What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-10-26 compared with 2021-04-28 · 155 added, 284 removed, 554 unchanged (44% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

Revenue $ 4,304,465 $ 3,177,080

19 unchanged sentences

(in thousands)

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

Net income $ 1,179,744 $ 823,451

2 unchanged sentences

Cash flow hedges:

Net unrealized gains (losses) during the period 8,024 ( 29,456 ) 12,546 ( 26,068 )

Net unrealized losses during the period ( 9,005 ) ( 350 )

Net (gains) losses reclassified into net income ( 3,542 ) 767

11 unchanged sentences

(in thousands, except per share data)

September 26,

2021 June 27,

2 unchanged sentences

Investments 569,472 1,310,872

Accounts receivable, less allowance of $ 5,191 as of March 28, 2021, and $ 5,465 as of June 28, 2020

Accounts receivable, less allowance of $ 5,361 as of September 26, 2021, and $ 5,255 as of June 27, 2021

3,397,180 3,026,430

19 unchanged sentences

Commitments and contingencies

Temporary equity, convertible notes 3,217 10,995

Stockholders’ equity:

2 unchanged sentences

Common stock, at par value of $ 0.001 per share;

authorized, 400,000 shares as of March 28, 2021 and June 28, 2020;

issued and outstanding, 142,607 shares at March 28, 2021, and 145,331 shares at June 28, 2020

authorized, 400,000 shares as of September 26, 2021 and June 27, 2021;

issued and outstanding, 140,811 shares as of September 26, 2021, and 142,501 shares as of June 27, 2021

Additional paid-in capital 7,111,803 7,052,962

Treasury stock, at cost;

150,111 shares at March 28, 2021, and 145,432 shares at June 28,

152,503 shares as of September 26, 2021, and 150,766 shares as of June 27, 2021

( 16,863,573 ) ( 15,646,701 )

8 unchanged sentences

(in thousands) (unaudited)

Nine Months Ended

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

CASH FLOWS FROM OPERATING ACTIVITIES:

4 unchanged sentences

Equity-based compensation expense 58,099 55,988

Amortization of note discounts and issuance costs 4,251 4,611

Other, net ( 8,690 ) 4,339

7 unchanged sentences

Other, net ( 4,923 ) ( 1,786 )

Net cash (used for) provided by investing activities ( 615,790 ) 186,125

Net cash provided by (used for) investing activities 596,693 ( 801,666 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal payments on debt ( 6,338 ) ( 19,173 )

Proceeds from borrowings on revolving credit facility — 1,250,000

Treasury stock purchases ( 1,236,753 ) ( 448,581 )

Dividends paid ( 185,431 ) ( 167,129 )

Reissuance of treasury stock related to employee stock purchase plan 41,434 38,447

Proceeds from issuance of common stock 742 5,538

2 unchanged sentences

Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 3,776 ) 4,082

Net (decrease) increase in cash, cash equivalents, and restricted cash ( 1,242,257 ) 302,345

Net decrease in cash, cash equivalents, and restricted cash ( 377,151 ) ( 786,558 )

Cash, cash equivalents, and restricted cash at beginning of period 4,670,750 5,169,083

4 unchanged sentences

Dividends payable 211,216 188,046

Transfers of inventory to property and equipment, net 59,882 34,155

Reconciliation of cash, cash equivalents, and restricted cash March 28,

2021 March 29,

Transfers of finished goods inventory to property and equipment 15,518 29,019

Reconciliation of cash, cash equivalents, and restricted cash September 26,

2021 September 27,

Cash and cash equivalents $ 4,042,151 $ 4,129,067

Restricted cash and investments 253,460 254,155

Restricted cash and cash equivalents 251,448 253,458

Total cash, cash equivalents, and restricted cash $ 4,293,599 $ 4,382,525

4 unchanged sentences

Three Months Ended

March 28, 2021

Shares Common

Stock Additional

Capital Treasury

Stock Accumulated

Comprehensive

Loss Retained

Earnings Total

Balance at December 27, 2020 143,205 $ 143 $ 6,854,681 $ ( 14,135,555 ) $ ( 56,126 ) $ 12,839,890 $ 5,503,033

Issuance of common stock 848 1 9,625 — — — 9,626

Purchase of treasury stock ( 1,731 ) ( 1 ) — ( 1,077,379 ) — — ( 1,077,380 )

Equity-based compensation expense — — 55,746 — — — 55,746

Effect of conversion of convertible notes 285 — ( 327 ) — — — ( 327 )

Reclassification from temporary to permanent equity — — 2,298 — — — 2,298

Net income — — — — — 1,071,121 1,071,121

Other comprehensive loss — — — — ( 7,171 ) — ( 7,171 )

Cash dividends declared ($ 1.30 per common share)

— — — — — ( 185,330 ) ( 185,330 )

Balance at March 28, 2021 142,607 $ 143 $ 6,922,023 $ ( 15,212,934 ) $ ( 63,297 ) $ 13,725,681 $ 5,371,616

Nine Months Ended

March 28, 2021

September 26, 2021

Shares Common

8 unchanged sentences

Purchase of treasury stock ( 1,737 ) ( 2 ) — ( 1,216,872 ) — — ( 1,216,874 )

Reissuance of treasury stock 207 — 32,261 9,173 — — 41,434

Equity-based compensation expense — — 58,099 — — — 58,099

Effect of conversion of convertible notes 903 1 ( 988 ) — — — ( 987 )

Reclassification from temporary to permanent equity — — 7,778 — — — 7,778

Adoption of ASU 2018-18 1

— — — — — 1,157 1,157

Net income — — — — — 1,179,744 1,179,744

Other comprehensive income — — — — 30,914 — 30,914

Cash dividends declared ($ 3.90 per common share)

— — — — — ( 559,868 ) ( 559,868 )

Balance at March 28, 2021 142,607 $ 143 $ 6,922,023 $ ( 15,212,934 ) $ ( 63,297 ) $ 13,725,681 $ 5,371,616

(1) Refer to Note 2 - Recent Accounting Pronouncements for more information regarding this Financial Accounting Standards Board (FASB) Accounting Standard Updates.

