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Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Dec. 25, 2011	Jan. 30, 2012
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 25, 2011
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Trading Symbol	lrcx
Entity Registrant Name	LAM RESEARCH CORP
Entity Central Index Key	0000707549
Current Fiscal Year End Date	--06-24
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		119,883,889

Consolidated Balance Sheets - USD ($)
$ in Thousands

Dec. 25, 2011

Jun. 26, 2011

^[1]

ASSETS

Cash and cash equivalents

$ 1,506,928

$ 1,492,132

Short-term investments

712,856

630,115

Accounts receivable, less allowance for doubtful accounts of $4,690 as of December 25, 2011 and $4,720 as of June 26, 2011

462,243

590,568

Inventories

373,130

396,607

Deferred income taxes

78,479

78,435

Prepaid expenses and other current assets

79,215

85,408

Total current assets

3,212,851

3,273,265

Property and equipment, net

272,409

270,458

Restricted cash and investments

165,217

165,256

Deferred income taxes

4,184

3,892

Goodwill

169,182

Intangible assets, net

38,386

47,434

Other assets

115,918

124,380

Total assets

3,978,147

4,053,867

LIABILITIES AND STOCKHOLDERS' EQUITY

Trade accounts payable

108,118

163,541

Accrued expenses and other current liabilities

365,405

358,756

Deferred profit

117,265

153,680

Current portion of long-term debt, convertible notes, and capital leases

2,817

4,782

Total current liabilities

593,605

680,759

Long-term debt, convertible notes, and capital leases

749,078

738,488

Income taxes payable

115,616

113,582

Other long-term liabilities

57,104

51,193

Total liabilities

1,515,403

1,584,022

Commitments and contingencies

Stockholders' equity:

Preferred stock, at par value of $0.001 per share; authorized - 5,000 shares; none outstanding

Common stock, at par value of $0.001 per share; authorized - 400,000 shares; issued and outstanding - 119,540 shares as of December 25, 2011 and 123,579 shares as of June 26, 2011

120

124

Additional paid-in capital

1,651,015

1,531,465

Treasury stock, at cost; 45,728 shares as of December 25, 2011 and 40,995 shares as of June 26, 2011

(1,950,397)

(1,761,591)

Accumulated other comprehensive income (loss)

(33,130)

9,761

Retained earnings

2,795,136

2,690,086

Total stockholders' equity

2,462,744

2,469,845

Total liabilities and stockholders' equity

$ 3,978,147

$ 4,053,867

[1]	Derived from audited financial statements

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 25, 2011	Jun. 26, 2011
Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 4,690	$ 4,720
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	400,000	400,000
Common stock, shares issued	119,540	123,579
Common stock, shares outstanding	119,540	123,579
Treasury stock, shares	45,728	40,995

Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 25, 2011	Dec. 26, 2010	Dec. 25, 2011	Dec. 26, 2010
Condensed Consolidated Statements Of Operations [Abstract]
Revenue	$ 583,981	$ 870,714	$ 1,264,417	$ 1,676,588
Cost of goods sold	350,014	463,281	746,567	891,829
Cost of goods sold - restructuring and impairments	(859)		(859)
Total costs of goods sold	349,155	463,281	745,708	891,829
Gross margin	234,826	407,433	518,709	784,759
Research and development	104,024	90,477	206,583	176,830
Selling, general and administrative	83,256	75,852	163,456	147,994
Restructuring and impairments			1,725	(5,163)
Total operating expenses	187,280	166,329	371,764	319,661
Operating income	47,546	241,104	146,945	465,098
Other income (expense), net	(7,785)	1,038	(19,858)	59
Income before income taxes	39,761	242,142	127,087	465,157
Income tax expense	6,549	20,286	22,037	49,577
Net income	$ 33,212	$ 221,856	$ 105,050	$ 415,580
Net income per share:
Basic net income per share	$ 0.28	$ 1.80	$ 0.87	$ 3.37
Diluted net income per share	$ 0.27	$ 1.78	$ 0.86	$ 3.32
Number of shares used in per share calculations:
Basic	119,739	123,101	121,435	123,384
Diluted	120,873	124,786	122,382	124,999

Condensed Consolidated Statements Of Cash Flows - USD ($)
$ in Thousands

6 Months Ended

Dec. 25, 2011

Dec. 26, 2010

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$ 105,050

$ 415,580

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

43,732

36,611

Deferred income taxes

(633)

(3,822)

Restructuring and impairment charges

866

(5,163)

Impairment of investment

1,724

Equity-based compensation expense

35,968

25,768

Income tax benefit on equity-based compensation plans

1,129

4,165

Excess tax benefit on equity-based compensation plans

(2,155)

(3,228)

Amortization of convertible note discount

13,264

Loss on equity method investment

202

Other, net

2,304

(3,564)

Changes in operating assets and liabilities

54,465

(25,020)

Net cash provided by operating activities

255,916

441,327

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures and intangible assets

(42,414)

(57,155)

Purchases of available-for-sale securities

(234,576)

(80,916)

Sales and maturities of available-for-sale securities

145,123

55,250

Purchase of equity method investment

(10,740)

Receipt of loan payments

8,375

Proceeds from sale of assets

2,677

1,544

Transfer of restricted cash and investments

(10)

Net cash used for investing activities

(131,535)

(81,287)

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal payments on long-term debt and capital lease obligations

(3,140)

(3,411)

Excess tax benefit on equity-based compensation plans

2,155

3,228

Net cash received in settlement (paid in advance for) stock repurchase contracts

(23,995)

(50,000)

Treasury stock purchases

(92,695)

(148,946)

Reissuances of treasury stock related to employee stock purchase plan

8,858

7,155

Proceeds from issuance of common stock

1,475

4,242

Net cash used for financing activities

(107,342)

(187,732)

Effect of exchange rate changes on cash

(2,243)

10,985

Net increase (decrease) in cash and cash equivalents

14,796

183,293

Cash and cash equivalents at beginning of period

1,492,132

^[1]

545,767

Cash and cash equivalents at end of period

$ 1,506,928

$ 729,060

[1]	Derived from audited financial statements

Basis Of Presentation	6 Months Ended
Basis Of Presentation	Dec. 25, 2011
Basis Of Presentation [Abstract]
Basis Of Presentation	NOTE 1 — BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of Lam Research Corporation ("Lam Research" or the "Company") for the fiscal year ended June 26, 2011, which are included in the Annual Report on Form 10-K as of and for the year ended June 26, 2011 (the "2011 Form 10-K"). The Company's Forms 10-K, Forms 10-Q and Forms 8-K are available online at the Securities and Exchange Commission website on the Internet. The address of that site is www.sec.gov. The Company also posts its Forms 10-K, Forms 10-Q and Forms 8-K on its corporate website at http://investor.lamresearch.com. The consolidated financial statements include the accounts of Lam Research Corporation and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. We use the equity method to account for equity investments in instances in which we own common stock or similar interests and have the ability to exercise significant influence, but not control, over the investee. The Company's reporting period is a 52/53-week fiscal year. The Company's current fiscal year will end June 24, 2012 and includes 52 weeks. The quarters ended December 25, 2011 (the "December 2011 quarter") and December 26, 2010 (the "December 2010 quarter") each included 13 weeks. Certain amounts presented in the comparative financial statements for prior years have been reclassified to conform to the fiscal year 2012 presentation.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Statement of Position (SOP)
-Publisher AICPA
-Number 94-6
-Paragraph 10
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+ Details

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Dec. 25, 2011
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	NOTE 2 — RECENT ACCOUNTING PRONOUNCEMENTS In June 2011, the Financial Accounting Standards Board ("FASB") issued new authoritative guidance that increases the prominence of items reported in other comprehensive income ("OCI") by eliminating the option to present components of OCI as part of the statement of changes in stockholders' equity. The amendments in this standard require that all non-owner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This guidance does not affect the underlying accounting for components of OCI, but will change the presentation of the Company's financial statements. The Company will adopt this authoritative guidance retrospectively in the first quarter of its fiscal year 2013. In September 2011, the FASB issued revised guidance intended to simplify how an entity tests goodwill for impairment. The amendment will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity no longer will be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2013 and early adoption is permitted. The Company is currently evaluating this accounting standard update and does not expect it to have an impact on its Consolidated Financial Statements.

- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 154
-Paragraph 2, 17, 18
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Accounting Principles Board Opinion (APB)
-Number 28
-Paragraph 23, 24
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

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+ Details

Equity-Based Compensation Plans

6 Months Ended

Dec. 25, 2011

Equity-Based Compensation Plans [Abstract]

Equity-Based Compensation Plans

NOTE 3 — EQUITY-BASED COMPENSATION PLANS

The Company has stock plans that provide for grants of equity-based awards to eligible participants, including stock options and restricted stock units ("RSUs"), of Lam Research common stock ("Common Stock"). An option is a right to purchase the Company's stock at a set price. An RSU award is an agreement to issue shares of the Company's stock at the time of vesting. The Company's options and RSU awards typically vest over a period of two years or less. The Company also has an employee stock purchase plan ("ESPP") that allows employees to purchase its Common Stock at a discount through payroll deductions.

The Company recognized the following equity-based compensation expense and related income tax benefit in the Condensed Consolidated Statements of Operations:


	Three Months Ended				Six Months Ended
	December 25,		December 26,		December 25,		December 26,
	2011		2010		2011		2010
	(in millions)
Equity-based compensation expense	$	18.2	$	12.8	$	36.0	$	25.8
Income tax benefit related to equity-based compensation expense	$	2.1	$	2.2	$	4.8	$	4.3

The estimated fair value of the Company's stock-based awards, less expected forfeitures, is amortized over the awards' vesting term on a straight-line basis.

Stock Options and RSUs

The 2007 Stock Incentive Plan provides for grants of equity-based awards to eligible participants. Additional shares are reserved for issuance under the Company's 1997 Stock Incentive Plan and its 1999 Stock Option Plan pursuant to awards previously granted under those plans (together with the 2007 Stock Incentive Plan, the "Plans"). As of December 25, 2011, there were a total of 2,787,348 shares reserved to cover options and RSUs issued and outstanding under the Plans. As of December 25, 2011, there were an additional 7,910,788 shares reserved and available for future equity-based awards under the 2007 Stock Incentive Plan.

A summary of stock option activity under the Plans as of December 25, 2011 and changes during the six months then ended is presented below:


Options	Shares (in thousands)			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value as of December 25, 2011 (in thousands)
Outstanding at June 26, 2011		310		$	21.50		2.26
Exercised		(64	)	$	22.87
Forfeited or expired		(3	)	$	20.00

Outstanding at December 25, 2011		243		$	21.15		2.03	$	3,838

Exercisable at December 25, 2011		243		$	21.15		2.03	$	3,838

The total intrinsic value of options exercised during the three months ended December 25, 2011 and December 26, 2010 was $0.9 million and $4.0 million, respectively. The total intrinsic value of options exercised during the six months ended December 25, 2011 and December 26, 2010 was $1.1 million and $4.8 million, respectively.

As of December 25, 2011, all stock options outstanding were fully vested and all related compensation expense has been recognized.

A summary of the Company's RSUs as of December 25, 2011 and changes during the six months then ended is presented below:


Unvested Restricted Stock Units	Shares (in thousands)			Average Grant- Date Fair Value
Unvested at June 26, 2011		2,331		$	39.90
Granted		887		$	39.60
Vested		(630	)	$	42.82
Forfeited		(44	)	$	39.18

Unvested at December 25, 2011		2,544		$	41.66

The fair value of the Company's RSUs was calculated based upon the fair market value of the Company's stock at the date of grant. As of December 25, 2011, there was $60.3 million of total unrecognized compensation expense related to unvested RSUs granted; that expense is expected to be recognized over a weighted average remaining period of 1.3 years.

ESPP

The 1999 Employee Stock Purchase Plan (as amended and restated, the "1999 ESPP") allows employees to designate a portion of their base compensation to be withheld through payroll deductions and used to purchase the Company's Common Stock at a purchase price per share equal to the lower of 85% of the fair market value of the Company's Common Stock on the first or last day of the applicable purchase period. Each offering period generally lasts up to 12 months and includes up to three interim purchase dates. As of December 25, 2011, there were a total of 9,389,557 shares available for issuance under the 1999 ESPP.

Purchase rights under the 1999 ESPP were valued using the Black-Scholes model assuming no expected dividends and the following weighted-average assumptions for the three and six months ended December 25, 2011:


	Three Months Ended December 25, 2011			Six Months Ended December 25, 2011
Expected term (years)		0.68			0.73
Expected stock price volatility		44.45	%		44.37	%
Risk-free interest rate		0.10	%		0.11	%

As of December 25, 2011, there was $6.3 million of unrecognized compensation expense related to the 1999 ESPP, which is expected to be recognized over the next 0.7 years.

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References + Details

Financial Instruments

6 Months Ended

Dec. 25, 2011

Financial Instruments [Abstract]

Financial Instruments

NOTE 4 — FINANCIAL INSTRUMENTS

The Company maintains an investment portfolio of various holdings, types, and maturities. The Company's mutual funds, which are correlated to the Company's obligations under the deferred compensation plan, are classified as trading securities. Investments classified as trading securities are recorded at fair value based upon quoted market prices. Differences between the cost and fair value of trading securities are recognized as "Other income (expense)" in the Consolidated Statements of Operations. All of the Company's other short-term investments are classified as available-for-sale and consequently are recorded in the Consolidated Balance Sheets at fair value with unrealized gains or losses reported as a separate component of accumulated other comprehensive income (loss), net of tax.

Fair Value

The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability.

A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value. The level of an asset or liability in the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:

Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities with sufficient volume and frequency of transactions.

Level 2: Valuations based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or model-derived valuations techniques for which all significant inputs are observable in the market or can be corroborated by, observable market data for substantially the full term of the assets or liabilities.

Level 3: Valuations based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities and based on non-binding, broker-provided price quotes and may not have been corroborated by observable market data.

The following table sets forth the Company's financial assets and liabilities measured at fair value on a recurring basis:


			Fair Value Measurement at December 25, 2011
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets
Short-Term Investments
Money Market Funds	$	1,364,760	$	1,364,760	$	—	$	—
Municipal Notes and Bonds		400,290		—		400,290		—
US Treasury and Agencies		6,064		6,064		—		—
Government-Sponsored Enterprises		37,851		—		37,851		—
Foreign Government Bonds		1,002		—		1,002		—
Corporate Notes and Bonds		378,264		164,885		213,379		—
Mortgage Backed Securities – Residential		1,343		—		1,343		—
Mortgage Backed Securities – Commercial		53,684		—		53,684		—

Total Short-Term Investments	$	2,243,258	$	1,535,709	$	707,549	$	—
Equities		7,945		7,945		—		—
Mutual Funds		18,164		18,164		—		—
Derivatives Assets		1,002		—		1,002		—

Total	$	2,270,369	$	1,561,818	$	708,551	$	—

Liabilities
Derivative Liabilities	$	5,785	$	—	$	5,785	$	—

The amounts in the table above are reported in the Consolidated Balance Sheet as of December 25, 2011 as follows:


Reported As:	Total		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
Cash Equivalents	$	1,365,517	$	1,364,760	$	757	$	—
Short-Term Investments		712,856		6,064		706,792		—
Restricted Cash and Investments		164,885		164,885		—		—
Prepaid Expenses and Other Current Assets		26,109		26,109		—		—
Other Assets		1,002		—		1,002		—

