information.

The Company elected multiple practical expedients permitted:

• the hindsight practical expedient, in which the Company elected to use hindsight up until the effective date in determining the lease term and assessing impairment of right-of-use assets;

• the practical expedient package that allows the Company to carry forward its determination of whether a lease exists, the classification of a lease, and whether initial direct lease costs exist for purposes of transition to the new standard; and

• the practical expedient to combine lease and non-lease components.

The Company also elected an accounting policy in which it will not apply the recognition requirements to leases with an initial term of 12 months or less.

Effective June 30, 2019, the first day of adoption, the Company recognized $61.0 million of operating lease right-of-use assets and $65.2 million of operating lease liabilities on its Consolidated Balance Sheet. The difference of $4.2 million was primarily due to deferred rent, partially offset by prepaid rent for leases that existed as of the date of adoption, which decreased the opening balance of lease right-of-use (ROU) assets.

9

Updated Lease Accounting Policy

The Company determines if an arrangement is, or contains, a lease at inception. ROU assets are recorded as other assets, short-term lease obligations are recorded as accrued expenses and long-term lease obligations are recorded as other liabilities on the Company's Consolidated Balance Sheet. The Company’s classes of assets include real estate leases, equipment leases, and vehicle leases.

Lease ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When discount rates implicit in leases cannot be readily determined, the Company uses its incremental borrowing rate based on information available at commencement date in determining the present value of future payments.

Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. Lease expense is recognized on a straight-line basis over the lease term. The Company elected to combine lease and non-lease components for all asset classes. In addition, the Company does not apply the recognition requirements to leases with lease terms of 12 months or less.

NOTE 3: BALANCE SHEET COMPONENTS

Inventories consist of:

	December 28, 2019		June 29, 2019
	(in thousands)
Raw materials	$	13,222	$	16,121
Work-in-process	142,551		160,273
Finished goods	68,185		70,118
Total inventories	$	223,958	$	246,512

Property, plant and equipment, net, consist of:

	December 28, 2019			June 29, 2019
	(in thousands)
Land	$	17,720		$	17,720
Buildings and building improvements	306,052			265,191
Machinery, equipment and software	1,338,349			1,367,606
Total	1,662,121			1,650,517
Less: accumulated depreciation	(1,090,762		)	(1,072,795		)
Total property, plant and equipment, net	$	571,359		$	577,722

Accrued salary and related expenses consist of:

	December 28, 2019		June 29, 2019
	(in thousands)
Accrued vacation	$	31,223	$	30,251
Accrued bonus	35,182		71,466
Accrued salaries	8,886		8,329
Accrued fringe benefits	6,397		4,807
Other	13,051		3,851
Total accrued salary and related expenses	$	94,739	$	118,704

10

NOTE 4: FAIR VALUE MEASUREMENTS

The FASB established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are as follows:

Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities.

The Company’s Level 1 assets consist of money market funds.

Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

The Company’s Level 2 assets and liabilities consist of U.S. Treasury securities, agency securities, corporate debt securities, certificates of deposit, commercial paper and foreign currency forward contracts that are valued using quoted market prices or are determined using a yield curve model based on current market rates.

Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company's Level 3 assets and liabilities consist of acquisition-related contingent consideration liabilities.

Assets and liabilities measured at fair value on a recurring basis were as follows:

	December 28, 2019								June 29, 2019
	Fair Value  Measurements Using						Total Balance		Fair Value  Measurements Using						Total Balance
	Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash and cash equivalents
Money market funds	$	175,298	$	—	$	—	$	175,298	$	186,819	$	—	$	—	$	186,819
Short-term investments
Certificates of deposit	—		—		—		—		—		1,000		—		1,000
Corporate debt securities	—		63,006		—		63,006		—		139,990		—		139,990
Other current assets
Foreign currency forward contracts	—		361		—		361		—		651		—		651
Total assets	$	175,298	$	63,367	$	—	$	238,665	$	186,819	$	141,641	$	—	$	328,460
Liabilities
Accrued expenses
Foreign currency forward contracts	$	—	$	186	$	—	$	186	$	—	$	148	$	—	$	148
Contingent consideration	—		—		—		—		—		—		9,052		9,052
Total Liabilities	$	—	$	186	$	—	$	186	$	—	$	148	$	9,052	$	9,200

During the six months ended December 28, 2019 and the year ended June 29, 2019, there were no transfers in or out of Level 3 from other levels in the fair value hierarchy.

There were no assets or liabilities measured at fair value on a non-recurring basis as of December 28, 2019 and June 29, 2019 other than impairments of long-lived assets.

11

As of December 28, 2019 and June 29, 2019, the fair value of private company investments amounted to $20.9 million and $20.7 million, respectively. The aggregate amount of unrealized losses recognized from these investments were $3.0 million and $3.6 million, respectively, as of December 28, 2019 and June 29, 2019.

The Company recorded $0.6 million and $(0.8) million of unrealized gains (losses) on private company investments, during the three months ended December 28, 2019 and December 29, 2018, respectively. The Company recorded $0.6 million and $(0.7) million, of unrealized gains (losses) on private company investments during the six months ended December 28, 2019 and December 29, 2018, respectively. Unrealized gains (losses) on private company investments are recorded in Interest and other income (expense), net in the Company's Condensed Consolidated Statements of Income.

NOTE 5: FINANCIAL INSTRUMENTS

Short-term investments

Fair values were as follows:

	December 28, 2019									June 29, 2019
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
	(in thousands)
Available-for-sale investments
Certificates of deposit	$	—	$	—	$	—		$	—	$	1,000	$	—	$	—		$	1,000
Corporate debt securities	62,929		86		(9		)	63,006		140,031		68		(109		)	139,990
Total available-for-sale investments	$	62,929	$	86	$	(9	)	$	63,006	$	141,031	$	68	$	(109	)	$	140,990

In the three and six months ended December 28, 2019 and December 29, 2018, the Company did not recognize any impairment charges on short-term investments. All available-for-sale investments have maturity dates between January 15, 2020 and March 12, 2021.

The Company invests in various financial instruments including U.S. Treasury securities, corporate debt securities, commercial paper, and certificates of deposit which include instruments issued or managed by industrial, financial, and utility institutions and U.S. Treasury securities which include U.S. government Treasury bills and Treasury notes.

Derivative instruments and hedging activities

The Company incurs expenditures denominated in non-U.S. currencies, primarily the Philippine Peso and the Thai Baht associated with the Company's manufacturing activities in the Philippines and Thailand, respectively, and the European Euro, Indian Rupee, Japanese Yen, Taiwan New Dollar, South Korean Won, Chinese Yuan and Canadian Dollar, for sales offices and research and development activities undertaken outside of the U.S.

The Company has established a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effects of certain foreign currency exposures. The Company does not use these foreign currency forward contracts for trading purposes.

Derivatives designated as cash flow hedging instruments

The Company designates certain forward contracts as hedging instruments pursuant to Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”). As of December 28, 2019 and June 29, 2019, the notional amounts of the forward contracts the Company held to purchase international currencies were $41.4 million and $48.5 million, respectively. As of December 28, 2019 and June 29, 2019, the Company did not hold any forward contracts to sell international currencies.

Derivatives not designated as hedging instruments

As of December 28, 2019 and June 29, 2019, the notional amounts of the forward contracts the Company held to purchase international currencies were $50.3 million and $19.6 million, respectively, and the notional amounts of forward contracts the

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Company held to sell international currencies were $20.7 million and $21.1 million, respectively. The increase in forward contracts held to purchase international currencies from fiscal year 2019 to fiscal year 2020 was primarily due to the addition of operating lease liabilities, which were recorded on the Company’s Consolidated Balance Sheet upon adoption of the new lease accounting standard, Topic 842. The Company's foreign currency forward contract gains or losses included in the Condensed Consolidated Statements of Income were not material for the three and six months ended December 28, 2019 and December 29, 2018, respectively.

Effect of hedge accounting on the Condensed Consolidated Statements of Income

The following tables summarize the gains (losses) from hedging activities recognized in the Company's Condensed Consolidated Statements of Income:

	Three Months Ended							Three Months Ended
	December 28, 2019							December 29, 2018
	Net Revenue		Cost of Goods Sold		Operating Expenses				Net Revenue		Cost of Goods Sold			Operating Expenses
	(in thousands)
Income and expenses line items in which the effects of cash flow hedges are recorded	$	551,070	$	190,546	$	191,468			$	576,906	$	203,858		$	190,844
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	10	$	(404	)		$	5	$	(82	)	$	(602	)

	Six Months Ended							Six Months Ended
	December 28, 2019							December 29, 2018
	Net Revenue		Cost of Goods Sold		Operating Expenses				Net Revenue		Cost of Goods Sold			Operating Expenses
	(in thousands)
Income and expenses line items in which the effects of cash flow hedges are recorded	$	1,084,110	$	380,263	$	378,787			$	1,215,401	$	412,117		$	386,898
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	130	$	(774	)		$	44	$	(596	)	$	(1,827	)

Outstanding debt obligations

The following table summarizes the Company’s outstanding debt obligations:

	December 28, 2019			June 29, 2019
	(in thousands)
3.45% fixed rate notes due June 2027	$	500,000		$	500,000
3.375% fixed rate notes due March 2023	500,000			500,000
Total outstanding debt	1,000,000			1,000,000
Less: Reduction for unamortized discount and debt issuance costs	(6,697		)	(7,416		)
Total long-term debt	$	993,303		$	992,584

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On June 15, 2017, the Company completed a public offering of $500 million aggregate principal amount of the Company's 3.45% senior unsecured and unsubordinated notes due in June 2027 (“2027 Notes”), with an effective interest rate of 3.5%. Interest on the 2027 Notes is payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2017. The net proceeds of this offering were approximately $495.2 million, after issuing at a discount and deducting paid expenses.

On November 21, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Company’s 2.5% coupon senior unsecured and unsubordinated notes due in November 2018 (“2018 Notes”), with an effective interest rate of 2.6%. Interest on the 2018 Notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing on May 15, 2014. The net proceeds of this offering were approximately $494.5 million, after issuing at a discount and deducting paid expenses. In November of 2018, the Company repaid the entire $500 million in principal and any outstanding interest, related to these outstanding notes.

On March 18, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Company’s 3.375% senior unsecured and unsubordinated notes due in March 2023 (“2023 Notes”), with an effective interest rate of 3.5%. Interest on the 2023 Notes is payable semi-annually in arrears on March 15 and September 15 of each year. The net proceeds of this offering were approximately $490.0 million, after issuing at a discount and deducting paid expenses.

The debt indentures that govern the 2027 Notes and the 2023 Notes include covenants that limit the Company's ability to grant liens on its facilities and to enter into sale and leaseback transactions, which could limit the Company's ability to secure additional debt funding in the future. In circumstances involving a change of control of the Company followed by a downgrade of the rating of the 2027 Notes or the 2023 Notes, the Company would be required to make an offer to repurchase the affected notes at a purchase price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest.

The Company accounts for all the notes above based on their amortized cost. The discount and expenses are being amortized to Interest and other income (expense), net in the Condensed Consolidated Statements of Income over the life of the notes. The interest expense is recorded in Interest and other income (expense), net in the Condensed Consolidated Statements of Income. Amortized discount and expenses, as well as interest expense associated with the notes, were $8.9 million and $11.2 million during the three months ended December 28, 2019 and December 29, 2018, respectively. Amortized discount and expenses, as well as interest expense associated with the notes, were $17.8 million and $23.6 million, respectively, during the six months ended December 28, 2019 and December 29, 2018.

The estimated fair value of the Company’s outstanding debt obligations was approximately $1.03 billion as of December 28, 2019. The estimated fair value of the debt is based primarily on observable market inputs and is a Level 2 measurement.

The Company recorded interest expense of $9.3 million and $11.7 million during the three months ended December 28, 2019, and December 29, 2018, respectively. The Company recorded interest expense of $18.6 million and $24.6 million during the six months ended December 28, 2019, and December 29, 2018, respectively.

Other Financial Instruments

For the balance of the Company’s financial instruments, cash equivalents, accounts receivable, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to their short maturities.

NOTE 6: STOCK-BASED COMPENSATION

At December 28, 2019, the Company had one stock incentive plan, the Company's 1996 Stock Incentive Plan (the “1996 Plan”) and one employee stock purchase plan, the 2008 Employee Stock Purchase Plan (the “2008 ESPP”). The 1996 Plan was adopted by the Board of Directors to provide the grant of incentive stock options, non-statutory stock options, restricted stock units (“RSUs”), and market stock units (“MSUs”) to employees, directors, and consultants.

Pursuant to the 1996 Plan, the exercise price for incentive stock options and non-statutory stock options is determined to be the fair market value of the underlying shares on the date of grant. Options typically vest ratably over a four-year period measured from the date of grant. Options generally expire no later than seven years after the date of grant, subject to earlier termination upon an optionee's cessation of employment or service.

RSUs granted to employees typically vest ratably over a four-year period and are converted into shares of the Company's common stock upon vesting, subject to the employee's continued service to the Company over that period. RSUs granted after August 2017 will continue to vest post-employment at the Company for certain individuals satisfying specific eligibility requirements.

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MSUs granted to employees typically vest over a four-year cliff period and are converted into shares of the Company's common stock upon vesting, subject to the employee's continued service to the Company over that period. The number of shares that are released at the end of the performance period can range from zero to a maximum cap depending on the Company's performance. MSUs granted after August 2017 will continue to vest post-employment at the Company for certain individuals satisfying specific eligibility requirements.

The following tables show total stock-based compensation expense by type of award, and the resulting tax effect, included in the Condensed Consolidated Statements of Income for the three and six months ended December 28, 2019 and December 29, 2018, respectively:

	Three Months Ended								Three Months Ended
	December 28, 2019								December 29, 2018
	Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total		Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total
	(in thousands)
Cost of goods sold	$	5	$	2,269	$	699	$	2,973	$	9	$	1,884	$	495	$	2,388
Research and development	4		9,918		1,514		11,436		11		8,693		1,135		9,839
Selling, general and administrative	55		8,753		849		9,657		58		8,773		598		9,429
Pre-tax stock-based compensation expense	$	64	$	20,940	$	3,062	$	24,066	$	78	$	19,350	$	2,228	$	21,656
Less: income tax effect							2,193								2,304
Net stock-based compensation expense							$	21,873							$	19,352

	Six Months Ended								Six Months Ended
	December 28, 2019								December 29, 2018
	Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total		Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total
	(in thousands)
Cost of goods sold	$	14	$	4,549	$	1,368	$	5,931	$	19	$	3,646	$	1,002	$	4,667
Research and development	8		19,403		2,909		22,320		22		17,384		2,290		19,696
Selling, general and administrative	122		18,706		1,659		20,487		114		16,417		1,259		17,790
Pre-tax stock-based compensation expense	$	144	$	42,658	$	5,936	$	48,738	$	155	$	37,447	$	4,551	$	42,153
Less: income tax effect							5,081								4,268
Net stock-based compensation expense							$	43,657							$	37,885

The expense included in the Condensed Consolidated Statements of Income for RSUs include expenses related to MSUs of $2.4 million and $2.9 million for the three months ended December 28, 2019 and December 29, 2018, respectively, and $6.8 million and $5.3 million for the six months ended December 28, 2019 and December 29, 2018, respectively.

Stock Options

The fair value of options granted to employees under the 1996 Plan is estimated on the date of grant using the Black-Scholes option valuation model.

There were no stock options granted in the three and six months ended December 28, 2019 and December 29, 2018.

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The following table summarizes outstanding, exercisable and vested and expected to vest stock options as of December 28, 2019 and related activity for the six months ended December 28, 2019:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value(1)
Balance at June 29, 2019	777,413		$	28.30
Options Granted	—		—
Options Exercised	(302,708	)	27.82
Options Cancelled	(16,575	)	27.30
Balance at December 28, 2019	458,130		$	28.49	1.0	$	15,139,460
Exercisable, December 28, 2019	458,130		$	28.49	1.0	$	15,139,460
Vested and expected to vest, December 28, 2019	458,130		$	28.49	1.0	$	15,139,460

(1) Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company’s common stock on December 27, 2019, the last business day preceding the fiscal quarter-end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of December 28, 2019.

As of December 28, 2019, there was no unrecognized stock compensation from unvested stock options.

Restricted Stock Units and Other Awards

The fair value of RSUs and other awards under the Company’s 1996 Plan is estimated using the value of the Company’s common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Company’s common stock prior to vesting. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis.

The weighted-average fair value of RSUs and other awards granted was $56.21 and $50.90 per share for the three months ended December 28, 2019 and December 29, 2018, respectively, and $48.30 and $54.71 per share for the six months ended December 28, 2019 and December 29, 2018, respectively.

The following table summarizes the outstanding and expected to vest RSUs and other awards as of December 28, 2019 and related activity during the six months ended December 28, 2019:

	Number of Shares		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value(1)
Balance at June 29, 2019	4,918,306
Restricted stock units and other awards granted	1,550,765
Restricted stock units and other awards released	(795,156	)
Restricted stock units and other awards cancelled	(269,743	)
Balance at December 28, 2019	5,404,172		2.8	$	332,572,745
Outstanding and expected to vest, December 28, 2019	4,513,314		2.8	$	277,749,319

(1) Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company’s common stock on December 27, 2019, the last business day preceding the fiscal quarter-end, multiplied by the number of RSUs outstanding or expected to vest as of December 28, 2019.

The Company withheld shares totaling $7.6 million and $17.6 million in value as a result of employee withholding taxes based on the value of RSUs on their vesting date for the three and six months ended December 28, 2019. Total payments for employees’ tax obligations to taxing authorities are reflected as financing activities within the Condensed Consolidated Statements of Cash Flows.

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As of December 28, 2019, there was $175.2 million of unrecognized compensation expense related to 5.4 million unvested RSUs and other awards, which is expected to be recognized over a weighted average period of approximately 2.8 years.

Market Stock Units (MSUs)

The Company grants MSUs to senior members of management in lieu of granting stock options. For MSUs granted prior to September 2017, the performance metrics of this program are based on relative performance of the Company’s stock price as compared to the Semiconductor Exchange Traded Fund index SPDR S&P (the “XSD”). For MSUs granted in September 2017 and after, the performance metrics for this program are based on the total shareholder return ("TSR") of the Company relative to the TSR of the other companies included in the XSD. The fair value of MSUs is estimated using a Monte Carlo simulation model on the date of grant. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. Compensation expense is recognized based on the initial valuation and is not subsequently adjusted as a result of the Company’s performance relative to that of the XSD or the TSR of the companies included in the XSD, as applicable. Vesting for MSUs is contingent upon both service and market conditions and has a four-year vesting cliff period. MSUs granted after August 2017 vest based upon annual performance and are subject to continued service through the end of the four-year period but will continue to vest post-employment at the Company for certain individuals satisfying specific eligibility requirements.

The weighted-average fair value of MSUs granted was $54.70 and $75.48 per share for the six months ended December 28, 2019 and December 29, 2018, respectively.

The following table summarizes the number of MSUs outstanding and expected to vest as of December 28, 2019 and their activity during the six months ended December 28, 2019:

	Number of Shares		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value(1)
Balance at June 29, 2019	1,048,532
Market stock units granted	259,984
Market stock units released	(183,974	)
Market stock units cancelled	(140,290	)
Balance at December 28, 2019	984,252		2.8	$	60,570,868
Outstanding and expected to vest, December 28, 2019	350,417		2.7	$	21,564,655

(1) Aggregate intrinsic value for MSUs represents the closing price per share of the Company’s common stock on December 27, 2019, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of December 28, 2019.

As of December 28, 2019, there was $32.4 million of unrecognized compensation expense related to 1.0 million unvested MSUs, which is expected to be recognized over a weighted average period of approximately 2.8 years.

Employee Stock Purchase Plan

Employees are granted rights to acquire common stock under the 2008 ESPP.

The fair value of 2008 ESPP rights granted to employees has been estimated at the date of grant using the Black-Scholes option valuation model using the following assumptions for the offering periods outstanding:

	Three Months Ended		Six Months Ended
	December 28, 2019	December 29, 2018	December 28, 2019	December 29, 2018
Expected holding period (in years)	0.5 years	0.5 years	0.5 years	0.5 years
Risk-free interest rate	1.6% - 2.7%	1.6% - 2.6%	1.6% - 2.7%	1.6% - 2.6%
Expected stock price volatility	28.4% - 31.3%	19.6% - 32.7%	28.4% - 31.3%	19.6% - 32.7%
Dividend yield	3.1% - 3.4%	2.1% - 3.1%	3.1% - 3.4%	2.1% - 3.1%

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As of December 28, 2019 and December 29, 2018, there was $10.1 million and $8.6 million, respectively, of unrecognized compensation expense related to the 2008 ESPP.

NOTE 7: EARNINGS PER SHARE

Basic earnings per share are computed using the weighted average number of shares of common stock outstanding during the period. For purposes of computing basic earnings per share, the weighted average number of outstanding shares of common stock excludes unvested RSUs and other awards as well as MSUs. Diluted earnings per share incorporates the incremental shares issuable upon the assumed exercise of stock options, assumed release of unvested RSUs and other awards as well as MSUs, and assumed issuance of common stock under the 2008 ESPP using the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
	(in thousands, except per share data)
Numerator for basic earnings per share and diluted earnings per share
Net income	$	146,050	$	131,892	$	286,206	$	329,315
Denominator for basic earnings per share	270,330		276,252		270,859		277,144
Effect of dilutive securities:
Stock options, ESPP, RSUs, and MSUs	2,939		3,756		3,025		4,270
Denominator for diluted earnings per share	273,269		280,008		273,884		281,414
Earnings per share
Basic	$	0.54	$	0.48	$	1.06	$	1.19
Diluted	$	0.53	$	0.47	$	1.04	$	1.17

For the three and six months ended December 28, 2019 and December 29, 2018 no stock awards were determined to be anti-dilutive. Securities which would have been anti-dilutive are insignificant and were excluded from the computation of diluted earnings per share in all periods.

NOTE 8: SEGMENT INFORMATION

The Company designs, develops, manufactures and markets a broad range of linear and mixed signal integrated circuits. All of the Company's products are designed through a centralized R&D function, manufactured using centralized manufacturing (internal and external), and sold through a centralized sales force and shared wholesale distributors.

The Company currently has one operating segment and reportable segment. In accordance with ASC No. 280, Segment Reporting (“ASC 280”), the Company considers operating segments to be components of the Company’s business for which separate financial information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance. The Chief Operating Decision Maker for the Company was assessed and determined to be the CEO. The CEO reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating and reportable segment.

Enterprise-wide information is provided in accordance with ASC 280. Geographical revenue information is based on customers’ ship-to location. Long-lived assets consist of property, plant and equipment. Property, plant and equipment information is based on the physical location of the assets at the end of each fiscal year.

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Net revenues from unaffiliated customers by geographic region were as follows:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
	(in thousands)
United States	$	58,909	$	64,845	$	114,707	$	136,974
China	217,099		208,717		414,398		428,015
Rest of Asia	163,563		186,840		333,478		407,221
Europe	98,254		100,662		194,194		212,030
Rest of World	13,245		15,842		27,333		31,161
	$	551,070	$	576,906	$	1,084,110	$	1,215,401

Net long-lived assets by geographic region were as follows:

	December 28, 2019		June 29, 2019
	(in thousands)
United States	$	375,860	$	379,308
Philippines	97,784		102,634
Rest of World	97,715		95,780
	$	571,359	$	577,722

NOTE 9: COMPREHENSIVE INCOME (LOSS)

The changes in accumulated other comprehensive income (loss) by component and related tax effects in the six months ended December 28, 2019 and December 29, 2018 were as follows:

(in thousands)	Unrealized Gains and (Losses) on Intercompany Receivables			Unrealized Gains and (Losses) on Post-Retirement Benefits			Cumulative Translation Adjustment			Unrealized Gains and (Losses) on Cash Flow Hedges			Unrealized Gains and (Losses) on Available-For-Sale Securities			Total
June 29, 2019	$	(6,280	)	$	(4,322	)	$	(1,136	)	$	425		$	(41	)	$	(11,354	)
Other comprehensive income (loss) before reclassifications	—			—			—			(941		)	135			(806		)
Amounts reclassified out of accumulated other comprehensive (income) loss	—			238			—			644			—			882
Tax effects	—			(42		)	—			48			(17		)	(11		)
Other comprehensive income (loss), net	—			196			—			(249		)	118			65
December 28, 2019	$	(6,280	)	$	(4,126	)	$	(1,136	)	$	176		$	77		$	(11,289	)

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(in thousands)	Unrealized Gains and (Losses) on Intercompany Receivables			Unrealized Gains and (Losses) on Post-Retirement Benefits			Cumulative Translation Adjustment			Unrealized Gains and (Losses) on Cash Flow Hedges			Unrealized Gains and (Losses) on Available-For-Sale Securities			Total
June 30, 2018	$	(6,280	)	$	(2,516	)	$	(1,136	)	$	(1,383	)	$	(3,670	)	$	(14,985	)
Other comprehensive income (loss) before reclassifications	—			—			—			(551		)	2,205			1,654
Amounts reclassified out of accumulated other comprehensive (income) loss	—			191			—			2,379			—			2,570
Tax effects	—			(37		)	—			(310		)	(228		)	(575		)
Other comprehensive income (loss), net	—			154			—			1,518			1,977			3,649
December 29, 2018	$	(6,280	)	$	(2,362	)	$	(1,136	)	$	135		$	(1,693	)	$	(11,336	)

NOTE 10: INCOME TAXES

In the three and six months ended December 28, 2019 the Company recorded an income tax provision of $23.0 million and $40.7 million, respectively, compared to $50.8 million and $87.0 million for the three and six months ended December 29, 2018, respectively. The Company’s effective tax rate for the three and six months ended December 28, 2019 was 13.6% and 12.4%, respectively, compared to 27.8% and 20.9% for the three and six months ended December 29, 2018, respectively.

On December 22, 2017 legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Act”), was enacted. The Act included a one-time tax on accumulated unremitted earnings of the Company's foreign subsidiaries (“Transition Tax”). SEC Staff Accounting Bulletin No. 118 allowed the use of provisional amounts (reasonable estimates) if accounting for the income tax effects of the Act was not completed. Provisional amounts must be adjusted within a one-year measurement period from the enactment date of the Act. In the second quarter of fiscal year 2018, the Company recorded a discrete $236.9 million provisional Transition Tax charge. During the measurement period, the Company gathered additional information and analyzed available guidance to more precisely compute the amount of the Transition Tax. In the second quarter of fiscal year 2019, the Company completed this work and recorded a discrete $22.1 million measurement period adjustment for the Transition Tax, which increased the Company’s effective tax rate for the three and six months ended December 29, 2018 by 12.1% and 5.3%, respectively. As of the end of the second quarter of fiscal year 2019, the accounting for income tax effects of the Act was completed.

The Company’s federal statutory tax rate is 21%. The Company’s effective tax rate for the three and six months ended December 28, 2019 was lower than the statutory rate primarily due to earnings of foreign subsidiaries, generated by the Company's international operations managed in Ireland, that were taxed at lower rates, partially offset by U.S. tax expense related to Global Intangible Low-Taxed Income (“GILTI”).

The Company’s effective tax rate for the three months ended December 29, 2018 was higher than the statutory rate primarily due to a $22.1 million discrete charge for the Transition Tax, U.S. tax expense related to GILTI, and a $4.9 million discrete charge for interest accruals for unrecognized tax benefits, partially offset by earnings of foreign subsidiaries, generated by the Company's international operations managed in Ireland, that were taxed at lower rates.

The Company’s effective tax rate for the six months ended December 29, 2018 was lower than the statutory rate primarily due to earnings of foreign subsidiaries, generated by the Company's international operations managed in Ireland, that were taxed at lower rates, partially offset by a $22.1 million discrete charge for the Transition Tax, U.S. tax expense related to GILTI, and a $9.4 million discrete charge for interest accruals for unrecognized tax benefits.

The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. It is reasonably possible that the balance of gross unrecognized tax benefits, including accrued interest and penalties, could decrease up to $56.0 million within the next twelve months due to the completion of federal tax audits, including any administrative appeals. The $56.0 million primarily relates to matters involving federal taxation of cross-border transactions.

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The Company’s federal corporate income tax returns are audited on a recurring basis by the Internal Revenue Service (“IRS”). In fiscal year 2017, the IRS commenced an audit of the Company’s federal corporate income tax returns for fiscal years 2012 through 2014, which is ongoing. In fiscal year 2020 the IRS commenced an audit of the Company's federal corporate income tax returns for fiscal years 2015 through 2017, which is ongoing.

NOTE 11: COMMITMENTS AND CONTINGENCIES

Legal Proceedings

The Company is party or subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business, including proceedings and claims that relate to intellectual property matters. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that the outcome of any of these matters, individually or in the aggregate, will result in losses that are materially in excess of amounts already recognized or reserved, if any.

Indemnification

The Company indemnifies certain customers, distributors, suppliers and subcontractors for attorney fees, damages and costs awarded against such parties in certain circumstances in which the Company's products are alleged to infringe third party intellectual property rights, including patents, registered trademarks or copyrights. The terms of the Company's indemnification obligations are generally perpetual from the effective date of the agreement. In certain cases, there are limits on and exceptions to the Company's potential liability for indemnification relating to intellectual property infringement claims.

Pursuant to the Company's charter documents and separate written indemnification agreements, the Company has certain indemnification obligations to its current officers, employees and directors, as well as certain former officers and directors.

NOTE 12: COMMON STOCK REPURCHASES

On October 30, 2018, the Board of Directors of the Company authorized the repurchase of up to $1.5 billion of the Company’s common stock. The stock repurchase authorization does not have an expiration date and the pace of repurchase activity will depend on factors such as current stock price, levels of cash generated from operations, cash requirements, and other factors. All prior repurchase authorizations by the Company’s Board of Directors for the repurchase of common stock were cancelled and superseded by this repurchase authorization.

During the six months ended December 28, 2019, the Company repurchased approximately 3.5 million shares of its common stock for $201.5 million. As of December 28, 2019, the Company had remaining authorization of $0.9 billion for future share repurchases. The number of shares to be repurchased and the timing of such repurchases will be based on several factors, including the price of the Company’s common stock and general market and business conditions.

NOTE 13: LEASES

The Company's lease obligations consist of operating leases for domestic and international office facilities, data centers, and equipment. These leases expire at various dates through fiscal year 2031. For the three and six months ended December 28, 2019, the Company recorded operating lease expense of $2.9 million and $5.9 million, respectively.

Leases are included in the following Condensed Consolidated Balance Sheet lines:

	December 28, 2019
	(in thousands)
Other assets	$	56,170
Accrued expenses	$	10,028
Other liabilities	$	50,784

Future minimum lease payments under non-cancelable operating leases as of December 28, 2019 are as follows:

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	Operating Lease Obligations
Fiscal Year	(in thousands)
Remainder of 2020	$	5,969
2021	11,818
2022	10,847
2023	9,599
2024	8,202
Thereafter	21,904
Total	68,339
Less imputed interest	7,657
Total	$	60,682

Other information related to leases as of December 28, 2019 are as follows:

	Six Months Ended
	December 28, 2019
Supplemental cash flow information	(in thousands)
Operating cash flows used for operating leases	$	5,911
Weighted-average remaining lease term - operating leases, in years	7
Weighted-average discount rate - operating leases	3.45		%

Since most of our operating leases do not provide an implicit interest rate, the Company used a portfolio approach to determine a collateralized incremental borrowing rate based on the information available at the commencement date to determine the lease liability.

NOTE 14: GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or more often if events or changes in circumstances indicate that the carrying amount may not be recoverable.

There were no changes to goodwill during the six months ended December 28, 2019.

No indicators or instances of impairment were identified during the six months and fiscal year ended December 28, 2019 and June 29, 2019, respectively.

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Intangible Assets

Intangible assets consisted of the following:

	December 28, 2019						June 29, 2019
	Original Cost		Accumulated Amortization		Net		Original Cost		Accumulated Amortization		Net
	(in thousands)
Intellectual property	$	490,136	$	451,780	$	38,356	$	487,346	$	445,558	$	41,788
Customer relationships	116,505		107,244		9,261		116,505		105,901		10,604
Trade name	9,974		9,082		892		9,974		8,914		1,060
Patents	2,500		2,500		—		2,500		2,500		—
Total amortizable purchased intangible assets	619,115		570,606		48,509		616,325		562,873		53,452
In-process research & development (IPR&D)	—		—		—		2,790		—		2,790
Total purchased intangible assets	$	619,115	$	570,606	$	48,509	$	619,115	$	562,873	$	56,242

The following table presents the amortization expense of intangible assets and its presentation in the Condensed Consolidated Statements of Income:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
	(in thousands)
Cost of goods sold	$	3,111	$	6,868	$	6,221	$	13,783
Intangible asset amortization	756		756		1,512		1,529
Total intangible asset amortization expenses	$	3,867	$	7,624	$	7,733	$	15,312

The following table represents the estimated future amortization expense of intangible assets as of December 28, 2019:

	Amount
Fiscal Year	(in thousands)
Remainder of 2020	$	7,733
2021	13,767
2022	8,088
2023	7,604
2024	4,628
Thereafter	6,689
Total intangible assets	$	48,509

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Maxim Integrated Products, Inc. (“Maxim Integrated” or the “Company” and also referred to as “we,” “our” or “us”) disclaims any duty to and undertakes no obligation to update any forward-looking statement, whether as a result of new information relating to existing conditions, future events or otherwise or to release publicly the results of any future revisions it may make to forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by federal securities laws. Readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this Quarterly Report on Form 10-Q. Readers should carefully review future reports and documents that the Company files with or furnishes to the SEC from time to time, such as its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, and any Current Reports on Form 8-K.

Overview of Business

Maxim Integrated Products, Inc. (“Maxim Integrated” or the “Company” and also referred to as “we,” “our” or “us”) designs, develops, manufactures and markets a broad range of linear and mixed-signal integrated circuits, commonly referred to as analog circuits, for a large number of customers in diverse geographical locations. The analog market is fragmented and characterized by many diverse applications, a great number of product variations and, with respect to many circuit types, relatively long product life cycles. We are a global company with a wafer manufacturing facility in the U.S., test facilities in the Philippines and Thailand, and sales and circuit design offices around the world. We also utilize third parties for manufacturing and assembly of our products.

The Linear and Mixed-Signal Analog Integrated Circuit Market

All electronic signals generally fall into one of two categories, linear or digital. Linear (or analog) signals represent real world phenomena, such as temperature, pressure, sound or speed, and are continuously variable over a wide range of values. Digital signals represent the “ones” and “zeros” of binary arithmetic and are either on or off.

Three general classes of semiconductor products arise from this distinction between linear and digital signals:

• digital devices, such as memories and microprocessors that operate primarily in the digital domain;

• linear devices, such as amplifiers, references, analog multiplexers and switches that operate primarily in the analog domain; and

• mixed-signal devices such as data converter devices that combine linear and digital functions on the same integrated circuit and interface between the analog and digital domains.

Our strategy has been to target both the linear and mixed-signal markets, often collectively referred to as the analog market. However, some of our products are exclusively or principally digital. While our focus continues to be on the linear and mixed-signal market, our capabilities in the digital domain enable development of new mixed-signal and other products with highly sophisticated digital characteristics.

At the beginning of fiscal year 2020, we combined our Computing Major End-Market category with our Communications and Data Center Major End-Market category. Our former Computing Major End-Market category focused on Desktop Computers, Notebook Computers, and Peripherals and Other Computer markets.

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Our linear and mixed-signal products now serve four major end-markets: (i) Automotive, (ii) Communications and Data Center, (iii) Consumer and (iv) Industrial. These major end-markets and their corresponding markets are noted in the table below:

MAJOR END-MARKET	MARKET
AUTOMOTIVE	Infotainment
	Powertrain
	Body Electronics
	Safety and Security
COMMUNICATIONS & DATA CENTER	Base Stations
	Data Center
	Data Storage
	Desktop Computers
	Network & Datacom
	Notebook Computers
	Peripherals & Other Computer
	Server
	Telecom
	Other Communications
CONSUMER	Smartphones
	Digital Cameras
	Handheld Computers
	Home Entertainment & Appliances
	Wearables
	Other Consumer
INDUSTRIAL	Automatic Test Equipment
	Control & Automation
	Electrical Instrumentation
	Financial Terminals
	Medical
	Security
	USB Extension
	Other Industrial

CRITICAL ACCOUNTING POLICIES

The methods, estimates, and judgments we use in applying our most critical accounting policies have a significant impact on the results we report in our financial statements. The Securities and Exchange Commission (“SEC”) has defined the most critical accounting policies as the ones that are most important to the presentation of our financial condition and results of operations, and that require us to make our most difficult and subjective accounting judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, our most critical accounting policies include revenue recognition, which impacts the recording of net revenues; valuation of inventories, which impacts costs of goods sold and gross margins; the assessment of recoverability of long-lived assets, which impacts impairment of long-lived assets; assessment of recoverability of intangible assets and goodwill, which impacts impairment of goodwill and intangible assets; accounting for income taxes, which impacts the income tax provision; and assessment of litigation and contingencies, which impacts charges recorded in cost of goods

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sold, selling, general and administrative expenses and income taxes. These policies and the estimates and judgments involved are discussed further in the Management’s Discussion and Analysis of Financial Condition in our Annual Report on Form 10-K for the fiscal year ended June 29, 2019. We have other significant accounting policies that either do not generally require estimates and judgments that are as difficult or subjective, or it is less likely that such accounting policies would have a material impact on our reported results of operations for a given period.

Except for the accounting policies and estimates outlined under Part I, Item 1. Financial Statements - Note 2, there have been no material changes during the six months ended December 28, 2019 to the items that we disclosed as our critical accounting policies and estimates in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended June 29, 2019.