See Notes to Condensed Consolidated Financial Statements

Three Months Ended

March 29, 2020

Shares Common

Stock Additional

Capital Treasury

Stock Accumulated

Comprehensive

Loss Retained

Earnings Total

Balance at December 29, 2019 142,462 $ 142 $ 6,528,821 $ ( 12,673,292 ) $ ( 60,247 ) $ 10,584,005 $ 4,379,429

Issuance of common stock 1,047 1 1,713 — — — 1,714

Purchase of treasury stock ( 1,576 ) ( 1 ) — ( 245,438 ) — — ( 245,439 )

Equity-based compensation expense — — 47,414 — — — 47,414

Effect of conversion of convertible notes 3,223 3 ( 26,884 ) — — — ( 26,881 )

Reclassification from temporary to permanent equity — — 26,758 — — — 26,758

Net income — — — — — 574,781 574,781

Other comprehensive loss — — — — ( 17,640 ) — ( 17,640 )

1 unchanged sentence

— — — — — ( 211,216 ) ( 211,216 )

Balance at March 29, 2020 145,156 $ 145 $ 6,577,822 $ ( 12,918,730 ) $ ( 112,676 ) $ 10,991,046 $ 4,537,607

Nine Months Ended

March 29, 2020

Balance at September 26, 2021 140,811 $ 141 $ 7,111,803 $ ( 16,863,573 ) $ ( 81,768 ) $ 15,653,440 $ 5,820,043

Three Months Ended

September 27, 2020

Shares Common

8 unchanged sentences

Purchase of treasury stock ( 1,360 ) ( 1 ) — ( 467,097 ) — — ( 467,098 )

Reissuance of treasury stock 296 — 25,710 12,737 — — 38,447

Equity-based compensation expense — — 55,988 — — — 55,988

2 unchanged sentences

Adoption of ASU 2018-18 — — — — — 1,157 1,157

— — — — — 3,018 3,018

Net income — — — — — 823,451 823,451

Other comprehensive loss — — — — ( 48,646 ) — ( 48,646 )

Other comprehensive income — — — — 11,539 — 11,539

Cash dividends declared ($ 1.30 per common share)

— — — — — ( 188,046 ) ( 188,046 )

Balance at March 29, 2020 145,156 $ 145 $ 6,577,822 $ ( 12,918,730 ) $ ( 112,676 ) $ 10,991,046 $ 4,537,607

Balance at September 27, 2020 144,593 $ 145 $ 6,761,545 $ ( 13,416,986 ) $ ( 82,672 ) $ 12,157,153 $ 5,419,185

See Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 28, 2021

September 26, 2021

NOTE 1 — BASIS OF PRESENTATION

12 unchanged sentences

The Company’s current fiscal year will end June 26, 2022 and includes 52 weeks.

The quarters ended March 28, 2021 (the “March 2021 quarter”) and March 29, 2020 (the “March 2020 quarter”) included 13 weeks.

The quarters ended September 26, 2021 (the “September 2021 quarter”) and September 27, 2020 (the “September 2020 quarter”) included 13 weeks.

NOTE 2 — RECENT ACCOUNTING PRONOUNCEMENTS

Recently Adopted

In June 2016, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326).” The amendment revises the impairment model to utilize an expected loss methodology in place of the previously 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 FASB issued a subsequent amendment to the initial guidance in April 2019 and November 2019 within ASU 2019-04 and ASU 2019-11, respectively.

The adoption of these standards in the first quarter of fiscal year 2021 did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

In November 2018, the FASB issued ASU 2018-18, “Collaborative Arrangements (Topic 808).” The amendment clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under Topic 606 when the counterparty is a customer for a good or service that is a distinct unit of account.

The amendment also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers.

The adoption of this standard in the first quarter of fiscal year 2021 did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued.

In January 2021, the FASB issued ASU 2021-01, “ Reference Rate Reform (Topic 848),” which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from reference rate reform.

ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modifications made on or before December 31, 2022.

ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022.

The Company has not yet applied the relief afforded by these standard amendments and is currently assessing contracts that will require modification due to reference rate reform to which these standard amendments may be applied.

The Company did not adopt any new accounting standards during the first quarter of fiscal year 2022 that had a material impact on the Company’s Condensed Consolidated Financial Statements.

Updates Not Yet Adopted or Effective

In August 2020, the FASB issued ASU No.

2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity.

Among other changes, ASU 2020-06 removes from U.S.

GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt.

ASU 2020-06 also eliminates the treasury stock method to calculate diluted earnings per share and requires the if-converted method.

The provisions of ASU 2020-06 are applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020.

The Company is required to adopt this standard in the first quarter of fiscal year 2023.

The update permits the use of either the modified retrospective or fully retrospective method of transition.

The Company does not expect adoption of this standard to have a material impact on its Consolidated Financial Statements related to the Company’s existing 2041 Notes (as defined in Note 12 - Long-Term Debt and Other Borrowings ).

There are no new accounting pronouncements not yet adopted or effective that are expected to have a material impact on the Company’s Condensed Consolidated Financial Statements.

NOTE 3 — REVENUE

Deferred Revenue

Revenue of $ 69.1 million and $ 427.2 million included in deferred revenue as of June 28, 2020 was recognized during the three and nine months ended March 28, 2021.

