Lumentum Holdings Inc. (LITE) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Lumentum Holdings Inc. surfaced in its latest filing.

• On April 14, 2025, the U.S. Bureau of Industry and Security initiated Section 232 investigations into semiconductor imports.April 14, 2025
• On February 20, 2026, the administration announced new trade investigations under Section 301 of the Trade Act of 1974.February 20, 2026
• In May 2023, the Cyberspace Administration of China banned the sale of Micron Technology products to certain entities in China citing security risks.May 2023
• In August 2020, BIS final rules restricted Huawei access to U.S. technology, software, and equipment, preventing sales of certain EAR-subject products to Huawei without a BIS license.August 2020
• We stopped all product shipments to Huawei, historically our largest networking customer in China, beginning calendar year 2024.2024
• We submitted voluntary self-disclosures to BIS regarding product shipments to Huawei after the final rules and received an administrative subpoena from BIS in August 2024.August 2024
• We received a related subpoena from DOJ regarding our business with Huawei.
• U.S. imposed tariffs in 2025 and 2026 on imported goods, with levels ranging from 15% to over 100% in some cases.2025-2026
• China imposed export controls on rare earth metals and critical minerals.
• On May 16, 2019, Huawei was added to the Entity List, restricting supply of certain U.S. items and product support.May 16, 2019
• In May and August 2020 and in October 2022, additional regulatory restrictions were imposed on the Foreign-Produced Direct Product Rule concerning Huawei.2020-2022
• FiberHome Technologies was added to the Entity List on May 22, 2020.May 22, 2020
• During fiscal years 2023 and 2025, the Company completed international restructurings that included the intra-entity transfer of certain intellectual property and other assets among various subsidiaries.2023, 2025
• On July 4, 2025, H.R.1, the One Big Beautiful Bill Act (OBBBA), was signed into law, extending certain Tax Cuts and Jobs Act provisions and modifying international tax framework.July 4, 2025
• In December 2019, we issued $1,050 million 0.50% Convertible Senior Notes due 2026.December 2019
• In March 2022, we issued $861 million 0.50% Convertible Senior Notes due 2028.March 2022
• In June 2023, we issued $603.7 million 1.50% Convertible Senior Notes due 2029.June 2023
• In September 2025, we issued $1,265.0 million 0.375% Convertible Senior Notes due 2032.September 2025
• In December 2025, we entered into a Credit Agreement providing for a senior secured revolving credit facility of $400.0 million, with a $23.0 million sublimit for letters of credit.December 2025
• On December 19, 2025, we entered into a credit agreement with Wells Fargo Bank, N.A. as agent, providing a $400.0 million senior secured revolving credit facility, including a $23.0 million letter of credit sublimit.December 19, 2025
• Entry into the First Supplemental Indenture dated September 25, 2024 to the 2026 Indenture.September 25, 2024
• Irrevocable settlement method elections made on September 25, 2024 with respect to the 2028 Notes and 2029 Notes.September 25, 2024
• We entered into 2032 Capped Call Options with the 2032 Capped Call Counterparties in connection with the issuance of the 2032 Notes.2032
• The OECD has proposed a global minimum tax of 15% (Pillar Two).
• The OECD and participating jurisdictions agreed to a 'side-by-side' solution exempting U.S.-parented multinationals from certain Pillar Two provisions for fiscal years beginning on or after January 1, 2026.January 1, 2026
• Subject to GDPR which became effective May 2018 with substantial penalties for noncompliance.May 2018
• Subject to California CCPA effective January 1, 2020.January 1, 2020
• Subject to California CPRA effective January 1, 2023.January 1, 2023
• European Commission adequacy decision for UK data transfers renewed in 2025 to extend through December 2031.2025
• During the three months ended March 28, 2026, the last reported sale price of the Company's common stock was at least 130% of the applicable conversion price of each respective convertible note for at least 20 trading days during the last 30 trading days, making the notes convertible at the option of holders with principal settled in cash.March 28, 2026