ON SEMICONDUCTOR CORP
For the period ended Jun 28, 2024. Filed Jul 29, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 28, 2024 · Filed Jul 29, 2024
ON$63.31+0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-29; filed 2024-04-29.
0001628280-24-018814
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-28; filed 2024-07-29.
0001628280-24-033229
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 69 previous paragraphs and 106 current paragraphs.
37 unchanged; 25 reworded; 33 added; 7 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 4 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (33)
Current report
2024 Business Realignment
Current report
In an effort to streamline resources, drive organizational efficiencies, consolidate our global corporate footprint, and align with our "Fab Right" manufacturing strategy, we initiated the 2024 business realignment efforts during the second quarter of 2024. Under this business realignment, approximately 1,000 employees were notified of their employment termination and around 300 additional employees were reassigned or asked to relocate to another site. We incurred severance and other related charges of approximately $52.5 million and asset impairments and other charges of approximately $18.8 million. For additional information, see Note 4: ''Restructuring, Asset Impairments and Other Charges, Net'' in the notes to our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Current report
Share Repurchases
Current report
Revenue from PSG decreased by $142.2 million, or approximately 15%, for the quarter ended June 28, 2024 compared to the quarter ended June 30, 2023. Revenue from our Multi-Market Power Division, Automotive Power Division and Industrial Power Division decreased by $68.8 million, $36.8 million and $36.7 million, respectively, primarily driven by a decrease in demand in the automotive, industrial and communications end-markets.
Current report
Gross profit decreased by $209.4 million to $784.0 million for the quarter ended June 28, 2024 compared to $993.4 million for the quarter ended June 30, 2023. This was primarily due to the decline in volume which negatively impacted gross profit by approximately $183 million and $47 million from existing products and new products, respectively, partially offset by approximately $20 million due to a reduction in the lower-margin foundry business at our EFK location.
Current report
PSG gross profit decreased by $119.2 million, primarily driven by a decline in volume which negatively impacted gross profit by approximately $72 million and $47 million from existing products and new products, respectively. PSG gross margin decreased by 6.1% to 41.8% from 47.9% primarily as a result of the decline in volume, underutilization and the related impact of unfavorable product mix.
Current report
AMG gross profit decreased by $48.3 million, primarily driven by a decline in existing business which negatively impacted gross profit by approximately $69 million partially offset by improved gross profit of approximately $20 million due to the reduction in the lower-margin foundry business at our EFK location. AMG gross margin increased by 3.0% to 49.7% from 46.7%, primarily due to the reduction in the lower-margin foundry business.
Current report
General and administrative expenses were $85.0 million for the quarter ended June 28, 2024, as compared to $87.2 million for the quarter ended June 30, 2023, representing a decrease of $2.2 million, or approximately 3%. The decrease was primarily attributable to decreased variable compensation, partially offset by an increase in expenses associated with information technology initiatives.
Current report
Amortization of acquisition-related intangible assets was $12.9 million for the quarter ended June 28, 2024, as compared to $12.0 million for the quarter ended June 30, 2023, representing an increase of $0.9 million, or approximately 8%.
Current report
Restructuring, asset impairments and other, net was $72.5 million for the quarter ended June 28, 2024, as compared to $2.6 million for the quarter ended June 30, 2023. Charges incurred for quarter ended June 28, 2024 primarily relate to restructuring actions during the period. See Note 4: ''Restructuring, Asset Impairments and Other Charges, Net'' in the notes to our unaudited consolidated financial statements included elsewhere in this Form 10-Q for additional information.
Current report
Other Income (Expense)
Current report
Results of Operations
Current report
Six Months Ended June 28, 2024 compared to the Six Months Ended June 30, 2023
Current report
Revenue
Current report
Revenue from AMG decreased by $191.8 million, or approximately 12%, for the six months ended June 28, 2024 compared to the six months ended June 30, 2023. Revenue from our Power Management Division, Integrated Circuit Division and Sensor Interface Division decreased by $110.0 million, $69.4 million and $12.4 million, respectively, primarily due to a decrease in demand in the automotive and industrial end-markets.
