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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2013	May 03, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	LRCX
Entity Registrant Name	LAM RESEARCH CORP
Entity Central Index Key	0000707549
Current Fiscal Year End Date	--06-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		162,717,165

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Mar. 31, 2013

Jun. 24, 2012

ASSETS

Cash and cash equivalents

$ 1,019,109

$ 1,564,752

^[1]

Short-term investments

1,337,819

1,297,931

^[1]

Accounts receivable, less allowance for doubtful accounts of $5,349 as of March 31, 2013 and $5,248 as of June 24, 2012

544,070

765,818

^[1]

Inventories

545,036

632,853

^[1]

Deferred income taxes

137,729

47,782

^[1]

Prepaid expenses and other current assets

86,156

105,973

^[1]

Total current assets

3,669,919

4,415,109

^[1]

Property and equipment, net

594,916

584,596

^[1]

Restricted cash and investments

166,196

166,335

^[1]

Goodwill

1,446,244

1,446,303

^[1]

Intangible assets, net

1,116,742

1,240,427

^[1]

Other assets

152,285

151,882

^[1]

Total assets

7,146,302

8,004,652

^[1]

LIABILITIES AND STOCKHOLDERS' EQUITY

Trade accounts payable

173,287

258,778

^[1]

Accrued expenses and other current liabilities

432,856

492,178

^[1]

Deferred profit

193,315

164,833

^[1]

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

1,555

511,139

^[1]

Total current liabilities

801,013

1,426,928

^[1]

Long-term debt, convertible notes, and capital leases

1,294,599

761,783

^[1]

Income taxes payable

250,339

274,240

^[1]

Other long-term liabilities

258,151

219,577

^[1]

Total liabilities

2,604,102

2,682,528

^[1]

Commitments and contingencies

^[1]

Senior convertible notes

^[1]

190,343

Stockholders' equity:

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

^[1]

Common stock, at par value of $0.001 per share; authorized - 400,000 shares; issued and outstanding- 161,802 shares as of March 31, 2013 and 186,656 shares as of June 24, 2012

162

187

^[1]

Additional paid-in capital

5,229,530

4,943,539

^[1]

Treasury stock, at cost; 89,496 shares as of March 31, 2013 and 62,068 shares as of June 24, 2012

(3,550,728)

(2,636,936)

^[1]

Accumulated other comprehensive loss

(23,745)

(33,818)

^[1]

Retained earnings

2,886,981

2,858,809

^[1]

Total stockholders' equity

4,542,200

5,131,781

^[1]

Total liabilities and stockholders' equity

$ 7,146,302

$ 8,004,652

^[1]

[1]	Derived from audited financial statements

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
shares in Thousands, $ in Thousands

Mar. 31, 2013

Jun. 24, 2012

^[1]

Accounts receivable, allowance for doubtful accounts

$ 5,349

$ 5,248

Preferred stock, par value

$ 0.001

Preferred stock, shares authorized

5,000

Preferred stock, shares outstanding

Common stock, par value

$ 0.001

Common stock, shares authorized

400,000

Common stock, shares issued

161,802

186,656

Common stock, shares outstanding

161,802

186,656

Treasury stock, shares

89,496

62,068

[1]	Derived from audited financial statements

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Mar. 25, 2012	Mar. 31, 2013	Mar. 25, 2012
Revenue	$ 844,928	$ 658,961	$ 2,612,702	$ 1,923,378
Cost of goods sold	505,096	391,814	1,623,570	1,138,381
Cost of goods sold - restructuring				(859)
Total cost of goods sold	505,096	391,814	1,623,570	1,137,522
Gross margin	339,832	267,147	989,132	785,856
Research and development	174,206	113,448	503,468	320,031
Selling, general and administrative	154,807	95,581	453,070	259,037
Restructuring and impairments			1,021	1,725
Total operating expenses	329,013	209,029	957,559	580,793
Operating income	10,819	58,118	31,573	205,063
Other expense, net	(15,834)	(3,568)	(39,162)	(23,426)
Income (loss) before income taxes	(5,015)	54,550	(7,589)	181,637
Income tax expense (benefit)	(24,011)	8,946	(35,761)	30,983
Net income	$ 18,996	$ 45,604	$ 28,172	$ 150,654
Net income per share:
Basic net income per share	$ 0.12	$ 0.38	$ 0.16	$ 1.25
Diluted net income per share	$ 0.11	$ 0.38	$ 0.16	$ 1.24
Number of shares used in per share calculations:
Basic	163,034	119,841	171,016	120,904
Diluted	168,504	120,956	174,306	121,830

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Mar. 25, 2012	Mar. 31, 2013	Mar. 25, 2012
Net income	$ 18,996	$ 45,604	$ 28,172	$ 150,654
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	(5,398)	7,118	(554)	(24,771)
Cash flow hedges:
Net unrealized gains (losses) during the period	8,400	6,372	10,028	(5,420)
Net losses (gains) reclassified into earnings	(5,389)	3,140	(3,100)	8,652
Net change	3,011	9,512	6,928	3,232
Available-for-sale investments:
Net unrealized gains (losses) during the period	67	354	(105)	117
Net losses (gains) reclassified into earnings	2,899	(200)	3,321	(316)
Net change	2,966	154	3,216	(199)
Defined benefit plan, net change in unrealized component	160	158	483	(4,211)
Other comprehensive income (loss), net of tax	739	16,942	10,073	(25,949)
Comprehensive income	$ 19,735	$ 62,546	$ 38,245	$ 124,705

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

9 Months Ended

Mar. 31, 2013

Mar. 25, 2012

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$ 28,172

$ 150,654

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

Depreciation and amortization

228,065

66,249

Deferred income taxes

(47,271)

3,090

Restructuring and impairment charges

1,021

866

Impairment of investment

3,711

1,724

Equity-based compensation expense

74,089

52,385

Income tax impact on equity-based compensation plans

(847)

Excess tax impact on equity-based compensation plans

903

(2,292)

Amortization of convertible note discount

23,530

20,014

Other, net

30,838

3,671

Changes in operating assets and liabilities

202,734

105,871

Net cash provided by operating activities

544,945

402,313

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures and intangible assets

(117,655)

(70,392)

Cash paid for business acquisition

(9,116)

Purchases of available-for-sale securities

(832,913)

(638,637)

Sales and maturities of available-for-sale securities

780,950

266,959

Purchase of equity method investment

(10,740)

Receipt of loan payment

8,375

Proceeds from sale of assets

660

2,677

Transfer of restricted cash and investments

147

Net cash used for investing activities

(177,927)

(441,735)

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal payments on long-term debt and capital lease obligations

(1,536)

(4,164)

Excess tax impact on equity-based compensation plans

(903)

2,292

Net cash paid in advance for stock repurchase contracts

55,194

Treasury stock purchases

(953,386)

(111,604)

Reissuances of treasury stock related to employee stock purchase plan

18,419

16,760

Proceeds from issuance of common stock

22,666

1,776

Net cash used for financing activities

(914,740)

(39,746)

Effect of exchange rate changes on cash

2,079

(2,697)

Net decrease in cash and cash equivalents

(545,643)

(81,865)

Cash and cash equivalents at beginning of period

1,564,752

^[1]

1,492,132

Cash and cash equivalents at end of period

$ 1,019,109

$ 1,410,267

[1]	Derived from audited financial statements

BASIS OF PRESENTATION

9 Months Ended

Mar. 31, 2013

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 24, 2012, which are included in the Annual Report on Form 10-K as of and for the year ended June 24, 2012 (the “2012 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 (the “2013 fiscal year”) will end June 30, 2013 and includes 53 weeks. The quarter ended March 31, 2013 (the “March 2013 quarter”) included 14 weeks. The quarter ended March 25, 2012 (the “March 2012 quarter”) included 13 weeks.

- Definition

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

+ References

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-Name Accounting Research Bulletin (ARB)
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+ Details

RECENT ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Mar. 31, 2013

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. The Company adopted this guidance in the September 2012 quarter. The implementation of this authoritative guidance did not have an impact on the Company’s financial position or results of operations, but did change the presentation of the Company’s financial statements.

In February 2013, the FASB issued an accounting standard update regarding the reporting of amounts reclassified out of accumulated other comprehensive income. The February 2013 update does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, this update requires an entity to present on the face of the financial statements or in the notes amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. As allowed in the update, the Company elected to early adopt these disclosure amendments in the quarter ended March 31, 2013. The implementation of this update did not impact the Company’s financial position, results of operations or cash flows as it was disclosure-only in nature.

- 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.

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+ Details

EQUITY-BASED COMPENSATION PLANS

9 Months Ended

Mar. 31, 2013

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 three years or less, although awards assumed in connection with the Novellus acquisition have vesting terms up to four years. The Company also has an employee stock purchase plan 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				Nine Months Ended
	March 31, 2013		March 25, 2012		March 31, 2013		March 25, 2012
	(in millions)
Equity-based compensation expense	$	25.6	$	16.4	$	74.1	$	52.4
Income tax benefit related to equity-based compensation expense	$	4.3	$	2.2	$	13.3	$	7.1

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. The increase in stock compensation expense during the three and nine months ended March 31, 2013 as compared to the three and nine months ended March 25, 2012 was primarily due to the increased number of RSUs and stock options outstanding as a result of awards assumed in connection with the Novellus acquisition.

Stock Options and RSUs

The 2007 Stock Incentive Plan provides for grants of equity-based awards to eligible participants. In June 2012, as part of the Novellus acquisition, Lam also assumed the Novellus Systems, Inc. 2011 Stock Incentive Plan (together with the 2007 Stock Incentive Plan, collectively the “Plans”), which provides for grants of equity-based awards to eligible participants. As of March 31, 2013, there were a total of 7,569,144 shares reserved to cover options and RSUs issued and outstanding under the Plans. As of March 31, 2013, there were an additional 13,891,610 shares reserved and available for future equity-based awards under the Plans.

A summary of stock option activity under the Plans as of March 31, 2013 and changes during the nine 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 March 31, 2013 (in thousands)
Outstanding at June 24, 2012		3,902		$	25.14		4.79
Granted		289		$	42.59
Exercised		(903	)	$	25.16
Forfeited or expired		(61	)	$	26.09

Outstanding at March 31, 2013		3,227		$	26.68		4.47	$	48,036

Exercisable at March 31, 2013		2,481		$	24.87		3.64	$	41,154

The total intrinsic value of options exercised during the three months ended March 31, 2013 and March 25, 2012 was $8.0 million and $0.1 million, respectively. The total intrinsic value of options exercised during the nine months ended March 31, 2013 and March 25, 2012 was $12.7 million and $1.3 million, respectively. As of March 31, 2013, there was $9.2 million of total unrecognized compensation cost related to unvested stock options granted and outstanding; that cost is expected to be recognized over a weighted average remaining vesting period of 1.7 years.

A summary of the Company’s RSUs as of March 31, 2013 and changes during the nine months then ended is presented below:


Unvested Restricted Stock Units	Shares (in thousands)			Average Grant- Date Fair Value
Unvested at June 24, 2012		4,331		$	41.01
Granted		1,820		$	35.85
Vested		(1,619	)	$	42.71
Forfeited		(190	)	$	39.90

Unvested at March 31, 2013		4,342		$	38.21

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 March 31, 2013, there was $116.8 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 2.0 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 March 31, 2013, there were a total of 10,007,371 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 nine months ended March 31, 2013:


	Three Months Ended March 31, 2013			Nine Months Ended March 31, 2013
Expected term (years)		0.51			0.65
Expected stock price volatility		29.81	%		32.54	%
Risk-free interest rate		0.12	%		0.15	%

As of March 31, 2013, there was $5.2 million of unrecognized compensation expense related to the 1999 ESPP, which is expected to be recognized over a remaining period of approximately 5 months.

