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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 24, 2018	Aug. 09, 2018	Dec. 24, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 24, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	LRCX
Entity Registrant Name	LAM RESEARCH CORP
Entity Central Index Key	0000707549
Current Fiscal Year End Date	--06-24
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		157,579,984
Entity Public Float			$ 24,908,278,746

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017	Jun. 26, 2016
Income Statement [Abstract]
Revenue	$ 11,076,998	$ 8,013,620	$ 5,885,893
Cost of goods sold	5,911,966	4,410,261	3,266,971
Gross margin	5,165,032	3,603,359	2,618,922
Research and development	1,189,514	1,033,742	913,712
Selling, general, and administrative	762,219	667,485	630,954
Total operating expenses	1,951,733	1,701,227	1,544,666
Operating income	3,213,299	1,902,132	1,074,256
Other expense, net	(61,510)	(90,459)	(114,139)
Income before income taxes	3,151,789	1,811,673	960,117
Income tax expense	(771,108)	(113,910)	(46,068)
Net income	$ 2,380,681	$ 1,697,763	$ 914,049
Net income per share:
Basic (usd per share)	$ 14.73	$ 10.47	$ 5.75
Diluted (usd per share)	$ 13.17	$ 9.24	$ 5.22
Number of shares used in per share calculations:
Basic (shares)	161,643	162,222	158,919
Diluted (shares)	180,782	183,770	175,159

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017	Jun. 26, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 2,380,681	$ 1,697,763	$ 914,049
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	9,649	(2,843)	(4,403)
Cash flow hedges:
Net unrealized (losses) gains during the period	(6,960)	5,841	(17,725)
Net losses reclassified into earnings	3,729	8,971	4,961
Net change	(3,231)	14,812	(12,764)
Available-for-sale investments:
Net unrealized (losses) gains during the period	(45,382)	(3,789)	9,028
Net losses (gains) reclassified into earnings	43,086	(1)	(371)
Net change	(2,296)	(3,790)	8,657
Defined benefit plans, net change in unrealized component	129	(546)	(3,027)
Other comprehensive income (loss), net of tax	4,251	7,633	(11,537)
Comprehensive income	$ 2,384,932	$ 1,705,396	$ 902,512

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 24, 2018	Jun. 25, 2017
ASSETS:
Cash and cash equivalents	$ 4,512,257	$ 2,377,534
Investments	437,338	3,663,628
Accounts receivable, less allowance for doubtful accounts of $5,343 as of June 24, 2018 and $5,103 as of June 25, 2017	2,176,936	1,673,398
Inventories	1,876,162	1,232,916
Prepaid expenses and other current assets	147,218	195,022
Total current assets	9,149,911	9,142,498
Property and equipment, net	902,547	685,595
Restricted cash and investments	256,301	256,205
Goodwill	1,484,904	1,385,673
Intangible assets, net	317,836	410,995
Other assets	367,979	241,799
Total assets	12,479,478	12,122,765
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Trade accounts payable	510,983	464,643
Accrued expenses and other current liabilities	1,309,209	969,361
Deferred profit	720,086	607,672
Commercial paper and current portion of convertible notes and capital leases	610,030	908,439
Total current liabilities	3,150,308	2,950,115
Senior notes, convertible notes, and capital leases, less current portion	1,806,562	1,784,974
Income taxes payable	851,936	120,178
Other long-term liabilities	90,629	280,186
Total liabilities	5,899,435	5,135,453
Commitments and contingencies
Temporary equity, convertible notes	78,192	169,861
Stockholders’ equity:
Preferred stock, at par value of $0.001 per share; authorized - 5,000 shares, none outstanding	0	0
Common stock, at par value of $0.001 per share; authorized - 400,000 shares; issued and outstanding 156,892 shares at June 24, 2018, and 161,723 shares at June 25, 2017	157	162
Additional paid-in capital	6,144,425	5,845,485
Treasury stock, at cost, 119,679 shares at June 24, 2018, and 105,569 shares at June 25, 2017	(7,846,476)	(5,216,187)
Accumulated other comprehensive loss	(57,449)	(61,700)
Retained earnings	8,261,194	6,249,691
Total stockholders’ equity	6,501,851	6,817,451
Total liabilities and stockholders’ equity	$ 12,479,478	$ 12,122,765

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 24, 2018	Jun. 25, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 5,343	$ 5,103
Preferred stock, par value (usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	156,892,000	161,723,000
Common stock, shares outstanding	156,892,000	161,723,000
Treasury stock, shares	119,679,000	105,569,000

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Jun. 24, 2018	Jun. 25, 2017	Jun. 26, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,380,681,000	$ 1,697,763,000	$ 914,049,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	326,395,000	306,905,000	291,028,000
Deferred income taxes	3,046,000	104,936,000	(49,003,000)
Equity-based compensation expense	172,216,000	149,975,000	142,348,000
Income tax benefit (expense) on equity-based compensation plans	0	38,747,000	(1,023,000)
Excess tax (benefits) expense on equity-based compensation plans	0	(38,635,000)	1,020,000
Impairment of investments	42,456,000	0	0
(Gains) losses on extinguishment of debt, net	(542,000)	36,252,000	0
Amortization of note discounts and issuance costs	14,428,000	25,282,000	70,522,000
Gain on sale of assets	0	(163,000)	(15,223,000)
Other, net	34,260,000	19,052,000	48,788,000
Changes in operating asset and liability accounts:
Accounts receivable, net of allowance	(501,628,000)	(411,287,000)	(169,034,000)
Inventories	(701,008,000)	(307,875,000)	(66,371,000)
Prepaid expenses and other assets	(14,391,000)	(27,269,000)	(46,664,000)
Trade accounts payable	35,655,000	126,819,000	41,645,000
Deferred profit	112,413,000	258,473,000	27,129,000
Accrued expenses and other liabilities	751,766,000	50,307,000	161,066,000
Net cash provided by operating activities	2,655,747,000	2,029,282,000	1,350,277,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and intangible assets	(273,469,000)	(157,419,000)	(175,330,000)
Business acquisition, net of cash acquired	(115,697,000)	0	0
Purchases of available-for-sale securities	(2,532,829,000)	(4,581,851,000)	(874,998,000)
Proceeds from maturities of available-for-sale securities	650,255,000	891,002,000	642,505,000
Proceeds from sales of available-for-sale securities	5,035,460,000	1,806,963,000	1,031,321,000
Proceeds from sale of assets	0	1,291,000	79,730,000
Transfer of restricted cash and investments	(96,000)	(5,784,000)	(112,381,000)
Other, net	(15,184,000)	(12,815,000)	1,636,000
Net cash provided by (used for) investing activities	2,748,440,000	(2,058,613,000)	592,483,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt and capital lease obligations and payments for debt issuance costs	(755,694,000)	(1,688,313,000)	(451,497,000)
Net proceeds from issuance of long-term debt	0	0	2,338,144,000
Net proceeds from issuance of commercial paper	359,604,000	0	0
Proceeds from borrowings on revolving credit facility	750,000,000	0	0
Repayment of borrowings on revolving credit facility	(750,000,000)	0	0
Excess tax benefits (expense) on equity-based compensation plans	0	38,635,000	(1,020,000)
Treasury stock purchases	(2,653,249,000)	(811,672,000)	(158,389,000)
Dividends paid	(307,609,000)	(243,495,000)	(190,402,000)
Reissuances of treasury stock related to employee stock purchase plan	75,624,000	59,663,000	55,992,000
Proceeds from issuance of common stock	9,258,000	12,913,000	3,405,000
Other, net	9,000	(125,000)	(488,000)
Net cash (used for) provided by financing activities	(3,272,057,000)	(2,632,394,000)	1,595,745,000
Effect of exchange rate changes on cash and cash equivalents	2,593,000	(63,000)	(722,000)
Net increase (decrease) in cash and cash equivalents	2,134,723,000	(2,661,788,000)	3,537,783,000
Cash and cash equivalents at beginning of year	2,377,534,000	5,039,322,000	1,501,539,000
Cash and cash equivalents at end of year	4,512,257,000	2,377,534,000	5,039,322,000
Schedule of non-cash transactions
Accrued payables for stock repurchases	116,000	0	0
Accrued payables for capital expenditures	24,001,000	17,285,000	27,953,000
Dividends payable	174,372,000	72,738,000	48,052,000
Transfers of finished goods inventory to property and equipment, net	57,886,000	46,855,000	37,822,000
Supplemental disclosures:
Cash payments for interest	84,401,000	104,619,000	58,810,000
Cash payments for income taxes, net	$ 142,800,000	$ 28,104,000	$ 39,745,000