Total	$	2,270,369	$	1,561,818	$	708,551	$	—

Accrued Expenses and Other Current Liabilities	$	5,785	$	—	$	5,785	$	—

The following table sets forth the Company's financial assets and liabilities measured at fair value on a recurring basis:


			Fair Value Measurement at June 26, 2011
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets
Short-Term Investments
Money Market Funds	$	1,300,098	$	1,300,098	$	—	$	—
Municipal Notes and Bonds		321,339		—		321,339		—
US Treasury and Agencies		8,496		8,496		—		—
Government-Sponsored Enterprises		19,868		—		19,868		—
Foreign Government Bond		1,005		—		1,005		—
Corporate Notes and Bonds		382,432		164,885		217,547		—
Mortgage Backed Securities – Residential		2,633		—		2,633		—
Mortgage Backed Securities – Commercial		60,729		—		60,729		—

Total Short-Term Investments	$	2,096,600	$	1,473,479	$	623,121	$	—
Equities		7,443		7,443		—		—
Mutual Funds		19,467		19,467		—		—
Derivatives Assets		1,994		—		1,994		—

Total	$	2,125,504	$	1,500,389	$	625,115	$	—

Liabilities
Derivative Liabilities	$	1,924	$	—	$	1,924	$	—

The amounts in the table above are reported in the Consolidated Balance Sheet as of June 26, 2011 as follows:


Reported As:	Total		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
Cash Equivalents	$	1,301,600	$	1,300,098	$	1,502	$	—
Short-Term Investments		630,115		8,496		621,619		—
Restricted Cash and Investments		164,885		164,885		—		—
Prepaid Expenses and Other Current Assets		26,910		26,910		—		—
Other Assets		1,994		—		1,994		—

Total	$	2,125,504	$	1,500,389	$	625,115	$	—

Accrued Expenses and Other Current Liabilities	$	1,924	$	—	$	1,924	$	—

The Company's primary financial instruments include its cash, cash equivalents, short-term investments, restricted cash and investments, long-term investments, accounts receivable, accounts payable, long-term debt and capital leases, and foreign currency related derivatives. The estimated fair value of cash, accounts receivable and accounts payable approximates their carrying value due to the short period of time to their maturities. The estimated fair values of long-term debt, excluding convertible notes, and capital lease obligations approximate their carrying value as the substantial majority of these obligations have interest rates that adjust to market rates on a periodic basis. Refer to Note 13 of the Notes to the Condensed Consolidated Financial Statements for additional information regarding the fair value of the Company's convertible notes.

Investments

The following tables summarize the Company's investments (in thousands):


	December 25, 2011									June 26, 2011
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cost		Unrealized Gain		Unrealized (Loss)			Fair Value
Cash	$	141,743	$	—	$	—		$	141,743	$	190,903	$	—	$	—		$	190,903
Fixed Income Money Market Funds		1,364,760		—		—			1,364,760		1,300,098		—		—			1,300,098
Municipal Notes and Bonds		398,723		1,591		(24	)		400,290		319,913		1,510		(84	)		321,339
US Treasury and Agencies		6,036		28		—			6,064		8,462		34		—			8,496
Government-Sponsored Enterprises		37,846		39		(34	)		37,851		19,864		6		(2	)		19,868
Foreign Government Bonds		1,002		—		—			1,002		1,004		1		—			1,005
Corporate Notes and Bonds		378,021		827		(584	)		378,264		380,992		1,498		(58	)		382,432
Mortgage Backed Securities – Residential		1,257		86		—			1,343		2,521		144		(32	)		2,633
Mortgage Backed Securities – Commercial		53,598		348		(262	)		53,684		60,639		277		(187	)		60,729

Total Cash and Short- Term Investments	$	2,382,986	$	2,919	$	(904	)	$	2,385,001	$	2,284,396	$	3,470	$	(363	)	$	2,287,503

Publicly Traded Equity Securities	$	9,320	$	—	$	(1,375	)	$	7,945	$	9,320	$	—	$	(1,877	)	$	7,443
Mutual Funds		18,051		277		(164	)		18,164		17,975		1,492		—			19,467

Total Financial Instruments	$	2,410,357	$	3,196	$	(2,443	)	$	2,411,110	$	2,311,691	$	4,962	$	(2,240	)	$	2,314,413

As Reported
Cash and Cash Equivalents	$	1,506,927	$	1	$	—		$	1,506,928	$	1,492,132	$	—	$	—		$	1,492,132
Short-Term Investments		710,842		2,918		(904	)		712,856		627,008		3,470		(363	)		630,115
Restricted Cash and Investments		165,217		—		—			165,217		165,256		—		—			165,256
Other assets		27,371		277		(1,539	)		26,109		27,295		1,492		(1,877	)		26,910

Total	$	2,410,357	$	3,196	$	(2,443	)	$	2,411,110	$	2,311,691	$	4,962	$	(2,240	)	$	2,314,413

The Company accounts for its investment portfolio at fair value. Realized gains (losses) for investment sales and pay-downs are specifically identified. Management assesses the fair value of investments in debt securities that are not actively traded through consideration of interest rates and their impact on the present value of the cash flows to be received from the investments. The Company also considers whether changes in the credit ratings of the issuer could impact the assessment of fair value. The Company recognized a $1.7 million other-than-temporary impairment of a strategic private equity investment during the six months ended December 25, 2011. The Company did not recognize any losses on investments due to other-than-temporary impairments during the three months ended December 25, 2011 or the three or six months ended December 26, 2010. Additionally, gross realized gains and losses from sales of investments were both less than $0.4 million during the three and six months ended December 25, 2011 and December 26, 2010.

The following is an analysis of the Company's fixed income securities in unrealized loss positions (in thousands):


	December 25, 2011
	Unrealized Losses					Unrealized Losses
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
Short-Term Investments
Municipal Notes and Bonds	$	26,581	$	(24	)	$	—	$	—		$	26,581	$	(24	)
Government-Sponsored Enterprises		19,449		(34	)		—		—			19,449		(34	)
Corporate Notes and Bonds		86,980		(584	)				—			86,980		(584	)
Mortgage Backed Securities - Commercial		25,307		(216	)		966		(46	)		26,273		(262	)

Total Short-Term Investments	$	158,317	$	(858	)	$	966	$	(46	)	$	159,283	$	(904	)

The amortized cost and fair value of cash equivalents, short-term investments, and restricted cash and investments with contractual maturities are as follows:


	December 25, 2011				June 26, 2011
	Cost		Estimated Fair Value		Cost		Estimated Fair Value
	(in thousands)
Due in less than one year	$	1,726,678	$	1,727,063	$	1,606,390	$	1,606,925
Due in more than one year		514,565		516,195		487,103		489,675

	$	2,241,243	$	2,243,258	$	2,093,493	$	2,096,600

Management has the ability, if necessary, to liquidate any of its cash equivalents and short-term investments in order to meet the Company's liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than one year from the date of purchase nonetheless are classified as short-term on the accompanying Consolidated Balance Sheets.

Derivative Instruments and Hedging

The Company carries derivative financial instruments ("derivatives") on its Consolidated Balance Sheets at their fair values. The Company enters into foreign exchange forward contracts with financial institutions with the primary objective of reducing volatility of earnings and cash flows related to foreign currency exchange rate fluctuations. The counterparties to these foreign exchange forward contracts are large international financial institutions that the Company believes are creditworthy, and therefore, we do not consider the risk of counterparty nonperformance to be material.

Cash Flow Hedges

In the normal course of business, the Company's financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations on non-US dollar transactions or cash flows, primarily from Japanese yen-denominated revenues and Euro-denominated expenses. The Company's policy is to mitigate the foreign exchange risk arising from the fluctuations in the value of these non-US dollar denominated transactions or cash flows through a foreign currency cash flow hedging program, using foreign exchange forward contracts that generally expire within 12 months and no later than 24 months. These foreign exchange forward contracts are designated as cash flow hedges and are carried on the Company's balance sheet at fair value with the effective portion of the contracts' gains or losses included in accumulated other comprehensive income (loss) and subsequently recognized in revenue in the same period the hedged revenue is recognized.

