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Stock-Based Compensation
 6 Months Ended
Dec. 26, 2020
Share-based Payment Arrangement [Abstract]  
Share-based Payment Arrangement, Expensed and Capitalized, Amount [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 26, 2020 and December 28, 2019, respectively:

Three Months EndedThree Months Ended
December 26, 2020December 28, 2019
Stock OptionsRestricted Stock Units and Other AwardsEmployee Stock Purchase PlanTotalStock OptionsRestricted Stock Units and Other AwardsEmployee Stock Purchase PlanTotal
(in thousands)
Cost of goods sold$13 $3,502 $585 $4,100 $5 $2,269 $699 $2,973 
Research and development3 10,880 1,048 11,931 4 9,918 1,514 11,436 
Selling, general and administrative73 14,559 546 15,178 55 8,753 849 9,657 
Pre-tax stock-based compensation expense$89 $28,941 $2,179 $31,209 $64 $20,940 $3,062 $24,066 
Less: income tax effect3,030 2,193 
Net stock-based compensation expense$28,179 $21,873 

Six Months EndedSix Months Ended
December 26, 2020December 28, 2019
Stock OptionsRestricted Stock Units and Other AwardsEmployee Stock Purchase PlanTotalStock OptionsRestricted Stock Units and Other AwardsEmployee Stock Purchase PlanTotal
(in thousands)
Cost of goods sold$24 $7,295 $1,449 $8,768 $14 $4,549 $1,368 $5,931 
Research and development6 23,147 3,155 26,308 8 19,403 2,909 22,320 
Selling, general and administrative148 30,042 1,673 31,863 122 18,706 1,659 20,487 
Pre-tax stock-based compensation expense$178 $60,484 $6,277 $66,939 $144 $42,658 $5,936 $48,738 
Less: income tax effect5,561 5,081 
Net stock-based compensation expense$61,378 $43,657 
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 26, 2020 and related activity for the six months ended December 26, 2020:
Number of
Shares
Weighted Average Exercise PriceWeighted Average Remaining Contractual Term (in Years)
Aggregate Intrinsic Value(1)
Balance at June 27, 2020104,447 $28.76 
Options Granted— — 
Options Exercised(99,819)28.50 
Options Cancelled— — 
Balance at December 26, 20204,628 $34.20 0.4$242,414 
Exercisable, December 26, 20204,628 $34.20 0.4$242,414 
Vested and expected to vest, December 26, 20204,628 $34.20 0.4$242,414 

(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 24, 2020, 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 26, 2020.
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 RSAs as of December 26, 2020 and related activity during the six months ended December 26, 2020:
Number of
Shares
Weighted Average
Remaining
Contractual Term
(in Years)
Aggregate Intrinsic
Value(1)
Balance at June 27, 20204,606,592 
Restricted stock units and restricted stock awards granted1,377,171 
Restricted stock units and restricted stock awards released(949,534)
Restricted stock units and restricted stock awards cancelled(246,848)
Balance at December 26, 20204,787,381 1.9$414,491,447 
Outstanding and expected to vest, December 26, 2020
3,928,669 1.6$340,144,241 

(1)Aggregate intrinsic value for RSUs and RSAs represents the closing price per share of the Company’s common stock on December 24, 2020, the last business day preceding the fiscal quarter-end, multiplied by the number of RSUs and RSAs outstanding or expected to vest as of December 26, 2020.
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 26, 2020 and their activity during the six months ended December 26, 2020:
Number of
Shares
Weighted Average
Remaining
Contractual Term
(in Years)
Aggregate Intrinsic
Value(1)
Balance at June 27, 2020971,220 
Market stock units granted— 
Market stock units released— 
Market stock units cancelled(237,576)
Balance at December 26, 2020733,644 1.5$63,518,898 
Outstanding and expected to vest, December 26, 2020
1,062,016 1.1$91,949.385 