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Income(Loss)	Retained Earnings
Beginning balance (shares) at Jun. 28, 2015		158,531
Beginning balance at Jun. 28, 2015	$ 5,103,144	$ 159	$ 5,366,773	$ (4,302,847)	$ (57,796)	$ 4,096,855
Increase (Decrease) in Stockholders' Equity
Sale of common stock (shares)		2,863
Sale of common stock	3,405	$ 2	3,403
Purchase of treasury stock (shares)		(2,130)
Purchase of treasury stock	(155,134)	$ (2)		(155,132)
Income tax benefits on equity-based compensation plans	(1,023)		(1,023)
Reissuance of treasury stock (shares)		937
Reissuance of treasury stock	55,992	$ 1	27,329	28,662
Equity-based compensation expense	142,348		142,348
Effect of conversion of convertible notes	(188)		(188)
Reclassification from temporary to permanent equity	34,256		34,256
Net income	914,049					914,049
Other comprehensive income	(11,537)				(11,537)
Cash dividends declared	(190,795)					(190,795)
Ending balance (shares) at Jun. 26, 2016		160,201
Ending balance at Jun. 26, 2016	5,894,517	$ 160	5,572,898	(4,429,317)	(69,333)	4,820,109
Increase (Decrease) in Stockholders' Equity
Sale of common stock (shares)		2,661
Sale of common stock	12,913	$ 3	12,910
Purchase of treasury stock (shares)		(5,322)
Purchase of treasury stock	(811,672)	$ (5)		(811,667)
Income tax benefits on equity-based compensation plans	38,747		38,747
Reissuance of treasury stock (shares)		825
Reissuance of treasury stock	59,663	$ 1	34,865	24,797
Equity-based compensation expense	149,975		149,975
Effect of conversion of convertible notes (shares)		1,388
Effect of conversion of convertible notes	(1,595)	$ 1	(1,596)
Exercise of warrants (shares)		1,970
Exercise of warrants	(3)	$ 2	(5)
Reclassification from temporary to permanent equity	37,691		37,691
Net income	1,697,763					1,697,763
Other comprehensive income	7,633				7,633
Cash dividends declared	(268,181)					(268,181)
Ending balance (shares) at Jun. 25, 2017		161,723
Ending balance at Jun. 25, 2017	6,817,451	$ 162	5,845,485	(5,216,187)	(61,700)	6,249,691
Increase (Decrease) in Stockholders' Equity
Adoption of ASU 2016-09	$ 40,065					40,065
Purchase of treasury stock (shares)	(1,779)
Beginning balance (shares) at Jun. 25, 2017		161,723
Beginning balance at Jun. 25, 2017	$ 6,817,451	$ 162	5,845,485	(5,216,187)	(61,700)	6,249,691
Increase (Decrease) in Stockholders' Equity
Sale of common stock (shares)		1,934
Sale of common stock	9,258	$ 2	9,256
Purchase of treasury stock (shares)		(14,786)
Purchase of treasury stock	(2,653,365)	$ (15)		(2,653,350)
Reissuance of treasury stock (shares)		677
Reissuance of treasury stock	75,624	$ 1	52,562	23,061
Equity-based compensation expense	172,216		172,216
Effect of conversion of convertible notes (shares)		10,199
Effect of conversion of convertible notes	(26,766)	$ 10	(26,776)
Effect of bond hedge, cash in lieu of shares (shares)		(2,855)
Effect of bond hedge, cash in lieu of shares	10	$ (3)	13
Reclassification from temporary to permanent equity	91,669		91,669
Net income	2,380,681					2,380,681
Other comprehensive income	4,251				4,251
Cash dividends declared	(409,243)					(409,243)
Ending balance (shares) at Jun. 24, 2018		156,892
Ending balance at Jun. 24, 2018	$ 6,501,851	$ 157	$ 6,144,425	$ (7,846,476)	$ (57,449)	$ 8,261,194

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017	Jun. 26, 2016
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (usd per share)	$ 2.55	$ 1.65	$ 1.2

Company and Industry Information	12 Months Ended
Company and Industry Information	Jun. 24, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Company and Industry Information	Company and Industry Information The Company designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Semiconductor manufacturing, our customers’ business, involves the complete fabrication of multiple dies or integrated circuits on a wafer. This involves the repetition of a set of core processes and can require hundreds of individual steps. Fabricating these devices requires highly sophisticated process technologies to integrate an increasing array of new materials with precise control at the atomic scale. Along with meeting technical requirements, wafer processing equipment must deliver high productivity and be cost-effective. The Company sells its products and services primarily to companies involved in the production of semiconductors in the United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. The semiconductor industry is cyclical in nature and has historically experienced periodic downturns and upturns. Today’s leading indicators of changes in customer investment patterns, such as electronics demand, memory pricing, and foundry utilization rates, may not be any more reliable than in prior years. Demand for the Company’s equipment can vary significantly from period to period as a result of various factors including, but not limited to economic conditions; supply, demand, and prices for semiconductors; customer capacity requirements; and the Company’s ability to develop and market competitive products. For these and other reasons, the Company’s results of operations for fiscal years 2018, 2017, and 2016 may not necessarily be indicative of future operating results. Reclassification: Certain amounts for the fiscal years 2017 and 2016 Consolidated Statement of Cash Flows, and certain amounts within the 2017 footnotes have been reclassified to conform to the fiscal year 2018 presentation.

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Jun. 24, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates, and assumptions that could affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience and on various other assumptions it believes to be applicable and evaluates them on an ongoing basis to ensure they remain reasonable under current conditions. Actual results could differ significantly from those estimates. Revenue Recognition: The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title has passed or services have been rendered, the selling price is fixed or determinable, collection of the receivable is reasonably assured, and the Company has received customer acceptance or is otherwise released from its customer acceptance obligations. If terms of the sale provide for a lapsing customer acceptance period, the Company recognizes revenue upon the expiration of the lapsing acceptance period or customer acceptance, whichever occurs first. If the practices of a customer do not provide for a written acceptance or the terms of sale do not include a lapsing acceptance provision, the Company recognizes revenue when it can be reliably demonstrated that the delivered system meets all of the agreed-to customer specifications. In situations with multiple deliverables, the Company recognizes revenue upon the delivery of the separate elements to the customer and when the Company receives customer acceptance or is otherwise released from its customer acceptance obligations. The Company allocates revenue from multiple-element arrangements among the separate elements using their relative selling prices based on the Company’s best estimate of selling price. The Company’s sales arrangements do not include a general right of return. The maximum revenue recognized on a delivered element is limited to the amount that is not contingent upon the delivery of additional items. The Company generally recognizes revenue related to sales of spare parts and system upgrade kits upon shipment. The Company generally recognizes revenue related to services upon completion of the services requested by a customer order. The Company recognizes revenue for extended maintenance service contracts with a fixed payment amount on a straight-line basis over the term of the contract. When goods or services have been delivered to the customer but all conditions for revenue recognition have not been met, deferred revenue and deferred costs are recognized in deferred profit on the Consolidated Balance Sheet. Inventory Valuation: Inventories are stated at the lower of cost or net realizable value using standard costs that approximate actual costs on a first-in, first-out basis. Finished goods are reported as inventories until the point of title transfer to the customer. Unless specified in the terms of sale, title generally transfers at the physical transfer of the products to the freight carriers. Transfer of title for shipments to Japanese customers occurs at the time of customer acceptance. Management evaluates the need to record adjustments for impairment of inventory at least quarterly. The Company’s policy is to assess the valuation of all inventories including manufacturing raw materials, work-in-process, finished goods, and spare parts in each reporting period. Obsolete inventory or inventory in excess of management’s estimated usage requirement is written down to its estimated market value if less than cost. Estimates of market value include but are not limited to management’s forecasts related to the Company’s future manufacturing schedules, customer demand, technological and/or market obsolescence, general semiconductor market conditions, and possible alternative uses. If future customer demand or market conditions are less favorable than the Company’s projections, additional inventory write-downs may be required and would be reflected in cost of goods sold in the period in which the revision is made. Warranty: Typically, the sale of semiconductor capital equipment includes providing parts and service warranties to customers as part of the overall price of the system. The Company provides standard warranties for its systems. The Company records a provision for estimated warranty expenses to cost of sales for each system when it recognizes revenue. The Company does not maintain general or unspecified reserves; all warranty reserves are related to specific systems. All actual or estimated parts and labor costs incurred in subsequent periods are charged to those established reserves on a system-by-system basis. While the Company periodically monitors the performance and cost of warranty activities, if actual costs incurred are different than its estimates, the Company may recognize adjustments to provisions in the period in which those differences arise or are identified. In addition to the provision of standard warranties, the Company offers customer-paid extended warranty services. Revenues for extended maintenance and warranty services with a fixed payment amount are recognized on a straight-line basis over the term of the contract. Related costs are recorded as incurred. Equity-based Compensation — Employee Stock Plans: The Company recognizes the fair value of equity-based compensation expense. The Company determines the fair value of its RSUs, excluding market-based performance RSUs, based upon the fair market value of Company’s Common Stock at the date of grant, discounted for dividends. The Company estimates the fair value of its market-based performance RSUs using a Monte Carlo simulation model at the date of the grant. The Company estimates the fair value of its stock options using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award. The Company amortizes the fair value of equity-based awards over the vesting periods of the award, and the Company has elected to use the straight-line method of amortization. Income Taxes: Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. Realization of its net deferred tax assets is dependent on future taxable income. The Company believes it is more likely than not that such assets will be realized; however, ultimate realization could be negatively impacted by market conditions and other variables not known or anticipated at this time. In the event that the Company determined that it will not be able to realize all or part of its net deferred tax assets, an adjustment will be charged to earnings in the period such determination was made. Likewise, if the Company later determines that it is more likely than not that the deferred tax assets will be realized, then the previously provided valuation allowance will be reversed. The Company recognizes the benefit from a tax position only if it is more likely than not that the position will be sustained upon audit based solely on the technical merits of the tax position. The Company’s policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. Goodwill and Intangible Assets: The valuation of intangible assets acquired in a business combination requires the use of management estimates including but not limited to estimating future expected cash flows from assets acquired and determining discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. Estimates associated with the accounting for acquisitions may change as additional information becomes available. Goodwill represents the amount by which the purchase price in each business combination exceeds the fair value of the net tangible and identifiable intangible assets acquired. Each component of the Company for which discrete financial information is available and for which management regularly reviews the results of operations is considered a reporting unit. All goodwill acquired in a business combination is assigned to one or more reporting units as of the acquisition date. Goodwill is assigned to the Company’s reporting units that are expected to benefit from the synergies of the combination. The goodwill assigned to a reporting unit is the difference between the acquisition consideration assigned to the reporting unit on a relative fair value basis and the fair value of acquired assets and liabilities that can be specifically attributed to the reporting unit. The Company tests goodwill and identifiable intangible assets with indefinite useful lives for impairment at least annually. The Company amortizes intangible assets with estimable useful lives over their respective estimated useful lives, and the Company reviews for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable and the carrying amount exceeds its fair value. The Company reviews goodwill at least annually for impairment. If certain events or indicators of impairment occur between annual impairment tests, the Company would perform an impairment test at that date. In testing for a potential impairment of goodwill, the Company (1) allocates goodwill to its reporting units to which the acquired goodwill relates, (2) estimates the fair value of its reporting units, and (3) determines the carrying value (book value) of those reporting units. Furthermore, if the estimated fair value of a reporting unit is less than the carrying value, the Company must estimate the fair value of all identifiable assets and liabilities of that reporting unit, in a manner similar to a purchase price allocation for an acquired business. This can require independent valuations of certain internally generated and unrecognized intangible assets such as in-process R&D and developed technology. Only after this process is completed can the amount of goodwill impairment, if any, be determined. In the Company’s goodwill impairment process, it first assesses qualitative factors to determine whether it is necessary to perform a quantitative analysis. The Company does not calculate the fair value of a reporting unit unless the Company determines, based on a qualitative assessment, that it is more-likely-than-not that its fair value is less than its carrying amount. The Company performs an annual goodwill impairment analysis as of the first day of its fourth fiscal quarter. The Company did not record impairments of goodwill during the years ended June 24, 2018, June 25, 2017, or June 26, 2016. The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. The Company determines the fair value of its reporting units by using an income approach. Under the income approach, the Company determines fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. In estimating the fair value of a reporting unit, the Company makes estimates and judgments about the future cash flows of its reporting units, including estimated growth rates and assumptions about the economic environment. Although the Company’s cash flow forecasts are based on assumptions that are consistent with the plans and estimates it is using to manage the underlying businesses, there is significant judgment involved in determining the cash flows attributable to a reporting unit. In addition, the Company makes certain judgments about allocating shared assets to the estimated balance sheets of its reporting units. Changes in judgment on these assumptions and estimates could result in a goodwill impairment charge. As a result, several factors could result in impairment of a material amount of the Company’s goodwill balance in future periods, including but not limited to: (1) weakening of the global economy, weakness in the semiconductor equipment industry, or failure of the Company to reach its internal forecasts, which could impact the Company’s ability to achieve its forecasted levels of cash flows and reduce the estimated discounted cash flow value of its reporting units and (2) a decline in the Company’s stock price and resulting market capitalization and to the extent the Company determines that the decline is sustained and indicates a reduction in the fair value of the Company’s reporting units below their carrying value. Further, the value assigned to intangible assets, other than goodwill, is based on estimates and judgments regarding expectations such as the success and lifecycle of products and technology acquired. If actual product acceptance differs significantly from the estimates, the Company may be required to record an impairment charge to write down the asset to its realizable value. Impairment of Long-lived Assets (Excluding Goodwill): The Company routinely considers whether indicators of impairment of long-lived assets are present. If such indicators are present, the Company determines whether the sum of the estimated undiscounted cash flows attributable to the assets is less than their carrying value. If the sum is less, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values. Fair value is determined by discounted future cash flows, appraisals, or other methods. The Company recognizes an impairment charge to the extent the present value of anticipated net cash flows attributable to the asset are less than the asset’s carrying value. The fair value of the asset then becomes the asset’s new carrying value, which the Company depreciates over the remaining estimated useful life of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value. For the periods presented, there was no impairment of long-lived assets. Fiscal Year: The Company follows a 52/53-week fiscal reporting calendar, and its fiscal year ends on the last Sunday of June each year. The Company’s most recent fiscal years ended on June 24, 2018, June 25, 2017, and June 26, 2016, and each included 52 weeks. Principles of Consolidation: The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Cash Equivalents and Investments: Investments purchased with an original maturity of three months or less are considered cash equivalents. The Company also invests in certain mutual funds, which include equity and fixed- income securities, related to its obligations under its deferred compensation plan, and such investments are classified as trading securities on the consolidated balance sheets. All of the Company’s other investments are classified as available-for-sale at the respective balance sheet dates. The Company accounts for its investment portfolio at fair value. 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 Statement of Operations. The investments classified as available-for-sale are recorded at fair value based upon quoted market prices, and difference between the cost and fair value of available-for-sale securities is presented as a component of accumulated other comprehensive income (loss). Unrealized losses on available-for-sale securities are charged against other income (expense) when a decline in fair value is determined to be other than temporary. The Company considers several factors to determine whether a loss is other than temporary. These factors include but are not limited to (1) the extent to which the fair value is less than cost basis, (2) the financial condition and near-term prospects of the issuer, (3) the length of time a security is in an unrealized loss position, and (4) the Company’s ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The Company’s ongoing consideration of these factors could result in additional impairment charges in the future, which could adversely affect its results of operation. An other-than-temporary impairment is triggered when there is an intent to sell the security, it is more-likely-than-not that the security will be required to be sold before recovery, or the security is not expected to recover the entire amortized cost basis of the security. Other-than-temporary impairments attributed to credit losses are recognized in the income statement. The specific identification method is used to determine the realized gains and losses on investments. The Company recorded a $42.5 million other-than-temporary impairment charge during the year ended June 24, 2018. No other-than-temporary impairment charges were recognized during the years ended June 25, 2017 or June 26, 2016. Allowance for Doubtful Accounts: The Company evaluates its allowance for doubtful accounts based on a combination of factors. In circumstances where specific invoices are deemed uncollectible, the Company provides a specific allowance for bad debt against the amount due to reduce the net recognized receivable to the amount it reasonably believes will be collected. The Company also provides allowances based on its write-off history. Property and Equipment: Property and equipment is stated at cost. Equipment is depreciated by the straight-line method over the estimated useful lives of the assets, generally three to five years. Furniture and fixtures are depreciated by the straight-line method over the estimated useful lives of the assets, generally five years. Software is amortized by the straight-line method over the estimated useful lives of the assets, generally three to five years. Buildings are depreciated by the straight-line method over the estimated useful lives of the assets, generally twenty-five years. Leasehold improvements are generally amortized by the straight-line method over the shorter of the life of the related asset or the term of the underlying lease. Amortization of capital leases is included with depreciation expense. Derivative Financial Instruments: In the normal course of business, the Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations. The Company’s policy is to mitigate the effect of these exchange rate fluctuations on certain foreign currency denominated business exposures. The Company has a policy that allows the use of derivative financial instruments to hedge foreign currency exchange rate fluctuations on forecasted revenue and expenses and net monetary assets or liabilities denominated in various foreign currencies. The Company carries derivative financial instruments (derivatives) on the balance sheet at their fair values. The Company does not use derivatives for trading or speculative purposes. The Company does not believe that it is exposed to more than a nominal amount of credit risk in its interest rate and foreign currency hedges, as counterparties are large, global and well-capitalized financial institutions. The Company’s exposures are in liquid currencies (Japanese yen, Swiss francs, euros, Taiwanese dollars, Chinese renminbi, Singapore dollars, and Korean won), so there is minimal risk that appropriate derivatives to maintain the Company’s hedging program would not be available in the future. To hedge foreign currency risks, the Company uses foreign currency exchange forward and option contracts, where possible and prudent. These hedge contracts are valued using standard valuation formulas with assumptions about future foreign currency exchange rates derived from existing exchange rates, interest rates, and other market factors. The Company considers its most current forecast in determining the level of foreign currency denominated revenue and expenses to hedge as cash flow hedges. The Company combines these forecasts with historical trends to establish the portion of its expected volume to be hedged. The revenue and expenses are hedged and designated as cash flow hedges to protect the Company from exposures to fluctuations in foreign currency exchange rates. If the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the related hedge gains and losses on the cash flow hedge are reclassified from accumulated other comprehensive income (loss) to other income (expense), net on the Consolidated Statement of Operations at that time. Guarantees: The Company has certain operating leases that contain provisions whereby the properties subject to the operating leases may be remarketed at lease expiration. The Company has guaranteed to the lessor an amount approximating the lessor’s investment in the property. Also, the Company’s guarantees generally include certain indemnifications to its lessors under operating lease agreements for environmental matters, potential overdraft protection obligations to financial institutions related to one of the Company’s subsidiaries, indemnifications to the Company’s customers for certain infringement of third-party intellectual property rights by its products and services, and the Company’s warranty obligations under sales of its products. Foreign Currency Translation: The Company’s non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, primarily generate and expend cash in their local currency. Accordingly, all balance sheet accounts of these local functional currency subsidiaries are translated into U.S. dollars at the fiscal period-end exchange rate, and income and expense accounts are translated into U.S. dollars using average rates in effect for the period, except for costs related to those balance sheet items that are translated using historical exchange rates. The resulting translation adjustments are recorded as cumulative translation adjustments and are a component of accumulated other comprehensive income (loss). Translation adjustments are recorded in other income (expense), net, where the U.S. dollar is the functional currency.

Recent Accounting Pronouncements

12 Months Ended

Jun. 24, 2018

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Recently Adopted

In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” This ASU amended existing guidance to require that deferred income tax assets and liabilities be classified as non-current in a classified balance sheet and eliminates the prior guidance which required an entity to separate deferred tax assets and liabilities into a current amount and a non-current amount in a classified balance sheet. The Company adopted this standard prospectively in the first quarter of fiscal year 2018. The implementation resulted in a net reduction of prepaid expense and other current assets of $49.7 million, accrued expense and other current liabilities of $5.3 million, and other long-term liabilities of $39.4 million; and an increase in other assets of $5.0 million in the Company’s Condensed Consolidated Balance Sheet, and had no impact on cash provided by or used in operations for any period presented.

In March 2016, the FASB released ASU 2016-9, “Compensation – Stock Compensation.” Key changes in the amendment include:


•	entities will be required to recognize all excess tax benefits or deficiencies as an income tax benefit or expense in the income statement, eliminating additional paid in capital (“APIC”) pools;


•	entities will no longer be required to delay recognition of excess tax benefits until they are realized;


•	entities will be required to classify the excess tax benefits as an operating activity in the statement of cash flows;


•	entities will be allowed to elect an accounting policy to either estimate the number of forfeitures or account for forfeitures as they occur;


•	entities can withhold up to the maximum individual statutory tax rate without classifying the awards as a liability; and


•	the cash paid to satisfy the statutory income tax withholding obligations shall be classified as a financing activity in the statement of cash flows.