The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of March 28, 2021 and when the Company expects to recognize the amounts as revenue:

Revenue of $ 565.7 million included in deferred revenue as of June 27, 2021 was recognized during the three months ended September 26, 2021.

The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 26, 2021 and when the Company expects to recognize the amounts as revenue:

Less than 1 Year 1-3 Years More than 3 Years Total

13 unchanged sentences

The following table presents the Company’s revenues disaggregated between system and its customer support-related revenue:

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

(In thousands)

5 unchanged sentences

The following table presents the Company’s revenues disaggregated by geographic region:

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

(In thousands)

8 unchanged sentences

The following table presents the percentages of leading- and non-leading-edge equipment and upgrade revenue to each of the primary markets the Company serves:

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

Memory 64 % 58 %

9 unchanged sentences

The Company recognized the following equity-based compensation expense (including expense related to the employee stock purchase plan) and related income tax benefit in the Condensed Consolidated Statements of Operations:

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

(in thousands)

3 unchanged sentences

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

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

(in thousands)

1 unchanged sentence

Interest expense ( 45,056 ) ( 52,115 )

Gains (losses) on deferred compensation plan-related assets, net 7,520 ( 33,828 ) 44,654 ( 20,135 )

Foreign exchange gains (losses), net 541 480 ( 4,597 ) ( 2,336 )

Gains on deferred compensation plan-related assets, net 7,437 12,927

Foreign exchange losses, net ( 17 ) ( 1,375 )

Other, net 4,101 ( 5,188 )

2 unchanged sentences

The Company’s provision for income taxes and effective tax rate are as follows:

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

(in thousands, except percentages)

2 unchanged sentences

The difference between the U.S.

federal statutory tax rate of 21% and the Company’s effective tax rate for the three and nine months ended March 28, 2021 and the three and nine months ended March 29, 2020 was primarily due to income in lower tax jurisdictions, stock-based compensation excess tax benefits, and a cumulative income tax benefit reversal due to a court ruling in the nine months ended March 29, 2020.

federal statutory tax rate of 21% and the Company’s effective tax rate for the three months ended September 26, 2021 and the three months ended September 27, 2020 was primarily due to income in lower tax jurisdictions.

The Company transferred its international sales operations from Switzerland to Malaysia, effective from fiscal year 2022.

Through fiscal year 2036, the Company expects to operate under various tax incentives in Malaysia which provide exemptions on foreign income earned and are contingent upon meeting certain conditions.

The Internal Revenue Service (“IRS”) is examining the Company’s U.S.

federal income tax return for the fiscal year ended June 24, 2018.

As of March 28, 2021, no significant adjustments have been proposed by the IRS.

As of September 26, 2021, no significant adjustments have been proposed by the IRS.

The Company is unable to make a reasonable estimate as to when cash settlements, if any, with the IRS will occur.

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 uncertain tax positions as a result of tax examinations or lapses of statutes of limitations.

The change in uncertain tax positions as a result of lapses of statutes of limitations may range up to $ 7.4 million.

The change in uncertain tax positions as a result of lapses of statutes of limitation may range up to $ 8.0 million.

NOTE 7 — NET INCOME PER SHARE

1 unchanged sentence

Diluted net income per share is computed using the treasury stock method, for dilutive stock options, restricted stock units, and convertible notes.

Refer to Note 12 - Long-term Debt and Other Borrowings for additional information regarding the Company’s convertible notes.

The following table reconciles the inputs to the basic and diluted computations for net income per share.

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

(in thousands, except per share data)

8 unchanged sentences

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

The following potentially dilutive securities were excluded:

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

(in thousands)

Options and RSUs 120 40 40 13

The impact from potentially dilutive securities, including options and RSUs, was not material for the three months ended September 26, 2021 and September 27, 2020.

NOTE 8 — FINANCIAL INSTRUMENTS

19 unchanged sentences

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.

Refer to Note 12 - Long-Term Debt and Other Borrowings for additional information regarding the fair value of the Company’s senior notes and convertible senior notes.

The following tables set 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 March 28, 2021, and June 28, 2020:

March 28, 2021

The estimated fair values of lease obligations approximate their carrying value as the majority of these obligations have interest rates that adjust to market rates on a periodic basis.

Refer to Note 12 - Long-Term Debt and Other Borrowings for additional information regarding the fair value of the Company’s senior notes.

September 26, 2021

(Reported Within)

11 unchanged sentences

Level 1 Total 1,393,036 19,389 ( 28 ) 1,412,397 1,309,610 1,849 — 100,938

Government-sponsored enterprises 3,500 12 — 3,512 — 3,512 — —

Foreign government bonds 15,119 14 — 15,133 — 15,133 — —

Corporate notes and bonds 535,888 766 ( 271 ) 536,383 — 536,383 — —

Mortgage backed securities — residential 6,279 74 — 6,353 — 6,353 — —

Mortgage backed securities — commercial 16,164 1 ( 58 ) 16,107 — 16,107 — —

25 unchanged sentences

Management assesses the fair value of investments in debt securities that are not actively traded through consideration of interest rates and their impact on the present value of the cash flows to be received from the investments.

Following the adoption of Accounting Standard Codification Topic 326 (see additional information in Note 2 - Recent Accounting Pronouncements), under Subtopic 326-30, the Company evaluates its investments with fair value less than amortized cost by first considering whether the Company has the intent to sell the security or whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis.

The Company evaluates its investments with fair value less than amortized cost by first considering whether the Company has the intent to sell the security or whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis.

In either such situation, the difference between fair value and amortized cost is recognized as a loss in the income statement.

2 unchanged sentences

All other differences between fair value and amortized cost are recognized in other comprehensive income.