At inception and at each quarter end, hedges are tested prospectively and retrospectively for effectiveness using regression analysis. Changes in the fair value of foreign exchange forward contracts due to changes in time value are excluded from the assessment of effectiveness and are recognized in revenue in the current period. The change in time value related to these contracts was not material for all reported periods. To qualify for hedge accounting, the hedge relationship must meet criteria relating both to the derivative instrument and the hedged item. These criteria include identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the hedging instrument's effectiveness in offsetting the exposure to changes in the hedged item's fair value or cash flows will be measured. There were no gains or losses during the three or six months ended December 25, 2011 or December 26, 2010 associated with ineffectiveness or forecasted transactions that failed to occur.

To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and the hedges must be tested to demonstrate an expectation of providing highly effective offsetting changes to future cash flows on hedged transactions. When derivative instruments are designated and qualify as effective cash flow hedges, the Company is able to defer effective changes in the fair value of the hedging instrument within accumulated other comprehensive income (loss) until the hedged exposure is realized. Consequently, with the exception of excluded time value and hedge ineffectiveness recognized, the Company's results of operations are not subject to fluctuation as a result of changes in the fair value of the derivative instruments. If hedges are not highly effective or if the Company does not believe that the underlying hedged forecasted transactions will occur, the Company may not be able to account for its derivative instruments as cash flow hedges. If this were to occur, future changes in the fair values of the Company's derivative instruments would be recognized in earnings. Additionally, related amounts previously recorded in "Other comprehensive income" would be reclassified to income immediately. At December 25, 2011, the Company had losses of $5.7 million accumulated in Other Comprehensive Income, which it expects to reclassify from Other Comprehensive Income into earnings over the next 12 months.

Balance Sheet Hedges

The Company also enters into foreign exchange forward contracts to hedge the effects of foreign currency fluctuations associated with foreign currency denominated monetary assets and liabilities, primarily intercompany receivables and payables. These foreign exchange forward contracts are not designated for hedge accounting treatment. Therefore, the change in fair value of these derivatives is recorded as a component of other income (expense) and offsets the change in fair value of the foreign currency denominated assets and liabilities, recorded in other income (expense).

As of December 25, 2011, the Company had the following outstanding foreign currency forward contracts that were entered into under its cash flow and balance sheet hedge program:


	Derivatives Designated as Hedging Instruments:		Derivatives Not Designated as Hedging Instruments:
	(in thousands)
Foreign Currency Forward Contracts
Sell JPY	$	51,278	$	37,179
Buy CHF		—		236,471
Buy TWD		—		69,394
Buy EUR		78,774		36,395

	$	130,052	$	379,439

The fair value of derivatives instruments in the Company's Condensed Consolidated Balance Sheets as of December 25, 2011 was as follows:


	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location		Fair Value
	(in thousands)
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expense and other assets	$	88		Accrued liabilities	$	(5,236	)
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expense and other assets	$	914		Accrued liabilities	$	(549	)

Total derivatives		$	1,002			$	(5,785	)

The fair value of derivatives instruments in the Company's Condensed Consolidated Balance Sheets as of June 26, 2011 was as follows:


	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location		Fair Value
	(in thousands)
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expense and other assets	$	1,881		Accrued liabilities	$	(1,142	)
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expense and other assets	$	113		Accrued liabilities	$	(782	)

Total derivatives		$	1,994			$	(1,924	)

The effect of derivative instruments designated as cash flow hedges on the Company's Condensed Consolidated Statements of Operations was as follows:


	Three Months Ended December 25, 2011											Six Months Ended December 25, 2011
Derivatives Designated as Hedging Instruments:	Gain (Loss) Recognized (Effective Portion) (1)			Gain (Loss) Recognized (Effective Portion) (2)			Gain (Loss) Recognized (Ineffective Portion) (3)			Gain (Loss) Recognized (Excluded from Effectiveness Testing) (4)		Gain (Loss) Recognized (Effective Portion) (1)			Gain (Loss) Recognized (Effective Portion) (2)			Gain (Loss) Recognized (Ineffective Portion) (3)			Gain (Loss) Recognized (Excluded from Effectiveness Testing) (4)
	(in thousands)
Foreign exchange forward contracts	$	(3,581	)	$	(2,906	)	$	(1	)	$	223	$	(11,793	)	$	(5,512	)	$	(2	)	$	754

	Three Months Ended December 26, 2010											Six Months Ended December 26, 2010
Derivatives Designated as Hedging Instruments:	Gain (Loss) Recognized (Effective Portion) (1)			Gain (Loss) Recognized (Effective Portion) (2)			Gain (Loss) Recognized (Ineffective Portion) (3)			Gain (Loss) Recognized (Excluded from Effectiveness Testing) (4)		Gain (Loss) Recognized (Effective Portion) (1)			Gain (Loss) Recognized (Effective Portion) (2)			Gain (Loss) Recognized (Ineffective Portion) (3)			Gain (Loss) Recognized (Excluded from Effectiveness Testing) (4)
	(in thousands)
Foreign exchange forward contracts	$	317		$	(2,192	)	$	—		$	73	$	(4,777	)	$	(5,802	)	$	—		$	187

(1)	Amount recognized in other comprehensive income (effective portion).

(2)	Amount of gain (loss) reclassified from accumulated other comprehensive income into income (effective portion) located in revenue and operating expenses.

(3)	Amount of gain (loss) recognized in income on derivative (ineffective portion) located in other income (expense), net.

(4)	Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing) located in other income (expense), net.

The effect of derivative instruments not designated as cash flow hedges on the Company's Condensed Consolidated Statement of Operations was as follows:


	Three Months Ended					Six Months Ended
	December 25, 2011			December 26, 2010		December 25, 2011			December 26, 2010
Derivatives Not Designated as Hedging Instruments:	Gain (Loss) Recognized (5)			Gain (Loss) Recognized (5)		Gain (Loss) Recognized (5)			Gain (Loss) Recognized (5)
	(in thousands)
Foreign exchange forward contracts	$	(20,411	)	$	5,798	$	(42,823	)	$	14,177

(5)	Amount of gain (loss) recognized in income located in other income (expense), net.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short term investments, restricted cash and investments, trade accounts receivable, and derivative financial instruments used in hedging activities. Cash is placed on deposit in large international financial institutions. Such deposits may be in excess of insured limits. Management believes that the financial institutions that hold the Company's cash are credit worthy and, accordingly, minimal credit risk exists with respect to these balances.

The Company's available-for-sale securities must have a minimum rating of A2 / A at the time of purchase, as rated by two of the following three rating agencies: Moody's, Standard & Poor's (S&P), or Fitch. To ensure diversification and minimize concentration, the Company's policy limits the amount of credit exposure with any one financial institution or commercial issuer.

The Company is exposed to credit losses in the event of nonperformance by counterparties on the foreign currency forward contracts that are used to mitigate the effect of exchange rate fluctuations and on contracts related to structured share repurchase agreements. These counterparties are large international financial institutions and to date, no such counterparty has failed to meet its financial obligations to the Company.

Credit risk evaluations, including trade references, bank references and Dun & Bradstreet ratings, are performed on all new customers and the Company monitors its customers' financial statements and payment performance. In general, the Company does not require collateral on sales.

