Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 02, 2013 | Nov. 27, 2013 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 2-Nov-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'MRVL | ' |
Entity Registrant Name | 'MARVELL TECHNOLOGY GROUP LTD | ' |
Entity Central Index Key | '0001058057 | ' |
Current Fiscal Year End Date | '--02-01 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 491,900,000 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $796,330 | $751,953 |
Short-term investments | 1,007,738 | 1,167,037 |
Accounts receivable, net | 466,729 | 330,238 |
Inventories | 380,412 | 250,420 |
Prepaid expenses and other current assets | 57,888 | 77,282 |
Deferred income taxes | 8,562 | 8,416 |
Total current assets | 2,717,659 | 2,585,346 |
Property and equipment, net | 358,150 | 372,971 |
Long-term investments | 16,158 | 16,769 |
Goodwill | 2,032,538 | 2,032,138 |
Acquired intangible assets, net | 61,072 | 89,655 |
Other non-current assets | 162,379 | 164,885 |
Total assets | 5,347,956 | 5,261,764 |
Current liabilities: | ' | ' |
Accounts payable | 400,403 | 286,552 |
Accrued liabilities | 139,039 | 143,991 |
Accrued employee compensation | 131,160 | 117,195 |
Deferred income | 86,370 | 60,150 |
Total current liabilities | 756,972 | 607,888 |
Non-current income taxes payable | 83,290 | 112,871 |
Other non-current liabilities | 44,475 | 56,410 |
Total liabilities | 884,737 | 777,169 |
Commitments and contingencies (Note 10) | ' | ' |
Shareholders' equity: | ' | ' |
Common shares, $0.002 par value | 980 | 1,017 |
Additional paid-in capital | 2,796,764 | 2,945,643 |
Accumulated other comprehensive income | 57 | 1,148 |
Retained earnings | 1,665,418 | 1,536,787 |
Total shareholders' equity | 4,463,219 | 4,484,595 |
Total liabilities and shareholders' equity | $5,347,956 | $5,261,764 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
Common shares, par value | $0.00 | $0.00 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Net revenue | $931,226 | $780,881 | $2,472,651 | $2,393,336 |
Operating costs and expenses: | ' | ' | ' | ' |
Cost of goods sold | 464,981 | 374,503 | 1,186,478 | 1,122,664 |
Research and development | 296,291 | 263,615 | 867,985 | 783,760 |
Selling and marketing | 37,496 | 38,398 | 116,033 | 119,498 |
General and administrative | 26,589 | 24,514 | 80,104 | 75,937 |
Amortization and write-off of acquired intangible assets | 10,645 | 13,054 | 31,969 | 40,432 |
Total operating costs and expenses | 836,002 | 714,084 | 2,282,569 | 2,142,291 |
Operating income | 95,224 | 66,797 | 190,082 | 251,045 |
Interest and other income, net | 1,536 | 2,387 | 12,949 | 9,308 |
Income before income taxes | 96,760 | 69,184 | 203,031 | 260,353 |
Provision (benefit) for income taxes | -6,396 | 368 | -15,160 | 3,920 |
Net income | $103,156 | $68,816 | $218,191 | $256,433 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.21 | $0.12 | $0.44 | $0.45 |
Diluted | $0.21 | $0.12 | $0.43 | $0.45 |
Weighted average shares: | ' | ' | ' | ' |
Basic | 491,979 | 553,049 | 496,151 | 565,145 |
Diluted | 501,189 | 559,348 | 502,401 | 574,804 |
Cash dividend declared per share | $0.06 | $0.06 | $0.18 | $0.12 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Net income | $103,156 | $68,816 | $218,191 | $256,433 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Net change in unrealized gain/loss on marketable securities | 1,335 | -479 | -1,199 | 394 |
Net change in unrealized gain/loss on auction rate securities | -141 | ' | -311 | -112 |
Net change in unrealized gain/loss on cash flow hedges | 435 | 2,476 | 419 | 2,317 |
Other comprehensive income (loss), net | 1,629 | 1,997 | -1,091 | 2,599 |
Comprehensive income | $104,785 | $70,813 | $217,100 | $259,032 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $218,191 | $256,433 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 76,576 | 64,801 |
Share-based compensation | 117,805 | 90,794 |
Amortization and write-off of acquired intangible assets | 31,969 | 40,432 |
Other expense, net | 5,994 | 6,435 |
Excess tax benefits from share-based compensation | -42 | -49 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -136,491 | 32,493 |
Inventories | -129,450 | 29,634 |
Prepaid expenses and other assets | 15,012 | 15,993 |
Accounts payable | 128,311 | -27,137 |
Accrued liabilities and other non-current liabilities | -20,510 | 10,286 |
Accrued employee compensation | 13,965 | 4,828 |
Deferred income | 26,220 | -501 |
Net cash provided by operating activities | 347,550 | 524,442 |
Cash flows from investing activities: | ' | ' |
Purchases of available-for-sale securities | -691,749 | -1,205,364 |
Sales and maturities of available-for-sale securities | 845,506 | 1,317,744 |
Investments in privately-held companies | -1,869 | -5,750 |
Cash paid for acquisition, net | -2,551 | -1,000 |
Purchases of technology licenses | -13,993 | -10,687 |
Purchases of property and equipment | -53,283 | -49,090 |
Net cash provided by investing activities | 82,061 | 45,853 |
Cash flows from financing activities: | ' | ' |
Repurchase of common stock | -376,285 | -676,471 |
Proceeds from employee stock plans | 97,276 | 66,244 |
Minimum tax withholding paid on behalf of employees for net share settlement | -10,406 | -9,822 |
Dividend payments to shareholders | -89,560 | -67,013 |
Payments on technology license obligations | -6,301 | ' |
Excess tax benefits from share-based compensation | 42 | 49 |
Net cash used in financing activities | -385,234 | -687,013 |
Net increase (decrease) in cash and cash equivalents | 44,377 | -116,718 |
Cash and cash equivalents at beginning of period | 751,953 | 784,902 |
Cash and cash equivalents at end of period | $796,330 | $668,184 |
The_Company_and_Basis_of_Prese
The Company and Basis of Presentation | 9 Months Ended |
Nov. 02, 2013 | |
The Company and Basis of Presentation | ' |
Note 1. The Company and Basis of Presentation | |
The Company | |
Marvell Technology Group Ltd., a Bermuda company (the “Company”), is a leading global semiconductor provider of high-performance application specific standard products. The Company’s core strength of expertise is the development of complex System-on-a-Chip devices leveraging its extensive technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing and embedded ARM-based microprocessor integrated circuits. The Company also develops platforms that it defines as integrated hardware, along with software that incorporates digital computing technologies designed and configured to provide an optimized computing solution compared to individual components. The Company’s broad product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceivers, mobile handsets and other consumer electronics, Ethernet-based wireless networking, personal area networking, Ethernet-based PC connectivity, control plane communications controllers, video-image processing and power management solutions. | |
Reclassification | |
Certain amounts in the unaudited condensed consolidated financial statements and notes to the unaudited condensed consolidated financial statements for prior years have been reclassified to conform to the fiscal 2014 presentation. Net operating results have not been affected by these reclassifications. | |
Basis of Presentation | |
The Company’s fiscal year is the 52- or 53-week period ending on the Saturday closest to January 31. In a 52-week year, each fiscal quarter consists of 13 weeks. The additional week in a 53-week year is added to the fourth quarter, making such quarter consist of 14 weeks. Fiscal 2014 has a 52-week period and fiscal 2013 had a 53-week period. | |