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RESULTS OF OPERATIONS

The following table sets forth certain Condensed Consolidated Statements of Income data expressed as a percentage of net revenues for the periods indicated:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Net revenues	100.0	%	100.0	%	100.0	%	100.0	%
Cost of goods sold	34.6	%	35.3	%	35.1	%	33.9	%
Gross margin	65.4	%	64.7	%	64.9	%	66.1	%
Operating expenses:
Research and development	20.3	%	19.1	%	20.4	%	18.3	%
Selling, general and administrative	13.8	%	13.5	%	14.0	%	13.1	%
Intangible asset amortization	0.1	%	0.1	%	0.1	%	0.1	%
Impairment of long-lived assets	—	%	0.1	%	—	%	0.1	%
Severance and restructuring expenses	0.5	%	0.2	%	0.4	%	0.2	%
Other operating expenses (income), net	—	%	—	%	—	%	—	%
Total operating expenses	34.7	%	33.1	%	34.9	%	31.8	%
Operating income	30.7	%	31.6	%	30.0	%	34.3	%
Interest and other income (expense), net	—	%	0.1	%	0.2	%	—	%
Income before provision for income taxes	30.7	%	31.7	%	30.2	%	34.3	%
Income tax provision (benefit)	4.2	%	8.8	%	3.8	%	7.2	%
Net income	26.5	%	22.9	%	26.4	%	27.1	%

The following table shows stock-based compensation included in the components of the Condensed Consolidated Statements of Income reported above as a percentage of net revenues for the periods indicated:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Cost of goods sold	0.5	%	0.4	%	0.5	%	0.4	%
Research and development	2.1	%	1.7	%	2.1	%	1.6	%
Selling, general and administrative	1.8	%	1.6	%	1.9	%	1.5	%
	4.4	%	3.7	%	4.5	%	3.5	%

Net Revenues

Net revenues were $551.1 million and $576.9 million for the three months ended December 28, 2019 and December 29, 2018, respectively. Revenue from consumer products was down by 22% primarily due to lower demand in smartphone products. Revenue from communications and data center products was up by 12% driven by an increased demand for base station, data center, and data storage products. These results include net revenues for the three months ended December 29, 2018 that align with our revised end-market categories.

Net revenues were $1.1 billion and $1.2 billion for the six months ended December 28, 2019 and December 29, 2018, respectively. Revenue from consumer products was down by 21% primarily due to lower demand in smartphone products. Revenue from industrial products was down by 11% primarily due to lower demand in control and automation products. These results include net revenues for the six months ended December 29, 2018 that align with our revised end-market categories.

During each of the three months ended December 28, 2019 and December 29, 2018, approximately 89% of net revenues, were derived from customers outside of the United States. While less than 1.0% of our sales are denominated in currencies other than U.S. dollars, we enter into foreign currency forward contracts to mitigate our risks on firm commitments and net monetary assets

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denominated in foreign currencies. The impact of changes in foreign exchange rates on our revenue and results of operations for the three and six months ended December 28, 2019 and December 29, 2018 was immaterial.

Gross Margin

Our gross margin percentages were 65.4% and 64.7% for the three months ended December 28, 2019 and December 29, 2018, respectively. Our gross margin increased by 0.7 percentage points, primarily due to lower inventory reserve requirements.

Our gross margin percentages were 64.9% and 66.1% for the six months ended December 28, 2019 and December 29, 2018, respectively. Our gross margin decreased by 1.2 percentage points, primarily due to lower revenues.

Research and Development

Research and development expenses were $111.9 million and $110.3 million for the three months ended December 28, 2019 and December 29, 2018, respectively, which represented 20.3% and 19.1% of net revenues for each respective period. The $1.6 million increase was due to higher salaries and related personnel costs.

Research and development expenses were $220.9 million and $223.0 million for the six months ended December 28, 2019 and December 29, 2018, respectively, which represented 20.4% and 18.3% of net revenues for each respective period. The $2.1 million decrease was due to lower salaries and travel expenses.

Selling, General and Administrative

Selling, general and administrative expenses were $76.1 million and $77.9 million for the three months ended December 28, 2019 and December 29, 2018, respectively, which represented 13.8% and 13.5% of net revenues for each respective period. The $1.8 million decrease was due to lower travel and marketing expenses.

Selling, general and administrative expenses were $152.2 million and $159.4 million for the six months ended December 28, 2019 and December 29, 2018, respectively, which represented 14.0% and 13.1% of net revenues for each respective period. The $7.2 million decrease was due to lower salaries and related personnel costs, and lower depreciation and travel expenses.

Provision for Income Taxes

In the three and six months ended December 28, 2019, the Company recorded an income tax provision of $23.0 million and $40.7 million, respectively, compared to $50.8 million and $87.0 million for the three and six months ended December 29, 2018, respectively. The Company’s effective tax rate for the three and six months ended December 28, 2019 was 13.6% and 12.4%, respectively, compared to 27.8% and 20.9% for the three and six months ended December 29, 2018, respectively.

On December 22, 2017, legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Act”), was enacted. The Act included a one-time tax on accumulated unremitted earnings of the Company's foreign subsidiaries (“Transition Tax”). SEC Staff Accounting Bulletin No. 118 allowed the use of provisional amounts (reasonable estimates) if accounting for the income tax effects of the Act was not completed. Provisional amounts must be adjusted within a one-year measurement period from the enactment date of the Act. In the second quarter of fiscal year 2018, the Company recorded a discrete $236.9 million provisional Transition Tax charge. During the measurement period, the Company gathered additional information and analyzed available guidance to more precisely compute the amount of the Transition Tax. In the second quarter of fiscal year 2019 the Company completed this work and recorded a discrete $22.1 million measurement period adjustment for the Transition Tax, which increased the Company’s effective tax rate for the three and six months ended December 29, 2018 by 12.1% and 5.3%, respectively. As of the end of the second quarter of fiscal year 2019, the accounting for income tax effects of the Act was completed.

The Company’s federal statutory tax rate is 21%. The Company’s effective tax rate for the three and six months ended December 28, 2019 was lower than the statutory rate primarily due to earnings of foreign subsidiaries, generated by the Company's international operations managed in Ireland, that were taxed at lower rates, partially offset by U.S. tax expense related to Global Intangible Low-Taxed Income (“GILTI”).

The Company’s effective tax rate for the three months ended December 29, 2018 was higher than the statutory rate primarily due to a $22.1 million discrete charge for the Transition Tax, U.S. tax expense related to GILTI, and a $4.9 million discrete charge for interest accruals for unrecognized tax benefits, partially offset by earnings of foreign subsidiaries, generated by the Company's international operations managed in Ireland, that were taxed at lower rates.

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The Company’s effective tax rate for the six months ended December 29, 2018 was lower than the statutory rate primarily due to earnings of foreign subsidiaries, generated by the Company's international operations managed in Ireland, that were taxed at lower rates, partially offset by a $22.1 million discrete charge for the Transition Tax, U.S. tax expense related to GILTI, and a $9.4 million discrete charge for interest accruals for unrecognized tax benefits.

BACKLOG

As of December 28, 2019 and June 29, 2019, our current quarter backlog was approximately $455.6 million and $391.3 million respectively. In backlog, we include orders with customer request dates within the next three months. As is customary in the semiconductor industry, these orders may be canceled in most cases without penalty to customers. Accordingly, we believe that our backlog is not a reliable measure of future revenues. All backlog numbers have been adjusted for estimated future distribution ship and debit pricing adjustments.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Financial Condition

Cash flows were as follows:

	Six Months Ended
	December 28, 2019			December 29, 2018
	(in thousands)
Net cash provided by (used in) operating activities	$	378,735		$	431,435
Net cash provided by (used in) investing activities	43,869			496,454
Net cash provided by (used in) financing activities	(459,752		)	(1,064,633		)
Net increase (decrease) in cash and cash equivalents	$	(37,148	)	$	(136,744	)

Operating activities

Cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities.

Cash provided by operating activities decreased by $52.7 million for the six months ended December 28, 2019 compared with the six months ended December 29, 2018 due mainly to lower net income and changes in working capital. Changes in working capital were driven by changes in income tax payable, partially offset by changes in accrued expenses and inventories.

Investing activities

Investing cash flows consist primarily of net investment purchases and maturities, and capital expenditures.

Cash provided by investing activities decreased by $452.6 million for the six months ended December 28, 2019 compared with the six months ended December 29, 2018. The decrease was due to lower proceeds from maturity of available-for-sale securities offset by lower purchases of available-for-sale securities.

Financing activities

Financing cash flows consist primarily of debt issuance, repurchases of common stock, and payment of dividends to stockholders.

Cash used in financing activities decreased by $604.9 million for the six months ended December 28, 2019 compared with the six months ended December 29, 2018. The decrease was due to a $500.0 million debt repayment we made in November 2018 and lower repurchases of common stock.

Liquidity and Capital Resources

Our primary source of liquidity is our cash flows from operating activities resulting from net income and management of working capital.

As of December 28, 2019, our available funds consisted of $1.8 billion in cash, cash equivalents and short-term investments.

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On October 30, 2018, we were authorized to repurchase up to $1.5 billion of the Company's common stock. During the three and six months ended December 28, 2019, we repurchased an aggregate of $108.0 million and $201.5 million of the Company's common stock, respectively.

During the three and six months ended December 28, 2019, we paid cash dividends of $0.48 and $0.96 per common share totaling $129.8 million and $260.0 million, respectively.

We anticipate that the available funds and cash generated from operations will be sufficient to meet cash and working capital requirements, including the anticipated level of capital expenditures, common stock repurchases, debt repayments and dividend payments for at least the next twelve months.

Off-Balance-Sheet Arrangements

As of December 28, 2019, we did not have any material off-balance-sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company’s market risk has not changed materially from the interest rate and foreign currency risks disclosed in Item 7A of the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2019.

The impact of inflation and changing prices on the Company’s net revenues and on operating income during the three and six months ended December 28, 2019 and December 29, 2018 was not material.

ITEM 4: CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer (“CEO”) and our chief financial officer (“CFO”), evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”) as of December 28, 2019. Our management, including the CEO and the CFO, has concluded that the Company’s disclosure controls and procedures were effective as of December 28, 2019. The purpose of these controls and procedures is to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules, and that such information is accumulated and communicated to our management, including our CEO and our CFO, to allow timely decisions regarding required disclosures.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended December 28, 2019 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

Inherent Limitations on the Effectiveness of Internal Controls

A system of internal control over financial reporting is intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements in accordance with GAAP, and no control system, no matter how well designed and operated, can provide absolute assurance. The design of any control system is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Because of its inherent limitations, internal control over financial reporting may not prevent or detect financial statement errors and misstatements. Also, projection of any evaluation of effectiveness to future periods is subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

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PART II. OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

The information set forth above under Part I, Item 1, Note 11 “Commitments and Contingencies” to the Condensed Consolidated Financial Statements is incorporated herein by reference.

ITEM 1A: RISK FACTORS

A description of risks associated with our business, financial condition and results of our operations is set forth in Item 1A - Risk Factors of our Annual Report on Form 10-K for the fiscal year ended June 29, 2019, which is incorporated herein by reference.

ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On October 30, 2018, the Board of Directors of the Company authorized the repurchase of up to $1.5 billion of the Company’s common stock. This stock repurchase authorization does not have an expiration date and the pace of repurchase activity will depend on factors such as current stock price, levels of cash generated from operations, cash requirements, and other factors. The Company’s prior repurchase authorization was cancelled and superseded by this new repurchase authorization.

The following table summarizes the activity related to stock repurchases for the three months ended December 28, 2019:

	Issuer Repurchases of Equity Securities
	(in thousands, except per share amounts)
	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
Sep 29, 2019 - Oct 26, 2019	515	$	57.45	515	$	991,836
Oct 27, 2019 - Nov 23, 2019	520	58.29		520	961,551
Nov 24, 2019 - Dec 28, 2019	827	58.14		827	913,473
Total for the quarter	1,862	$	57.99	1,862	$	913,473

In the three months ended December 28, 2019, the Company repurchased approximately 1.9 million shares of its common stock for approximately $108.0 million. As of December 28, 2019, the Company had remaining authorization of $0.9 billion for future share repurchases. The number of shares to be repurchased and the timing of such repurchases will be based on several factors, including the price of the Company’s common stock and general market and business conditions.

ITEM 3: DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4: MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5: OTHER INFORMATION

None.

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ITEM 6: EXHIBITS

(a) Exhibits

31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act (1)
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act (1)
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 (1)
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 (1)
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. (1)
101.SCH	Inline XBRL Taxonomy Extension Schema Document (1)
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document (1)
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document (1)
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document (1)
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document (1)
104	Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. (1)

(1) Filed or furnished herewith.

In accordance with Rule 406T of Regulation S-T, the XBRL-related information in Exhibit 101 to this Quarterly Report on Form 10-Q is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act, is deemed not filed for purposes of Section 18 of the Exchange Act, and otherwise is not subject to liability under these sections.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

January 29, 2020	MAXIM INTEGRATED PRODUCTS, INC.
	By:/s/ Brian C. White
	Brian C. White
	Senior Vice President, Chief Financial Officer

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Tunç Doluca, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Maxim Integrated Products, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	January 29, 2020	/s/ Tunç Doluca
		Tunç Doluca
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Brian C. White, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Maxim Integrated Products, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	January 29, 2020	/s/ Brian C. White
		Brian C. White
		Senior Vice President, Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATE OF CHIEF EXECUTIVE OFFICER

In connection with the periodic report of Maxim Integrated Products, Inc. (the "Company") on Form 10-Q for the period ended December 28, 2019 as filed with the Securities and Exchange Commission (the "Report"), I, Tunç Doluca, Chief Executive Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

1. the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

This Certification has not been, and shall not be deemed, "filed" with the Securities and Exchange Commission.

Date: January 29, 2020

By:	/s/ Tunç Doluca
	Tunç Doluca President and Chief Executive Officer

This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended or the Securities Exchange Act of 1934, as amended.

EX-32.2

Exhibit 32.2

CERTIFICATE OF CHIEF FINANCIAL OFFICER

In connection with the periodic report of Maxim Integrated Products, Inc. (the "Company") on Form 10-Q for the period ended December 28, 2019 as filed with the Securities and Exchange Commission (the "Report"), I, Brian C. White, Chief Financial Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

1. the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

This Certification has not been, and shall not be deemed, "filed" with the Securities and Exchange Commission.

Date: January 29, 2020

By:	/s/ Brian C. White
	Brian C. White Senior Vice President, Chief Financial Officer

This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended or the Securities Exchange Act of 1934, as amended.

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Commitments and Contingencies (Details) $ in Thousands	Jun. 29, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Business Combination, Contingent Consideration, Liability	$ 9,052

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Goodwill and Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018	Jun. 29, 2019
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Finite-Lived Intangible Assets, Gross	$ 619,115		$ 619,115		$ 616,325
Accumulated Amortization	570,606		570,606		562,873
Net	48,509		48,509		53,452
Intangible Assets, Gross	619,115		619,115		619,115
Total purchased intangible assets	48,509		48,509		56,242
Cost, Amortization	3,111	$ 6,868	6,221	$ 13,783
Intangible asset amortization	756	756	1,512	1,529
Intangible Asset Amortization Expense	3,867	$ 7,624	7,733	$ 15,312
Future amortization expense [Abstract]
Remaining three months of 2017	7,733		7,733
2019	13,767		13,767
2020	8,088		8,088
2021	7,604		7,604
2022	4,628		4,628
Thereafter	6,689		6,689
Net	48,509		48,509		53,452
Intellectual Property [Member]
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Finite-Lived Intangible Assets, Gross	490,136		490,136		487,346
Accumulated Amortization	451,780		451,780		445,558
Net	38,356		38,356		41,788
Future amortization expense [Abstract]
Net	38,356		38,356		41,788
Customer relationships [Member]
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Finite-Lived Intangible Assets, Gross	116,505		116,505		116,505
Accumulated Amortization	107,244		107,244		105,901
Net	9,261		9,261		10,604
Future amortization expense [Abstract]
Net	9,261		9,261		10,604
Tradename [Member]
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Finite-Lived Intangible Assets, Gross	9,974		9,974		9,974
Accumulated Amortization	9,082		9,082		8,914
Net	892		892		1,060
Future amortization expense [Abstract]
Net	892		892		1,060
Patents [Member]
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Finite-Lived Intangible Assets, Gross	2,500		2,500		2,500
Accumulated Amortization	2,500		2,500		2,500
Net	0		0		0
Future amortization expense [Abstract]
Net	0		0		0
In Process Research and Development [Member]
Intangible Assets, Net (Excluding Goodwill) [Abstract]
IPR&D	$ 0		$ 0		$ 2,790

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Fair Value Measurements Private Company Investments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018	Jun. 29, 2019
Investments, Debt and Equity Securities [Abstract]
Cost Method Investments	$ 20.9		$ 20.9		$ 20.7
Accumulated gains or losses on private company investments	3.0		3.0		$ 3.6
Unrealized Gain (Loss) on Securities	$ 0.6	$ (0.8)	$ 0.6	$ (0.7)

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Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Jun. 29, 2019
New Accounting Pronouncement, Early Adoption [Line Items]
Accounts Receivable, Net, Current	$ 348,342		$ 360,016
Cash flow from operating activities operating activities	378,735	$ 431,435
Price adjustment and other revenue reserves	$ 105,237		$ 100,490

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Commitments and Contingencies

6 Months Ended

Dec. 28, 2019

Product Warranties Disclosures [Abstract]

Commitments and Contingencies [Text Block]

COMMITMENTS AND CONTINGENCIES

Legal Proceedings

The Company is party or subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business, including proceedings and claims that relate to intellectual property matters. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that the outcome of any of these matters, individually or in the aggregate, will result in losses that are materially in excess of amounts already recognized or reserved, if any.

Indemnification

The Company indemnifies certain customers, distributors, suppliers and subcontractors for attorney fees, damages and costs awarded against such parties in certain circumstances in which the Company's products are alleged to infringe third party intellectual property rights, including patents, registered trademarks or copyrights. The terms of the Company's indemnification obligations are generally perpetual from the effective date of the agreement. In certain cases, there are limits on and exceptions to the Company's potential liability for indemnification relating to intellectual property infringement claims.

Pursuant to the Company's charter documents and separate written indemnification agreements, the Company has certain indemnification obligations to its current officers, employees and directors, as well as certain former officers and directors.

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Balance Sheet Components

6 Months Ended

Dec. 28, 2019

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components [Text Block]

BALANCE SHEET COMPONENTS

Inventories consist of:

	December 28, 2019		June 29, 2019
	(in thousands)
Raw materials	$	13,222	$	16,121
Work-in-process	142,551		160,273
Finished goods	68,185		70,118
Total inventories	$	223,958	$	246,512

Property, plant and equipment, net, consist of:

	December 28, 2019			June 29, 2019
	(in thousands)
Land	$	17,720		$	17,720
Buildings and building improvements	306,052			265,191
Machinery, equipment and software	1,338,349			1,367,606
Total	1,662,121			1,650,517
Less: accumulated depreciation	(1,090,762		)	(1,072,795		)
Total property, plant and equipment, net	$	571,359		$	577,722

Accrued salary and related expenses consist of:

	December 28, 2019		June 29, 2019
	(in thousands)
Accrued vacation	$	31,223	$	30,251
Accrued bonus	35,182		71,466
Accrued salaries	8,886		8,329
Accrued fringe benefits	6,397		4,807
Other	13,051		3,851
Total accrued salary and related expenses	$	94,739	$	118,704

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Earnings Per Share

6 Months Ended

Dec. 28, 2019

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

EARNINGS PER SHARE

Basic earnings per share are computed using the weighted average number of shares of common stock outstanding during the period. For purposes of computing basic earnings per share, the weighted average number of outstanding shares of common stock excludes unvested RSUs and other awards as well as MSUs. Diluted earnings per share incorporates the incremental shares issuable upon the assumed exercise of stock options, assumed release of unvested RSUs and other awards as well as MSUs, and assumed issuance of common stock under the 2008 ESPP using the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
	(in thousands, except per share data)
Numerator for basic earnings per share and diluted earnings per share
Net income	$	146,050	$	131,892	$	286,206	$	329,315
Denominator for basic earnings per share	270,330		276,252		270,859		277,144
Effect of dilutive securities:
Stock options, ESPP, RSUs, and MSUs	2,939		3,756		3,025		4,270
Denominator for diluted earnings per share	273,269		280,008		273,884		281,414
Earnings per share
Basic	$	0.54	$	0.48	$	1.06	$	1.19
Diluted	$	0.53	$	0.47	$	1.04	$	1.17

For the three and six months ended December 28, 2019 and December 29, 2018 no stock awards were determined to be anti-dilutive.