- 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

9 Months Ended

Mar. 31, 2013

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 related 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 Condensed 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:


	Total		Fair Value Measurement at March 31, 2013
	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	$	759,101	$	759,101	$	—	$	—
Municipal Notes and Bonds		268,614		—		268,614		—
US Treasury and Agencies		178,834		175,215		3,619		—
Government-Sponsored Enterprises		81,594		—		81,594		—
Foreign Government Bonds		16,689		—		16,689		—
Corporate Notes and Bonds		834,947		164,885		670,062		—
Mortgage Backed Securities - Residential		29,188		—		29,188		—
Mortgage Backed Securities - Commercial		92,838		—		92,838		—

Total Short-Term Investments	$	2,261,805	$	1,099,201	$	1,162,604	$	—
Equities		5,610		5,610		—		—
Mutual Funds		24,016		24,016		—		—
Derivative Assets		8,065		—		8,065		—

Total Assets	$	2,299,496	$	1,128,827	$	1,170,669	$	—

Liabilities
Derivative Liabilities	$	4,313	$	—	$	4,030	$	283

The amounts in the table above are reported in the Consolidated Balance Sheet as of March 31, 2013 as follows:


	Total		Level 1		Level 2		Level 3
			(In thousands)
Reported Within:
Cash Equivalents	$	759,101	$	759,101	$	—	$	—
Short-Term Investments		1,337,819		175,215		1,162,604		—
Restricted Cash and Investments		164,885		164,885		—		—
Prepaid Expenses and Other Current Assets		8,065		—		8,065		—
Other Assets		29,626		29,626		—		—

Total Assets	$	2,299,496	$	1,128,827	$	1,170,669	$	—

Accrued Expenses and Other Current Liabilities	$	4,030	$	—	$	4,030	$	—
Other Non-current Liabilities		283		—		—		283

Total Liabilities	$	4,313	$	—	$	4,030	$	283

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


	Total		Fair Value Measurement at June 24, 2012
	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	$	1,318,812	$	1,318,812	$	—	$	—
Municipal Notes and Bonds		322,567		—		322,567		—
US Treasury and Agencies		137,446		130,624		6,822		—
Government-Sponsored Enterprises		123,268		—		123,268		—
Foreign Government Bond		6,358		—		6,358		—
Corporate Notes and Bonds		768,901		164,885		604,016		—
Mortgage Backed Securities - Residential		25,972		—		25,972		—
Mortgage Backed Securities - Commercial		84,853		—		84,853		—

Total Short-Term Investments	$	2,788,177	$	1,614,321	$	1,173,856	$	—
Equities		5,913		5,913		—		—
Mutual Funds		17,754		17,754		—		—
Derivative Assets		5,020		—		5,020		—

Total Assets	$	2,816,864	$	1,637,988	$	1,178,876	$	—

Liabilities
Derivative Liabilities	$	4,529	$	—	$	4,328	$	201

The amounts in the table above are reported in the Consolidated Balance Sheet as of June 24, 2012 as follows:


	Total		Level 1		Level 2		Level 3
	(In thousands)
Reported Within:
Cash Equivalents	$	1,325,361	$	1,318,812	$	6,549	$	—
Short-Term Investments		1,297,931		130,624		1,167,307		—
Restricted Cash and Investments		164,885		164,885		—		—
Prepaid Expenses and Other Current Assets		5,020		—		5,020		—
Other Assets		23,667		23,667		—		—

Total Assets	$	2,816,864	$	1,637,988	$	1,178,876	$	—

Accrued Expenses and Other Current Liabilities	$	4,328	$	—	$	4,328	$	—
Other Non-current Liabilities		201		—		—		201

Total Liabilities	$	4,529	$	—	$	4,328	$	201

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 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 for additional information regarding the fair value of the Company’s convertible notes.

Investments

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


	March 31, 2013									June 24, 2012
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cost		Unrealized Gain		Unrealized (Loss)			Fair Value
Cash	$	261,319	$	—	$	—		$	261,319	$	240,841	$	—	$	—		$	240,841
Fixed Income Money Market Funds		759,101		—		—			759,101		1,318,812		—		—			1,318,812
Municipal Notes and Bonds		267,308		1,308		(2	)		268,614		321,001		1,574		(8	)		322,567
US Treasury and Agencies		178,656		179		(1	)		178,834		137,516		43		(113	)		137,446
Government-Sponsored Enterprises		81,452		144		(2	)		81,594		123,269		67		(68	)		123,268
Foreign Government Bonds		16,620		91		(22	)		16,689		6,315		43		—			6,358
Corporate Notes and Bonds		832,886		2,554		(493	)		834,947		767,847		1,443		(389	)		768,901
Mortgage Backed Securities - Residential		29,046		204		(62	)		29,188		25,857		121		(6	)		25,972
Mortgage Backed Securities - Commercial		92,663		563		(388	)		92,838		84,682		555		(384	)		84,853

Total Cash and Short -Term Investments	$	2,519,051	$	5,043	$	(970	)	$	2,523,124	$	3,026,140	$	3,846	$	(968	)	$	3,029,018

Publicly Traded Equity Security	$	5,610	$	—	$	—		$	5,610	$	9,320	$	—	$	(3,407	)	$	5,913
Private Equity Security		5,000		—		—			5,000		5,000		—		—			5,000
Mutual Funds		22,384		1,632		—			24,016		17,459		366		(71	)		17,754

