v3.25.2
Leases
 12 Months Ended
Jun. 29, 2025
Leases [Abstract]  
Leases Leases
The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. While the majority of the Company’s lease arrangements are operating leases, the Company has certain leases that qualify as finance leases.
Variable lease payments are expensed as incurred and are not included within the right of use asset and lease liability calculation. Variable lease payments primarily include costs associated with the Company’s third-party logistics arrangements that contain one or more embedded leases. Variable lease costs will fluctuate based on factory output and material receipt volumes. Variable lease costs for fiscal years 2025, 2024, and 2023 were $176.6 million, $176.6 million, and $227.7 million; respectively. Finance lease costs, including amortization of right of use assets and interest on lease liabilities; short-term rental expense for agreements less than one year in duration; and operating lease costs were immaterial for fiscal years 2025, 2024, and 2023, respectively.
Supplemental cash flow information related to leases was as follows as of June 29, 2025, June 30, 2024, and June 25, 2023:
Year Ended
June 29,
2025		June 30,
2024		June 25,
2023
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases$85,558 $97,447 $74,397 
Financing cash flows paid for principal portion of finance leases4,059 255,695 14,985 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$81,011 $146,169 $91,592 
Finance leases2,884 226,519 20,161 
Supplemental balance sheet information related to leases was as follows as of June 29, 2025 and June 30, 2024:
June 29,
2025		June 30,
2024
(in thousands)
Operating leases
Other assets$286,980 $308,336 
Accrued expenses and other current liabilities$78,707 $64,443 
Other long-term liabilities193,343 223,273 
Total operating lease liabilities$272,050 $287,716 
As of June 29, 2025 and June 30, 2024 outstanding finance lease obligations were immaterial.
June 29, 2025June 30, 2024
Weighted-Average Remaining Lease TermWeighted-Average Discount RateWeighted-Average Remaining Lease TermWeighted-Average Discount Rate
(in years)(in years)
Operating leases4.93.75 %4.93.54 %
As of June 29, 2025, the maturities of operating lease liabilities are as follows:
Operating Leases
(in thousands)
2026$86,814 
202766,407 
202841,259 
202936,836 
203025,962 
Thereafter43,267 
Total lease payments$300,545 
Less imputed interest(28,495)
Total$272,050 
Selected Leases and Related Guarantees
The Company leases some of its administrative, research and development and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable leases. Certain of the Company’s facility leases are for buildings located at its Tualatin, Oregon campus; and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation.
The Company elected to exercise purchase options available under its finance leases for certain improved properties in Fremont and Livermore, California (the “California Facility Leases”) in the three months ended September 24, 2023. As a result, the Company released cash collateral in an aggregate of approximately $250 million of restricted cash that was reported in Other assets in the Company’s Consolidated Balance Sheet. Additionally, guarantees made to the lessor that each property would have a certain minimum residual value totaling $298.4 million as of June 25, 2023 in the aggregate were eliminated with the extinguishment of the California Facility Leases. As a result of the purchase of the improved properties, $250.5 million of additions were made to Property and equipment, net in the Company’s Consolidated Balance Sheets primarily comprised of land ($40.5 million) and buildings and improvements ($210.0 million).
Leases Leases
The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. While the majority of the Company’s lease arrangements are operating leases, the Company has certain leases that qualify as finance leases.
Variable lease payments are expensed as incurred and are not included within the right of use asset and lease liability calculation. Variable lease payments primarily include costs associated with the Company’s third-party logistics arrangements that contain one or more embedded leases. Variable lease costs will fluctuate based on factory output and material receipt volumes. Variable lease costs for fiscal years 2025, 2024, and 2023 were $176.6 million, $176.6 million, and $227.7 million; respectively. Finance lease costs, including amortization of right of use assets and interest on lease liabilities; short-term rental expense for agreements less than one year in duration; and operating lease costs were immaterial for fiscal years 2025, 2024, and 2023, respectively.
Supplemental cash flow information related to leases was as follows as of June 29, 2025, June 30, 2024, and June 25, 2023:
Year Ended
June 29,
2025		June 30,
2024		June 25,
2023
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases$85,558 $97,447 $74,397 
Financing cash flows paid for principal portion of finance leases4,059 255,695 14,985 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$81,011 $146,169 $91,592 
Finance leases2,884 226,519 20,161 
Supplemental balance sheet information related to leases was as follows as of June 29, 2025 and June 30, 2024:
June 29,
2025		June 30,
2024
(in thousands)
Operating leases
Other assets$286,980 $308,336 
Accrued expenses and other current liabilities$78,707 $64,443 
Other long-term liabilities193,343 223,273 
Total operating lease liabilities$272,050 $287,716 
As of June 29, 2025 and June 30, 2024 outstanding finance lease obligations were immaterial.
June 29, 2025June 30, 2024
Weighted-Average Remaining Lease TermWeighted-Average Discount RateWeighted-Average Remaining Lease TermWeighted-Average Discount Rate
(in years)(in years)
Operating leases4.93.75 %4.93.54 %
As of June 29, 2025, the maturities of operating lease liabilities are as follows:
Operating Leases
(in thousands)
2026$86,814 
202766,407 
202841,259 
202936,836 
203025,962 
Thereafter43,267 
Total lease payments$300,545 
Less imputed interest(28,495)
Total$272,050 
Selected Leases and Related Guarantees
The Company leases some of its administrative, research and development and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable leases. Certain of the Company’s facility leases are for buildings located at its Tualatin, Oregon campus; and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation.
The Company elected to exercise purchase options available under its finance leases for certain improved properties in Fremont and Livermore, California (the “California Facility Leases”) in the three months ended September 24, 2023. As a result, the Company released cash collateral in an aggregate of approximately $250 million of restricted cash that was reported in Other assets in the Company’s Consolidated Balance Sheet. Additionally, guarantees made to the lessor that each property would have a certain minimum residual value totaling $298.4 million as of June 25, 2023 in the aggregate were eliminated with the extinguishment of the California Facility Leases. As a result of the purchase of the improved properties, $250.5 million of additions were made to Property and equipment, net in the Company’s Consolidated Balance Sheets primarily comprised of land ($40.5 million) and buildings and improvements ($210.0 million).