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Balance Sheet Components (Tables)

6 Months Ended

Dec. 28, 2019

Balance Sheet Related Disclosures [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consist of:

	December 28, 2019		June 29, 2019
	(in thousands)
Raw materials	$	13,222	$	16,121
Work-in-process	142,551		160,273
Finished goods	68,185		70,118
Total inventories	$	223,958	$	246,512

Property, Plant and Equipment [Table Text Block]

Property, plant and equipment, net, consist of:

	December 28, 2019			June 29, 2019
	(in thousands)
Land	$	17,720		$	17,720
Buildings and building improvements	306,052			265,191
Machinery, equipment and software	1,338,349			1,367,606
Total	1,662,121			1,650,517
Less: accumulated depreciation	(1,090,762		)	(1,072,795		)
Total property, plant and equipment, net	$	571,359		$	577,722

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

Accrued salary and related expenses consist of:

	December 28, 2019		June 29, 2019
	(in thousands)
Accrued vacation	$	31,223	$	30,251
Accrued bonus	35,182		71,466
Accrued salaries	8,886		8,329
Accrued fringe benefits	6,397		4,807
Other	13,051		3,851
Total accrued salary and related expenses	$	94,739	$	118,704

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Earnings Per Share (Tables)

6 Months Ended

Dec. 28, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
	(in thousands, except per share data)
Numerator for basic earnings per share and diluted earnings per share
Net income	$	146,050	$	131,892	$	286,206	$	329,315
Denominator for basic earnings per share	270,330		276,252		270,859		277,144
Effect of dilutive securities:
Stock options, ESPP, RSUs, and MSUs	2,939		3,756		3,025		4,270
Denominator for diluted earnings per share	273,269		280,008		273,884		281,414
Earnings per share
Basic	$	0.54	$	0.48	$	1.06	$	1.19
Diluted	$	0.53	$	0.47	$	1.04	$	1.17

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Leases (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 29, 2018	Dec. 29, 2018	Dec. 28, 2019	Jun. 29, 2019	Jun. 24, 2017
Weighted Average Discount Rate [Line Items]
Operating Lease, Payments		$ 5,911
Operating Lease, Weighted Average Remaining Lease Term	7 years	7 years
Lessee, Operating Lease, Discount Rate	3.45%	3.45%
Operating Leases, Rent Expense	$ 2,900	$ 5,900
FixedRateNoteDueJune2027at3Point450Percent[Member] [Member]
Weighted Average Discount Rate [Line Items]
Leases, Interest Rate, Stated Percentage			3.45%	3.45%	3.45%

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Condensed Consolidated Statement of Shareholders' Equity Dividends (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Statement of Stockholders' Equity [Abstract]
Dividends	$ 0.48	$ 0.46	$ 0.96	$ 0.92

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Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands	Dec. 28, 2019	Jun. 29, 2019
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 723	$ 148

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Stock-Based Compensation Stock based compensation, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Document Period End Date			Dec. 28, 2019
Allocated Share-based Compensation Expense	$ 24,066	$ 21,656	$ 48,738	$ 42,153
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	2,193	2,304	5,081	4,268
Allocated Share-based Compensation Expense, Net of Tax	$ 21,873	$ 19,352	$ 43,657	$ 37,885

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Stock-Based Compensation, Stock Option Plans (Details)	6 Months Ended
	Dec. 28, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Document Period End Date	Dec. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Unrecognized compensation costs related to unvested units | $	$ 175,200,000
Weighted average period of recognition for unrecognized compensation costs (in years)	2 years 9 months 18 days
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, beginning | shares	777,413,000
Options Granted | shares	0
Options Exercised | shares	(302,708,000)
Options Cancelled | shares	(16,575,000)
Options outstanding, ending | shares	458,130,000
Options exercisable, number of shares | shares	458,130,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Options outstanding, weighted average exercise price, beginning (per share)	$ 28.30
Options granted, weighted average exercise price (per share)	0
Options exercised, weighted average exercise price (per share)	27,820
Options cancelled, weighted average exercise price (per share)	27,300
Options outstanding, weighted average exercise price, ending (per share)	28,490
Options exercisable, weighted average exercise price (per share)	28,490
Options vested and expected to vest, weighted average exercise price (per share)	$ 28,490
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options outstanding, weighted average remaining contractual term (in years)	1 year
Options exercisable, weighted average remaining contractual term (in years)	1 year
Options vested and expected to vest, weighted average remaining contractual term (in years)	1 year
Options outstanding, aggregate intrinsic value | $	$ 15,139,460
Options exercisable, aggregate intrinsic value | $	15,139,460
Options vested and expected to vest, aggregate intrinsic value | $	15,139,460
Unrecognized compensation costs related to unvested units | $	$ 0

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Goodwill and Intangible Assets

6 Months Ended

Dec. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [Text Block]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or more often if events or changes in circumstances indicate that the carrying amount may not be recoverable.

There were no changes to goodwill during the six months ended December 28, 2019.

No indicators or instances of impairment were identified during the six months and fiscal year ended December 28, 2019 and June 29, 2019, respectively.

Intangible Assets

Intangible assets consisted of the following:

	December 28, 2019						June 29, 2019
	Original Cost		Accumulated Amortization		Net		Original Cost		Accumulated Amortization		Net
	(in thousands)
Intellectual property	$	490,136	$	451,780	$	38,356	$	487,346	$	445,558	$	41,788
Customer relationships	116,505		107,244		9,261		116,505		105,901		10,604
Trade name	9,974		9,082		892		9,974		8,914		1,060
Patents	2,500		2,500		—		2,500		2,500		—
Total amortizable purchased intangible assets	619,115		570,606		48,509		616,325		562,873		53,452
In-process research & development (IPR&D)	—		—		—		2,790		—		2,790
Total purchased intangible assets	$	619,115	$	570,606	$	48,509	$	619,115	$	562,873	$	56,242

The following table presents the amortization expense of intangible assets and its presentation in the Condensed Consolidated Statements of Income:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
	(in thousands)
Cost of goods sold	$	3,111	$	6,868	$	6,221	$	13,783
Intangible asset amortization	756		756		1,512		1,529
Total intangible asset amortization expenses	$	3,867	$	7,624	$	7,733	$	15,312

The following table represents the estimated future amortization expense of intangible assets as of December 28, 2019:

	Amount
Fiscal Year	(in thousands)
Remainder of 2020	$	7,733
2021	13,767
2022	8,088
2023	7,604
2024	4,628
Thereafter	6,689
Total intangible assets	$	48,509

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Stock-Based Compensation (Tables)

6 Months Ended

Dec. 28, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

The following tables show total stock-based compensation expense by type of award, and the resulting tax effect, included in the Condensed Consolidated Statements of Income for the three and six months ended December 28, 2019 and December 29, 2018, respectively:

	Three Months Ended								Three Months Ended
	December 28, 2019								December 29, 2018
	Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total		Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total
	(in thousands)
Cost of goods sold	$	5	$	2,269	$	699	$	2,973	$	9	$	1,884	$	495	$	2,388
Research and development	4		9,918		1,514		11,436		11		8,693		1,135		9,839
Selling, general and administrative	55		8,753		849		9,657		58		8,773		598		9,429
Pre-tax stock-based compensation expense	$	64	$	20,940	$	3,062	$	24,066	$	78	$	19,350	$	2,228	$	21,656
Less: income tax effect							2,193								2,304
Net stock-based compensation expense							$	21,873							$	19,352

	Six Months Ended								Six Months Ended
	December 28, 2019								December 29, 2018
	Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total		Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total
	(in thousands)
Cost of goods sold	$	14	$	4,549	$	1,368	$	5,931	$	19	$	3,646	$	1,002	$	4,667
Research and development	8		19,403		2,909		22,320		22		17,384		2,290		19,696
Selling, general and administrative	122		18,706		1,659		20,487		114		16,417		1,259		17,790
Pre-tax stock-based compensation expense	$	144	$	42,658	$	5,936	$	48,738	$	155	$	37,447	$	4,551	$	42,153
Less: income tax effect							5,081								4,268
Net stock-based compensation expense							$	43,657							$	37,885

Share-based Compensation Arrangements by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block]

The following table summarizes outstanding, exercisable and vested and expected to vest stock options as of December 28, 2019 and related activity for the six months ended December 28, 2019:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value(1)
Balance at June 29, 2019	777,413		$	28.30
Options Granted	—		—
Options Exercised	(302,708	)	27.82
Options Cancelled	(16,575	)	27.30
Balance at December 28, 2019	458,130		$	28.49	1.0	$	15,139,460
Exercisable, December 28, 2019	458,130		$	28.49	1.0	$	15,139,460
Vested and expected to vest, December 28, 2019	458,130		$	28.49	1.0	$	15,139,460

(1) Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company’s common stock on December 27, 2019, the last business day preceding the fiscal quarter-end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of December 28, 2019.

Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest [Table Text Block]

The following table summarizes the outstanding and expected to vest RSUs and other awards as of December 28, 2019 and related activity during the six months ended December 28, 2019:

	Number of Shares		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value(1)
Balance at June 29, 2019	4,918,306
Restricted stock units and other awards granted	1,550,765
Restricted stock units and other awards released	(795,156	)
Restricted stock units and other awards cancelled	(269,743	)
Balance at December 28, 2019	5,404,172		2.8	$	332,572,745
Outstanding and expected to vest, December 28, 2019	4,513,314		2.8	$	277,749,319

(1) Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company’s common stock on December 27, 2019, the last business day preceding the fiscal quarter-end, multiplied by the number of RSUs outstanding or expected to vest as of December 28, 2019.

Share-based Compensation Arrangements by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block]

The following table summarizes the number of MSUs outstanding and expected to vest as of December 28, 2019 and their activity during the six months ended December 28, 2019:

	Number of Shares		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value(1)
Balance at June 29, 2019	1,048,532
Market stock units granted	259,984
Market stock units released	(183,974	)
Market stock units cancelled	(140,290	)
Balance at December 28, 2019	984,252		2.8	$	60,570,868
Outstanding and expected to vest, December 28, 2019	350,417		2.7	$	21,564,655

(1) Aggregate intrinsic value for MSUs represents the closing price per share of the Company’s common stock on December 27, 2019, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of December 28, 2019.

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]

The fair value of 2008 ESPP rights granted to employees has been estimated at the date of grant using the Black-Scholes option valuation model using the following assumptions for the offering periods outstanding:

	Three Months Ended		Six Months Ended
	December 28, 2019	December 29, 2018	December 28, 2019	December 29, 2018
Expected holding period (in years)	0.5 years	0.5 years	0.5 years	0.5 years
Risk-free interest rate	1.6% - 2.7%	1.6% - 2.6%	1.6% - 2.7%	1.6% - 2.6%
Expected stock price volatility	28.4% - 31.3%	19.6% - 32.7%	28.4% - 31.3%	19.6% - 32.7%
Dividend yield	3.1% - 3.4%	2.1% - 3.1%	3.1% - 3.4%	2.1% - 3.1%

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Restructuring Activities Change in Estimate (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Change in Accounting Estimate [Line Items]
Operating Income (Loss)	$ 169,056	$ 182,204	$ 325,060	$ 416,386
Net income	$ 146,050	$ 131,892	$ 286,206	$ 329,315
Basic	$ 0.54	$ 0.48	$ 1.06	$ 1.19
Diluted	$ 0.53	$ 0.47	$ 1.04	$ 1.17

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Numerator for basic earnings per share and diluted earnings per share
Net income	$ 146,050	$ 131,892	$ 286,206	$ 329,315
Denominator for basic earnings per share	270,330,000	276,252,000	270,859,000	277,144,000
Effect of dilutive securities
Stock options, ESPP and RSUs	2,939,000	3,756,000	3,025,000	4,270,000
Denominator for diluted earnings per share	273,269,000	280,008,000	273,884,000	281,414,000
Earnings per share, Basic (per share)	$ 0.54	$ 0.48	$ 1.06	$ 1.19
Earnings per share, Diluted (per share)	$ 0.53	$ 0.47	$ 1.04	$ 1.17
Antidilutive securities excluded from computation of earnings per share	0	0	0	0

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Stock-Based Compensation, Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accrued Employee Stock Purchase Program Withholding	$ 7,600,000		$ 17,600,000
Outstanding and expected to vest RSUs [Roll Forward]
Unrecognized compensation costs related to unvested units	$ 175,200,000		$ 175,200,000
Weighted average period of recognition for unrecognized compensation costs (in years)			2 years 9 months 18 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value (per share)	$ 56.21	$ 50.90	$ 48.30	$ 54.71
Outstanding and expected to vest RSUs [Roll Forward]
Outstanding, beginning			4,918,306
Granted			1,550,765
Released			(795,156)
Cancelled			(269,743)
Outstanding, ending	5,404,172		5,404,172
Expected to vest, number of shares	4,513,314		4,513,314
Outstanding, weighted average remaining contractual term (in years)			2 years 9 months 18 days
Restricted stock units vested and expected to vest, weighted average remaining contractual term 1			2 years 9 months 18 days
Outstanding, aggregate intrinsic value	$ 332,572,745		$ 332,572,745
Restricted stock units expected to vest, aggregate intrinsic value	$ 277,749,319		$ 277,749,319
Restricted Stock [Member]
Outstanding and expected to vest RSUs [Roll Forward]
Outstanding, ending	5,400		5,400

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Condensed Consolidated Statement of Shareholders' Equity Statement - USD ($) shares in Thousands, $ / shares in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]
Shares, Outstanding		278,664
Accumulated Other Comprehensive Income (Loss), Net of Tax at Dec. 29, 2018	$ (11,336,000)				$ (11,336,000)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	329,315,000			$ 329,315,000
Other Comprehensive Income (Loss), Net of Tax	3,649,000
Shares of common stock repurchased		(5,822)
Value of common stock repurchased	(320,056,000)		$ 63,744,000	256,312,000
Adjustment to Retained Earnings ASU 2016-01	2,487,000			2,487,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		578
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	(13,444,000)		(13,444,000)
Stock Issued During Period, Shares, Other		522
Stock Issued During Period, Value, Stock Options Exercised	13,843,000		13,843,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	42,185,000		42,185,000
Adjustments to Additional Paid in Capital, Other	3,471,000		3,471,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans		384
Stock Issued During Period, Value, Employee Stock Purchase Plan	(17,689,000)		(17,689,000)
Dividends	0.92
Dividends, Common Stock, Cash	(254,665,000)	$ 0		(254,665,000)
Accumulated Other Comprehensive Income (Loss), Net of Tax at Jun. 29, 2019	(11,354,000)
Stockholders' Equity, Other	$ 1,845,276,000	272,000		1,856,358,000	(11,354,000)
Common Stock, Shares, Outstanding	274,326
Common Stock, Par or Stated Value Per Share		$ 279,000
Additional Paid in Capital	$ 0
Retained Earnings (Accumulated Deficit)				1,766,471,000
Common Stock, No Par Value	$ 279
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	$ 1,755,414,000
Shares, Outstanding		271,852
Stockholders' Equity, Other	1,781,286,000	$ 271,000		1,793,012,000	(11,997,000)
Accumulated Other Comprehensive Income (Loss), Net of Tax at Dec. 28, 2019	(11,289,000)				(11,289,000)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	286,206,000			286,206,000
Other Comprehensive Income (Loss), Net of Tax	65,000
Shares of common stock repurchased		(3,484)
Value of common stock repurchased	(201,509,000)	$ 2,000	58,556,000	142,951,000
Cumulative Effect of New Accounting Principle in Period of Adoption	(2,053,000)			(2,053,000)
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		657
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	(17,566,000)		(17,566,000)
Stock Issued During Period, Shares, Other		316
Stock Issued During Period, Value, Stock Options Exercised	8,820,000		8,820,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	48,767,000		48,767,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans		402
Stock Issued During Period, Value, Employee Stock Purchase Plan	(18,535,000)		(18,535,000)
Dividends	0.96
Dividends, Common Stock, Cash	(260,032,000)			(260,032,000)
Shares, Outstanding		270,883
Accumulated Other Comprehensive Income (Loss), Net of Tax at Dec. 28, 2019	(11,289,000)				$ (11,289,000)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	146,050,000			146,050,000
Other Comprehensive Income (Loss), Net of Tax	708,000
Shares of common stock repurchased		(1,862)
Value of common stock repurchased	(107,957,000)	$ 1,000	36,321,000	71,635,000
Cumulative Effect of New Accounting Principle in Period of Adoption	(89,000)			(89,000)
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		270
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	(7,623,000)		(7,623,000)
Stock Issued During Period, Shares, Other		50
Stock Issued During Period, Value, Stock Options Exercised	1,338,000		1,338,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	24,071,000		24,071,000
Adjustments to Additional Paid in Capital, Other			3,471,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans		402
Stock Issued During Period, Value, Employee Stock Purchase Plan	(18,535,000)		$ (18,535,000)
Dividends	0.48
Dividends, Common Stock, Cash	$ (129,810,000)			(129,810,000)
Shares, Outstanding		277,430
Common Stock, Shares, Outstanding	269,743
Common Stock, Par or Stated Value Per Share		$ 270,000
Additional Paid in Capital	$ 0
Retained Earnings (Accumulated Deficit)				$ 1,737,528,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	$ 1,726,509,000

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	6 Months Ended
	Dec. 28, 2019	Jun. 29, 2019
Document Period End Date	Dec. 28, 2019
Finite-Lived Intangible Assets, Gross	$ 619,115	$ 616,325
Current assets:
Cash and cash equivalents	1,720,194	1,757,342
Short-term Investments	63,006	140,990
Total cash, cash equivalents and short-term investments	1,783,200	1,898,332
Allowance for Doubtful Accounts Receivable, Current	723	148
Accounts receivable, net	348,342	360,016
Inventories	223,958	246,512
Other assets current	23,797	34,640
Total current assets	2,379,297	2,539,500
Property, plant and equipment, net	571,359	577,722
Intangible assets, net	48,509	56,242
Goodwill	532,251	532,251
Other assets noncurrent	95,413	38,267
TOTAL ASSETS	3,626,829	3,743,982
Current liabilities:
Accounts payable	89,449	84,335
Price adjustment and other revenue reserves	105,237	100,490
Income taxes payable	38,307	33,765
Accrued salary and related expenses	94,739	118,704
Accrued expenses	32,739	33,873
Total current liabilities	360,471	371,167
Long term debt	993,303	992,584
Income taxes payable	433,743	469,418
Other liabilities	112,803	65,537
Total liabilities	1,900,320	1,898,706
Commitments and contingencies (Note 11)
Stockholders' equity:
Common stock and capital in excess of par value	270	272
Retained earnings	1,737,528	1,856,358
Accumulated Other Comprehensive Income (Loss), Net of Tax	(11,289)	(11,354)
Total stockholders' equity	1,726,509	1,845,276
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	3,626,829	3,743,982
Intellectual Property [Member]
Finite-Lived Intangible Assets, Gross	$ 490,136	$ 487,346

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Income Taxes Income Tax Disclosure (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 22,989	$ 50,784	$ 40,666	$ 86,997
Effective Income Tax Rate Reconciliation, Percent	13.60%	27.80%	12.40%	20.90%
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount				$ 236,900
Tax Adjustments, Settlements, and Unusual Provisions		$ 22,100
Deferred Tax Assets, State Taxes		$ 4,900		$ 9,400
Effective Income Tax Reconciliation, Transition Tax		12.10%		5.30%
Unrecognized Tax Benefits, Period Increase (Decrease)			$ 56,000

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Goodwill and Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Jun. 29, 2019
Goodwill [Line Items]
Goodwill	$ 532,251	$ 532,251

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Financial Instruments, Short-term Investments (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 28, 2019	Jun. 29, 2019
Debt Securities, Available-for-sale [Line Items]
Document Period End Date	Dec. 28, 2019
Debt Securities, Available-for-sale [Abstract]
Estimated Fair Value		$ 140,990
Debt Securities, Available-for-sale, Amortized Cost	$ 62,929	141,031
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	86	68
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	9	109
Debt Securities, Available-for-sale	63,006
Certificates of deposit
Debt Securities, Available-for-sale [Abstract]
Debt Securities, Available-for-sale, Amortized Cost	0	1,000
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	0	0
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	0
Debt Securities, Available-for-sale	0	1,000
Corporate debt securities
Debt Securities, Available-for-sale [Abstract]
Debt Securities, Available-for-sale, Amortized Cost	62,929	140,031
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	86	68
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	9	109
Debt Securities, Available-for-sale	$ 63,006	$ 139,990

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Recently Issued Accounting Pronouncements Adjustments for New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Jun. 30, 2019
Accounting Changes and Error Corrections [Abstract]
Operating Lease, Right-of-Use Asset	$ 56,170	$ 61,000
Operating Lease, Liability	$ 60,682	65,200
Deferred Rent Credit, Noncurrent		$ 4,200

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Recently Issued Accounting Pronouncements

6 Months Ended

Dec. 28, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Issued Accounting Pronouncements [Text Block]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Recently Issued Accounting Pronouncements

(i) New Accounting Updates Recently Adopted

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). Topic 842 states that lessees will recognize a lease liability for the commitment to make lease payments and a right-of-use asset for the underlying asset, for the duration of the lease. The FASB also issued ASU 2018-10 and ASU 2018-11 which provide improvements to ASU 2016-02 and an additional transition method option, respectively. This transition method allows a Company to apply the new lease accounting standard on adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted ASU 2016-02 in the first quarter of fiscal year 2020.