Total Financial Instruments	$	2,552,045	$	6,675	$	(970	)	$	2,557,750	$	3,057,919	$	4,212	$	(4,446	)	$	3,057,685

Reported Within
Cash and Cash Equivalents	$	1,019,109	$	—	$	—		$	1,019,109	$	1,564,752	$	—	$	—		$	1,564,752
Short-Term Investments		1,333,746		5,043		(970	)		1,337,819		1,295,053		3,846		(968	)		1,297,931
Restricted Cash and Investments		166,196		—		—			166,196		166,335		—		—			166,335
Other assets		32,994		1,632		—			34,626		31,779		366		(3,478	)		28,667

Total	$	2,552,045	$	6,675	$	(970	)	$	2,557,750	$	3,057,919	$	4,212	$	(4,446	)	$	3,057,685

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 $3.7 million other-than-temporary impairment of a public equity investment during the three and nine months ended March 31, 2013. The Company recognized a $1.7 million other-than-temporary impairment of a private equity investment during the nine months ended March 25, 2012. The Company did not recognize any losses on investments due to other-than-temporary impairments during the three months ended March 25, 2012. Additionally, gross realized gains and gross realized (losses) from sales of investments were approximately $0.2 million and $(0.4) million, respectively, in the three months ended March 31, 2013 and $0.3 million and $(0.2) million, respectively, in the three months ended March 25, 2012. Gross realized gains and gross realized (losses) from sales of investments were approximately $1.4 million and $(1.1) million, respectively, in the nine months ended March 31, 2013 and $0.5 million and $(0.5) million, respectively, in the nine months ended March 25, 2012.

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


	March 31, 2013
	Unrealized Losses Less Than 12 Months					Unrealized Losses 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	$	1,691	$	(2	)	$	—	$	—		$	1,691	$	(2	)
US Treasury and Agencies		5,510		(1	)		—		—			5,510		(1	)
Government-Sponsored Enterprises		8,154		(1	)		2,001		(1	)		10,155		(2	)
Foreign Government Bonds		7,670		(22	)		—		—			7,670		(22	)
Corporate Notes and Bonds		185,957		(472	)		1,037		(21	)		186,994		(493	)
Mortgage Backed Securities - Residential		3,223		(62	)		—		—			3,223		(62	)
Mortgage Backed Securities - Commercial		49,234		(358	)		1,574		(30	)		50,808		(388	)

Total Short-Term Investments	$	261,439	$	(918	)	$	4,612	$	(52	)	$	266,051	$	(970	)

The amortized cost and fair value of cash equivalents, short-term investments, and restricted cash and investments with contractual maturities are as follows as of March 31, 2013:


	Cost		Estimated Fair Value
	(in thousands)
Due in one year or less	$	1,207,570	$	1,208,070
Due after one year through five years		889,534		892,698
Due in more than five years		160,628		161,037

	$	2,257,732	$	2,261,805

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 currency 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 currency forward contracts are large global 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 currency forward contracts that generally expire within 12 months and no later than 24 months. These foreign currency 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 earnings in the same period the hedged transaction 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 currency forward contracts due to changes in time value are excluded from the assessment of effectiveness and are recognized in earnings 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 nine months ended March 31, 2013 or March 25, 2012 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 recognizes 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 March 31, 2013, the Company had gains of $6.7 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 currency forward contracts to hedge fluctuations associated with foreign currency denominated monetary assets and liabilities, primarily intercompany receivables and payables. These foreign currency 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 March 31, 2013, 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
	Buy Contracts		Sell Contracts		Buy Contracts		Sell Contracts
Japanese Yen	$	—	$	125,333	$	—	$	71,511
Swiss Francs		—		—		20,527		4,321
British Pound Sterling		—		—		4,579		4,325
Euro		72,754		—		34,432		24,345
Korean Won		—		—		60,237		—
Taiwan Dollar		—		—		128,767		—

	$	72,754	$	125,333	$	248,542	$	104,502

The fair value of derivative instruments in the Company’s Consolidated Balance Sheet as of March 31, 2013 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

8,034

Accrued liabilities

1,400

Derivatives not designated as hedging instruments:

Foreign exchange forward contracts

Prepaid expense
and other assets

Accrued liabilities

2,630

Total derivatives

8,065

4,030

The fair value of derivative instruments in the Company’s Consolidated Balance Sheet as of June 24, 2012 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

3,358

Accrued liabilities

3,403

Derivatives not designated as hedging instruments:

Foreign exchange forward contracts

Prepaid expense
and other assets

1,662

Accrued liabilities

925

Total derivatives

5,020

4,328

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


		Three Months Ended March 31, 2013								Nine Months Ended March 31, 2013
		Effective Portion						Ineffective Portion and Amount Excluded from Effectiveness Testing		Effective Portion						Ineffective Portion and Amount Excluded from Effectiveness Testing
	Location of Gain (Loss) Recognized in or Reclassified into Income	Gain (Loss) Recognized in AOCI			Gain Reclassified from AOCI into Income			Gain Recognized in Income		Gain Recognized in AOCI			Gain (Loss) Reclassified from AOCI into Income			Loss Recognized in Income
								(in thousands)
Derivatives Designated as Hedging Instruments
Foreign Exchange Contracts	Revenue		9,454			3,850			—		8,159			4,574			—
Foreign Exchange Contracts	Cost of goods sold		(563	)		1,194			—		1,332			(1,069	)		—
Foreign Exchange Contracts	Selling, general, and administrative		(491	)		345			—		537			(405	)		—
Foreign Exchange Contracts	Other income (expense)		—			—			14		—			—			(42	)

			8,400			5,389			14		10,028			3,100			(42	)