(1)Aggregate intrinsic value for MSUs represents the closing price per share of the Company’s common stock on December 24, 2020, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of December 26, 2020.
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:
Three Months EndedSix Months Ended
December 26, 2020December 28, 2019December 26, 2020December 28, 2019
Expected holding period (in years)0.5 years0.5 years0.5 years0.5 years
Risk-free interest rate0.2% - 1.6%1.6% - 2.7%0.2% - 1.6%1.6% - 2.7%
Expected stock price volatility29.2% - 55.2%28.4% - 31.3%29.2% - 55.2%28.4% - 31.3%
Dividend yield3.3% - 3.3%3.1% - 3.4%3.3% - 3.3%3.1% - 3.4%
Nonvested Restricted Stock Shares Activity [Table Text Block] The Company withheld shares totaling $36.0 million in value as a result of employee withholding taxes based on the value of RSUs and RSAs on their vesting date for the six months ended December 26, 2020. 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 26, 2020, there was $183.3 million of unrecognized compensation expense related to 4.8 million unvested RSUs and RSAs, which is expected to be recognized over a weighted average period of approximately 1.9 years.
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity
Restricted Stock Units and Restricted Stock Awards

The fair value of RSUs and RSAs 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 RSAs granted was $69.32 and $56.21 per share for the six months ended December 26, 2020 and December 28, 2019, respectively.

The following table summarizes the outstanding and expected to vest RSUs and RSAs as of December 26, 2020 and related activity during the six months ended December 26, 2020:
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, September 2018, and September 2019, 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 in September 2017, September 2018, and September 2019 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. Pursuant to the terms of the ADI Merger Agreement, the Company grants RSUs in lieu of MSUs (or RSAs in lieu of MSUs for any potential “disqualified individuals” within the meaning of Section 280G of the Internal Revenue Code, which RSAs will not be eligible for dividends or dividend equivalent rights) from the date of the ADI Merger Agreement through the date that the transaction closes.
Compensation and Employee Benefit Plans
At December 26, 2020, 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”), restricted stock awards ("RSAs") 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 released or 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 from September 2017 to July 2020 will continue to vest post-employment at the Company for certain individuals satisfying specific eligibility requirements.

RSAs 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. RSAs have certain shareholder rights, such as voting rights, but are not eligible for dividends or dividend equivalents.
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 in September 2017, September 2018, and September 2019 will continue to vest post-employment at the Company for certain individuals satisfying specific eligibility requirements.
Income Taxes [Text Block] INCOME TAXES
In the three and six months ended December 26, 2020 the Company recorded an income tax provision of $26.5 million and $51.4 million, respectively, compared to $23.0 million and $40.7 million, for the three and six months ended December 28, 2019, respectively. The Company’s effective tax rate for the three and six months ended December 26, 2020 was 12.6% and 12.7%, respectively, compared to 13.6% and 12.4% for the three and six months ended December 28, 2019, respectively.

The Company’s federal statutory tax rate is 21%. The Company’s effective tax rate for the three and six months ended December 26, 2020 and 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 generated by Global Intangible Low-Taxed Income.

On June 18, 2019, the U.S. Treasury and Internal Revenue Service (“IRS”) released temporary regulations under Internal Revenue Code (“IRC”) Sections 245A and 954(c)(6) (the “Temporary Regulations”), which applied retroactively to intercompany dividends occurring after December 31, 2017. The Temporary Regulations limit the applicability of the foreign personal holding company income (“FPHCI”) look-through exception for certain intercompany dividends received by a controlled foreign corporation. Before application of the retroactive Temporary Regulations, the Company benefited in fiscal years 2018 and 2019 from the FPHCI look-through exception. On August 21, 2020, the U.S. Treasury and IRS released final regulations under IRC Sections 245A and 954(c)(6) (the “Final Regulations”), which generally apply to years ending on or after
June 14, 2019. The relevant sections of the Final Regulations are virtually the same as the Temporary Regulations. The Temporary Regulations apply to fiscal year 2018 and the Final Regulations apply to fiscal year 2019 intercompany dividends. The Company does not have any intercompany dividends after fiscal year 2019 that are impacted by relevant sections of the Temporary Regulations or Final Regulations.

The Company previously analyzed the relevant Temporary Regulations and concluded that they were not validly issued, a conclusion which the Company has determined is not altered by issuance of the Final Regulations. The Company has also analyzed the relevant Final Regulations and concluded that they were not validly issued. Therefore, the Company has not accounted for the effects of the Temporary Regulations or Final Regulations in its results of operations for any fiscal period. The Company believes it has strong arguments in favor of its position and that it has met the more likely than not recognition threshold that its position will be sustained. The Company intends to vigorously defend its position, however, due to the uncertainty involved in challenging and litigating the validity of regulations, there can be no assurance that a court of law will rule in favor of the Company. An unfavorable resolution of this issue could have a material adverse impact on the Company's results of operations and financial condition.

The Company’s federal corporate income tax returns are audited on a recurring basis by the IRS. 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.