The Company adopted the new standard using the modified retrospective method and electing the optional transition method practical expedient. Under the optional transition method, the Company recognized a cumulative-effect adjustment to the consolidated balance sheet and did not adjust comparative prior period information.

The Company elected multiple practical expedients permitted:

• the hindsight practical expedient, in which the Company elected to use hindsight up until the effective date in determining the lease term and assessing impairment of right-of-use assets;

• the practical expedient package that allows the Company to carry forward its determination of whether a lease exists, the classification of a lease, and whether initial direct lease costs exist for purposes of transition to the new standard; and

• the practical expedient to combine lease and non-lease components.

The Company also elected an accounting policy in which it will not apply the recognition requirements to leases with an initial term of 12 months or less.

Effective June 30, 2019, the first day of adoption, the Company recognized $61.0 million of operating lease right-of-use assets and $65.2 million of operating lease liabilities on its Consolidated Balance Sheet. The difference of $4.2 million was primarily due to deferred rent, partially offset by prepaid rent for leases that existed as of the date of adoption, which decreased the opening balance of lease right-of-use (ROU) assets.

Updated Lease Accounting Policy

The Company determines if an arrangement is, or contains, a lease at inception. ROU assets are recorded as other assets, short-term lease obligations are recorded as accrued expenses and long-term lease obligations are recorded as other liabilities on the Company's Consolidated Balance Sheet. The Company’s classes of assets include real estate leases, equipment leases, and vehicle leases.

Lease ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When discount rates implicit in leases cannot be readily determined, the Company uses its incremental borrowing rate based on information available at commencement date in determining the present value of future payments.

Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. Lease expense is recognized on a straight-line basis over the lease term. The Company elected to combine lease and non-lease components for all asset classes. In addition, the Company does not apply the recognition requirements to leases with lease terms of 12 months or less.

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Stock-Based Compensation

6 Months Ended

Dec. 28, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation [Text Block]

STOCK-BASED COMPENSATION

At December 28, 2019, the Company had one stock incentive plan, the Company's 1996 Stock Incentive Plan (the “1996 Plan”) and one employee stock purchase plan, the 2008 Employee Stock Purchase Plan (the “2008 ESPP”). The 1996 Plan was adopted by the Board of Directors to provide the grant of incentive stock options, non-statutory stock options, restricted stock units (“RSUs”), and market stock units (“MSUs”) to employees, directors, and consultants.

Pursuant to the 1996 Plan, the exercise price for incentive stock options and non-statutory stock options is determined to be the fair market value of the underlying shares on the date of grant. Options typically vest ratably over a four-year period measured from the date of grant. Options generally expire no later than seven years after the date of grant, subject to earlier termination upon an optionee's cessation of employment or service.

RSUs granted to employees typically vest ratably over a four-year period and are converted into shares of the Company's common stock upon vesting, subject to the employee's continued service to the Company over that period. RSUs granted after August 2017 will continue to vest post-employment at the Company for certain individuals satisfying specific eligibility requirements.

MSUs granted to employees typically vest over a four-year cliff period and are converted into shares of the Company's common stock upon vesting, subject to the employee's continued service to the Company over that period. The number of shares that are released at the end of the performance period can range from zero to a maximum cap depending on the Company's performance. MSUs granted after August 2017 will continue to vest post-employment at the Company for certain individuals satisfying specific eligibility requirements.

The following tables show total stock-based compensation expense by type of award, and the resulting tax effect, included in the Condensed Consolidated Statements of Income for the three and six months ended December 28, 2019 and December 29, 2018, respectively:

	Three Months Ended								Three Months Ended
	December 28, 2019								December 29, 2018
	Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total		Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total
	(in thousands)
Cost of goods sold	$	5	$	2,269	$	699	$	2,973	$	9	$	1,884	$	495	$	2,388
Research and development	4		9,918		1,514		11,436		11		8,693		1,135		9,839
Selling, general and administrative	55		8,753		849		9,657		58		8,773		598		9,429
Pre-tax stock-based compensation expense	$	64	$	20,940	$	3,062	$	24,066	$	78	$	19,350	$	2,228	$	21,656
Less: income tax effect							2,193								2,304
Net stock-based compensation expense							$	21,873							$	19,352

	Six Months Ended								Six Months Ended
	December 28, 2019								December 29, 2018
	Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total		Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total
	(in thousands)
Cost of goods sold	$	14	$	4,549	$	1,368	$	5,931	$	19	$	3,646	$	1,002	$	4,667
Research and development	8		19,403		2,909		22,320		22		17,384		2,290		19,696
Selling, general and administrative	122		18,706		1,659		20,487		114		16,417		1,259		17,790
Pre-tax stock-based compensation expense	$	144	$	42,658	$	5,936	$	48,738	$	155	$	37,447	$	4,551	$	42,153
Less: income tax effect							5,081								4,268
Net stock-based compensation expense							$	43,657							$	37,885

The expense included in the Condensed Consolidated Statements of Income for RSUs include expenses related to MSUs of $2.4 million and $2.9 million for the three months ended December 28, 2019 and December 29, 2018, respectively, and $6.8 million and $5.3 million for the six months ended December 28, 2019 and December 29, 2018, respectively.

Stock Options

The fair value of options granted to employees under the 1996 Plan is estimated on the date of grant using the Black-Scholes option valuation model.

There were no stock options granted in the three and six months ended December 28, 2019 and December 29, 2018.

The following table summarizes outstanding, exercisable and vested and expected to vest stock options as of December 28, 2019 and related activity for the six months ended December 28, 2019:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value(1)
Balance at June 29, 2019	777,413		$	28.30
Options Granted	—		—
Options Exercised	(302,708	)	27.82
Options Cancelled	(16,575	)	27.30
Balance at December 28, 2019	458,130		$	28.49	1.0	$	15,139,460
Exercisable, December 28, 2019	458,130		$	28.49	1.0	$	15,139,460
Vested and expected to vest, December 28, 2019	458,130		$	28.49	1.0	$	15,139,460

(1) Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company’s common stock on December 27, 2019, the last business day preceding the fiscal quarter-end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of December 28, 2019.

As of December 28, 2019, there was no unrecognized stock compensation from unvested stock options.

Restricted Stock Units and Other Awards

The fair value of RSUs and other awards under the Company’s 1996 Plan is estimated using the value of the Company’s common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Company’s common stock prior to vesting. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis.

The weighted-average fair value of RSUs and other awards granted was $56.21 and $50.90 per share for the three months ended December 28, 2019 and December 29, 2018, respectively, and $48.30 and $54.71 per share for the six months ended December 28, 2019 and December 29, 2018, respectively.

The following table summarizes the outstanding and expected to vest RSUs and other awards as of December 28, 2019 and related activity during the six months ended December 28, 2019:

	Number of Shares		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value(1)
Balance at June 29, 2019	4,918,306
Restricted stock units and other awards granted	1,550,765
Restricted stock units and other awards released	(795,156	)
Restricted stock units and other awards cancelled	(269,743	)
Balance at December 28, 2019	5,404,172		2.8	$	332,572,745
Outstanding and expected to vest, December 28, 2019	4,513,314		2.8	$	277,749,319

(1) Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company’s common stock on December 27, 2019, the last business day preceding the fiscal quarter-end, multiplied by the number of RSUs outstanding or expected to vest as of December 28, 2019.

The Company withheld shares totaling $7.6 million and $17.6 million in value as a result of employee withholding taxes based on the value of RSUs on their vesting date for the three and six months ended December 28, 2019. Total payments for employees’ tax obligations to taxing authorities are reflected as financing activities within the Condensed Consolidated Statements of Cash Flows.

As of December 28, 2019, there was $175.2 million of unrecognized compensation expense related to 5.4 million unvested RSUs and other awards, which is expected to be recognized over a weighted average period of approximately 2.8 years.

Market Stock Units (MSUs)

The Company grants MSUs to senior members of management in lieu of granting stock options. For MSUs granted prior to September 2017, the performance metrics of this program are based on relative performance of the Company’s stock price as compared to the Semiconductor Exchange Traded Fund index SPDR S&P (the “XSD”). For MSUs granted in September 2017 and after, the performance metrics for this program are based on the total shareholder return ("TSR") of the Company relative to the TSR of the other companies included in the XSD. The fair value of MSUs is estimated using a Monte Carlo simulation model on the date of grant. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. Compensation expense is recognized based on the initial valuation and is not subsequently adjusted as a result of the Company’s performance relative to that of the XSD or the TSR of the companies included in the XSD, as applicable. Vesting for MSUs is contingent upon both service and market conditions and has a four-year vesting cliff period. MSUs granted after August 2017 vest based upon annual performance and are subject to continued service through the end of the four-year period but will continue to vest post-employment at the Company for certain individuals satisfying specific eligibility requirements.

The weighted-average fair value of MSUs granted was $54.70 and $75.48 per share for the six months ended December 28, 2019 and December 29, 2018, respectively.

The following table summarizes the number of MSUs outstanding and expected to vest as of December 28, 2019 and their activity during the six months ended December 28, 2019:

	Number of Shares		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value(1)
Balance at June 29, 2019	1,048,532
Market stock units granted	259,984
Market stock units released	(183,974	)
Market stock units cancelled	(140,290	)
Balance at December 28, 2019	984,252		2.8	$	60,570,868
Outstanding and expected to vest, December 28, 2019	350,417		2.7	$	21,564,655

(1) Aggregate intrinsic value for MSUs represents the closing price per share of the Company’s common stock on December 27, 2019, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of December 28, 2019.

As of December 28, 2019, there was $32.4 million of unrecognized compensation expense related to 1.0 million unvested MSUs, which is expected to be recognized over a weighted average period of approximately 2.8 years.

Employee Stock Purchase Plan

Employees are granted rights to acquire common stock under the 2008 ESPP.

The fair value of 2008 ESPP rights granted to employees has been estimated at the date of grant using the Black-Scholes option valuation model using the following assumptions for the offering periods outstanding:

	Three Months Ended		Six Months Ended
	December 28, 2019	December 29, 2018	December 28, 2019	December 29, 2018
Expected holding period (in years)	0.5 years	0.5 years	0.5 years	0.5 years
Risk-free interest rate	1.6% - 2.7%	1.6% - 2.6%	1.6% - 2.7%	1.6% - 2.6%
Expected stock price volatility	28.4% - 31.3%	19.6% - 32.7%	28.4% - 31.3%	19.6% - 32.7%
Dividend yield	3.1% - 3.4%	2.1% - 3.1%	3.1% - 3.4%	2.1% - 3.1%

As of December 28, 2019 and December 29, 2018, there was $10.1 million and $8.6 million, respectively, of unrecognized compensation expense related to the 2008 ESPP.

XML

Label	Element	Value
Stock Issued During Period, Value, Employee Stock Purchase Plan	us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan	$ 17,689,000
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	126,808,000
Adjustment to Retained Earnings ASU 2016-01	mxim_AdjustmenttoRetainedEarningsASU201601	(5,916,000)
Stock Issued During Period, Value, Stock Options Exercised	us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised	21,702,000
Adjustments to Additional Paid in Capital, Other	us-gaap_AdjustmentsToAdditionalPaidInCapitalOther	3,471,000
Stockholders' Equity, Other	us-gaap_StockholdersEquityOther	1,912,323,000
Stockholders' Equity, Other	us-gaap_StockholdersEquityOther	1,930,940,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	131,892,000
Interest Paid, Excluding Capitalized Interest, Operating Activities	us-gaap_InterestPaidNet	$ 17,063,000
Stockholders' Equity, Other Shares	us-gaap_StockholdersEquityOtherShares	281,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	us-gaap_StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures	$ 7,235,000
AOCI Attributable to Parent [Member]
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	11,336,000
Stockholders' Equity, Other	us-gaap_StockholdersEquityOther	(12,720,000)
Stockholders' Equity, Other	us-gaap_StockholdersEquityOther	(14,985,000)
Additional Paid-in Capital [Member]
Stock Issued During Period, Value, Employee Stock Purchase Plan	us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan	17,689,000
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	0
Stock Issued During Period, Value, Stock Options Exercised	us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised	7,235,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	21,702,000
Treasury Stock, Value, Acquired, Par Value Method	us-gaap_TreasuryStockValueAcquiredParValueMethod	(44,181,000)
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	us-gaap_StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures	(5,916,000)
Common Stock [Member]
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	$ 274,326,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans	us-gaap_StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans	384,000
Treasury Stock, Shares, Acquired	us-gaap_TreasuryStockSharesAcquired	3,960,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures	191,000
Retained Earnings [Member]
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	$ 126,808,000
Stockholders' Equity, Other	us-gaap_StockholdersEquityOther	1,924,764,000
Stockholders' Equity, Other	us-gaap_StockholdersEquityOther	1,945,646,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	131,892,000
Treasury Stock, Value, Acquired, Par Value Method	us-gaap_TreasuryStockValueAcquiredParValueMethod	$ (163,377,000)

XML

Income Taxes

6 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

INCOME TAXES

In the three and six months ended December 28, 2019 the Company recorded an income tax provision of $23.0 million and $40.7 million, respectively, compared to $50.8 million and $87.0 million for the three and six months ended December 29, 2018, respectively. The Company’s effective tax rate for the three and six months ended December 28, 2019 was 13.6% and 12.4%, respectively, compared to 27.8% and 20.9% for the three and six months ended December 29, 2018, respectively.

On December 22, 2017 legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Act”), was enacted. The Act included a one-time tax on accumulated unremitted earnings of the Company's foreign subsidiaries (“Transition Tax”). SEC Staff Accounting Bulletin No. 118 allowed the use of provisional amounts (reasonable estimates) if accounting for the income tax effects of the Act was not completed. Provisional amounts must be adjusted within a one-year measurement period from the enactment date of the Act. In the second quarter of fiscal year 2018, the Company recorded a discrete $236.9 million provisional Transition Tax charge. During the measurement period, the Company gathered additional information and analyzed available guidance to more precisely compute the amount of the Transition Tax. In the second quarter of fiscal year 2019, the Company completed this work and recorded a discrete $22.1 million measurement period adjustment for the Transition Tax, which increased the Company’s effective tax rate for the three and six months ended December 29, 2018 by 12.1% and 5.3%, respectively. As of the end of the second quarter of fiscal year 2019, the accounting for income tax effects of the Act was completed.

The Company’s federal statutory tax rate is 21%. The Company’s effective tax rate for the three and six months ended December 28, 2019 was lower than the statutory rate primarily due to earnings of foreign subsidiaries, generated by the Company's international operations managed in Ireland, that were taxed at lower rates, partially offset by U.S. tax expense related to Global Intangible Low-Taxed Income (“GILTI”).

The Company’s effective tax rate for the three months ended December 29, 2018 was higher than the statutory rate primarily due to a $22.1 million discrete charge for the Transition Tax, U.S. tax expense related to GILTI, and a $4.9 million discrete charge for interest accruals for unrecognized tax benefits, partially offset by earnings of foreign subsidiaries, generated by the Company's international operations managed in Ireland, that were taxed at lower rates.

The Company’s effective tax rate for the six months ended December 29, 2018 was lower than the statutory rate primarily due to earnings of foreign subsidiaries, generated by the Company's international operations managed in Ireland, that were taxed at lower rates, partially offset by a $22.1 million discrete charge for the Transition Tax, U.S. tax expense related to GILTI, and a $9.4 million discrete charge for interest accruals for unrecognized tax benefits.

The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. It is reasonably possible that the balance of gross unrecognized tax benefits, including accrued interest and penalties, could decrease up to $56.0 million within the next twelve months due to the completion of federal tax audits, including any administrative appeals. The $56.0 million primarily relates to matters involving federal taxation of cross-border transactions.

The Company’s federal corporate income tax returns are audited on a recurring basis by the Internal Revenue Service (“IRS”). In fiscal year 2017, the IRS commenced an audit of the Company’s federal corporate income tax returns for fiscal years 2012 through 2014, which is ongoing. In fiscal year 2020 the IRS commenced an audit of the Company's federal corporate income tax returns for fiscal years 2015 through 2017, which is ongoing.

XML

Segment Information (Tables)

6 Months Ended

Dec. 28, 2019

Segment Reporting [Abstract]

Schedule of Revenue from External Customers by Geographical Areas [Table Text Block]

Net revenues from unaffiliated customers by geographic region were as follows:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
	(in thousands)
United States	$	58,909	$	64,845	$	114,707	$	136,974
China	217,099		208,717		414,398		428,015
Rest of Asia	163,563		186,840		333,478		407,221
Europe	98,254		100,662		194,194		212,030
Rest of World	13,245		15,842		27,333		31,161
	$	551,070	$	576,906	$	1,084,110	$	1,215,401

Schedule of Long Lived Assets by Geographical Areas [Table Text Block]

Net long-lived assets by geographic region were as follows:

	December 28, 2019		June 29, 2019
	(in thousands)
United States	$	375,860	$	379,308
Philippines	97,784		102,634
Rest of World	97,715		95,780
	$	571,359	$	577,722

XML

Common Stock Repurchases

6 Months Ended

Dec. 28, 2019

Common Stock Repurchases [Abstract]

Common Stock Repurchases [Text Block]

COMMON STOCK REPURCHASES

On October 30, 2018, the Board of Directors of the Company authorized the repurchase of up to $1.5 billion of the Company’s common stock. The stock repurchase authorization does not have an expiration date and the pace of repurchase activity will depend on factors such as current stock price, levels of cash generated from operations, cash requirements, and other factors. All prior repurchase authorizations by the Company’s Board of Directors for the repurchase of common stock were cancelled and superseded by this repurchase authorization.