No such losses were recognized through the income statement during the three and nine months ended March 28, 2021.

The Company did no t recognize any losses on investments due to other-than-temporary impairments during the three and nine months ended March 29, 2020.

Gross realized gains/(losses) from sales of investments were insignificant in the three and nine months ended March 28, 2021 and March 29, 2020.

No such losses were recognized through the income statement during the three months ended September 26, 2021 and September 27, 2020.

Gross realized gains/(losses) from sales of investments were insignificant in the three months ended September 26, 2021 and September 27, 2020.

The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions:

as of March 28, 2021 there are no unrealized loss positions with a duration equal to or greater than twelve months:

March 28, 2021

September 26, 2021

Unrealized Losses

Less than 12 Months

Less than 12 Months Unrealized Losses

12 Months or Greater Total

Fair Value Gross

Loss Fair Value Gross

(in thousands)

1 unchanged sentence

Municipal notes and bonds 2,082 ( 27 ) — — 2,082 ( 27 )

Foreign government bonds 21,259 ( 1 )

Corporate notes and bonds 155,500 ( 229 ) 7,673 ( 42 ) 163,173 ( 271 )

1 unchanged sentence

$ 174,418 $ ( 315 ) $ 7,673 $ ( 42 ) $ 182,091 $ ( 357 )

The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities are as follows as of March 28, 2021:

The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities are as follows as of September 26, 2021:

(in thousands)

12 unchanged sentences

However, the Company has elected to present the derivative assets and derivative liabilities on a gross basis on its balance sheet.

As of March 28, 2021 and June 28, 2020, the potential effect of rights of offset associated with the above foreign exchange and interest rate contracts would be immaterial to the Condensed Consolidated Balance Sheets.

As of September 26, 2021 and June 27, 2021, the potential effect of rights of offset associated with the above foreign exchange and interest rate contracts would be immaterial to the Condensed Consolidated Balance Sheets.

Cash Flow Hedges

6 unchanged sentences

These instruments are designated as cash flow hedges at inception and are settled in conjunction with the issuance of debt.

The effective portion of the contracts’ gains or losses is included in accumulated other comprehensive income (loss) and is amortized into income as the hedged item impacts earnings.

The effective portion of the contracts’ gains or losses is included in accumulated other comprehensive income (loss) and is amortized into income as the hedged item affects earnings.

At inception and at each quarter-end, hedges are tested prospectively and retrospectively for effectiveness using regression analysis.

5 unchanged sentences

Consequently, the Company’s results of operations are not subject to fluctuation as a result of changes in the fair value of the derivative instruments.

If hedges are not highly effective or if the Company does not

believe that the underlying hedged forecasted transactions will occur, the Company may not be able to account for its derivative instruments as cash flow hedges.

If hedges are not highly effective or if the Company does not believe that the underlying hedged forecasted transactions will occur, the Company may not be able to account for its derivative

instruments as cash flow hedges.

If this were to occur, future changes in the fair values of the Company’s derivative instruments would be recognized in earnings.

Additionally, related amounts previously recorded in other comprehensive income would be reclassified to income immediately.

As of March 28, 2021 and June 28, 2020, the fair value of outstanding cash flow hedges was not material.

Additionally, as of March 28, 2021, the Company had an immaterial net gain or loss accumulated in other comprehensive income, net of tax, related to foreign exchange cash flow hedges and interest rate contracts which it expects to reclassify from other comprehensive income into earnings over the next 12 months.

The following table provides the total notional value of cash flow hedge instruments outstanding as of March 28, 2021:

Additionally, related amounts previously recorded in other comprehensive income would be reclassified to earnings immediately.

As of September 26, 2021 and June 27, 2021, the fair value of outstanding cash flow hedges was not material.

Additionally, as of September 26, 2021, the Company had an immaterial net gain or loss accumulated in other comprehensive income, net of tax, related to foreign exchange cash flow hedges and interest rate contracts which it expects to reclassify from other comprehensive income into earnings over the next 12 months.

The following table provides the total notional value of cash flow hedge instruments outstanding as of September 26, 2021:

September 26,

(In thousands)

2 unchanged sentences

The effect of derivative instruments designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”), was as follows:

Three Months Ended Nine Months Ended

March 28, 2021 March 28, 2021

Three Months Ended

September 26, 2021

Gain or (Loss)

Recognized in or Reclassified into Net Income Gain (Loss)

into Net Income Gain

in AOCI (Loss) Gain

Recognized in or Reclassified into Net Income Loss

in AOCI Gain (Loss)

into Net Income

6 unchanged sentences

$ ( 12,260 ) $ 3,543

Three Months Ended Nine Months Ended

March 29, 2020 March 29, 2020

Three Months Ended

September 27, 2020

Gain or (Loss)

Recognized in or Reclassified into Income Gain (Loss)

in AOCI Gain (Loss)

into Net Income Gain (Loss)

in AOCI Gain (Loss)

Recognized in or Reclassified into Income (Loss) Gain

in AOCI (Loss) Gain

into Net Income

2 unchanged sentences

Foreign Exchange Contracts Cost of goods sold 1,093 560

Foreign Exchange Contracts Research and Development 394 —

Foreign Exchange Contracts Selling, general, and administrative 1,640 305

4 unchanged sentences

These forward contracts are not designated for hedge accounting treatment.

Therefore, the change in fair value of these derivatives is recorded as a component of other expense, net and offsets the change in fair value of the foreign currency denominated assets and liabilities, which are also recorded in other expense, net.

As of March 28, 2021 and June 28, 2020, the fair value of outstanding balance sheet hedges was not material.