Current report
Revenue from ISG decreased by $135.6 million, or approximately 20%, for the six months ended June 28, 2024 compared to the six months ended June 30, 2023, largely driven by a decrease in revenue from our Automotive Sensing Division and Industrial and Consumer Solutions Division of $70.4 million and $65.2 million, respectively, primarily due to the decrease in demand for these products in the automotive and industrial end-markets.
Current report
Revenue by geographic location, including local sales made by operations within each area, based on sales billed from the respective region, was as follows (dollars in millions):
Current report
Gross Profit and Gross Margin
Current report
Gross profit was $1,637.6 million for the six months ended June 28, 2024 compared to $1,910.9 million for the six months ended June 30, 2023, representing a decrease of $273.3 million. This was primarily due to the decline in volume which negatively impacted gross profit by approximately $325 million, partially offset by approximately $54 million due to a reduction in the lower-margin foundry business at our EFK location.
Current report
Our gross margin decreased by 1.6% to 45.5% for the six months ended June 28, 2024 from 47.1% for the six months ended June 30, 2023, primarily due to changes as explained in the segment gross margin sections below.
Current report
ISG gross profit decreased by $69.6 million, primarily driven by a decline in existing business. ISG gross margin decreased 0.6% to 48.3% from 48.9%, primarily driven by changes in product mix.
Current report
Operating Expenses
Current report
Research and development expenses were $306.5 million for the six months ended June 28, 2024, as compared to $283.7 million for the six months ended June 30, 2023, representing an increase of $22.8 million, or approximately 8%. The increase was primarily attributable to increase in payroll-related expenses and materials used in development activities, partially offset by a decrease in variable compensation.
Current report
Selling and marketing expenses were $137.7 million for the six months ended June 28, 2024, as compared to $143.4 million for the six months ended June 30, 2023, representing a decrease of $5.7 million, or approximately 4%. The decrease was primarily attributable to decreased variable compensation and commissions, partially offset by increased payroll-related costs.
Current report
Other Operating Expenses
Current report
Restructuring, asset impairments and other, net was $73.9 million for the six months ended June 28, 2024, as compared to $54.1 million for the six months ended June 30, 2023, representing an increase of $19.8 million. Amounts incurred for the six months ended June 28, 2024 related primarily to the business realignment efforts in the second quarter of 2024. See Note 4: ''Restructuring, Asset Impairments and Other Charges, Net'' in the notes to our unaudited consolidated financial statements included elsewhere in this Form 10-Q for additional information.
Current report
Interest Expense
Current report
Loss on Debt Prepayment
Current report
There was no loss on debt prepayment recognized for the six months ended June 28, 2024, as compared to $13.3 million for the six months ended June 30, 2023 due to the write-off relating to the partial repayment of the Term Loan "B" Facility in 2023. See Note 6: ''Long-Term Debt'' in the notes to our unaudited consolidated financial statements included elsewhere in this Form 10-Q for additional information.
Current report
Other Income (Expense)
Current report
Other income (expense) was an income of $2.9 million for the six months ended June 28, 2024 as compared to $3.4 million for the six months ended June 30, 2023.
Current report
Income Tax Provision
Current report
We recorded an income tax provision of $148.2 million and $188.1 million during the six months ended June 28, 2024 and June 30, 2023, respectively, representing effective tax rates of 15.8% and 15.3%, respectively.
Removed paragraphs (7)
Previous report
Warrants Settlement and Share Repurchases
Previous report
(1) Certain amounts may not total due to rounding of individual amounts.
Previous report
(1) Certain amounts may not total due to rounding of individual amounts.
Previous report
Gross profit decreased by $63.9 million to $853.6 million for the quarter ended March 29, 2024 compared to $917.5 million for the quarter ended March 31, 2023. This was primarily due to the decline in existing product revenue which negatively impacted gross profit by approximately $142 million, partially offset by increased gross profit of approximately $45 million from new product sales, and a reallocation of $34 million from manufacturing costs at our EFK location, related to our foundry business, to the existing product revenue category within PSG.
Previous report
(1)Certain amounts may not total due to rounding of individual amounts.