Inventories

6 Months Ended

Dec. 25, 2011

Inventories [Abstract]

Inventories

NOTE 5 — INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out method) or market. Shipments to Japanese customers, to whom title does not transfer until customer acceptance, are classified as inventory and carried at cost until title transfers. Inventories consist of the following:


	December 25, 2011		June 26, 2011
	December 25, 2011		June 26, 2011
	(in thousands)
Raw materials	$	221,745	$	212,979
Work-in-process		68,407		69,013
Finished goods		82,978		114,615

	$	373,130	$	396,607

Property And Equipment, Net

6 Months Ended

Dec. 25, 2011

Property And Equipment, Net [Abstract]

Property And Equipment, Net

NOTE 6 — PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consists of the following:


	December 25, 2011			June 26, 2011
	December 25, 2011			June 26, 2011
	(in thousands)
Manufacturing, engineering and office equipment	$	366,339		$	345,684
Computer equipment and software		101,191			95,770
Land		14,209			14,758
Buildings		66,524			65,429
Leasehold improvements		60,025			55,833
Furniture and fixtures		15,496			15,258

		623,784			592,732
Less: accumulated depreciation and amortization		(351,375	)		(322,274	)

	$	272,409		$	270,458

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Goodwill And Intangible Assets

6 Months Ended

Dec. 25, 2011

Goodwill And Intangible Assets [Abstract]

Goodwill And Intangible Assets

NOTE 7 — GOODWILL AND INTANGIBLE ASSETS

Goodwill

The balance of goodwill was $169.2 million as of December 25, 2011 and June 26, 2011. Goodwill attributable to the SEZ acquisition of $104.2 million is not tax deductible due to applicable foreign law. The remaining goodwill balance of $65.0 million is tax deductible.

Intangible Assets

The following table provides details of the Company's intangible assets subject to amortization as of December 25, 2011 (in thousands, except years):


	Gross		Accumulated Amortization			Net		Weighted- Average Useful Life (years)
Customer relationships	$	35,226	$	(25,946	)	$	9,280		6.90
Existing technology		61,941		(39,617	)		22,324		6.68
Patents		20,670		(15,891	)		4,779		6.11
Other intangible assets		35,216		(33,213	)		2,003		4.10

	$	153,053	$	(114,667	)	$	38,386		6.06

The following table provides details of the Company's intangible assets subject to amortization as of June 26, 2011 (in thousands, except years):


	Gross		Accumulated Amortization			Net		Weighted- Average Useful Life (years)
Customer relationships	$	35,226	$	(23,468	)	$	11,758		6.90
Existing technology		61,941		(35,409	)		26,532		6.68
Patents		20,670		(14,323	)		6,347		6.11
Other intangible assets		35,216		(32,419	)		2,797		4.10

	$	153,053	$	(105,619	)	$	47,434		6.06

The Company recognized $4.5 million and $6.0 million in intangible asset amortization expense during the three months ended December 25, 2011 and December 26, 2010, respectively. The Company recognized $9.0 million and $12.0 million in intangible asset amortization expense during the six months ended December 25, 2011 and December 26, 2010, respectively.

The estimated future amortization expense of purchased intangible assets as of December 25, 2011 is as follows (in thousands):


Fiscal Year	Amount
2012 (6 months)	$	8,968
2013		16,350
2014		10,377
2015		2,154
2016		381
Thereafter		156

	$	38,386

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Accrued Expenses And Other Current Liabilities

6 Months Ended

Dec. 25, 2011

Accrued Expenses And Other Current Liabilities [Abstract]

Accrued Expenses And Other Current Liabilities

NOTE 8 — ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following:


	December 25, 2011		June 26, 2011
	December 25, 2011		June 26, 2011
	(in thousands)
Accrued compensation	$	212,678	$	206,313
Warranty reserves		32,734		40,951
Income and other taxes payable		48,932		51,183
Other		71,061		60,309

	$	365,405	$	358,756

Other Income (Expense), Net

6 Months Ended

Dec. 25, 2011

Other Income (Expense), Net [Abstract]

Other Income (Expense), Net

NOTE 9 — OTHER INCOME (EXPENSE), NET

The significant components of other income (expense), net, are as follows:


	Three Months Ended						Six Months Ended
	December 25, 2011			December 26, 2010			December 25, 2011			December 26, 2010
	December 25, 2011			December 26, 2010			December 25, 2011			December 26, 2010
	(in thousands)
Interest income	$	2,472		$	2,635		$	5,061		$	5,046
Interest expense		(9,346	)		(110	)		(18,606	)		(211	)
Gains (losses) on mutual funds		(348	)		1,913			(2,213	)		2,578
Foreign exchange gains (losses)		(142	)		(3,108	)		(1,232	)		(6,287	)
Other, net		(421	)		(292	)		(2,868	)		(1,067	)

	$	(7,785	)	$	1,038		$	(19,858	)	$	59

Income Tax Expense

6 Months Ended

Dec. 25, 2011

Income Tax Expense [Abstract]

Income Tax Expense

NOTE 10 — INCOME TAX EXPENSE

The Company's effective tax rate for the three and six months ended December 25, 2011 was approximately 16.5% and 17.3%, respectively.

The differences between the U.S. federal statutory tax rate of 35% and the Company's effective tax rates for the three and six months ended December 25, 2011 were primarily due to the geographic mix of income and research and development tax credits partially offset by the tax effect of non-deductible stock-based compensation. The effective tax rates recorded during the three and six months ended December 25, 2011 included the tax impact of discrete items, which were recorded during the quarter in which they occurred. During the three and six months ended December 25, 2011, discrete items primarily consisted of: (1) a tax expense of $2.2 million and $3.8 million, respectively, related to the filing of prior year foreign tax returns, which resulted in provision to return true-ups, (2) a tax expense of $0.8 million and $1.7 million, respectively, of interest related to uncertain tax positions, (3) a tax benefit of $2.5 million and $3.7 million, respectively, related to the acquisition, restructuring and asset impairment related expenses, and (4) a tax benefit of $6.9 million and $7.1 million , respectively, related to the recognition of previously unrecognized tax benefits and the reversal of the related interest accruals due to finalization of certain foreign uncertain tax positions. The total gross unrecognized tax benefits as of each date noted below were as follows:


	December 25, 2011		June 26, 2011
	December 25, 2011		June 26, 2011
	(in millions)
Total gross unrecognized tax benefits	$	182.0	$	181.5

If the gross unrecognized tax benefits were recognized in a future period, it would result in a net tax benefit of $119.6 million and a reduction of the effective tax rate.

The Company recognizes interest expense and penalties related to the above unrecognized tax benefits within income tax expense. As of December 25, 2011, the Company had accrued approximately $17.1 million for the payment of gross interest and penalties, relating to unrecognized tax benefits, compared to $16.9 million as of June 26, 2011.

The Internal Revenue Service ("IRS") is examining the Company's U.S. income tax return for fiscal years 2008 and 2009. The Company is also under audit by the California Franchise Tax Board ("FTB") for fiscal years 2005 and 2006. As of December 25, 2011, no significant adjustments have been proposed by the IRS or FTB. The Company is unable to make a reasonable estimate as to when cash settlements, if any, with the relevant taxing authorities will occur. In addition, the Company is also subject to audits by foreign tax authorities.

The Company files U.S. federal, U.S. state, and foreign income tax returns. As of December 25, 2011, tax years 2003-2011 remain subject to examination in the jurisdictions where the Company operates.

The Company is in various stages of the examinations in connection with all of its tax audits worldwide and it is difficult to determine when these examinations will be settled. It is reasonably possible that over the next twelve-month period the Company may experience an increase or decrease in its unrecognized tax benefits. It is not possible to determine either the magnitude or the range of any increase or decrease at this time.

Realization of the Company's net deferred tax assets is based upon the weight of available evidence, including such factors as the recent earnings history and expected future taxable income. The Company believes it is more likely than not that such assets will be realized with the exception of $46.2 million related to certain California and foreign deferred tax assets. However, ultimate realization could be negatively impacted by market conditions and other variables not known or anticipated at this time. If the valuation allowance related to deferred tax assets were released as of December 25, 2011, approximately $46.2 million would be credited to the statement of operations.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Net Income Per Share

6 Months Ended

Dec. 25, 2011

Net Income Per Share [Abstract]

Net Income Per Share

NOTE 11 — NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the treasury stock method, for dilutive stock options and RSUs. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share.