The following table provides the total notional value of balance sheet hedge instruments outstanding as of March 28, 2021:

Therefore, the change in the carrying value of these derivatives is recorded as a component of other expense, net and offsets the change in fair value of the foreign currency denominated assets and liabilities related to remeasurement, which are also recorded in other expense, net.

As of September 26, 2021 and June 27, 2021, the fair value of outstanding balance sheet hedges was not material.

The following table provides the total notional value of balance sheet hedge instruments outstanding as of September 26, 2021:

September 26,

(In thousands)

2 unchanged sentences

The effect of the Company’s balance sheet hedge derivative instruments on the Company’s Condensed Consolidated Statements of Operations was as follows:

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

Derivatives Not Designated as Hedging Instruments:

of Gain (Loss) Recognized

of Gain Recognized

in Income Gain

in Net Income Loss

in Net Income Gain

in Net Income Loss

in Net Income

16 unchanged sentences

Inventories consist of the following:

September 26,

2021 June 27,

5 unchanged sentences

NOTE 10 — GOODWILL AND INTANGIBLE ASSETS

The balance of goodwill is approximately $ 1.5 billion as of March 28, 2021 and June 28, 2020.

As of March 28, 2021 and June 28, 2020, $ 61.1 million of the goodwill balance is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law.

The balance of goodwill is approximately $ 1.5 billion as of September 26, 2021 and June 27, 2021.

As of September 26, 2021 and June 27, 2021, $ 61.1 million of the goodwill balance is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law.

Intangible Assets

The following table provides the Company’s intangible assets, other than goodwill:

March 28, 2021 June 28, 2020

September 26, 2021 June 27, 2021

Gross Accumulated

6 unchanged sentences

Total intangible assets $ 1,444,203 $ ( 1,319,189 ) $ 125,014 $ 1,432,436 $ ( 1,300,071 ) $ 132,365

The Company recognized $ 17.9 million and $ 16.6 million in intangible asset amortization expense during the three months ended March 28, 2021 and March 29, 2020, respectively.

The Company recognized $ 52.3 million and $ 49.3 million in intangible asset amortization expense during the nine months ended March 28, 2021 and March 29, 2020, respectively.

The estimated future amortization expense of intangible assets as of March 28, 2021, is reflected in the table below.

The Company recognized $ 19.1 million and $ 16.8 million in intangible asset amortization expense during the three months ended September 26, 2021 and September 27, 2020, respectively.

The estimated future amortization expense of intangible assets as of September 26, 2021, is reflected in the table below.

The table excludes $ 12.0 million of capitalized costs for internal-use software that have not been placed into service.

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Accrued expenses and other current liabilities consist of the following:

September 26,

2021 June 27,

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NOTE 12 — LONG-TERM DEBT AND OTHER BORROWINGS

As of March 28, 2021, and June 28, 2020, the Company’s outstanding debt consisted of the following:

March 28, 2021 June 28, 2020

As of September 26, 2021, and June 27, 2021, the Company’s outstanding debt consisted of the following:

September 26, 2021 June 27, 2021

(in thousands) Effective Interest Rate Amount

(in thousands) Effective Interest Rate

Fixed-rate 2.80 % Senior Notes Due June 15, 2021 ("2021 Notes")

800,000 2.95 % 800,000 2.95 %

Fixed-rate 3.80 % Senior Notes Due March 15, 2025 ("2025 Notes")

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750,000 2.01 % 750,000 2.01 %

Fixed-rate 2.625 % Convertible Notes Due May 15, 2041 ("2041 Notes")

4.28 % 48,460 (1)

Fixed-rate 4.875 % Senior Notes Due March 15, 2049 ("2049 Notes")

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Total debt outstanding, at carrying value $ 4,961,249 $ 4,960,935

Current portion of long-term debt $ 813,786 $ 836,107

Long-term debt $ 4,961,249 $ 4,960,935

Total debt outstanding, at carrying value $ 5,774,263 $ 5,795,478

____________________________

(1) As of the report date, these notes were convertible at the option of the bondholder.

This is a result of the following condition being met:

the market value of the Company’s Common Stock was greater than 130 % of the convertible notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end.

As a result, the 2041 Notes were classified in current liabilities and a portion of the equity component, associated with the convertible notes representing the unamortized discount, was classified in temporary equity on the Company’s Condensed Consolidated Balance Sheets.

Additionally, on March 26, 2021, the Company issued a notice of redemption to the existing bondholders, with a redemption date of May 21, 2021.

(1) This amount represents a cumulative fair value gain for discontinued hedging relationships, net of an immaterial amount of amortization as of the periods presented.

Convertible Senior Notes

In June 2012, with the acquisition of Novellus Systems, Inc., the Company assumed $ 700 million in aggregate principal amount of 2.625 % Convertible Senior Notes due May 15, 2041.

The Company pays cash interest at an annual rate of 2.625 %, on a semi-annual basis on May 15 and November 15 of each year.

The 2041 Notes also have a contingent interest payment provision that may require the Company to pay additional interest, up to 0.60 % per year, based on certain thresholds, beginning with the semi-annual interest payment on May 15, 2021, and upon the occurrence of certain events, as outlined in the indenture governing the 2041 Notes.

The Company separately accounts for the liability and equity components of the 2041 Notes.

The initial debt components of the 2041 Notes were valued based on the present value of the future cash flows using the Company’s borrowing rate at the date of the issuance or assumption for similar debt instruments without the conversion feature, which equals the effective interest rate on the liability component disclosed in the table above, respectively.

The equity component was initially valued equal to the principal value of the notes, less the present value of the future cash flows using the Company’s borrowing rate at the date of the issuance or assumption for similar debt instruments without a conversion feature, which equated to the initial debt discount.