During the six months ended December 28, 2019, the Company repurchased approximately 3.5 million shares of its common stock for $201.5 million. As of December 28, 2019, the Company had remaining authorization of $0.9 billion for future share repurchases. The number of shares to be repurchased and the timing of such repurchases will be based on several factors, including the price of the Company’s common stock and general market and business conditions.

XML

Fair Value Measurements (Tables)

6 Months Ended

Dec. 28, 2019

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Assets and liabilities measured at fair value on a recurring basis were as follows:

	December 28, 2019								June 29, 2019
	Fair Value  Measurements Using						Total Balance		Fair Value  Measurements Using						Total Balance
	Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash and cash equivalents
Money market funds	$	175,298	$	—	$	—	$	175,298	$	186,819	$	—	$	—	$	186,819
Short-term investments
Certificates of deposit	—		—		—		—		—		1,000		—		1,000
Corporate debt securities	—		63,006		—		63,006		—		139,990		—		139,990
Other current assets
Foreign currency forward contracts	—		361		—		361		—		651		—		651
Total assets	$	175,298	$	63,367	$	—	$	238,665	$	186,819	$	141,641	$	—	$	328,460
Liabilities
Accrued expenses
Foreign currency forward contracts	$	—	$	186	$	—	$	186	$	—	$	148	$	—	$	148
Contingent consideration	—		—		—		—		—		—		9,052		9,052
Total Liabilities	$	—	$	186	$	—	$	186	$	—	$	148	$	9,052	$	9,200

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Document Period End Date	Dec. 28, 2019
Other Operating Activities, Cash Flow Statement	$ (5,961)	$ (636)
Cash flows from operating activities:
Net income	286,206	329,315
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	48,738	42,153
Depreciation and amortization	48,008	57,994
Deferred taxes	(2,231)	(8,206)
Gain (Loss) on Disposition of Property Plant Equipment	489	2,896
Changes in assets and liabilities:
Accounts receivable	16,421	19,798
Inventories	22,583	3,497
Other assets	(55,820)	(6,587)
Accounts payable	4,844	2,401
Income taxes payable	(31,133)	33,261
Accrued salary and related expenses	(23,965)	(45,783)
Other liabilities	58,634	60
Net cash provided by (used in) operating activities	378,735	431,435
Cash flows from investing activities:
Purchases of property, plant and equipment	(34,301)	(30,913)
Proceeds from sale of property, plant and equipment	171	2
Proceeds from sale of available-for-sale securities	0	27,253
Proceeds from maturity of available-for-sale securities	78,067	718,554
Payment in connection with business acquisition, net of cash acquired	0	(2,949)
Purchases of available-for-sale securities	0	(214,587)
Purchases of private company investments	0	(906)
Other investing activities	(68)	0
Net cash provided by (used in) investing activities	43,869	496,454
Cash flows from financing activities:
Repayment of debt	0	(500,000)
Contingent consideration paid	(8,000)	(8,000)
Payments of Stock Issuance Costs	(17,566)	(13,444)
Proceeds from stock options exercised	8,820	13,843
Issuance of common stock under employee stock purchase program	18,535	17,689
Repurchase of common stock	(201,509)	(320,056)
Payments of Dividends	(260,032)	(254,665)
Net cash provided by (used in) financing activities	(459,752)	(1,064,633)
Net increase (decrease) in cash and cash equivalents	(37,148)	(136,744)
Cash and cash equivalents:
Beginning of period	1,757,342	1,543,484
End of period	1,720,194	1,406,740
Cash paid (refunded), net during the period for income taxes	63,692	60,946
Interest Paid, Excluding Capitalized Interest, Operating Activities		23,313
Noncash investing and financing activities:
Accounts payable related to property, plant, and equipment purchases	$ 12,360	$ 14,660

XML

Stock-Based Compensation, Employee Stock Purchase Plan (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018	Jun. 29, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Document Period End Date			Dec. 28, 2019
Allocated Share-based Compensation Expense	$ 24,066	$ 21,656	$ 48,738	$ 42,153
Risk-free interest rate	1.60%	1.60%	1.60%	1.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	3.10%	2.10%	3.10%	2.10%
Unrecognized compensation costs related to unvested units	$ 175,200		$ 175,200
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 9 months 18 days
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	2,193	$ 2,304	$ 5,081	$ 4,268
Allocated Share-based Compensation Expense, Net of Tax	$ 21,873	$ 19,352	$ 43,657	$ 37,885
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum	2.70%	2.60%	2.70%	2.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum	28.40%	19.60%	28.40%	19.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum	31.30%	32.70%	31.30%	32.70%
Share Based Compensation Arrangement By Share Based Payment Award, Fair Value Assumptions, Expected Dividend Rate, Maximum	3.40%	3.10%	3.40%	3.10%
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 2,400	$ 2,900	$ 6,800	$ 5,300
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	458,130		458,130		777,413
Allocated Share-based Compensation Expense	$ 64	78	$ 144	155
Unrecognized compensation costs related to unvested units	0		0
ESP Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 3,062	$ 2,228	$ 5,936	$ 4,551
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	15 days	15 days	15 days	15 days
Unrecognized compensation costs related to unvested units	$ 10,100	$ 8,600	$ 10,100	$ 8,600
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	20,940	19,350	42,658	37,447
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	2,973	2,388	5,931	4,667
Cost of Sales [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	5	9	14	19
Cost of Sales [Member] | ESP Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	699	495	1,368	1,002
Cost of Sales [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	2,269	1,884	4,549	3,646
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	11,436	9,839	22,320	19,696
Research and Development Expense [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	4	11	8	22
Research and Development Expense [Member] | ESP Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	1,514	1,135	2,909	2,290
Research and Development Expense [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	9,918	8,693	19,403	17,384
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	9,657	9,429	20,487	17,790
General and Administrative Expense [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	55	58	122	114
General and Administrative Expense [Member] | ESP Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	849	598	1,659	1,259
General and Administrative Expense [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 8,753	$ 8,773	$ 18,706	$ 16,417

XML

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Document Period End Date			Dec. 28, 2019
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	$ 24,066	$ 21,656	$ 48,738	$ 42,153
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	2,193	2,304	5,081	4,268
Net stock-based compensation expense	21,873	19,352	43,657	37,885
Cost of Sales [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	2,973	2,388	5,931	4,667
Research and Development Expense [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	11,436	9,839	22,320	19,696
General and Administrative Expense [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	9,657	9,429	20,487	17,790
Stock options [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	64	78	144	155
Stock options [Member] | Cost of Sales [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	5	9	14	19
Stock options [Member] | Research and Development Expense [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	4	11	8	22
Stock options [Member] | General and Administrative Expense [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	55	58	122	114
Restricted Stock Units (RSUs) [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	20,940	19,350	42,658	37,447
Restricted Stock Units (RSUs) [Member] | Cost of Sales [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	2,269	1,884	4,549	3,646
Restricted Stock Units (RSUs) [Member] | Research and Development Expense [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	9,918	8,693	19,403	17,384
Restricted Stock Units (RSUs) [Member] | General and Administrative Expense [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	8,753	8,773	18,706	16,417
ESP Plan [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	3,062	2,228	5,936	4,551
ESP Plan [Member] | Cost of Sales [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	699	495	1,368	1,002
ESP Plan [Member] | Research and Development Expense [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	1,514	1,135	2,909	2,290
ESP Plan [Member] | General and Administrative Expense [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	849	598	1,659	1,259
Market stock units [Member]
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Allocated Share-based Compensation Expense	$ 2,400	$ 2,900	$ 6,800	$ 5,300

XML

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019 USD ($) customers	Dec. 29, 2018 USD ($)	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)	Jun. 29, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments | customers	1
Revenues	$ 551,070	$ 576,906	$ 1,084,110	$ 1,215,401
Long-lived assets	571,359		571,359		$ 577,722
United States [Member]
Segment Reporting Information [Line Items]
Revenues	58,909	64,845	114,707	136,974
Long-lived assets	375,860		375,860		379,308
China [Member]
Segment Reporting Information [Line Items]
Revenues	217,099	208,717	414,398	428,015
Rest of Asia [Member]
Segment Reporting Information [Line Items]
Revenues	163,563	186,840	333,478	407,221
Europe [Member]
Segment Reporting Information [Line Items]
Revenues	98,254	100,662	194,194	212,030
Philippines [Member]
Segment Reporting Information [Line Items]
Long-lived assets	97,784		97,784		102,634
Rest of World [Member]
Segment Reporting Information [Line Items]
Revenues	13,245	$ 15,842	27,333	$ 31,161
Long-lived assets	$ 97,715		$ 97,715		$ 95,780

XML

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Interest Expense	$ 9,300	$ 11,700	$ 18,600	$ 24,600
Interest Expense, Debt	8,900	11,200	17,800	23,600
Allocated Share-based Compensation Expense	24,066	21,656	48,738	42,153
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	2,193	2,304	5,081	4,268
Allocated Share-based Compensation Expense, Net of Tax	21,873	19,352	43,657	37,885
Revenue from Contract with Customer, Excluding Assessed Tax	551,070	576,906	1,084,110	1,215,401
Net revenues	551,070	576,906	1,084,110	1,215,401
Cost of goods sold	190,546	203,858	380,263	412,117
Gross margin	360,524	373,048	703,847	803,284
Operating expenses:
Research and development	111,914	110,303	220,903	223,011
Selling, general and administrative	76,071	77,853	152,186	159,372
Intangible asset amortization	756	756	1,512	1,529
Impairment of long-lived assets	0	753	0	753
Severance and Restructuring Charges	2,728	1,179	4,162	2,173
Other operating expenses (income), net	(1)	0	24	60
Total operating expenses	191,468	190,844	378,787	386,898
Operating income	169,056	182,204	325,060	416,386
Interest and other income (expense), net	(17)	472	1,812	(74)
Income before provision for income taxes	169,039	182,676	326,872	416,312
Income tax provision	22,989	50,784	40,666	86,997
Net income	$ 146,050	$ 131,892	$ 286,206	$ 329,315
Earnings per share:
Basic	$ 0.54	$ 0.48	$ 1.06	$ 1.19
Diluted	$ 0.53	$ 0.47	$ 1.04	$ 1.17
Shares used in the calculation of earnings per share:
Basic	270,330	276,252	270,859	277,144
Diluted	273,269	280,008	273,884	281,414
Employee Stock Option [Member]
Allocated Share-based Compensation Expense	$ 64	$ 78	$ 144	$ 155
Restricted Stock Units (RSUs) [Member]
Allocated Share-based Compensation Expense	20,940	19,350	42,658	37,447
ESP Plan [Member]
Allocated Share-based Compensation Expense	3,062	2,228	5,936	4,551
Cost of Sales [Member]
Allocated Share-based Compensation Expense	2,973	2,388	5,931	4,667
Cost of Sales [Member] | Employee Stock Option [Member]
Allocated Share-based Compensation Expense	5	9	14	19
Cost of Sales [Member] | Restricted Stock Units (RSUs) [Member]
Allocated Share-based Compensation Expense	2,269	1,884	4,549	3,646
Cost of Sales [Member] | ESP Plan [Member]
Allocated Share-based Compensation Expense	699	495	1,368	1,002
Research and Development Expense [Member]
Allocated Share-based Compensation Expense	11,436	9,839	22,320	19,696
Research and Development Expense [Member] | Employee Stock Option [Member]
Allocated Share-based Compensation Expense	4	11	8	22
Research and Development Expense [Member] | Restricted Stock Units (RSUs) [Member]
Allocated Share-based Compensation Expense	9,918	8,693	19,403	17,384
Research and Development Expense [Member] | ESP Plan [Member]
Allocated Share-based Compensation Expense	$ 1,514	$ 1,135	$ 2,909	$ 2,290

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Leases Leases - Schedule of Maturities (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Jun. 30, 2019
Leases - schedule of maturities [Abstract]
Lessee, Operating Lease, Liability, Payments, Due	$ 5,969
Lessee, Operating Lease, Liability, Payments, Due Year Two	11,818
Lessee, Operating Lease, Liability, Payments, Due Year Three	10,847
Lessee, Operating Lease, Liability, Payments, Due Year Four	9,599
Lessee, Operating Lease, Liability, Payments, Due Year Five	8,202
Lessee, Operating Lease, Liability, Payments, Due after Year Five	21,904
Lessee, Operating Lease, Liability, Payments, Due	68,339
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	7,657
Operating Lease, Liability	$ 60,682	$ 65,200

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Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Long Lived Assets Held-for-sale [Line Items]
Impairment of long-lived assets	$ 0	$ 753	$ 0	$ 753
Gain (Loss) on Disposition of Property Plant Equipment			$ (489)	$ (2,896)

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Comprehensive Income Loss Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax			$ (11,354)	$ (14,985)
Other Comprehensive Income (Loss), before Reclassifications, before Tax			(806)	1,654
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			882	2,570
Other Comprehensive Income (Loss), Tax			(11)	(575)
Other comprehensive income (loss), net	$ 708	$ 1,384	65	3,649
Accumulated Other Comprehensive Income (Loss), Net of Tax	(11,289)	(11,336)	(11,289)	(11,336)
Unrealized Holding Gains (Losses) on Intercompany Receivables [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax			(6,280)	(6,280)
Other Comprehensive Income (Loss), before Reclassifications, before Tax			0	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			0	0
Other Comprehensive Income (Loss), Tax			0	0
Other comprehensive income (loss), net			0	0
Accumulated Other Comprehensive Income (Loss), Net of Tax	(6,280)	(6,280)	(6,280)	(6,280)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax			(4,322)	(2,516)
Other Comprehensive Income (Loss), before Reclassifications, before Tax			0	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			238	191
Other Comprehensive Income (Loss), Tax			(42)	(37)
Other comprehensive income (loss), net			196	154
Accumulated Other Comprehensive Income (Loss), Net of Tax	(4,126)	(2,362)	(4,126)	(2,362)
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax			(1,136)	(1,136)
Other Comprehensive Income (Loss), before Reclassifications, before Tax			0	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			0	0
Other Comprehensive Income (Loss), Tax			0	0
Other comprehensive income (loss), net			0	0
Accumulated Other Comprehensive Income (Loss), Net of Tax	(1,136)	(1,136)	(1,136)	(1,136)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax			425	(1,383)
Other Comprehensive Income (Loss), before Reclassifications, before Tax			(941)	(551)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			644	2,379
Other Comprehensive Income (Loss), Tax			48	(310)
Other comprehensive income (loss), net			(249)	1,518
Accumulated Other Comprehensive Income (Loss), Net of Tax	176	135	176	135
Unrealized Holding Gains (losses) on Available-for-sale Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax			(41)	(3,670)
Other Comprehensive Income (Loss), before Reclassifications, before Tax			135	2,205
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			0	0
Other Comprehensive Income (Loss), Tax			(17)	(228)
Other comprehensive income (loss), net			118	1,977
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 77	$ (1,693)	$ 77	$ (1,693)

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Common Stock Repurchases (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018	Oct. 30, 2018
Common Stock Repurchases [Abstract]
Stock Repurchased During Period, Value			$ 201,500
Stock repurchase program, authorized amount					$ 1,500,000
Value of common stock repurchased	$ 107,957	$ 207,558	201,509	$ 320,056
Stock repurchase program, remaining authorized amount	$ 900,000		$ 900,000
Stock Repurchased During Period, Shares			3.5

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Fair Value Measurements

6 Months Ended

Dec. 28, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements [Text Block]

FAIR VALUE MEASUREMENTS

The FASB established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are as follows:

Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities.

The Company’s Level 1 assets consist of money market funds.

Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

The Company’s Level 2 assets and liabilities consist of U.S. Treasury securities, agency securities, corporate debt securities, certificates of deposit, commercial paper and foreign currency forward contracts that are valued using quoted market prices or are determined using a yield curve model based on current market rates.

Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company's Level 3 assets and liabilities consist of acquisition-related contingent consideration liabilities.

Assets and liabilities measured at fair value on a recurring basis were as follows:

	December 28, 2019								June 29, 2019
	Fair Value  Measurements Using						Total Balance		Fair Value  Measurements Using						Total Balance
	Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash and cash equivalents
Money market funds	$	175,298	$	—	$	—	$	175,298	$	186,819	$	—	$	—	$	186,819
Short-term investments
Certificates of deposit	—		—		—		—		—		1,000		—		1,000
Corporate debt securities	—		63,006		—		63,006		—		139,990		—		139,990
Other current assets
Foreign currency forward contracts	—		361		—		361		—		651		—		651
Total assets	$	175,298	$	63,367	$	—	$	238,665	$	186,819	$	141,641	$	—	$	328,460
Liabilities
Accrued expenses
Foreign currency forward contracts	$	—	$	186	$	—	$	186	$	—	$	148	$	—	$	148
Contingent consideration	—		—		—		—		—		—		9,052		9,052
Total Liabilities	$	—	$	186	$	—	$	186	$	—	$	148	$	9,052	$	9,200

During the six months ended December 28, 2019 and the year ended June 29, 2019, there were no transfers in or out of Level 3 from other levels in the fair value hierarchy.

There were no assets or liabilities measured at fair value on a non-recurring basis as of December 28, 2019 and June 29, 2019 other than impairments of long-lived assets.

As of December 28, 2019 and June 29, 2019, the fair value of private company investments amounted to $20.9 million and $20.7 million, respectively. The aggregate amount of unrealized losses recognized from these investments were $3.0 million and $3.6 million, respectively, as of December 28, 2019 and June 29, 2019.

The Company recorded $0.6 million and $(0.8) million of unrealized gains (losses) on private company investments, during the three months ended December 28, 2019 and December 29, 2018, respectively. The Company recorded $0.6 million and $(0.7) million, of unrealized gains (losses) on private company investments during the six months ended December 28, 2019 and December 29, 2018, respectively. Unrealized gains (losses) on private company investments are recorded in Interest and other income (expense), net in the Company's Condensed Consolidated Statements of Income.

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Segment Information

6 Months Ended

Dec. 28, 2019

Segment Reporting [Abstract]

Segment Information [Text Block]

SEGMENT INFORMATION

The Company designs, develops, manufactures and markets a broad range of linear and mixed signal integrated circuits. All of the Company's products are designed through a centralized R&D function, manufactured using centralized manufacturing (internal and external), and sold through a centralized sales force and shared wholesale distributors.

The Company currently has one operating segment and reportable segment. In accordance with ASC No. 280, Segment Reporting (“ASC 280”), the Company considers operating segments to be components of the Company’s business for which separate financial information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance. The Chief Operating Decision Maker for the Company was assessed and determined to be the CEO. The CEO reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating and reportable segment.

Enterprise-wide information is provided in accordance with ASC 280. Geographical revenue information is based on customers’ ship-to location. Long-lived assets consist of property, plant and equipment. Property, plant and equipment information is based on the physical location of the assets at the end of each fiscal year.

