v3.26.1
Balance Sheet Details
9 Months Ended
Mar. 28, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Details
Note 7. Balance Sheet Details
Allowance for Current Expected Credit Losses
We did not have any allowance for credit losses other than our allowance for uncollectible accounts receivable. As of March 28, 2026 and June 28, 2025, the allowance for credit losses on our trade receivables was $3.4 million and $3.5 million, respectively.
Inventories
The components of inventories were as follows (in millions):
March 28, 2026June 28, 2025
Raw materials and purchased parts$321.1 $253.2 
Work in process224.8 159.1 
Finished goods86.9 57.8 
Inventories
$632.8 $470.1 
Property, Plant and Equipment, Net
The components of property, plant and equipment, net were as follows (in millions):
March 28, 2026June 28, 2025
Land$92.1 $108.6 
Buildings and improvements280.9 270.4 
Machinery and equipment1,059.7 848.8 
Computer equipment and software42.4 39.1 
Furniture and fixtures13.0 14.7 
Leasehold improvements48.3 45.9 
Construction in progress248.4 152.3 
1,784.8 1,479.8 
Less: Accumulated depreciation(820.5)(753.4)
Property, plant and equipment, net$964.3 $726.4 
Our construction in progress primarily includes building improvements and machinery and equipment that we expect to place in service in the next 12 months.
In connection with our acquisition of a business in March 2026, we recorded approximately $39.5 million of property, plant and equipment in our condensed consolidated balance sheets. Refer to “Note 4. Business Combinations” for details.
In March 2026, we completed the sale of two commercial real estate properties located in San Jose, California. The properties consist of commercial buildings used by us for office, research and development and manufacturing support activities. The agreement provided for a cash purchase price of $43.0 million and included a short-term rental arrangement under which we will continue to occupy the properties through July 1, 2026. We recorded a loss on sale of $0.2 million and $7.7 million during the three and nine months ended March 28, 2026, respectively, which is included in the selling, general and administrative expenses in our condensed consolidated statements of operations.
On December 17, 2024, we entered into an agreement to sell our net assets in an entity in Shenzhen, China. On March 5, 2025, we completed the sale and received net proceeds of $47.8 million, which was net of cash of $17.6 million and direct selling costs of $1.1 million. The net assets sold consist primarily of building, building improvements and land rights as of December 17, 2024 with a net carrying value of $12.9 million, and were used for manufacturing and research and development activities. As a result, we recognized a gain on sale of facility of $34.9 million, which was recorded in our condensed consolidated statements of operations for the three and nine months ended March 29, 2025. We paid $4.4 million of withholding taxes on this sale transaction, which is recorded as part of the income tax provision for the three and nine months ended March 29, 2025. We also incurred $0.7 million of indirect selling expenses related to this transaction, which was
recorded as part of selling, general and administrative expenses in our condensed consolidated statements of operations in the three and nine months ended March 29, 2025.
In July 2024, we purchased the land and building of our wafer fabrication facility located in Sagamihara, Japan for a total transaction price of $42.2 million including $1.3 million of incremental direct costs for fees paid to third parties that were capitalized. We also recorded a $16.3 million increase in the carrying value of buildings purchased related to the termination of leases for the purchased building. The total carrying value of assets purchased was $58.5 million at the purchase date, of which $33.4 million was allocated to the land and $25.1 million to the building.
In addition, in connection with the sale of our Brazilian entities, we recorded a gain on sale of approximately $1.6 million recorded in selling, general and administrative expenses in our condensed consolidated statements of operations during the nine months ended March 28, 2026.
During the three and nine months ended March 28, 2026, we recorded depreciation expense of $32.8 million and $91.2 million, respectively.
Operating Lease Right-of-Use Assets
Operating lease right-of-use assets, net were as follows (in millions):
March 28, 2026June 28, 2025
Operating lease right-of-use assets$57.1 $54.4 
Less: accumulated amortization(30.1)(26.5)
Operating lease right-of-use assets, net$27.0 $27.9 
In connection with the purchase of land and building in Sagamihara, Japan in July 2024, we terminated our leases for the related facilities and recorded a $16.3 million increase in the carrying value of building purchased, as a result of derecognizing $32.0 million of net operating lease right-of-use asset, $1.6 million of operating lease liabilities, current, and $14.1 million of operating lease liabilities, non-current.
Other Current Liabilities
The components of other current liabilities were as follows (in millions):
March 28, 2026June 28, 2025
Restructuring accrual and related charges (1)
$2.0 $2.5 
Warranty reserve (2)
25.0 14.4 
Deferred revenue and customer deposits (3)
7.3 0.7 
Income tax payable (4)
22.4 29.1 
Other current liabilities 6.2 6.4 
Other current liabilities
$62.9 $53.1 
(1) Refer to “Note 11. Restructuring and Related Charges (Reversals).”
(2) Refer to “Note 14. Commitments and Contingencies.”
(3) Refer to “Note 16. Revenue Recognition.”
(4) Refer to “Note 12. Income Taxes.”
Other Non-Current Liabilities
The components of other non-current liabilities were as follows (in millions):
March 28, 2026June 28, 2025
Asset retirement obligations$7.1 $7.1 
Pension and related accruals (1)
11.4 9.7 
Unrecognized tax benefit (2)
67.6 55.6 
Other non-current liabilities (2)
35.1 25.4 
Other non-current liabilities$121.2 $97.8 
(1) We have defined benefit pension plans in Japan, Switzerland, and Thailand. Pension and related accrual of $11.4 million as of March 28, 2026 represents $11.8 million of non-current portion of benefit obligation, offset by $0.4 million of funding for the pension plan in Switzerland. Pension and related accrual of $9.7 million as of June 28, 2025 relates to $11.0 million of non-current portion of benefit obligation, offset by $1.3 million of funding for the pension plan in Switzerland. We typically re-evaluate the assumptions related to the fair value of our defined benefit obligations annually in the fiscal fourth quarter and make any updates as necessary. During the three and nine months ended March 28, 2026, our contribution expense to the 401(k) Plan in the United States was $1.2 million and $2.3 million, respectively. During the three and nine months ended March 29, 2025, our contribution expense to the 401(k) Plan in the United States was $1.1 million and $2.4 million, respectively. Our contribution expense to all defined contribution plans outside the United States was $2.7 million and $7.9 million during the three and nine months ended March 28, 2026, respectively. Our contribution expense to all defined contribution plans outside the United States was $2.3 million and $6.1 million during the three and nine months ended March 29, 2025, respectively.
(2) We have reclassified a $21.4 million unrecognized tax position to other non-current liabilities in the condensed consolidated balance sheets as of the year ended June 28, 2025 for an indemnification liability related to the sale of certain assets. This does not impact our results of operations for the year ended June 28, 2025.