During the three months ended March 28, 2021, the Company notified holders of the 2041 Notes of its intention to exercise the redemption option pursuant to Section 6.01 of the underlying indenture.

As such, the 2041 Notes outstanding on May 21, 2021 will be redeemed by the Company at a price equal to outstanding principal plus accrued and unpaid interest.

Under certain circumstances, the 2041 Notes may be converted into shares of the Company’s Common Stock.

The number of shares each debenture is convertible into is based on conversion rates, disclosed in the table below.

The principal value of the 2041 Note conversions in the three and nine months ended March 28, 2021, was approximately $ 9.6 million and $ 31.2 million, respectively.

As a result of the cumulative conversions, as of March 28, 2021, $ 17.3 million of the 2041 notes remain outstanding.

During the three months ended March 28, 2021 and in the subsequent period through April 28, 2021, the Company received notices of conversion for an immaterial principal value of 2041 Notes, which will settle in the three months ending June 27, 2021.

Selected additional information regarding the 2041 Notes outstanding as of March 28, 2021, and June 28, 2020, is as follows:

2021 June 28,

2041 Notes 2041 Notes

(in thousands, except years, percentages, conversion rate, and conversion price)

Carrying amount of permanent equity component, net of tax $ 161,612 $ 161,467

Carrying amount of temporary equity component, net of tax $ 3,217 $ 10,995

Remaining amortization period (years) 20.1 20.9

Fair Value of Notes (Level 2) $ 319,495

Conversion rate (shares of common stock per $ 1,000 principal amount of notes)

Conversion price (per share of common stock) $ 31.45

If-converted value in excess of par value $ 303,924

Estimated share dilution using average quarterly stock price $ 538.79 per share

On May 5, 2020, the company completed a public offering of $ 750 million aggregate principal amount of the Company’s Senior Notes due June 15, 2030 (the “2030 Notes”), $ 750 million aggregate principal amount of the Company’s Senior Notes due June 15, 2050 (the “2050 Notes”), and $ 500 million aggregate principal amount of the Company’s Senior Notes due June 15, 2060 (the “2060 Notes”).

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The Company pays interest at an annual rate of 3.80 % on the 2025 Notes on a semi-annual basis on March 15 and September 15 of each year.

On June 7, 2016, the Company completed a public offering of $ 800 million aggregate principal amount of Senior Notes due June 2021 (the “2021 Notes”).

The Company pays interest at an annual rate of 2.80 % on the 2021 Notes on a semi-annual basis on June 15 and December 15 of each year.

The Company may redeem the 2021, 2025, 2026, 2029, 2030, 2049, 2050, and 2060 Notes (collectively the “Senior Notes”) at a redemption price equal to 100 % of the principal amount of such series (“par”), plus a “make whole” premium as described in the indenture in respect to the Senior Notes and accrued and unpaid interest before May 15, 2021 for the 2021 Notes, before December 15, 2024 for the 2025 Notes, before January 15, 2026 for the 2026 Notes, before December 15, 2028 for the 2029 Notes, before March 15, 2030 for the 2030 Notes, before September 15, 2048 for the 2049 Notes, before December 15, 2049 for the 2050 Notes, and before December 15, 2059 for the 2060 Notes.

The Company may redeem the Senior Notes at par, plus accrued and unpaid interest at any time on or after May 15, 2021 for the 2021 Notes, on or after December 24, 2024 for the 2025 Notes, on or after January 15, 2026 for the 2026 Notes, on or after December 15, 2028 for the 2029 Notes, on or after March 15, 2030 for the 2030 Notes, on or after September 15, 2048 for the 2049 Notes, on or after December 15, 2049 for the 2050 Notes, and on or after December 15, 2059 for the 2060 Notes.

In addition, upon the occurrence of certain events, as

described in the indenture, the Company will be required to make an offer to repurchase the Senior Notes at a price equal to 101 % of the principal amount of the respective note, plus accrued and unpaid interest.

Selected additional information regarding the Senior Notes outstanding as of March 28, 2021, is as follows:

The Company may redeem the 2025, 2026, 2029, 2030, 2049, 2050, and 2060 Notes (collectively the “Senior Notes”) at a redemption price equal to 100 % of the principal amount of such series (“par”), plus a “make whole” premium as described in the indenture in respect to the Senior Notes and accrued and unpaid interest before December 15, 2024 for the 2025 Notes, before January 15, 2026 for the 2026 Notes, before December 15, 2028 for the 2029 Notes, before March 15, 2030 for the 2030 Notes, before September 15, 2048 for the 2049 Notes, before December 15, 2049 for the 2050 Notes, and before December 15, 2059 for the 2060 Notes.

The Company may redeem the Senior Notes at par, plus accrued and unpaid interest at any time on or after December 24, 2024 for the 2025 Notes, on or after January 15, 2026 for the 2026 Notes, on or after December 15, 2028 for the 2029 Notes, on or after March 15, 2030 for the 2030 Notes, on or after September 15, 2048 for the 2049 Notes, on or after December 15, 2049 for the 2050 Notes, and on or after December 15, 2059 for the 2060 Notes.

In addition, upon the occurrence of certain events, as described in the indenture, the Company will be required to make an offer to repurchase the Senior Notes at a price equal to 101 % of the principal amount of the respective note, plus accrued and unpaid interest.

Selected additional information regarding the Senior Notes outstanding as of September 26, 2021, is as follows:

Remaining Amortization period Fair Value of Notes (Level 2)

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2060 Notes 38.7 $ 529,535

2060 Notes 39.2 $ 484,215

Revolving Credit Facility

On March 12, 2014, the Company established an unsecured Credit Agreement.