The Company adopted this standard in the first quarter of fiscal year 2018. As a result of the adoption, the Company recorded a $40.1 million cumulative-effect adjustment to retained earnings for the recognition of previously unrecognized excess tax benefits for all years prior to the adoption. As required by the standard update, the amendment was applied prospectively to recognize excess tax benefits or deficiencies in the income statement in the period of occurrence. Accordingly, the provision for income taxes for the fiscal year ended June 24, 2018 included excess tax benefits of $52.7 million that decreased the income tax provision. Additionally, the Company has elected to apply the change in cash flow classification on a prospective basis. The Company has elected to continue to estimate the number of forfeitures expected to occur to determine the amount of compensation cost to be recognized each period. The Company has elected to adopt the effects of the standard update with regard to the income tax withholdings obligations on a prospective basis. The impact of the adoption of the standard applicable to income tax withholdings was not material during the fiscal year ended June 24, 2018.

In August 2017, the FASB released ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” The new guidance is intended to: (1) more closely align hedge accounting with an entity’s risk management strategies, (2) simplify the application of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness, and (3) increase transparency around the scope and results of hedging programs. The Company is required to adopt the standard in the first quarter of fiscal year 2020, using a modified-retrospective approach for any cash flow or net investment hedges that exist on the date of adoption. The Company elected to early adopt the standard in the third quarter of fiscal year 2018. The cumulative-effect adjustment to eliminate ineffectiveness is not material to the Company's previously issued Consolidated Financial Statements. The presentation and disclosure have been modified on a prospective basis, as required by the standard update.

Updates Not Yet Effective

In May 2014, the FASB released ASU 2014-9, “Revenue from Contracts with Customers,” to supersede nearly all existing revenue recognition guidance under GAAP. The FASB issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016 and December 2016 within ASU 2015–14, ASU 2016–08, ASU 2016–10, ASU 2016–12 and ASU 2016–20, respectively. The core principle of the standard is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The new standard defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation.

The Company is required to adopt these standards starting in the first quarter of fiscal year 2019 using either of two methods: (1) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the standard or (2) retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application and providing certain additional disclosures as defined per the standard. The Company will adopt this new guidance using the modified retrospective transition method. Management has substantially completed its evaluation of existing contracts and the impact to the Company’s Consolidated Financial Statements and disclosures, business processes, systems, and controls. The Company believes that the timing of revenue recognition for certain of its systems will generally be earlier than under existing revenue guidance. The Company expects the impact of the initial adoption will result in a net decrease to its deferred profit balances, which is a component of total current liabilities estimated between $100 million and $200 million.

In January 2016, the FASB released ASU 2016-1, “Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Financial Liabilities.” The FASB issued a subsequent amendment to the initial guidance in February 2018 within ASU 2018-03. These amendments change the accounting for and financial statement presentation of equity investments, other than those accounted for under the equity method of accounting or those that result in consolidation of the investee. The amendments provide clarity on the measurement methodology to be used for the required disclosure of fair value of financial instruments measured at amortized cost on the balance sheet and clarifies that an entity should evaluate the need for a valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets, among other changes. The Company is required to adopt these standards starting in the first quarter of fiscal year 2019 and does not anticipate that implementation will have a material impact on its Consolidated Financial Statements.

In January 2016, the FASB released ASU 2016-2, “Leases.” The FASB issued a subsequent amendment to the initial guidance in January 2018 within ASU 2018-01. The core principle of the standard requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. The amendment offers specific accounting guidance for a lessee, a lessor, and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company is required to adopt these standards starting in the first quarter of fiscal year 2020 using a modified-retrospective approach on the earliest period presented. The Company is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements.

In June 2016, the FASB released ASU 2016-13, “Financial Instruments – Credit Losses.” The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including but not limited to available-for-sale debt securities and accounts receivable. The Company is required to adopt this standard starting in the first quarter of fiscal year 2021 using a modified-retrospective approach. Early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements.

In August 2016, the FASB released ASU 2016-15, “Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments.” The amendment provides and clarifies guidance on the classification of certain cash receipts and cash payments in the statement of cash flows to eliminate diversity in practice. The Company is required to adopt the standard update in the first quarter of fiscal year 2019, with a retrospective transition method required. The Company is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements.

In October 2016, the FASB released ASU 2016-16, “Income Tax – Intra-Entity Transfers of Assets Other than Inventory.” This standard update improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Early adoption is permitted. The Company is required to adopt the standard in the first quarter of fiscal year 2019 using a modified-retrospective approach through a cumulative-effect adjustment directly to retained earnings. The Company is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements.

In November 2016, the FASB released ASU 2016-18, “Statement of Cash Flows – Restricted Cash.” This standard update requires that restricted cash and restricted cash equivalents be included in cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company is required to adopt this standard in the first quarter of fiscal year 2019, with a retrospective transition method required. Early adoption is permitted. At June 24, 2018, the Company had $256.3 million classified as restricted cash and investments on its Consolidated Balance Sheet which will be recognized as beginning-of-period cash and cash equivalents in the Company’s fiscal year 2019 Consolidated Statement of Cash Flows. Additionally the Company expects cash provided by investment activities for the twelve months ended June 24, 2018 and June 25, 2017 will increase by $0.1 million and $5.8 million, respectively.

In February 2018, the FASB released ASU 2018-2, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This standard update addresses a specific consequence of U.S tax reform and allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from U.S. tax reform. Consequently, the update eliminates the stranded tax effects that were created as a result of the historical U.S. federal corporate income tax rate to the newly enacted U.S. federal corporate income tax rate. The Company is required to adopt this standard in the first quarter of fiscal year 2020, with early adoption permitted. The amendments in this update should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S federal corporate income tax rate in regards to U.S. tax reform is recognized. The Company is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements.

Equity-based Compensation Plans

12 Months Ended

Jun. 24, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation Plans

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, of the Company’s Common Stock. An option is a right to purchase Common Stock at a set price. An RSU award is an agreement to issue a set number of shares of Common Stock at the time of vesting. The Company’s options and RSU awards typically vest over a period of three years or less. The Company also has an employee stock purchase plan that allows employees to purchase its Common Stock at a discount through payroll deductions.

The Lam Research Corporation 2007 Stock Incentive Plan, as amended and restated, 2011 Stock Incentive Plan, as amended and restated, and the 2015 Stock Incentive Plan (collectively the “Stock Plans”), provide for the grant of non-qualified equity-based awards to eligible employees, consultants and advisors, and non-employee directors of the Company and its subsidiaries. The 2015 Stock Incentive Plan was approved by shareholders authorizing up to 18,000,000 shares available for issuance under the plan. Additionally, 1,232,068 shares that remained available for grants under the Company’s 2007 Stock Incentive Plan were added to the shares available for issuance under the 2015 Stock Incentive Plan. As of June 24, 2018, there were a total of 10,335,291 shares available for future issuance under the Stock Plans. New shares are issued from the Company’s balance of authorized Common Stock from the 2015 Stock Incentive Plan to satisfy stock option exercises and vesting of awards.

The Company recognized the following equity-based compensation expense and benefits in the Consolidated Statements of Operations:



	Year Ended
	June 24, 2018		June 25, 2017		June 26, 2016
	(in thousands)
Equity-based compensation expense	$	172,216	$	149,975	$	142,348
Income tax benefit recognized related to equity-based compensation	$	87,505	$	38,381	$	37,814
Income tax benefit realized from the exercise and vesting of options and RSUs	$	90,297	$	92,749	$	67,756

The estimated fair value of the Company’s equity-based awards, less expected forfeitures, is amortized over the awards’ vesting terms on a straight-line basis. In the first quarter of fiscal year 2018, the Company adopted ASU 2016-9, “Compensation – Stock Compensation,” as discussed further in Note 3 - Recent Accounting Pronouncements.

Stock Options

The following table summarizes stock option activity:



	Options Outstanding
	Number of Shares		Weighted-Average Exercise Price
June 28, 2015	835,832		$	37.44
Granted	196,167		$	75.57
Exercised	(123,726	)	$	24.92
Forfeited or expired	(862	)	$	21.43
June 26, 2016	907,411		$	47.41
Granted	90,128		$	119.67
Exercised	(389,460	)	$	33.92
Forfeited or expired	(14,020	)	$	69.81
June 25, 2017	594,059		$	66.69
Granted	63,980		$	190.07
Exercised	(166,481	)	$	55.62
Forfeited or expired	(8,630	)	$	84.44
June 24, 2018	482,928		$	86.53

Outstanding and exercisable options presented by price range at June 24, 2018, were as follows:



Range of Exercise Prices	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number of Options Outstanding	Weighted-Average Remaining Life (Years)	Weighted-Average Exercise Price		Number of Options Exercisable	Weighted-Average Remaining Life (Years)	Weighted-Average Exercise Price
$11.09-$23.59	33,918	1.49	$	18.97	33,918	1.49	$	18.97
$28.73-$35.68	39,060	2.63	$	31.29	39,060	2.63	$	31.29
$42.61-$51.76	75,415	2.03	$	47.30	75,415	2.03	$	47.30
$75.57-$190.07	334,535	5.08	$	108.67	155,504	4.33	$	83.58
$11.09-$190.07	482,928	4.15	$	86.53	303,897	3.23	$	60.65

The fair value of the Company’s stock options granted during fiscal years 2018, 2017, and 2016 was estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award:



	Year Ended
	June 24, 2018		June 25, 2017		June 26, 2016
Expected volatility	34.66	%	28.85	%	33.08	%
Risk-free interest rate	2.53	%	1.92	%	1.27	%
Expected term (years)	4.74		4.75		4.79
Dividend yield	1.05	%	1.50	%	1.59	%

The year-end intrinsic value relating to stock options for fiscal years 2018, 2017, and 2016 is presented below:



	Year Ended
	June 24, 2018		June 25, 2017		June 26, 2016
	(in thousands)
Intrinsic value - options outstanding	$	43,563	$	50,551	$	31,643
Intrinsic value - options exercisable	$	34,661	$	36,396	$	29,112
Intrinsic value - options exercised	$	23,925	$	29,674	$	6,562

As of June 24, 2018, the Company had $5.4 million of total unrecognized compensation expense related to unvested stock options granted and outstanding which is expected to be recognized over a weighted-average remaining period of 2.2 years.

Restricted Stock Units

During the fiscal years 2018, 2017, and 2016, the Company issued both service-based RSUs and market-based performance RSUs (“PRSUs”). Market-based PRSUs generally vest three years from the grant date if certain performance criteria are achieved and require continued employment. Based upon the terms of such awards, the number of shares that can be earned over the performance periods is based on the Company’s Common Stock price performance compared to the market price performance of the Philadelphia Semiconductor Sector Index (“SOX”), ranging from 0% to 150% of target. The stock price performance or market price performance is measured using the closing price for the 50-trading days prior to the dates the performance period begins and ends. The target number of shares represented by the market-based PRSUs is increased by 2% of target for each 1% that Common Stock price performance exceeds the market price performance of the SOX index. The result of the vesting formula is rounded down to the nearest whole number. Total stockholder return is a measure of stock price appreciation in this performance period.

The following table summarizes restricted stock activity:



	Service-based RSUs Outstanding				Market-based RSUs Outstanding
	Number of Shares		Weighted-Average Grant Date Fair Value		Number of Shares		Weighted-Average Grant Date Fair Value
June 28, 2015	4,040,947		$	60.98	913,141		$	56.37
Granted	1,771,599		72.14		459,252		70.58
Vested	(2,445,902	)	54.91		(293,802	)	46.77
Forfeited or canceled	(110,131	)	69.17		—		—
June 26, 2016	3,256,513		$	71.34	1,078,591		$	63.12
Granted	1,224,877		114.13		435,694		111.75
Vested	(1,677,318	)	69.10		(592,321	)	46.67
Forfeited or canceled	(116,466	)	76.76		(59,509	)	66.81
June 25, 2017	2,687,606		$	92.01	862,455		$	83.83
Granted	964,391		183.97		285,866		170.15
Vested	(1,362,369	)	87.80		(407,024	)	76.88
Forfeited or canceled	(96,540	)	108.67		(47,571	)	91.36
June 24, 2018	2,193,088		$	134.34	693,726		$	104.59

The fair value of the Company’s service-based RSUs was calculated based on fair market value of the Company’s stock at the date of grant, discounted for dividends.

The fair value of the Company’s market-based PRSUs granted during fiscal years 2018, 2017, and 2016 was calculated using a Monte Carlo simulation model at the date of the grant. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award:



	Year Ended
	June 24, 2018		June 25, 2017		June 26, 2016
Expected volatility	34.07	%	27.48	%	29.81	%
Risk-free interest rate	2.35	%	1.55	%	0.97	%
Expected term (years)	2.92		2.92		2.92
Dividend yield	1.05	%	1.50	%	1.59	%

As of June 24, 2018, the Company had $247.7 million of total unrecognized compensation expense related to all unvested RSUs granted which is expected to be recognized over a weighted-average remaining period of 2.2 years.

ESPP

The Company has an employee stock purchase plan which allows employees to designate a portion of their base compensation to be deducted and used to purchase the Company’s Common Stock at a purchase price per share of 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. Unrecognized compensation costs associated with this plan are not considered material.

Other Income (Expense), Net

12 Months Ended

Jun. 24, 2018

Other Income and Expenses [Abstract]

Other Income (Expense), Net

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



	Year Ended
	June 24, 2018			June 25, 2017			June 26, 2016
	(in thousands)
Interest income	$	85,813		$	57,858		$	29,512
Interest expense	(97,387		)	(117,734		)	(134,773		)
Gains (losses) on deferred compensation plan related assets, net	14,692			17,880			(3,995		)
Loss on impairment of investments	(42,456		)	—			—
Gains (losses) on extinguishment of debt, net	542			(36,252		)	—
Foreign exchange (losses) gains, net	(3,382		)	(569		)	308
Other, net	(19,332		)	(11,642		)	(5,191		)
	$	(61,510	)	$	(90,459	)	$	(114,139	)

Interest income in the year ended June 24, 2018, increased compared to the years ended June 25, 2017, and June 26, 2016, primarily as a result of higher yield. Interest expense in the year ended June 24, 2018, decreased compared to the year ended June 25, 2017, primarily due to the conversions of 2018 and 2041 Convertible Notes as well as the retirement of the 2018 Convertible Notes in May 2018. Interest expense in the year ended June 25, 2017, decreased compared to the year ended June 26, 2016, primarily due to the retirement of the 2016 Convertible Note.

The gain on deferred compensation plan related assets in fiscal years 2018 and 2017, compared to a loss in fiscal year 2016 was driven by an improvement in the fair market value of the underlying funds.

The loss on impairment of investments in the year ended June 24, 2018 is the result of a decision to sell selected investments held in foreign jurisdictions in conjunction with the Company’s cash repatriation strategy following the December 2017 U.S. tax reform.

Net loss on extinguishment of debt realized in the year ended June 25, 2017, is primarily a result of the special mandatory redemption of the Senior Notes due 2023 and 2026, as well as the termination of the Term Loan Agreement.

Income Taxes

12 Months Ended

Jun. 24, 2018

Income Tax Disclosure [Abstract]

Income Taxes

On December 22, 2017, the “Tax Cuts & Jobs Act” (hereafter referred to as “U.S. tax reform”) was signed into law and is effective for the Company starting in the quarter ended December 24, 2017. U.S. tax reform reduces the U.S. federal statutory tax rate from 35% to 21%, mandates payment of a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings. The impact on income taxes due to a change in legislation is required under the authoritative guidance of Accounting Standards Codification (“ASC”) 740, Income Taxes, to be recognized in the period in which the law is enacted. In conjunction, the SEC issued Staff Accounting Bulletin (“SAB”) 118, which allows for the recording of provisional amounts related to U.S. tax reform and subsequent adjustments related to U.S. tax reform during an up to one-year measurement period that is similar to the measurement period used when accounting for business combinations. As such, there is significant activity in the fiscal year ended June 24, 2018, which reflects the change in legislation. Most of that activity has provisionally been recorded in the Company’s Consolidated Financial Statements in the period ended June 24, 2018, as the Company has not yet completed all of the accounting for the tax effects of enactment. The Company recorded what it believes to be a reasonable estimate and the provisional activity is subject to further adjustments under SAB 118, with the exception of revaluation of its deferred tax balances to reflect the new U.S. federal statutory tax rate, which is considered final and complete under SAB 118. In addition, for significant items for which the Company could not make a reasonable estimate, no provisional activity was recorded. The Company will continue to refine the provisional balances and adjustments may be made under SAB 118 during the measurement period as a result of future changes in interpretation, information available, assumptions made by the Company and/or issuance of additional guidance; these adjustments could be material.

During the December 2017 quarter, a one-time transition tax on accumulated unrepatriated foreign earnings, estimated at $991.3 million, was recognized associated with the December 2017 U.S. tax reform. This value is identified as provisional in the Consolidated Financial Statements for the period ended June 24, 2018, and is subject to future measurement period adjustments under SAB 118. Such an adjustment was made during the June 2018 quarter, incorporating new information into the estimate; the Company may make further adjustments as new information is made available. The revised estimate is now $883.0 million.

The components of income (loss) before income taxes were as follows:



	Year Ended
	June 24, 2018		June 25, 2017		June 26, 2016
	(in thousands)
United States	$	128,190	$	7,553	$	(113,607	)
Foreign	3,023,599		1,804,120		1,073,724
	$	3,151,789	$	1,811,673	$	960,117

Significant components of the provision (benefit) for income taxes attributable to income before income taxes were as follows:



	Year Ended
	June 24, 2018			June 25, 2017			June 26, 2016
	(in thousands)
Federal:
Current	$	630,148		$	(70,858	)	$	1,426
Deferred	12,871			99,700			(38,616		)
	643,019			28,842			(37,190		)
State:
Current	5,348			(963		)	2,892
Deferred	(3,273		)	(2,246		)	(7,600		)
	2,075			(3,209		)	(4,708		)
Foreign:
Current	132,566			85,479			90,752
Deferred	(6,552		)	2,798			(2,786		)
	126,014			88,277			87,966
Total provision for income taxes	$	771,108		$	113,910		$	46,068

Revaluation of the Company’s deferred tax balances to reflect the new U.S. federal statutory tax rate was recorded in the year ended June 24, 2018 and is considered final and complete under SAB 118. The computation of the one-time transition tax on accumulated unrepatriated foreign earnings was recorded on a provisional basis in the year ended June 24, 2018 and is therefore subject to potential measurement period adjustments under SAB 118. The amount recorded related to the revaluation of the Company’s deferred tax balance was $42.5 million. Also, an associated tax liability was remeasured at $52.7 million. The one-time transition tax is based on the Company’s total post-1986 earnings and profits (“E&P”) that was previously deferred from U.S. income taxes. The Company had previously accrued deferred taxes on a portion of this E&P. The Company has not yet completed the calculation of total post-1986 E&P and related income tax pools for its foreign subsidiaries. The Company recorded a provisional amount for the one-time transition tax of $883.0 million which was offset by the reversal of the associated previously accrued deferred taxes of $287.8 million. The net increase to tax expense recognized in the year ended June 24, 2018 was $595.2 million. The one-time transition tax may be elected to be paid over a period of eight years. The Company intends to make this election.

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. Significant components of the Company’s net deferred tax assets and liabilities were as follows:



	June 24, 2018			June 25, 2017
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	206,073		$	175,595
Allowances and reserves	118,559			170,752
Equity-based compensation	16,189			25,828
Inventory valuation differences	14,021			19,602
Prepaid cost sharing	65,644			133,831
Other	16,514			20,175
Gross deferred tax assets	437,000			545,783
Valuation allowance	(199,839		)	(114,011		)
Net deferred tax assets	237,161			431,772
Deferred tax liabilities:
Intangible assets	(21,558		)	(30,944		)
Convertible debt	(60,252		)	(153,047		)
Capital assets	(61,429		)	(72,727		)
Amortization of goodwill	(10,738		)	(15,582		)
Unremitted earnings of foreign subsidiaries	(6,656		)	(302,663		)
Other	(7,955		)	(9,844		)
Gross deferred tax liabilities	(168,588		)	(584,807		)
Net deferred tax assets (liabilities)	$	68,573		$	(153,035	)

The change in the gross deferred tax assets, gross deferred tax liabilities, and valuation allowance between fiscal year 2018 and 2017 is primarily due to deferred revaluation to reflect the new U.S. statutory tax rate and decreases related to allowances and reserves, prepaid cost sharing, and unremitted earnings of foreign subsidiaries.

Realization of the Company’s net deferred tax assets is based upon the weighting 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 deferred tax assets will be realized with the exception of $199.8 million primarily related to California deferred tax assets. At June 24, 2018, the Company continued to record a valuation allowance to offset the entire California deferred tax asset balance due to the single sales factor apportionment election resulting in lower taxable income in California.

At June 24, 2018, the Company had federal net operating loss carryforwards of $126.8 million. The majority of these losses will begin to expire in fiscal year 2019, and are subject to limitation on their utilization.

At June 24, 2018, the Company had state net operating loss carryforwards of $24.5 million. If not utilized, these losses will begin to expire in fiscal year 2020 and are subject to limitation on their utilization.

At June 24, 2018, the Company had state tax credit carryforwards of $285.9 million. Substantially all of these credits can be carried forward indefinitely.

As a result of U.S. tax reform, the Company revised its estimated annual effective tax rate to reflect the change in the U.S. federal statutory tax rate from 35% to 21%. As the Company has a fiscal year ending the last Sunday in June, it is subject to transitional tax rate rules. Therefore, a blended rate of 28.27% was computed as effective for the current fiscal year. The difference between the U.S. federal statutory tax rate of 28.27% and the Company’s effective tax rate for the year ended June 24, 2018 is primarily due to income in lower tax jurisdictions offset by the impact of U.S. tax reform.

A reconciliation of income tax expense provided at the federal statutory rate (28.27% in fiscal year 2018 and 35% in fiscal years 2017 and 2016) to actual income tax expense (benefit) is as follows:



	Year Ended
	June 24, 2018			June 25, 2017			June 26, 2016
	(in thousands)
Income tax expense computed at federal statutory rate	$	891,011		$	634,086		$	336,041
State income taxes, net of federal tax benefit	(50,585		)	(11,973		)	(14,070		)
Foreign income taxed at different rates	(939,808		)	(352,860		)	(265,123		)
Settlements and reductions in uncertain tax positions	(33,367		)	(144,519		)	—
Tax credits	(69,301		)	(37,713		)	(48,277		)
State valuation allowance, net of federal tax benefit	57,302			12,070			17,948
Equity-based compensation	(35,875		)	13,187			12,366
Other permanent differences and miscellaneous items	43,214			1,632			7,183
U.S. tax reform impacts	908,517			—			—
	$	771,108		$	113,910		$	46,068

In July 2015, the U.S. Tax Court issued an opinion favorable to Altera Corporation with respect to Altera’s litigation with the Internal Revenue Service. The litigation related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement with Altera’s foreign subsidiary. In its opinion, the U.S. Tax Court accepted Altera’s position of excluding stock-based compensation from its intercompany cost-sharing arrangement. In July 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the 2015 decision of the U.S. Tax Court. In August 2018, the opinion made by the U.S. Court of Appeals for the Ninth Circuit was withdrawn to allow time for a reconstituted panel to confer on the appeal. The Company is currently evaluating the impact, if any, of these subsequent events on the fiscal year 2019 Consolidated Financial Statements. The Company is unable to estimate the impact at this time.

Effective from fiscal year 2014 through 2017, the Company had a tax ruling in Switzerland for one of its foreign subsidiaries. The impact of the tax ruling decreased taxes by approximately $6.3 million and $4.3 million for fiscal year 2017 and 2016, respectively. The benefit of the tax ruling on diluted earnings per share was approximately $0.03 in fiscal year 2017 and $0.02 in fiscal year 2016. Effective fiscal year 2018, the Company has withdrawn its reduced tax rate ruling in Switzerland for this subsidiary due to the ruling being no longer necessary as the subsidiary meets the requirements to achieve the reduced tax rate under Swiss tax law.

Other significant items which are being evaluated by the Company but for which no estimate can currently be made and for which no provisional amounts were recorded in the Consolidated Financial Statements, include the impact of the GILTI provision of U.S. tax reform. The GILTI provision imposes taxes on foreign earnings in excess of a deemed return on tangible assets. This tax is effective for the Company after the end of the current fiscal year. However, the Company is evaluating whether deferred taxes should be recorded in relation to the GILTI provisions or if the tax should be recorded in the period in which it occurs. Based on current interpretation, the Company may choose either method as an accounting policy election. The Company has not yet decided on the accounting policy related to GILTI and will only do so after completion of the GILTI analysis. The provisions related to GILTI are subject to adjustment during the measurement period under SAB 118.

Earnings of the Company’s foreign subsidiaries included in consolidated retained earnings that are indefinitely reinvested in foreign operations aggregated to approximately $456.1 million at June 24, 2018. If these earnings were remitted to the United States, they would be subject to foreign withholding taxes of approximately $74.9 million at current statutory rates.

As of June 24, 2018, the total gross unrecognized tax benefits were $305.4 million, compared to $339.4 million as of June 25, 2017, and $417.4 million as of June 26, 2016. During fiscal year 2018, gross unrecognized tax benefits decreased by $34.0 million. The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $268.3 million, $247.6 million, and $323.4 million, as of June 24, 2018, June 25, 2017, and June 26, 2016, respectively. The aggregate changes in the balance of gross unrecognized tax benefits were as follows:




	(in thousands)
Balance as of June 28, 2015	$	363,552
Lapse of statute of limitations	(10,992		)
Increases in balances related to tax positions taken during prior periods	18,200
Decreases in balances related to tax positions taken during prior periods	(421		)
Increases in balances related to tax positions taken during current period	47,093
Balance as of June 26, 2016	417,432
Settlements and effective settlements with tax authorities	(6,691		)
Lapse of statute of limitations	(113,491		)
Increases in balances related to tax positions taken during prior periods	6,557
Decreases in balances related to tax positions taken during prior periods	(11,528		)
Increases in balances related to tax positions taken during current period	47,168
Balance as of June 25, 2017	339,447
Settlements and effective settlements with tax authorities	(693		)
Lapse of statute of limitations	(88,837		)
Increases in balances related to tax positions taken during prior periods	2,044
Decreases in balances related to tax positions taken during prior periods	(1,320		)
Increases in balances related to tax positions taken during current period	54,772
Balance as of June 24, 2018	$	305,413

The Company recognizes interest expense and penalties related to the above unrecognized tax benefits within income tax expense. The Company had accrued $13.0 million, $15.7 million, and $42.4 million cumulatively for gross interest and penalties as of June 24, 2018, June 25, 2017, and June 26, 2016, respectively.

The Company is subject to audits by state and 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 June 24, 2018, tax years 2004-2018 remain subject to examination in the jurisdictions where the Company operates.

The Company is in various stages of 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 12-month period the Company may experience an increase or decrease in its unrecognized tax benefits as a result of tax examinations or lapses of statute of limitations. The change in unrecognized tax benefits may range up to $28 million.

Net Income per Share

12 Months Ended

Jun. 24, 2018

Earnings Per Share [Abstract]

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, restricted stock units, and Convertible Notes.

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



	Year Ended
	June 24, 2018		June 25, 2017		June 26, 2016
	(in thousands, except per share data)
Numerator:
Net income	$	2,380,681	$	1,697,763	$	914,049
Denominator:
Basic average shares outstanding	161,643		162,222		158,919
Effect of potential dilutive securities:
Employee stock plans	2,312		2,058		2,120
Convertible notes	12,258		16,861		13,464
Warrants	4,569		2,629		656
Diluted average shares outstanding	180,782		183,770		175,159
Net income per share - basic	$	14.73	$	10.47	$	5.75
Net income per share - diluted	$	13.17	$	9.24	$	5.22

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:



	Year Ended
	June 24, 2018	June 25, 2017	June 26, 2016
	(in thousands)
Options and RSUs	34	34	149

Diluted shares outstanding do not include any effect resulting from note hedges associated with the Company’s 2018 Notes (as described in Note 13) as their impact would have been anti-dilutive.

Financial Instruments

12 Months Ended

Jun. 24, 2018

Fair Value Disclosures [Abstract]

Financial Instruments

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 Company’s primary financial instruments include its cash, cash equivalents, investments, restricted cash and investments, long-term investments, accounts receivable, accounts payable, long-term debt and capital leases, and foreign currency related derivative instruments. 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 - Long Term Debt and Other Borrowings for additional information regarding the fair value of the Company’s Senior Notes and 2041 Notes.

Investments

The following table sets forth the Company’s cash, cash equivalents, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of June 24, 2018, and June 25, 2017:



	June 24, 2018
										(Reported Within)
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Value		Cash and Cash Equivalents		Investments		Restricted Cash & Investments		Other Assets
	(in thousands)
Cash	$	708,364	$	—	$	—		$	708,364	$	702,090	$	—	$	6,274	$	—
Time deposit	999,666		—		—			999,666		749,639		—		250,027		—
Level 1:
Money market funds	2,341,807		—		—			2,341,807		2,341,807		—		—		—
U.S. Treasury and agencies	356,679		—		(170		)	356,509		333,721		22,788		—		—
Mutual funds	68,568		516		(142		)	68,942		—		—		—		68,942
Level 1 total	2,767,054		516		(312		)	2,767,258		2,675,528		22,788		—		68,942
Level 2:
Municipal notes and bonds	152,378		37		(279		)	152,136		—		152,136		—		—
Government-sponsored enterprises	110,963		—		(201		)	110,762		99,934		10,828		—		—
Foreign government bonds	19,986		—		(1		)	19,985		19,985		—		—		—
Corporate notes and bonds	516,955		95		(1,184		)	515,866		265,081		250,785		—		—
Mortgage backed securities - residential	804		—		(3		)	801		—		801		—		—
Level 2 total	801,086		132		(1,668		)	799,550		385,000		414,550		—		—
Total	$	5,276,170	$	648	$	(1,980	)	$	5,274,838	$	4,512,257	$	437,338	$	256,301	$	68,942

June 25, 2017