Previous report
Restructuring, asset impairments and other, net was $1.4 million for the quarter ended March 29, 2024, as compared to $51.5 million for the quarter ended March 31, 2023. There were no new restructuring programs implemented during the quarter ended March 29, 2024. Amounts incurred during the quarter ended March 31, 2023 related primarily to the ASG business realignment efforts during the first quarter of 2023.
Reworded paragraphs (25)
Previous wording
You should read the following discussion in conjunction with our audited historical consolidated financial statements, which are included in the 2023 Form 10-K and our unaudited consolidated financial statements for the fiscal quarter ended March 29, 2024, which are included elsewhere in this Form 10-Q. This Management's Discussion and Analysis of Financial Condition and Results of Operations contains statements that are forward-looking. These statements are based on current expectations and assumptions that are subject to risks, uncertainties and other factors. Actual results could differ materially because of the factors discussed below or elsewhere in this Form 10-Q. See Part II, Item 1A. "Risk Factors" of this Form 10-Q and Part I, Item 1A. "Risk Factors" of the 2023 Form 10-K.
Current wording
You should read the following discussion in conjunction with our audited historical consolidated financial statements, which are included in the 2023 Form 10-K, and our unaudited consolidated financial statements for the fiscal quarter ended June 28, 2024, which are included elsewhere in this Form 10-Q. This Management's Discussion and Analysis of Financial Condition and Results of Operations contains statements that are forward-looking. These statements are based on expectations and assumptions as of the date of this Form 10-Q and are subject to risks, uncertainties and other factors. Actual results could differ materially because of the factors discussed below or elsewhere in this Form 10-Q. See Part II, Item 1A. "Risk Factors" of this Form 10-Q and Part I, Item 1A. "Risk Factors" of the 2023 Form 10-K.
Previous wording
We provide intelligent power and intelligent sensing solutions with a primary focus towards automotive and industrial markets to help our customers solve challenging problems and create cutting-edge products for a better future. Our intelligent power technologies enable the electrification of the automotive industry that allows for lighter and longer-range electric vehicles, empowers efficient fast-charging systems and propels sustainable energy for the highest efficiency solar strings, industrial power and storage systems. Our intelligent power solutions for the automotive industry allow our customers to exceed range targets with lower weight and reduce system cost through efficiency. Our intelligent sensing technologies support the next generation industry, allowing for smarter factories and buildings while also enhancing the automotive mobility experience with imaging and depth sensing that make advanced vehicle safety and automated driving systems possible.
Current wording
We provide intelligent power and intelligent sensing solutions with a primary focus towards automotive and industrial markets to help our customers solve challenging problems and create cutting-edge products for a better future. Our intelligent power technologies enable the electrification of the automotive industry that allows for lighter and longer-range electric vehicles, empowers efficient fast-charging systems and propels sustainable energy for the highest efficiency solar strings, industrial power, data centers and storage systems. Our intelligent power solutions for the automotive industry allow our customers to exceed range targets with lower weight and reduce system cost through efficiency. Our intelligent sensing technologies support the next generation industry, allowing for smarter factories and buildings while also enhancing the automotive mobility experience with imaging and depth sensing that make advanced vehicle safety and automated driving systems possible.
Previous wording
During the quarter ended March 29, 2024, we renamed our Advanced Solutions Group ("ASG") reportable segment to Analog and Mixed-Signal Group ("AMG") and reorganized the existing divisions within PSG and AMG. See Note 2: ''Revenue and Segment Information'' in the notes to the unaudited consolidated financial statements included elsewhere in this Form 10-Q for additional information regarding the segment reorganization. As of March 29, 2024, we were organized into the three operating and reportable segments of PSG, AMG and ISG.
Current wording
During the first quarter of 2024, we renamed our Advanced Solutions Group ("ASG") reportable segment to Analog and Mixed-Signal Group ("AMG") and reorganized the existing divisions within PSG and AMG. See Note 2: ''Revenue and Segment Information'' in the notes to the unaudited consolidated financial statements included elsewhere in this Form 10-Q for additional information regarding the segment reorganization. As of June 28, 2024, we were organized into the three operating and reportable segments of PSG, AMG and ISG.
Previous wording
Our primary focus continues to be on profitable revenue with stable gross margin and operating income by capturing high-growth megatrends in our focused end-markets of automotive and industrial infrastructure. We are designing products in highly-differentiated markets focused on customer needs while optimizing and right-sizing our manufacturing footprint to support growth and maintain gross margins through efficiencies and new product development. We are focused on achieving efficiencies in our operating and capital expenditures, capital allocation on research and development investments and resources to accelerate growth in high-margin products.
Current wording
Our primary focus continues to be on profitable revenue with stable gross margin and operating income by capturing high-growth megatrends in our focused end-markets of automotive and industrial infrastructure. We design products in highly-differentiated markets focused on customer needs while optimizing and right-sizing our manufacturing footprint to support growth and maintain gross margins through efficiencies and new product development. We are focused on achieving efficiencies in our operating and capital expenditures, capital allocation on research and development investments and resources to accelerate growth in high-margin products.
Previous wording
During the quarter ended March 29, 2024, we settled the remaining outstanding warrants related to the 1.625% Notes by issuing 4.0 million shares of our common stock on a net-share basis. We also repurchased approximately 1.3 million shares of common stock for an aggregate purchase price of $100.0 million. For additional information, see Note 6: ''Earnings Per Share and Equity'' in the notes to our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Current wording
During the quarter ended June 28, 2024, we repurchased approximately 2.1 million shares of common stock for an aggregate purchase price of $150.1 million. During the first quarter of 2024, we had repurchased approximately 1.3 million shares of common stock for an aggregate purchase price of $100 million. For additional information, see Note 7: ''Earnings Per Share and Equity'' in the notes to our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Previous wording
Revenue was $1,862.7 million and $1,959.7 million for the quarters ended March 29, 2024 and March 31, 2023, respectively, representing a decrease of $97.0 million, or approximately 5%, year over year. We had one customer, a distributor, whose revenue accounted for approximately 10% of our total revenue for the quarters ended March 29, 2024 and March 31, 2023, respectively. Revenue by operating and reportable segments was as follows (dollars in millions):
Current wording
Revenue was $1,735.2 million and $2,094.4 million for the quarters ended June 28, 2024 and June 30, 2023, respectively, representing a decrease of $359.2 million, or approximately 17%, year over year. We had one customer, a distributor, whose revenue accounted for approximately 12% and 11%of our total revenue for the quarters ended June 28, 2024 and June 30, 2023, respectively.
Previous wording
Revenue from AMG decreased by $47.7 million, or approximately 6%, for the quarter ended March 29, 2024 compared to the quarter ended March 31, 2023. Revenue from our Integrated Circuit Division and Power Management Division decreased by $42.3 million and $29.5 million, respectively, primarily due to a decrease in demand in the industrial and consumer end-markets. This was partially offset by an increase in revenue in our Sensor Interface Division of $24.1 million.
Current wording
Revenue from AMG decreased by $144.1 million, or approximately 18%, for the quarter ended June 28, 2024 compared to the quarter ended June 30, 2023. Revenue from our Power Management Division, Sensor Interface Division and Integrated Circuit Division decreased by $80.5 million, $36.5 million and $27.2 million, respectively, primarily due to a decrease in demand in the automotive and industrial end-markets.
Previous wording
Revenue from ISG decreased by $62.6 million, or approximately 18%, for the quarter ended March 29, 2024 compared to the quarter ended March 31, 2023, largely driven by a decrease in revenue from our Industrial and Consumer Solutions Division and Automotive Sensing Division of $31.0 million and $31.7 million, respectively, primarily due to the decrease in demand for these products in the industrial and automotive end-markets.
Current wording
Revenue from ISG decreased by $72.9 million, or approximately 22%, for the quarter ended June 28, 2024 compared to the quarter ended June 30, 2023, largely driven by a decrease in revenue from our Automotive Sensing Division and Industrial and Consumer Solutions Division of $38.7 million and $34.2 million, respectively, primarily due to the decrease in demand for these products in the automotive and industrial end-markets.
Previous wording
Our gross margin decreased by approximately 1% quarter over quarter, primarily due to changes as explained in the segment gross margin sections below.
Current wording
Our gross margin decreased by approximately 2.2% to 45.2% for the quarter ended June 28, 2024 from 47.4% for the quarter ended June 30, 2023, primarily due to changes as explained in the segment gross margin sections below.
