v3.26.1
Leases
 12 Months Ended
Jun. 28, 2026
Leases [Abstract]  
Leases Leases
The Company primarily leases manufacturing and office spaces and bulk gas equipment. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that are volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. For details on the Company's lease policies, see the significant accounting policy disclosures in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies."
The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's silicon carbide device fabrication facility in New York.
Balance Sheet
Lease assets and liabilities and the corresponding balance sheet classifications are as follows:
(in millions of U.S. Dollars)SuccessorPredecessor
Operating Leases:June 28, 2026June 29, 2025
Right-of-use assets (1)
$96.8 $123.1 
Current lease liability (2)
7.4 9.9 
Non-current lease liability (3)
99.2 139.5 
Total operating lease liabilities$106.6 $149.4 
Finance Leases:
Finance lease assets (4)
$2.1 $8.3 
Current portion of finance lease liabilities0.2 0.5 
Finance lease liabilities, less current portion1.9 8.4 
Total finance lease liabilities$2.1 $8.9 
(1) Within other assets on the consolidated balance sheets.
(2) Within other current liabilities on the consolidated balance sheets.
(3) Within other long-term liabilities on the consolidated balance sheets.
(4) Within property and equipment, net on the consolidated balance sheets.
Statement of Operations
SuccessorPredecessor
(in millions of U.S. Dollars)Period from September 30, 2025 to June 28, 2026Period from June 30, 2025 to September 29, 2025Fiscal Year Ended June 29, 2025Fiscal Year Ended June 30, 2024
Operating lease expense$15.0 $4.3 $16.7 $13.9 
Finance lease amortization0.3 0.2 0.8 0.8 
Interest expense for finance leases was immaterial for all periods presented.
Cash Flows
Cash flow information consisted of the following (1):
SuccessorPredecessor
(in millions of U.S. Dollars)Period from September 30, 2025 to June 28, 2026Period from June 30, 2025 to September 29, 2025Fiscal Year Ended June 29, 2025Fiscal Year Ended June 30, 2024
Cash (used in) provided by operating activities:
Cash paid for operating leases($15.6)($4.1)($15.5)($12.6)
Cash received for tenant allowance on operating leases— — 1.8 0.4 
Cash paid for interest portion of financing leases(0.2)(0.1)(0.2)(0.3)
Cash used in financing activities:
Cash paid for principal portion of finance leases(0.4)(0.1)(0.5)(0.4)
(1) See "Statements of Cash Flows - non-cash activities" in Note 2, "Basis of Presentation and Summary of Significant Accounting Policies," for non-cash activities related to leases.
Lease Liability Maturities
Maturities of operating and finance lease liabilities as of June 28, 2026 were as follows:
(in millions of U.S. Dollars)Successor
Fiscal Year EndingOperating LeasesFinance LeasesTotal
June 27, 2027$19.2 $0.4 $19.6 
June 25, 202818.1 0.3 18.4 
June 24, 202917.3 0.3 17.6 
June 30, 203016.0 0.2 16.2 
June 29, 203115.5 0.3 15.8 
Thereafter115.1 13.3 128.4 
Total lease payments201.2 14.8 216.0 
Future tenant improvement allowances— — — 
Imputed lease interest(94.6)(12.7)(107.3)
Total lease liabilities$106.6 $2.1 $108.7 
Supplemental Disclosures
Successor
Operating LeasesFinance Leases
Weighted average remaining lease term (in months) (1)
142452
Weighted average discount rate (2)
11.77 %13.84 %
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 19 months.
(2) Weighted average discount rate of finance leases without the 49-year ground lease is 10.18%.

