cree-20200329
00008954192020Q3FALSE06-28P1YP5DP10D0.2500008954192019-07-012020-03-29xbrli:shares00008954192020-04-24iso4217:USD00008954192020-03-2900008954192019-06-30iso4217:USDxbrli:shares00008954192019-12-302020-03-2900008954192018-12-312019-03-3100008954192018-06-252019-03-310000895419us-gaap:CommonStockMember2019-06-300000895419us-gaap:AdditionalPaidInCapitalMember2019-06-300000895419us-gaap:RetainedEarningsMember2019-06-300000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300000895419us-gaap:ParentMember2019-06-300000895419us-gaap:NoncontrollingInterestMember2019-06-300000895419us-gaap:RetainedEarningsMember2019-07-012019-09-290000895419us-gaap:ParentMember2019-07-012019-09-2900008954192019-07-012019-09-290000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-290000895419us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-290000895419us-gaap:CommonStockMember2019-07-012019-09-290000895419us-gaap:CommonStockMember2019-09-290000895419us-gaap:AdditionalPaidInCapitalMember2019-09-290000895419us-gaap:RetainedEarningsMember2019-09-290000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-290000895419us-gaap:ParentMember2019-09-290000895419us-gaap:NoncontrollingInterestMember2019-09-2900008954192019-09-290000895419us-gaap:RetainedEarningsMember2019-09-302019-12-290000895419us-gaap:ParentMember2019-09-302019-12-290000895419us-gaap:NoncontrollingInterestMember2019-09-302019-12-2900008954192019-09-302019-12-290000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-302019-12-290000895419us-gaap:AdditionalPaidInCapitalMember2019-09-302019-12-290000895419us-gaap:CommonStockMember2019-09-302019-12-290000895419us-gaap:CommonStockMember2019-12-2900008954192019-12-290000895419us-gaap:AdditionalPaidInCapitalMember2019-12-290000895419us-gaap:RetainedEarningsMember2019-12-290000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-290000895419us-gaap:ParentMember2019-12-290000895419us-gaap:NoncontrollingInterestMember2019-12-290000895419us-gaap:RetainedEarningsMember2019-12-302020-03-290000895419us-gaap:ParentMember2019-12-302020-03-290000895419us-gaap:NoncontrollingInterestMember2019-12-302020-03-290000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-302020-03-290000895419us-gaap:AdditionalPaidInCapitalMember2019-12-302020-03-290000895419us-gaap:CommonStockMember2019-12-302020-03-290000895419us-gaap:CommonStockMember2020-03-290000895419us-gaap:AdditionalPaidInCapitalMember2020-03-290000895419us-gaap:RetainedEarningsMember2020-03-290000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-290000895419us-gaap:ParentMember2020-03-290000895419us-gaap:NoncontrollingInterestMember2020-03-290000895419us-gaap:CommonStockMember2018-06-240000895419us-gaap:AdditionalPaidInCapitalMember2018-06-240000895419us-gaap:RetainedEarningsMember2018-06-240000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-06-240000895419us-gaap:ParentMember2018-06-240000895419us-gaap:NoncontrollingInterestMember2018-06-2400008954192018-06-240000895419us-gaap:RetainedEarningsMember2018-06-252018-09-230000895419us-gaap:ParentMember2018-06-252018-09-2300008954192018-06-252018-09-230000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-06-252018-09-230000895419us-gaap:AdditionalPaidInCapitalMember2018-06-252018-09-230000895419us-gaap:CommonStockMember2018-06-252018-09-230000895419us-gaap:RetainedEarningsMember2018-06-250000895419us-gaap:ParentMember2018-06-2500008954192018-06-250000895419us-gaap:CommonStockMember2018-09-230000895419us-gaap:AdditionalPaidInCapitalMember2018-09-230000895419us-gaap:RetainedEarningsMember2018-09-230000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-09-230000895419us-gaap:ParentMember2018-09-230000895419us-gaap:NoncontrollingInterestMember2018-09-2300008954192018-09-230000895419us-gaap:RetainedEarningsMember2018-09-242018-12-300000895419us-gaap:ParentMember2018-09-242018-12-3000008954192018-09-242018-12-300000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-09-242018-12-300000895419us-gaap:AdditionalPaidInCapitalMember2018-09-242018-12-300000895419us-gaap:CommonStockMember2018-09-242018-12-300000895419us-gaap:CommonStockMember2018-12-300000895419us-gaap:AdditionalPaidInCapitalMember2018-12-300000895419us-gaap:RetainedEarningsMember2018-12-300000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-300000895419us-gaap:ParentMember2018-12-300000895419us-gaap:NoncontrollingInterestMember2018-12-3000008954192018-12-300000895419us-gaap:RetainedEarningsMember2018-12-312019-03-310000895419us-gaap:ParentMember2018-12-312019-03-310000895419us-gaap:NoncontrollingInterestMember2018-12-312019-03-310000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-312019-03-310000895419us-gaap:AdditionalPaidInCapitalMember2018-12-312019-03-310000895419us-gaap:CommonStockMember2018-12-312019-03-310000895419us-gaap:CommonStockMember2019-03-310000895419us-gaap:AdditionalPaidInCapitalMember2019-03-310000895419us-gaap:RetainedEarningsMember2019-03-310000895419us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310000895419us-gaap:ParentMember2019-03-310000895419us-gaap:NoncontrollingInterestMember2019-03-3100008954192019-03-31cree:reportable_segments0000895419srt:RestatementAdjustmentMember2018-06-252019-03-310000895419us-gaap:AccountingStandardsUpdate201602Member2019-07-010000895419us-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMembercree:LightingProductsMember2019-05-130000895419us-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMembercree:LightingProductsMember2019-07-012020-03-290000895419us-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMembercree:LightingProductsMember2018-12-312019-03-310000895419us-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMembercree:LightingProductsMember2018-06-252019-03-310000895419us-gaap:TransmissionServiceAgreementMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2019-12-302020-03-290000895419us-gaap:TransmissionServiceAgreementMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2019-07-012020-03-290000895419us-gaap:TransmissionServiceAgreementMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMemberus-gaap:AccountsReceivableMember2019-07-012020-03-290000895419cree:LEDSupplyAgreementMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2019-12-302020-03-290000895419cree:LEDSupplyAgreementMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2019-07-012020-03-290000895419cree:LEDSupplyAgreementMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMemberus-gaap:AccountsReceivableMember2019-07-012020-03-290000895419cree:LEDSupplyAgreementMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2020-03-290000895419srt:MinimumMember2019-07-012020-03-290000895419srt:MaximumMember2019-07-012020-03-29xbrli:pure0000895419us-gaap:BilledRevenuesMember2020-03-290000895419us-gaap:BilledRevenuesMember2019-06-300000895419us-gaap:UnbilledRevenuesMember2020-03-290000895419us-gaap:UnbilledRevenuesMember2019-06-300000895419us-gaap:RoyaltyMember2020-03-290000895419us-gaap:RoyaltyMember2019-06-300000895419us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-12-302020-03-290000895419us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-07-012020-03-290000895419us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-12-312019-03-310000895419us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-06-252019-03-310000895419us-gaap:MunicipalBondsMember2020-03-290000895419us-gaap:CorporateBondSecuritiesMember2020-03-290000895419us-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-03-290000895419us-gaap:USTreasurySecuritiesMember2020-03-290000895419us-gaap:CertificatesOfDepositMemberus-gaap:NonUsMember2020-03-290000895419country:USus-gaap:CertificatesOfDepositMember2020-03-290000895419us-gaap:VariableRateDemandObligationMember2020-03-290000895419us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2020-03-290000895419us-gaap:MunicipalBondsMember2019-06-300000895419us-gaap:CorporateBondSecuritiesMember2019-06-300000895419us-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-06-300000895419us-gaap:USTreasurySecuritiesMember2019-06-300000895419us-gaap:CertificatesOfDepositMemberus-gaap:NonUsMember2019-06-300000895419country:USus-gaap:CertificatesOfDepositMember2019-06-300000895419us-gaap:VariableRateDemandObligationMember2019-06-300000895419us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2019-06-30cree:security0000895419us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2020-03-290000895419us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2020-03-290000895419us-gaap:MoneyMarketFundsMember2020-03-290000895419us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2019-06-300000895419us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2019-06-300000895419us-gaap:MoneyMarketFundsMember2019-06-300000895419us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-03-290000895419us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-03-290000895419us-gaap:CorporateBondSecuritiesMember2020-03-290000895419us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel1Member2019-06-300000895419us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Member2019-06-300000895419us-gaap:CorporateBondSecuritiesMember2019-06-300000895419us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-03-290000895419us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-03-290000895419us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2020-03-290000895419us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel1Member2019-06-300000895419us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel3Member2019-06-300000895419us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2019-06-300000895419us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-03-290000895419us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-03-290000895419us-gaap:USTreasurySecuritiesMember2020-03-290000895419us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2019-06-300000895419us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2019-06-300000895419us-gaap:USTreasurySecuritiesMember2019-06-300000895419us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Memberus-gaap:NonUsMember2020-03-290000895419us-gaap:CertificatesOfDepositMemberus-gaap:NonUsMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NonUsMember2020-03-290000895419us-gaap:CertificatesOfDepositMemberus-gaap:NonUsMember2020-03-290000895419us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Memberus-gaap:NonUsMember2019-06-300000895419us-gaap:CertificatesOfDepositMemberus-gaap:NonUsMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NonUsMember2019-06-300000895419us-gaap:CertificatesOfDepositMemberus-gaap:NonUsMember2019-06-300000895419us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2020-03-290000895419us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Member2020-03-290000895419us-gaap:CommercialPaperMember2020-03-290000895419us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2019-06-300000895419us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Member2019-06-300000895419us-gaap:CommercialPaperMember2019-06-300000895419us-gaap:FairValueInputsLevel1Member2020-03-290000895419us-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:FairValueInputsLevel3Member2020-03-290000895419us-gaap:FairValueInputsLevel1Member2019-06-300000895419us-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:FairValueInputsLevel3Member2019-06-300000895419us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Member2020-03-290000895419us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2020-03-290000895419us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Member2019-06-300000895419us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2019-06-300000895419us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateBondSecuritiesMember2020-03-290000895419us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateBondSecuritiesMember2020-03-290000895419us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateBondSecuritiesMember2019-06-300000895419us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateBondSecuritiesMember2019-06-300000895419us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-03-290000895419us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-03-290000895419us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-06-300000895419us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-06-300000895419us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMember2020-03-290000895419us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2020-03-290000895419us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMember2019-06-300000895419us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2019-06-300000895419country:USus-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2020-03-290000895419country:USus-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419country:USus-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Member2020-03-290000895419country:USus-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2019-06-300000895419country:USus-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419country:USus-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Member2019-06-300000895419us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Memberus-gaap:NonUsMember2020-03-290000895419us-gaap:CertificatesOfDepositMemberus-gaap:NonUsMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NonUsMember2020-03-290000895419us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Memberus-gaap:NonUsMember2019-06-300000895419us-gaap:CertificatesOfDepositMemberus-gaap:NonUsMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Memberus-gaap:NonUsMember2019-06-300000895419us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2020-03-290000895419us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2020-03-290000895419us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2019-06-300000895419us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2019-06-300000895419us-gaap:VariableRateDemandObligationMemberus-gaap:FairValueInputsLevel1Member2020-03-290000895419us-gaap:VariableRateDemandObligationMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:VariableRateDemandObligationMemberus-gaap:FairValueInputsLevel3Member2020-03-290000895419us-gaap:VariableRateDemandObligationMemberus-gaap:FairValueInputsLevel1Member2019-06-300000895419us-gaap:VariableRateDemandObligationMemberus-gaap:FairValueInputsLevel2Member2019-06-300000895419us-gaap:VariableRateDemandObligationMemberus-gaap:FairValueInputsLevel3Member2019-06-300000895419cree:WolfspeedMember2020-03-290000895419cree:LedProductsMember2020-03-290000895419us-gaap:CustomerRelationshipsMember2020-03-290000895419us-gaap:CustomerRelationshipsMember2019-06-300000895419us-gaap:DevelopedTechnologyRightsMember2020-03-290000895419us-gaap:DevelopedTechnologyRightsMember2019-06-300000895419us-gaap:NoncompeteAgreementsMember2020-03-290000895419us-gaap:NoncompeteAgreementsMember2019-06-300000895419us-gaap:TradeNamesMember2020-03-290000895419us-gaap:TradeNamesMember2019-06-300000895419cree:AcquisitionRelatedIntangibleAssetsMember2020-03-290000895419cree:AcquisitionRelatedIntangibleAssetsMember2019-06-300000895419cree:PatentandLicenseRightsMember2020-03-290000895419cree:PatentandLicenseRightsMember2019-06-300000895419cree:PatentandLicenseRightsMember2019-12-302020-03-290000895419cree:PatentandLicenseRightsMember2019-07-012020-03-290000895419cree:PatentandLicenseRightsMember2018-12-312019-03-310000895419cree:PatentandLicenseRightsMember2018-06-252019-03-310000895419us-gaap:AccountingStandardsUpdate201602Member2019-07-012019-09-290000895419us-gaap:LineOfCreditMember2020-03-290000895419us-gaap:LineOfCreditMember2020-03-260000895419us-gaap:LineOfCreditMember2020-03-270000895419us-gaap:LineOfCreditMember2019-07-012020-03-290000895419us-gaap:LineOfCreditMember2019-12-302020-03-290000895419cree:ConvertibleNotesdueSeptember12023Memberus-gaap:ConvertibleDebtMember2018-08-240000895419cree:ConvertibleNotesdueSeptember12023Memberus-gaap:ConvertibleDebtMember2018-08-242018-08-24cree:trading_day0000895419cree:ConvertibleNotesdueSeptember12023Memberus-gaap:ConvertibleDebtMember2020-03-290000895419cree:ConvertibleNotesdueSeptember12023Memberus-gaap:ConvertibleDebtMember2019-06-300000895419cree:ConvertibleNotesdueSeptember12023Memberus-gaap:ConvertibleDebtMember2019-12-302020-03-290000895419cree:ConvertibleNotesdueSeptember12023Memberus-gaap:ConvertibleDebtMember2018-12-312019-03-310000895419cree:ConvertibleNotesdueSeptember12023Memberus-gaap:ConvertibleDebtMember2019-07-012020-03-290000895419cree:ConvertibleNotesdueSeptember12023Memberus-gaap:ConvertibleDebtMember2018-06-252019-03-310000895419cree:ConvertibleNotesdueSeptember12023Memberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel2Member2020-03-290000895419us-gaap:CommonStockMember2019-12-302020-03-290000895419us-gaap:CommonStockMember2019-07-012020-03-290000895419us-gaap:CommonStockMember2018-12-312019-03-310000895419us-gaap:CommonStockMember2018-06-252019-03-31cree:plans0000895419cree:A2013LongTermIncentiveCompensationPlanMember2019-07-012020-03-290000895419cree:EmployeeStockPurchasePlanMember2020-03-290000895419cree:EmployeeStockPurchasePlanMember2019-07-012020-03-290000895419us-gaap:EmployeeStockOptionMember2019-06-300000895419us-gaap:EmployeeStockOptionMember2019-07-012020-03-290000895419us-gaap:EmployeeStockOptionMember2020-03-290000895419cree:RestrictedStockAwardsAndRestrictedStockUnitsMember2019-06-300000895419cree:RestrictedStockAwardsAndRestrictedStockUnitsMember2019-07-012020-03-290000895419cree:RestrictedStockAwardsAndRestrictedStockUnitsMember2020-03-290000895419us-gaap:CostOfSalesMember2019-12-302020-03-290000895419us-gaap:CostOfSalesMember2018-12-312019-03-310000895419us-gaap:CostOfSalesMember2019-07-012020-03-290000895419us-gaap:CostOfSalesMember2018-06-252019-03-310000895419us-gaap:ResearchAndDevelopmentExpenseMember2019-12-302020-03-290000895419us-gaap:ResearchAndDevelopmentExpenseMember2018-12-312019-03-310000895419us-gaap:ResearchAndDevelopmentExpenseMember2019-07-012020-03-290000895419us-gaap:ResearchAndDevelopmentExpenseMember2018-06-252019-03-310000895419us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-12-302020-03-290000895419us-gaap:SellingGeneralAndAdministrativeExpensesMember2018-12-312019-03-310000895419us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-07-012020-03-290000895419us-gaap:SellingGeneralAndAdministrativeExpensesMember2018-06-252019-03-310000895419us-gaap:DomesticCountryMember2019-06-300000895419us-gaap:DomesticCountryMember2019-07-012020-03-290000895419us-gaap:ForeignCountryMember2019-06-300000895419us-gaap:ForeignCountryMember2019-07-012020-03-290000895419cree:WolfspeedMemberus-gaap:OperatingSegmentsMember2019-12-302020-03-290000895419cree:WolfspeedMemberus-gaap:OperatingSegmentsMember2018-12-312019-03-310000895419cree:WolfspeedMemberus-gaap:OperatingSegmentsMember2019-07-012020-03-290000895419cree:WolfspeedMemberus-gaap:OperatingSegmentsMember2018-06-252019-03-310000895419cree:LedProductsMemberus-gaap:OperatingSegmentsMember2019-12-302020-03-290000895419cree:LedProductsMemberus-gaap:OperatingSegmentsMember2018-12-312019-03-310000895419cree:LedProductsMemberus-gaap:OperatingSegmentsMember2019-07-012020-03-290000895419cree:LedProductsMemberus-gaap:OperatingSegmentsMember2018-06-252019-03-310000895419us-gaap:OperatingSegmentsMember2019-12-302020-03-290000895419us-gaap:OperatingSegmentsMember2018-12-312019-03-310000895419us-gaap:OperatingSegmentsMember2019-07-012020-03-290000895419us-gaap:OperatingSegmentsMember2018-06-252019-03-310000895419us-gaap:MaterialReconcilingItemsMember2019-12-302020-03-290000895419us-gaap:MaterialReconcilingItemsMember2018-12-312019-03-310000895419us-gaap:MaterialReconcilingItemsMember2019-07-012020-03-290000895419us-gaap:MaterialReconcilingItemsMember2018-06-252019-03-310000895419country:US2019-12-302020-03-290000895419country:USus-gaap:GeographicConcentrationRiskMember2019-12-302020-03-290000895419country:US2018-12-312019-03-310000895419country:USus-gaap:GeographicConcentrationRiskMember2018-12-312019-03-310000895419country:US2019-07-012020-03-290000895419country:USus-gaap:GeographicConcentrationRiskMember2019-07-012020-03-290000895419country:US2018-06-252019-03-310000895419country:USus-gaap:GeographicConcentrationRiskMember2018-06-252019-03-310000895419country:CN2019-12-302020-03-290000895419us-gaap:GeographicConcentrationRiskMembercountry:CN2019-12-302020-03-290000895419country:CN2018-12-312019-03-310000895419us-gaap:GeographicConcentrationRiskMembercountry:CN2018-12-312019-03-310000895419country:CN2019-07-012020-03-290000895419us-gaap:GeographicConcentrationRiskMembercountry:CN2019-07-012020-03-290000895419country:CN2018-06-252019-03-310000895419us-gaap:GeographicConcentrationRiskMembercountry:CN2018-06-252019-03-310000895419srt:EuropeMember2019-12-302020-03-290000895419us-gaap:GeographicConcentrationRiskMembersrt:EuropeMember2019-12-302020-03-290000895419srt:EuropeMember2018-12-312019-03-310000895419us-gaap:GeographicConcentrationRiskMembersrt:EuropeMember2018-12-312019-03-310000895419srt:EuropeMember2019-07-012020-03-290000895419us-gaap:GeographicConcentrationRiskMembersrt:EuropeMember2019-07-012020-03-290000895419srt:EuropeMember2018-06-252019-03-310000895419us-gaap:GeographicConcentrationRiskMembersrt:EuropeMember2018-06-252019-03-310000895419cree:OtherGeographicAreaMember2019-12-302020-03-290000895419us-gaap:GeographicConcentrationRiskMembercree:OtherGeographicAreaMember2019-12-302020-03-290000895419cree:OtherGeographicAreaMember2018-12-312019-03-310000895419us-gaap:GeographicConcentrationRiskMembercree:OtherGeographicAreaMember2018-12-312019-03-310000895419cree:OtherGeographicAreaMember2019-07-012020-03-290000895419us-gaap:GeographicConcentrationRiskMembercree:OtherGeographicAreaMember2019-07-012020-03-290000895419cree:OtherGeographicAreaMember2018-06-252019-03-310000895419us-gaap:GeographicConcentrationRiskMembercree:OtherGeographicAreaMember2018-06-252019-03-310000895419cree:WolfspeedMemberus-gaap:OperatingSegmentsMember2020-03-290000895419cree:WolfspeedMemberus-gaap:OperatingSegmentsMember2019-06-300000895419cree:LedProductsMemberus-gaap:OperatingSegmentsMember2020-03-290000895419cree:LedProductsMemberus-gaap:OperatingSegmentsMember2019-06-300000895419us-gaap:OperatingSegmentsMember2020-03-290000895419us-gaap:OperatingSegmentsMember2019-06-300000895419us-gaap:MaterialReconcilingItemsMember2020-03-290000895419us-gaap:MaterialReconcilingItemsMember2019-06-300000895419cree:CorporateRestructuringMember2018-12-312019-03-310000895419cree:CorporateRestructuringMember2018-06-252019-03-310000895419cree:FactoryOptimizationMember2020-03-290000895419cree:FactoryOptimizationMember2019-12-302020-03-290000895419cree:FactoryOptimizationMember2019-07-012020-03-290000895419cree:SalesRepresentativesMember2019-12-302020-03-290000895419cree:SalesRepresentativesMember2019-07-012020-03-290000895419cree:SalesRepresentativesMember2020-03-290000895419cree:ConvertibleNotesDueMay12026Memberus-gaap:SubsequentEventMemberus-gaap:ConvertibleDebtMember2020-04-210000895419cree:ConvertibleNotesDueMay12026Memberus-gaap:SubsequentEventMemberus-gaap:OverAllotmentOptionMemberus-gaap:ConvertibleDebtMember2020-04-210000895419us-gaap:SubsequentEventMember2020-04-212020-04-210000895419cree:ConvertibleNotesDueMay12026Memberus-gaap:SubsequentEventMemberus-gaap:ConvertibleDebtMember2020-04-212020-04-210000895419us-gaap:SubsequentEventMembercree:ConvertibleNotesdueSeptember12023Memberus-gaap:ConvertibleDebtMember2020-04-21
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 29, 2020
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-21154
__________________________________________
CREE, INC.
(Exact name of registrant as specified in its charter)
| | | | | | | | | | | |
North Carolina | | | 56-1572719 |
(State or other jurisdiction of incorporation or organization) | | | (I.R.S. Employer Identification No.) |
| | | |
4600 Silicon Drive | | | |
Durham | North Carolina | | 27703 |
(Address of principal executive offices) | | | (Zip Code) |
(919) 407-5300
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.00125 par value | CREE | The Nasdaq Stock Market LLC |
| | |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | |
Large accelerated filer | ☒ | Accelerated filer | ☐ |
| | | |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | |
| | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
The number of shares outstanding of the registrant’s common stock, par value $0.00125 per share, as of April 24, 2020, was 108,160,061.
CREE, INC.
FORM 10-Q
For the Quarterly Period Ended March 29, 2020
Table of Contents
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
CREE, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
| | | | | | | | | | | |
(in millions of U.S. Dollars, except share data) | | March 29, 2020 | | June 30, 2019 |
Assets | | | |
Current assets: | | | |
Cash and cash equivalents | $323.0 | | | $500.5 | |
Short-term investments | 529.9 | | | 550.9 | |
Total cash, cash equivalents and short-term investments | 852.9 | | | 1,051.4 | |
Accounts receivable, net | 161.0 | | | 128.9 | |
Inventories | 170.1 | | | 187.4 | |
Income taxes receivable | 6.1 | | | 0.2 | |
| | | |
Prepaid expenses | 27.7 | | | 23.3 | |
Other current assets | 12.2 | | | 19.7 | |
Current assets held for sale | 0.2 | | | 1.9 | |
| | | |
Total current assets | 1,230.2 | | | 1,412.8 | |
Property and equipment, net | 737.6 | | | 625.2 | |
Goodwill | 530.0 | | | 530.0 | |
Intangible assets, net | 183.6 | | | 197.9 | |
Other long-term investments | 31.5 | | | 39.5 | |
Deferred tax assets | 6.7 | | | 5.6 | |
| | | |
Other assets | 18.3 | | | 5.9 | |
Total assets | $2,737.9 | | | $2,816.9 | |
| | | |
Liabilities and Shareholders' Equity | | | |
Current liabilities: | | | |
Accounts payable and accrued expenses | $184.8 | | | $200.9 | |
Accrued contract liabilities | 45.1 | | | 45.8 | |
Income taxes payable | 1.2 | | | 3.0 | |
Finance lease liabilities | 0.6 | | | — | |
Other current liabilities | 19.7 | | | 18.5 | |
| | | |
Total current liabilities | 251.4 | | | 268.2 | |
Long-term liabilities: | | | |
| | | |
Convertible notes, net | 486.3 | | | 469.1 | |
Deferred tax liabilities | 2.3 | | | 2.0 | |
Finance lease liabilities - long-term | 2.2 | | | — | |
Other long-term liabilities | 50.7 | | | 36.4 | |
Total long-term liabilities | 541.5 | | | 507.5 | |
Commitments and contingencies | | | | | |
Shareholders’ equity: | | | |
Preferred stock, par value $0.01; 3,000 shares authorized at March 29, 2020 and June 30, 2019; none issued and outstanding | — | | | — | |
Common stock, par value $0.00125; 200,000 shares authorized at March 29, 2020 and June 30, 2019; 108,153 and 106,570 shares issued and outstanding at March 29, 2020 and June 30, 2019, respectively | 0.1 | | | 0.1 | |
Additional paid-in-capital | 2,931.3 | | | 2,874.1 | |
Accumulated other comprehensive income | 7.8 | | | 9.5 | |
Accumulated deficit | (999.7) | | | (847.5) | |
Total shareholders’ equity | 1,939.5 | | | 2,036.2 | |
Non-controlling interest | 5.5 | | | 5.0 | |
Total equity | 1,945.0 | | | 2,041.2 | |
Total liabilities and shareholders’ equity | $2,737.9 | | | $2,816.9 | |
The accompanying notes are an integral part of the consolidated financial statements
CREE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
| | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended | | | | Nine months ended | | |
| March 29, 2020 | | March 31, 2019 | | March 29, 2020 | | March 31, 2019 |
(in millions of U.S. Dollars, except share data) | | | | | | | |
Revenue, net | $215.5 | | | $274.0 | | | $698.2 | | | $828.7 | |
Cost of revenue, net | 154.1 | | | 173.5 | | | 500.7 | | | 526.4 | |
Gross profit | 61.4 | | | 100.5 | | | 197.5 | | | 302.3 | |
Operating expenses: | | | | | | | |
Research and development | 46.7 | | | 40.7 | | | 137.7 | | | 117.2 | |
Sales, general and administrative | 49.7 | | | 50.6 | | | 160.1 | | | 143.7 | |
Amortization or impairment of acquisition-related intangibles | 3.7 | | | 3.9 | | | 10.9 | | | 11.7 | |
Loss on disposal or impairment of other assets | 0.3 | | | 5.3 | | | 2.1 | | | 5.7 | |
| | | | | | | |
| | | | | | | |
Other operating expense | 10.8 | | | 11.1 | | | 31.8 | | | 14.3 | |
| | | | | | | |
Operating (loss) income | (49.8) | | | (11.1) | | | (145.1) | | | 9.7 | |
Non-operating expense, net | 14.5 | | | 8.4 | | | 7.8 | | | 23.7 | |
Loss before income taxes | (64.3) | | | (19.5) | | | (152.9) | | | (14.0) | |
Income tax (benefit) expense | (2.9) | | | 2.8 | | | (1.2) | | | 9.3 | |
Net loss from continuing operations | (61.4) | | | (22.3) | | | (151.7) | | | (23.3) | |
Net loss from discontinued operations | — | | | (205.4) | | | — | | | (218.0) | |
Net loss | (61.4) | | | (227.7) | | | (151.7) | | | (241.3) | |
Net income attributable to noncontrolling interest | 0.2 | | | 0.1 | | | 0.5 | | | 0.1 | |
Net loss attributable to controlling interest | ($61.6) | | | ($227.8) | | | ($152.2) | | | ($241.4) | |
| | | | | | | |
Basic and diluted loss per share | | | | | | | |
Continuing operations attributable to controlling interest | ($0.57) | | | ($0.22) | | | ($1.41) | | | ($0.23) | |
| | | | | | | |
Net loss attributable to controlling interest | ($0.57) | | | ($2.20) | | | ($1.41) | | | ($2.35) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Weighted average shares - basic and diluted (in thousands) | 108,115 | | | 103,659 | | | 107,718 | | | 102,807 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
The accompanying notes are an integral part of the consolidated financial statements
CREE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
| | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended | | | | Nine months ended | | |
(in millions of U.S. Dollars) | March 29, 2020 | | March 31, 2019 | | March 29, 2020 | | March 31, 2019 |
Net loss | ($61.4) | | | ($227.7) | | | ($151.7) | | | ($241.3) | |
Other comprehensive loss: | | | | | | | |
Currency translation loss | — | | | (0.3) | | | — | | | (0.8) | |
Net unrealized (loss) gain on available-for-sale securities | (1.9) | | | 2.0 | | | (1.7) | | | 2.8 | |
| | | | | | | |
Comprehensive loss | (63.3) | | | (226.0) | | | (153.4) | | | (239.3) | |
Net income attributable to non-controlling interest | 0.2 | | | 0.1 | | | 0.5 | | | 0.1 | |
Comprehensive loss attributable to controlling interest | ($63.5) | | | ($226.1) | | | ($153.9) | | | ($239.4) | |
The accompanying notes are an integral part of the consolidated financial statements
CREE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | Additional Paid-in Capital | | Accumulated Deficit | | Accumulated Other Comprehensive Income | | Total Equity - Controlled Interest | | Non-controlling Interest | | Total Equity |
(in millions of U.S Dollars, except share data) | Number of Shares | | Par Value | | | | | | | | | | | | |
Balance at June 30, 2019 | 106,570 | | | $0.1 | | | $2,874.1 | | | ($847.5) | | | $9.5 | | | $2,036.2 | | | $5.0 | | | $2,041.2 | |
Net loss | — | | | — | | | — | | | (37.8) | | | — | | | (37.8) | | | — | | | (37.8) | |
| | | | | | | | | | | | | | | |
Unrealized gain on available-for-sale securities | — | | | — | | | — | | | — | | | 0.5 | | | 0.5 | | | — | | | 0.5 | |
Comprehensive loss | | | | | | | | | | | (37.3) | | | — | | | (37.3) | |
Tax withholding on vested equity awards | — | | | — | | | (14.3) | | | — | | | — | | | (14.3) | | | — | | | (14.3) | |
| | | | | | | | | | | | | | | |
Stock-based compensation | — | | | — | | | 17.4 | | | — | | | — | | | 17.4 | | | — | | | 17.4 | |
Exercise of stock options and issuance of shares | 1,127 | | | — | | | 18.6 | | | — | | | — | | | 18.6 | | | — | | | 18.6 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Balance at September 29, 2019 | 107,697 | | | $0.1 | | | $2,895.8 | | | ($885.3) | | | $10.0 | | | $2,020.6 | | | $5.0 | | | $2,025.6 | |
Net (loss) income | — | | | — | | | — | | | (52.8) | | | — | | | (52.8) | | | 0.3 | | | (52.5) | |
| | | | | | | | | | | | | | | |
Unrealized loss on available-for-sale securities | — | | | — | | | — | | | — | | | (0.3) | | | (0.3) | | | — | | | (0.3) | |
Comprehensive (loss) income | | | | | | | | | | | (53.1) | | | 0.3 | | | (52.8) | |
Tax withholding on vested equity awards | — | | | — | | | (0.4) | | | — | | | — | | | (0.4) | | | — | | | (0.4) | |
| | | | | | | | | | | | | | | |
Stock-based compensation | — | | | — | | | 13.4 | | | — | | | — | | | 13.4 | | | — | | | 13.4 | |
Exercise of stock options and issuance of shares | 334 | | | — | | | 10.7 | | | — | | | — | | | 10.7 | | | — | | | 10.7 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Balance at December 29, 2019 | 108,031 | | | $0.1 | | | $2,919.5 | | | ($938.1) | | | $9.7 | | | $1,991.2 | | | $5.3 | | | $1,996.5 | |
Net (loss) income | — | | | — | | | — | | | (61.6) | | | — | | | (61.6) | | | 0.2 | | | (61.4) | |
| | | | | | | | | | | | | | | |
Unrealized loss on available-for-sale securities | — | | | — | | | — | | | — | | | (1.9) | | | (1.9) | | | — | | | (1.9) | |
Comprehensive (loss) income | | | | | | | | | | | (63.5) | | | 0.2 | | | (63.3) | |
Tax withholding on vested equity awards | — | | | — | | | (1.5) | | | — | | | — | | | (1.5) | | | — | | | (1.5) | |
| | | | | | | | | | | | | | | |
Stock-based compensation | — | | | — | | | 11.6 | | | — | | | — | | | 11.6 | | | — | | | 11.6 | |
Exercise of stock options and issuance of shares | 122 | | | — | | | 1.7 | | | — | | | — | | | 1.7 | | | — | | | 1.7 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Balance at March 29, 2020 | 108,153 | | | $0.1 | | | $2,931.3 | | | ($999.7) | | | $7.8 | | | $1,939.5 | | | $5.5 | | | $1,945.0 | |
The accompanying notes are an integral part of the consolidated financial statements
CREE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | Additional Paid-in Capital | | Accumulated Deficit | | Accumulated Other Comprehensive Income | | Total Equity - Controlled Interest | | Non-controlling Interest | | Total Equity |
(in millions of U.S. Dollars, except share data) | Number of Shares | | Par Value | | | | | | | | | | | | |
Balance at June 24, 2018 | 101,488 | | | $0.1 | | | $2,549.1 | | | ($482.7) | | | $0.6 | | | $2,067.1 | | | $5.0 | | | $2,072.1 | |
Net loss | — | | | — | | | — | | | (11.1) | | | — | | | (11.1) | | | — | | | (11.1) | |
Currency translation gain | — | | | — | | | — | | | — | | | 0.3 | | | 0.3 | | | — | | | 0.3 | |
Unrealized loss on available-for-sale securities | — | | | — | | | — | | | — | | | (0.3) | | | (0.3) | | | — | | | (0.3) | |
Comprehensive loss | | | | | | | | | | | (11.1) | | | — | | | (11.1) | |
Tax withholding on vested equity awards | — | | | — | | | (10.8) | | | — | | | — | | | (10.8) | | | — | | | (10.8) | |
| | | | | | | | | | | | | | | |
Stock-based compensation | — | | | — | | | 12.1 | | | — | | | — | | | 12.1 | | | — | | | 12.1 | |
Exercise of stock options and issuance of shares | 1,032 | | | — | | | 15.5 | | | — | | | — | | | 15.5 | | | — | | | 15.5 | |
Convertible note issuance | — | | | — | | | 110.6 | | | — | | | — | | | 110.6 | | | — | | | 110.6 | |
Adoption of ASC 606 | — | | | — | | | — | | | 10.3 | | | — | | | 10.3 | | | — | | | 10.3 | |
| | | | | | | | | | | | | | | |
Balance at September 23, 2018 | 102,520 | | | $0.1 | | | $2,676.5 | | | ($483.5) | | | $0.6 | | | $2,193.7 | | | $5.0 | | | $2,198.7 | |
Net loss | — | | | — | | | — | | | (2.5) | | | — | | | (2.5) | | | — | | | (2.5) | |
Currency translation loss | — | | | — | | | — | | | — | | | (0.9) | | | (0.9) | | | — | | | (0.9) | |
Unrealized gain on available-for-sale securities | — | | | — | | | — | | | — | | | 1.1 | | | 1.1 | | | — | | | 1.1 | |
Comprehensive loss | | | | | | | | | | | (2.3) | | | — | | | (2.3) | |
Tax withholding on vested equity awards | — | | | — | | | (1.1) | | | — | | | — | | | (1.1) | | | — | | | (1.1) | |
Repurchased shares | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Stock-based compensation | — | | | — | | | 13.6 | | | — | | | — | | | 13.6 | | | — | | | 13.6 | |
Exercise of stock options and issuance of shares | 553 | | | — | | | 14.6 | | | — | | | — | | | 14.6 | | | — | | | 14.6 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Balance at December 30, 2018 | 103,073 | | | $0.1 | | | $2,703.6 | | | ($486.0) | | | $0.8 | | | $2,218.5 | | | $5.0 | | | $2,223.5 | |
Net (loss) income | — | | | — | | | — | | | (227.8) | | | — | | | (227.8) | | | 0.1 | | | (227.7) | |
Currency translation loss | — | | | — | | | — | | | — | | | (0.3) | | | (0.3) | | | — | | | (0.3) | |
Unrealized gain on available-for-sale securities | — | | | — | | | — | | | — | | | 2.0 | | | 2.0 | | | — | | | 2.0 | |
Comprehensive loss | | | | | | | | | | | (226.1) | | | 0.1 | | | (226.0) | |
Tax withholding on vested equity awards | — | | | — | | | (0.5) | | | — | | | — | | | (0.5) | | | — | | | (0.5) | |
| | | | | | | | | | | | | | | |
Stock-based compensation | — | | | — | | | 15.6 | | | — | | | — | | | 15.6 | | | — | | | 15.6 | |
Exercise of stock options and issuance of shares | 1,442 | | | — | | | 53.3 | | | — | | | — | | | 53.3 | | | — | | | 53.3 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Balance at March 31, 2019 | 104,515 | | | $0.1 | | | $2,772.0 | | | ($713.8) | | | $2.5 | | | $2,060.8 | | | $5.1 | | | $2,065.9 | |
The accompanying notes are an integral part of the consolidated financial statements
CREE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | | | | | | |
| Nine months ended | | |
(in millions of U.S. Dollars) | March 29, 2020 | | March 31, 2019 |
Operating activities: | | | |
Net loss from continuing operations | ($151.7) | | | ($23.3) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | | | |
Depreciation and amortization | 90.9 | | | 93.1 | |
Amortization of debt issuance costs and discount | 17.2 | | | 12.7 | |
Stock-based compensation | 41.3 | | | 34.5 | |
| | | |
| | | |
| | | |
| | | |
Loss on disposal or impairment of long-lived assets | 2.1 | | | 5.7 | |
Amortization of premium/discount on investments | 0.5 | | | 2.0 | |
Realized (gain) loss on sale of investments | (1.3) | | | 0.1 | |
Loss on equity investment | 9.2 | | | 12.4 | |
Foreign exchange (gain) loss on equity investment | (1.2) | | | 0.9 | |
Deferred income taxes | (0.8) | | | (1.7) | |
Changes in operating assets and liabilities: | | | |
Accounts receivable, net | (31.9) | | | (63.6) | |
Inventories | 18.4 | | | (20.2) | |
Prepaid expenses and other assets | 1.9 | | | (4.6) | |
Accounts payable, trade | ( |