Previous wording
ISG gross profit decreased by $27.7 million, primarily driven by a decline in existing business. ISG gross margin increased by 1.3%, primarily driven by improved product mix.
Current wording
ISG gross profit decreased by $41.9 million, primarily driven by a decline in existing business. ISG gross margin decreased by 2.8% to 44.9% from 47.7%, primarily driven by changes in product mix.
Previous wording
Research and development expenses were $150.0 million for the quarter ended March 29, 2024, as compared to $138.4 million for the quarter ended March 31, 2023, representing an increase of $11.6 million, or approximately 8%.
Current wording
Research and development expenses were $156.5 million for the quarter ended June 28, 2024, as compared to $145.3 million for the quarter ended June 30, 2023, representing an increase of $11.2 million, or approximately 8%. The increase was primarily attributable to an increase in payroll-related expenses and materials used in development activities, partially offset by a decrease in variable compensation.
Previous wording
Selling and marketing expenses were $69.1 million for the quarter ended March 29, 2024, as compared to $71.8 million for the quarter ended March 31, 2023, representing a decrease of $2.7 million, or approximately 4%.
Current wording
Selling and marketing expenses were $68.6 million for the quarter ended June 28, 2024, as compared to $71.6 million for the quarter ended June 30, 2023, representing a decrease of $3.0 million, or approximately 4%. The decrease was primarily attributable to decreased variable compensation and commissions, partially offset by increased payroll-related costs.
Previous wording
Interest income increased by $10.5 million, or approximately 61%, to $27.6 million during the quarter ended March 29, 2024 compared to $17.1 million during the quarter ended March 31, 2023, primarily due to an increase in interest rates along with a strategic shift in our investment strategy with balances in higher interest bearing accounts.
Current wording
Interest income increased by $3.4 million, or approximately 14%, to $27.4 million during the quarter ended June 28, 2024 compared to $24.0 million during the quarter ended June 30, 2023, primarily due to an increase in interest rates along with a strategic shift in our investment strategy with higher balances in interest bearing accounts.
Previous wording
During the quarter ended March 29, 2024, other income was $1.0 million compared to $4.7 million during the quarter ended March 31, 2023.
Current wording
During the quarter ended June 28, 2024, other income was $1.9 million compared to an expense of $1.3 million during the quarter ended June 30, 2023.
Previous wording
We recorded an income tax provision of $84.5 million and $83.7 million for the quarters ended March 29, 2024 and March 31, 2023, respectively, representing effective tax rates of 15.7% and 15.3%.
Current wording
We recorded an income tax provision of $63.7 million and $104.4 million for the quarters ended June 28, 2024 and June 30, 2023, respectively, representing effective tax rates of 15.8% and 15.3%, respectively.
Previous wording
Revenue from PSG increased by $13.3 million, or approximately 2%, for the quarter ended March 29, 2024 compared to the quarter ended March 31, 2023. Revenue from our Automotive Power Division increased by $82.6 million primarily driven by our continued ramp up in SiC and other power automotive solutions. This was partially offset by decreases in revenue from our Multi-Market Power Division and Industrial Power Division of $48.6 million and $20.5 million, respectively, which was primarily driven by a decrease in demand in the industrial and communications end-markets.
Current wording
Revenue from PSG decreased by $128.8 million, or approximately 7%, for the six months ended June 28, 2024 compared to the six months ended June 30, 2023. Revenue from our Multi-Market Power Division and Industrial Power Division decreased by $117.4 million and $57.2 million, respectively, primarily driven by a decrease in demand in the industrial and communications end-markets which was partially offset by an increase in revenue from our Automotive Power Division of $45.8 million.
Previous wording
PSG gross profit decreased by $31.0 million, primarily driven by a decline in existing business which negatively impacted gross profit by approximately $76 million, partially offset by an increase in new product sales which contributed gross profit of approximately $45 million. PSG gross margin decreased by 4.2% to 41.8% from 46.0% primarily as a result of the decline in existing business and the related impact of unfavorable product mix.
Current wording
PSG gross profit decreased by $150.2 million, primarily driven by a decline in volume which negatively impacted gross profit by approximately $148 million. PSG gross margin decreased by 5.2% to 41.8% from 47.0%, primarily as a result of the decline in volume, underutilization and the related impact of unfavorable product mix.
Previous wording
AMG gross profit decreased by $5.2 million, primarily driven by a decline in existing business which negatively impacted gross profit by approximately $39 million, partially offset by the reallocation of $34 million of manufacturing costs at our EFK location to the new product revenue category under PSG. AMG gross margin increased by approximately 2.4% to 48.6% from 46.2%, primarily due to improved product mix and the reduction in foundry business.
Current wording
AMG gross profit decreased by $53.5 million, primarily driven by a decline in existing business which negatively impacted gross profit by approximately $108 million, partially offset by improved gross profit of approximately $54 million from the lower-margin foundry business at our EFK location. AMG gross margin increased by 2.6% to 49.1% from 46.5%, primarily due to the reduction in the lower-margin foundry business.
Previous wording
General and administrative expenses were $95.3 million for the quarter ended March 29, 2024, as compared to $75.9 million for the quarter ended March 31, 2023, representing an increase of $19.4 million, or approximately 26%. The increase was primarily attributable to an adjustment to variable compensation during the quarter ended March 31, 2023.
Current wording
General and administrative expenses were $180.3 million for the six months ended June 28, 2024, as compared to $163.1 million for the six months ended June 30, 2023, representing an increase of $17.2 million, or approximately 11%. The increase was primarily attributable to expenses associated with information technology initiatives and an adjustment to variable compensation during the quarter ended March 31, 2023.
Previous wording
Amortization of acquisition-related intangible assets was $12.6 million for the quarter ended March 29, 2024, as compared to $15.0 million for the quarter ended March 31, 2023, representing a decrease of $2.4 million, or approximately 16%. The decrease was due to a reduction in amortization expense as certain intangible assets became fully amortized.
Current wording
Amortization of acquisition-related intangible assets was $25.5 million and $27.0 million for the six months ended June 28, 2024 and June 30, 2023, respectively, representing a decrease of $1.5 million, or approximately 6%. The decrease was due to a reduction in amortization expense as certain intangible assets became fully amortized.
Previous wording
Interest expense decreased by $10.8 million to $15.6 million during the quarter ended March 29, 2024, as compared to $26.4 million during the quarter ended March 31, 2023. The decrease was primarily due to higher variable-rate debt that was paid down and replaced by the 0.50% Notes during the quarter ended March 31, 2023. Our average gross long-term debt for the quarter ended March 29, 2024 was $3,379.9 million at a weighted-average interest rate of 1.8%, as compared to $3,371.4 million at a weighted-average interest rate of 3.1% for the quarter ended March 31, 2023. The calculation of our weighted-average interest rates includes the effect of our interest rate swap agreements.
Current wording
Interest expense decreased by $11.5 million to $31.3 million during the six months ended June 28, 2024, as compared to $42.8 million during the six months ended June 30, 2023. The decrease was primarily due to higher variable-rate debt that was paid down and replaced by the 0.50% Notes in 2023. Our average gross long-term debt balance for the six months ended June 28, 2024 was $3,379.9 million at a weighted-average interest rate of 1.9%, as compared to $3,363.9 million at a weighted-average interest rate of 2.5% for the six months ended June 30, 2023. The calculation of our weighted-average interest rates includes the effect of our interest rate swap agreements.
Previous wording
Our principal sources of liquidity are cash on hand, cash generated from operations, available borrowings under our Revolving Credit Facility as well as new debt and/or equity issuances. In the near term, we expect to fund our cash requirements by utilizing any or a combination of these principal sources, including any amounts required to satisfy our current portion of long-term debt. Our cash and cash equivalents was approximately $2.6 billion as of March 29, 2024, and the Revolving Credit Facility has approximately $1.1 billion available for future borrowings.
Current wording
Our principal sources of liquidity are cash on hand, cash generated from operations, available borrowings under our Revolving Credit Facility as well as new debt and/or equity issuances. In the near term, we expect to fund our cash requirements by utilizing any or a combination of these principal sources, including any amounts required to satisfy our current portion of long-term debt. Our cash and cash equivalents and short-term investments were approximately $2.7 billion as of June 28, 2024, and the Revolving Credit Facility has approximately $1.1 billion available for future borrowings.