This agreement was amended on November 10, 2015 (the “Amended and Restated Credit Agreement”), October 13, 2017 (the “2nd Amendment”), and February 25, 2019 (the “3rd Amendment”).

Under the Amended and Restated Credit Agreement (as amended by the 2nd and 3rd Amendment), the Company has a revolving credit facility of $ 1.25 billion with a syndicate of lenders with an expansion option that will allow the Company, subject to certain requirements, to request an increase in the facility of up to an additional $ 600.0 million, for a potential total commitment of $ 1.85 billion.

The facility matures on October 13, 2022.

Interest on amounts borrowed under the credit facility is, at the Company’s option, based on (1) a base rate, defined as the greatest of (a) prime rate, (b) Federal Funds rate plus 0.5 %, or (c) one-month LIBOR plus 1.0 %, plus a spread of 0.0 % to 0.5 %, or (2) LIBOR multiplied by the statutory rate, plus a spread of 0.9 % to 1.5 %, in each case as the applicable spread is determined based on the rating of the Company’s non-credit enhanced, senior unsecured long-term debt.

This agreement was amended on November 10, 2015 (the “Amended and Restated Credit Agreement”), October 13, 2017 (the “2nd Amendment”), February 25, 2019 (the “3rd Amendment”), and June 17, 2021 (the “Second Amended and Restated Credit Agreement”).

The Second Amended and Restated Credit Agreement provides for a $ 1.50 billion revolving credit facility with a syndicate of lenders, along with an expansion option that will allow the Company, subject to certain requirements, to request an increase in the facility of up to an additional $ 600.0 million, for a potential total commitment of $ 2.10 billion.

The facility matures on June 17, 2026.

Interest on amounts borrowed under the credit facility is, at the Company’s option, based on (1) a base rate, defined as the greatest of (a) prime rate, (b) Federal Funds rate plus 0.5 %, or (c) one-month LIBOR plus 1.0 %, plus a spread of 0.00 % to 0.30 %, or (2) LIBOR multiplied by the statutory rate, plus a spread of 0.805 % to 1.30 %, in each case plus a facility fee, with such spread and facility fee determined based on the rating of the Company’s non-credit enhanced, senior unsecured long-term debt.

Such spreads and such facility fees are further subject to sustainability adjustments as described in the Second Amended and Restated Credit Agreement, in each case based on the Company’s performance of certain energy savings and health and safety standards metrics.

Principal and any accrued and unpaid interest is due and payable upon maturity.

Additionally, the Company will pay the lenders a quarterly commitment fee that varies based on the Company’s credit rating.

The Amended and Restated Credit Agreement contains affirmative covenants, negative covenants, financial covenants and events of default.

As of March 28, 2021, the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants.

The Second Amended and Restated Credit Agreement incorporates provisions for the replacement of LIBOR or other reference rates with alternative reference rates under certain circumstances, including when, or if, such reference rates cease to be available.

The Second Amended and Restated Credit Agreement contains affirmative covenants, negative covenants, financial covenants, and events of default.

As of September 26, 2021, the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants.

Commercial Paper Program

On November 13, 2017, the Company established a commercial paper program (“the CP Program”) under which the Company may issue unsecured commercial paper notes on a private placement basis up to a maximum aggregate principal amount of $ 1.25 billion.

In July 2021, the Company amended the CP Program size to a maximum aggregate amount outstanding at any time of $ 1.50 billion.

The net proceeds from the CP Program will be used for general corporate purposes, including repurchases of the Company’s Common Stock from time to time under the Company’s stock repurchase program.

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The CP Program is backstopped by the Company’s Revolving Credit Arrangement.

As of March 28, 2021 and June 28, 2020, the Company had no outstanding borrowings under the CP Program.

As of September 26, 2021 and June 27, 2021, the Company had no outstanding borrowings under the CP Program.

Interest Cost

The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes, convertible notes, commercial paper, and the revolving credit facility during the three and nine months ended March 28, 2021 and March 29, 2020.

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes, convertible notes, and the revolving credit facility during the three months ended September 26, 2021 and September 27, 2020.

Three Months Ended

September 26,

2021 September 27,

(in thousands)

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Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation.

The Company had leases regarding certain improved properties in Fremont and Livermore, California (the “California Facility Leases”) that were classified as operating leases as of June 28, 2020.

On September 21, 2020, the Company renewed these leases for an additional seven-year term, and concluded the modified leases are finance leases, and recognized approximately $ 31.4 million of property and equipment, net, for the associated right of use assets, and $ 29.8 million of finance lease obligations ($ 3.1 million classified in current portion of long-term debt and finance lease obligations and the remainder in long-term debt and finance lease obligations, less current portion).

The Company has finance leases for certain improved properties in Fremont and Livermore, California (the “California Facility Leases”).

The Company is required to maintain cash collateral in an aggregate of approximately $ 250.0 million in separate interest-bearing accounts as security for the Company’s obligations.

These amounts are recorded with other restricted cash and investments in the Company’s Condensed Consolidated Balance Sheet as of March 28, 2021.

During the term of the California Facility Leases and when the terms of the California Facility Leases expire, the property subject to the California Facility Leases may be re-marketed.

These amounts are recorded with other restricted cash and investments in the Company’s Condensed Consolidated Balance Sheet as of September 26, 2021.

During the seven-year term of the California Facility Leases and when the terms of the California Facility Leases expire, the property subject to the California Facility Leases may be re-marketed.

The Company has guaranteed to the lessor that each property will have a certain minimum residual value.

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The Company has entered into insurance contracts that are intended to limit its exposure to such indemnifications.

As of March 28, 2021, the Company had not recorded any liability on its Condensed Consolidated Financial Statements in connection with these indemnifications, as it does not believe that it is probable that any material amounts will be paid under these guarantees.