Net revenues from unaffiliated customers by geographic region were as follows:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
	(in thousands)
United States	$	58,909	$	64,845	$	114,707	$	136,974
China	217,099		208,717		414,398		428,015
Rest of Asia	163,563		186,840		333,478		407,221
Europe	98,254		100,662		194,194		212,030
Rest of World	13,245		15,842		27,333		31,161
	$	551,070	$	576,906	$	1,084,110	$	1,215,401

Net long-lived assets by geographic region were as follows:

	December 28, 2019		June 29, 2019
	(in thousands)
United States	$	375,860	$	379,308
Philippines	97,784		102,634
Rest of World	97,715		95,780
	$	571,359	$	577,722

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Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018	Jun. 29, 2019	Jun. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of long-lived assets	$ 0	$ 753	$ 0	$ 753
Interest Expense, Debt	8,900	11,200	17,800	23,600
Cash and cash equivalents	1,720,194	$ 1,406,740	1,720,194	$ 1,406,740	$ 1,757,342	$ 1,543,484
Available-for-sale Securities					140,990
Business Combination, Contingent Consideration, Liability					9,052
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	238,665		238,665		328,460
Total Liabilities	186		186		9,200
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	175,298		175,298		186,819
Total Liabilities	0		0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	63,367		63,367		141,641
Total Liabilities	186		186		148
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	0		0		0
Total Liabilities	0		0		9,052
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	175,298		175,298		186,819
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	175,298		175,298		186,819
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents					0
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents					0
Corporate debt securities | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	63,006		63,006		139,990
Corporate debt securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	63,006		63,006		139,990
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency forward contracts	361		361		651
Foreign currency forward contracts	186		186		148
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency forward contracts					0
Foreign currency forward contracts	0		0		0
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency forward contracts	361		361		651
Foreign currency forward contracts	186		186		148
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency forward contracts					0
Foreign currency forward contracts	0		0		0
Accrued Liabilities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability	0		0		9,052
Accrued Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability	0		0
Certificates of deposit | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0		0		1,000
Certificates of deposit | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	$ 0		$ 0		$ 1,000

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Leases (Tables)

6 Months Ended

Dec. 28, 2019

Balance Sheet Items Related to Leases [Abstract]

Balance sheet items related to leases [Table Text Block]

	December 28, 2019
	(in thousands)
Other assets	$	56,170
Accrued expenses	$	10,028
Other liabilities	$	50,784

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

	Operating Lease Obligations
Fiscal Year	(in thousands)
Remainder of 2020	$	5,969
2021	11,818
2022	10,847
2023	9,599
2024	8,202
Thereafter	21,904
Total	68,339
Less imputed interest	7,657
Total	$	60,682

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Financial Instruments, Long-term Debt (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018	Jun. 24, 2017	Jun. 29, 2019	Mar. 30, 2013
Debt Instrument [Line Items]
Document Period End Date			Dec. 28, 2019
Debt, Long-term and Short-term, Combined Amount	$ 1,000,000		$ 1,000,000			$ 1,000,000
Less: Reduction for unamortized discount and debt issuance costs	(6,697)			$ (7,416)
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed					101.00%
Interest expense relating to the Notes	8,900	$ 11,200	17,800	23,600
Estimated fair value of long-term debt	1,030,000		1,030,000
Interest Expense	9,300	$ 11,700	18,600	$ 24,600
Secured Long-term Debt, Noncurrent	993,303		993,303			992,584
Fixed Rate Note Due June 2027 at 3 Point 45 Percent [Member]
Debt Instrument [Line Items]
Long-term debt	$ 500,000		$ 500,000		$ 500,000	500,000
Fixed Rate Note Due November 2018 at 2 Point 50 Percent [Member]
Debt Instrument [Line Items]
Long-term debt						$ 500,000
Stated interest rate of the notes	0.00%		0.00%			2.50%
Fxed Rate Note Due March 2023 at 3 Point 375 Percent [Member]
Debt Instrument [Line Items]
Long-term debt	$ 500,000		$ 500,000			$ 500,000	$ 500,000
Effective interest rate of the Notes							3.50%
proceeds from issuance of long term debt 3						$ 494,500	$ 490,000
FixedRateNoteDueJune2027at3Point450Percent[Member] [Member]
Debt Instrument [Line Items]
Stated interest rate of the notes	3.45%		3.45%		3.45%	3.45%
Fixed Rate Note Due June 2027 at 3 Point 50 Percent [Member] [Domain]
Debt Instrument [Line Items]
Effective interest rate of the Notes					3.50%
Fixed Rate Note Due June 2027 at 3 Point 50 Percent [Member] [Member]
Debt Instrument [Line Items]
Net Proceeds From Issuance of Long Term Debt 5					$ 495,200
Fixed Rate Note Due March 2023 at 3 Point 375 Percent [Member]
Debt Instrument [Line Items]
Stated interest rate of the notes	3.375%		3.375%			3.375%	3.375%

XML

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Income Tax Disclosure [Abstract]
Deferred Tax Assets, State Taxes		$ 4,900		$ 9,400
Unrecognized Tax Benefits, Period Increase (Decrease)			$ 56,000
Income tax provision	$ 22,989	$ 50,784	$ 40,666	$ 86,997
Effective Income Tax Rate Reconciliation, Percent	13.60%	27.80%	12.40%	20.90%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount				$ 236,900

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Acquisitions (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Jun. 29, 2019
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 0	$ 2,949
Business Combination, Contingent Consideration, Liability			$ 9,052
Goodwill	$ 532,251		$ 532,251

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Restructuring Activities (Details) - $ / shares	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Restructuring Cost and Reserve [Line Items]
Earnings per share, Diluted (per share)	$ 0.53	$ 0.47	$ 1.04	$ 1.17

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Financial Instruments

6 Months Ended

Dec. 28, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments [Text Block]

FINANCIAL INSTRUMENTS

Short-term investments

Fair values were as follows:

	December 28, 2019									June 29, 2019
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
	(in thousands)
Available-for-sale investments
Certificates of deposit	$	—	$	—	$	—		$	—	$	1,000	$	—	$	—		$	1,000
Corporate debt securities	62,929		86		(9		)	63,006		140,031		68		(109		)	139,990
Total available-for-sale investments	$	62,929	$	86	$	(9	)	$	63,006	$	141,031	$	68	$	(109	)	$	140,990

In the three and six months ended December 28, 2019 and December 29, 2018, the Company did not recognize any impairment charges on short-term investments. All available-for-sale investments have maturity dates between January 15, 2020 and March 12, 2021.

The Company invests in various financial instruments including U.S. Treasury securities, corporate debt securities, commercial paper, and certificates of deposit which include instruments issued or managed by industrial, financial, and utility institutions and U.S. Treasury securities which include U.S. government Treasury bills and Treasury notes.

Derivative instruments and hedging activities

The Company incurs expenditures denominated in non-U.S. currencies, primarily the Philippine Peso and the Thai Baht associated with the Company's manufacturing activities in the Philippines and Thailand, respectively, and the European Euro, Indian Rupee, Japanese Yen, Taiwan New Dollar, South Korean Won, Chinese Yuan and Canadian Dollar, for sales offices and research and development activities undertaken outside of the U.S.

The Company has established a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effects of certain foreign currency exposures. The Company does not use these foreign currency forward contracts for trading purposes.

Derivatives designated as cash flow hedging instruments

The Company designates certain forward contracts as hedging instruments pursuant to Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”). As of December 28, 2019 and June 29, 2019, the notional amounts of the forward contracts the Company held to purchase international currencies were $41.4 million and $48.5 million, respectively. As of December 28, 2019 and June 29, 2019, the Company did not hold any forward contracts to sell international currencies.

Derivatives not designated as hedging instruments

As of December 28, 2019 and June 29, 2019, the notional amounts of the forward contracts the Company held to purchase international currencies were $50.3 million and $19.6 million, respectively, and the notional amounts of forward contracts the

Company held to sell international currencies were $20.7 million and $21.1 million, respectively. The increase in forward contracts held to purchase international currencies from fiscal year 2019 to fiscal year 2020 was primarily due to the addition of operating lease liabilities, which were recorded on the Company’s Consolidated Balance Sheet upon adoption of the new lease accounting standard, Topic 842. The Company's foreign currency forward contract gains or losses included in the Condensed Consolidated Statements of Income were not material for the three and six months ended December 28, 2019 and December 29, 2018, respectively.

Effect of hedge accounting on the Condensed Consolidated Statements of Income

The following tables summarize the gains (losses) from hedging activities recognized in the Company's Condensed Consolidated Statements of Income:

	Three Months Ended							Three Months Ended
	December 28, 2019							December 29, 2018
	Net Revenue		Cost of Goods Sold		Operating Expenses				Net Revenue		Cost of Goods Sold			Operating Expenses
	(in thousands)
Income and expenses line items in which the effects of cash flow hedges are recorded	$	551,070	$	190,546	$	191,468			$	576,906	$	203,858		$	190,844
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	10	$	(404	)		$	5	$	(82	)	$	(602	)

	Six Months Ended							Six Months Ended
	December 28, 2019							December 29, 2018
	Net Revenue		Cost of Goods Sold		Operating Expenses				Net Revenue		Cost of Goods Sold			Operating Expenses
	(in thousands)
Income and expenses line items in which the effects of cash flow hedges are recorded	$	1,084,110	$	380,263	$	378,787			$	1,215,401	$	412,117		$	386,898
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	130	$	(774	)		$	44	$	(596	)	$	(1,827	)

Outstanding debt obligations

The following table summarizes the Company’s outstanding debt obligations:

	December 28, 2019			June 29, 2019
	(in thousands)
3.45% fixed rate notes due June 2027	$	500,000		$	500,000
3.375% fixed rate notes due March 2023	500,000			500,000
Total outstanding debt	1,000,000			1,000,000
Less: Reduction for unamortized discount and debt issuance costs	(6,697		)	(7,416		)
Total long-term debt	$	993,303		$	992,584

On June 15, 2017, the Company completed a public offering of $500 million aggregate principal amount of the Company's 3.45% senior unsecured and unsubordinated notes due in June 2027 (“2027 Notes”), with an effective interest rate of 3.5%. Interest on the 2027 Notes is payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2017. The net proceeds of this offering were approximately $495.2 million, after issuing at a discount and deducting paid expenses.

On November 21, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Company’s 2.5% coupon senior unsecured and unsubordinated notes due in November 2018 (“2018 Notes”), with an effective interest rate of 2.6%. Interest on the 2018 Notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing on May 15, 2014. The net proceeds of this offering were approximately $494.5 million, after issuing at a discount and deducting paid expenses. In November of 2018, the Company repaid the entire $500 million in principal and any outstanding interest, related to these outstanding notes.

On March 18, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Company’s 3.375% senior unsecured and unsubordinated notes due in March 2023 (“2023 Notes”), with an effective interest rate of 3.5%. Interest on the 2023 Notes is payable semi-annually in arrears on March 15 and September 15 of each year. The net proceeds of this offering were approximately $490.0 million, after issuing at a discount and deducting paid expenses.

The debt indentures that govern the 2027 Notes and the 2023 Notes include covenants that limit the Company's ability to grant liens on its facilities and to enter into sale and leaseback transactions, which could limit the Company's ability to secure additional debt funding in the future. In circumstances involving a change of control of the Company followed by a downgrade of the rating of the 2027 Notes or the 2023 Notes, the Company would be required to make an offer to repurchase the affected notes at a purchase price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest.

The Company accounts for all the notes above based on their amortized cost. The discount and expenses are being amortized to Interest and other income (expense), net in the Condensed Consolidated Statements of Income over the life of the notes. The interest expense is recorded in Interest and other income (expense), net in the Condensed Consolidated Statements of Income. Amortized discount and expenses, as well as interest expense associated with the notes, were $8.9 million and $11.2 million during the three months ended December 28, 2019 and December 29, 2018, respectively. Amortized discount and expenses, as well as interest expense associated with the notes, were $17.8 million and $23.6 million, respectively, during the six months ended December 28, 2019 and December 29, 2018.

The estimated fair value of the Company’s outstanding debt obligations was approximately $1.03 billion as of December 28, 2019. The estimated fair value of the debt is based primarily on observable market inputs and is a Level 2 measurement.

The Company recorded interest expense of $9.3 million and $11.7 million during the three months ended December 28, 2019, and December 29, 2018, respectively. The Company recorded interest expense of $18.6 million and $24.6 million during the six months ended December 28, 2019, and December 29, 2018, respectively.

Other Financial Instruments

For the balance of the Company’s financial instruments, cash equivalents, accounts receivable, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to their short maturities.

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Comprehensive Income Loss

6 Months Ended

Dec. 28, 2019

Statement of Comprehensive Income [Abstract]

Comprehensive Income [Text Block]

COMPREHENSIVE INCOME (LOSS)

The changes in accumulated other comprehensive income (loss) by component and related tax effects in the six months ended December 28, 2019 and December 29, 2018 were as follows:

(in thousands)	Unrealized Gains and (Losses) on Intercompany Receivables			Unrealized Gains and (Losses) on Post-Retirement Benefits			Cumulative Translation Adjustment			Unrealized Gains and (Losses) on Cash Flow Hedges			Unrealized Gains and (Losses) on Available-For-Sale Securities			Total
June 29, 2019	$	(6,280	)	$	(4,322	)	$	(1,136	)	$	425		$	(41	)	$	(11,354	)
Other comprehensive income (loss) before reclassifications	—			—			—			(941		)	135			(806		)
Amounts reclassified out of accumulated other comprehensive (income) loss	—			238			—			644			—			882
Tax effects	—			(42		)	—			48			(17		)	(11		)
Other comprehensive income (loss), net	—			196			—			(249		)	118			65
December 28, 2019	$	(6,280	)	$	(4,126	)	$	(1,136	)	$	176		$	77		$	(11,289	)

(in thousands)	Unrealized Gains and (Losses) on Intercompany Receivables			Unrealized Gains and (Losses) on Post-Retirement Benefits			Cumulative Translation Adjustment			Unrealized Gains and (Losses) on Cash Flow Hedges			Unrealized Gains and (Losses) on Available-For-Sale Securities			Total
June 30, 2018	$	(6,280	)	$	(2,516	)	$	(1,136	)	$	(1,383	)	$	(3,670	)	$	(14,985	)
Other comprehensive income (loss) before reclassifications	—			—			—			(551		)	2,205			1,654
Amounts reclassified out of accumulated other comprehensive (income) loss	—			191			—			2,379			—			2,570
Tax effects	—			(37		)	—			(310		)	(228		)	(575		)
Other comprehensive income (loss), net	—			154			—			1,518			1,977			3,649
December 29, 2018	$	(6,280	)	$	(2,362	)	$	(1,136	)	$	135		$	(1,693	)	$	(11,336	)

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Financial Instruments Financial Instruments, Securities Received as Consideration (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Jun. 29, 2019	Mar. 30, 2013
Investment [Line Items]
Document Period End Date	Dec. 28, 2019
Proceeds from sale of shares	$ 0	$ 27,253
Estimated Fair Value			$ 140,990
Not Designated as Hedging Instrument [Member] | Forward contracts held to purchase U.S. dollars [Member]
Investment [Line Items]
Derivative Asset, Notional Amount	50,300		19,600
Not Designated as Hedging Instrument [Member] | Forward contracts held to sell U.S. dollars [Member]
Investment [Line Items]
Derivative Asset, Notional Amount	20,700		21,100
Designated as Hedging Instrument [Member] | Forward contracts held to purchase U.S. dollars [Member] | Cash Flow Hedging [Member]
Investment [Line Items]
Derivative Asset, Notional Amount	$ 41,400		48,500
Fxed Rate Note Due March 2023 at 3 Point 375 Percent [Member]
Investment [Line Items]
proceeds from issuance of long term debt 3			$ 494,500	$ 490,000

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Balance Sheet Components (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Jun. 29, 2019
Inventories:
Raw materials	$ 13,222	$ 16,121
Work-in-process	142,551	160,273
Finished goods	68,185	70,118
Inventory, net	223,958	246,512
Property, plant and equipment:
Land	17,720	17,720
Buildings and building improvements	306,052	265,191
Machinery and equipment	1,338,349	1,367,606
Property, plant and equipment, gross	1,662,121	1,650,517
Less: accumulated depreciation and amortization	(1,090,762)	(1,072,795)
Property, plant and equipment, net	571,359	577,722
Employee-related Liabilities, Current [Abstract]
Accrued Vacation	31,223	30,251
Accrued Bonuses	35,182	71,466
Accrued Salaries	8,886	8,329
Accrued Employee Benefits	6,397	4,807
Other	13,051	3,851
Accrued salary and related expenses	$ 94,739	$ 118,704

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Dec. 28, 2019

Dec. 29, 2018

Goodwill [Line Items]

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or more often if events or changes in circumstances indicate that the carrying amount may not be recoverable.

There were no changes to goodwill during the six months ended December 28, 2019.

No indicators or instances of impairment were identified during the six months and fiscal year ended December 28, 2019 and June 29, 2019, respectively.

Intangible Assets

Intangible assets consisted of the following:

	December 28, 2019						June 29, 2019
	Original Cost		Accumulated Amortization		Net		Original Cost		Accumulated Amortization		Net
	(in thousands)
Intellectual property	$	490,136	$	451,780	$	38,356	$	487,346	$	445,558	$	41,788
Customer relationships	116,505		107,244		9,261		116,505		105,901		10,604
Trade name	9,974		9,082		892		9,974		8,914		1,060
Patents	2,500		2,500		—		2,500		2,500		—
Total amortizable purchased intangible assets	619,115		570,606		48,509		616,325		562,873		53,452
In-process research & development (IPR&D)	—		—		—		2,790		—		2,790
Total purchased intangible assets	$	619,115	$	570,606	$	48,509	$	619,115	$	562,873	$	56,242

The following table presents the amortization expense of intangible assets and its presentation in the Condensed Consolidated Statements of Income:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
	(in thousands)
Cost of goods sold	$	3,111	$	6,868	$	6,221	$	13,783
Intangible asset amortization	756		756		1,512		1,529
Total intangible asset amortization expenses	$	3,867	$	7,624	$	7,733	$	15,312

The following table represents the estimated future amortization expense of intangible assets as of December 28, 2019:

	Amount
Fiscal Year	(in thousands)
Remainder of 2020	$	7,733
2021	13,767
2022	8,088
2023	7,604
2024	4,628
Thereafter	6,689
Total intangible assets	$	48,509

Schedule of intangible assets [Table Text Block]

Intangible assets consisted of the following:

	December 28, 2019						June 29, 2019
	Original Cost		Accumulated Amortization		Net		Original Cost		Accumulated Amortization		Net
	(in thousands)
Intellectual property	$	490,136	$	451,780	$	38,356	$	487,346	$	445,558	$	41,788
Customer relationships	116,505		107,244		9,261		116,505		105,901		10,604
Trade name	9,974		9,082		892		9,974		8,914		1,060
Patents	2,500		2,500		—		2,500		2,500		—
Total amortizable purchased intangible assets	619,115		570,606		48,509		616,325		562,873		53,452
In-process research & development (IPR&D)	—		—		—		2,790		—		2,790
Total purchased intangible assets	$	619,115	$	570,606	$	48,509	$	619,115	$	562,873	$	56,242

Schedule of amortization expense allocation of intangible assets [Table Text Block]

The following table presents the amortization expense of intangible assets and its presentation in the Condensed Consolidated Statements of Income:

	Three Months Ended				Six Months Ended
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
	(in thousands)
Cost of goods sold	$	3,111	$	6,868	$	6,221	$	13,783
Intangible asset amortization	756		756		1,512		1,529
Total intangible asset amortization expenses	$	3,867	$	7,624	$	7,733	$	15,312

Estimated future amortization expense of intangible assets [Table Text Block]

The following table represents the estimated future amortization expense of intangible assets as of December 28, 2019:

	Amount
Fiscal Year	(in thousands)
Remainder of 2020	$	7,733
2021	13,767
2022	8,088
2023	7,604
2024	4,628
Thereafter	6,689
Total intangible assets	$	48,509

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Acquisitions (Notes)

6 Months Ended

Dec. 28, 2019

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

LEASES

The Company's lease obligations consist of operating leases for domestic and international office facilities, data centers, and equipment. These leases expire at various dates through fiscal year 2031. For the three and six months ended December 28, 2019, the Company recorded operating lease expense of $2.9 million and $5.9 million, respectively.

