Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 01, 2022 | Oct. 17, 2022 | |
Document and Entity Information | ||
Entity Registrant Name | SILICON LABORATORIES INC. | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 01, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-29823 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-2793174 | |
Entity Address, Address Line One | 400 West Cesar Chavez | |
Entity Address, City or Town | Austin | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78701 | |
City Area Code | 512 | |
Local Phone Number | 416-8500 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | SLAB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,282,898 | |
Entity Central Index Key | 0001038074 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 483,277 | $ 1,074,623 |
Short-term investments | 893,131 | 964,582 |
Accounts receivable, net | 76,672 | 98,313 |
Inventories | 88,447 | 49,307 |
Prepaid expenses and other current assets | 84,109 | 51,748 |
Total current assets | 1,625,636 | 2,238,573 |
Property and equipment, net | 151,610 | 146,516 |
Goodwill | 376,389 | 376,389 |
Other intangible assets, net | 91,650 | 118,978 |
Other assets, net | 91,012 | 77,839 |
Total assets | 2,336,297 | 2,958,295 |
Current liabilities: | ||
Accounts payable | 81,676 | 47,327 |
Current portion of convertible debt, net | 450,599 | |
Deferred revenue and returns liability | 11,705 | 13,849 |
Other current liabilities | 112,320 | 157,052 |
Total current liabilities | 205,701 | 668,827 |
Convertible debt, net | 529,062 | |
Other non-current liabilities | 49,890 | 77,044 |
Total liabilities | 784,653 | 745,871 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock - $0.0001 par value; 10,000 shares authorized; no shares issued | ||
Common stock - $0.0001 par value; 250,000 shares authorized; 33,530 and 38,481 shares issued and outstanding at October 1, 2022 and January 1, 2022, respectively | 3 | 4 |
Retained earnings | 1,568,108 | 2,214,839 |
Accumulated other comprehensive loss | (16,467) | (2,419) |
Total stockholders' equity | 1,551,644 | 2,212,424 |
Total liabilities and stockholders' equity | $ 2,336,297 | $ 2,958,295 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Condensed Consolidated Balance Sheets | ||
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 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 33,530 | 38,481 |
Common stock, shares outstanding | 33,530 | 38,481 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Condensed Consolidated Statements of Income | ||||
Revenues | $ 269,817 | $ 184,831 | $ 766,781 | $ 512,180 |
Cost of revenues | 104,232 | 75,322 | 281,521 | 214,619 |
Gross profit | 165,585 | 109,509 | 485,260 | 297,561 |
Operating expenses: | ||||
Research and development | 84,624 | 72,656 | 245,677 | 201,503 |
Selling, general and administrative | 50,738 | 46,128 | 144,398 | 131,535 |
Operating expenses | 135,362 | 118,784 | 390,075 | 333,038 |
Operating income (loss) | 30,223 | (9,275) | 95,185 | (35,477) |
Other income (expense): | ||||
Interest income and other, net | 4,672 | 1,476 | 9,616 | 3,100 |
Interest expense | (1,527) | (6,595) | (4,874) | (24,405) |
Income (loss) from continuing operations before income taxes | 33,368 | (14,394) | 99,927 | (56,782) |
Provision for income taxes | 14,188 | 9,386 | 36,871 | 12,543 |
Equity-method earnings | 1,819 | 4,040 | 2,985 | 5,938 |
Income (loss) from continuing operations | 20,999 | (19,740) | 66,041 | (63,387) |
Income from discontinued operations, net of income taxes | 2,106,796 | 2,183,884 | ||
Net income | $ 20,999 | $ 2,087,056 | $ 66,041 | $ 2,120,497 |
Basic earnings (loss) per share: | ||||
Continuing operations | $ 0.62 | $ (0.45) | $ 1.84 | $ (1.44) |
Net income | 0.62 | 48.11 | 1.84 | 48.08 |
Diluted earnings (loss) per share: | ||||
Continuing operations | 0.60 | (0.45) | 1.79 | (1.44) |
Net income | $ 0.60 | $ 46.76 | $ 1.79 | $ 46.71 |
Weighted-average common shares outstanding: | ||||
Basic | 34,079 | 43,385 | 35,935 | 44,103 |
Diluted | 34,779 | 44,634 | 36,968 | 45,394 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income | $ 20,999 | $ 2,087,056 | $ 66,041 | $ 2,120,497 |
Net changes to available-for-sale securities | ||||
Unrealized losses arising during the period | (3,359) | (492) | (16,064) | (1,892) |
Reclassification for (gains) losses included in net income | 56 | 25 | 479 | (372) |
Net changes to cash flow hedges | ||||
Unrealized losses arising during the period | (1,574) | (246) | (5,119) | (516) |
Reclassification for (gains) losses included in net income | 1,821 | 30 | 2,913 | (290) |
Other comprehensive loss, before tax | (3,056) | (683) | (17,791) | (3,070) |
Provision (benefit) for income taxes | (644) | (143) | (3,743) | (645) |
Other comprehensive loss | (2,412) | (540) | (14,048) | (2,425) |
Comprehensive income | $ 18,587 | $ 2,086,516 | $ 51,993 | $ 2,118,072 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings Cumulative effect of adoption of accounting standard | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative effect of adoption of accounting standard | Total |
Balance at Jan. 02, 2021 | $ 4 | $ 204,359 | $ 993,664 | $ 1,814 | $ 1,199,841 | ||
Balance (in shares) at Jan. 02, 2021 | 43,925 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 2,120,497 | 2,120,497 | |||||
Other comprehensive loss | (2,425) | (2,425) | |||||
Stock issuances, net of shares withheld for taxes | (12,774) | (12,774) | |||||
Stock issuances, net of shares withheld for taxes (in shares) | 484 | ||||||
Repurchases of common stock | (229,187) | (465,971) | (695,158) | ||||
Repurchases of common stock (in shares) | (4,390) | ||||||
Stock-based compensation | 38,350 | 38,350 | |||||
Convertible debt activity | (748) | (748) | |||||
Convertible debt activity (in shares) | 528 | ||||||
Balance at Oct. 02, 2021 | $ 4 | 0 | 2,648,190 | (611) | 2,647,583 | ||
Balance (in shares) at Oct. 02, 2021 | 40,547 | ||||||
Balance at Jul. 03, 2021 | $ 4 | 200,716 | 1,027,105 | (71) | 1,227,754 | ||
Balance (in shares) at Jul. 03, 2021 | 44,764 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 2,087,056 | 2,087,056 | |||||
Other comprehensive loss | (540) | (540) | |||||
Stock issuances, net of shares withheld for taxes | (1,430) | (1,430) | |||||
Stock issuances, net of shares withheld for taxes (in shares) | 30 | ||||||
Repurchases of common stock | (210,204) | (465,971) | (676,175) | ||||
Repurchases of common stock (in shares) | (4,247) | ||||||
Stock-based compensation | 10,918 | 10,918 | |||||
Balance at Oct. 02, 2021 | $ 4 | 0 | 2,648,190 | (611) | 2,647,583 | ||
Balance (in shares) at Oct. 02, 2021 | 40,547 | ||||||
Balance at Jan. 01, 2022 | $ 4 | 0 | $ (59,963) | 2,214,839 | (2,419) | $ (59,963) | $ 2,212,424 |
Balance (in shares) at Jan. 01, 2022 | 38,481 | 38,481 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 66,041 | $ 66,041 | |||||
Other comprehensive loss | (14,048) | (14,048) | |||||
Stock issuances, net of shares withheld for taxes | (8,367) | (8,367) | |||||
Stock issuances, net of shares withheld for taxes (in shares) | 316 | ||||||
Repurchases of common stock | $ (1) | (34,885) | (652,809) | 0 | (687,695) | ||
Repurchases of common stock (in shares) | (5,267) | ||||||
Stock-based compensation | 43,252 | 43,252 | |||||
Balance at Oct. 01, 2022 | $ 3 | 0 | 1,568,108 | (16,467) | $ 1,551,644 | ||
Balance (in shares) at Oct. 01, 2022 | 33,530 | 33,530 | |||||
Balance at Jul. 02, 2022 | $ 3 | 0 | 1,619,396 | (14,055) | $ 1,605,344 | ||
Balance (in shares) at Jul. 02, 2022 | 34,223 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 20,999 | 20,999 | |||||
Other comprehensive loss | (2,412) | (2,412) | |||||
Stock issuances, net of shares withheld for taxes | (773) | (773) | |||||
Stock issuances, net of shares withheld for taxes (in shares) | 15 | ||||||
Repurchases of common stock | (15,211) | (72,287) | (87,498) | ||||
Repurchases of common stock (in shares) | (708) | ||||||
Stock-based compensation | 15,984 | 15,984 | |||||
Balance at Oct. 01, 2022 | $ 3 | $ 0 | $ 1,568,108 | $ (16,467) | $ 1,551,644 | ||
Balance (in shares) at Oct. 01, 2022 | 33,530 | 33,530 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Operating Activities | ||
Net income | $ 66,041 | $ 2,120,497 |
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | ||
Income from discontinued operations, net of income taxes | (2,183,884) | |
Depreciation of property and equipment | 16,514 | 12,925 |
Amortization of other intangible assets | 27,328 | 33,971 |
Amortization of debt discount and debt issuance costs | 1,492 | 17,278 |
Loss on extinguishment of convertible debt | 3 | 3,370 |
Stock-based compensation expense | 43,213 | 36,916 |
Equity-method earnings | (2,985) | (5,938) |
Deferred income taxes | (13,126) | (3,132) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 21,641 | 22,573 |
Inventories | (39,100) | (11,320) |
Prepaid expenses and other assets | (28,404) | 33,536 |
Accounts payable | 26,694 | (4,522) |
Other current liabilities and income taxes | 17,962 | (10,981) |
Deferred revenue and returns liability | (2,144) | (1,657) |
Other non-current liabilities | (7,713) | (11,388) |
Net cash provided by operating activities of continuing operations | 127,416 | 48,244 |
Investing Activities | ||
Purchases of marketable securities | (579,507) | (1,212,572) |
Sales of marketable securities | 42,952 | 194,492 |
Maturities of marketable securities | 597,399 | 173,924 |
Purchases of property and equipment | (20,057) | (19,468) |
Purchases of other assets | (578) | |
Net cash provided by (used in) investing activities of continuing operations | 40,787 | (864,202) |
Financing Activities | ||
Payments on debt | (21) | (140,572) |
Repurchases of common stock | (681,695) | (688,373) |
Payment of taxes withheld for vested stock awards | (14,732) | (21,393) |
Proceeds from the issuance of common stock | 6,366 | 8,619 |
Net cash used in financing activities of continuing operations | (690,082) | (841,719) |
Discontinued Operations | ||
Operating activities | (69,467) | 69,685 |
Investing activities | 0 | 2,747,684 |
Net cash provided by (used in) discontinued operations | (69,467) | 2,817,369 |
Increase (decrease) in cash and cash equivalents | (591,346) | 1,159,692 |
Cash and cash equivalents at beginning of period | 1,074,623 | 202,720 |
Cash and cash equivalents at end of period | $ 483,277 | $ 1,362,412 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Oct. 01, 2022 | |
Significant Accounting Policies | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The information included herein contains all normal recurring accruals and adjustments which, in the opinion of management, are necessary to present fairly Silicon Laboratories Inc.’s (the “Company”) financial position, results of its operations, comprehensive income, stockholders’ equity and cash flows. The Condensed Consolidated Balance Sheet as of January 1, 2022 was derived from the Company’s audited Consolidated Financial Statements. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated results of operations for the three and nine months ended October 1, 2022 are not necessarily indicative of the results to be expected for the full year. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended January 1, 2022, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (SEC) on February 2, 2022. The Company prepares financial statements on a 52- or 53-week fiscal year that ends on the Saturday closest to December 31. Fiscal 2022 will have 52 weeks and fiscal 2021 had 52 weeks. In a 52-week year, each fiscal quarter consists of 13 weeks. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) 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, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. The Company periodically reviews the assumptions used in its financial statement estimates. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. The Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. The Company’s products carry a one-year replacement warranty. Payments are typically due within 30 days of invoicing and do not include a significant financing component. 1. Significant Accounting Policies (Continued) Adoption of New Accounting Standard Convertible Instruments The Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40 Increase Financial Statement Line Item (Decrease) Current portion of convertible debt, net $ 76,991 Other non-current liabilities $ (17,028) Retained earnings $ (59,963) The primary impact of the Company’s adoption of ASU 2020-06 was to increase the carrying value of its convertible debt, representing the unamortized debt discount, and reduce deferred tax liabilities related to convertible debt. The adoption reduced reported interest expense recorded in connection with convertible debt, which increased basic earnings per share and diluted earnings per share by $0.12 and $0.12, respectively, for the three months ended October 1, 2022, and by $0.34 and $0.33, respectively, for the nine months ended October 1, 2022. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Oct. 01, 2022 | |
Discontinued Operations. | |
Discontinued Operations | 2. Discontinued Operations On July 26, 2021, the Company sold its infrastructure and automotive business to Skyworks Solutions, Inc. for $2.75 billion in cash. The financial results of the infrastructure and automotive business, which are readily distinguishable from other components of the Company, have been presented as discontinued operations in the Condensed Consolidated Financial Statements because the sale represented a strategic shift for the Company. The following table presents the financial results of the infrastructure and automotive business (the “discontinued operations”) in the Company’s Condensed Consolidated Statements of Income (in thousands, except per share data): Three Months Ended Nine Months Ended October 2, October 2, 2021 2021 Revenues $ 28,203 $ 233,915 Costs of revenues 11,891 95,800 Operating expenses (496) 46,512 Operating income from discontinued operations 16,808 91,603 Gain on sale of discontinued operations 2,423,161 2,423,161 Income from discontinued operations before income taxes 2,439,969 2,514,764 Provision for income taxes 333,173 330,880 Income from discontinued operations $ 2,106,796 $ 2,183,884 Income from discontinued operations per share: Basic $ 48.56 $ 49.52 Diluted $ 47.20 $ 48.11 2. Discontinued Operations (Continued) Continuing Involvement In connection with the closing of the sale, the Company entered into certain ancillary agreements with Skyworks, including a Transition Services Agreement (“TSA”). Through the TSA, the Company has subleased certain premises to Skyworks and will provide or provides various temporary support services for three |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Oct. 01, 2022 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | 3. Earnings (Loss) Per Share The following table sets forth the computation of basic and diluted earnings (loss) per share from continuing operations (in thousands, except per share data): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Income (loss) from continuing operations $ 20,999 $ (19,740) $ 66,041 $ (63,387) Shares used in computing basic earnings (loss) per share 34,079 43,385 35,935 44,103 Effect of dilutive securities: Stock-based awards and convertible debt 700 — 1,033 — Shares used in computing diluted earnings (loss) per share 34,779 43,385 36,968 44,103 Earnings (loss) per share: Basic $ 0.62 $ (0.45) $ 1.84 $ (1.44) Diluted $ 0.60 $ (0.45) $ 1.79 $ (1.44) Diluted shares for the three and nine months ended October 2, 2021 excluded 1.2 million and 1.3 million shares, respectively, due to the Company’s loss from continuing operations for the periods. The Company has irrevocably elected to settle the principal amount of its convertible senior notes in cash and intends to settle any excess value in shares in the event of a conversion. For the three months ended October 1, 2022 and October 2, 2021 and the nine months ended October 1, 2022 and October 2, 2021, approximately 0.4 million, 0.7 million, 0.7 million and 0.8 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share. See Note 7, Debt |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Oct. 01, 2022 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The fair values of the Company’s financial instruments are recorded using a hierarchical 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 other than Level 1 that are directly or indirectly observable, such as quoted prices for similar assets or liabilities and quoted prices in less active markets. 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. 4. Fair Value of Financial Instruments (Continued) 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 at October 1, 2022 Using Quoted Prices in Significant Other Active Markets for Observable Identical Assets Inputs Description (Level 1) (Level 2) Total Assets: Cash equivalents: Money market funds $ 301,640 $ — $ 301,640 Government debt securities 12,988 — 12,988 Corporate debt securities — 27,230 27,230 Total cash equivalents $ 314,628 $ 27,230 $ 341,858 Short-term investments: Government debt securities $ 207,560 $ 99,051 $ 306,611 Corporate debt securities — 586,520 586,520 Total short-term investments $ 207,560 $ 685,571 $ 893,131 Total $ 522,188 $ 712,801 $ 1,234,989 Fair Value Measurements at January 1, 2022 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents: Money market funds $ 845,740 $ — $ — $ 845,740 Corporate debt securities — 3,552 — 3,552 Government debt securities — 2,950 — 2,950 Total cash equivalents $ 845,740 $ 6,502 $ — $ 852,242 Short-term investments: Government debt securities $ 71,509 $ 119,612 $ — $ 191,121 Corporate debt securities — 773,461 — 773,461 Total short-term investments $ 71,509 $ 893,073 $ — $ 964,582 Other assets, net: Auction rate securities $ — $ — $ 4,980 $ 4,980 Total $ — $ — $ 4,980 $ 4,980 Total $ 917,249 $ 899,575 $ 4,980 $ 1,821,804 4. Fair Value of Financial Instruments (Continued) Valuation methodology The Company’s cash equivalents and short-term investments that are 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; quoted prices in less 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 foreign currency derivative instruments are valued using discounted cash flow models. The assumptions used in preparing the valuation models include foreign exchange rates, forward and spot prices for currencies and market observable data of similar instruments. Contractual maturities of investments The Company’s investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheet. The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at October 1, 2022 (in thousands): Fair Cost Value Due in one year or less $ 611,264 $ 601,513 Due after one year through ten years 315,952 307,056 Due after ten years 24,780 24,780 $ 951,996 $ 933,349 Available-for-sale investments 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 Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of October 1, 2022 Value Losses Value Losses Value Losses Government debt securities $ 225,388 $ (3,880) $ 55,508 $ (2,599) $ 280,896 $ (6,479) Corporate debt securities 470,762 (9,524) 104,386 (2,647) 575,148 (12,171) $ 696,150 $ (13,404) $ 159,894 $ (5,246) $ 856,044 $ (18,650) Less Than 12 Months 12 Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of January 1, 2022 Value Losses Value Losses Value Losses Government debt securities $ 126,957 $ (750) $ — $ — $ 126,957 $ (750) Corporate debt securities 418,917 (1,451) 326 (1) 419,243 (1,452) Auction rate securities — — 4,980 (1,020) 4,980 (1,020) $ 545,874 $ (2,201) $ 5,306 $ (1,021) $ 551,180 $ (3,222) The gross unrealized losses as of October 1, 2022 were due primarily to changes in market interest rates. The gross unrealized losses as of January 1, 2022 were due primarily to changes in market interest rates and the illiquidity of the Company’s auction-rate securities. 4. Fair Value of Financial Instruments (Continued) The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors. When evaluating an investment for impairment, the Company reviews factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, the Company’s intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. As of October 1, 2022, there were no material declines in the market value of available-for-sale investments due to credit-related factors. At October 1, 2022 and January 1, 2022, there were no material unrealized gains associated with the Company’s available-for-sale investments. Level 3 fair value measurements The following summarizes the activity in Level 3 financial instruments for the nine months ended October 1, 2022 (in thousands): Assets Nine Months Auction Rate Securities Ended Beginning balance $ 4,980 Sales (1) (6,000) Loss recognized in earnings 300 Gain included in other comprehensive loss 720 Balance at October 1, 2022 $ — (1) Fair values of other financial instruments The Company’s debt is recorded at cost, but is measured at fair value for disclosure purposes. The fair value of the Company’s convertible senior notes is determined using observable market prices. The notes are traded in less active markets and are therefore classified as a Level 2 fair value measurement. As of October 1, 2022 and January 1, 2022, the fair value of the notes was $636.2 million and $944.3 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Oct. 01, 2022 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 5. Derivative Financial Instruments The Company uses derivative financial instruments to manage certain exposures to the variability of 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. The Company does not use derivative contracts for speculative or trading purposes. The Company recognizes derivatives, on a gross basis, in the Consolidated Balance Sheet at fair value. Cash flows from derivatives are classified according to the nature of the cash receipt or payment in the Consolidated Statement of Cash Flows. 5. Derivative Financial Instruments (Continued) Cash Flow Hedges Foreign Currency Forward Contracts The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S. dollar. Changes in the fair value of the contracts are recorded in accumulated other comprehensive loss in the Consolidated Balance Sheet and subsequently reclassified into earnings in the period during which the hedged transaction is recognized. The reclassified amount is reported in the same financial statement line item as the hedged item. If the foreign currency forward contracts are terminated or can no longer qualify as hedging instruments prior to maturity, the fair value of the contracts recorded in accumulated other comprehensive loss may be recognized in the Consolidated Statement of Income based on an assessment of the contracts at the time of termination. The Company has entered into foreign currency forward contracts for a portion of its forecasted operating expenses denominated in the Euro, Hungarian Forint, Indian Rupee and Norwegian Krone. As of October 1, 2022, the contracts had maturities of one |
Supplemental Information
Supplemental Information | 9 Months Ended |
Oct. 01, 2022 | |
Supplemental Information | |
Supplemental Information | 6. Supplemental Information The following shows the details of selected Condensed Consolidated Balance Sheet items (in thousands): Inventories October 1, January 1, 2022 2022 Work in progress $ 65,161 $ 36,078 Finished goods 23,286 13,229 $ 88,447 $ 49,307 Lease income The Company leases a portion of its headquarter facilities to other tenants. Lease income from operating leases was $5.4 million and $3.1 million during the nine months ended October 1, 2022 and October 2, 2021, respectively. |
Debt
Debt | 9 Months Ended |
Oct. 01, 2022 | |
Debt | |
Debt | 7. Debt 0.625% Convertible Senior Notes On June 1, 2020, the Company completed a private placement of $535 million principal amount convertible senior notes (the “2025 Notes”). The 2025 Notes bear interest semi-annually at a rate of 0.625% per year and mature on June 15, 2025. The 2025 Notes are convertible at a conversion rate of 8.1980 shares of common stock per $1,000 principal amount of the 2025 Notes, or approximately 4.4 million shares of common stock, which is equivalent to a conversion price of approximately $121.98 per share. The conversion rate is subject to adjustment under certain circumstances. Holders may convert the 2025 Notes under the following circumstances: during any calendar quarter after the calendar quarter ended on September 30, 2020 if the closing price of the Company’s common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is greater than or equal to $159.51 per share, representing 130% of the conversion price of the 2025 Notes (“the Sales Price Trigger”); during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of our common stock and the conversion rate on each such trading day; if specified distributions or corporate events occur; if the Notes are called for redemption; or at any time after March 15, 2025. The Company may redeem all or any portion of the 2025 Notes, at its option, on or after June 20, 2023, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period. As of January 1, 2022, upon conversion, the 2025 Notes could be settled in cash, shares of the Company’s common stock or a combination of cash and shares, at the Company’s election. On January 2, 2022, the Company irrevocably elected cash settlement for the principal amount of the 2025 Notes. The Company intends to settle any excess value in shares in the event of a conversion. The 2025 Notes were classified as current liabilities at January 1, 2022 due to the Sales Price Trigger condition being met on January 1, 2022. The Sales Price Trigger condition has not been met during the nine months ended October 1, 2022, therefore the net carrying amount of the 2025 Notes is now classified as a non-current liability. The principal balance of the 2025 Notes was initially separated into liability and equity components, and recorded at fair value. The excess of the principal amount of the liability component over its carrying amount represented the debt discount, which was amortized to interest expense over the term of the 2025 Notes using the effective interest method. With the Company’s adoption of ASU 2020-06 in fiscal 2022, the principal balance of the 2025 Notes is no longer separated between liability and equity components. This resulted in an increase to the carrying value of its convertible debt, representing the unamortized debt discount as of January 2, 2022, with an offsetting reduction in stockholders’ equity. The Company incurred debt issuance costs of approximately $10.4 million, which were allocated to the liability and equity components in proportion to the allocation of the proceeds. Upon the adoption of ASU 2020-06, the equity component was reclassified to liabilities and remeasured to reflect cumulative amortization since the issuance of the 2025 Notes. 7. Debt (Continued) The carrying amount of the 2025 Notes consisted of the following (in thousands): October 1, January 1, 2022 2022 Liability component Principal $ 534,980 $ 535,000 Unamortized debt discount — (78,519) Unamortized debt issuance costs (5,918) (5,882) Net carrying amount $ 529,062 $ 450,599 Equity component Net carrying amount $ — $ 107,928 The liability component of the 2025 Notes is recorded in convertible debt on the Consolidated Balance Sheet. Prior to the Company’s adoption of ASU 2020-06, the equity component of the 2025 Notes was recorded in stockholders’ equity. The effective interest rate for the liability component was 5.336%. As of October 1, 2022, the remaining period over which the debt issuance costs will be amortized was 2.7 years. Interest expense related to the notes was comprised of the following (in thousands): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Contractual interest expense $ 826 $ 836 $ 2,511 $ 2,835 Amortization of debt discount — 5,076 — 16,005 Amortization of debt issuance costs 498 380 1,492 1,273 $ 1,324 $ 6,292 $ 4,003 $ 20,113 Credit Facility The Company and certain of its domestic subsidiaries (the “Guarantors”) have a $400 million revolving credit facility with a maturity date of August 7, 2024. The credit facility 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 the greater of an aggregate of $250 million and 100% of EBITDA of the last four fiscal quarters, plus an amount that would not cause a secured leverage ratio (funded debt secured by assets/EBITDA) to exceed 3.25 to 1.00, subject to certain conditions. The 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 1.00% to 1.75% and for base rate loans range from 0.00% to 0.75%, depending in each case, on the leverage ratio as defined in the credit facility. The credit facility 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 net leverage ratio (funded indebtedness/EBITDA) of no more than 4.25 to 1, a secured leverage ratio of no more than 3.50 to 1, and a minimum interest coverage ratio (EBITDA/interest payments) of no less than 2.50 to 1. As of October 1, 2022, the Company was in compliance with all covenants of the credit facility. The Company’s obligations under the credit facility are guaranteed by the Guarantors and are secured by a security interest in substantially all assets of the Company and the Guarantors. As of October 1, 2022, no amounts were outstanding on the credit facility. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 01, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies Litigation On August 11, 2022, August 26, 2022 and October 11, 2022, Bell Semiconductor, LLC (“Bell”) filed three separate patent infringement actions against the Company in the U.S. District Court for the District of Massachusetts. Bell alleges in these actions that four U.S. patents are infringed by the use of certain computer-aided-design (CAD) tools to design integrated circuits. The patents in these suits are U.S. Patent Nos. 7,007,259, 7,149,989, 7,260,803 and 7,396,760. In each of these actions, Bell seeks unspecified damages, attorney fees and a permanent injunction. On October 14, 2022, Bell filed a complaint with the U.S. International Trade Commission (“ITC”) alleging violations of Section 337 of the Tariff Act of 1930 based on alleged importation of articles and components that infringe U.S. Patent No. 7,396,760. The ITC complaint seeks institution of an investigation and an exclusion order to prevent the importation and sale of allegedly infringing products in the U.S. The Company intends to vigorously defend against these allegations. Bell has brought similar claims against Skyworks Solutions, Inc. (“Skyworks”), and Skyworks has requested indemnification from the Company under the Asset Purchase Agreement dated April 22, 2021. The Company is unable to predict the outcome of these matters due to the many uncertainties associated with such actions, nor is it able to reasonably estimate the amount or range of possible losses, if any. As of October 1, 2022, no loss contingencies have been accrued for these matters in the Company’s Condensed Consolidated Financial Statements. Other The Company is involved in various other legal proceedings that have arisen in the normal course of business. While the ultimate results cannot be predicted with certainty, the Company does not expect them to have a material adverse effect on its Consolidated Financial Statements. |
Revenues
Revenues | 9 Months Ended |
Oct. 01, 2022 | |
Revenues | |
Revenues | 9. Revenues The Company groups its products as Industrial & Commercial or Home & Life based on the target markets they address. The following represents revenue by product category (in thousands): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Industrial & Commercial $ 145,661 $ 93,339 $ 416,475 $ 261,475 Home & Life 124,156 91,492 350,306 250,705 $ 269,817 $ 184,831 $ 766,781 $ 512,180 A portion of the Company’s sales are made to distributors under agreements allowing certain rights of return and/or price protection related to the final selling price to the end customers. These factors impact the timing and uncertainty of revenues and cash flows. During the three months ended October 1, 2022 and October 2, 2021 and the nine months ended October 1, 2022 and October 2, 2021, the Company recognized revenue of $4.5 million, $10.0 million, $30.7 million and $10.9 million, respectively, from performance obligations that were satisfied in previous reporting periods. The following disaggregates the Company's revenue by sales channel (in thousands): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Distributors $ 217,355 $ 148,773 $ 621,563 $ 414,692 Direct customers 52,462 36,058 145,218 97,488 $ 269,817 $ 184,831 $ 766,781 $ 512,180 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 01, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | 10. Stock-Based Compensation Stock-based compensation costs are based on the fair values on the date of grant for stock awards and stock options and on the date of enrollment for the employee stock purchase plans. The fair values of stock awards (such as restricted stock units (RSUs), performance stock units (PSUs) and restricted stock awards (RSAs)) are estimated based on their intrinsic values. The fair values of market stock awards (MSUs) are estimated using a Monte Carlo simulation. The fair values of stock options and employee stock purchase plans are estimated using the Black-Scholes option-pricing model. The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Cost of revenues $ 288 $ 261 $ 834 $ 696 Research and development 8,788 7,071 23,482 18,190 Selling, general and administrative 6,874 6,964 18,897 18,030 15,950 14,296 43,213 36,916 Income tax (provision) benefit 1,230 (627) 4,444 632 Share-based compensation – continuing operations 14,720 14,923 38,769 36,284 Share-based compensation – discontinued operations, net — (4,115) — (1,006) Total $ 14,720 $ 10,808 $ 38,769 $ 35,278 The Company had approximately $123.4 million of total unrecognized compensation cost related to equity grants as of October 1, 2022 that is expected to be recognized over a weighted-average period of approximately 2.3 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 01, 2022 | |
Income Taxes | |
Income Taxes | 11. 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. Income tax expense was $14.2 million and $9.4 million for the three months ended October 1, 2022 and October 2, 2021, resulting in effective tax rates of 40.3% and (90.7)%, respectively. Income tax expense was $36.9 million and $12.5 million for the nine months ended October 1, 2022 and October 2, 2021, resulting in effective tax rates of 35.8% and (24.7)%, respectively. The increase in the effective tax rate for the three and nine months ended October 1, 2022 was primarily due to the recognition of certain tax benefits for the three and nine months ended October 2, 2021 in discontinued operations under FASB ASU 2019-12, Simplifying the Accounting for Income Taxes, Under ASU 2019-12, the income tax benefit of a loss from continuing operations should be recognized in discontinued operations if the Company would be unable to benefit from the loss without considering the income from discontinued operations. As such, tax benefits associated with losses incurred for the three and nine months ended October 2, 2021 were recognized in discontinued operations. The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Under the Act, research and experimental expenditures incurred for tax years beginning after December 31, 2021 must be capitalized and amortized ratably over five or fifteen years for tax purposes, depending on where the research activities are conducted. The Company has elected to treat global intangible low-taxed income (GILTI) as a period cost so the capitalization of research and experimental costs in GILTI increases the Company’s provision for income taxes. 11. Income Taxes (Continued) Uncertain Tax Positions As of October 1, 2022, the Company had gross unrecognized tax benefits, inclusive of interest, of $4.6 million, all of which would affect the effective tax rate if recognized. During the nine months ended October 1, 2022, the Company did not release any unrecognized tax benefits. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. These amounts were not material for any of the periods presented. Following the completion of the Norwegian Tax Administration (“NTA”) examination of the Company’s Norwegian subsidiary for income tax matters relating to fiscal years 2013 - 2016, the Company received an assessment from the NTA in December 2017 concerning an adjustment to its 2013 taxable income related to the pricing of an intercompany transaction. The Company is currently appealing the assessment. The adjustment to the pricing of the intercompany transaction results in approximately 141.3 million Norwegian kroner, or $13.1 million, additional Norwegian income tax. The Company disagrees with the NTA’s assessment and believes the Company’s position on this matter is more likely than not to be sustained. The Company plans to exhaust all available administrative remedies, and if unable to resolve this matter through administrative remedies with the NTA, the Company plans to pursue judicial remedies. The Company believes that it has accrued adequate reserves related to all matters contained in tax periods open to examination. Should the Company experience an unfavorable outcome in the NTA matter, however, such an outcome could have a material impact on its financial statements. Tax years 2015 through 2022 remain open to examination by the major taxing jurisdictions in which the Company operates. The Company is not currently under audit in any major taxing jurisdiction. The Company believes it is reasonably possible that its gross unrecognized tax benefits will decrease by approximately $0.5 million, inclusive of interest, in the next 12 months due to the lapse of the statute of limitations. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 01, 2022 | |
Significant Accounting Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) 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, goodwill, acquired intangible assets, other long-lived assets, revenue recognition, stock-based compensation and income taxes. Actual results could differ from those estimates, and such differences could be material to the financial statements. The Company periodically reviews the assumptions used in its financial statement estimates. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. This performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs upon delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. The Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year. The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Variable consideration primarily includes sales made to distributors under agreements allowing certain rights of return, referred to as stock rotation, and credits issued to the distributor due to price protection. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The estimate is based on information available to the Company, including recent sales activity and pricing data. The Company applies a constraint to its variable consideration estimate which considers both the likelihood of a return and the amount of a potential price concession. Variable consideration that does not meet revenue recognition criteria is deferred. The Company records a right of return asset in prepaid expenses and other current assets for the costs of distributor inventory not meeting revenue recognition criteria. A corresponding deferred revenue and returns liability amount is recorded for unrecognized revenue associated with such costs. The Company’s products carry a one-year replacement warranty. Payments are typically due within 30 days of invoicing and do not include a significant financing component. |
Adoption of New Accounting Standard | Adoption of New Accounting Standard Convertible Instruments The Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40 Increase Financial Statement Line Item (Decrease) Current portion of convertible debt, net $ 76,991 Other non-current liabilities $ (17,028) Retained earnings $ (59,963) The primary impact of the Company’s adoption of ASU 2020-06 was to increase the carrying value of its convertible debt, representing the unamortized debt discount, and reduce deferred tax liabilities related to convertible debt. The adoption reduced reported interest expense recorded in connection with convertible debt, which increased basic earnings per share and diluted earnings per share by $0.12 and $0.12, respectively, for the three months ended October 1, 2022, and by $0.34 and $0.33, respectively, for the nine months ended October 1, 2022. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Significant Accounting Policies | |
Schedule of material changes recorded in connection with the cumulative-effect adjustment | The following reflects the material changes recorded in connection with the cumulative-effect adjustment (in thousands): Increase Financial Statement Line Item (Decrease) Current portion of convertible debt, net $ 76,991 Other non-current liabilities $ (17,028) Retained earnings $ (59,963) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Discontinued Operations. | |
Schedule of financial results, assets and liabilities from discontinued operations | The following table presents the financial results of the infrastructure and automotive business (the “discontinued operations”) in the Company’s Condensed Consolidated Statements of Income (in thousands, except per share data): Three Months Ended Nine Months Ended October 2, October 2, 2021 2021 Revenues $ 28,203 $ 233,915 Costs of revenues 11,891 95,800 Operating expenses (496) 46,512 Operating income from discontinued operations 16,808 91,603 Gain on sale of discontinued operations 2,423,161 2,423,161 Income from discontinued operations before income taxes 2,439,969 2,514,764 Provision for income taxes 333,173 330,880 Income from discontinued operations $ 2,106,796 $ 2,183,884 Income from discontinued operations per share: Basic $ 48.56 $ 49.52 Diluted $ 47.20 $ 48.11 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Earnings (Loss) Per Share | |
Schedule of computation of basic and diluted earnings (loss) per share | The following table sets forth the computation of basic and diluted earnings (loss) per share from continuing operations (in thousands, except per share data): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Income (loss) from continuing operations $ 20,999 $ (19,740) $ 66,041 $ (63,387) Shares used in computing basic earnings (loss) per share 34,079 43,385 35,935 44,103 Effect of dilutive securities: Stock-based awards and convertible debt 700 — 1,033 — Shares used in computing diluted earnings (loss) per share 34,779 43,385 36,968 44,103 Earnings (loss) per share: Basic $ 0.62 $ (0.45) $ 1.84 $ (1.44) Diluted $ 0.60 $ (0.45) $ 1.79 $ (1.44) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Fair Value of Financial Instruments | |
Summary of valuation of the financial instruments | 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 at October 1, 2022 Using Quoted Prices in Significant Other Active Markets for Observable Identical Assets Inputs Description (Level 1) (Level 2) Total Assets: Cash equivalents: Money market funds $ 301,640 $ — $ 301,640 Government debt securities 12,988 — 12,988 Corporate debt securities — 27,230 27,230 Total cash equivalents $ 314,628 $ 27,230 $ 341,858 Short-term investments: Government debt securities $ 207,560 $ 99,051 $ 306,611 Corporate debt securities — 586,520 586,520 Total short-term investments $ 207,560 $ 685,571 $ 893,131 Total $ 522,188 $ 712,801 $ 1,234,989 Fair Value Measurements at January 1, 2022 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents: Money market funds $ 845,740 $ — $ — $ 845,740 Corporate debt securities — 3,552 — 3,552 Government debt securities — 2,950 — 2,950 Total cash equivalents $ 845,740 $ 6,502 $ — $ 852,242 Short-term investments: Government debt securities $ 71,509 $ 119,612 $ — $ 191,121 Corporate debt securities — 773,461 — 773,461 Total short-term investments $ 71,509 $ 893,073 $ — $ 964,582 Other assets, net: Auction rate securities $ — $ — $ 4,980 $ 4,980 Total $ — $ — $ 4,980 $ 4,980 Total $ 917,249 $ 899,575 $ 4,980 $ 1,821,804 |
Schedule of maturities of the Company's available-for-sale investments and money market funds | The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at October 1, 2022 (in thousands): Fair Cost Value Due in one year or less $ 611,264 $ 601,513 Due after one year through ten years 315,952 307,056 Due after ten years 24,780 24,780 $ 951,996 $ 933,349 |
Schedule of available-for-sale investments in continuous unrealized loss position | 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 Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of October 1, 2022 Value Losses Value Losses Value Losses Government debt securities $ 225,388 $ (3,880) $ 55,508 $ (2,599) $ 280,896 $ (6,479) Corporate debt securities 470,762 (9,524) 104,386 (2,647) 575,148 (12,171) $ 696,150 $ (13,404) $ 159,894 $ (5,246) $ 856,044 $ (18,650) Less Than 12 Months 12 Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized As of January 1, 2022 Value Losses Value Losses Value Losses Government debt securities $ 126,957 $ (750) $ — $ — $ 126,957 $ (750) Corporate debt securities 418,917 (1,451) 326 (1) 419,243 (1,452) Auction rate securities — — 4,980 (1,020) 4,980 (1,020) $ 545,874 $ (2,201) $ 5,306 $ (1,021) $ 551,180 $ (3,222) |
Summary of activity in Level 3 financial instruments | The following summarizes the activity in Level 3 financial instruments for the nine months ended October 1, 2022 (in thousands): Assets Nine Months Auction Rate Securities Ended Beginning balance $ 4,980 Sales (1) (6,000) Loss recognized in earnings 300 Gain included in other comprehensive loss 720 Balance at October 1, 2022 $ — (1) |
Supplemental Information (Table
Supplemental Information (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Supplemental Information | |
Schedule of Inventories | The following shows the details of selected Condensed Consolidated Balance Sheet items (in thousands): Inventories October 1, January 1, 2022 2022 Work in progress $ 65,161 $ 36,078 Finished goods 23,286 13,229 $ 88,447 $ 49,307 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Debt | |
Summary of information about the equity and liability components of convertible debt | The carrying amount of the 2025 Notes consisted of the following (in thousands): October 1, January 1, 2022 2022 Liability component Principal $ 534,980 $ 535,000 Unamortized debt discount — (78,519) Unamortized debt issuance costs (5,918) (5,882) Net carrying amount $ 529,062 $ 450,599 Equity component Net carrying amount $ — $ 107,928 |
Schedule of components of interest expense | Interest expense related to the notes was comprised of the following (in thousands): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Contractual interest expense $ 826 $ 836 $ 2,511 $ 2,835 Amortization of debt discount — 5,076 — 16,005 Amortization of debt issuance costs 498 380 1,492 1,273 $ 1,324 $ 6,292 $ 4,003 $ 20,113 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Revenues | |
Schedule of disaggregation of revenue | The following represents revenue by product category (in thousands): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Industrial & Commercial $ 145,661 $ 93,339 $ 416,475 $ 261,475 Home & Life 124,156 91,492 350,306 250,705 $ 269,817 $ 184,831 $ 766,781 $ 512,180 Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Distributors $ 217,355 $ 148,773 $ 621,563 $ 414,692 Direct customers 52,462 36,058 145,218 97,488 $ 269,817 $ 184,831 $ 766,781 $ 512,180 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Stock-Based Compensation | |
Schedule of stock-based compensation costs recognized in the Condensed 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 Nine Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Cost of revenues $ 288 $ 261 $ 834 $ 696 Research and development 8,788 7,071 23,482 18,190 Selling, general and administrative 6,874 6,964 18,897 18,030 15,950 14,296 43,213 36,916 Income tax (provision) benefit 1,230 (627) 4,444 632 Share-based compensation – continuing operations 14,720 14,923 38,769 36,284 Share-based compensation – discontinued operations, net — (4,115) — (1,006) Total $ 14,720 $ 10,808 $ 38,769 $ 35,278 |
Significant Accounting Polici_4
Significant Accounting Policies - Basis of Presentation and Principles of Consolidation (Details) | 9 Months Ended | 12 Months Ended |
Oct. 01, 2022 | Jan. 01, 2022 | |
Significant Accounting Policies | ||
Length of fiscal year | 364 days | 364 days |
Number of days in each fiscal quarter for 52-week fiscal year | 91 days | |
Minimum | ||
Significant Accounting Policies | ||
Length of fiscal year | 364 days | |
Maximum | ||
Significant Accounting Policies | ||
Length of fiscal year | 371 days |
Significant Accounting Polici_5
Significant Accounting Policies - Adoption of New Accounting Standards (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Jan. 02, 2022 | Jan. 01, 2022 | |
Significant Accounting Policies | ||||||
Current portion of convertible debt, net | $ 450,599 | |||||
Other non-current liabilities | $ 49,890 | $ 49,890 | 77,044 | |||
Retained earnings | $ 1,568,108 | $ 1,568,108 | $ 2,214,839 | |||
Basic (in dollars per share) | $ 0.62 | $ 48.11 | $ 1.84 | $ 48.08 | ||
Diluted (in dollars per share) | 0.60 | $ 46.76 | 1.79 | $ 46.71 | ||
ASU 2020-06 | Cumulative effect of adoption of accounting standard | ||||||
Significant Accounting Policies | ||||||
Current portion of convertible debt, net | $ 76,991 | |||||
Other non-current liabilities | (17,028) | |||||
Retained earnings | $ (59,963) | |||||
Basic (in dollars per share) | 0.12 | 0.34 | ||||
Diluted (in dollars per share) | $ 0.12 | $ 0.33 |
Discontinued Operations (Detail
Discontinued Operations (Details) - Discontinued operations - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 26, 2021 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Transition Services Agreement | ||||
Continuing Involvement | ||||
TSA fees | $ 4,800 | |||
Infrastructure and automotive business | ||||
Discontinued Operations | ||||
Asset Purchase Agreement sale amount | $ 2,750,000 | |||
Financial results of the infrastructure and automotive business | ||||
Revenues | $ 28,203 | $ 233,915 | ||
Costs of revenues | 11,891 | 95,800 | ||
Operating expenses | (496) | 46,512 | ||
Operating income from discontinued operations | 16,808 | 91,603 | ||
Gain on sale of discontinued operations | 2,423,161 | 2,423,161 | ||
Income from discontinued operations before income taxes | 2,439,969 | 2,514,764 | ||
Provision for income taxes | 333,173 | 330,880 | ||
Income from discontinued operations | $ 2,106,796 | $ 2,183,884 | ||
Income from discontinued operations per share: | ||||
Basic | $ 48.56 | $ 49.52 | ||
Diluted | $ 47.20 | $ 48.11 | ||
Infrastructure and automotive business | Transition Services Agreement | Minimum | ||||
Continuing Involvement | ||||
Term of continuing involvement | 3 months | |||
Infrastructure and automotive business | Transition Services Agreement | Maximum | ||||
Continuing Involvement | ||||
Term of continuing involvement | 18 months |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Earnings (Loss) Per Share | ||||
Income (loss) from continuing operations | $ 20,999 | $ (19,740) | $ 66,041 | $ (63,387) |
Shares used in computing basic earnings (loss) per share | 34,079 | 43,385 | 35,935 | 44,103 |
Effect of dilutive securities: | ||||
Stock-based awards and convertible debt | 700 | 1,033 | ||
Shares used in computing diluted earnings (loss) per share | 34,779 | 43,385 | 36,968 | 44,103 |
Basic | $ 0.62 | $ (0.45) | $ 1.84 | $ (1.44) |
Diluted | $ 0.60 | $ (0.45) | $ 1.79 | $ (1.44) |
Income (loss) per share: | ||||
Shares excluded from calculation of diluted shares due to loss from continuing operations | 1,200 | 1,300 | ||
Shares attributable to dilutive effect of conversion of debt securities | 400 | 700 | 700 | 800 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of financial instruments (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Financial assets and liabilities measured at fair value on a recurring basis | ||
Short-term investments | $ 893,131 | $ 964,582 |
Recurring | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 341,858 | 852,242 |
Short-term investments | 893,131 | 964,582 |
Other assets, net | 4,980 | |
Total | 1,234,989 | 1,821,804 |
Recurring | Money market funds | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 301,640 | 845,740 |
Recurring | Government debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 12,988 | 2,950 |
Short-term investments | 306,611 | 191,121 |
Recurring | Corporate debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 27,230 | 3,552 |
Short-term investments | 586,520 | 773,461 |
Recurring | Auction rate securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Other assets, net | 4,980 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 314,628 | 845,740 |
Short-term investments | 207,560 | 71,509 |
Total | 522,188 | 917,249 |
Recurring | 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 | ||
Cash equivalents | 301,640 | 845,740 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 12,988 | |
Short-term investments | 207,560 | 71,509 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 27,230 | 6,502 |
Short-term investments | 685,571 | 893,073 |
Total | 712,801 | 899,575 |
Recurring | Significant Other Observable Inputs (Level 2) | Government debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 2,950 | |
Short-term investments | 99,051 | 119,612 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 27,230 | 3,552 |
Short-term investments | $ 586,520 | 773,461 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Other assets, net | 4,980 | |
Total | 4,980 | |
Recurring | Significant Unobservable Inputs (Level 3) | Auction rate securities | ||
Financial assets and liabilities measured at fair value on a recurring basis | ||
Other assets, net | $ 4,980 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Contractual maturities of investments (Details) $ in Thousands | Oct. 01, 2022 USD ($) |
Cost | |
Due in one year or less, Cost | $ 611,264 |
Due after one year through ten years, Cost | 315,952 |
Due after ten years, Cost | 24,780 |
Total Cost | 951,996 |
Fair Value | |
Due in one year or less, Fair Value | 601,513 |
Due after one year through ten years, Fair Value | 307,056 |
Due after ten years, Fair Value | 24,780 |
Total Fair Value | $ 933,349 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Available-for-sale investments (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | $ 696,150 | $ 545,874 |
Fair value of available-for-sale securities, continuous loss position for twelve months or greater | 159,894 | 5,306 |
Total fair value of available-for-sale securities, continuous loss position | 856,044 | 551,180 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (13,404) | (2,201) |
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (5,246) | (1,021) |
Available-for-sale securities, total gross unrealized losses | (18,650) | (3,222) |
Government debt securities | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | 225,388 | 126,957 |
Fair value of available-for-sale securities, continuous loss position for twelve months or greater | 55,508 | |
Total fair value of available-for-sale securities, continuous loss position | 280,896 | 126,957 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (3,880) | (750) |
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (2,599) | |
Available-for-sale securities, total gross unrealized losses | (6,479) | (750) |
Corporate debt securities | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for less than twelve months | 470,762 | 418,917 |
Fair value of available-for-sale securities, continuous loss position for twelve months or greater | 104,386 | 326 |
Total fair value of available-for-sale securities, continuous loss position | 575,148 | 419,243 |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for less than 12 months, gross unrealized losses | (9,524) | (1,451) |
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (2,647) | (1) |
Available-for-sale securities, total gross unrealized losses | $ (12,171) | (1,452) |
Auction rate securities | ||
Continuous unrealized loss position, Fair Value | ||
Fair value of available-for-sale securities, continuous loss position for twelve months or greater | 4,980 | |
Total fair value of available-for-sale securities, continuous loss position | 4,980 | |
Continuous unrealized loss position, Gross Unrealized Losses | ||
Available-for-sale securities, continuous loss position for 12 months or greater, gross unrealized losses | (1,020) | |
Available-for-sale securities, total gross unrealized losses | $ (1,020) |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Activity in Level 3 financial instruments (Details) - Significant Unobservable Inputs (Level 3) - Recurring - Auction rate securities - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
May 31, 2022 | Oct. 01, 2022 | Oct. 01, 2022 | |
Fair value assets reconciliation of changes | |||
Beginning balance | $ 4,980 | ||
Sales | $ (5,700) | (6,000) | |
Loss recognized in earnings | $ 300 | ||
Loss recognized in earnings, Statements of Income location | Interest income and other, net | Interest income and other, net | |
Gain included in other comprehensive loss | $ 720 | ||
Gain included in other comprehensive loss, Statements of Comprehensive Income location | Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | |
Ending balance | $ 0 | $ 0 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Fair values of other financial instruments (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 |
Convertible Senior Notes | ||
Fair values of other financial instruments | ||
Fair value of debt | $ 636.2 | $ 944.3 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - Cash flow hedges - Foreign currency forward contracts $ in Millions | 9 Months Ended |
Oct. 01, 2022 USD ($) | |
Derivative Financial Instruments | |
Derivative, notional amount | $ 16.3 |
Minimum | |
Derivative Financial Instruments | |
Maturity of contracts | 1 month |
Maximum | |
Derivative Financial Instruments | |
Maturity of contracts | 3 months |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Jan. 01, 2022 | |
Inventories | |||
Work in progress | $ 65,161 | $ 36,078 | |
Finished goods | 23,286 | 13,229 | |
Inventories | 88,447 | $ 49,307 | |
Lease income | |||
Lease income | $ 5,400 | $ 3,100 | |
Lease income, Statements of Income location | Selling, general and administrative | Selling, general and administrative |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes (Details) - 0.625% Convertible Senior Notes (2025 Notes) $ / shares in Units, $ in Millions | Jun. 01, 2020 USD ($) D $ / shares |
Debt | |
Principal amount | $ | $ 535 |
Semi-annual interest rate | 0.625% |
Conversion rate, shares per $1,000 principal | 8.1980 |
Conversion, number of shares of common stock | $ | 4.4 |
Initial conversion price | $ / shares | $ 121.98 |
Debt issuance costs | $ | $ 10.4 |
Conversion of Notes, Holders | |
Debt | |
Number of trading days within 30 trading day period | 20 |
Number of consecutive trading days | 30 |
Stock price trigger per share | $ / shares | $ 159.51 |
Stock price trigger, as a percentage of conversion price | 130% |
Number of consecutive business days after the 10 consecutive trading day period | 5 |
Number of consecutive trading days before the five consecutive business days | 10 |
Maximum threshold stock price, as a percentage of conversion price | 98% |
Conversion of Notes, Company | |
Debt | |
Number of trading days within 30 trading day period | 20 |
Number of consecutive trading days | 30 |
Stock price trigger, as a percentage of conversion price | 130% |
Debt - Convertible Debt, Net (D
Debt - Convertible Debt, Net (Details) - 0.625% Convertible Senior Notes (2025 Notes) - USD ($) $ in Thousands | Oct. 01, 2022 | Jan. 01, 2022 |
Equity component | ||
Effective interest rate | 5.336% | |
Amortization period of debt discount and debt issuance costs | 2 years 8 months 12 days | |
Convertible Senior Notes | ||
Liability component | ||
Principal | $ 534,980 | $ 535,000 |
Unamortized debt discount | (78,519) | |
Unamortized debt issuance costs | (5,918) | (5,882) |
Net carrying amount | $ 529,062 | 450,599 |
Equity component | ||
Net carrying amount | $ 107,928 |
Debt - Interest expense (Detail
Debt - Interest expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Interest expense related to the notes | ||||
Interest Expense, Total | $ 1,527 | $ 6,595 | $ 4,874 | $ 24,405 |
Convertible Senior Notes | ||||
Interest expense related to the notes | ||||
Contractual interest expense | 826 | 836 | 2,511 | 2,835 |
Amortization of debt discount | 5,076 | 16,005 | ||
Amortization of debt issuance costs | 498 | 380 | 1,492 | 1,273 |
Interest Expense, Total | $ 1,324 | $ 6,292 | $ 4,003 | $ 20,113 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) $ in Millions | 9 Months Ended |
Oct. 01, 2022 USD ($) | |
Credit Facility | |
Debt | |
Amount outstanding | $ 0 |
Credit Facility | Scenario: Company's option to increase borrowing capacity | |
Debt | |
Additional increase in borrowing capacity of the line of credit available at the entity's option | $ 250 |
Additional increase in borrowing capacity based on EBITDA (as a percent) | 100% |
Maximum secured leverage ratio | 3.25 |
Credit Facility | Scenario: Credit facility debt covenants | |
Debt | |
Maximum net leverage ratio | 4.25 |
Maximum secured leverage ratio | 3.50 |
Minimum interest coverage ratio | 2.50 |
Revolving Credit Facility | |
Debt | |
Maximum borrowing capacity | $ 400 |
Revolving credit facility, other than swingline loans | Federal Funds | |
Debt | |
Interest rate margin (as a percent) | 0.50% |
Revolving credit facility, other than swingline loans | Eurodollar Rate | |
Debt | |
Interest rate margin (as a percent) | 1% |
Revolving credit facility, other than swingline loans | Eurodollar Rate | Minimum | |
Debt | |
Interest rate margin (as a percent) | 1% |
Revolving credit facility, other than swingline loans | Eurodollar Rate | Maximum | |
Debt | |
Interest rate margin (as a percent) | 1.75% |
Revolving credit facility, other than swingline loans | Base Rate | Minimum | |
Debt | |
Interest rate margin (as a percent) | 0% |
Revolving credit facility, other than swingline loans | Base Rate | Maximum | |
Debt | |
Interest rate margin (as a percent) | 0.75% |
Letter of Credit | |
Debt | |
Maximum borrowing capacity | $ 25 |
Swingline Loans | |
Debt | |
Maximum borrowing capacity | $ 10 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Oct. 01, 2022 USD ($) |
Commitments and Contingencies | |
Loss contingency accrual | $ 0 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Revenues | ||||
Revenues | $ 269,817 | $ 184,831 | $ 766,781 | $ 512,180 |
Revenue from performance obligations that were satisfied in previous reporting periods | 4,500 | 10,000 | 30,700 | 10,900 |
Distributors | ||||
Revenues | ||||
Revenues | 217,355 | 148,773 | 621,563 | 414,692 |
Direct customers | ||||
Revenues | ||||
Revenues | 52,462 | 36,058 | 145,218 | 97,488 |
Industrial and Commercial | ||||
Revenues | ||||
Revenues | 145,661 | 93,339 | 416,475 | 261,475 |
Home and Life | ||||
Revenues | ||||
Revenues | $ 124,156 | $ 91,492 | $ 350,306 | $ 250,705 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Stock-based compensation costs | ||||
Stock based compensation costs | $ 15,950 | $ 14,296 | $ 43,213 | $ 36,916 |
Income tax (provision) benefit | 1,230 | (627) | 4,444 | 632 |
Share based compensation costs after tax | 14,720 | 10,808 | 38,769 | 35,278 |
Total unrecognized compensation costs related to awards | 123,400 | $ 123,400 | ||
Weighted-average period of recognition of unrecognized compensation costs | 2 years 3 months 18 days | |||
Continuing operations | ||||
Stock-based compensation costs | ||||
Share based compensation costs after tax | 14,720 | 14,923 | $ 38,769 | 36,284 |
Discontinued operations | ||||
Stock-based compensation costs | ||||
Share based compensation costs after tax | (4,115) | (1,006) | ||
Cost of revenues | ||||
Stock-based compensation costs | ||||
Stock based compensation costs | 288 | 261 | 834 | 696 |
Research and development | ||||
Stock-based compensation costs | ||||
Stock based compensation costs | 8,788 | 7,071 | 23,482 | 18,190 |
Selling, general and administrative | ||||
Stock-based compensation costs | ||||
Stock based compensation costs | $ 6,874 | $ 6,964 | $ 18,897 | $ 18,030 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands, kr in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2022 USD ($) | Oct. 02, 2021 USD ($) | Oct. 01, 2022 USD ($) | Oct. 01, 2022 NOK (kr) | Oct. 02, 2021 USD ($) | |
Income Taxes | |||||
Income tax expense (benefit) | $ 14,188 | $ 9,386 | $ 36,871 | $ 12,543 | |
Effective income tax rate (as a percent) | 40.30% | (90.70%) | 35.80% | 35.80% | (24.70%) |
Gross unrecognized tax benefits which would affect the effective tax rate if recognized | $ 4,600 | $ 4,600 | |||
Reasonably possible amount of decrease in gross unrecognized tax benefits over the next 12 months | $ (500) | (500) | |||
Norwegian Tax Administration | 2013 | Under appeal | |||||
Income Taxes | |||||
Estimate of additional income tax expense | $ 13,100 | kr 141.3 |