	Three Months Ended				Six Months Ended
	December 25, 2011		December 26, 2010		December 25, 2011		December 26, 2010
	(in thousands, except per share data)
Numerator:
Net income	$	33,212	$	221,856	$	105,050	$	415,580

Denominator:
Basic average shares outstanding		119,739		123,101		121,435		123,384
Effect of potential dilutive securities:
Employee stock plans		1,134		1,685		947		1,615

Diluted average shares outstanding		120,873		124,786		122,382		124,999

Net income per share – basic	$	0.28	$	1.80	$	0.87	$	3.37

Net income per share – diluted	$	0.27	$	1.78	$	0.86	$	3.32

For purposes of computing diluted net income per share, weighted-average common shares do not include potentially dilutive securities that are anti-dilutive under the treasury stock method. The following potentially dilutive securities were excluded:

Three Months Ended

Six Months Ended

December 25,
2011

December 26,
2010

December 25,
2011

December 26,
2010

(in thousands)

Number of potential dilutive securities excluded

841

Diluted shares outstanding do not include any effect resulting from warrants, assumed conversion of the Notes, or note hedges (as described in Note 13) as their impact would have been anti-dilutive.

Comprehensive Income

6 Months Ended

Dec. 25, 2011

Comprehensive Income [Abstract]

Comprehensive Income

NOTE 12 — COMPREHENSIVE INCOME

The components of comprehensive income, on an after-tax basis where applicable, are as follows:


	Three Months Ended						Six Months Ended
	December 25,			December 26,			December 25,			December 26,
	2011			2010			2011			2010
	(in thousands)
Net income	$	33,212		$	221,856		$	105,050		$	415,580
Foreign currency translation adjustment		(16,979	)		13,422			(31,889	)		44,095
Unrealized gain (loss) on fair value of derivative financial instruments, net		2,068			4,700			(1,463	)		6,861
Unrealized gain (loss) on financial instruments, net		898			(485	)		39			(562	)
Reclassification adjustment for gain included in earnings		(2,840	)		(2,596	)		(5,209	)		(6,365	)
Postretirement benefit plan adjustment		157			157			(4,369	)		1,152

Comprehensive income	$	16,516		$	237,054		$	62,159		$	460,761

The balance of accumulated other comprehensive loss, on an after-tax basis where applicable, is as follows:


	December 25,			June 26,
	2011			2011
	(in thousands)
Accumulated foreign currency translation adjustment	$	(17,037	)	$	14,852
Accumulated unrealized gain (loss) on derivative financial instruments		(5,700	)		581
Accumulated unrealized gain (loss) on financial instruments		391			744
Postretirement benefit plan adjustment		(10,784	)		(6,416	)

Accumulated other comprehensive income (loss)	$	(33,130	)	$	9,761

- Definition

The entire disclosure for comprehensive income. Includes, but is not limited to, the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14-26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e637-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e681-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e653-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e709-108580

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 55
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6920433&loc=d3e998-108581

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e640-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e716-108580

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e689-108580

+ Details

Long Term Debt

6 Months Ended

Dec. 25, 2011

Long Term Debt [Abstract]

Long Term Debt

NOTE 13 — LONG TERM DEBT

The following table reflects the carrying value of the Company's convertible notes and other long-term debt as of December 25, 2011 and June 26, 2011:


	December 25,			June 26,
	2011			2011
	(in millions)
0.50% Notes due 2016	$	450.0		$	450.0
Less: Unamortized interest discount		(67.4	)		(74.4	)

Net carrying amount of 0.50% Notes 2016		382.6			375.6

1.25% Notes due 2018		450.0			450.0
Less: Unamortized interest discount		(96.9	)		(103.2	)

Net carrying amount of 1.25% Notes 2018		353.1			346.8

Other long-term debt		1.3			3.9

Total long-term debt	$	737.0		$	726.3

Convertible Senior Notes

In May 2011, the Company issued and sold $450 million in aggregate principal amount of 0.5% Convertible Senior Notes due May 2016 (the "2016 Notes") at par. At the same time, the Company issued and sold $450 million in aggregate principal amount of 1.25% Convertible Senior Notes due May 2018 (the "2018 Notes", and collectively with the 2016 Notes the "Notes") at par. The Notes may be converted, under certain circumstances, based on an initial conversion rate of 15.8687 shares of common stock per $1,000 principal amount of notes (which represents an initial conversion price of approximately $63.02 per share of common stock).

The net proceeds to the Company from the sale of the Notes were $835.5 million. The Company pays cash interest at an annual rate of 0.5% and 1.25%, respectively, on the 2016 and 2018 Notes, payable semi-annually on May 15 and November 15 of each year, beginning November 15, 2011.

The Company separately accounts for the liability and equity components of the Notes. The initial debt components of the 2016 and 2018 Notes were valued at $373.8 million and $345.1 million, respectively, based on the present value of the future cash flows using discount rates of 4.29% and 5.27%, respectively, the Company's borrowing rate at the date of the issuance for similar debt instruments without the conversion feature. The carrying value of the equity components of the 2016 and 2018 Notes were $76.2 million and $104.9 million, respectively, as of December 25, 2011. The effective interest rates on the liability components of the 2016 Notes and 2018 Notes for the three months ended December 25, 2011 were 4.29% and 5.27%, respectively. The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the discount on the liability component of the Notes during the three and six months ended December 25, 2011.


	Three Months Ended		Six Months Ended
	December 25,		December 25,
	2011		2011
	(in millions)
Contractual interest coupon	$	2.0	$	4.0
Amortization of interest discount		6.6		13.2

Total interest cost recognized	$	8.6	$	17.2

The remaining bond discount of the 2016 Notes of $67.4 million as of December 25, 2011 will be amortized over their remaining life, which is approximately 4.4 years. The remaining bond discount of the 2018 Notes of $96.9 million as of December 25, 2011 will be amortized over their remaining life, which is approximately 6.4 years.

The 2016 Notes may be converted at any time prior to the close of business on the business day immediately preceding February 15, 2016, at the option of the holder, only under the following circumstances: 1) during the five business-day period after any ten consecutive trading-day period (the "measurement period") in which the trading price per $1,000 principal amount of 2016 notes for each day of such measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the applicable conversion rate on each such trading day; 2) during any fiscal quarter commencing after the fiscal quarter ending September 25, 2011, if the last reported sale price of the Company's common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price in effect on the last trading day of the immediately preceding fiscal quarter; or 3) upon the occurrence of specified corporate events. On and after February 15, 2016 until the close of business on the second scheduled trading day immediately preceding the maturity date of May 15, 2016, holders may convert their notes at any time, regardless of the foregoing circumstances.

Upon conversion, a holder will receive the conversion value of the 2016 Notes to be converted equal to the conversion rate multiplied by the volume weighted average price of the Company's common stock during a specified period following the conversion date. The conversion value of each 2016 Note will be paid in: 1) cash equal to the principal amount of the note and 2) to the extent the conversion value exceeds the principal amount of the note, common stock (plus cash in lieu of any fractional shares of common stock). The conversion price will be subject to adjustment in some events but will not be adjusted for accrued interest. Upon a "fundamental change" at any time, as defined, the Company will in some cases increase the conversion rate for a holder who elects to convert its 2016 Notes in connection with such fundamental change. In addition, the holders may require the Company to repurchase for cash all or a portion of their notes upon a "designated event" at a price equal to 100% of the principal amount of the notes being repurchased plus accrued and unpaid interest, if any.

Concurrently with the issuance of the 2016 Notes, the Company purchased a convertible note hedge and sold warrants. The separate convertible note hedge and warrant transactions are collectively structured to reduce the potential future economic dilution associated with the conversion of the 2016 Notes and to increase the effective initial conversion price to $71.34 per share. Each of these components is discussed separately below:

Convertible Note Hedge. Counterparties agreed to sell to the Company up to approximately 7.1 million shares of the Company's common stock, which is the number of shares initially issuable upon conversion of the 2016 Notes in full, at a price of $63.02 per share. The convertible note hedge transaction will be settled in net shares and will terminate upon the earlier of the maturity date of the 2016 Notes or the first day none of the 2016 Notes remains outstanding due to conversion or otherwise. Settlement of the convertible note hedge in net shares, based on the number of shares issued upon conversion of the 2016 Notes, on the expiration date would result in the Company receiving net shares equivalent to the number of shares issuable by the Company upon conversion of the 2016 Notes. Should there be an early unwind of the convertible note hedge transaction, the number of net shares potentially received by the Company will depend upon 1) the then existing overall market conditions, 2) the Company's stock price, 3) the volatility of the Company's stock, and 4) the amount of time remaining before expiration of the convertible note hedge. The convertible note hedge transaction cost of $76.2 million has been accounted for as an equity transaction. The Company initially recorded approximately $28.2 million in stockholders' equity from the net deferred tax liability related to the convertible note hedge at inception of the transaction.

Sold Warrants. The Company received $57.6 million from the same counterparties from the sale of warrants to purchase up to approximately 7.1 million shares of the Company's common stock at an exercise price of $71.34 per share. The warrants expire on a series of dates between August 15, 2016 and October 21, 2016. At expiration, the Company may, at its option, elect to settle the warrants on a net share basis. As of December 25, 2011, the warrants had not been exercised and remained outstanding. The value of the warrants was initially recorded in equity and continues to be classified as equity.

The 2018 Notes may be converted at any time prior to the close of business on the business day immediately preceding February 15, 2018, at the option of the holder only under the following circumstances: 1) during the five business-day period after any ten consecutive trading-day period (the "measurement period") in which the trading price per 1,000 principal amount of 2018 notes for each day of such measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the applicable conversion rate on each such trading day; 2) during any fiscal quarter commencing after the fiscal quarter ending September 25, 2011, if the last reported sale price of the Company's common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price in effect on the last trading day of the immediately preceding fiscal quarter; or 3) upon the occurrence of specified corporate events. On and after February 15, 2018 until the close of business on the second scheduled trading day immediately preceding the maturity date of May 15, 2018, holders may convert their notes at any time, regardless of the foregoing circumstances.

Upon conversion, a holder will receive the conversion value of the 2018 Notes to be converted equal to the conversion rate multiplied by the volume weighted average price of the Company's common stock during a specified period following the conversion date. The conversion value of each 2018 Notes will be paid in: 1) cash equal to the principal amount of the note, and 2) to the extent the conversion value exceeds the principal amount of the note, common stock (plus cash in lieu of any fractional shares of common stock). The conversion price will be subject to adjustment in some events but will not be adjusted for accrued interest. Upon a "fundamental change" at any time, as defined, the Company will in some cases increase the conversion rate for a holder who elects to convert its 2018 Notes in connection with such fundamental change. In addition, the holders may require the Company to repurchase for cash all or a portion of their notes upon a "designated event" at a price equal to 100% of the principal amount of the notes being repurchased plus accrued and unpaid interest, if any.

Concurrently with the issuance of the 2018 Notes, the Company purchased a convertible note hedge and sold warrants. The separate convertible note hedge and warrant transactions are collectively structured to reduce the potential future economic dilution associated with the conversion of the 2018 Notes and to increase the effective initial conversion price to $76.10 per share. Each of these components is discussed separately below:

Convertible Note Hedge. Counterparties agreed to sell to the Company up to approximately 7.1 million shares of the Company's common stock, which is the number of shares initially issuable upon conversion of the 2018 Notes in full, at a price of $63.02 per share. The convertible note hedge transaction will be settled in net shares and will terminate upon the earlier of the maturity date of the 2018 Notes or the first day none of the 2018 Notes remains outstanding due to conversion or otherwise. Settlement of the convertible note hedge in net shares, based on the number of shares issued upon conversion of the 2018 Notes, on the expiration date would result in the Company receiving net shares equivalent to the number of shares issuable by the Company upon conversion of the 2018 Notes. Should there be an early unwind of the convertible note hedge transaction, the number of net shares potentially received by the Company will depend upon 1) the then existing overall market conditions, 2) the Company's stock price, 3) the volatility of the Company's stock, and 4) the amount of time remaining before expiration of the convertible note hedge. The convertible note hedge transaction cost of $104.9 million has been accounted for as an equity transaction. The Company initially recorded approximately $38.8 million in stockholders' equity from the net deferred tax liability related to the convertible note hedge at inception of the transaction.

Sold Warrants . The Company received $76.3 million from the same counterparties from the sale of warrants to purchase up to approximately 7.1 million shares of the Company's common stock at an exercise price of $76.10 per share. The warrants expire on a series of dates between August 15, 2018 and October 23, 2018. At expiration, the Company may, at its option, elect to settle the warrants on a net share basis. As of December 25, 2011, the warrants had not been exercised and remained outstanding. The value of the warrants was initially recorded in equity and continues to be classified as equity.

Fair Value of Notes

As of December 25, 2011, the face values of the 2016 Notes and 2018 Notes were $450.0 million and $450.0 million, respectively. As of December 25, 2011, the fair values of the 2016 Notes and 2018 Notes, which includes the debt and equity components, were approximately $423.8 million and $426.8 million, respectively, based on quoted market prices.

Other Long-term Debt

The Company's remaining total long-term debt, excluding convertible notes, of $1.3 million as of December 25, 2011 consists of various bank loans and government subsidized technology loans supporting operating needs.

Contractual Obligations

The Company's contractual cash obligations relating to its convertible notes and other long-term debt December 25, 2011 were as follows:


	Long-term Debt
	(in thousands)
Payments due by period:
One year	$	1,342
Two years		—
Three years		—
Four years		—
Five years		450,000
Over 5 years		450,000

Total		901,342
Current portion of long-term debt		1,342

Long-term debt	$	900,000

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Commitments

6 Months Ended

Dec. 25, 2011

Commitments [Abstract]

Commitments

NOTE 14 — COMMITMENTS

Capital Leases

Capital leases reflect building and an office equipment leases. The amounts in the table below include the interest portion of payment obligations.

The Company's contractual cash obligations relating to its existing capital leases, including interest, as of December 25, 2011 were as follows:


	Capital Leases
	(in thousands)
Payments due by period:
One year	$	1,755
Two years		1,581
Three years		1,459
Four years		1,468
Five years		9,616
Over 5 years		—

Total		15,879
Less: Interest on capital leases		1,017

Less: Current portion of capital leases		1,472

Capital leases	$	13,390

Operating Leases and Related Guarantees

The Company leases most of its administrative, R&D and manufacturing facilities, regional sales/service offices and certain equipment under non-cancelable operating leases. Certain of the Company's facility leases for buildings located at its Fremont, California headquarters 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.

On December 18, 2007, the Company entered into two operating leases regarding certain improved properties in Livermore, California. These leases were amended on April 3, 2008 and July 9, 2008 (as so amended, the "Livermore Leases"). On December 21, 2007, the Company entered into a series of four amended and restated operating leases (the "New Fremont Leases," and collectively with the Livermore Leases, the "Operating Leases") with regard to certain improved properties at the Company's headquarters in Fremont, California.

The Operating Leases have a term of approximately seven years ending on the first business day in January 2015. The Company may, at its discretion and with 30 days' notice, elect to purchase the property that is the subject of the Operating Lease for an amount approximating the sum required to pay the amount of the lessor's investment in the property and any accrued but unpaid rent.