		Three Months Ended March 25, 2012								Nine Months Ended March 25, 2012
		Effective Portion						Ineffective Portion and Amount Excluded from Effectiveness Testing		Effective Portion						Ineffective Portion and Amount Excluded from Effectiveness Testing
	Location of Gain (Loss) Recognized in or Reclassified into Income	Gain Recognized in AOCI			Loss Reclassified from AOCI into Income			Gain Recognized in Income		Loss Recognized in AOCI			Loss Reclassified from AOCI into Income			Gain Recognized in Income
								(in thousands)
Derivatives Designated as
Hedging Instruments
Foreign Exchange Contracts	Revenue		5,184			(560	)		—		(501	)		(6,645	)		—
Foreign Exchange Contracts	Cost of goods sold		991			(1,794	)		—		(3,533	)		(1,353	)		—
Foreign Exchange Contracts	Selling, general, and administrative		197			(786	)		—		(1,386	)		(654	)		—
Foreign Exchange Contracts	Other income (expense)		—			—			3		—			—			755

			6,372			(3,140	)		3		(5,420	)		(8,652	)		755

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					Nine Months Ended
		March 31, 2013		March 25, 2012			March 31, 2013		March 25, 2012
Derivatives Not Designated as Hedging Instruments:	Location of Gain (Loss) Recognized in Income	Gain Recognized in Income		Loss Recognized in Income			Gain Recognized in Income		Loss Recognized in Income
		(in thousands)
Foreign Exchange Contracts	Other income (expense)	$	2,061	($	4,476	)	$	2,347	($	47,299	)

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 global financial institutions. Such deposits may be in excess of insured limits. Management believes that the financial institutions that hold the Company’s cash are creditworthy and, accordingly, minimal credit risk exists with respect to these balances.

The Company’s over-all portfolio of available-for-sale securities must maintain an average minimum rating of AA - or Aa3 as rated by Standard and Poor’s or Moody’s Investor Services, respectively. 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 global 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

9 Months Ended

Mar. 31, 2013

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 finished goods inventory and carried at cost until title transfers. Inventories consist of the following:


	March 31,		June 24,
	2013		2012
	(in thousands)
Raw materials	$	312,848	$	342,283
Work-in-process		94,517		118,566
Finished goods		137,671		172,004

	$	545,036	$	632,853

During the nine months ended March 31, 2013, the Company incurred charges of $18.7 million resulting from the write-off of inventory related to the decision to stop future development of certain product configurations and transition them to a sustaining mode with existing customers. These charges were included in cost of goods sold in the Condensed Consolidated Statements of Operations.

PROPERTY AND EQUIPMENT, NET

9 Months Ended

Mar. 31, 2013

PROPERTY AND EQUIPMENT, NET

NOTE 6 — PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consists of the following:


	March 31,			June 24,
	2013			2012
	(in thousands)
Manufacturing, engineering and office equipment	$	500,003		$	468,739
Computer equipment and software		114,166			104,919
Land		65,271			65,228
Buildings		243,137			231,536
Leasehold improvements		70,244			54,327
Furniture and fixtures		20,974			19,770

		1,013,795			944,519
Less: accumulated depreciation and amortization		(418,879	)		(359,923	)

	$	594,916		$	584,596

The Company’s long lived assets held for use, including property, plant, and equipment and intangible assets, are measured at fair value when an impairment exists. Long lived assets held for use are assessed for impairment when events occur that indicate a potential impairment. The Company did not record an impairment of long lived assets held for use during the three or nine months ended March 31, 2013 or March 25, 2012.

- 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

9 Months Ended

Mar. 31, 2013

GOODWILL AND INTANGIBLE ASSETS

NOTE 7 — GOODWILL AND INTANGIBLE ASSETS

Goodwill

There was no significant change in the goodwill balance during the nine months ended March 31, 2013. Of the $1,446 million goodwill balance as of March 31, 2013, $61.1 million is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law.

The Company’s goodwill is measured at fair value when an impairment exists. Goodwill is assessed at least annually for impairment. The Company did not record impairments of goodwill during the three or nine months ended March 31, 2013 or March 25, 2012.

Intangible Assets

The following table provides details of the Company’s intangible assets, including the impact of foreign currency translation adjustments, as of March 31, 2013 (in thousands, except years):


	Gross		Accumulated Amortization			Net		Weighted- Average Useful Life (years)
Customer relationships	$	624,314	$	(85,730	)	$	538,584		9.01
Existing technology		642,884		(116,910	)		525,974		6.97
Patents		32,053		(20,984	)		11,069		6.09
Backlog		10,000		(8,048	)		1,952		1.00
Other intangible assets		35,216		(35,153	)		63		4.10

Intangible assets subject to amortization		1,344,467		(266,825	)		1,077,642
In process research and development		30,000					30,000
Development rights		9,100					9,100

Intangible assets not subject to amortization		39,100					39,100

Total intangible assets	$	1,383,567	$	(266,825	)	$	1,116,742

The following table provides details of the Company’s intangible assets, including the impact of foreign currency translation adjustments, as of June 24, 2012 (in thousands, except years):


	Gross		Accumulated Amortization			Net		Weighted- Average Useful Life (years)
Customer relationships	$	615,411	$	(32,041	)	$	583,370		9.04
Existing technology		642,311		(48,378	)		593,933		6.97
Patents		30,870		(17,525	)		13,345		6.05
Backlog		10,000		(548	)		9,452		1.00
Other intangible assets		35,216		(33,989	)		1,227		4.10

Intangible assets subject to amortization		1,333,808		(132,481	)		1,201,327
In process research and development		30,000					30,000
Development rights		9,100					9,100

Intangible assets not subject to amortization		39,100					39,100

Total intangible assets	$	1,372,908	$	(132,481	)	$	1,240,427

The Company recognized $45.0 million and $4.5 million in intangible asset amortization expense during the three months ended March 31, 2013 and March 25, 2012, respectively. The Company recognized $134.3 million and $13.5 million in intangible asset amortization expense during the nine months ended March 31, 2013 and March 25, 2012, respectively.