Lease Impairment

For the fiscal year ended June 29, 2025, the Company recorded $4.8 million of non-cash impairment charges for the abandonment of ROU assets as a result of the ongoing factory consolidation and optimization initiatives. The impairment of the ROU assets is included in "restructuring and other expenses" within the accompanying consolidated statement of operations. Refer to Note 18 - "Restructuring" for additional details.
Leases Leases
The Company primarily leases manufacturing and office spaces and bulk gas equipment. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that are volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. For details on the Company's lease policies, see the significant accounting policy disclosures in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies."
The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's silicon carbide device fabrication facility in New York.
Balance Sheet
Lease assets and liabilities and the corresponding balance sheet classifications are as follows:
(in millions of U.S. Dollars)SuccessorPredecessor
Operating Leases:June 28, 2026June 29, 2025
Right-of-use assets (1)
$96.8 $123.1 
Current lease liability (2)
7.4 9.9 
Non-current lease liability (3)
99.2 139.5 
Total operating lease liabilities$106.6 $149.4 
Finance Leases:
Finance lease assets (4)
$2.1 $8.3 
Current portion of finance lease liabilities0.2 0.5 
Finance lease liabilities, less current portion1.9 8.4 
Total finance lease liabilities$2.1 $8.9 
(1) Within other assets on the consolidated balance sheets.
(2) Within other current liabilities on the consolidated balance sheets.
(3) Within other long-term liabilities on the consolidated balance sheets.
(4) Within property and equipment, net on the consolidated balance sheets.
Statement of Operations
SuccessorPredecessor
(in millions of U.S. Dollars)Period from September 30, 2025 to June 28, 2026Period from June 30, 2025 to September 29, 2025Fiscal Year Ended June 29, 2025Fiscal Year Ended June 30, 2024
Operating lease expense$15.0 $4.3 $16.7 $13.9 
Finance lease amortization0.3 0.2 0.8 0.8 
Interest expense for finance leases was immaterial for all periods presented.
Cash Flows
Cash flow information consisted of the following (1):
SuccessorPredecessor
(in millions of U.S. Dollars)Period from September 30, 2025 to June 28, 2026Period from June 30, 2025 to September 29, 2025Fiscal Year Ended June 29, 2025Fiscal Year Ended June 30, 2024
Cash (used in) provided by operating activities:
Cash paid for operating leases($15.6)($4.1)($15.5)($12.6)
Cash received for tenant allowance on operating leases— — 1.8 0.4 
Cash paid for interest portion of financing leases(0.2)(0.1)(0.2)(0.3)
Cash used in financing activities:
Cash paid for principal portion of finance leases(0.4)(0.1)(0.5)(0.4)
(1) See "Statements of Cash Flows - non-cash activities" in Note 2, "Basis of Presentation and Summary of Significant Accounting Policies," for non-cash activities related to leases.
Lease Liability Maturities
Maturities of operating and finance lease liabilities as of June 28, 2026 were as follows:
(in millions of U.S. Dollars)Successor
Fiscal Year EndingOperating LeasesFinance LeasesTotal
June 27, 2027$19.2 $0.4 $19.6 
June 25, 202818.1 0.3 18.4 
June 24, 202917.3 0.3 17.6 
June 30, 203016.0 0.2 16.2 
June 29, 203115.5 0.3 15.8 
Thereafter115.1 13.3 128.4 
Total lease payments201.2 14.8 216.0 
Future tenant improvement allowances— — — 
Imputed lease interest(94.6)(12.7)(107.3)
Total lease liabilities$106.6 $2.1 $108.7 
Supplemental Disclosures
Successor
Operating LeasesFinance Leases
Weighted average remaining lease term (in months) (1)
142452
Weighted average discount rate (2)
11.77 %13.84 %
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 19 months.
(2) Weighted average discount rate of finance leases without the 49-year ground lease is 10.18%.