Previous wording
Our cash flows from operating activities were $498.7 million and $408.9 million for the quarters ended March 29, 2024 and March 31, 2023, respectively. The increase of $89.8 million was primarily attributable to improved working capital management.
Current wording
Our cash flows from operating activities were $860.9 million and $799.7 million for the six months ended June 28, 2024 and June 30, 2023, respectively. The increase of $61.2 million was primarily due to improved working capital management.
Previous wording
Our cash flows used in investing activities were $235.3 million and $562.0 million for the quarters ended March 29, 2024 and March 31, 2023, respectively. The decrease of $326.7 million was primarily attributable to a decrease in capital expenditures and payments for the acquisition of our EFK location during the quarter ended March 31, 2023. Our capital expenditures as a percent of revenue was approximately 12%, and we expect capital expenditures to be in the range of 10% - 12% of revenue for the remainder of 2024.
Current wording
Our cash flows used in investing activities were $826.2 million and $945.5 million for the six months ended June 28, 2024 and June 30, 2023, respectively. The decrease of $119.3 million was primarily attributable to a decrease in capital expenditures and payments for the acquisition of our EFK location during the six months ended June 30, 2023 partially offset by the purchase of short-term investments. Our capital expenditures as a percent of revenue were approximately 10%, and we expect capital expenditures to be in the range of 9% - 11% of revenue for the remainder of 2024.
Previous wording
Our cash flows used in financing activities were $130.8 million and $63.4 million for the quarters ended March 29, 2024 and March 31, 2023, respectively. The increase of $67.4 million was primarily attributable to the funds provided by the refinancing activity during the quarter ended March 31, 2023.
Current wording
Our cash flows used in financing activities were $283.5 million and $153.0 million for the six months ended June 28, 2024 and June 30, 2023, respectively. The increase of $130.5 million was primarily attributable to increased share repurchases during the six months ended June 28, 2024 compared to the same period in 2023. Additionally, during the quarter ended June 30, 2023, we had net cash outflows related to the establishment of our New Credit Agreement.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Current report — wording carried from elsewhere
Revenue by operating and reportable segments was as follows (dollars in millions):
Current report — wording carried from elsewhere
Interest expense decreased by $0.7 million to $15.7 million during the quarter ended June 28, 2024, as compared to $16.4 million during the quarter ended June 30, 2023. The decrease was primarily due to the maturity of the 1.625% notes in 2023. Our average gross long-term debt for the quarter ended June 28, 2024 was $3,379.9 million at a weighted-average interest rate of 1.9%, as compared to $3,507.1 million at a weighted-average interest rate of 1.9% for the quarter ended June 30, 2023. The calculation of our weighted-average interest rates includes the effect of our interest rate swap agreements.
Current report — wording carried from elsewhere
The following table summarizes certain information relating to our operating results that has been derived from our unaudited consolidated financial statements (in millions):
Current report — wording carried from elsewhere
Revenue was $3,597.9 million and $4,054.1 million for the six months ended June 28, 2024 and June 30, 2023, respectively, representing a decrease of $456.2 million, or approximately 11%, year over year. We had one customer, a distributor, whose revenue accounted for approximately 11% and 10% of our total revenue for the six months ended June 28, 2024 and June 30, 2023, respectively.
Current report — wording carried from elsewhere
Revenue by operating and reportable segments was as follows (dollars in millions):
Current report — wording carried from elsewhere
Our gross profit by operating and reportable segments was as follows (dollars in millions):
Current report — wording carried from elsewhere
Explanation for the increase or decrease in gross profit amounts and gross margin percentages for the six months ended June 28, 2024 compared to the six months ended June 30, 2023 is provided below:
Current report — wording carried from elsewhere
Amortization of Acquisition-Related Intangible Assets
Current report — wording carried from elsewhere
Restructuring, Asset Impairments and Other, Net
Current report — wording carried from elsewhere
For additional information, see Note 12: ''Income Taxes'' in the notes to the unaudited consolidated financial statements included elsewhere in this Form 10-Q.