Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 02, 2016 | Apr. 19, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | SILICON LABORATORIES INC | |
Entity Central Index Key | 1,038,074 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 2, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,751,123 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 126,690 | $ 114,085 |
Short-term investments | 126,824 | 128,901 |
Accounts receivable, net of allowances for doubtful accounts of $657 at April 2, 2016 and $671 at January 2, 2016 | 74,591 | 73,601 |
Inventories | 48,923 | 53,895 |
Prepaid expenses and other current assets | 44,222 | 52,658 |
Total current assets | 421,250 | 423,140 |
Long-term investments | 6,845 | 7,126 |
Property and equipment, net | 130,099 | 131,132 |
Goodwill | 272,722 | 272,722 |
Other intangible assets, net | 113,800 | 121,354 |
Other assets, net | 53,566 | 55,989 |
Total assets | 998,282 | 1,011,463 |
Current liabilities: | ||
Accounts payable | 42,579 | 42,127 |
Current portion of long-term debt | 10,000 | 10,000 |
Accrued expenses | 58,391 | 52,131 |
Deferred income on shipments to distributors | 41,042 | 35,448 |
Income taxes | 3,084 | 2,615 |
Total current liabilities | 155,096 | 142,321 |
Long-term debt | 65,000 | 67,500 |
Other non-current liabilities | 28,739 | 40,528 |
Total liabilities | $ 248,835 | $ 250,349 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock-$0.0001 par value; 10,000 shares authorized; no shares issued and outstanding | ||
Common stock-$0.0001 par value; 250,000 shares authorized; 41,743 and 41,727 shares issued and outstanding at April 2, 2016 and January 2, 2016, respectively | $ 4 | $ 4 |
Additional paid-in capital | 13,868 | |
Retained earnings | 750,256 | 747,749 |
Accumulated other comprehensive loss | (813) | (507) |
Total stockholders' equity | 749,447 | 761,114 |
Total liabilities and stockholders' equity | $ 998,282 | $ 1,011,463 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Condensed Consolidated Balance Sheets | ||
Accounts receivable, allowances for doubtful accounts (in dollars) | $ 657 | $ 671 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 41,743 | 41,727 |
Common stock, shares outstanding | 41,743 | 41,727 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Condensed Consolidated Statements of Income | ||
Revenues | $ 162,025 | $ 163,705 |
Cost of revenues | 66,494 | 67,336 |
Gross margin | 95,531 | 96,369 |
Operating expenses: | ||
Research and development | 49,046 | 46,857 |
Selling, general and administrative | 39,637 | 42,300 |
Operating expenses | 88,683 | 89,157 |
Operating income | 6,848 | 7,212 |
Other income (expense): | ||
Interest income | 271 | 192 |
Interest expense | (655) | (745) |
Other income (expense), net | (391) | 408 |
Income before income taxes | 6,073 | 7,067 |
Provision for income taxes | 265 | 689 |
Net income | $ 5,808 | $ 6,378 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.14 | $ 0.15 |
Diluted (in dollars per share) | $ 0.14 | $ 0.15 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 41,629 | 42,412 |
Diluted (in shares) | 42,199 | 43,149 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Condensed Consolidated Statements of Comprehensive Income | ||
Net income | $ 5,808 | $ 6,378 |
Net changes to available-for-sale securities | ||
Unrealized losses arising during the period | (251) | (20) |
Reclassification for losses included in net income | 10 | |
Net changes to cash flow hedges | ||
Unrealized losses arising during the period | (286) | (626) |
Reclassification for losses included in net income | 66 | 130 |
Other comprehensive loss, before tax | (471) | (506) |
Benefit from income taxes | (165) | (177) |
Other comprehensive loss | (306) | (329) |
Comprehensive income | $ 5,502 | $ 6,049 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Operating Activities | ||
Net income | $ 5,808 | $ 6,378 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation of property and equipment | 3,310 | 2,987 |
Amortization of other intangible assets and other assets | 7,980 | 6,521 |
Stock-based compensation expense | 10,344 | 10,519 |
Income tax benefit (shortfall) from stock-based awards | (1,025) | 1,773 |
Excess income tax benefit from stock-based awards | (6) | (1,785) |
Deferred income taxes | (38) | 6,844 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (990) | 6,564 |
Inventories | 4,580 | (6,424) |
Prepaid expenses and other assets | 9,159 | 8,584 |
Accounts payable | 1,559 | 447 |
Accrued expenses | 6,260 | (5,046) |
Deferred income on shipments to distributors | 5,558 | (1,049) |
Income taxes | 494 | (8,409) |
Other non-current liabilities | (10,584) | (3,816) |
Net cash provided by operating activities | 42,409 | 24,088 |
Investing Activities | ||
Purchases of available-for-sale investments | (44,547) | (13,037) |
Proceeds from sales and maturities of available-for-sale investments | 46,654 | 57,739 |
Purchases of property and equipment | (2,303) | (1,991) |
Purchases of other assets | (1,107) | (935) |
Acquisition of business, net of cash acquired | (76,899) | |
Net cash used in investing activities | (1,303) | (35,123) |
Financing Activities | ||
Payment of taxes withheld for vested stock awards, net of proceeds from the issuance of common stock | (7,523) | (2,561) |
Excess income tax benefit from stock-based awards | 6 | 1,785 |
Repurchases of common stock | (18,484) | (10,138) |
Payment of acquisition-related contingent consideration | (4,464) | |
Payments on debt | (2,500) | (2,583) |
Net cash used in financing activities | (28,501) | (17,961) |
Increase (decrease) in cash and cash equivalents | 12,605 | (28,996) |
Cash and cash equivalents at beginning of period | 114,085 | 141,706 |
Cash and cash equivalents at end of period | $ 126,690 | $ 112,710 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Apr. 02, 2016 | |
Significant Accounting Policies | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation and Principles of Consolidation The Condensed Consolidated Financial Statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments which, in the opinion of management, are necessary to present fairly the condensed consolidated financial position of Silicon Laboratories Inc. and its subsidiaries (collectively, the “Company”) at April 2, 2016 and January 2, 2016, the condensed consolidated results of its operations for the three months ended April 2, 2016 and April 4, 2015, the Condensed Consolidated Statements of Comprehensive Income for the three months ended April 2, 2016 and April 4, 2015, and the Condensed Consolidated Statements of Cash Flows for the three months ended April 2, 2016 and April 4, 2015. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated results of operations for the three months ended April 2, 2016 are not necessarily indicative of the results to be expected for the full year. The accompanying unaudited Condensed Consolidated Financial Statements do not include certain footnotes and financial presentations normally required under U.S. generally accepted accounting principles (GAAP). Therefore, these Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended January 2, 2016, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (SEC) on February 5, 2016. The Company prepares financial statements on a Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Among the significant estimates affecting the financial statements are those related to inventories, stock-based compensation, investments in auction-rate securities, acquired intangible assets, goodwill, long-lived assets and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. Revenue Recognition Revenues are generated predominately by sales of the Company’s products. The Company recognizes revenue when all of the following criteria are met: 1) there is persuasive evidence that an arrangement exists, 2) delivery of goods has occurred, 3) the sales price is fixed or determinable, and 4) collectibility is reasonably assured. Generally, revenue from product sales to direct customers and contract manufacturers is recognized upon shipment. A portion of the Company’s sales are made to distributors under agreements allowing certain rights of return and price protection related to the final selling price to the end customers. Accordingly, the Company defers revenue and cost of revenue on such sales until the distributors sell the product to the end customers. The net balance of deferred revenue less deferred cost of revenue associated with inventory shipped to a distributor but not yet sold to an end customer is recorded in the deferred income on shipments to distributors liability on the Consolidated Balance Sheet. Such net deferred income balance reflects the Company’s estimate of the impact of rights of return and price protection. A small portion of the Company’s revenues is derived from the sale of patents. The above revenue recognition criteria for patent sales are generally met upon the execution of the patent sale agreement. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In February 2016, the FASB issued FASB ASU No. 2016-02, Leases (Topic 842) In January 2016, the FASB issued FASB ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In July 2015, the FASB issued FASB ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 02, 2016 | |
Earnings Per Share | |
Earnings Per Share | 2. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended April 2, April 4, Net income $ 5,808 $ 6,378 Shares used in computing basic earnings per share 41,629 42,412 Effect of dilutive securities: Stock options and other stock-based awards 570 737 Shares used in computing diluted earnings per share 42,199 43,149 Earnings per share: Basic $ 0.14 $ 0.15 Diluted $ 0.14 $ 0.15 For the three months ended April 2, 2016 and April 4, 2015, approximately 0.8 million and 0.1 million shares, respectively, were not included in the diluted earnings per share calculation since the shares were anti-dilutive. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 3 Months Ended |