Lease Impairment

For the fiscal year ended June 29, 2025, the Company recorded $4.8 million of non-cash impairment charges for the abandonment of ROU assets as a result of the ongoing factory consolidation and optimization initiatives. The impairment of the ROU assets is included in "restructuring and other expenses" within the accompanying consolidated statement of operations. Refer to Note 18 - "Restructuring" for additional details.
Leases Leases
The Company primarily leases manufacturing and office spaces and bulk gas equipment. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that are volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. For details on the Company's lease policies, see the significant accounting policy disclosures in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies."
The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's silicon carbide device fabrication facility in New York.
Balance Sheet
Lease assets and liabilities and the corresponding balance sheet classifications are as follows:
(in millions of U.S. Dollars)SuccessorPredecessor
Operating Leases:June 28, 2026June 29, 2025
Right-of-use assets (1)
$96.8 $123.1 
Current lease liability (2)
7.4 9.9 
Non-current lease liability (3)
99.2 139.5 
Total operating lease liabilities$106.6 $149.4 
Finance Leases:
Finance lease assets (4)
$2.1 $8.3 
Current portion of finance lease liabilities0.2 0.5 
Finance lease liabilities, less current portion1.9 8.4 
Total finance lease liabilities$2.1 $8.9 
(1) Within other assets on the consolidated balance sheets.
(2) Within other current liabilities on the consolidated balance sheets.
(3) Within other long-term liabilities on the consolidated balance sheets.
(4) Within property and equipment, net on the consolidated balance sheets.
Statement of Operations
SuccessorPredecessor
(in millions of U.S. Dollars)Period from September 30, 2025 to June 28, 2026Period from June 30, 2025 to September 29, 2025Fiscal Year Ended June 29, 2025Fiscal Year Ended June 30, 2024
Operating lease expense$15.0 $4.3 $16.7 $13.9 
Finance lease amortization0.3 0.2 0.8 0.8 
Interest expense for finance leases was immaterial for all periods presented.
Cash Flows
Cash flow information consisted of the following (1):
SuccessorPredecessor
(in millions of U.S. Dollars)Period from September 30, 2025 to June 28, 2026Period from June 30, 2025 to September 29, 2025Fiscal Year Ended June 29, 2025Fiscal Year Ended June 30, 2024
Cash (used in) provided by operating activities:
Cash paid for operating leases($15.6)($4.1)($15.5)($12.6)
Cash received for tenant allowance on operating leases— — 1.8 0.4 
Cash paid for interest portion of financing leases(0.2)(0.1)(0.2)(0.3)
Cash used in financing activities:
Cash paid for principal portion of finance leases(0.4)(0.1)(0.5)(0.4)
(1) See "Statements of Cash Flows - non-cash activities" in Note 2, "Basis of Presentation and Summary of Significant Accounting Policies," for non-cash activities related to leases.
Lease Liability Maturities
Maturities of operating and finance lease liabilities as of June 28, 2026 were as follows:
(in millions of U.S. Dollars)Successor
Fiscal Year EndingOperating LeasesFinance LeasesTotal
June 27, 2027$19.2 $0.4 $19.6 
June 25, 202818.1 0.3 18.4 
June 24, 202917.3 0.3 17.6 
June 30, 203016.0 0.2 16.2 
June 29, 203115.5 0.3 15.8 
Thereafter115.1 13.3 128.4 
Total lease payments201.2 14.8 216.0 
Future tenant improvement allowances— — — 
Imputed lease interest(94.6)(12.7)(107.3)
Total lease liabilities$106.6 $2.1 $108.7 
Supplemental Disclosures
Successor
Operating LeasesFinance Leases
Weighted average remaining lease term (in months) (1)
142452
Weighted average discount rate (2)
11.77 %13.84 %
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 19 months.
(2) Weighted average discount rate of finance leases without the 49-year ground lease is 10.18%.

Lease Impairment

For the fiscal year ended June 29, 2025, the Company recorded $4.8 million of non-cash impairment charges for the abandonment of ROU assets as a result of the ongoing factory consolidation and optimization initiatives. The impairment of the ROU assets is included in "restructuring and other expenses" within the accompanying consolidated statement of operations. Refer to Note 18 - "Restructuring" for additional details.