The Company is required, pursuant to the terms of the Operating Leases, to maintain collateral in an aggregate of approximately $164.9 million in separate interest-bearing accounts as security for the Company's obligations under the Operating Leases. This amount is recorded as restricted cash in the Company's Consolidated Balance Sheet as of as of December 25, 2011.

When the terms of the Operating Leases expire, the property subject to that Operating Lease may be remarketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate guarantee made by the Company under the Operating Leases is generally no more than approximately $141.7 million; however, under certain default circumstances, the guarantee with regard to an Operating Lease may be 100% of the lessor's aggregate investment in the applicable property, which in no case will exceed $164.9 million, in the aggregate.

The Company recognized at lease inception $0.6 million in estimated liabilities related to the Operating Leases, which represents the fair value guarantee premium that would be required had the guarantee been issued in a standalone transaction. These liabilities are recorded in other long-term liabilities with the offsetting entry recorded as prepaid rent in other assets. The balances in prepaid rent and the guarantee liability are amortized to the statement of operations on a straight line basis over the life of the leases. If it becomes probable that the Company will be required to make a payment under the residual guarantee, the Company will increase its liability with a corresponding increase to prepaid rent and amortize the increased prepaid rent over the remaining lease term with no corresponding reduction in the liability. As of December 25, 2011, the unamortized portion of the fair value of the residual value guarantees remaining in other long-term liabilities and prepaid rent was $0.2 million.

Other Guarantees

The Company has issued certain indemnifications to its lessors for taxes and general liability under some of its agreements. The Company has entered into certain insurance contracts that may limit its exposure to such indemnifications. As of December 25, 2011, the Company had not recorded any liability on its Consolidated Financial Statements in connection with these indemnifications, as it does not believe, based on information available, that it is probable that any amounts will be paid under these guarantees.

Generally, the Company indemnifies, under pre-determined conditions and limitations, its customers for infringement of third-party intellectual property rights by the Company's products or services. The Company seeks to limit its liability for such indemnity to an amount not to exceed the sales price of the products or services subject to its indemnification obligations. The Company does not believe, based on information available, that it is probable that any material amounts will be paid under these guarantees.

Warranties

The Company provides standard warranties on its systems. The liability amount is based on actual historical warranty spending activity by type of system, customer, and geographic region, modified for any known differences such as the impact of system reliability improvements.

Changes in the Company's product warranty reserves were as follows:


	Three Months Ended						Six Months Ended
	December 25,			December 26,			December 25,			December 26,
	2011			2010			2011			2010
	(in thousands)
Balance at beginning of period	$	36,160		$	35,612		$	40,951		$	31,756
Warranties issued during the period		8,421			14,914			16,353			26,330
Settlements made during the period		(11,925	)		(8,326	)		(23,146	)		(16,020	)
Expirations and change in liability for pre-existing warranties during the period		78			8			(1,424	)		(234	)
Changes in foreign currency exchange rates		—			312			—			688

Balance at end of period	$	32,734		$	42,520		$	32,734		$	42,520

Restructuring And Asset Impairments

6 Months Ended

Dec. 25, 2011

Restructuring And Asset Impairments [Abstract]

Restructuring And Asset Impairments

NOTE 15 — RESTRUCTURING AND ASSET IMPAIRMENTS

Prior to incurring charges under the restructuring plans discussed below, management approved and announced the specific actions to be taken under each plan. Severance packages were communicated to affected employees in sufficient detail that the employees could determine their type and amount of benefit. The termination of the affected employees occurred as soon as practical after the restructuring plans were announced. The amount of remaining future lease payments for facilities the Company ceased to use and included in the restructuring charges is based on management's estimates using known prevailing real estate market conditions at that time based, in part, on the opinions of independent real estate experts. Leasehold improvements relating to the vacated buildings were written off, as these items will have no future economic benefit to the Company and have been abandoned.

Accounting for restructuring activities, as compared to regular operating cost management activities, requires an evaluation of formally committed and approved plans. Restructuring activities have comparatively greater strategic significance and materiality and may involve exit activities, whereas regular cost containment activities are more tactical in nature and are rarely characterized by formal and integrated action plans or exiting a particular product, facility, or service.

The following table summarizes restructuring and asset impairment charges and reversals during the three and six months ended December 25, 2011 and December 26, 2010. In addition to charges incurred under specific restructuring plans, the Company incurred asset impairment charges of $1.7 million related to a decline in the market value of certain facilities.


	Three Months Ended					Six Months Ended
	December 25,			December 26,		December 25,			December 26,
	2011			2010		2011			2010
	(in thousands)
June 2008 Plan	$	(859	)	$	—	$	(859	)	$	—
March 2009 Plan		—			—		—			(5,163	)
Asset impairments outside of specific restructuring plans		—			—		1,725			—

Total restructuring and assset impairment charges (recoveries)	$	(859	)	$	—	$	866		$	(5,163	)

The amounts in the table above were recorded in the Consolidated Statements of Operations for the respective periods as follows:


	Three Months Ended					Six Months Ended
	December 25,			December 26,		December 25,			December 26,
	2011			2010		2011			2010
	(in thousands)
Cost of goods sold	$	(859	)	$	—	$	(859	)
Operating expense		—			—		1,725			(5,163	)

Total restructuring and assset impairment charges (recoveries)	$	(859	)	$	—	$	866		$	(5,163	)

June 2008 Plan

During the June 2008 quarter, the Company incurred restructuring expenses and asset impairment charges related to the integration of SEZ and overall streamlining of the Company's combined Clean Product Group ("June 2008 Plan"). During the three months ended December 25, 2011 the Company released $0.9 million related to a recorded obligation not realized for a previously restructured product line. There were no restructuring and asset impairment charges (recoveries) under the June 2008 Plan during the three or six months ended December 26, 2010. There are no remaining liabilities related to the June 2008 Plan as of December 25, 2011.

March 2009 Plan

During the March 2009 quarter the Company incurred restructuring expenses and asset impairment charges designed to align the Company's cost structure with its outlook for the current economic environment and future business opportunities ("March 2009 Plan"). There were no charges incurred under the March 2009 Plan during the three or six months ended December 25, 2011 or the three months December 26, 2010. During the six months ended December 26, 2010 the Company reversed $5.2 million in restructuring and asset impairment charges as a result of a decision to occupy previously restructured facilities.

Below is a table summarizing activity relating to the March 2009 Plan during the six months ended December 25, 2011:


	Facilities
	(in thousands)
Balance at June 26, 2011	$	28,106
Cash payments		(151	)

Balance at December 25, 2011	$	27,955

Total charges incurred through December 25, 2011 under the March 2009 Plan were $61.3 million. The facilities balance consists primarily of lease payments, net of sublease income, on vacated buildings and is expected to be paid by the end of fiscal year 2015.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

Business Combinations	6 Months Ended
Business Combinations	Dec. 25, 2011
Business Combinations [Abstract]
Business Combinations	NOTE 16 – BUSINESS COMBINATIONS On December 14, 2011, Lam Research entered into and announced an Agreement and Plan of Merger with Novellus Systems, Inc. ("Novellus"), under which Novellus will become a wholly-owned subsidiary of Lam Research. The transaction is structured as an all stock deal that was estimated at the date of announcement to be valued at approximately $3.3 billion, based on Lam's closing stock price on the date of announcement. The ultimate transaction value will be based on Lam's stock price at the close of market on the date of the transaction close. Completion of the transaction is subject to certain closing conditions, including but not limited to approval of the transaction by the stockholders of Lam Research and Novellus, receipt of all required regulatory approvals, and other customary conditions. In addition, on the date of announcement, the Board of Directors authorized, in conjunction with the transaction, the repurchase of up to $1.6 billion of Company common stock, which replaces the previous repurchase authorizations under the program.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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+ Details