Apr. 02, 2016 | |
Cash, Cash Equivalents and Investments | |
Cash, Cash Equivalents and Investments | 3. Cash, Cash Equivalents and Investments The Company’s cash equivalents and short-term investments as of April 2, 2016 consisted of municipal bonds, money market funds, variable-rate demand notes, corporate bonds, U.S. government bonds, asset-back securities, commercial paper, certificates of deposit and international government bonds. The Company’s long-term investments consisted of auction-rate securities. In fiscal 2008, auctions for many of the Company’s auction-rate securities failed because sell orders exceeded buy orders. As of April 2, 2016, the Company held $8.0 million par value auction-rate securities, all of which have experienced failed auctions. The underlying assets of the securities consisted of student loans and municipal bonds, of which $6.0 million were guaranteed by the U.S. government and the remaining $2.0 million were privately insured. As of April 2, 2016, $6.0 million of the auction-rate securities had credit ratings of AA and $2.0 million had a credit rating of A. These securities have contractual maturity dates ranging from 2033 to 2046 at April 2, 2016. The Company is receiving the underlying cash flows on all of its auction-rate securities. The principal amounts associated with failed auctions are not expected to be accessible until a successful auction occurs, the issuer redeems the securities, a buyer is found outside of the auction process or the underlying securities mature. The Company does not expect to need access to the capital represented by any of its auction-rate securities prior to their maturities. The Company does not intend to sell, and believes it is not more likely than not that it will be required to sell, its auction-rate securities before their anticipated recovery in market value or final settlement at the underlying par value. The Company believes that the credit ratings and credit support of the security issuers indicate that they have the ability to settle the securities at par value. As such, the Company has determined that no other-than-temporary impairment losses existed as of April 2, 2016. The Company’s cash, cash equivalents and investments consisted of the following (in thousands): April 2, 2016 Cost Gross Gross Fair Value Cash and cash equivalents: Cash on hand $ 76,197 $ — $ — $ 76,197 Available-for-sale securities: Money market funds 40,720 — — 40,720 Municipal bonds 5,724 — — 5,724 Certificates of deposit 2,849 — — 2,849 Commercial paper 1,200 — — 1,200 Total available-for-sale securities 50,493 — — 50,493 Total cash and cash equivalents $ 126,690 $ — $ — $ 126,690 Short-term investments: Available-for-sale securities: Municipal bonds $ 85,668 $ (14 ) $ 55 $ 85,709 Variable-rate demand notes 18,395 — — 18,395 Corporate bonds 8,021 (18 ) — 8,003 U.S. government bonds 6,004 — 5 6,009 Asset-backed securities 3,995 — 3 3,998 Commercial paper 2,489 — — 2,489 International government bonds 2,220 — 1 2,221 Total short-term investments $ 126,792 $ (32 ) $ 64 $ 126,824 Long-term investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (1,155 ) $ — $ 6,845 Total long-term investments $ 8,000 $ (1,155 ) $ — $ 6,845 January 2, 2016 Cost Gross Gross Fair Value Cash and cash equivalents: Cash on hand $ 59,071 $ — $ — $ 59,071 Available-for-sale securities: — Money market funds 37,721 — — 37,721 Commercial paper 11,272 — — 11,272 Certificates of deposit 2,845 — — 2,845 U.S. government agency 1,599 — — 1,599 Municipal bonds 1,576 — 1 1,577 Total available-for-sale securities 55,013 — 1 55,014 Total cash and cash equivalents $ 114,084 $ — $ 1 $ 114,085 Short-term investments: Available-for-sale securities: Municipal bonds $ 93,506 $ (32 ) $ 42 $ 93,516 Commercial paper 11,176 — — 11,176 Variable-rate demand notes 8,995 — — 8,995 Certificates of deposit 8,000 — — 8,000 U.S. government agency 3,997 — 1 3,998 International government bonds 2,227 (7 ) — 2,220 Corporate bonds 999 (3 ) — 996 Total short-term investments $ 128,900 $ (42 ) $ 43 $ 128,901 Long-term investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (874 ) $ — $ 7,126 Total long-term investments $ 8,000 $ (874 ) $ — $ 7,126 The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands): Less Than 12 Months 12 Months or Greater Total As of April 2, 2016 Fair Gross Fair Gross Fair Gross Municipal bonds $ 27,767 $ (11 ) $ 2,708 $ (3 ) $ 30,475 $ (14 ) Corporate bonds 8,003 (18 ) — — 8,003 (18 ) Auction rate securities — — 6,845 (1,155 ) 6,845 (1,155 ) $ 35,770 $ (29 ) $ 9,553 $ (1,158 ) $ 45,323 $ (1,187 ) Less Than 12 Months 12 Months or Greater Total As of January 2, 2016 Fair Gross Fair Gross Fair Gross Municipal bonds $ 29,271 $ (30 ) $ 1,198 $ (2 ) $ 30,469 $ (32 ) Auction rate securities — — 7,126 (874 ) 7,126 (874 ) International government bonds 2,220 (7 ) — — 2,220 (7 ) Corporate bonds 996 (3 ) — — 996 (3 ) $ 32,487 $ (40 ) $ 8,324 $ (876 ) $ 40,811 $ (916 ) The gross unrealized losses as of April 2, 2016 and January 2, 2016 were due primarily to the illiquidity of the Company’s auction-rate securities and, to a lesser extent, to changes in market interest rates. The following summarizes the contractual underlying maturities of the Company’s Cost Fair Due in one year or less $ 114,458 $ 114,470 Due after one year through ten years 41,002 41,022 Due after ten years 29,825 28,670 $ 185,285 $ 184,162 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Apr. 02, 2016 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 4. Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of interest rates and foreign currency exchange rates. The Company’s objective is to offset increases and decreases in expenses resulting from these exposures with gains and losses on the derivative contracts, thereby reducing volatility of earnings. Interest Rate Swaps The Company is exposed to interest rate fluctuations in the normal course of its business, including through its Credit Facilities. The interest payments on the facility are calculated using a variable-rate of interest. The Company has entered into an interest rate swap agreement with an original notional value of $100 million (equal to the full amount borrowed under the Credit Facilities) and, effectively, converted the Eurodollar portion of the variable-rate interest payments to fixed-rate interest payments through July 2017. The Company’s interest rate swap agreement is designated and qualifies as a cash flow hedge. The Company estimates the fair values of The Company measures the effectiveness of its cash flow hedge by comparing the change in fair value of the hedged variable interest payments with the change in fair value of the interest rate swap. The Company recognizes ineffective portions of the hedge, as well as amounts not included in the assessment of effectiveness, in the Consolidated Statement of Income. As of April 2, 2016, no portion of the gains or losses from the Company’s hedging instrument was excluded from the assessment of effectiveness. Hedge ineffectiveness was not material for any of the periods presented. The Company’s derivative financial instrument in cash flow hedging relationships consisted of the following (in thousands): Fair Value Balance Sheet Location April 2, January 2, Interest rate swap Other assets, net $ — $ 92 Other non-current liabilities 129 — The before-tax effect of derivative instruments in cash flow hedging relationships was as follows (in thousands): Loss Recognized in Location of Loss Loss Reclassified Three Months Ended Three Months Ended April 2, April 4, April 2, April 4, Interest rate swaps $ (286 ) $ (626 ) Interest expense $ (66 ) $ (130 ) The Company expects to reclassify $0.1 million of its interest rate swap losses included in accumulated other comprehensive loss as of April 2, 2016 into earnings in the next 12 months, which would be offset by lower interest payments. Foreign Currency Forward Contracts The Company uses foreign currency forward contracts to manage exposure to foreign exchange risk. These instruments are used to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company recognizes gains and losses on the foreign currency forward contracts in other income (expense), net in the Consolidated Statement of Income in the same period as the remeasurement loss and gain of the related foreign currency denominated asset or liability. The Company does not apply hedge accounting to its foreign currency derivative instruments. As of April 2, 2016 and April 4, 2015, the Company held one foreign currency forward contract denominated in Norwegian Krone with a notional value of $4.8 million and $6.8 million, respectively. The fair value of the contracts was not material as of April 2, 2016 or April 4, 2015. The contract held as of April 2, 2016 has The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands): Three Months Ended Gain (Loss) Recognized in Income April 2, April 4, Location Foreign currency forward contracts $ (300 ) $ 550 Other income (expense), net |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Apr. 02, 2016 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments The fair values of the Company’s financial instruments are recorded using a hierarchal disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The three levels are described below: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company’s own data. The following summarizes the valuation of the Company’s financial instruments (in thousands). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value. Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash equivalents: Money market funds $ 40,720 $ — $ — $ 40,720 Municipal bonds — 5,724 — 5,724 Certificates of deposit — 2,849 — 2,849 Commercial paper — 1,200 — 1,200 Total cash equivalents $ 40,720 $ 9,773 $ — $ 50,493 Short-term investments: Municipal bonds $ — $ 85,709 $ — $ 85,709 Variable-rate demand notes — 18,395 — 18,395 Corporate bonds — 8,003 — 8,003 U.S. government bonds 6,009 — — 6,009 Asset-backed securities — 3,998 — 3,998 Commercial paper — 2,489 — 2,489 International government bonds — 2,221 — 2,221 Total short-term investments $ 6,009 $ 120,815 $ — $ 126,824 Long-term investments: Auction rate securities $ — $ — $ 6,845 $ 6,845 Total long-term investments $ — $ — $ 6,845 $ 6,845 Total $ 46,729 $ 130,588 $ 6,845 $ 184,162 Liabilities: Other non-current liabilities: Derivative instruments $ — $ 129 $ — $ 129 Total $ — $ 129 $ — $ 129 Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash equivalents: Money market funds $ 37,721 $ — $ — $ 37,721 Commercial paper — 11,272 — 11,272 Certificates of deposit — 2,845 — 2,845 U.S. government agency — 1,599 — 1,599 Municipal bonds — 1,577 — 1,577 Total cash equivalents $ 37,721 $ 17,293 $ — $ 55,014 Short-term investments: Municipal bonds $ — $ 93,516 $ — $ 93,516 Commercial paper — 11,176 — 11,176 Variable-rate demand notes — 8,995 — 8,995 Certificates of deposit — 8,000 — 8,000 U.S. government agency — 3,998 — 3,998 International government bonds — 2,220 — 2,220 Corporate bonds — 996 — 996 Total short-term investments $ — $ 128,901 $ — $ 128,901 Long-term investments: Auction rate securities $ — $ — $ 7,126 $ 7,126 Total long-term investments $ — $ — $ 7,126 $ 7,126 Other assets, net: Derivative instruments $ — $ 92 $ — $ 92 Total $ — $ 92 $ — $ 92 Total $ 37,721 $ 146,286 $ 7,126 $ 191,133 Liabilities: Accrued expenses: Contingent consideration $ — $ — $ 4,749 $ 4,749 Other non-current liabilities: Contingent consideration $ — $ — $ 9,324 $ 9,324 Total $ — $ — $ 14,073 $ 14,073 The Company’s cash equivalents and short-term investments that are classified as Level 1 are valued using quoted prices and other relevant information generated by market transactions involving identical assets. Cash equivalents and short-term investments classified as Level 2 are valued using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments in active markets; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Investments classified as Level 3 are valued using a discounted cash flow model. The assumptions used in preparing the discounted cash flow model include estimates for interest rates, amount of cash flows, expected holding periods of the securities and a discount to reflect the Company’s inability to liquidate the securities. The Company’s derivative instruments are valued using discounted cash flow models. The assumptions used in preparing the valuation models include quoted interest swap rates, foreign exchange rates, forward and spot prices for currencies, and market observable data of similar instruments. The Company’s contingent consideration is valued using a Monte Carlo simulation model or a probability weighted discounted cash flow model. The assumptions used in preparing the Monte Carlo simulation model include estimates for revenue growth rates, revenue volatility, contractual terms and discount rates. The assumptions used in preparing the discounted cash flow model include estimates for outcomes if milestone goals are achieved, the probability of achieving each outcome and discount rates. The following summarizes quantitative information about Level 3 fair value measurements. Auction rate securities Fair Value at Valuation Technique Unobservable Input Weighted Average $ 6,845 Discounted cash flow Estimated yield 1.09% Expected holding period 10 years Estimated discount rate 3.27% The Company has followed an established internal control procedure used in valuing auction rate securities. The procedure involves the analysis of valuation techniques and evaluation of unobservable inputs commonly used by market participants to price similar instruments, and which have been demonstrated to provide reasonable estimates of prices obtained in actual market transactions. Outputs from the valuation process are assessed against various market sources when they are available, including marketplace quotes, recent trades of similar illiquid securities, benchmark indices and independent pricing services. The technique and unobservable input parameters may be recalibrated periodically to achieve an appropriate estimation of the fair value of the securities. Significant changes in any of the unobservable inputs used in the fair value measurement of auction rate securities in isolation could result in a significantly lower or higher fair value measurement. An increase in expected yield would result in a higher fair value measurement, whereas an increase in expected holding period or estimated discount rate would result in a lower fair value measurement. Generally, a change in the assumptions used for expected holding period is accompanied by a directionally similar change in the assumptions used for estimated yield and discount rate. Contingent consideration The Company has followed an established internal control procedure used in valuing contingent consideration. The valuation of contingent consideration for the Energy Micro acquisition was based on a Monte Carlo simulation model. The fair value of this valuation was estimated on a quarterly basis through a collaborative effort by the Company’s sales, marketing and finance departments. The following summarizes the activity in Level 3 financial instruments for the three months ended April 2, 2016 (in thousands): Assets Auction Rate Securities Three Months Beginning balance $ 7,126 Loss included in other comprehensive loss (281 ) Balance at April 2, 2016 $ 6,845 Liabilities Contingent Consideration (1) Three Months Beginning balance $ 14,073 Settlements (2) (11,375 ) Gain recognized in earnings (3) (2,698 ) Balance at April 2, 2016 $ — (1) (2) Acquisitions (3) Fair values of other financial instruments The Company’s debt under the Credit Facilities bears interest at the Eurodollar rate plus an applicable margin. The Credit Facilities are recorded at cost, but are measured at fair value for disclosure purposes. Fair value is estimated based on Level 2 inputs, using a discounted cash flow analysis of future principal payments and projected interest based on current market rates. As of April 2, 2016 and January 2, 2016, the fair value of the Company’s debt under the Credit Facilities was approximately $75.0 million and $77.5 million, respectively. The Company’s other financial instruments, including cash, accounts receivable and accounts payable, are recorded at amounts that approximate their fair values due to their short maturities. |
Balance Sheet Details
Balance Sheet Details | 3 Months Ended |
Apr. 02, 2016 | |
Balance Sheet Details | |
Balance Sheet Details | 6. Balance Sheet Details The following shows the details of selected Condensed Consolidated Balance Sheet items (in thousands): Inventories April 2, January 2, Work in progress $ 34,689 $ 36,774 Finished goods 14,234 17,121 $ 48,923 $ 53,895 |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 02, 2016 | |
Acquisitions | |
Acquisitions | 7. Energy Micro On July 1, 2013, the Company acquired Energy Micro. In the first quarter of 2015, the Company made the following payments in connection with the Energy Micro acquisition: (a) approximately $20.0 million was paid for the release of the holdback; and (b) approximately $6.3 million was paid for the first annual period of the earn-out. Approximately $1.8 million of the earn-out payment was recorded as compensation expense during fiscal 2014. The remaining approximately $4.5 million of the earn-out payment represented additional consideration. On March 11, 2016, the Company entered into an agreement with Energy AS, the former parent of Energy Micro. The agreement settled the amount of the earn-out to be paid for fiscal 2015 through 2018. The total settlement amount was approximately $16.0 million (in lieu of potential payments of up to $26.7 million) and will be paid on or before May 11, 2016. The settlement amount represented approximately $11.4 million of additional consideration and approximately $4.6 million of compensation expense (of which approximately $2.7 million was recorded in the three months ended April 2, 2016 and approximately $1.9 million was recorded in fiscal 2015). The compensation expense recorded in fiscal 2016 was offset in part by a gain of approximately $2.7 million |
Debt
Debt | 3 Months Ended |
Apr. 02, 2016 | |
Debt | |
Debt | 8. Debt On July 31, 2012, the Company and certain of its domestic subsidiaries (the “Guarantors”) entered into a $230 million five-year Credit Agreement (the “Credit Agreement”), which consisted of a $100 million Term Loan Facility and a $130 million Revolving Credit Facility (collectively, the “Credit Facilities”). On July 24, 2015, the Company and the Guarantors amended the Credit Agreement (the “Amended Credit Agreement”) in order to, among other things, increase the borrowing capacity under the Revolving Credit Facility to $300 million, eliminate the Term Loan Facility and extend the maturity date to five years from the closing date. On July 24, 2015, the Company borrowed $82.5 million under the Amended Credit Agreement and paid off the remaining balance of its Term Loan Facility. The Amended Credit Agreement includes a $25 million letter of credit sublimit and a $10 million swingline loan sublimit. The Company also has an option to increase the size of the borrowing capacity by up to an aggregate of $200 million in additional commitments, subject to certain conditions. The Revolving Credit Facility, other than swingline loans, will bear interest at the Eurodollar rate plus an applicable margin or, at the option of the Company, a base rate (defined as the highest of the Wells Fargo prime rate, the Federal Funds rate plus 0.50% and the Eurodollar Base Rate plus 1.00%) plus an applicable margin. Swingline loans accrue interest at the base rate plus the applicable margin for base rate loans. The applicable margins for the Eurodollar rate loans range from 1.25% to 2.00% and for base rate loans range from 0.25% to 1.00%, depending in each case, on the leverage ratio as defined in the Agreement. The Amended Credit Agreement contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default, including financial covenants that the Company must maintain a leverage ratio (funded debt/EBITDA) of no more than 3.00 to 1 and a minimum fixed charge coverage ratio (EBITDA/interest payments, income taxes and capital expenditures) of no less than 1.25 to 1. As of April 2, 2016, the Company was in compliance with all covenants of the Interest Rate Swap Agreement In connection with the $100 million borrowed under the Credit Facilities, the Company entered into an interest rate swap agreement as a hedge against the Eurodollar portion of such variable interest payments. Under the terms of the swap agreement, the Company effectively converted the Eurodollar portion of the interest on the Credit Facilities to a fixed interest rate of 0.764% through July 2017. As of April 2, 2016, the combined interest rate of the Credit Facilities (which includes an applicable margin) and the interest rate swap was 2.264%. See Note 4, Derivative Financial Instruments |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 02, 2016 | |