The estimated future amortization expense of purchased intangible assets as of March 31, 2013 is as follows (in thousands):


Fiscal Year	Amount
2013 (3 months)	$	42,911
2014		162,367
2015		154,128
2016		152,305
2017		152,075
Thereafter		413,856

	$	1,077,642

- 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

9 Months Ended

Mar. 31, 2013

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

NOTE 8 — ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following:


	March 31,		June 24,
	2013		2012
	(in thousands)
Accrued compensation	$	237,402	$	274,165
Warranty reserves		48,943		63,988
Income and other taxes payable		29,937		24,745
Other		116,574		129,280

	$	432,856	$	492,178

OTHER EXPENSE, NET

9 Months Ended

Mar. 31, 2013

OTHER EXPENSE, NET

NOTE 9 — OTHER EXPENSE, NET

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


	Three Months Ended						Nine Months Ended
	March 31,			March 25,			March 31,			March 25,
	2013			2012			2013			2012
	(in thousands)
Interest income	$	3,235		$	2,959		$	11,411		$	8,020
Interest expense		(15,175	)		(9,422	)		(45,294	)		(28,028	)
Gains (losses) on deferred compensation plan related assets		3,112			2,717			7,087			504
Foreign exchange losses		(1,294	)		(126	)		(4,936	)		(1,358	)
Other, net		(5,712	)		304			(7,430	)		(2,564	)

	$	(15,834	)	$	(3,568	)	$	(39,162	)	$	(23,426	)

INCOME TAX EXPENSE

9 Months Ended

Mar. 31, 2013

INCOME TAX EXPENSE

NOTE 10 — INCOME TAX EXPENSE

The Company recorded an income tax benefit of $(24.0) million and $(35.8) million for the three and nine months ended March 31, 2013, respectively. The income tax benefit recorded yielded an effective tax rate of 478.9% and 471.2% for the three and nine months ended March 31, 2013, respectively.

The differences between the U.S. federal statutory tax rate of 35% and the Company’s effective tax rates for the three and nine months ended March 31, 2013 were primarily due to the treatment of discrete items in determining the effective tax rate, recognition of previously unrecognized tax benefits due to lapse of statute of limitations and successful resolution of certain tax matters, discrete tax benefit related to the retroactive reinstatement of the federal research and development tax credit in January 2013, and the geographic mix of income, partially offset by the tax effect of non-deductible stock-based compensation. The effective tax rates recorded during the three and nine months ended March 31, 2013 included the tax impact of discrete items, which were recorded during the quarter in which they occurred. During the three and nine months ended March 31, 2013, the tax impact of discrete items primarily consisted of: (1) a tax benefit of $4.3 million and $35.1 million for the three months and nine months ended March 31, 2013, respectively, due to the recognition of previously unrecognized tax benefits due to lapse of statute of limitations and successful resolution of certain tax matters, (2) a tax benefit of $11.5 million for the three and nine months ended March 31, 2013, due to the retroactive extension of the U.S. federal research and development tax credit for part of fiscal year 2012, (3) a tax expense of $3.2 million for the three and nine months ended March 31, 2013, due to the tax impacts of changes in the Company’s legal entity structure, (4) a tax expense of $3.2 million for the three and nine months ended March 31, 2013, due to an increase in estimates of an uncertain tax position related to foreign tax returns, and (5) the effective tax rate impact of integration and impairment expenses of $19.9 million and $65.2 million for the three months and nine months, respectively, for which little tax benefit is derived.

The total gross unrecognized tax benefits as of each date noted below were as follows:


	March 31,		June 24,
	2013		2012
	(in millions)
Total gross unrecognized tax benefits	$	343.3	$	343.8

If the gross unrecognized tax benefits as of March 31, 2013 were recognized in a future period, it would result in a net tax benefit of $273.7 million and a reduction of the effective tax rate for that future period.

The Company recognizes interest expense and penalties related to unrecognized tax benefits within income tax expense. As of March 31, 2013, the Company had accrued approximately $25.8 million for the payment of gross interest and penalties, relating to unrecognized tax benefits, compared to $25.2 million as of June 24, 2012.

The Internal Revenue Service (“IRS”) is examining the Company’s U.S. income tax returns for fiscal years 2008 and 2009. As of March 31, 2013, no significant adjustments have been proposed by the IRS. The IRS has completed its audit of Novellus’ calendar year 2006 through calendar year 2008 tax returns. No significant adjustments were proposed by the IRS. The Company is also subject to audits by foreign tax authorities. The Company is unable to make a reasonable estimate as to when cash settlements, if any, with the relevant taxing authorities will occur.

The Company files U.S. federal, U.S. state, and foreign income tax returns. As of March 31, 2013, tax years 2003-2012 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 a significant 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 Company’s 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 $55.2 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 March 31, 2013, approximately $55.2 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 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 2: 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

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: 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 6: 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 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: 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.

+ Details

NET INCOME PER SHARE

9 Months Ended

Mar. 31, 2013

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, RSUs, and convertible notes. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share.


	Three Months Ended				Nine Months Ended
	March 31,		March 25,		March 31,		March 25,
	2013		2012		2013		2012
	(in thousands, except per share data)
Numerator:
Net income	$	18,996	$	45,604	$	28,172	$	150,654

Denominator:
Basic average shares outstanding		163,034		119,841		171,016		120,904
Effect of potential dilutive securities:
Employee stock plans		2,729		1,115		2,390		926
Convertible notes		2,741		—		900		—

Diluted average shares outstanding		168,504		120,956		174,306		121,830

Net income per share - basic	$	0.12	$	0.38	$	0.16	$	1.25

Net income per share - diluted	$	0.11	$	0.38	$	0.16	$	1.24

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

Nine Months Ended

March 31,

March 25,

March 31,

March 25,

2013

2012

2013

2012

(in thousands)

Number of potential dilutive securities excluded

298

148

567

264

Dilutive shares outstanding include only the effect of the 2041 Notes. Diluted shares outstanding do not include any effect resulting from warrants, assumed conversion of the notes, or note hedges associated with the Company’s 2016 or 2018 Notes (as described in Note 13) as their impact would have been anti-dilutive.