The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments consisting of normal and recurring entries considered necessary for a fair statement of the results for the interim periods have been included in the Company’s balance sheet as of November 2, 2013, the results of its operations for the three and nine months ended November 2, 2013 and October 27, 2012, its comprehensive income for the three and nine months ended November 2, 2013 and October 27, 2012, and its cash flows for the nine months ended November 2, 2013 and October 27, 2012. The February 2, 2013 condensed consolidated balance sheet data was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013, but does not include all disclosures required for annual periods. | |
These condensed consolidated financial statements and related notes are unaudited and should be read in conjunction with the Company’s audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013 as filed on March 29, 2013 with the Securities and Exchange Commission. The results of operations for the three and nine months ended November 2, 2013 are not necessarily indicative of the results that may be expected for any other interim period or for the full fiscal year. | |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to performance-based compensation, revenue recognition, provisions for sales returns and allowances, inventory excess and obsolescence, investment fair values, goodwill and other intangible assets, restructuring, income taxes, litigation and other contingencies. In addition, the Company uses assumptions when employing the Monte Carlo simulation and Black-Scholes valuation models to calculate the fair value of share-based awards that are granted. Actual results could differ from these estimates, and such differences could affect the results of operations reported in future periods. | |
Principles of Consolidation | |
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The functional currency of the Company and its subsidiaries is the U.S. dollar. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Nov. 02, 2013 | |
Recent Accounting Pronouncements | ' |
Note 2. Recent Accounting Pronouncements | |
The Company adopted the new accounting standard regarding the testing of indefinite-lived intangible assets for impairment at the beginning of fiscal 2014. This amended guidance allows an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with the guidance on the impairment of intangible assets other than goodwill. The adoption of this guidance had no impact on the Company’s financial statements. | |
The Company adopted the new accounting standard regarding the reporting of amounts reclassified out of accumulated other comprehensive income. The amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either in the financial statements or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The Company elected to disclose the information in the Notes to Unaudited Condensed Consolidated Financial Statements beginning in fiscal 2014. |
Investments
Investments | 9 Months Ended | ||||||||||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
Note 3. Investments | |||||||||||||||||||||||||
The following tables summarize the Company’s investments (in thousands): | |||||||||||||||||||||||||
November 2, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Corporate debt securities | $ | 588,021 | $ | 2,262 | $ | (791 | ) | $ | 589,492 | ||||||||||||||||
U.S. government and agency debt | 309,216 | 129 | (82 | ) | 309,263 | ||||||||||||||||||||
Asset backed securities | 74,431 | 65 | (52 | ) | 74,444 | ||||||||||||||||||||
Foreign government and agency debt | 20,307 | 25 | (40 | ) | 20,292 | ||||||||||||||||||||
Municipal debt securities | 14,220 | 28 | (1 | ) | 14,247 | ||||||||||||||||||||
Total short-term investments | 1,006,195 | 2,509 | (966 | ) | 1,007,738 | ||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Auction rate securities | 19,150 | — | (2,992 | ) | 16,158 | ||||||||||||||||||||
Total long-term investments | 19,150 | — | (2,992 | ) | 16,158 | ||||||||||||||||||||
Total investments | $ | 1,025,345 | $ | 2,509 | $ | (3,958 | ) | $ | 1,023,896 | ||||||||||||||||
February 2, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Corporate debt securities | $ | 577,120 | $ | 2,886 | $ | (382 | ) | $ | 579,624 | ||||||||||||||||
U.S. government and agency debt | 318,226 | 258 | (5 | ) | 318,479 | ||||||||||||||||||||
Time deposits | 188,000 | — | — | 188,000 | |||||||||||||||||||||
Asset backed securities | 76,629 | 50 | (64 | ) | 76,615 | ||||||||||||||||||||
Foreign government and agency debt | 4,320 | — | (1 | ) | 4,319 | ||||||||||||||||||||
Total short-term investments | 1,164,295 | 3,194 | (452 | ) | 1,167,037 | ||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Auction rate securities | 19,450 | — | (2,681 | ) | 16,769 | ||||||||||||||||||||
Total long-term investments | 19,450 | — | (2,681 | ) | 16,769 | ||||||||||||||||||||
Total investments | $ | 1,183,745 | $ | 3,194 | $ | (3,133 | ) | $ | 1,183,806 | ||||||||||||||||
As of November 2, 2013, the Company’s investment portfolio included auction rate securities with an aggregate par value of $19.2 million. Beginning in February 2008, liquidity issues in the global credit markets resulted in a failure of auction rate securities, as the amount of securities submitted for sale in those auctions exceeded the amount of bids. Since this time, many of the issuers have refinanced their debt and paid down the auction rate securities, which have resulted in a smaller pool of outstanding securities. Although these securities have continued to pay interest and show an improvement in the underlying collateralization, there is currently limited trading volume. To estimate the fair value of the auction rate securities, the Company uses a discounted cash flow model based on estimated timing and amount of future interest and principal payments. In developing the cash flow model, the Company considers the credit quality and liquidity of the underlying securities and related issuer, the collateralization of underlying security investments and other considerations. The fair value of the auction rate securities as of November 2, 2013 was $3.0 million less than the par value and was recorded in long-term investments. Based on the Company’s balance of approximately $1.8 billion in cash, cash equivalents and short-term investments, and the fact that the Company continues to generate positive cash flow from operations on a quarterly basis, the Company does not anticipate having to sell these securities below par value and does not have the intent to sell these auction rate securities until recovery. Since the Company considers the impairment to be temporary, the Company recorded the unrealized loss to accumulated other comprehensive income, a component of shareholders’ equity. | |||||||||||||||||||||||||
The contractual maturities of available-for-sale securities are presented in the following table (in thousands): | |||||||||||||||||||||||||
November 2, 2013 | February 2, 2013 | ||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||
Due in one year or less | $ | 292,105 | $ | 292,286 | $ | 519,006 | $ | 519,537 | |||||||||||||||||
Due between one and five years | 698,295 | 699,657 | 627,769 | 629,991 | |||||||||||||||||||||
Due over five years | 34,945 | 31,953 | 36,970 | 34,278 | |||||||||||||||||||||
$ | 1,025,345 | $ | 1,023,896 | $ | 1,183,745 | $ | 1,183,806 | ||||||||||||||||||
For individual securities that are in an unrealized loss position, the fair value and gross unrealized loss for these securities aggregated by investment category and length of time in an unrealized position are presented in the following tables (in thousands): | |||||||||||||||||||||||||
November 2, 2013 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Corporate debt securities | $ | 177,743 | $ | (791 | ) | $ | — | $ | — | $ | 177,743 | $ | (791 | ) | |||||||||||
U.S. government and agency debt | 68,807 | (82 | ) | — | — | 68,807 | (82 | ) | |||||||||||||||||
Asset backed securities | 44,700 | (35 | ) | 1,917 | (17 | ) | 46,617 | (52 | ) | ||||||||||||||||
Foreign government and agency debt | 12,968 | (40 | ) | — | — | 12,968 | (40 | ) | |||||||||||||||||
Municipal debt securities | 275 | (1 | ) | — | — | 275 | (1 | ) | |||||||||||||||||
Auction rate securities | — | — | 16,158 | (2,992 | ) | 16,158 | (2,992 | ) | |||||||||||||||||
Total securities | $ | 304,493 | $ | (949 | ) | $ | 18,075 | $ | (3,009 | ) | $ | 322,568 | $ | (3,958 | ) | ||||||||||
February 2, 2013 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Corporate debt securities | $ | 141,915 | $ | (382 | ) | $ | — | $ | — | $ | 141,915 | $ | (382 | ) | |||||||||||
Asset backed securities | 43,882 | (64 | ) | — | — | 43,882 | (64 | ) | |||||||||||||||||
U.S. government and agency debt | 14,677 | (5 | ) | — | — | 14,677 | (5 | ) | |||||||||||||||||
Foreign government and agency debt | 4,319 | (1 | ) | — | — | 4,319 | (1 | ) | |||||||||||||||||
Auction rate securities | — | — | 16,769 | (2,681 | ) | 16,769 | (2,681 | ) | |||||||||||||||||
Total securities | $ | 204,793 | $ | (452 | ) | $ | 16,769 | $ | (2,681 | ) | $ | 221,562 | $ | (3,133 | ) | ||||||||||
Supplemental_Financial_Informa
Supplemental Financial Information | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Supplemental Financial Information | ' | ||||||||||||||||
Note 4. Supplemental Financial Information (in thousands) | |||||||||||||||||
November 2, | February 2, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Inventories: | |||||||||||||||||
Work-in-process | $ | 232,382 | $ | 140,805 | |||||||||||||
Finished goods | 148,030 | 109,615 | |||||||||||||||
Inventories | $ | 380,412 | $ | 250,420 | |||||||||||||
November 2, | February 2, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Property and equipment, net: | |||||||||||||||||
Machinery and equipment | $ | 557,477 | $ | 532,420 | |||||||||||||
Buildings | 144,320 | 144,320 | |||||||||||||||
Computer software | 95,233 | 89,548 | |||||||||||||||
Land | 53,373 | 53,373 | |||||||||||||||
Building improvements | 49,614 | 49,516 | |||||||||||||||
Leasehold improvements | 49,040 | 46,205 | |||||||||||||||
Furniture and fixtures | 27,639 | 25,301 | |||||||||||||||
Construction in progress | 1,634 | 5,333 | |||||||||||||||
978,330 | 946,016 | ||||||||||||||||
Less: Accumulated depreciation and amortization | (620,180 | ) | (573,045 | ) | |||||||||||||
Property and equipment, net | $ | 358,150 | $ | 372,971 | |||||||||||||
November 2, | February 2, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Other non-current assets: | |||||||||||||||||
Technology and other licenses | $ | 75,325 | $ | 81,523 | |||||||||||||
Deferred tax assets | 25,884 | 26,291 | |||||||||||||||
Investments in privately-held companies | 15,065 | 14,486 | |||||||||||||||
Prepaid land use rights | 13,822 | 14,056 | |||||||||||||||
Deposits | 13,331 | 10,451 | |||||||||||||||
Other | 18,952 | 18,078 | |||||||||||||||
Other non-current assets | $ | 162,379 | $ | 164,885 | |||||||||||||
Prepaid land use rights, which were previously included in property and equipment, have been reclassified to other non-current assets. The revision to the balance sheet at February 2, 2013 was not considered to be material and it had no impact on total assets, total liabilities, results of operations or cash flows. | |||||||||||||||||
November 2, | February 2, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Accrued liabilities: | |||||||||||||||||
Accrued rebates | $ | 57,984 | $ | 51,712 | |||||||||||||
Accrued legal expense | 13,701 | 14,754 | |||||||||||||||
Accrued royalties | 25,518 | 16,298 | |||||||||||||||
Technology license obligations | 11,510 | 9,865 | |||||||||||||||
Accrued share repurchases | — | 22,152 | |||||||||||||||
Other | 30,326 | 29,210 | |||||||||||||||
Accrued liabilities | $ | 139,039 | $ | 143,991 | |||||||||||||
November 2, | February 2, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Other non-current liabilities: | |||||||||||||||||
Technology license obligations | $ | 27,808 | $ | 34,270 | |||||||||||||
Long-term accrued employee compensation | 6,333 | 6,205 | |||||||||||||||
Other | 10,334 | 15,935 | |||||||||||||||
Other non-current liabilities | $ | 44,475 | $ | 56,410 | |||||||||||||
Accumulated other comprehensive income: | |||||||||||||||||
The changes in accumulated other comprehensive income by component are presented in the following tables (in thousands): | |||||||||||||||||
Unrealized Gain | Unrealized Gain | Unrealized Gain | Total | ||||||||||||||
(Loss) on | (Loss) on | (Loss) on Cash | |||||||||||||||
Marketable | Auction Rate | Flow Hedges | |||||||||||||||
Securities | Securities | ||||||||||||||||
Balance at February 2, 2013 | $ | 2,742 | $ | (2,681 | ) | $ | 1,087 | $ | 1,148 | ||||||||
Other comprehensive (loss) income before reclassifications | (276 | ) | (311 | ) | 3,103 | 2,516 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (923 | ) | — | (2,684 | ) | (3,607 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (1,199 | ) | (311 | ) | 419 | (1,091 | ) | ||||||||||
Balance at November 2, 2013 | $ | 1,543 | $ | (2,992 | ) | $ | 1,506 | $ | 57 | ||||||||
Unrealized Gain | Unrealized Gain | Unrealized Gain | Total | ||||||||||||||
(Loss) on | (Loss) on | (Loss) on Cash | |||||||||||||||
Marketable | Auction Rate | Flow Hedges | |||||||||||||||
Securities | Securities | ||||||||||||||||
Balance at January 28, 2012 | $ | 3,702 | $ | (1,285 | ) | $ | (1,641 | ) | $ | 776 | |||||||
Other comprehensive income (loss) before reclassifications | 2,097 | (112 | ) | (529 | ) | 1,456 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (1,703 | ) | — | 2,846 | 1,143 | ||||||||||||
Net current-period other comprehensive income (loss) | 394 | (112 | ) | 2,317 | 2,599 | ||||||||||||
Balance at October 27, 2012 | $ | 4,096 | $ | (1,397 | ) | $ | 676 | $ | 3,375 | ||||||||
The amounts reclassified from accumulated other comprehensive income by components are presented in the following table (in thousands): | |||||||||||||||||
November 2, 2013 | |||||||||||||||||
Affected Line Item in the | Three Months | Nine Months | |||||||||||||||
Statement of Operations | Ended | Ended | |||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Interest and other income, net | $ | 380 | $ | 923 | |||||||||||||
Cash flow hedges: | |||||||||||||||||
Cost of goods sold | 41 | 149 | |||||||||||||||
Research and development | 648 | 2,319 | |||||||||||||||
Selling and marketing | 53 | 198 | |||||||||||||||
General and administrative | 5 | 18 | |||||||||||||||
Total | $ | 1,127 | $ | 3,607 | |||||||||||||
Net income per share: | |||||||||||||||||
The Company reports both basic net income per share, which is based on the weighted average number of common shares outstanding, and diluted net income per share, which is based on the weighted average number of common shares outstanding and potentially dilutive common shares. The computations of basic and diluted net income per share are presented in the following table (in thousands, except per share amounts): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 103,156 | $ | 68,816 | $ | 218,191 | $ | 256,433 | |||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding: | 491,979 | 553,049 | 496,151 | 565,145 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Common share-based awards | 9,210 | 6,299 | 6,250 | 9,659 | |||||||||||||
Weighted average shares — diluted | 501,189 | 559,348 | 502,401 | 574,804 | |||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.21 | $ | 0.12 | $ | 0.44 | $ | 0.45 | |||||||||
Diluted | $ | 0.21 | $ | 0.12 | $ | 0.43 | $ | 0.45 | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Anti-dilutive potential common shares: | |||||||||||||||||
Weighted average shares outstanding from stock options | 43,167 | 42,149 | 39,854 | 27,560 | |||||||||||||
Weighted average exercise price | $ | 14.71 | $ | 15.43 | $ | 15.18 | $ | 17.67 | |||||||||
Anti-dilutive potential common shares for stock options are excluded from the calculation of diluted earnings per share for the periods reported above because either their exercise price exceeded the average market price during the period or certain stock options with exercise prices less than the average market price were determined to be anti-dilutive based on applying the treasury stock method. The anti-dilutive shares reported above also include shares from stock options that contain market conditions for vesting since the market value of the Company’s stock as of November 2, 2013 and October 27, 2012 was lower than the required market condition. For the three and nine months ended November 2, 2013, there were 2.7 million anti-dilutive shares from stock options that contain market conditions. For the corresponding three and nine months ended October 27, 2012, there were 3.0 million and 3.1 million anti-dilutive shares, respectively, from stock options that contain market conditions. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Derivative Financial Instruments | ' | ||||||||
Note 5. Derivative Financial Instruments | |||||||||
The Company manages some of its foreign currency exchange rate risk through the purchase of foreign currency exchange contracts that hedge against the short-term effect of currency fluctuations. The Company’s policy is to enter into foreign currency forward contracts with maturities generally less than 12 months that mitigate the effect of rate fluctuations on certain local currency denominated operating expenses. All derivative instruments are recorded at fair value in either prepaid expenses and other current assets or accrued liabilities. The Company reports cash flows from derivative instruments in cash flows from operating activities. The Company uses quoted prices to value its derivative instruments. | |||||||||
The notional amounts of outstanding foreign currency forward contracts were as follows (in thousands): | |||||||||
Buy Contracts | |||||||||
November 2, | February 2, | ||||||||
2013 | 2013 | ||||||||
Euro | $ | 5,718 | $ | — | |||||
Israeli shekel | 58,898 | 38,249 | |||||||
Swedish krona | 3,968 | — | |||||||
$ | 68,584 | $ | 38,249 | ||||||
Cash Flow Hedges. The Company designates and documents its foreign currency forward exchange contracts as cash flow hedges for certain operating expenses denominated in Israeli shekels. The Company evaluates and calculates the effectiveness of each hedge at least quarterly. The effective change is recorded in accumulated other comprehensive income and is subsequently reclassified to operating expense when the hedged expense is recognized. Ineffectiveness is recorded in interest and other income, net. | |||||||||
Other Foreign Currency Forward Contracts. The Company enters into foreign currency forward exchange contracts to hedge certain assets and liabilities denominated in various foreign currencies that it does not designate as hedges for accounting purposes. The maturities of these contracts are generally less than 12 months. Gains or losses arising from the remeasurement of these contracts to fair value each period are recorded in interest and other income, net. | |||||||||
The fair value of foreign currency exchange contracts was not significant as of any period presented. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 6. Fair Value Measurements | |||||||||||||||||
Fair value is an exit price representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | |||||||||||||||||
Level 1—Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. | |||||||||||||||||
Level 2—Include other inputs that are directly or indirectly observable in the marketplace. | |||||||||||||||||
Level 3—Unobservable inputs that are supported by little or no market activity. | |||||||||||||||||
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||||||
The Company’s Level 1 assets include institutional money-market funds that are classified as cash equivalents and marketable investments in U.S. government and agency debt, which are valued primarily using quoted market prices. The Company’s Level 2 assets include its marketable investments in time deposits, corporate debt securities, foreign government and agency debt, municipal debt securities and asset backed securities as the market inputs to value these instruments consist of market yields, reported trades and broker/dealer quotes, which are corroborated with observable market data. In addition, forward contracts and the severance pay fund are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Company’s Level 3 assets include its investments in auction rate securities, which are classified within Level 3 because there are currently no active markets for the auction rate securities and consequently the Company is unable to obtain independent valuations from market sources. Therefore, the auction rate securities are valued using a discounted cash flow model. Some of the inputs to the cash flow model are unobservable in the market. The total amount of assets measured using Level 3 valuation methodologies represented 0.3% of total assets as of November 2, 2013. | |||||||||||||||||
The tables below set forth, by level, the Company’s assets that were accounted for at fair value as of November 2, 2013 and February 2, 2013. The tables do not include assets and liabilities that are measured at historical cost or any basis other than fair value (in thousands): | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Portion of Carrying | ||||||||||||||
Value Measured at | |||||||||||||||||
Fair Value | |||||||||||||||||
at November 2, 2013 | |||||||||||||||||
Items measured at fair value on a recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 8,378 | $ | — | $ | — | $ | 8,378 | |||||||||
Time deposits | — | 216,359 | — | 216,359 | |||||||||||||
Municipal debt securities | — | 5,700 | — | 5,700 | |||||||||||||
Corporate debt securities | — | 1,600 | — | 1,600 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S. government and agency debt | 309,263 | — | — | 309,263 | |||||||||||||
Corporate debt securities | — | 589,492 | — | 589,492 | |||||||||||||
Asset backed securities | — | 74,444 | — | 74,444 | |||||||||||||
Foreign government and agency debt | — | 20,292 | — | 20,292 | |||||||||||||
Municipal debt securities | — | 14,247 | — | 14,247 | |||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||
Forward contracts | — | 1,618 | — | 1,618 | |||||||||||||
Long-term investments: | |||||||||||||||||
Auction rate securities | — | — | 16,158 | 16,158 | |||||||||||||
Other non-current assets: | |||||||||||||||||
Severance pay fund | — | 2,104 | — | 2,104 | |||||||||||||
Total assets | $ | 317,641 | $ | 925,856 | $ | 16,158 | $ | 1,259,655 | |||||||||
Level 1 | Level 2 | Level 3 | Portion of Carrying | ||||||||||||||
Value Measured at | |||||||||||||||||
Fair Value | |||||||||||||||||
at February 2, 2013 | |||||||||||||||||
Items measured at fair value on a recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. government and agency debt | $ | 27,029 | $ | — | $ | — | $ | 27,029 | |||||||||
Money market funds | 21,523 | — | — | 21,523 | |||||||||||||
Time deposits | — | 119,874 | — | 119,874 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S. government and agency debt | 318,479 | — | — | 318,479 | |||||||||||||
Corporate debt securities | — | 579,624 | — | 579,624 | |||||||||||||
Time deposits | — | 188,000 | — | 188,000 | |||||||||||||
Asset backed securities | — | 76,615 | — | 76,615 | |||||||||||||
Foreign government and agency debt | — | 4,319 | — | 4,319 | |||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||
Forward contracts | — | 1,144 | — | 1,144 | |||||||||||||
Long-term investments: | |||||||||||||||||
Auction rate securities | — | — | 16,769 | 16,769 | |||||||||||||
Other non-current assets: | |||||||||||||||||
Severance pay fund | — | 1,977 | — | 1,977 | |||||||||||||
Total assets | $ | 367,031 | $ | 971,553 | $ | 16,769 | $ | 1,355,353 | |||||||||
The following table summarizes the change in fair value for Level 3 items (in thousands): | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
November 2, | October 27, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Beginning balance | $ | 16,769 | $ | 23,215 | |||||||||||||
Sales and redemptions | (300 | ) | (5,000 | ) | |||||||||||||
Unrealized losses included in accumulated other comprehensive income | (311 | ) | (112 | ) | |||||||||||||
Ending balance | $ | 16,158 | $ | 18,103 | |||||||||||||
Goodwill_and_Acquired_Intangib
Goodwill and Acquired Intangible Assets, Net | 9 Months Ended | ||||||||||||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||||||||||||
Goodwill and Acquired Intangible Assets, Net | ' | ||||||||||||||||||||||||||
Note 7. Goodwill and Acquired Intangible Assets, Net | |||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||
The following table summarizes the activity related to the carrying value of goodwill (in thousands): | |||||||||||||||||||||||||||
Balance at February 2, 2013 | $ | 2,032,138 | |||||||||||||||||||||||||
Additions due to business combinations | 400 | ||||||||||||||||||||||||||
Balance at November 2, 2013 | $ | 2,032,538 | |||||||||||||||||||||||||
Acquired Intangible Assets, Net | |||||||||||||||||||||||||||
The carrying amount of acquired intangible assets, net, are as follows (in thousands): | |||||||||||||||||||||||||||
November 2, 2013 | February 2, 2013 | ||||||||||||||||||||||||||
Range of | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
Useful Lives | Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||||
Amounts | and | Amount | Amounts | and | Amount | ||||||||||||||||||||||
Write-Offs | Write-Offs | ||||||||||||||||||||||||||
Purchased technology | 4 - 7 years | $ | 54,690 | $ | (25,313 | ) | $ | 29,377 | $ | 54,690 | $ | (18,552 | ) | $ | 36,138 | ||||||||||||
Core technology | 5 - 8 years | 138,650 | (137,793 | ) | 857 | 138,650 | (123,298 | ) | 15,352 | ||||||||||||||||||
Trade names | 5 years | 1,300 | (503 | ) | 797 | 1,300 | (308 | ) | 992 | ||||||||||||||||||
Customer intangibles | 5 - 7 years | 89,400 | (72,445 | ) | 16,955 | 89,400 | (61,927 | ) | 27,473 | ||||||||||||||||||
IPR&D | * | 13,086 | — | 13,086 | 9,700 | — | 9,700 | ||||||||||||||||||||
Total intangible assets, net | $ | 297,126 | $ | (236,054 | ) | $ | 61,072 | $ | 293,740 | $ | (204,085 | ) | $ | 89,655 | |||||||||||||
* | Upon completion of projects, the related in-process research and development (“IPR&D”) assets will be amortized over its estimated useful life. If any of the projects are abandoned or the forecast of the project indicates that the fair value is less than the carrying amount, the Company will be required to write down the related IPR&D asset. | ||||||||||||||||||||||||||
Based on the identified intangible assets recorded at November 2, 2013, the future amortization expense excluding IPR&D for the next five fiscal years is as follows (in thousands): | |||||||||||||||||||||||||||
Fiscal year | |||||||||||||||||||||||||||
Remainder of fiscal 2014 | $ | 3,809 | |||||||||||||||||||||||||
2015 | 14,942 | ||||||||||||||||||||||||||
2016 | 12,203 | ||||||||||||||||||||||||||
2017 | 11,018 | ||||||||||||||||||||||||||
2018 | 5,590 | ||||||||||||||||||||||||||
Thereafter | 424 | ||||||||||||||||||||||||||
$ | 47,986 | ||||||||||||||||||||||||||
Restructuring
Restructuring | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Restructuring | ' | ||||||||||||||||
Note 8. Restructuring | |||||||||||||||||
The Company recorded a $4.2 million charge primarily related to the closure of two sites in the three months ended November 2, 2013. This amount included $2.8 million of severance costs, $1.3 million for other exit-related costs in connection with vacating three facilities and $0.1 million for the write off of equipment. All activities related to the closure of the two sites were substantially completed by the end of the quarter. | |||||||||||||||||
During the nine months ended November 2, 2013, the Company also continued to make payments and incur on-going operating expenses related to vacated facilities under previous restructure actions. | |||||||||||||||||
The following table presents details of restructuring charges by functional line item (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Research and development | $ | 2,886 | $ | 2 | $ | 2,886 | $ | 46 | |||||||||
Selling and marketing | 795 | (3 | ) | 795 | (3 | ) | |||||||||||
General and administrative | 527 | 130 | 933 | 1,060 | |||||||||||||
$ | 4,208 | $ | 129 | $ | 4,614 | $ | 1,103 | ||||||||||
The following table sets forth a reconciliation of the beginning and ending restructuring liability balances by each major type of costs associated with the restructuring charges for the nine months ended November 2, 2013 (in thousands): | |||||||||||||||||
Severance | Facilities | Other | Total | ||||||||||||||
and Related | and Related | Exit-Related | |||||||||||||||
Costs | Costs | Costs | |||||||||||||||
Balance at February 2, 2013 | $ | — | $ | 2,855 | $ | — | $ | 2,855 | |||||||||
Restructuring charges | 2,786 | 1,554 | 213 | 4,553 | |||||||||||||
Net cash payments | (642 | ) | (1,323 | ) | (182 | ) | (2,147 | ) | |||||||||
Balance at November 2, 2013 | $ | 2,144 | $ | 3,086 | $ | 31 | $ | 5,261 | |||||||||
The severance costs included in the table above are expected to be paid in the fourth quarter of fiscal 2014. The facility and related costs primarily represent payments under lease obligations of vacated facilities associated with the closure of two sites in the three months ended November 2, 2013 which are expected to be paid through fiscal 2015. | |||||||||||||||||
The balance at November 2, 2013 for facility and related costs also includes remaining payments under lease obligations related to vacated facilities under previous restructure actions which are expected to be paid through fiscal 2018. |
Income_Tax
Income Tax | 9 Months Ended |
Nov. 02, 2013 | |
Income Tax | ' |
Note 9. Income Tax | |
The income tax benefit for the three months ended November 2, 2013 included the current income tax liability of $4.3 million, which was offset by a net reduction in unrecognized tax benefits of $7.3 million, a $2.5 million tax benefit due to return-to-provision adjustments upon the filing of tax returns and a $0.9 million tax benefit from an increase in the deferred tax asset of a non-U.S. entity due to a change in its statutory tax rate. The net reduction in unrecognized tax benefits arose from the expiration of the statute of limitations, less an increase in current unrecognized tax benefit estimates. | |
The income tax benefit for the nine months ended November 2, 2013 included the current income tax liability of $11.3 million plus $0.7 million in settlements of audits in non-U.S. jurisdictions, which were offset by a net reduction in unrecognized tax benefits of $23.8 million, a $2.5 million tax benefit due to return-to-provision adjustments upon filing of tax returns in three months ended November 2, 2013 and a $0.9 million tax benefit from an increase in the deferred tax asset of a non-U.S. entity due to a change in its statutory tax rate in the three months ended November 2, 2013. The net reduction in unrecognized tax benefits primarily arose from the expiration of statute of limitations in non-U.S. jurisdictions and from the settlement of two audits in non-U.S. jurisdictions (one for $3.5 million and the other for $4.1 million), less an increase in current unrecognized tax estimates. | |
The income tax provision for the three and nine months ended October 27, 2012 included the current income tax liability of $5.9 million and $14.5 million, respectively, which were partially offset by a net reduction in unrecognized tax benefits of $5.5 million in the three months ended October 27, 2012 and $11.5 million in the nine months ended October 27, 2012. These net reductions in unrecognized tax benefits arose primarily from the expiration of the statute of limitations in non-U.S. jurisdictions, less an increase in current unrecognized tax benefit estimates. | |
It is reasonably possible that the amount of unrecognized tax benefits could increase or decrease significantly due to changes in tax law in various jurisdictions, new tax audits and changes in the U.S. dollar as compared to foreign currencies within the next 12 months. Excluding these factors, uncertain tax positions may decrease by as much as $20 million from the lapse of the statutes of limitation in various jurisdictions during the next 12 months. | |
The Company operates under tax holidays in certain countries, which may be extended if certain additional requirements are satisfied. The tax holidays are conditional upon meeting certain employment and investment thresholds. The impact of these tax holidays decreased foreign taxes by $14.9 million for the nine months ended November 2, 2013. The benefit of the tax holidays on net income per share was less than $0.01 per share for the nine months ended November 2, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 02, 2013 | |
Commitments and Contingencies | ' |
Note 10. Commitments and Contingencies | |
Purchase Commitments | |
Under the Company’s manufacturing relationships with its foundry partners, cancellation of all outstanding purchase orders are allowed but require payment of all costs and expenses incurred through the date of cancellation. As of November 2, 2013, these foundries had incurred approximately $240.2 million of manufacturing costs and expenses relating to the Company’s outstanding purchase orders. | |
Intellectual Property Indemnification | |
The Company has agreed to indemnify certain customers for claims made against the Company’s products, where such claims allege infringement of third party intellectual property rights, including, but not limited to, patents, registered trademarks, and/or copyrights. Under the aforementioned indemnification clauses, the Company may be obligated to defend the customer and pay for the damages awarded against the customer under an infringement claim as well as the attorneys’ fees and costs. The Company’s indemnification obligations generally do not expire after termination or expiration of the agreement containing the indemnification obligation. Generally, there are limits on and exceptions to the Company’s potential liability for indemnification. The Company cannot estimate the amount of potential future payments, if any, that it might be required to make as a result of these agreements. The maximum potential amount of any future payments that the Company could be required to make under these indemnification obligations could be significant. | |
Contingencies | |
The Company and certain of its subsidiaries are currently parties to various legal proceedings, including those noted in this section. The legal proceedings and claims described below could result in substantial costs and could divert the attention and resources of the Company’s management. Litigation is subject to inherent uncertainties and unfavorable rulings could occur. An unfavorable ruling in litigation could require the Company to pay damages, one-time license fees or ongoing royalty payments, and could prevent the Company from manufacturing or selling some of its products or limit or restrict the type of work that employees involved in such litigation may perform for the Company, any of which could adversely affect financial results in future periods. The Company believes that its products do not infringe valid and enforceable claims and it will continue to conduct a vigorous defense in these proceedings. However, there can be no assurance that these matters will be resolved in a manner that is not adverse to the Company’s business, financial condition, results of operations or cash flows. | |
As of November 2, 2013, the Company has recorded a total charge of $10.4 million related to certain legal proceedings described below in this section. The amount recorded does not relate to the litigation with Carnegie Mellon University (“CMU”). Other than for the matters that the Company has recognized in the consolidated financial statements, it has not recorded any amounts for contingent losses associated with the matters described below based on its belief that losses, while reasonably possible, are not probable. Unless otherwise stated, the Company is currently unable to predict the final outcome of these lawsuits and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. | |
Carnegie Mellon University Litigation. On March 6, 2009, CMU filed a complaint in the U.S. District Court for the Western District of Pennsylvania naming Marvell Semiconductor, Inc. (“MSI”) and the Company as defendants and alleging patent infringement. CMU has asserted U.S. Patent Nos. 6,201,839 and 6,438,180 (collectively, the “CMU patents in suit”), which relate to read-channel integrated circuit devices and the hard disk drive (“HDD”) incorporating such devices. A jury trial began on November 26, 2012. On December 26, 2012, a jury delivered a verdict that found the CMU patents in suit were literally and willfully infringed and valid, and awarded past damages in the amount of $1.17 billion. Due to the finding of willfulness during post trial proceedings, the judge could enhance the damages by an amount up to triple the damages awarded by the jury at trial. In addition, CMU has disclosed in its post trial motions that it is seeking pre-judgment interest up to $322 million, post-judgment interest, attorneys’ fees, and an injunction and/or ongoing royalties. Post-trial motions were heard on May 1 and 2, 2013. On June 26, 2013, the District Court denied CMU’s post-trial motion for attorney fees without prejudice. On August 23, 2013, the District Court denied the Company’s motion for mistrial. On September 23, 2013, the District Court denied the Company’s motion for judgment as a matter of law or a new trial on non-infringement, invalidity and other non-damages issue as well as the Company’s motion for reduced damages. On the same day, the District Court granted-in-part CMU’s motion for a finding of willful infringement and enhanced damages, reserving its further rulings on the motion for a forthcoming opinion. On December 6, 2013, CMU filed a motion to permit registration of judgment and a motion for supplemental relief including a request to enjoin future share repurchases, any leveraged buyout or similar asset leveraging transaction, and dividends (including the dividend scheduled for December 23, 2013), in the absence of a court approved bond or other security. CMU requested expedited briefing but the District Court has not set a briefing schedule for CMU’s latest motions, and has yet to rule on the Company’s laches defense as well as CMU’s injunction motion. The Company expects the District Court to issue its final judgment at any time. | |
The Company and MSI believe that the evidence and the law do not support the jury’s findings of infringement, validity and the award of damages and do not believe a material loss is probable. The Company believes that there are strong grounds for appeal and the Company and MSI intend to vigorously challenge the District Court’s judgment via an appeal to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. The Company believes the low end of the possible range of loss is zero, but it cannot reasonably estimate the upper range of the possible loss, as a number of factors (including finalization of the post-trial motions at the District Court) could significantly change the assessment of damages. | |
Jasmine Networks Litigation. On September 12, 2001, Jasmine Networks, Inc. (“Jasmine”) filed a lawsuit in the Santa Clara County Superior Court alleging claims against MSI and three of its officers for allegedly improperly obtaining and using information and technologies during the course of the negotiations with its personnel regarding the potential acquisition of certain Jasmine assets by MSI. | |
The case proceeded to trial on September 20, 2010. On November 24, 2010, a Santa Clara County jury returned a verdict in favor of MSI on all claims. On January 7, 2011, the court entered judgment in MSI’s favor. Pursuant to California Civil Procedure provisions, Jasmine filed motions for a new trial and for a judgment notwithstanding the verdict. These motions were heard by the court on February 25, 2011 and denied in written orders. Jasmine has appealed and MSI is contesting the appeal vigorously. Oral arguments on the appeal were heard on June 18, 2013. On July 17, 2013, the Court of Appeals unanimously affirmed judgment in favor of MSI. It is unknown whether Jasmine will appeal to the California Supreme Court. The deadline for Jasmine to appeal to the California Supreme Court passed on August 26, 2013 without Jasmine taking any further action. | |
USEI Litigation. On October 9, 2009, U.S. Ethernet Innovations, LLC (“USEI”) filed a complaint in the U.S. District Court for the Eastern District of Texas, in which USEI has accused a number of system manufacturers, including the Company’s customers, of patent infringement (the “USEI litigation”). Specifically, USEI has asserted that these customers infringe U.S. Patent Nos. 5,307,459, 5,434,872, 5,732,094 and 5,299,313, which relate to Ethernet technologies. The complaint seeks unspecified damages and an injunction. | |
On May 4, 2010, MSI filed a motion to intervene in the USEI litigation, which was granted on May 19, 2010. On July 13, 2010, the District Court issued an order granting the defendants’ motion to transfer the action to the U.S. District Court for the Northern District of California; the case was formally transferred on August 23, 2010. On September 14, 2011, USEI withdrew its allegations against MSI for the ‘459 patent. The court issued a first claim construction ruling on January 31, 2012, and a supplemental claim construction ruling on August 29, 2012. On August 16, 2013, the District Court granted defendants’ summary judgment motion to preclude the plaintiff from recovering certain pre-suit damages. Trial is scheduled for January 5, 2015. | |
Lake Cherokee Patent I Litigation. On June 30, 2010, Lake Cherokee Hard Drive Technologies, L.L.C. (“Lake Cherokee”) filed a complaint in the U.S. District Court for the Eastern District of Texas. The complaint alleges infringement of U.S. Patent Nos. 5,844,738 and 5,978,162 (collectively, the “Lake Cherokee patents”). The Lake Cherokee patents purportedly relate to read-channel integrated circuit devices, and to certain HDD products incorporating such devices. A claim construction ruling was issued on August 6, 2012. Lake Cherokee’s damages claim, which excluded non-U.S. related sales as a result of the District Court’s summary judgment ruling, was approximately $193 million at the start of trial. The case proceeded to trial on August 12, 2013. On August 16, 2013, an Eastern District of Texas jury returned a verdict and unanimously found that MSI did not infringe the Lake Cherokee patents. On the same day, the Court entered judgment in MSI’s favor. Lake Cherokee has since moved for a new trial. | |
Lake Cherokee II Patent Litigation. On September 5, 2013, Lake Cherokee filed suit in the U.S. District Court for the Eastern District of Texas against Marvell Asia Pte., Ltd. (“MAPL”) and several of the Company’s storage customers, alleging infringement of U.S. Patent Nos. 5,844,738 and 5,978,162 (the same Lake Cherokee patents found not infringed in Lake Cherokee I). | |
Lake Cherokee III Patent Litigation. On September 25, 2013, Lake Cherokee filed suit in the U.S. District Court for the Eastern District of Texas against MSI, MAPL and two of the Company’s customers, alleging infringement of U.S. Patent No. 5,583,706, which purportedly relates to certain HDD related technologies. MSI answered the complaint on November 29, 2013. | |
Progressive Semiconductor Solutions Patent Litigation. On September 30, 2013, Progressive Semiconductor Solutions LLC (“PSS”) filed a complaint in the Central District of California against MSI, asserting infringement of U.S. Patent Nos. 6,473,349 and 6,862,208 (collectively, the “PSS patents”). The PSS patents purportedly relate to certain memory devices. On November 19, 2013, PSS filed an amended complaint. MSI answered the first amended complaint on November 22, 2013. | |