Stockholders' Equity | |
Stockholders' Equity | 9. Stockholders’ Equity Common Stock The Company issued 0.4 million shares of common stock during the three months ended April 2, 2016. Share Repurchase Programs The Board of Directors authorized the following share repurchase programs (in thousands): Program Program Program August 2015 December 2016 $ 100,000 October 2014 December 2015 $ 100,000 January 2014 January 2015 $ 100,000 These programs allow for repurchases to be made in the open market or in private transactions, including structured or accelerated transactions, subject to applicable legal requirements and market conditions. The Company repurchased 0.4 million shares of its common stock for $18.5 million during the three months ended Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, were as follows (in thousands): Unrealized Gain Net Unrealized Losses Total Balance at January 2, 2016 $ 60 $ (567 ) $ (507 ) Other comprehensive loss before reclassifications (186 ) (163 ) (349 ) Amount reclassified from accumulated other comprehensive loss 43 — 43 Net change for the period (143 ) (163 ) (306 ) Balance at April 2, 2016 $ (83 ) $ (730 ) $ (813 ) Reclassifications From Accumulated Other Comprehensive Loss Three Months Ended Reclassification (in thousands) April 2, April 4, Losses on cash flow hedges to: Interest expense $ (66 ) $ (130 ) Losses on available-for-sales securities to: Interest income — (10 ) (66 ) (140 ) Income tax benefit 23 49 Total reclassifications $ (43 ) $ (91 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 02, 2016 | |
Stock-Based Compensation | |
Stock-Based Compensation | 10. Stock-Based Compensation In fiscal 2009, the stockholders of the Company approved the 2009 Stock Incentive Plan (the “2009 Plan”) and the 2009 Employee Stock Purchase Plan (the “2009 Purchase Plan”). In fiscal 2014, the stockholders of the Company approved amendments to both the 2009 Plan and the 2009 Purchase Plan. The amendments authorized additional shares of common stock for issuance, to comply with changes in applicable law, improve the Company’s corporate governance and to implement other best practices. The amended plans are currently effective. Stock-based compensation costs are based on the fair values on the date of grant for stock options and on the date of enrollment for the employee stock purchase plans, estimated by using the Black-Scholes option-pricing model. The fair values of stock awards (such as restricted stock units (RSUs), performance stock units (PSUs) and restricted stock awards (RSAs)) equal their intrinsic value on the date of grant. The fair values of market stock units (MSUs) generally are estimated using a Monte Carlo simulation based on the date of grant. The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended April 2, April 4, Cost of revenues $ 266 $ 230 Research and development 4,910 4,795 Selling, general and administrative 5,168 5,494 10,344 10,519 Income tax benefit 2,236 1,304 $ 8,108 $ 9,215 The Company had approximately $77.3 million of total unrecognized compensation costs related to granted stock awards as of April 2, 2016 that are expected to be recognized over a weighted-average period of approximately 2.5 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 02, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies Patent Litigation On January 21, 2014, Cresta Technology Corporation (“Cresta Technology”), a Delaware corporation, filed a lawsuit against the Company, Samsung Electronics Co., Ltd., Samsung Electronics America, Inc., LG Electronics Inc. and LG Electronics U.S.A., Inc. in the United States District Court in the District of Delaware, alleging infringement of three United States Patents (the “Cresta Patents”). The Delaware District Court action has been stayed. On January 28, 2014, Cresta Technology also filed a complaint with the United States International Trade Commission (“ITC”) alleging infringement of the same patents. On September 29, 2015, the ITC issued its Final Determination, finding that all the patent claims asserted against the Company’s products were either invalid or not infringed and that Cresta Technology failed to establish the ITC’s domestic industry requirement. The ITC found no violation by the Company and terminated the investigation. On November 30, 2015, Cresta Technology filed an appeal of the ITC decision to the Federal Circuit. On March 8, 2016, pursuant to a stipulated dismissal, the Federal Circuit dismissed Cresta Technology’s appeal in its entirety. In a parallel process, the Company challenged the validity of the claims of the Cresta Patents asserted in the ITC investigation through a series of Inter-Partes Review (IPR) proceedings at the Patent Trial and Appeal Board (PTAB) of the United States Patent and Trademark Office (USPTO). On October 21, 2015, the USPTO issued final written decisions on a first set of reviewed claims finding all of the reviewed claims invalid. On December 18, 2015, Cresta Technology appealed those adverse decisions to the United States Court of Appeals for the Federal Circuit as to this first USPTO determination. The USPTO has instituted a second set of IPR proceedings against a second set of the remaining claims. On March 18, 2016, Cresta Technology filed for chapter 7 bankruptcy in the United States Bankruptcy Court for the Northern District of California. The second set of IPR proceedings are currently stayed due to Cresta Technology’s bankruptcy petition. On July 16, 2014, the Company filed a lawsuit against Cresta Technology in the United States District Court in the Northern District of California alleging infringement of six United States Patents. The Company is seeking a permanent injunction and an award of damages and attorney fees. As a result of the chapter 7 bankruptcy filing by Cresta Technology, these proceedings are currently stayed. As is customary in the semiconductor industry, the Company provides indemnification protection to its customers for intellectual property claims related to the Company’s products. The Company has not accrued any material liability on its Condensed Consolidated Balance Sheet related to such indemnification obligations in connection with the Cresta Technology litigation. The Company intends to continue to vigorously defend against Cresta Technology’s allegations and to continue to pursue its claims against Cresta and their patents. At this time, the Company cannot predict the outcome of these matters or the resulting financial impact to it, if any. Other The Company is involved in various other legal proceedings that have arisen in the normal course of business. While the ultimate results of these matters cannot be predicted with certainty, the Company does not expect them to have a material adverse effect on its Consolidated Financial Statements. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 02, 2016 | |
Related Party Transactions | |
Related Party Transactions | 12. Related Party Transactions On July 1, 2013, Geir Førre joined the Company as senior vice president. Mr. Førre was chief executive officer of Energy Micro, until it was acquired by the Company. Mr. Førre was the beneficial owner of approximately 30% of the Energy Micro equity and accordingly received approximately $35 million at closing. In the first quarter of 2015, Mr. Førre received approximately $6.1 million of the $20.0 million paid for the holdback related to potential indemnification claims and approximately $1.9 million of the $6.3 million paid for the fiscal 2014 earn-out. On March 11, 2016, the Company entered into an agreement which settled the amount of the earn-out to be paid for fiscal 2015 through 2018. Under this agreement, Mr. Førre will receive approximately $4.8 million of the $16.0 million that will be paid. Alf-Egil Bogen served on the Company’s board of directors from October 17, 2013 to April 21, 2016. Mr. Bogen was chief marketing officer of Energy Micro, until it was acquired by the Company. Mr. Bogen was the beneficial owner of approximately 2% of the Energy Micro equity and accordingly received approximately $0.9 million at closing. In the first quarter of 2015, Mr. Bogen received approximately $0.4 million of the $20.0 million paid for the holdback related to potential indemnification claims and approximately $0.1 million of the $6.3 million paid for the fiscal 2014 earn-out. Under the settlement agreement, Mr. Bogen will receive approximately $0.3 million of the $16.0 million that will be paid for fiscal 2015 through 2018 earn-out. Mr. Bogen had invested approximately $0.8 million in Energy Micro prior to the acquisition. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 02, 2016 | |
Income Taxes | |