As of September 26, 2021, the Company had not recorded any liability on its Condensed Consolidated Financial Statements in connection with these indemnifications, as it does not believe that it is probable that any material amounts will be paid under these guarantees.

Generally, the Company indemnifies, under pre-determined conditions and limitations, its customers for infringement of third-party intellectual property rights by the Company’s products or services.

2 unchanged sentences

The Company provides guarantees and standby letters of credit to certain parties as required for certain transactions initiated during the ordinary course of business.

As of March 28, 2021, the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $ 73.2 million.

The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid.

In addition, the Company has entered into indemnification agreements with its officers and directors, consistent with its Bylaws and Certificate of Incorporation;

As of September 26, 2021, the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $ 74.1 million.

The Company does not

believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid.

In addition, the Company has entered into indemnification agreements with its directors, officers, and certain other employees, consistent with its Bylaws and Certificate of Incorporation;

and under local law, the Company may be required to provide indemnification to its employees for actions within the scope of their employment.

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

As of March 28, 2021, warranty reserves totaling $ 16.4 million were recognized in other long-term liabilities, the remainder were included in accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheets.

As of September 26, 2021, warranty reserves totaling $ 15.6 million were recognized in other long-term liabilities, the remainder were included in accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheets.

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

Three Months Ended Nine Months Ended

2021 March 29,

2020 March 28,

2021 March 29,

Three Months Ended

September 26,

2021 September 27,

(in thousands)

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Quarter ended September 26, 2021 1,725 $ 1,209,744 $ 608.98 $ 3,012,476

Board authorization, $ 5 billion increase, November 2020

Quarter ended December 27, 2020 1,789 $ 724,485 $ 404.98 $ 5,586,944

Quarter ended March 28, 2021 1,474 $ 925,099 $ 519.30 $ 4,661,845

(1) Average price paid per share excludes the effect of accelerated share repurchases.

See additional disclosure below regarding the Company’s accelerated share repurchase activity during the nine months ended March 28, 2021.

In addition to the shares repurchased under the Board-authorized repurchase program shown above, during the three and nine months ended March 28, 2021, the Company acquired 257 thousand shares at a total cost of $ 152.3 million and 280 thousand shares at a total cost of $ 160.6 million, respectively, which the Company withheld through net settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under the Company’s equity compensation plans.

(1) Average price paid per share excludes the effect of accelerated share repurchase activities.

See additional disclosure below regarding the Company’s accelerated share repurchase activity during the three months ended September 26, 2021.

In addition to the shares repurchased under the Board-authorized repurchase program shown above, during the three months ended September 26, 2021, the Company acquired 12 thousand shares at a total cost of $ 7.1 million, which the Company withheld through net settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under the Company’s equity compensation plans.

The shares retained by the Company through these net share settlements are not a part of the Board-authorized repurchase program but instead are authorized under the Company’s equity compensation plan.

Accelerated Share Repurchase Agreements

On February 11, 2021, the Company entered into an accelerated share repurchase agreement (the “February 2021 ASR") with a financial institution to repurchase a total of $ 500 million of Common Stock.

The Company took an initial delivery of approximately 655 thousand shares, which represented 75 % of the prepayment amount divided by the Company’s closing stock price on February 11, 2021.

The total number of shares received under the February 2021 ASR will be based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount.

Final settlement of the February 2021 ASR will occur no later than June 9, 2021.

On August 31, 2021, the Company entered into an accelerated share repurchase agreement (the “September 2021 ASR") with two financial institutions to repurchase a total of $ 650 million of Common Stock.

The Company took an initial delivery of approximately 806 thousand shares, which represented 75 % of the prepayment amount divided by the Company’s closing stock price on August 31, 2021.

The total number of shares received under the September 2021 ASR will be based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount.

Final settlement of the September 2021 ASR will occur no later than January 6, 2022.

NOTE 16 — ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of accumulated other comprehensive loss, net of tax at March 28, 2021, as well as the activity for the nine months ending March 28, 2021, were as follows:

The components of accumulated other comprehensive loss, net of tax at September 26, 2021, as well as the activity for the three months ending September 26, 2021, were as follows:

Accumulated Foreign Currency Translation Adjustment Accumulated

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Balance at June 27, 2021 $ ( 31,413 ) $ ( 14,125 ) $ 1,611 $ ( 20,201 ) $ ( 64,128 )

Other comprehensive income (loss) before reclassifications 20,231 12,546 ( 3,667 ) 234 29,344

Losses reclassified from accumulated other comprehensive loss to net income — 843 (1)

Net current-period other comprehensive income (loss) 20,231 13,389 ( 2,940 ) 234 30,914

Balance at March 28, 2021 $ ( 25,580 ) $ ( 19,407 ) $ 1,983 $ ( 20,293 ) $ ( 63,297 )

(1) Amount of after-tax loss reclassified from AOCI into net income is not material in the aggregate, or to any individual location in our Condensed Consolidated Statements of Operations.

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

Other comprehensive (loss) income before reclassifications ( 4,032 ) ( 9,005 ) ( 2,405 ) 199 ( 15,243 )

(Gains) losses reclassified from accumulated other comprehensive loss to net income (1)

1,145 — ( 2,397 )

Net current-period other comprehensive (loss) income ( 4,032 ) ( 12,547 ) ( 1,260 ) 199 ( 17,640 )

Balance at September 26, 2021 $ ( 35,445 ) $ ( 26,672 ) $ 351 $ ( 20,002 ) $ ( 81,768 )

(1) Amount of after-tax gains reclassified from AOCI into net income is not material in the aggregate, or to any individual location in our Condensed Consolidated Statements of Operations.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements