Delaware | 04-2302115 | |||||||||||||
(State or other jurisdiction ofincorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
(Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.25 per share | SWKS | Nasdaq Global Select Market |
Large accelerated filer | þ | Accelerated filer ☐ | Non-accelerated filer ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
PAGE NO. | |||||
Three Months Ended | Six Months Ended | ||||||||||||||
March 27, 2020 | March 29, 2019 | March 27, 2020 | March 29, 2019 | ||||||||||||
Net revenue | $ | 766.1 | $ | 810.4 | $ | 1,662.2 | $ | 1,782.4 | |||||||
Cost of goods sold | 390.5 | 410.2 | 842.3 | 897.0 | |||||||||||
Gross profit | 375.6 | 400.2 | 819.9 | 885.4 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 113.2 | 107.5 | 220.8 | 216.7 | |||||||||||
Selling, general and administrative | 58.6 | 47.9 | 114.0 | 95.7 | |||||||||||
Amortization of intangibles | 3.1 | 5.7 | 6.3 | 13.1 | |||||||||||
Restructuring and other charges | 1.2 | 1.5 | 2.0 | 1.4 | |||||||||||
Total operating expenses | 176.1 | 162.6 | 343.1 | 326.9 | |||||||||||
Operating income | 199.5 | 237.6 | 476.8 | 558.5 | |||||||||||
Other income, net | 3.5 | 3.7 | 4.9 | 6.6 | |||||||||||
Income before income taxes | 203.0 | 241.3 | 481.7 | 565.1 | |||||||||||
Provision for income taxes | 21.9 | 27.3 | 43.6 | 66.3 | |||||||||||
Net income | $ | 181.1 | $ | 214.0 | $ | 438.1 | $ | 498.8 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 1.07 | $ | 1.23 | $ | 2.58 | $ | 2.85 | |||||||
Diluted | $ | 1.06 | $ | 1.23 | $ | 2.56 | $ | 2.83 | |||||||
Weighted average shares: | |||||||||||||||
Basic | 170.0 | 173.8 | 170.1 | 175.2 | |||||||||||
Diluted | 171.1 | 174.6 | 171.3 | 176.1 | |||||||||||
Cash dividends declared and paid per share | $ | 0.44 | $ | 0.38 | $ | 0.88 | $ | 0.76 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||||||||||||||||||||||||||
Net revenue | $ | 736.8 | $ | 767.0 | $ | 2,398.9 | $ | 2,549.4 | |||||||||||||||||||||||||||
Cost of goods sold | 402.7 | 454.5 | 1,244.9 | 1,351.6 | |||||||||||||||||||||||||||||||
Gross profit | 334.1 | 312.5 | 1,154.0 | 1,197.8 | |||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Research and development | 117.0 | 100.6 | 337.9 | 317.3 | |||||||||||||||||||||||||||||||
Selling, general and administrative | 55.0 | 46.8 | 169.1 | 142.5 | |||||||||||||||||||||||||||||||
Amortization of intangibles | 2.8 | 5.5 | 9.0 | 18.6 | |||||||||||||||||||||||||||||||
Restructuring, impairment and other charges | 11.8 | — | 13.8 | 1.3 | |||||||||||||||||||||||||||||||
Total operating expenses | 186.6 | 152.9 | 529.8 | 479.7 | |||||||||||||||||||||||||||||||
Operating income | 147.5 | 159.6 | 624.2 | 718.1 | |||||||||||||||||||||||||||||||
Other income (expense), net | (3.5) | 2.3 | 1.4 | 8.9 | |||||||||||||||||||||||||||||||
Income before income taxes | 144.0 | 161.9 | 625.6 | 727.0 | |||||||||||||||||||||||||||||||
Provision for income taxes | 14.3 | 17.8 | 57.7 | 84.0 | |||||||||||||||||||||||||||||||
Net income | $ | 129.7 | $ | 144.1 | $ | 567.9 | $ | 643.0 | |||||||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||||||
Basic | $ | 0.78 | $ | 0.83 | $ | 3.36 | $ | 3.69 | |||||||||||||||||||||||||||
Diluted | $ | 0.77 | $ | 0.83 | $ | 3.33 | $ | 3.67 | |||||||||||||||||||||||||||
Weighted average shares: | |||||||||||||||||||||||||||||||||||
Basic | 167.0 | 172.6 | 169.1 | 174.3 | |||||||||||||||||||||||||||||||
Diluted | 168.3 | 173.4 | 170.3 | 175.2 | |||||||||||||||||||||||||||||||
Cash dividends declared and paid per share | $ | 0.44 | $ | 0.38 | $ | 1.32 | $ | 1.14 |
Three Months Ended | Six Months Ended | ||||||||||||||
March 27, 2020 | March 29, 2019 | March 27, 2020 | March 29, 2019 | ||||||||||||
Net income | $ | 181.1 | $ | 214.0 | $ | 438.1 | $ | 498.8 | |||||||
Other comprehensive income, net of tax | |||||||||||||||
Fair value of investments | 0.5 | 0.1 | 0.4 | 0.2 | |||||||||||
Pension adjustments | — | 0.5 | — | 0.5 | |||||||||||
Comprehensive income | $ | 181.6 | $ | 214.6 | $ | 438.5 | $ | 499.5 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||||||||||||||||||||||||||
Net income | $ | 129.7 | $ | 144.1 | $ | 567.9 | $ | 643.0 | |||||||||||||||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||||||||||||||||||
Fair value of investments | (0.1) | 0.3 | 0.3 | 0.5 | |||||||||||||||||||||||||||||||
Pension adjustments | — | — | — | 0.5 | |||||||||||||||||||||||||||||||
Comprehensive income | $ | 129.6 | $ | 144.4 | $ | 568.2 | $ | 644.0 |
As of | |||||||
March 27, 2020 | September 27, 2019 | ||||||
ASSETS | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 912.4 | $ | 851.3 | |||
Marketable securities | 161.5 | 203.3 | |||||
Receivables, net of allowance of $0.8 and $0.8, respectively | 367.6 | 465.3 | |||||
Inventory | 648.9 | 609.7 | |||||
Other current assets | 130.4 | 105.0 | |||||
Total current assets | 2,220.8 | 2,234.6 | |||||
Property, plant and equipment, net | 1,207.9 | 1,205.6 | |||||
Operating lease right-of-use assets | 171.3 | — | |||||
Goodwill | 1,189.8 | 1,189.8 | |||||
Intangible assets, net | 85.4 | 107.9 | |||||
Deferred tax assets, net | 39.6 | 40.8 | |||||
Marketable securities | 34.1 | 27.6 | |||||
Other long-term assets | 33.0 | 33.3 | |||||
Total assets | $ | 4,981.9 | $ | 4,839.6 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 169.5 | $ | 190.5 | |||
Accrued compensation and benefits | 78.4 | 76.0 | |||||
Other current liabilities | 114.3 | 107.5 | |||||
Total current liabilities | 362.2 | 374.0 | |||||
Long-term tax liabilities | 293.0 | 312.4 | |||||
Long-term operating lease liabilities | 151.9 | — | |||||
Other long-term liabilities | 32.0 | 30.9 | |||||
Total liabilities | 839.1 | 717.3 | |||||
Stockholders’ equity: | |||||||
Preferred stock, no par value: 25.0 shares authorized, no shares issued | — | — | |||||
Common stock, $0.25 par value: 525.0 shares authorized; 231.9 shares issued and 167.5 shares outstanding at March 27, 2020, and 230.2 shares issued and 170.1 shares outstanding at September 27, 2019 | 41.9 | 42.5 | |||||
Additional paid-in capital | 3,307.2 | 3,188.0 | |||||
Treasury stock, at cost | (3,799.6 | ) | (3,412.9 | ) | |||
Retained earnings | 4,600.8 | 4,312.6 | |||||
Accumulated other comprehensive loss | (7.5 | ) | (7.9 | ) | |||
Total stockholders’ equity | 4,142.8 | 4,122.3 | |||||
Total liabilities and stockholders’ equity | $ | 4,981.9 | $ | 4,839.6 |
As of | |||||||||||||||||
June 26, 2020 | September 27, 2019 | ||||||||||||||||
ASSETS | (unaudited) | ||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 791.3 | $ | 851.3 | |||||||||||||
Marketable securities | 347.0 | 203.3 | |||||||||||||||
Receivables, net of allowance of $0.9 and $0.8, respectively | 346.1 | 465.3 | |||||||||||||||
Inventory | 698.2 | 609.7 | |||||||||||||||
Other current assets | 154.8 | 105.0 | |||||||||||||||
Total current assets | 2,337.4 | 2,234.6 | |||||||||||||||
Property, plant and equipment, net | 1,206.9 | 1,205.6 | |||||||||||||||
Operating lease right-of-use assets | 172.7 | — | |||||||||||||||
Goodwill | 1,189.8 | 1,189.8 | |||||||||||||||
Intangible assets, net | 62.9 | 107.9 | |||||||||||||||
Deferred tax assets, net | 42.6 | 40.8 | |||||||||||||||
Marketable securities | 24.1 | 27.6 | |||||||||||||||
Other long-term assets | 36.0 | 33.3 | |||||||||||||||
Total assets | $ | 5,072.4 | $ | 4,839.6 | |||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 200.9 | $ | 190.5 | |||||||||||||
Accrued compensation and benefits | 94.6 | 76.0 | |||||||||||||||
Other current liabilities | 105.6 | 107.5 | |||||||||||||||
Total current liabilities | 401.1 | 374.0 | |||||||||||||||
Long-term tax liabilities | 300.6 | 312.4 | |||||||||||||||
Long-term operating lease liabilities | 155.8 | — | |||||||||||||||
Other long-term liabilities | 32.5 | 30.9 | |||||||||||||||
Total liabilities | 890.0 | 717.3 | |||||||||||||||
Stockholders’ equity: | |||||||||||||||||
Preferred stock, no par value: 25.0 shares authorized, no shares issued | — | — | |||||||||||||||
Common stock, $0.25 par value: 525.0 shares authorized; 232.1 shares issued and 167.1 shares outstanding at June 26, 2020, and 230.2 shares issued and 170.1 shares outstanding at September 27, 2019 | 41.8 | 42.5 | |||||||||||||||
Additional paid-in capital | 3,351.5 | 3,188.0 | |||||||||||||||
Treasury stock, at cost | (3,860.3) | (3,412.9) | |||||||||||||||
Retained earnings | 4,657.0 | 4,312.6 | |||||||||||||||
Accumulated other comprehensive loss | (7.6) | (7.9) | |||||||||||||||
Total stockholders’ equity | 4,182.4 | 4,122.3 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,072.4 | $ | 4,839.6 |
Shares of common stock | Par value of common stock | Shares of treasury stock | Value of treasury stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Total stockholders’ equity | ||||||||||||||||||||||||||||||||||||||||
Balance at September 27, 2019 | 170.1 | $ | 42.5 | 60.1 | $ | (3,412.9) | $ | 3,188.0 | $ | 4,312.6 | $ | (7.9) | $ | 4,122.3 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 257.1 | — | 257.1 | |||||||||||||||||||||||||||||||||||||||
Exercise and settlement of share-based awards, net of shares withheld for taxes | 1.1 | 0.3 | 0.3 | (26.7) | 34.6 | — | — | 8.2 | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 29.1 | — | — | 29.1 | |||||||||||||||||||||||||||||||||||||||
Stock repurchase program | (0.7) | (0.2) | 0.7 | (74.2) | 0.2 | — | — | (74.2) | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (75.1) | — | (75.1) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (0.1) | (0.1) | |||||||||||||||||||||||||||||||||||||||
Balance at December 27, 2019 | 170.5 | $ | 42.6 | 61.1 | $ | (3,513.8) | $ | 3,251.9 | $ | 4,494.6 | $ | (8.0) | $ | 4,267.3 | |||||||||||||||||||||||||||||||||
Net income | — | $ | — | — | $ | — | $ | — | 181.1 | — | 181.1 | ||||||||||||||||||||||||||||||||||||
Exercise and settlement of share-based awards and related tax benefit, net of shares withheld for taxes | 0.3 | 0.1 | — | (2.0) | 20.4 | — | — | 18.5 | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 34.1 | — | — | 34.1 | |||||||||||||||||||||||||||||||||||||||
Stock repurchase program | (3.2) | (0.8) | 3.2 | (283.8) | 0.8 | — | — | (283.8) | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (74.9) | — | (74.9) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 0.5 | 0.5 | |||||||||||||||||||||||||||||||||||||||
Balance at March 27, 2020 | 167.6 | $ | 41.9 | 64.3 | $ | (3,799.6) | $ | 3,307.2 | $ | 4,600.8 | $ | (7.5) | $ | 4,142.8 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 129.7 | — | 129.7 | |||||||||||||||||||||||||||||||||||||||
Exercise and settlement of share-based awards and related tax benefit, net of shares withheld for taxes | 0.2 | 0.1 | — | (2.2) | 8.9 | — | — | 6.8 | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 35.2 | — | — | 35.2 | |||||||||||||||||||||||||||||||||||||||
Stock repurchase program | (0.7) | (0.2) | 0.7 | (58.5) | 0.2 | — | — | (58.5) | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (73.5) | — | (73.5) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (0.1) | (0.1) | |||||||||||||||||||||||||||||||||||||||
Balance at June 26, 2020 | 167.1 | $ | 41.8 | 65.0 | $ | (3,860.3) | $ | 3,351.5 | $ | 4,657.0 | $ | (7.6) | $ | 4,182.4 | |||||||||||||||||||||||||||||||||
Balance at September 28, 2018 | 177.4 | $ | 44.4 | 51.0 | $ | (2,732.5) | $ | 3,061.0 | $ | 3,732.9 | $ | (8.8) | $ | 4,097.0 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 284.9 | — | 284.9 | |||||||||||||||||||||||||||||||||||||||
Exercise and settlement of share-based awards, net of shares withheld for taxes | 0.7 | 0.1 | 0.2 | (19.6) | 5.1 | — | — | (14.4) | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 21.3 | — | — | 21.3 | |||||||||||||||||||||||||||||||||||||||
Stock repurchase program | (4.0) | (1.0) | 4.0 | (284.0) | 1.0 | — | — | (284.0) | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (67.1) | — | (67.1) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 0.6 | 0.6 | |||||||||||||||||||||||||||||||||||||||
Balance at December 28, 2018 | 174.1 | $ | 43.5 | 55.2 | $ | (3,036.1) | $ | 3,088.4 | $ | 3,950.7 | $ | (8.2) | $ | 4,038.3 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 214.0 | — | 214.0 | |||||||||||||||||||||||||||||||||||||||
Exercise and settlement of share-based awards and related tax benefit, net of shares withheld for taxes | 0.3 | 0.1 | 0.1 | (1.5) | 15.5 | — | — | 14.2 | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 21.8 | — | — | 21.8 | |||||||||||||||||||||||||||||||||||||||
Stock repurchase program | (1.7) | (0.4) | 1.7 | (141.5) | 0.5 | — | — | (141.5) | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (66.0) | — | (66.0) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 0.1 | 0.1 |
Shares of common stock | Par value of common stock | Shares of treasury stock | Value of treasury stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Total stockholders’ equity | ||||||||||||||||||||||
Balance at September 27, 2019 | 170.1 | $ | 42.5 | 60.1 | $ | (3,412.9 | ) | $ | 3,188.0 | $ | 4,312.6 | $ | (7.9 | ) | $ | 4,122.3 | |||||||||||||
Net income | — | — | — | — | — | 257.1 | — | 257.1 | |||||||||||||||||||||
Exercise and settlement of share based awards, net of shares withheld for taxes | 1.1 | 0.3 | 0.3 | (26.7 | ) | 34.6 | — | — | 8.2 | ||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 29.1 | — | — | 29.1 | |||||||||||||||||||||
Stock repurchase program | (0.7 | ) | (0.2 | ) | 0.7 | (74.2 | ) | 0.2 | — | — | (74.2 | ) | |||||||||||||||||
Dividends declared | — | — | — | — | — | (75.1 | ) | — | (75.1 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (0.1 | ) | (0.1 | ) | |||||||||||||||||||
Balance at December 27, 2019 | 170.5 | $ | 42.6 | 61.1 | $ | (3,513.8 | ) | $ | 3,251.9 | $ | 4,494.6 | $ | (8.0 | ) | $ | 4,267.3 | |||||||||||||
Net income | — | — | — | — | — | 181.1 | — | 181.1 | |||||||||||||||||||||
Exercise and settlement of share based awards and related tax benefit, net of shares withheld for taxes | 0.3 | 0.1 | — | (2.0 | ) | 20.4 | — | — | 18.5 | ||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 34.1 | — | — | 34.1 | |||||||||||||||||||||
Stock repurchase program | (3.2 | ) | (0.8 | ) | 3.2 | (283.8 | ) | 0.8 | — | — | (283.8 | ) | |||||||||||||||||
Dividends declared | — | — | — | — | — | (74.9 | ) | — | (74.9 | ) | |||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 0.5 | 0.5 | |||||||||||||||||||||
Balance at March 27, 2020 | 167.6 | $ | 41.9 | 64.3 | $ | (3,799.6 | ) | $ | 3,307.2 | $ | 4,600.8 | $ | (7.5 | ) | $ | 4,142.8 | |||||||||||||
Balance at September 28, 2018 | 177.4 | $ | 44.4 | 51.0 | $ | (2,732.5 | ) | $ | 3,061.0 | $ | 3,732.9 | $ | (8.8 | ) | $ | 4,097.0 | |||||||||||||
Net income | — | — | — | — | — | 284.9 | — | 284.9 | |||||||||||||||||||||
Exercise and settlement of share based awards, net of shares withheld for taxes | 0.7 | 0.1 | 0.2 | (19.6 | ) | 5.1 | — | — | (14.4 | ) | |||||||||||||||||||
Share-based compensation expense | — | — | — | — | 21.3 | — | — | 21.3 | |||||||||||||||||||||
Stock repurchase program | (4.0 | ) | (1.0 | ) | 4.0 | (284.0 | ) | 1.0 | — | — | (284.0 | ) | |||||||||||||||||
Dividends declared | — | — | — | — | — | (67.1 | ) | — | (67.1 | ) | |||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 0.6 | 0.6 | |||||||||||||||||||||
Balance at December 28, 2018 | 174.1 | $ | 43.5 | 55.2 | $ | (3,036.1 | ) | $ | 3,088.4 | $ | 3,950.7 | $ | (8.2 | ) | $ | 4,038.3 | |||||||||||||
Net income | — | — | — | — | — | 214.0 | — | 214.0 | |||||||||||||||||||||
Exercise and settlement of share based awards and related tax benefit, net of shares withheld for taxes | 0.3 | 0.1 | 0.1 | (1.5 | ) | 15.5 | — | — | 14.2 | ||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 21.8 | — | — | 21.8 | |||||||||||||||||||||
Stock repurchase program | (1.7 | ) | (0.4 | ) | 1.7 | (141.5 | ) | 0.5 | — | — | (141.5 | ) | |||||||||||||||||
Dividends declared | — | — | — | — | — | (66.0 | ) | — | (66.0 | ) | |||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 0.1 | 0.1 | |||||||||||||||||||||
Balance at March 29, 2019 | 172.7 | $ | 43.2 | 57.0 | $ | (3,179.1 | ) | $ | 3,126.2 | $ | 4,098.7 | $ | (8.1 | ) | $ | 4,080.9 |
Balance at March 29, 2019 | 172.7 | $ | 43.2 | 57.0 | $ | (3,179.1) | $ | 3,126.2 | $ | 4,098.7 | $ | (8.1) | $ | 4,080.9 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 144.1 | — | 144.1 | |||||||||||||||||||||||||||||||||||||||
Exercise and settlement of share-based awards and related tax benefit, net of shares withheld for taxes | 0.2 | — | — | (0.7) | 7.8 | — | — | 7.1 | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 19.0 | — | — | 19.0 | |||||||||||||||||||||||||||||||||||||||
Stock repurchase program | (1.2) | (0.3) | 1.2 | (85.8) | 0.2 | — | — | (85.8) | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (65.7) | — | (65.7) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 0.3 | 0.3 | |||||||||||||||||||||||||||||||||||||||
Balance at June 28, 2019 | 171.6 | $ | 42.9 | 58.2 | $ | (3,265.6) | $ | 3,153.3 | $ | 4,177.1 | $ | (7.8) | $ | 4,099.9 |
Nine Months Ended | |||||||||||||||||
June 26, 2020 | June 28, 2019 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 567.9 | $ | 643.0 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Share-based compensation | 111.6 | 58.6 | |||||||||||||||
Depreciation | 238.2 | 235.4 | |||||||||||||||
Amortization of intangible assets, including inventory step-up | 35.4 | 43.3 | |||||||||||||||
Deferred income taxes | (1.8) | (12.1) | |||||||||||||||
Asset impairment charges | 11.8 | — | |||||||||||||||
Changes in fair value of contingent consideration | — | (3.1) | |||||||||||||||
Other, net | 2.8 | 0.1 | |||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Receivables, net | 119.2 | 98.0 | |||||||||||||||
Inventory | (83.5) | (89.7) | |||||||||||||||
Accounts payable | 12.7 | (24.5) | |||||||||||||||
Other current and long-term assets and liabilities | (76.8) | 1.4 | |||||||||||||||
Net cash provided by operating activities | 937.5 | 950.4 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Capital expenditures | (243.5) | (314.0) | |||||||||||||||
Purchased intangibles | (7.6) | (11.8) | |||||||||||||||
Purchases of marketable securities | (439.9) | (243.7) | |||||||||||||||
Sales and maturities of marketable securities | 300.0 | 334.4 | |||||||||||||||
Net cash used in investing activities | (391.0) | (235.1) | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Repurchase of common stock - payroll tax withholdings on equity awards | (30.9) | (21.6) | |||||||||||||||
Repurchase of common stock - stock repurchase program | (416.5) | (511.3) | |||||||||||||||
Dividends paid | (223.5) | (198.8) | |||||||||||||||
Net proceeds from exercise of stock options | 52.2 | 14.6 | |||||||||||||||
Proceeds from employee stock purchase plan | 12.2 | 11.3 | |||||||||||||||
Net cash used in financing activities | (606.5) | (705.8) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (60.0) | 9.5 | |||||||||||||||
Cash and cash equivalents at beginning of period | 851.3 | 733.3 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 791.3 | $ | 742.8 | |||||||||||||
Supplemental cash flow disclosures: | |||||||||||||||||
Income taxes paid | $ | 103.4 | $ | 116.5 | |||||||||||||
Non-cash investing in capital expenditures, accrued but not paid | $ | 105.8 | $ | 121.5 |
Six Months Ended | |||||||
March 27, 2020 | March 29, 2019 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 438.1 | $ | 498.8 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Share-based compensation | 73.8 | 42.6 | |||||
Depreciation | 160.3 | 156.4 | |||||
Amortization of intangible assets, including inventory step-up | 22.7 | 28.6 | |||||
Deferred income taxes | 1.1 | (27.6 | ) | ||||
Other, net | 2.1 | 0.8 | |||||
Changes in assets and liabilities: | |||||||
Receivables, net | 97.7 | 112.0 | |||||
Inventory | (37.0 | ) | (66.9 | ) | |||
Accounts payable | (13.2 | ) | (23.9 | ) | |||
Other current and long-term assets and liabilities | (66.8 | ) | 20.3 | ||||
Net cash provided by operating activities | 678.8 | 741.1 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (171.9 | ) | (226.2 | ) | |||
Purchased intangibles | (0.2 | ) | (12.9 | ) | |||
Purchases of marketable securities | (178.8 | ) | (166.7 | ) | |||
Sales and maturities of marketable securities | 214.4 | 309.2 | |||||
Net cash used in investing activities | (136.5 | ) | (96.6 | ) | |||
Cash flows from financing activities: | |||||||
Repurchase of common stock - payroll tax withholdings on equity awards | (28.7 | ) | (21.0 | ) | |||
Repurchase of common stock - stock repurchase program | (358.0 | ) | (425.5 | ) | |||
Dividends paid | (150.0 | ) | (133.1 | ) | |||
Net proceeds from exercise of stock options | 43.3 | 6.8 | |||||
Proceeds from employee stock purchase plan | 12.2 | 11.3 | |||||
Net cash used in financing activities | (481.2 | ) | (561.5 | ) | |||
Net increase in cash and cash equivalents | 61.1 | 83.0 | |||||
Cash and cash equivalents at beginning of period | 851.3 | 733.3 | |||||
Cash and cash equivalents at end of period | $ | 912.4 | $ | 816.3 | |||
Supplemental cash flow disclosures: | |||||||
Income taxes paid | $ | 81.1 | $ | 87.5 | |||
Non-cash investing in capital expenditures, accrued but not paid | $ | 95.4 | $ | 69.9 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||||||||||||||||||||||||||
United States | $ | 425.2 | $ | 355.7 | $ | 1,431.0 | $ | 1,358.9 | |||||||||||||||||||||||||||
China | 166.5 | 212.9 | 512.9 | 606.8 | |||||||||||||||||||||||||||||||
South Korea | 46.0 | 76.9 | 178.9 | 282.0 | |||||||||||||||||||||||||||||||
Taiwan | 64.9 | 78.0 | 165.9 | 182.8 | |||||||||||||||||||||||||||||||
Europe, Middle East and Africa | 29.0 | 36.5 | 91.9 | 100.2 | |||||||||||||||||||||||||||||||
Other Asia-Pacific | 5.2 | 7.0 | 18.3 | 18.7 | |||||||||||||||||||||||||||||||
Total | $ | 736.8 | $ | 767.0 | $ | 2,398.9 | $ | 2,549.4 |
Three Months Ended | Six Months Ended | ||||||||||||||
March 27, 2020 | March 29, 2019 | March 27, 2020 | March 29, 2019 | ||||||||||||
United States | $ | 415.4 | $ | 403.1 | $ | 1,005.8 | $ | 1,003.2 | |||||||
China | 178.0 | 199.4 | 346.4 | 394.0 | |||||||||||
South Korea | 73.9 | 106.0 | 133.0 | 205.0 | |||||||||||
Taiwan | 59.1 | 64.1 | 101.0 | 104.8 | |||||||||||
Europe, Middle East and Africa | 32.7 | 31.1 | 63.0 | 63.8 | |||||||||||
Other Asia-Pacific | 7.0 | 6.7 | 13.0 | 11.6 | |||||||||||
Total | $ | 766.1 | $ | 810.4 | $ | 1,662.2 | $ | 1,782.4 |
Current | Noncurrent | ||||||||||||||
Available for sale: | March 27, 2020 | September 27, 2019 | March 27, 2020 | September 27, 2019 | |||||||||||
U.S. Treasury and government | $ | 56.5 | $ | 34.2 | $ | 27.7 | $ | 20.0 | |||||||
Corporate bonds and notes | 83.4 | 66.2 | 6.4 | 5.9 | |||||||||||
Municipal bonds | 21.6 | 102.9 | — | 1.7 | |||||||||||
Total | $ | 161.5 | $ | 203.3 | $ | 34.1 | $ | 27.6 |
Current | Noncurrent | ||||||||||||||||||||||||||||||||||
Available for sale: | June 26, 2020 | September 27, 2019 | June 26, 2020 | September 27, 2019 | |||||||||||||||||||||||||||||||
U.S. Treasury and government | $ | 53.9 | $ | 34.2 | $ | 15.4 | $ | 20.0 | |||||||||||||||||||||||||||
Corporate bonds and notes | 257.9 | 66.2 | 3.2 | 5.9 | |||||||||||||||||||||||||||||||
Municipal bonds | 35.2 | 102.9 | 5.5 | 1.7 | |||||||||||||||||||||||||||||||
Total | $ | 347.0 | $ | 203.3 | $ | 24.1 | $ | 27.6 |
As of March 27, 2020 | As of September 27, 2019 | ||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents* | $ | 912.4 | $ | 772.7 | $ | 139.7 | $ | — | $ | 851.3 | $ | 809.5 | $ | 41.8 | $ | — | |||||||||||||||
U.S. Treasury and government securities | 84.2 | 40.3 | 43.9 | — | 54.2 | 28.4 | 25.8 | — | |||||||||||||||||||||||
Corporate bonds and notes | 89.8 | — | 89.8 | — | 72.1 | — | 72.1 | — | |||||||||||||||||||||||
Municipal bonds | 21.6 | — | 21.6 | — | 104.6 | — | 104.6 | — | |||||||||||||||||||||||
Total | $ | 1,108.0 | $ | 813.0 | $ | 295.0 | $ | — | $ | 1,082.2 | $ | 837.9 | $ | 244.3 | $ | — |
As of June 26, 2020 | As of September 27, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents* | $ | 791.3 | $ | 648.0 | $ | 143.3 | $ | — | $ | 851.3 | $ | 809.5 | $ | 41.8 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and government securities | 69.3 | 32.7 | 36.6 | — | 54.2 | 28.4 | 25.8 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and notes | 261.1 | — | 261.1 | — | 72.1 | — | 72.1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | 40.7 | — | 40.7 | — | 104.6 | — | 104.6 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,162.4 | $ | 680.7 | $ | 481.7 | $ | — | $ | 1,082.2 | $ | 837.9 | $ | 244.3 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of | |||||||||||||||||
June 26, 2020 | September 27, 2019 | ||||||||||||||||
Raw materials | $ | 37.7 | $ | 24.4 | |||||||||||||
Work-in-process | 484.4 | 336.2 | |||||||||||||||
Finished goods | 173.2 | 245.7 | |||||||||||||||
Finished goods held on consignment by customers | 2.9 | 3.4 | |||||||||||||||
Total inventory | $ | 698.2 | $ | 609.7 |
As of | |||||||
March 27, 2020 | September 27, 2019 | ||||||
Raw materials | $ | 22.2 | $ | 24.4 | |||
Work-in-process | 387.0 | 336.2 | |||||
Finished goods | 236.8 | 245.7 | |||||
Finished goods held on consignment by customers | 2.9 | 3.4 | |||||
Total inventory | $ | 648.9 | $ | 609.7 |
As of | |||||||||||||||||
June 26, 2020 | September 27, 2019 | ||||||||||||||||
Land and improvements | $ | 11.8 | $ | 11.7 | |||||||||||||
Buildings and improvements | 413.4 | 354.4 | |||||||||||||||
Furniture and fixtures | 44.2 | 33.8 | |||||||||||||||
Machinery and equipment | 2,495.1 | 2,311.5 | |||||||||||||||
Construction in progress | 118.9 | 172.5 | |||||||||||||||
Total property, plant and equipment, gross | 3,083.4 | 2,883.9 | |||||||||||||||
Accumulated depreciation | (1,876.5) | (1,678.3) | |||||||||||||||
Total property, plant and equipment, net | $ | 1,206.9 | $ | 1,205.6 |
As of | |||||||
March 27, 2020 | September 27, 2019 | ||||||
Land and improvements | $ | 11.8 | $ | 11.7 | |||
Buildings and improvements | 402.9 | 354.4 | |||||
Furniture and fixtures | 43.7 | 33.8 | |||||
Machinery and equipment | 2,353.3 | 2,311.5 | |||||
Construction in progress | 207.7 | 172.5 | |||||
Total property, plant and equipment, gross | 3,019.4 | 2,883.9 | |||||
Accumulated depreciation | (1,811.5 | ) | (1,678.3 | ) | |||
Total property, plant and equipment, net | $ | 1,207.9 | $ | 1,205.6 |
As of | As of | As of | As of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Amortization Period (Years) | March 27, 2020 | September 27, 2019 | Weighted Average Amortization Period (Years) | June 26, 2020 | September 27, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | 5.0 | $ | 18.2 | $ | (13.9 | ) | $ | 4.3 | $ | 25.6 | $ | (19.5 | ) | $ | 6.1 | Customer relationships | 5.0 | $ | 18.2 | $ | (14.8) | $ | 3.4 | $ | 25.6 | $ | (19.5) | $ | 6.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developed technology and other | 4.1 | 94.4 | (65.0 | ) | 29.4 | 94.4 | (48.9 | ) | 45.5 | Developed technology and other | 3.8 | 101.0 | (74.5) | 26.5 | 94.4 | (48.9) | 45.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | 3.0 | 1.6 | (1.6 | ) | — | 1.6 | (1.3 | ) | 0.3 | Trademarks | 3.0 | 1.6 | (1.6) | — | 1.6 | (1.3) | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Technology licenses | 3.1 | 25.1 | (9.3 | ) | 15.8 | 24.9 | (4.8 | ) | 20.1 | Technology licenses | 3.1 | 25.1 | (11.6) | 13.5 | 24.9 | (4.8) | 20.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IPR&D | 35.9 | — | 35.9 | 35.9 | — | 35.9 | IPR&D | 19.5 | — | 19.5 | 35.9 | — | 35.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | 175.2 | $ | (89.8 | ) | $ | 85.4 | $ | 182.4 | $ | (74.5 | ) | $ | 107.9 | Total intangible assets | $ | 165.4 | $ | (102.5) | $ | 62.9 | $ | 182.4 | $ | (74.5) | $ | 107.9 |
Remaining 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | ||||||||||||||||||||||||||||||
Amortization expense, cost of goods sold | $ | 5.3 | $ | 6.0 | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 1.8 | |||||||||||||||||||||||
Amortization expense, operating expense | $ | 5.0 | $ | 16.2 | $ | 5.0 | $ | 1.0 | $ | 0.9 | $ | 1.9 | |||||||||||||||||||||||
Total amortization expense | $ | 10.3 | $ | 22.2 | $ | 5.1 | $ | 1.1 | $ | 1.0 | $ | 3.7 |
Remaining 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | ||||||||||||||||||
Amortization expense, cost of goods sold | $ | 9.6 | $ | 2.7 | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 1.8 | |||||||||||
Amortization expense, operating expense | $ | 10.9 | $ | 15.3 | $ | 5.0 | $ | 1.0 | $ | 1.0 | $ | 1.9 | |||||||||||
Total amortization expense | $ | 20.5 | $ | 18.0 | $ | 5.1 | $ | 1.1 | $ | 1.1 | $ | 3.7 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||||||||||||||||||||||||||
United States income taxes | $ | 4.1 | $ | 1.8 | $ | 27.3 | $ | 52.7 | |||||||||||||||||||||||||||
Foreign income taxes | 10.2 | 16.0 | 30.4 | 31.3 | |||||||||||||||||||||||||||||||
Provision for income taxes | $ | 14.3 | $ | 17.8 | $ | 57.7 | $ | 84.0 | |||||||||||||||||||||||||||
Effective tax rate | 9.9 | % | 11.0 | % | 9.2 | % | 11.6 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
March 27, 2020 | March 29, 2019 | March 27, 2020 | March 29, 2019 | ||||||||||||
United States income taxes | $ | 11.8 | $ | 21.3 | $ | 23.3 | $ | 50.9 | |||||||
Foreign income taxes | 10.1 | 6.0 | 20.3 | 15.4 | |||||||||||
Provision for income taxes | $ | 21.9 | $ | 27.3 | $ | 43.6 | $ | 66.3 | |||||||
Effective tax rate | 10.8 | % | 11.4 | % | 9.0 | % | 11.8 | % |
2020 | 2020 | |||||||||||||||||||||||
Per Share | Total Amount | Per Share | Total Amount | |||||||||||||||||||||
First quarter | $ | 0.44 | $ | 75.1 | First quarter | $ | 0.44 | $ | 75.1 | |||||||||||||||
Second quarter | 0.44 | 74.9 | Second quarter | 0.44 | 74.9 | |||||||||||||||||||
Third quarter | Third quarter | 0.44 | 73.5 | |||||||||||||||||||||
Total | $ | 0.88 | $ | 150.0 | Total | $ | 1.32 | $ | 223.5 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||||||||||||||||||||||||||
Cost of goods sold | $ | 4.7 | $ | 1.3 | $ | 16.1 | $ | 8.2 | |||||||||||||||||||||||||||
Research and development | 17.0 | 9.5 | 49.0 | 31.9 | |||||||||||||||||||||||||||||||
Selling, general and administrative | 16.1 | 5.2 | 46.5 | 18.5 | |||||||||||||||||||||||||||||||
Total share-based compensation | $ | 37.8 | $ | 16.0 | $ | 111.6 | $ | 58.6 |
Three Months Ended | Six Months Ended | ||||||||||||||
March 27, 2020 | March 29, 2019 | March 27, 2020 | March 29, 2019 | ||||||||||||
Cost of goods sold | $ | 7.2 | $ | 3.3 | $ | 11.4 | $ | 6.9 | |||||||
Research and development | 17.2 | 9.9 | 32.0 | 22.4 | |||||||||||
Selling, general and administrative | 15.8 | 8.6 | 30.4 | 13.3 | |||||||||||
Total share-based compensation | $ | 40.2 | $ | 21.8 | $ | 73.8 | $ | 42.6 |
Six Months Ended | |||
March 27, 2020 | |||
Operating cash outflows from operating leases | $ | 11.4 | |
Operating lease assets obtained in exchange for new lease liabilities | $ | 29.8 |
Nine Months Ended | |||||||||||
June 26, 2020 | |||||||||||
Operating cash outflows from operating leases | $ | 18.2 | |||||||||
Operating lease assets obtained in exchange for new lease liabilities | $ | 30.5 |
March 27, 2020 | |||
2020 (remainder) | $ | 9.9 | |
2021 | 23.7 | ||
2022 | 24.4 | ||
2023 | 23.8 | ||
2024 | 21.4 | ||
Thereafter | 97.7 | ||
Total lease payments | 200.9 | ||
Less: imputed interest | (28.3 | ) | |
Present value of lease liabilities | 172.6 | ||
Less: current portion (included in other current liabilities) | (20.7 | ) | |
Total | $ | 151.9 |
June 26, 2020 | |||||
2020 (remainder) | $ | 3.0 | |||
2021 | 29.1 | ||||
2022 | 28.1 | ||||
2023 | 24.7 | ||||
2024 | 21.5 | ||||
Thereafter | 101.9 | ||||
Total lease payments | 208.3 | ||||
Less: imputed interest | (28.5) | ||||
Present value of lease liabilities | 179.8 | ||||
Less: current portion (included in other current liabilities) | (24.0) | ||||
Total | $ | 155.8 |
September 27, 2019 | |||||
2020 | $ | 26.7 | |||
2021 | 25.9 | ||||
2022 | 24.8 | ||||
2023 | 23.3 | ||||
2024 | 21.5 | ||||
Thereafter | 97.7 | ||||
Total | $ | 219.9 |
September 27, 2019 | |||
2020 | $ | 26.7 | |
2021 | 25.9 | ||
2022 | 24.8 | ||
2023 | 23.3 | ||
2024 | 21.5 | ||
Thereafter | 97.7 | ||
Total | $ | 219.9 |
2020 | ||||||
Weighted-average remaining lease term (years) | ||||||
Weighted-average discount rate | % |
Three Months Ended | Six Months Ended | ||||||||||||||
March 27, 2020 | March 29, 2019 | March 27, 2020 | March 29, 2019 | ||||||||||||
Net income | $ | 181.1 | $ | 214.0 | $ | 438.1 | $ | 498.8 | |||||||
Weighted average shares outstanding – basic | 170.0 | 173.8 | 170.1 | 175.2 | |||||||||||
Dilutive effect of equity-based awards | 1.1 | 0.8 | 1.2 | 0.9 | |||||||||||
Weighted average shares outstanding – diluted | 171.1 | 174.6 | 171.3 | 176.1 | |||||||||||
Net income per share – basic | $ | 1.07 | $ | 1.23 | $ | 2.58 | $ | 2.85 | |||||||
Net income per share – diluted | $ | 1.06 | $ | 1.23 | $ | 2.56 | $ | 2.83 | |||||||
Anti-dilutive common stock equivalents | 0.5 | 1.9 | 1.5 | 1.8 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||||||||||||||||||||||||||
Net income | $ | 129.7 | $ | 144.1 | $ | 567.9 | $ | 643.0 | |||||||||||||||||||||||||||
Weighted average shares outstanding – basic | 167.0 | 172.6 | 169.1 | 174.3 | |||||||||||||||||||||||||||||||
Dilutive effect of equity-based awards | 1.3 | 0.8 | 1.2 | 0.9 | |||||||||||||||||||||||||||||||
Weighted average shares outstanding – diluted | 168.3 | 173.4 | 170.3 | 175.2 | |||||||||||||||||||||||||||||||
Net income per share – basic | $ | 0.78 | $ | 0.83 | $ | 3.36 | $ | 3.69 | |||||||||||||||||||||||||||
Net income per share – diluted | $ | 0.77 | $ | 0.83 | $ | 3.33 | $ | 3.67 | |||||||||||||||||||||||||||
Anti-dilutive common stock equivalents | — | 1.0 | 0.2 | 1.5 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||||||||||||||||||||||||||
Net revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||
Cost of goods sold | 54.7 | 59.3 | 51.9 | 53.0 | |||||||||||||||||||||||||||||||
Gross profit | 45.3 | 40.7 | 48.1 | 47.0 | |||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Research and development | 15.9 | 13.1 | 14.1 | 12.4 | |||||||||||||||||||||||||||||||
Selling, general and administrative | 7.5 | 6.1 | 7.0 | 5.6 | |||||||||||||||||||||||||||||||
Amortization of intangibles | 0.4 | 0.7 | 0.4 | 0.7 | |||||||||||||||||||||||||||||||
Restructuring, impairment and other charges | 1.6 | — | 0.6 | 0.1 | |||||||||||||||||||||||||||||||
Total operating expenses | 25.4 | 19.9 | 22.1 | 18.8 | |||||||||||||||||||||||||||||||
Operating income | 19.9 | 20.8 | 26.0 | 28.2 | |||||||||||||||||||||||||||||||
Other income (expense), net | (0.5) | 0.3 | — | 0.2 | |||||||||||||||||||||||||||||||
Income before income taxes | 19.4 | 21.1 | 26.0 | 28.4 | |||||||||||||||||||||||||||||||
Provision for income taxes | 1.9 | 2.3 | 2.4 | 3.3 | |||||||||||||||||||||||||||||||
Net income | 17.5 | % | 18.8 | % | 23.6 | % | 25.1 | % |
Three Months Ended | Six Months Ended | ||||||||||
March 27, 2020 | March 29, 2019 | March 27, 2020 | March 29, 2019 | ||||||||
Net revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Cost of goods sold | 51.0 | 50.6 | 50.7 | 50.3 | |||||||
Gross profit | 49.0 | 49.4 | 49.3 | 49.7 | |||||||
Operating expenses: | |||||||||||
Research and development | 14.8 | 13.3 | 13.3 | 12.2 | |||||||
Selling, general and administrative | 7.7 | 5.9 | 6.9 | 5.4 | |||||||
Amortization of intangibles | 0.4 | 0.7 | 0.4 | 0.7 | |||||||
Restructuring and other charges | 0.2 | 0.2 | 0.1 | 0.1 | |||||||
Total operating expenses | 23.1 | 20.1 | 20.7 | 18.4 | |||||||
Operating income | 25.9 | 29.3 | 28.6 | 31.3 | |||||||
Other income, net | 0.5 | 0.5 | 0.2 | 0.3 | |||||||
Income before income taxes | 26.4 | 29.8 | 28.8 | 31.6 | |||||||
Provision for income taxes | 2.9 | 3.4 | 2.6 | 3.7 | |||||||
Net income | 23.5 | % | 26.4 | % | 26.2 | % | 27.9 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
March 27, 2020 | Change | March 29, 2019 | March 27, 2020 | Change | March 29, 2019 | ||||||||||
(dollars in millions) | |||||||||||||||
Net revenue | $ | 766.1 | (5.5)% | $ | 810.4 | $ | 1,662.2 | (6.7)% | $ | 1,782.4 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | Change | June 28, 2019 | June 26, 2020 | Change | June 28, 2019 | ||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||
Net revenue | $ | 736.8 | (3.9)% | $ | 767.0 | $ | 2,398.9 | (5.9)% | $ | 2,549.4 |
Three Months Ended | Six Months Ended | ||||||||||||||
March 27, 2020 | Change | March 29, 2019 | March 27, 2020 | Change | March 29, 2019 | ||||||||||
(dollars in millions) | |||||||||||||||
Gross profit | $ | 375.6 | (6.2)% | $ | 400.2 | $ | 819.9 | (7.4)% | $ | 885.4 | |||||
% of net revenue | 49.0 | % | 49.4 | % | 49.3 | % | 49.7 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | Change | June 28, 2019 | June 26, 2020 | Change | June 28, 2019 | ||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||
Gross profit | $ | 334.1 | 6.9% | $ | 312.5 | $ | 1,154.0 | (3.7)% | $ | 1,197.8 | |||||||||||||||||||||||||
% of net revenue | 45.3 | % | 40.7 | % | 48.1 | % | 47.0 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
March 27, 2020 | Change | March 29, 2019 | March 27, 2020 | Change | March 29, 2019 | ||||||||||
(dollars in millions) | |||||||||||||||
Research and development | $ | 113.2 | 5.3% | $ | 107.5 | $ | 220.8 | 1.9% | $ | 216.7 | |||||
% of net revenue | 14.8 | % | 13.3 | % | 13.3 | % | 12.2 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | Change | June 28, 2019 | June 26, 2020 | Change | June 28, 2019 | ||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||
Research and development | $ | 117.0 | 16.3% | $ | 100.6 | $ | 337.9 | 6.5% | $ | 317.3 | |||||||||||||||||||||||||
% of net revenue | 15.9 | % | 13.1 | % | 14.1 | % | 12.4 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
March 27, 2020 | Change | March 29, 2019 | March 27, 2020 | Change | March 29, 2019 | ||||||||||
(dollars in millions) | |||||||||||||||
Selling, general and administrative | $ | 58.6 | 22.4% | $ | 47.9 | $ | 114.0 | 19.2% | $ | 95.7 | |||||
% of net revenue | 7.7 | % | 5.9 | % | 6.9 | % | 5.4 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | Change | June 28, 2019 | June 26, 2020 | Change | June 28, 2019 | ||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | $ | 55.0 | 17.5% | $ | 46.8 | $ | 169.1 | 18.7% | $ | 142.5 | |||||||||||||||||||||||||
% of net revenue | 7.5 | % | 6.1 | % | 7.0 | % | 5.6 | % |
Three Months Ended | Six Months Ended | |||||||||||||
March 27, 2020 | Change | March 29, 2019 | March 27, 2020 | Change | March 29, 2019 | |||||||||
(dollars in millions) | ||||||||||||||
Amortization of intangibles, cost of goods sold | $ | 5.9 | (20.3)% | $ | 7.4 | $ | 11.9 | (23.2)% | $ | 15.5 | ||||
Amortization of intangibles, operating expense | 5.4 | (5.3)% | 5.7 | 10.8 | (17.6)% | 13.1 | ||||||||
Total amortization of intangibles, including inventory step-up | 11.3 | 13.1 | 22.7 | 28.6 | ||||||||||
% of net revenue | 3.0 | % | 3.5 | % | 1.4 | % | 1.6 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
June 26, 2020 | Change | June 28, 2019 | June 26, 2020 | Change | June 28, 2019 | |||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||
Total amortization of intangibles, including inventory step-up | 12.7 | (13.6)% | 14.7 | 35.4 | (18.2)% | 43.3 | ||||||||||||||||||||||||||
% of net revenue | 1.7 | % | 1.9 | % | 1.5 | % | 1.7 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
March 27, 2020 | Change | March 29, 2019 | March 27, 2020 | Change | March 29, 2019 | ||||||||||
(dollars in millions) | |||||||||||||||
Provision for income taxes | $ | 21.9 | (19.8)% | $ | 27.3 | $ | 43.6 | (34.3)% | $ | 66.3 | |||||
% of net revenue | 2.9 | % | 3.4 | % | 2.6 | % | 3.7 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
June 26, 2020 | Change | June 28, 2019 | June 26, 2020 | Change | June 28, 2019 | ||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||
Provision for income taxes | $ | 14.3 | (19.7)% | $ | 17.8 | $ | 57.7 | (31.3)% | $ | 84.0 | |||||||||||||||||||||||||
% of net revenue | 1.9 | % | 2.3 | % | 2.4 | % | 3.3 | % |
Six Months Ended | |||||||
(in millions) | March 27, 2020 | March 29, 2019 | |||||
Cash and cash equivalents at beginning of period | $ | 851.3 | $ | 733.3 | |||
Net cash provided by operating activities | 678.8 | 741.1 | |||||
Net cash used in investing activities | (136.5 | ) | (96.6 | ) | |||
Net cash used in financing activities | (481.2 | ) | (561.5 | ) | |||
Cash and cash equivalents at end of period | $ | 912.4 | $ | 816.3 |
Nine Months Ended | |||||||||||||||||
(in millions) | June 26, 2020 | June 28, 2019 | |||||||||||||||
Cash and cash equivalents at beginning of period | $ | 851.3 | $ | 733.3 | |||||||||||||
Net cash provided by operating activities | 937.5 | 950.4 | |||||||||||||||
Net cash used in investing activities | (391.0) | (235.1) | |||||||||||||||
Net cash used in financing activities | (606.5) | (705.8) | |||||||||||||||
Cash and cash equivalents at end of period | $ | 791.3 | $ | 742.8 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||
12/28/19-01/24/20 | 277,482 | (2) | $120.18 | 277,369 | $1.52 billion | |
01/25/20-02/21/20 | 7,346 | (3) | $116.58 | — | $1.52 billion | |
02/22/20-03/27/20 | 2,972,876 | (4) | $84.63 | 2,961,938 | $1.27 billion | |
Total | 3,257,704 | 3,239,307 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | |||||||||||||
03/28/20-04/24/20 | 660,493 | (2) | $87.26 | 645,931 | $1.21 billion | ||||||||||||
04/25/20-05/22/20 | 31,463 | (3) | $97.55 | 22,920 | $1.21 billion | ||||||||||||
05/23/20-06/26/20 | — | $— | — | $1.21 billion | |||||||||||||
Total | 691,956 | 668,851 |
Exhibit Number | Exhibit Description | Form | Incorporated by Reference | Filed Herewith | ||||||||||||||||||||||
File No. | Exhibit | Filing Date | ||||||||||||||||||||||||
10.1* | X | |||||||||||||||||||||||||
10.2* | X | |||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||
32.2 | X | |||||||||||||||||||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101) |
SKYWORKS SOLUTIONS, INC. | ||||||||||||
Date: | By: | /s/ Liam K. Griffin | ||||||||||
Liam K. Griffin | ||||||||||||
President and Chief Executive Officer | ||||||||||||
(Principal Executive Officer) | ||||||||||||
By: | /s/ Kris Sennesael | |||||||||||
Kris Sennesael | ||||||||||||
Senior Vice President and Chief Financial Officer | ||||||||||||
(Principal Accounting and Financial Officer) |