Income Taxes | 13. Income Taxes Provision for income taxes includes both domestic and foreign income taxes at the applicable tax rates adjusted for non-deductible expenses, research and development tax credits and other permanent differences. At April 2, 2016, the Company had gross unrecognized tax benefits of $4.2 million, of which $3.2 million would affect the effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company believes it is reasonably possible that the gross unrecognized tax benefits will decrease by approximately $1.1 million in the next 12 months due to the lapse of the statute of limitations applicable to tax deductions and tax credits claimed on prior year tax returns. On December 1, 2015, the U.S. Tax Court issued its final decision with respect to Altera Corporation’s litigation with the Internal Revenue Service (“IRS”). The litigation relates to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. In its final decision, the Court accepted Altera’s position of excluding stock-based compensation from its cost-sharing arrangement and concluded that the related IRS Regulations were invalid. In February 2016, the IRS appealed the decision to the U.S Court of Appeals for the Ninth Circuit. Although the IRS has appealed the decision, based on the facts and circumstances of the Tax Court Case, the Company believes that it is more likely than not that the Tax Court decision will be upheld. Therefore, the Company continues to reflect the effects of the decision in its Condensed Consolidated Financial Statements. This change to cost-sharing is expected to increase the Company’s cumulative foreign earnings at the time of final resolution of the case. As such, the Company continues to accrue a deferred tax liability for the U.S. tax cost of potential repatriation of the associated foreign earnings because at this time, the Company cannot reasonably conclude that it will have the ability and intent to indefinitely reinvest these contingent earnings. The overall net impact on the Company’s Condensed Consolidated Financial Statements is not material. The Company will continue to monitor ongoing developments and potential impacts to its Condensed Consolidated Financial Statements. The tax years 2011 through 2015 remain open to examination by the major taxing jurisdictions to which the Company is subject. The Company is not currently under audit in any major taxing jurisdiction. |
Significant Accounting Polici20
Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 02, 2016 | |
Significant Accounting Policies | |
Revenue Recognition | Revenue Recognition Revenues are generated predominately by sales of the Company’s products. The Company recognizes revenue when all of the following criteria are met: 1) there is persuasive evidence that an arrangement exists, 2) delivery of goods has occurred, 3) the sales price is fixed or determinable, and 4) collectibility is reasonably assured. Generally, revenue from product sales to direct customers and contract manufacturers is recognized upon shipment. A portion of the Company’s sales are made to distributors under agreements allowing certain rights of return and price protection related to the final selling price to the end customers. Accordingly, the Company defers revenue and cost of revenue on such sales until the distributors sell the product to the end customers. The net balance of deferred revenue less deferred cost of revenue associated with inventory shipped to a distributor but not yet sold to an end customer is recorded in the deferred income on shipments to distributors liability on the Consolidated Balance Sheet. Such net deferred income balance reflects the Company’s estimate of the impact of rights of return and price protection. A small portion of the Company’s revenues is derived from the sale of patents. The above revenue recognition criteria for patent sales are generally met upon the execution of the patent sale agreement. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Earnings Per Share | |
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended April 2, April 4, Net income $ 5,808 $ 6,378 Shares used in computing basic earnings per share 41,629 42,412 Effect of dilutive securities: Stock options and other stock-based awards 570 737 Shares used in computing diluted earnings per share 42,199 43,149 Earnings per share: Basic $ 0.14 $ 0.15 Diluted $ 0.14 $ 0.15 |
Cash, Cash Equivalents and In22
Cash, Cash Equivalents and Investments (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Cash, Cash Equivalents and Investments | |
Schedule of cash, cash equivalents, and investments | The Company’s cash, cash equivalents and investments consisted of the following (in thousands): April 2, 2016 Cost Gross Gross Fair Value Cash and cash equivalents: Cash on hand $ 76,197 $ — $ — $ 76,197 Available-for-sale securities: Money market funds 40,720 — — 40,720 Municipal bonds 5,724 — — 5,724 Certificates of deposit 2,849 — — 2,849 Commercial paper 1,200 — — 1,200 Total available-for-sale securities 50,493 — — 50,493 Total cash and cash equivalents $ 126,690 $ — $ — $ 126,690 Short-term investments: Available-for-sale securities: Municipal bonds $ 85,668 $ (14 ) $ 55 $ 85,709 Variable-rate demand notes 18,395 — — 18,395 Corporate bonds 8,021 (18 ) — 8,003 U.S. government bonds 6,004 — 5 6,009 Asset-backed securities 3,995 — 3 3,998 Commercial paper 2,489 — — 2,489 International government bonds 2,220 — 1 2,221 Total short-term investments $ 126,792 $ (32 ) $ 64 $ 126,824 Long-term investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (1,155 ) $ — $ 6,845 Total long-term investments $ 8,000 $ (1,155 ) $ — $ 6,845 January 2, 2016 Cost Gross Gross Fair Value Cash and cash equivalents: Cash on hand $ 59,071 $ — $ — $ 59,071 Available-for-sale securities: — Money market funds 37,721 — — 37,721 Commercial paper 11,272 — — 11,272 Certificates of deposit 2,845 — — 2,845 U.S. government agency 1,599 — — 1,599 Municipal bonds 1,576 — 1 1,577 Total available-for-sale securities 55,013 — 1 55,014 Total cash and cash equivalents $ 114,084 $ — $ 1 $ 114,085 Short-term investments: Available-for-sale securities: Municipal bonds $ 93,506 $ (32 ) $ 42 $ 93,516 Commercial paper 11,176 — — 11,176 Variable-rate demand notes 8,995 — — 8,995 Certificates of deposit 8,000 — — 8,000 U.S. government agency 3,997 — 1 3,998 International government bonds 2,227 (7 ) — 2,220 Corporate bonds 999 (3 ) — 996 Total short-term investments $ 128,900 $ (42 ) $ 43 $ 128,901 Long-term investments: Available-for-sale securities: Auction rate securities $ 8,000 $ (874 ) $ — $ 7,126 Total long-term investments $ 8,000 $ (874 ) $ — $ 7,126 |
Schedule of available-for-sale investments in continuous unrealized loss position by length of time | The available-for-sale investments that were in a continuous unrealized loss position, aggregated by length of time that individual securities have been in a continuous loss position, were as follows (in thousands): Less Than 12 Months 12 Months or Greater Total As of April 2, 2016 Fair Gross Fair Gross Fair Gross Municipal bonds $ 27,767 $ (11 ) $ 2,708 $ (3 ) $ 30,475 $ (14 ) Corporate bonds 8,003 (18 ) — — 8,003 (18 ) Auction rate securities — — 6,845 (1,155 ) 6,845 (1,155 ) $ 35,770 $ (29 ) $ 9,553 $ (1,158 ) $ 45,323 $ (1,187 ) Less Than 12 Months 12 Months or Greater Total As of January 2, 2016 Fair Gross Fair Gross Fair Gross Municipal bonds $ 29,271 $ (30 ) $ 1,198 $ (2 ) $ 30,469 $ (32 ) Auction rate securities — — 7,126 (874 ) 7,126 (874 ) International government bonds 2,220 (7 ) — — 2,220 (7 ) Corporate bonds 996 (3 ) — — 996 (3 ) $ 32,487 $ (40 ) $ 8,324 $ (876 ) $ 40,811 $ (916 ) |
Summarization of contractual underlying maturities of available-for-sale investments | The following summarizes the contractual underlying maturities of the Company’s Cost Fair Due in one year or less $ 114,458 $ 114,470 Due after one year through ten years 41,002 41,022 Due after ten years 29,825 28,670 $ 185,285 $ 184,162 |
Derivative Financial Instrume23
Derivative Financial Instruments (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Derivative Financial Instruments | |
Schedule of derivative financial instrument | The Company’s derivative financial instrument in cash flow hedging relationships consisted of the following (in thousands): Fair Value Balance Sheet Location April 2, January 2, Interest rate swap Other assets, net $ — $ 92 Other non-current liabilities 129 — |
Schedule of before-tax effect of derivative instruments in cash flow hedging relationships | The before-tax effect of derivative instruments in cash flow hedging relationships was as follows (in thousands): Loss Recognized in Location of Loss Loss Reclassified Three Months Ended Three Months Ended April 2, April 4, April 2, April 4, Interest rate swaps $ (286 ) $ (626 ) Interest expense $ (66 ) $ (130 ) |
Schedule of before-tax effect of derivative instruments not designated as hedging instruments | The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands): Three Months Ended Gain (Loss) Recognized in Income April 2, April 4, Location Foreign currency forward contracts $ (300 ) $ 550 Other income (expense), net |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Fair Value of Financial Instruments | |
Financial assets and liabilities measured at fair value on a recurring basis | The following summarizes the valuation of the Company’s financial instruments (in thousands). The tables do not include either cash on hand or assets and liabilities that are measured at historical cost or any basis other than fair value. Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash equivalents: Money market funds $ 40,720 $ — $ — $ 40,720 Municipal bonds — 5,724 — 5,724 Certificates of deposit — 2,849 — 2,849 Commercial paper — 1,200 — 1,200 Total cash equivalents $ 40,720 $ 9,773 $ — $ 50,493 Short-term investments: Municipal bonds $ — $ 85,709 $ — $ 85,709 Variable-rate demand notes — 18,395 — 18,395 Corporate bonds — 8,003 — 8,003 U.S. government bonds 6,009 — — 6,009 Asset-backed securities — 3,998 — 3,998 Commercial paper — 2,489 — 2,489 International government bonds — 2,221 — 2,221 Total short-term investments $ 6,009 $ 120,815 $ — $ 126,824 Long-term investments: Auction rate securities $ — $ — $ 6,845 $ 6,845 Total long-term investments $ — $ — $ 6,845 $ 6,845 Total $ 46,729 $ 130,588 $ 6,845 $ 184,162 Liabilities: Other non-current liabilities: Derivative instruments $ — $ 129 $ — $ 129 Total $ — $ 129 $ — $ 129 Fair Value Measurements Description Quoted Prices in Significant Other Significant Total Assets: Cash equivalents: Money market funds $ 37,721 $ — $ — $ 37,721 Commercial paper — 11,272 — 11,272 Certificates of deposit — 2,845 — 2,845 U.S. government agency — 1,599 — 1,599 Municipal bonds — 1,577 — 1,577 Total cash equivalents $ 37,721 $ 17,293 $ — $ 55,014 Short-term investments: Municipal bonds $ — $ 93,516 $ — $ 93,516 Commercial paper — 11,176 — 11,176 Variable-rate demand notes — 8,995 — 8,995 Certificates of deposit — 8,000 — 8,000 U.S. government agency — 3,998 — 3,998 International government bonds — 2,220 — 2,220 Corporate bonds — 996 — 996 Total short-term investments $ — $ 128,901 $ — $ 128,901 Long-term investments: Auction rate securities $ — $ — $ 7,126 $ 7,126 Total long-term investments $ — $ — $ 7,126 $ 7,126 Other assets, net: Derivative instruments $ — $ 92 $ — $ 92 Total $ — $ 92 $ — $ 92 Total $ 37,721 $ 146,286 $ 7,126 $ 191,133 Liabilities: Accrued expenses: Contingent consideration $ — $ — $ 4,749 $ 4,749 Other non-current liabilities: Contingent consideration $ — $ — $ 9,324 $ 9,324 Total $ — $ — $ 14,073 $ 14,073 |
Summary of quantitative information about level 3 asset fair value measurements | The following summarizes quantitative information about Level 3 fair value measurements. Auction rate securities Fair Value at Valuation Technique Unobservable Input Weighted Average $ 6,845 Discounted cash flow Estimated yield 1.09% Expected holding period 10 years Estimated discount rate 3.27% |
Summary of activity in Level 3 financial instruments | The following summarizes the activity in Level 3 financial instruments for the three months ended April 2, 2016 (in thousands): Assets Auction Rate Securities Three Months Beginning balance $ 7,126 Loss included in other comprehensive loss (281 ) Balance at April 2, 2016 $ 6,845 Liabilities Contingent Consideration (1) Three Months Beginning balance $ 14,073 Settlements (2) (11,375 ) Gain recognized in earnings (3) (2,698 ) Balance at April 2, 2016 $ — (1) (2) Acquisitions (3) |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Balance Sheet Details | |
Inventories | The following shows the details of selected Condensed Consolidated Balance Sheet items (in thousands): Inventories April 2, January 2, Work in progress $ 34,689 $ 36,774 Finished goods 14,234 17,121 $ 48,923 $ 53,895 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Stockholders' Equity | |
Schedule of share repurchase programs | The Board of Directors authorized the following share repurchase programs (in thousands): Program Program Program August 2015 December 2016 $ 100,000 October 2014 December 2015 $ 100,000 January 2014 January 2015 $ 100,000 |
Schedule of components of accumulated other comprehensive loss, net of taxes | The components of accumulated other comprehensive loss, net of taxes, were as follows (in thousands): Unrealized Gain Net Unrealized Losses Total Balance at January 2, 2016 $ 60 $ (567 ) $ (507 ) Other comprehensive loss before reclassifications (186 ) (163 ) (349 ) Amount reclassified from accumulated other comprehensive loss 43 — 43 Net change for the period (143 ) (163 ) (306 ) Balance at April 2, 2016 $ (83 ) $ (730 ) $ (813 ) |
Schedule of Reclassifications From Accumulated Other Comprehensive Loss | Three Months Ended Reclassification (in thousands) April 2, April 4, Losses on cash flow hedges to: Interest expense $ (66 ) $ (130 ) Losses on available-for-sales securities to: Interest income — (10 ) (66 ) (140 ) Income tax benefit 23 49 Total reclassifications $ (43 ) $ (91 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Stock-Based Compensation | |
Schedule of stock-based compensation costs recognized in the Consolidated Statements of Income | The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended April 2, April 4, Cost of revenues $ 266 $ 230 Research and development 4,910 4,795 Selling, general and administrative 5,168 5,494 10,344 10,519 Income tax benefit 2,236 1,304 $ 8,108 $ 9,215 |
Significant Accounting Polici28
Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended |
Apr. 02, 2016 | Jan. 02, 2016 | |
Basis of Presentation and Principles of Consolidation | ||
Length of fiscal year | 364 days | 364 days |
Number of days in each fiscal quarter for 52-week fiscal year | 91 days | |
Low end of range | ||
Basis of Presentation and Principles of Consolidation | ||
Length of fiscal year | 364 days | |
High end of range | ||
Basis of Presentation and Principles of Consolidation | ||
Length of fiscal year | 371 days |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Earnings Per Share | ||
Net income | $ 5,808 | $ 6,378 |
Shares used in computing basic earnings per share | 41,629 | 42,412 |
Effect of dilutive securities: | ||
Stock options and other stock-based awards (in shares) | 570 | 737 |
Shares used in computing diluted earnings per share | 42,199 | 43,149 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.14 | $ 0.15 |
Diluted (in dollars per share) | $ 0.14 | $ 0.15 |
Shares excluded from computation of diluted earning per share | 800 | 100 |
Cash, Cash Equivalents and In30
Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Jan. 02, 2016 | |
Available-for-sale securities | ||
Available-for-sale securities, Cost | $ 185,285 | |
Cash, cash equivalents and investments | ||
Auction-rate securities guaranteed by the U.S. government | 6,000 | |
Auction-rate securities privately insured | 2,000 | |
Auction-rate securities having credit rating 'AA' | 6,000 | |
Auction-rate securities having credit rating 'A' | 2,000 | |
Other-than-temporary impairment losses | 0 | |
Cash on hand, Cost | 76,197 | $ 59,071 |
Cash on hand, Fair Value | 76,197 | 59,071 |
Cash and cash equivalents, Cost | 126,690 | 114,084 |
Cash and cash equivalents, Gross Unrealized Gains | 1 | |
Cash and cash equivalents, Fair Value | 126,690 | 114,085 |
Cash Equivalents: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 50,493 | 55,013 |
Available-for-sale securities, Gross Unrealized Gains | 1 | |
Available-for-sale securities, Fair Value | 50,493 | 55,014 |
Short-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 126,792 | 128,900 |
Available-for-sale securities, Gross Unrealized Losses | (32) | (42) |
Available-for-sale securities, Gross Unrealized Gains | 64 | 43 |
Available-for-sale securities, Fair Value | 126,824 | 128,901 |
Long-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 8,000 | 8,000 |
Available-for-sale securities, Gross Unrealized Losses | (1,155) | (874) |
Available-for-sale securities, Fair Value | 6,845 | 7,126 |
Money market funds | Cash Equivalents: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 40,720 | 37,721 |
Available-for-sale securities, Fair Value | 40,720 | 37,721 |
Municipal bonds | Cash Equivalents: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 5,724 | 1,576 |
Available-for-sale securities, Gross Unrealized Gains | 1 | |
Available-for-sale securities, Fair Value | 5,724 | 1,577 |
Municipal bonds | Short-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 85,668 | 93,506 |
Available-for-sale securities, Gross Unrealized Losses | (14) | (32) |
Available-for-sale securities, Gross Unrealized Gains | 55 | 42 |
Available-for-sale securities, Fair Value | 85,709 | 93,516 |
Commercial paper | Cash Equivalents: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 1,200 | 11,272 |
Available-for-sale securities, Fair Value | 1,200 | 11,272 |
Commercial paper | Short-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 2,489 | 11,176 |
Available-for-sale securities, Fair Value | 2,489 | 11,176 |
Variable-rate demand notes | Short-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 18,395 | 8,995 |
Available-for-sale securities, Fair Value | 18,395 | 8,995 |
Certificates of deposit | Cash Equivalents: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 2,849 | 2,845 |
Available-for-sale securities, Fair Value | 2,849 | 2,845 |
Certificates of deposit | Short-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 8,000 | |
Available-for-sale securities, Fair Value | 8,000 | |
US government agency | Cash Equivalents: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 1,599 | |
Available-for-sale securities, Fair Value | 1,599 | |
US government agency | Short-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 3,997 | |
Available-for-sale securities, Gross Unrealized Gains | 1 | |
Available-for-sale securities, Fair Value | 3,998 | |
International government bonds | Short-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 2,220 | 2,227 |
Available-for-sale securities, Gross Unrealized Losses | (7) | |
Available-for-sale securities, Gross Unrealized Gains | 1 | |
Available-for-sale securities, Fair Value | 2,221 | 2,220 |
Corporate bonds | Short-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 8,021 | 999 |
Available-for-sale securities, Gross Unrealized Losses | (18) | (3) |
Available-for-sale securities, Fair Value | 8,003 | 996 |
U.S. government bonds | Short-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 6,004 | |
Available-for-sale securities, Gross Unrealized Gains | 5 | |
Available-for-sale securities, Fair Value | 6,009 | |
Asset-backed securities | Short-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 3,995 | |
Available-for-sale securities, Gross Unrealized Gains | 3 | |
Available-for-sale securities, Fair Value | 3,998 | |
Auction rate securities | Long-term Investments: | ||
Available-for-sale securities | ||
Available-for-sale securities, Cost | 8,000 | 8,000 |
Available-for-sale securities, Gross Unrealized Losses | (1,155) | (874) |
Available-for-sale securities, Fair Value | $ 6,845 | $ 7,126 |
Cash, Cash Equivalents and In31
Cash, Cash Equivalents and Investments - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | $ 35,770 | $ 32,487 |
Fair value of available-for-sale securities, continuous loss position for twelve months or longer | 9,553 | 8,324 |
Total fair value of available-for-sale securities, continuous loss position | 45,323 | 40,811 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (29) | (40) |
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (1,158) | (876) |
Available-for-sale securities, total gross unrealized losses | (1,187) | (916) |
Cost | ||
Due in one year or less, Cost | 114,458 | |
Due after one year through ten years, Cost | 41,002 | |
Due after ten years, Cost | 29,825 | |
Total Cost | 185,285 | |
Fair Value | ||
Due in one year or less, Fair Value | 114,470 | |
Due after one year through ten years, Fair Value | 41,022 | |
Due after ten years, Fair Value | 28,670 | |
Total Fair Value | 184,162 | |
Municipal bonds | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | 27,767 | 29,271 |
Fair value of available-for-sale securities, continuous loss position for twelve months or longer | 2,708 | 1,198 |
Total fair value of available-for-sale securities, continuous loss position | 30,475 | 30,469 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (11) | (30) |
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (3) | (2) |
Available-for-sale securities, total gross unrealized losses | (14) | (32) |
Auction rate securities | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for twelve months or longer | 6,845 | 7,126 |
Total fair value of available-for-sale securities, continuous loss position | 6,845 | 7,126 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (1,155) | (874) |
Available-for-sale securities, total gross unrealized losses | (1,155) | (874) |
International government bonds | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | 2,220 | |
Total fair value of available-for-sale securities, continuous loss position | 2,220 | |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (7) | |
Available-for-sale securities, total gross unrealized losses | (7) | |
Corporate bonds | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | 8,003 | 996 |
Total fair value of available-for-sale securities, continuous loss position | 8,003 | 996 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (18) | (3) |
Available-for-sale securities, total gross unrealized losses | $ (18) | $ (3) |
Derivative Financial Instrume32
Derivative Financial Instruments (Details) $ in Millions | Apr. 02, 2016USD ($) |
Cash flow hedges | Interest rate swaps | |
Notional amount | |
Original notional value | $ 100 |
Derivative Financial Instrume33
Derivative Financial Instruments - Financial Instrument (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Jan. 02, 2016 | |
Derivative financial instrument | ||
Gains or losses from the hedging instrument which was excluded from the assessment of effectiveness | $ 0 | |
Other assets, net | ||
Derivative financial instrument | ||
Fair value of interest rate swap | $ 92 | |
Other non-current liabilities: | ||
Derivative financial instrument | ||
Fair value of interest rate swap | $ 129 |
Derivative Financial Instrume34
Derivative Financial Instruments - Before-tax Effect (Details) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016USD ($)contract | Apr. 04, 2015USD ($)contract | |
Derivative Instruments, Gain (Loss) | ||
Reclassification of interest rate swap losses included in accumulated other comprehensive loss into earnings in the next 12 months | $ 100 | |
Not Designated as Hedging Instrument | Foreign currency forward contracts | ||
Derivative Instruments, Gain (Loss) | ||
Number of foreign currency forward contract held | contract | 1 | 1 |
Original notional value | $ 4,800 | $ 6,800 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Other income (expense), net | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Recognized in Income | (300) | 550 |
Cash flow hedges | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) during period | (286) | (626) |
Original notional value | 100,000 | |
Cash flow hedges | Interest rate swaps | Interest expense | ||
Derivative Instruments, Gain (Loss) | ||
Loss Reclassified from Accumulated OCI into Income (Effective Portion), included in rent and interest expense during period | $ (66) | $ (130) |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | $ 126,690 | $ 114,085 |
Total short-term investments | 126,824 | 128,901 |
Total long-term investments | 6,845 | 7,126 |
Assets and liabilities measured at fair value on recurring basis | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 50,493 | 55,014 |
Total short-term investments | 126,824 | 128,901 |
Total long-term investments | 6,845 | 7,126 |
Derivative instruments | 92 | |
Other assets, net | 92 | |
Total assets at fair value | 184,162 | 191,133 |
Total liabilities at fair value | 129 | 14,073 |
Assets and liabilities measured at fair value on recurring basis | Accrued expenses: | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Contingent consideration, current | 4,749 | |
Assets and liabilities measured at fair value on recurring basis | Other non-current liabilities: | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Contingent consideration, noncurrent | 9,324 | |
Derivative instruments | 129 | |
Assets and liabilities measured at fair value on recurring basis | Money market funds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 40,720 | 37,721 |
Assets and liabilities measured at fair value on recurring basis | Certificates of deposit | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 2,849 | 2,845 |
Total short-term investments | 8,000 | |
Assets and liabilities measured at fair value on recurring basis | Commercial paper | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 1,200 | 11,272 |
Total short-term investments | 2,489 | 11,176 |
Assets and liabilities measured at fair value on recurring basis | Municipal bonds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 5,724 | 1,577 |
Total short-term investments | 85,709 | 93,516 |
Assets and liabilities measured at fair value on recurring basis | Variable-rate demand notes | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total short-term investments | 18,395 | 8,995 |
Assets and liabilities measured at fair value on recurring basis | Asset-backed securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total short-term investments | 3,998 | |
Assets and liabilities measured at fair value on recurring basis | International government bonds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total short-term investments | 2,221 | 2,220 |
Assets and liabilities measured at fair value on recurring basis | US government agency | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 1,599 | |
Total short-term investments | 3,998 | |
Assets and liabilities measured at fair value on recurring basis | Corporate bonds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total short-term investments | 8,003 | 996 |
Assets and liabilities measured at fair value on recurring basis | U.S. government bonds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total short-term investments | 6,009 | |
Assets and liabilities measured at fair value on recurring basis | Auction rate securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total long-term investments | 6,845 | 7,126 |
Assets and liabilities measured at fair value on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 40,720 | 37,721 |
Total short-term investments | 6,009 | |
Total assets at fair value | 46,729 | 37,721 |
Assets and liabilities measured at fair value on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 40,720 | 37,721 |
Assets and liabilities measured at fair value on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government bonds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total short-term investments | 6,009 | |
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 9,773 | 17,293 |
Total short-term investments | 120,815 | 128,901 |
Derivative instruments | 92 | |
Other assets, net | 92 | |
Total assets at fair value | 130,588 | 146,286 |
Total liabilities at fair value | 129 | |
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Other non-current liabilities: | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Derivative instruments | 129 | |
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 2,849 | 2,845 |
Total short-term investments | 8,000 | |
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 1,200 | 11,272 |
Total short-term investments | 2,489 | 11,176 |
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Municipal bonds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 5,724 | 1,577 |
Total short-term investments | 85,709 | 93,516 |
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Variable-rate demand notes | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total short-term investments | 18,395 | 8,995 |
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total short-term investments | 3,998 | |
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | International government bonds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total short-term investments | 2,221 | 2,220 |
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | US government agency | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total cash equivalents | 1,599 | |
Total short-term investments | 3,998 | |
Assets and liabilities measured at fair value on recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total short-term investments | 8,003 | 996 |
Assets and liabilities measured at fair value on recurring basis | Significant Unobservable Inputs (Level 3) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total long-term investments | 6,845 | 7,126 |
Total assets at fair value | 6,845 | 7,126 |
Total liabilities at fair value | 14,073 | |
Assets and liabilities measured at fair value on recurring basis | Significant Unobservable Inputs (Level 3) | Accrued expenses: | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Contingent consideration, current | 4,749 | |
Assets and liabilities measured at fair value on recurring basis | Significant Unobservable Inputs (Level 3) | Other non-current liabilities: | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Contingent consideration, noncurrent | 9,324 | |
Assets and liabilities measured at fair value on recurring basis | Significant Unobservable Inputs (Level 3) | Auction rate securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Total long-term investments | $ 6,845 | $ 7,126 |
Fair Value of Financial Instr36
Fair Value of Financial Instruments - Auction Rate Securities (Details) - Auction rate securities - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Jan. 02, 2016 | |
Weighted Average | Discounted cash flow | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Estimated yield (as a percent) | 1.09% | |
Expected holding period | 10 years | |
Estimated discount rate (as a percent) | 3.27% | |
Assets and liabilities measured at fair value on recurring basis | ||
Quantitative information for Level 3 Fair Value Measurements Assets | ||
Fair value balance at the end of the period | $ 6,845 | $ 7,126 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments - Assets in Level 3 (Details) - Assets and liabilities measured at fair value on recurring basis - Significant Unobservable Inputs (Level 3) - Auction rate securities $ in Thousands | 3 Months Ended |
Apr. 02, 2016USD ($) | |
Fair value assets reconciliation of changes | |
Balance at the beginning of the period | $ 7,126 |
Loss included in other comprehensive loss | (281) |
Balance at the end of the period | $ 6,845 |
Fair Value of Financial Instr38
Fair Value of Financial Instruments - Liabilities in Level 3 (Details) - USD ($) $ in Thousands | Mar. 11, 2016 | Apr. 02, 2016 | Jan. 02, 2016 |
Credit Facilities | |||
Fair value liabilities reconciliation of changes | |||
Fair value of debt | $ 75,000 | $ 77,500 | |
Energy Micro | |||
Fair value liabilities reconciliation of changes | |||
Gain recognized in earnings | (2,700) | ||
Compensation expense | $ 4,600 | 2,700 | 1,900 |
Assets and liabilities measured at fair value on recurring basis | Significant Unobservable Inputs (Level 3) | Contingent consideration | |||
Fair value liabilities reconciliation of changes | |||
Balance at the beginning of the period | 14,073 | ||
Settlements | (11,375) | ||
Gain recognized in earnings | $ (2,698) | ||
Balance at the end of the period | $ 14,073 |
Balance Sheet Details (Details)
Balance Sheet Details (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Inventories | ||
Work in progress | $ 34,689 | $ 36,774 |
Finished goods | 14,234 | 17,121 |
Total inventories | $ 48,923 | $ 53,895 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Mar. 11, 2016 | Apr. 02, 2016 | Apr. 04, 2015 | Jan. 02, 2016 |
Acquisition | ||||
Payment of earn-out for the first annual period | $ 4,464 | |||
Energy Micro | ||||
Acquisition | ||||
Cash consideration | 20,000 | |||
Payment of earn-out for the first annual period | 6,300 | |||
Earn-out payment representing the Departure Percentage portion and recorded as compensation expense | 1,800 | |||
Remaining Earn-out payment representing additional consideration | $ 4,500 | |||
Earn-Out, fair value | $ 16,000 | |||
Potential maximum contingent consideration that could be paid | 26,700 | |||
Additional consideration | 11,400 | |||
Compensation expense | $ 4,600 | $ 2,700 | $ 1,900 | |
Gain from the adjustment to fair value due to settlement | $ 2,700 |
Debt (Details)
Debt (Details) $ in Millions | Jul. 24, 2015USD ($) | Jul. 31, 2012USD ($) | Apr. 02, 2016 |
Credit Facilities | |||
Debt | |||
Maximum borrowing capacity | $ 100 | ||
Fixed interest rate percentage | 0.764% | ||
Combined interest rate percentage | 2.264% | ||
Credit Agreement | |||
Debt | |||
Maximum borrowing capacity | $ 230 | ||
Term of debt instrument | 5 years | ||
Amount borrowed under the Amended Credit Agreement | $ 82.5 | ||
Maximum leverage ratio | 3 | ||
Minimum fixed charge coverage ratio | 1.25 | ||
Revolving Credit Facility | |||
Debt | |||
Maximum borrowing capacity | $ 300 | $ 130 | |
Term of debt instrument | 5 years | ||
Sublimit on letters of credit | 25 | ||
Sublimit on swingline loan | $ 10 | ||
Additional increase in borrowing capacity of the line of credit available at the entity's option | $ 200 | ||
Revolving credit facility, other than swingline loans | Federal Funds | |||
Debt | |||
Interest rate added to the base rate (as a percent) | 0.50% | ||
Revolving credit facility, other than swingline loans | Eurodollar base rate | |||
Debt | |||
Interest rate added to the base rate (as a percent) | 1.00% | ||
Revolving credit facility, other than swingline loans | Eurodollar | Low end of range | |||
Debt | |||
Interest rate added to the base rate (as a percent) | 1.25% | ||
Revolving credit facility, other than swingline loans | Eurodollar | High end of range | |||
Debt | |||
Interest rate added to the base rate (as a percent) | 2.00% | ||
Revolving credit facility, swingline and other loans | Base rate | Low end of range | |||
Debt | |||
Interest rate added to the base rate (as a percent) | 0.25% | ||
Revolving credit facility, swingline and other loans | Base rate | High end of range | |||
Debt | |||
Interest rate added to the base rate (as a percent) | 1.00% |
Stockholders' Equity - Componen
Stockholders' Equity - Components of AOCI (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | ||||
Apr. 02, 2016 | Apr. 04, 2015 | Aug. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2014 | |
Number of shares of common stock issued | 0.4 | ||||
Program Amount authorized to repurchase | $ 100,000 | $ 100,000 | $ 100,000 | ||
Repurchase of common stock (in shares) | 0.4 | 0.2 | |||
Repurchase of common stock | $ 18,500 | $ 10,100 | |||
Components of accumulated other comprehensive loss, net of taxes | |||||
Balance | 761,114 | ||||
Other comprehensive loss | (306) | $ (329) | |||
Balance | 749,447 | ||||
Unrealized Gain on Cash Flow Hedge | |||||
Components of accumulated other comprehensive loss, net of taxes | |||||
Balance | 60 | ||||
Other comprehensive loss before reclassifications | (186) | ||||
Amounts reclassified from accumulated other comprehensive loss | 43 | ||||
Other comprehensive loss | (143) | ||||
Balance | (83) | ||||
Net Unrealized Losses on Available-For-Sale Securities | |||||
Components of accumulated other comprehensive loss, net of taxes | |||||
Balance | (567) | ||||
Other comprehensive loss before reclassifications | (163) | ||||
Other comprehensive loss | (163) | ||||
Balance | (730) | ||||
Accumulated Other Comprehensive Loss | |||||
Components of accumulated other comprehensive loss, net of taxes | |||||
Balance | (507) | ||||
Other comprehensive loss before reclassifications | (349) | ||||
Amounts reclassified from accumulated other comprehensive loss | 43 | ||||
Other comprehensive loss | (306) | ||||
Balance | $ (813) |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassified from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Amounts Reclassified from AOCI | ||
Interest expense | $ (655) | $ (745) |
Income before income taxes | 6,073 | 7,067 |
Income tax benefit | (265) | (689) |
Net income | 5,808 | 6,378 |
Reclassifications From Accumulated Other Comprehensive Loss | ||
Amounts Reclassified from AOCI | ||
Income before income taxes | (66) | (140) |
Income tax benefit | 23 | 49 |
Net income | (43) | (91) |
Unrealized Gain on Cash Flow Hedge | Reclassifications From Accumulated Other Comprehensive Loss | ||
Amounts Reclassified from AOCI | ||
Interest expense | $ (66) | (130) |
Net Unrealized Losses on Available-For-Sale Securities | Reclassifications From Accumulated Other Comprehensive Loss | ||
Amounts Reclassified from AOCI | ||
Interest income | $ (10) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Stock-based compensation costs | ||
Share based compensation cost before tax | $ 10,344 | $ 10,519 |
Income tax benefit | 2,236 | 1,304 |
Share based compensation cost after tax | 8,108 | 9,215 |
Total unrecognized compensation costs related to awards | $ 77,300 | |
Weighted-average period of recognition of unrecognized compensation costs | 2 years 6 months | |
Cost of revenues | ||
Stock-based compensation costs | ||
Share based compensation cost before tax | $ 266 | 230 |
Research and development | ||
Stock-based compensation costs | ||
Share based compensation cost before tax | 4,910 | 4,795 |
Selling, general and administrative | ||
Stock-based compensation costs | ||
Share based compensation cost before tax | $ 5,168 | $ 5,494 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Oct. 17, 2013 | Jul. 01, 2013 | Apr. 04, 2015 | Mar. 11, 2016 |
Related Party Transaction | ||||
Payment of the fiscal 2014 earn-out | $ 4,464 | |||
Energy Micro | ||||
Related Party Transaction | ||||
Cash consideration | 20,000 | |||
Payment of the fiscal 2014 earn-out | 6,300 | |||
Contingent consideration | $ 26,700 | |||
Total settlement amount | 16,000 | |||
Mr. Forre | Energy Micro | ||||
Related Party Transaction | ||||
Beneficial ownership percentage | 30.00% | |||
Cash consideration | $ 35,000 | 6,100 | ||
Payment of the fiscal 2014 earn-out | 1,900 | |||
Contingent consideration | 4,800 | |||
Mr. Bogen | Energy Micro | ||||
Related Party Transaction | ||||
Beneficial ownership percentage | 2.00% | |||
Cash consideration | $ 900 | 400 | ||
Payment of the fiscal 2014 earn-out | $ 100 | |||
Contingent consideration | $ 300 | |||
Investment in acquired entity by related party prior to the acquisition | $ 800 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Deferred: | ||
Income tax expense | $ 265 | $ 689 |
Effective income tax rate reconciliation | ||
Effective income tax rate (as a percent) | 4.40% | 9.70% |
Components of deferred taxes | ||
Gross unrecognized tax benefits | $ 4,200 | |
Gross unrecognized tax benefits which would affect the effective tax rate if recognized | 3,200 | |
Amount of estimated decrease in unrecognized tax benefits | $ 1,100 |