Financial Statement Details

3 Months Ended

Sep. 26, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Financial Statement Details

Financial Statement Details

Accounts Receivable, net

Accounts receivable, net consisted of the following:

(in millions of U.S. Dollars)	September 26, 2021	June 27, 2021
Billed trade receivables	$106.0	$95.6
Unbilled contract receivables	0.9	0.6
Royalties	0.4	0.5
	107.3	96.7
Allowance for bad debts	(0.9)	(0.8)
Accounts receivable, net	$106.4	$95.9

    

Changes in the Company’s allowance for bad debts were as follows:

(in millions of U.S. Dollars)	September 26, 2021
Balance at beginning of period	$0.8
Current period provision change	0.1
Write-offs, net of recoveries	—
Balance at end of period	$0.9

Inventories

Inventories consisted of the following:

(in millions of U.S. Dollars)	September 26, 2021	June 27, 2021
Raw material	$46.8	$43.3
Work-in-progress	121.6	109.5
Finished goods	14.6	13.8
Inventories	$183.0	$166.6

In addition, the Company holds inventory related to the Wafer Supply Agreement entered into in connection with the LED Business Divestiture, which is recorded within other current assets on the consolidated balance sheets.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

(in millions of U.S. Dollars)	September 26, 2021	June 27, 2021
Accounts payable, trade	$38.2	$44.2
Accrued salaries and wages	60.2	69.5
Accrued property and equipment	128.9	248.3
Accrued expenses	19.5	17.4
Other	0.9	1.7
Accounts payable and accrued expenses	$247.7	$381.1

Other Operating Expense

Other operating expense consisted of the following:

	Three months ended
(in millions of U.S. Dollars)	September 26, 2021	September 27, 2020
Factory optimization restructuring	$2.6	$1.6
Severance and other restructuring	—	2.8
Total restructuring costs	2.6	4.4
Project, transformation and transaction costs	1.6	1.2
Factory optimization start-up costs	8.6	3.0
Other operating expense	$12.8	$8.6

Accumulated Other Comprehensive Income, net of taxes

Accumulated other comprehensive income, net of taxes, consisted of $1.9 million and $2.7 million of net unrealized gains on available-for-sale securities as of September 26, 2021 and June 27, 2021, respectively. Amounts for both periods include a $2.4 million loss related to tax on unrealized gain (loss) on available-for-sale securities.

Reclassifications Out of Accumulated Other Comprehensive Income

Reclassifications out of accumulated other comprehensive income were $0.2 million for the three months ended September 26, 2021 and less than $0.1 million for the three months ended September 27, 2020. Amounts were reclassified to non-operating expense, net on the consolidated statements of operations.

Non-Operating Expense, net

The following table summarizes the components of non-operating expense, net:

	Three months ended
(in millions of U.S. Dollars)	September 26, 2021	September 27, 2020
Foreign currency gain, net	($0.1)	($0.2)
Gain on sale of investments, net	(0.2)	—
Loss on equity investment, net	—	3.4
Interest income	(2.6)	(2.7)
Interest expense, net of capitalized interest	6.7	13.1
Loss on Wafer Supply Agreement	0.8	—
Other, net	(0.5)	0.3
Non-operating expense, net	$4.1	$13.9

Statements of Cash Flows - non-cash activities

	Three months ended
	September 26, 2021	September 27, 2020
Lease asset and liability additions	$3.5	$1.1
Lease asset and liability modifications, net	2.6	0.1
Transfer of finance lease liability to accounts payable and accrued expenses (1)	—	4.2
Decrease in property, plant and equipment from long-term incentive related receivables	23.2	—

(1) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets.