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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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(Nasdaq Global Select Market)
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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Emerging growth company
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Page No.
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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ITEM 1.
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Financial Statements
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Three Months Ended
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Nine Months Ended
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March 29,
2020 |
March 31,
2019 |
March 29,
2020 |
March 31,
2019 |
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Revenue
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$
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$
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$
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$
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Cost of goods sold
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Gross margin
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Research and development
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Selling, general, and administrative
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Total operating expenses
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Operating income
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Other (expense) income, net
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(
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)
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(
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)
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(
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)
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Income before income taxes
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Income tax expense
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(
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)
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(
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)
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(
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)
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(
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)
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|||||||
Net income
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$
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$
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$
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$
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Net income per share:
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|||||||||||||||
Basic
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$
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$
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$
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$
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Diluted
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$
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$
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$
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$
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Number of shares used in per share calculations:
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Basic
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Diluted
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Three Months Ended
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Nine Months Ended
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March 29,
2020 |
March 31,
2019 |
March 29,
2020 |
March 31,
2019 |
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Net income
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$
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$
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$
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$
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|||
Other comprehensive income (loss), net of tax:
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Foreign currency translation adjustment
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(
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)
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(
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)
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(
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)
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Cash flow hedges:
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Net unrealized (losses) gains during the period
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(
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)
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(
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)
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(
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)
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Net (gains) losses reclassified into earnings
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(
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)
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(
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)
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(
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)
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(
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)
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(
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)
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Available-for-sale investments:
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Net unrealized (losses) gains during the period
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(
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)
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(
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)
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Net losses (gains) reclassified into earnings
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(
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)
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(
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)
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(
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)
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(
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)
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Defined benefit plans, net change in unrealized component
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(
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)
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Other comprehensive (loss) income, net of tax
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(
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)
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(
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)
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(
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)
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Comprehensive income
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$
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$
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$
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$
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March 29,
2020 |
June 30,
2019 |
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(unaudited)
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(1)
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ASSETS
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Cash and cash equivalents
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$
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$
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Investments
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Accounts receivable, less allowance for doubtful accounts of $5,332 as of March 29, 2020, and $5,021 as of June 30, 2019
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Inventories
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Prepaid expenses and other current assets
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Total current assets
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Property and equipment, net
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Restricted cash and investments
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Goodwill
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Intangible assets, net
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Other assets
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Total assets
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$
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$
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Trade accounts payable
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$
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$
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Accrued expenses and other current liabilities
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Deferred profit
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Current portion of long-term debt and finance lease obligations
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Total current liabilities
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Long-term debt and finance lease obligations, less current portion
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Income taxes payable
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Other long-term liabilities
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Total liabilities
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Commitments and contingencies
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Temporary equity, convertible notes
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Stockholders’ equity:
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Preferred stock, at par value of $0.001 per share; authorized, 5,000 shares, none outstanding
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Common stock, at par value of $0.001 per share; authorized, 400,000 shares; issued and outstanding, 145,156 shares at March 29, 2020, and 144,433 shares at June 30, 2019
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Additional paid-in capital
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Treasury stock, at cost; 145,493 shares at March 29, 2020, and 140,573 shares at June 30, 2019
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(
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)
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(
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)
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Accumulated other comprehensive loss
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(
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)
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(
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)
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Retained earnings
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Total stockholders’ equity
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Total liabilities and stockholders’ equity
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$
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$
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Nine Months Ended
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|||||||
March 29,
2020 |
March 31,
2019 |
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net income
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$
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$
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Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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Deferred income taxes
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(
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)
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|||
Equity-based compensation expense
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Amortization of note discounts and issuance costs
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Other, net
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(
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)
|
|||
Changes in operating assets and liabilities
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(
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)
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Net cash provided by operating activities
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CASH FLOWS FROM INVESTING ACTIVITIES:
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Capital expenditures and intangible assets
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(
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)
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(
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)
|
|||
Purchases of available-for-sale securities
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(
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)
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(
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)
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|||
Maturities of available-for-sales securities
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Sales of available-for-sale securities
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Other, net
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(
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)
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(
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)
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|||
Net cash provided by (used for) investing activities
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(
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)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
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Principal payments on debt
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(
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)
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(
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)
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|||
Net repayments of commercial paper
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(
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)
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|||
Proceeds from borrowings on revolving credit facility
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Proceeds from issuance of long-term debt, net of issuance costs
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Treasury stock purchases
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(
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)
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(
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)
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Dividends paid
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(
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)
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(
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)
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|||
Reissuance of treasury stock related to employee stock purchase plan
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Proceeds from issuance of common stock
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Other, net
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(
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)
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|||
Net cash used for financing activities
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(
|
)
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(
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)
|
|||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
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(
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)
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(
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)
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|||
Net increase in cash, cash equivalents, and restricted cash
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Cash, cash equivalents, and restricted cash at beginning of period
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Cash, cash equivalents, and restricted cash at end of period
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$
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$
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|
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|
Schedule of non-cash transactions:
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Accrued payables for stock repurchases
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Accrued payables for capital expenditures
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Dividends payable
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Transfers of inventory to property and equipment, net
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Reconciliation of cash, cash equivalents, and restricted cash
|
March 29,
2020 |
March 31,
2019 |
|||||
Cash and cash equivalents
|
$
|
|
|
$
|
|
|
|
Restricted cash and investments
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Total cash, cash equivalents, and restricted cash
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$
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$
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Three Months Ended
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||||||||||||||||||||||||||
March 29, 2020
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||||||||||||||||||||||||||
Common
Stock Shares |
Common
Stock |
Additional
Paid-in Capital |
Treasury
Stock |
Accumulated
Other Comprehensive Loss |
Retained
Earnings |
Total
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||||||||||||||||||||
Balance at December 29, 2019
|
|
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$
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|
|
$
|
|
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$
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(
|
)
|
$
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(
|
)
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$
|
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$
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||||||
Sale of common stock
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—
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—
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—
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Purchase of treasury stock
|
(
|
)
|
(
|
)
|
—
|
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(
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)
|
—
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—
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(
|
)
|
||||||||||||
Equity-based compensation expense
|
—
|
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—
|
|
|
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—
|
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—
|
|
—
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||||||||||||
Effect of conversion of convertible notes
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(
|
)
|
—
|
|
—
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—
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(
|
)
|
||||||||||||
Reclassification from temporary to permanent equity
|
—
|
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—
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|
|
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—
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—
|
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—
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||||||||||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
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|
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||||||||||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
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—
|
|
(
|
)
|
—
|
|
(
|
)
|
||||||||||||
Cash dividends declared ($1.15 per common share)
|
—
|
|
—
|
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—
|
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—
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—
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(
|
)
|
(
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)
|
||||||||||||
Balance at March 29, 2020
|
|
|
$
|
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|
$
|
|
|
||||||
Nine Months Ended
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||||||||||||||||||||||||||
March 29, 2020
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Common
Stock Shares |
Common
Stock |
Additional
Paid-in Capital |
Treasury
Stock |
Accumulated
Other Comprehensive Loss |
Retained
Earnings |
Total
|
|||||||||||||||||||
Balance at June 30, 2019
|
|
|
$
|
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|
$
|
|
|
||||||
Sale of common stock
|
|
|
|
|
|
|
—
|
|
—
|
|
—
|
|
|
|
||||||||||||
Purchase of treasury stock
|
(
|
)
|
(
|
)
|
—
|
|
(
|
)
|
—
|
|
—
|
|
(
|
)
|
||||||||||||
Reissuance of treasury stock
|
|
|
—
|
|
|
|
|
|
—
|
|
—
|
|
|
|
||||||||||||
Equity-based compensation expense
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
—
|
|
|
|
||||||||||||
Effect of conversion of convertible notes
|
|
|
|
|
(
|
)
|
—
|
|
—
|
|
—
|
|
(
|
)
|
||||||||||||
Reclassification from temporary to permanent equity
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
—
|
|
|
|
||||||||||||
Adoption of ASU 2016-02
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
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|
|
|
|
||||||||||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
||||||||||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
|
—
|
|
(
|
)
|
—
|
|
(
|
)
|
||||||||||||
Cash dividends declared ($3.45 per common share)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(
|
)
|
(
|
)
|
||||||||||||
Balance at March 29, 2020
|
|
|
$
|
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|
$
|
|
|
||||||
Three Months Ended
|
||||||||||||||||||||||||||
March 31, 2019
|
||||||||||||||||||||||||||
Common
Stock Shares |
Common
Stock |
Additional
Paid-in Capital |
Treasury
Stock |
Accumulated
Other Comprehensive Loss |
Retained
Earnings |
Total
|
||||||||||||||||||||
Balance at December 23, 2018
|
|
|
$
|
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|
$
|
|
|
||||||
Sale of common stock
|
|
|
|
|
|
|
—
|
|
—
|
|
—
|
|
|
|
||||||||||||
Purchase of treasury stock
|
(
|
)
|
(
|
)
|
—
|
|
(
|
)
|
—
|
|
—
|
|
(
|