Analysis of Debt
Total Debt (Carrying Amount)
Lumentum Holdings Inc., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2026-06-27), 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03).
Total debt experienced a period of significant expansion between July 2021 and July 2023, rising from $1.18 billion to a peak of $2.81 billion. Following this peak, the carrying amount remained relatively stable through June 2025, before contracting to $1.64 billion by June 2026.
- Debt Composition and Growth Trends
- The increase in total leverage from 2021 to 2023 was primarily driven by the long-term debt component, which grew from $789.8 million to $2.5 billion. This indicates a concentrated effort to increase long-term capital during this three-year window.
- Debt Maturity and Reclassification
- A critical structural shift in the debt profile is evident by June 2026. The long-term debt excluding the current portion declines sharply to $40.5 million, while the current portion of long-term debt rises to $1.597 billion. This pattern indicates a substantial maturity event, where the majority of the company's debt has transitioned from long-term obligations to current liabilities requiring settlement or refinancing within the year.
- Recent Leverage Stability and Contraction
- Between June 2024 and June 2025, total debt exhibited minimal volatility, maintaining a range between $2.50 billion and $2.57 billion. The subsequent reduction to $1.64 billion by June 2026 represents a notable decrease in the overall debt burden compared to the 2023-2025 plateau.
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Total Debt (Fair Value)
| Jun 27, 2026 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Convertible notes | 7,607,200) |
| Term loans | 92,800) |
| Total debt (fair value) | 7,700,000) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 4.70 |
Based on: 10-K (reporting date: 2026-06-27).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on convertible notes: 1.22%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 0.38% | 1,256,100) | 4,710) | |
| 1.50% | 54,700) | 821) | |
| 5.70% | 179,100) | 10,209) | |
| 5.80% | 54,700) | 3,173) | |
| Total | 1,544,600) | 18,912) | |
| 1.22% | |||
Based on: 10-K (reporting date: 2026-06-27).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 18,912 ÷ 1,544,600 = 1.22%