Leases are included in the following Condensed Consolidated Balance Sheet lines:

	December 28, 2019
	(in thousands)
Other assets	$	56,170
Accrued expenses	$	10,028
Other liabilities	$	50,784

Future minimum lease payments under non-cancelable operating leases as of December 28, 2019 are as follows:

	Operating Lease Obligations
Fiscal Year	(in thousands)
Remainder of 2020	$	5,969
2021	11,818
2022	10,847
2023	9,599
2024	8,202
Thereafter	21,904
Total	68,339
Less imputed interest	7,657
Total	$	60,682

Other information related to leases as of December 28, 2019 are as follows:

	Six Months Ended
	December 28, 2019
Supplemental cash flow information	(in thousands)
Operating cash flows used for operating leases	$	5,911
Weighted-average remaining lease term - operating leases, in years	7
Weighted-average discount rate - operating leases	3.45		%

Since most of our operating leases do not provide an implicit interest rate, the Company used a portfolio approach to determine a collateralized incremental borrowing rate based on the information available at the commencement date to determine the lease liability.

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Financial Instruments (Tables)

6 Months Ended

Dec. 28, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss) [Table Text Block]

The following tables summarize the gains (losses) from hedging activities recognized in the Company's Condensed Consolidated Statements of Income:

	Three Months Ended							Three Months Ended
	December 28, 2019							December 29, 2018
	Net Revenue		Cost of Goods Sold		Operating Expenses				Net Revenue		Cost of Goods Sold			Operating Expenses
	(in thousands)
Income and expenses line items in which the effects of cash flow hedges are recorded	$	551,070	$	190,546	$	191,468			$	576,906	$	203,858		$	190,844
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	10	$	(404	)		$	5	$	(82	)	$	(602	)

	Six Months Ended							Six Months Ended
	December 28, 2019							December 29, 2018
	Net Revenue		Cost of Goods Sold		Operating Expenses				Net Revenue		Cost of Goods Sold			Operating Expenses
	(in thousands)
Income and expenses line items in which the effects of cash flow hedges are recorded	$	1,084,110	$	380,263	$	378,787			$	1,215,401	$	412,117		$	386,898
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	130	$	(774	)		$	44	$	(596	)	$	(1,827	)

Available-for-sale investments [Table Text Block]

Fair values were as follows:

	December 28, 2019									June 29, 2019
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
	(in thousands)
Available-for-sale investments
Certificates of deposit	$	—	$	—	$	—		$	—	$	1,000	$	—	$	—		$	1,000
Corporate debt securities	62,929		86		(9		)	63,006		140,031		68		(109		)	139,990
Total available-for-sale investments	$	62,929	$	86	$	(9	)	$	63,006	$	141,031	$	68	$	(109	)	$	140,990

Schedule of long-term debt [Table Text Block]

The following table summarizes the Company’s outstanding debt obligations:

	December 28, 2019			June 29, 2019
	(in thousands)
3.45% fixed rate notes due June 2027	$	500,000		$	500,000
3.375% fixed rate notes due March 2023	500,000			500,000
Total outstanding debt	1,000,000			1,000,000
Less: Reduction for unamortized discount and debt issuance costs	(6,697		)	(7,416		)
Total long-term debt	$	993,303		$	992,584

Financial Instruments [Text Block]

FINANCIAL INSTRUMENTS

Short-term investments

Fair values were as follows:

	December 28, 2019									June 29, 2019
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
	(in thousands)
Available-for-sale investments
Certificates of deposit	$	—	$	—	$	—		$	—	$	1,000	$	—	$	—		$	1,000
Corporate debt securities	62,929		86		(9		)	63,006		140,031		68		(109		)	139,990
Total available-for-sale investments	$	62,929	$	86	$	(9	)	$	63,006	$	141,031	$	68	$	(109	)	$	140,990

In the three and six months ended December 28, 2019 and December 29, 2018, the Company did not recognize any impairment charges on short-term investments. All available-for-sale investments have maturity dates between January 15, 2020 and March 12, 2021.

The Company invests in various financial instruments including U.S. Treasury securities, corporate debt securities, commercial paper, and certificates of deposit which include instruments issued or managed by industrial, financial, and utility institutions and U.S. Treasury securities which include U.S. government Treasury bills and Treasury notes.

Derivative instruments and hedging activities

The Company incurs expenditures denominated in non-U.S. currencies, primarily the Philippine Peso and the Thai Baht associated with the Company's manufacturing activities in the Philippines and Thailand, respectively, and the European Euro, Indian Rupee, Japanese Yen, Taiwan New Dollar, South Korean Won, Chinese Yuan and Canadian Dollar, for sales offices and research and development activities undertaken outside of the U.S.

The Company has established a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effects of certain foreign currency exposures. The Company does not use these foreign currency forward contracts for trading purposes.

Derivatives designated as cash flow hedging instruments

The Company designates certain forward contracts as hedging instruments pursuant to Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”). As of December 28, 2019 and June 29, 2019, the notional amounts of the forward contracts the Company held to purchase international currencies were $41.4 million and $48.5 million, respectively. As of December 28, 2019 and June 29, 2019, the Company did not hold any forward contracts to sell international currencies.

Derivatives not designated as hedging instruments

As of December 28, 2019 and June 29, 2019, the notional amounts of the forward contracts the Company held to purchase international currencies were $50.3 million and $19.6 million, respectively, and the notional amounts of forward contracts the

Company held to sell international currencies were $20.7 million and $21.1 million, respectively. The increase in forward contracts held to purchase international currencies from fiscal year 2019 to fiscal year 2020 was primarily due to the addition of operating lease liabilities, which were recorded on the Company’s Consolidated Balance Sheet upon adoption of the new lease accounting standard, Topic 842. The Company's foreign currency forward contract gains or losses included in the Condensed Consolidated Statements of Income were not material for the three and six months ended December 28, 2019 and December 29, 2018, respectively.

Effect of hedge accounting on the Condensed Consolidated Statements of Income

The following tables summarize the gains (losses) from hedging activities recognized in the Company's Condensed Consolidated Statements of Income:

	Three Months Ended							Three Months Ended
	December 28, 2019							December 29, 2018
	Net Revenue		Cost of Goods Sold		Operating Expenses				Net Revenue		Cost of Goods Sold			Operating Expenses
	(in thousands)
Income and expenses line items in which the effects of cash flow hedges are recorded	$	551,070	$	190,546	$	191,468			$	576,906	$	203,858		$	190,844
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	10	$	(404	)		$	5	$	(82	)	$	(602	)

	Six Months Ended							Six Months Ended
	December 28, 2019							December 29, 2018
	Net Revenue		Cost of Goods Sold		Operating Expenses				Net Revenue		Cost of Goods Sold			Operating Expenses
	(in thousands)
Income and expenses line items in which the effects of cash flow hedges are recorded	$	1,084,110	$	380,263	$	378,787			$	1,215,401	$	412,117		$	386,898
Gain (loss) on cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	$	—	$	130	$	(774	)		$	44	$	(596	)	$	(1,827	)

Outstanding debt obligations

The following table summarizes the Company’s outstanding debt obligations:

	December 28, 2019			June 29, 2019
	(in thousands)
3.45% fixed rate notes due June 2027	$	500,000		$	500,000
3.375% fixed rate notes due March 2023	500,000			500,000
Total outstanding debt	1,000,000			1,000,000
Less: Reduction for unamortized discount and debt issuance costs	(6,697		)	(7,416		)
Total long-term debt	$	993,303		$	992,584

On June 15, 2017, the Company completed a public offering of $500 million aggregate principal amount of the Company's 3.45% senior unsecured and unsubordinated notes due in June 2027 (“2027 Notes”), with an effective interest rate of 3.5%. Interest on the 2027 Notes is payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2017. The net proceeds of this offering were approximately $495.2 million, after issuing at a discount and deducting paid expenses.

On November 21, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Company’s 2.5% coupon senior unsecured and unsubordinated notes due in November 2018 (“2018 Notes”), with an effective interest rate of 2.6%. Interest on the 2018 Notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing on May 15, 2014. The net proceeds of this offering were approximately $494.5 million, after issuing at a discount and deducting paid expenses. In November of 2018, the Company repaid the entire $500 million in principal and any outstanding interest, related to these outstanding notes.

On March 18, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Company’s 3.375% senior unsecured and unsubordinated notes due in March 2023 (“2023 Notes”), with an effective interest rate of 3.5%. Interest on the 2023 Notes is payable semi-annually in arrears on March 15 and September 15 of each year. The net proceeds of this offering were approximately $490.0 million, after issuing at a discount and deducting paid expenses.

The debt indentures that govern the 2027 Notes and the 2023 Notes include covenants that limit the Company's ability to grant liens on its facilities and to enter into sale and leaseback transactions, which could limit the Company's ability to secure additional debt funding in the future. In circumstances involving a change of control of the Company followed by a downgrade of the rating of the 2027 Notes or the 2023 Notes, the Company would be required to make an offer to repurchase the affected notes at a purchase price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest.

The Company accounts for all the notes above based on their amortized cost. The discount and expenses are being amortized to Interest and other income (expense), net in the Condensed Consolidated Statements of Income over the life of the notes. The interest expense is recorded in Interest and other income (expense), net in the Condensed Consolidated Statements of Income. Amortized discount and expenses, as well as interest expense associated with the notes, were $8.9 million and $11.2 million during the three months ended December 28, 2019 and December 29, 2018, respectively. Amortized discount and expenses, as well as interest expense associated with the notes, were $17.8 million and $23.6 million, respectively, during the six months ended December 28, 2019 and December 29, 2018.

The estimated fair value of the Company’s outstanding debt obligations was approximately $1.03 billion as of December 28, 2019. The estimated fair value of the debt is based primarily on observable market inputs and is a Level 2 measurement.

The Company recorded interest expense of $9.3 million and $11.7 million during the three months ended December 28, 2019, and December 29, 2018, respectively. The Company recorded interest expense of $18.6 million and $24.6 million during the six months ended December 28, 2019, and December 29, 2018, respectively.

Other Financial Instruments

For the balance of the Company’s financial instruments, cash equivalents, accounts receivable, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to their short maturities.

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Comprehensive Income Loss (Tables)

6 Months Ended

Dec. 28, 2019

Statement of Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The changes in accumulated other comprehensive income (loss) by component and related tax effects in the six months ended December 28, 2019 and December 29, 2018 were as follows:

(in thousands)	Unrealized Gains and (Losses) on Intercompany Receivables			Unrealized Gains and (Losses) on Post-Retirement Benefits			Cumulative Translation Adjustment			Unrealized Gains and (Losses) on Cash Flow Hedges			Unrealized Gains and (Losses) on Available-For-Sale Securities			Total
June 29, 2019	$	(6,280	)	$	(4,322	)	$	(1,136	)	$	425		$	(41	)	$	(11,354	)
Other comprehensive income (loss) before reclassifications	—			—			—			(941		)	135			(806		)
Amounts reclassified out of accumulated other comprehensive (income) loss	—			238			—			644			—			882
Tax effects	—			(42		)	—			48			(17		)	(11		)
Other comprehensive income (loss), net	—			196			—			(249		)	118			65
December 28, 2019	$	(6,280	)	$	(4,126	)	$	(1,136	)	$	176		$	77		$	(11,289	)

(in thousands)	Unrealized Gains and (Losses) on Intercompany Receivables			Unrealized Gains and (Losses) on Post-Retirement Benefits			Cumulative Translation Adjustment			Unrealized Gains and (Losses) on Cash Flow Hedges			Unrealized Gains and (Losses) on Available-For-Sale Securities			Total
June 30, 2018	$	(6,280	)	$	(2,516	)	$	(1,136	)	$	(1,383	)	$	(3,670	)	$	(14,985	)
Other comprehensive income (loss) before reclassifications	—			—			—			(551		)	2,205			1,654
Amounts reclassified out of accumulated other comprehensive (income) loss	—			191			—			2,379			—			2,570
Tax effects	—			(37		)	—			(310		)	(228		)	(575		)
Other comprehensive income (loss), net	—			154			—			1,518			1,977			3,649
December 29, 2018	$	(6,280	)	$	(2,362	)	$	(1,136	)	$	135		$	(1,693	)	$	(11,336	)

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Earnings Per Share EPS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Earnings Per Share [Abstract]
Net income	$ 146,050	$ 131,892	$ 286,206	$ 329,315

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Statements of Income and Comprehensive Income [Abstract]
Net income	$ 146,050	$ 131,892	$ 286,206	$ 329,315
Change in net unrealized gains and losses on available-for-sale securities, net of tax benefit (expense) of $(3), $(201), $(17) and $(228), respectively	0	885	118	1,977
Change in net unrealized gains and losses on cash flow hedges, net of tax benefit (expense) of $(117), $(96), $48 and $(310), respectively	610	423	(249)	1,518
Change in net unrealized gains and losses on post-retirement benefits, net of tax benefit (expense) of $(20), $(18), $(42) and $(37), respectively	98	76	196	154
Other comprehensive income (loss), net	708	1,384	65	3,649
Total comprehensive income	146,758	133,276	286,271	332,964
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax	(3)	(201)	(17)	(228)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	(117)	(96)	48	(310)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax	$ (20)	$ (18)	$ (42)	$ (37)

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Document and Entity Information Document - shares	6 Months Ended
	Dec. 28, 2019	Jan. 17, 2020
DEI [Abstract]
Document Transition Report	false
Document Quarterly Report	true
Title of 12(b) Security	Common stock, $0.001 par value
Entity Incorporation, State or Country Code	DE
Entity File Number	1-34192
Entity Registrant Name	MAXIM INTEGRATED PRODUCTS, INC.
Entity Address, Address Line One	160 Rio Robles
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95134
City Area Code	408
Local Phone Number	601-1000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Central Index Key	0000743316
Trading Symbol	MXIM
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 28, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Emerging Growth Company	false
Entity Small Business	false
Current Fiscal Year End Date	--06-27
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		269,394,184
Entity Tax Identification Number	94-2896096
Security Exchange Name	NASDAQ

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Basis of Presentation

6 Months Ended

Dec. 28, 2019

Basis of Presentation [Abstract]

Basis of Presentation [Text Block]

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Maxim Integrated Products, Inc. and all of its majority-owned subsidiaries (collectively, the “Company” or “Maxim Integrated”) included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“GAAP”) have been condensed or omitted pursuant to applicable rules and regulations. In the opinion of management, all adjustments of a normal recurring nature which were considered necessary for fair statement have been included. The year-end condensed consolidated balance sheet data were derived from audited consolidated financial statements but do not include all disclosures required by GAAP. The results of operations for the six months ended December 28, 2019 are not necessarily indicative of the results to be expected for the entire year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended June 29, 2019.

The Company has a 52-to-53-week fiscal year that ends on the last Saturday in June. Accordingly, every fifth or sixth fiscal year will be a 53-week fiscal year. Fiscal years 2019 and 2020 are 52-week fiscal years.

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Stock-Based Compensation Stock Based Compensation, Market Stock Units (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Dec. 28, 2019

Dec. 29, 2018

Dec. 28, 2019

Dec. 29, 2018

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangements by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block]

The following table summarizes the number of MSUs outstanding and expected to vest as of December 28, 2019 and their activity during the six months ended December 28, 2019:

	Number of Shares		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value(1)
Balance at June 29, 2019	1,048,532
Market stock units granted	259,984
Market stock units released	(183,974	)
Market stock units cancelled	(140,290	)
Balance at December 28, 2019	984,252		2.8	$	60,570,868
Outstanding and expected to vest, December 28, 2019	350,417		2.7	$	21,564,655

(1) Aggregate intrinsic value for MSUs represents the closing price per share of the Company’s common stock on December 27, 2019, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of December 28, 2019.

Allocated Share-based Compensation Expense

$ 24,066

$ 21,656

$ 48,738

$ 42,153

Outstanding and expected to vest MSUs [Roll Forward]

Unrecognized compensation costs related to unvested units

175,200

$ 175,200

Weighted average period of recognition for unrecognized compensation costs (in years)

2 years 9 months 18 days

Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Allocated Share-based Compensation Expense

$ 2,400

$ 2,900

$ 6,800

$ 5,300

Market Stock Units [Member]

Outstanding and expected to vest MSUs [Roll Forward]

Weighted average grant date fair value (per share)

$ 54.70

$ 75.48

Outstanding, beginning

1,048,532

Granted

259,984

Released

(183,974)

Cancelled

(140,290)

Outstanding, ending

984,252

984,252

Expected to vest, number of shares

350,417

350,417

Outstanding, weighted average remaining contractual term (in years)

2 years 9 months 18 days

Outstanding and expected to Vest, weighted average remaining contractual term 3

2 years 8 months 12 days

Outstanding, aggregate intrinsic value

$ 60,570,868

$ 60,570,868

Outstanding and expected to vest, aggregate intrinsic value

21,564,655

21,564,655

Unrecognized compensation costs related to unvested units

$ 32,400

$ 32,400

Market Stock Units (MSU) [Member] [Domain]

Outstanding and expected to vest MSUs [Roll Forward]

Outstanding, ending

1,000

1,000

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Financial Instruments Gain (Loss) from Hedging Activities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Derivative [Line Items]
Document Period End Date			Dec. 28, 2019
Revenue from Contract with Customer, Excluding Assessed Tax	$ 551,070	$ 576,906	$ 1,084,110	$ 1,215,401
Cost of goods sold	190,546	203,858	380,263	412,117
Revenues	551,070	576,906	1,084,110	1,215,401
Operating Expenses	191,468	190,844	378,787	386,898
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			(882)	(2,570)
Accumulated Net Gain (Loss) from Cost of Good Solds Attributable to Parent [Member] [Member]
Derivative [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	10	(82)	130	(596)
Accumulated Net Gain (Loss) from Operating Expense Attributable to Parent [Member] [Member] [Member]
Derivative [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(404)	(602)	(774)	(1,827)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Derivative [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	$ 0	$ 5	$ 0	$ 44

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Leases Balance Sheet Items Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 29, 2018	Dec. 29, 2018	Dec. 28, 2019	Jun. 30, 2019
Balance Sheet Items Related to Leases [Abstract]
Operating Leases, Rent Expense	$ 2,900	$ 5,900
Operating Lease, Right-of-Use Asset			$ 56,170	$ 61,000
Operating Lease, Liability, Current			10,028
Operating Lease, Liability, Noncurrent			$ 50,784