ACCUMULATED OTHER COMPREHENSIVE LOSS

9 Months Ended

Mar. 31, 2013

ACCUMULATED OTHER COMPREHENSIVE LOSS

NOTE 12 — ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of accumulated other comprehensive income (loss), net of tax at the end of the period, as well as the activity during the period, were as follows:


	Accumulated foreign currency translation adjustment			Accumulated unrealized holding gain (loss) on cash flow hedges			Accumulated unrealized holding gain (loss) on available-for-sale investments			Accumulated unrealized components of defined benefit plans			Total
	(in thousands)
Balance as of June 24, 2012	$	(22,481	)	$	(212	)	$	(308	)	$	(10,817	)	$	(33,818	)
Other comprehensive income (loss) before relcassifications		(554	)		10,028			(105	)		483			9,852
Losses (gains) reclassified from accumulated other comprehensive income to net income		—			(3,100	)⁽¹⁾		3,321	⁽²⁾		—			221

Net current-period other comprehensive income (loss)	$	(554	)	$	6,928		$	3,216		$	483		$	10,073

Balance as of March 31, 2013	$	(23,035	)	$	6,716		$	2,908		$	(10,334	)	$	(23,745	)

(1)	Amount of gain reclassified from accumulated other comprehensive income into net income. Reclassification located in revenue: $4,574 gain, cost of goods sold: $708 loss and selling, general and administrative expenses: $766 loss.

(2)	Amount of loss reclassified from accumulated other comprehensive income into net income located in other expense, net

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 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.

+ References

Reference 1: 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=20435746&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: 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 8: 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 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
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-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 10: 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.

+ Details

LONG TERM DEBT

9 Months Ended

Mar. 31, 2013

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 March 31, 2013 and June 24, 2012:


	March 31, 2013			June 24, 2012
	*(in millions)*
0.50% Notes due 2016	$	450.0		$	450.0
Less: Unamortized interest discount		(49.4	)		(60.3	)

Net carrying amount of 0.50% Notes due 2016		400.6			389.7

1.25% Notes due 2018		450.0			450.0
Less: Unamortized interest discount		(80.3	)		(90.4	)

Net carrying amount of 1.25% Notes due 2018		369.7			359.6

2.625% Notes due 2041		699.9			699.9
Less: Unamortized interest discount		(187.8	)		(190.3	)

Net carrying amount of 2.625% Notes due 2041		512.1			509.6

Total debt		1,282.4			1,258.9

Less: current portion of debt		—			(509.6	)

Long-term debt	$	1,282.4		$	749.3

Convertible Senior Notes

In May 2011, the Company issued and sold $450.0 million in aggregate principal amount of 0.50% Convertible Senior Notes due May 2016 (the “2016 Notes”) at par. At the same time, the Company issued and sold $450.0 million in aggregate principal amount of 1.25% Convertible Senior Notes due May 2018 (the “2018 Notes”) at par. The 2016 Notes and the 2018 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 2016 Notes and the 2018 Notes were $835.5 million. The Company pays cash interest at an annual rate of 0.5% and 1.25%, respectively, on the 2016 Notes and the 2018 Notes, payable semi-annually on May 15 and November 15 of each year.

In June 2012, with the acquisition of Novellus Systems, Inc. (see Note 16), the Company assumed $700.0 million in aggregate principal amount of 2.625% Convertible Senior Notes due May 2041 (the “2041 Notes,” and collectively with the 2016 Notes and the 2018 Notes, the “Notes”). The 2041 Notes may be converted, under certain circumstances, based on an initial conversion rate of 28.4781 shares of common stock per $1,000 principal amount of notes (which represents an initial conversion price of approximately $35.11 per share of common stock). The Company pays cash interest at an annual rate of 2.625%, payable semi-annually on May 15 and November 15 of each year. The 2041 Notes also have a contingent interest payment provision that may require us to pay additional interest based on certain thresholds, beginning with the semi-annual interest payment commencing on May 15, 2021, and upon the occurrence of certain events, as outlined in the indenture governing the 2041 Notes. The maximum amount of the contingent interest will accrue at a rate of 2.1% per annum, excluding any potential impact from dividends deemed payable to holders of the 2041 Notes. The contingent interest payment provision has been identified as an embedded derivative, to be accounted for separately, and is recorded at fair value at the end of each reporting period in other non-current liabilities, with any gains and losses recorded in interest expense, within the Condensed Consolidated Statements of Operations.

In connection with the acquisition of Novellus in June 2012, the 2041 Notes could have been converted into the Company’s common stock at any time from and after the later of (1) the date that was 30 scheduled trading days immediately prior to the anticipated closing date of the merger and (2) the date on which we delivered to the note holders notice of the merger, until 35 business days after the actual closing date of the merger, or July 24, 2012. Accordingly, the carrying amount of the 2041 Notes was classified in current liabilities in our Consolidated Balance Sheet as of June 24, 2012. The excess of the amount of cash payable, if converted, over the carrying amount of the 2041 Notes was classified as temporary equity as of June 24, 2012. When the conversion period closed, on July 24, 2012, all 2041 Notes not converted were reclassified back to noncurrent liabilities and the temporary equity was reclassified to permanent equity. During the period ending June 24, 2012, 65 of the 2041 Notes, with a total par value of $65,000, were converted at the note holders’ option. In conjunction with the conversion, 137 shares of common stock were issued.

The Company separately accounts for the liability and equity components of the Notes. The initial debt components of the 2016 Notes, the 2018 Notes, and the 2041 Notes were valued at $373.8 million, $345.1 million, and $509.5 million, respectively, based on the present value of the future cash flows using discount rates of 4.29%, 5.27%, and 4.28%, respectively, the Company’s borrowing rate at the date of the issuance or assumption for similar debt instruments without the conversion feature. The carrying values of the equity components of the 2016 Notes, the 2018 Notes, and the 2041 Notes were $76.2 million, $104.9 million, and $328.1 million, respectively as of March 31, 2013. The effective interest rates on the liability components of the 2016 Notes, the 2018 Notes, and the 2041 Notes for the three months ended March 31, 2013 were 4.29%, 5.27%, and 4.28% 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 nine months ended March 31, 2013 and March 25, 2012.


	Three Months Ended				Nine Months Ended
	March 31,		March 25,		March 31,		March 25,
	2013		2012		2013		2012
	*(in millions)*
Contractual interest coupon	$	6.6	$	2.0	$	19.7	$	5.9
Amortization of interest discount		7.9		6.7		23.5		20.0
Amortization of issuance costs		0.6		0.6		1.8		1.8

Total interest cost recognized	$	15.1	$	9.3	$	45.0	$	27.7

The remaining bond discount of the 2016 Notes of $49.4 million as of March 31, 2013 will be amortized over their remaining life, which is approximately 3.1 years. The remaining bond discount of the 2018 Notes of $80.3 million as of March 31, 2013 will be amortized over their remaining life, which is approximately 5.1 years. The remaining bond discount of the 2041 Notes of $187.8 million as of March 31, 2013 will be amortized over their remaining life, which is approximately 28.1 years. As of March 31, 2013, the if-converted value of the 2016 Notes and the 2018 Notes did not exceed the aggregate principal amount. As of March 31, 2013, the if-converted value of the 2041 Notes exceeded the aggregate principal amount by $126.6 million.

Convertible Note Hedges and Warrants

Concurrently with the issuance of the 2016 Notes and the 2018 Notes, the Company purchased convertible note hedges 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 the 2018 Notes and to increase the effective initial conversion price to $71.34 and $76.10 per share, respectively. Each of these components is discussed separately below:

Concurrent with the issuance of the 2016 Notes, the Company sold 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 March 31, 2013, the warrants had not been exercised and remained outstanding. In addition, 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.

Concurrent with the issuance of the 2018 Notes, the Company sold 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 March 31, 2013, the warrants had not been exercised and remained outstanding. In addition, 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.

Fair Value of Notes

As of March 31, 2013, the face values of the 2016 Notes, the 2018 Notes, and the 2041 Notes were $450.0 million, $450.0 million, and $699.9 million, respectively. As of March 31, 2013, the fair values of the 2016 Notes, the 2018 Notes, and the 2041 Notes, which includes the debt and equity components, were approximately $457.9 million, $486.0 million, and $946.7 million respectively, based on quoted market prices (Level 1 inputs within the fair value hierarchy).

- 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

9 Months Ended

Mar. 31, 2013

COMMITMENTS

NOTE 14 — COMMITMENTS

Capital Leases

Capital leases reflect building and 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 March 31, 2013 were as follows:


	Capital
	Leases
	(in thousands)
Payments due by period:
One year	$	1,770
Two years		1,793
Three years		1,676
Four years		9,055
Five years		—
Over 5 years		—

Total		14,294
Less: Interest on capital leases		534

Less: Current portion of capital leases		1,556

Long-tern portion of capital leases	$	12,204

Operating Leases and Related Guarantees

The Company leases certain 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 Leases 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 March 31, 2013.

When the terms of the Operating Leases expire, the property subject to that Operating Leases 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 Condensed Consolidated Statements 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 March 31, 2013, the unamortized portion of the fair value of the residual value guarantees remaining in other long-term liabilities and prepaid rent was $0.1 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 March 31, 2013, 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.

The Company provides guarantees and standby letters of credit to certain parties as required for certain transactions initiated during the ordinary course of business. As of March 31, 2013, the maximum potential amount of future payments that we could be required to make under these arrangements and letters of credit was $17.2 million. We do not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid.

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						Nine Months Ended
	March 31,			March 25,			March 31,			March 25,
	2013			2012			2013			2012
	(in thousands)
Balance at beginning of period	$	62,922		$	32,734		$	70,161		$	40,951
Warranties issued during the period		18,829			11,555			53,377			27,908
Settlements made during the period		(27,101	)		(14,692	)		(72,960	)		(37,838	)
Changes in liability for pre-existing warranties		90			2,669			4,162			1,245

Balance at end of period	$	54,740		$	32,266		$	54,740		$	32,266

Less: Long-term portion		(5,797	)		—			(5,797	)		—

Accrued warranty, curent	$	48,943		$	32,266		$	48,943		$	32,266

RESTRUCTURING AND IMPAIRMENTS

9 Months Ended

Mar. 31, 2013

RESTRUCTURING AND IMPAIRMENTS

NOTE 15 — RESTRUCTURING AND 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.

There were no restructuring charges incurred during three months ended March 31, 2013 or March 25, 2012. The following table summarizes restructuring and impairment charges and adjustments during the nine months ended March 31, 2013 and March 25, 2012. 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.


	Nine Months Ended
	March 31,			March 25,
	2013			2012
	(in thousands)
June 2008 Plan	$	—		$	(859	)
March 2009 Plan		(1,440	)		—
Adjustment to restructuring liability assumed in acquisition		2,461			—
Asset impairments outside of specific restructuring plans		—			1,725