APT Patent Litigations. On January 18, 2011, Advanced Processor Technologies, LLC (“APT”), a subsidiary of Acacia Research Corp., filed a complaint in the U.S. District Court for the Eastern District of Texas. The complaint names MSI and eight other defendants and alleged infringement of U.S. Patent Nos. 6,047,354 and 5,796,978. In April 2013, the parties reached an agreement to dismiss all claims and counterclaims. On June 25, 2013, MSI was dismissed from the cases. The resolution did not have a significant impact on the Company’s financial statements. | |
MOSAID Litigation. On March 16, 2011, MOSAID Technologies Inc. filed suit in the U.S. District Court for the Eastern District of Texas against MSI and 16 other companies. The complaint alleges that defendants’ products, which operate in compliance with various IEEE 802.11 standards, infringe the six asserted patents (U.S. Patent Nos. 5,131,006; 5,151,920; 5,422,887; 5,706,428; 6,563,768; 6,992,972). MSI filed its answer and counterclaims on June 9, 2011. On March 28, 2012, MSI and other defendants filed a motion to transfer, which was denied. A claim construction hearing was held on April 16, 2013 and a claim construction ruling was issued by the magistrate judge on April 22, 2013. On June 3, 2013, the District Court issued an order denying plaintiff’s motion for reconsideration and adopted the magistrate’s claim construction ruling. On September 20, 2013, MSI and MOSAID entered a license agreement that settled the pending disputes between the parties, and on October 11, 2013, MSI was dismissed from the case. The settlement did not have a significant impact on the Company’s financial statements. | |
Azure Networks Litigation. On March 22, 2011, Azure Networks, LLC and Tri-County Excelsior Foundation filed suit in the U.S. District Court for the Eastern District of Texas against MSI and eight other companies. The Complaint asserts U.S. Patent No. 7,756,129 against MSI’s Bluetooth products. MSI filed its answer and counterclaims on July 20, 2011. On November 2, 2012, defendants filed a motion for summary judgment of invalidity, which was denied. A claim construction hearing was held on December 20, 2012. On January 15, 2013, the magistrate judge issued a claim construction ruling. On May 20, 2013, the District Court issued an order denying plaintiff’s motion for reconsideration and adopted the magistrate judge’s claim construction ruling. On May 30, 2013, the District Court entered a judgment of non-infringement. On June 24, 2013, Azure appealed, and the appeal has been briefed. | |
Power Management Systems Litigation. On August 22, 2011, Power Management Systems LLC (“PMS”), a subsidiary of Acacia Research Corp., filed a complaint against the Company’s subsidiary Marvell Semiconductor, Ltd. (“MSL”) and other defendants, in the U.S. District Court for the District of Delaware. The complaint asserts U.S. Patent No. 5,504,909, which relates to a power management apparatus, against various products. The complaint seeks unspecified damages. On October 17, 2011, PMS amended its complaint by substituting MSL with MSI. MSI filed its answer and counterclaims on November 4, 2011. A claim construction hearing was held on January 18, 2013, and a ruling was issued on May 30, 2013. On June 14, 2013, the District Court entered a judgment of non-infringement. On June 17, 2013, PMS appealed, and the appeal has been briefed. | |
HSM/TPL Litigation. On September 1, 2011, HSM Portfolio, LLC and Technology Properties Limited, LLC filed a complaint against the Company and MSL in the U.S. District Court for the District of Delaware. The complaint also named numerous other defendants. The complaint asserted U.S. Patent No. 5,030,853, relating to high speed logic and memory circuitry, against various products. The complaint sought unspecified damages. On January 9, 2012, HSM/TPL filed an amended complaint adding MSI to the case. On February 15, 2012, the Company and MSL were dismissed from the case. On June 10, 2013, MSI and HSM/TPL reached a settlement and on June 25, 2013, MSI was dismissed from the case. The settlement did not have a significant impact on the Company’s financial statements. | |
France Telecom Litigation. On June 26, 2012, France Telecom S.A. (“France Telecom”) filed a complaint against MSI in the U.S. District Court for the Southern District of New York. The complaint asserts U.S. Patent No. 5,446,747 against MSI’s communications processors and thin modems. The complaint seeks unspecified damages as well as injunctive relief. MSI answered the complaint on July 18, 2012 and August 1, 2012. On July 30, 2012, MSI filed a motion to transfer the lawsuit to the U.S. District Court for the Northern District of California. On September 17, 2012, the Court granted MSI’s motion and transferred the case to the Northern District of California. A claim construction hearing is set for December 13, 2013. Trial is scheduled for May 12, 2014. | |
Freescale Litigation. On July 6, 2012, Freescale Semiconductor, Inc. (“Freescale”) filed a complaint against MSI in the U.S. District Court for the Western District of Texas. The complaint asserts U.S. Patent Nos. 6,920,316, 5,825,640, 5,943,274, 5,467,455 and 7,927,927 against certain of the Company’s integrated circuits and/or chipsets. The complaint seeks unspecified damages and a permanent injunction. Freescale filed an amended complaint on January 14, 2013, and withdrew its assertion of U.S. Patent No. 5,825,640; MSI filed its answer to the amended complaint on February 4, 2013. This case has been consolidated for pre-trial purposes with nine other pending cases. A claim construction hearing was held on October 24, 2013, and will be completed on December 13, 2013. No trial date has been set. | |
On January 4, 2013, three of the Company’s subsidiaries, MSI, Marvell International Ltd. and Marvell World Trade Ltd., filed a complaint against Freescale in the U.S. District Court for the Western District of Texas, and filed an amended complaint on January 14, 2013. The amended complaint alleges that Freescale infringes U.S. Patents Nos. 6,903,448 and 7,379,718. A claim construction hearing is scheduled for December 13, 2013. No trial date has been set. | |
Surety Bond | |
The Company plans to appeal the final judgment issued by the District Court in the CMU litigation, regardless of the dollar amount of the final judgment. The Company anticipates that it will need a surety bond in connection with the Company’s appeal of the judgment to the U.S. Court of Appeals for the Federal Circuit in Washington D.C., or possibly sooner while rulings on the remaining post-trial motions are pending. During October 2013, the Company entered into indemnity agreements with a consortium of insurers that would provide financial assurance that each of the insurers will be indemnified by the Company should a loss occur under a surety bond. The Company expects that under a surety bond, the surety companies would agree to guarantee to the District Court in Pittsburgh the Company’s payment of a specific amount, to be determined. Under a surety bond, cash, cash equivalents, and short term investments may need to be posted as collateral and classified as restricted cash in future filings. As of November 2, 2013 and as of the date of this filing, no surety bond has been issued. Therefore, these indemnity agreements have had no impact to the Company’s Condensed Consolidated Balance Sheets as of November 2, 2013. | |
Indemnities, Commitments and Guarantees | |
During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These indemnities may include intellectual property indemnities to the Company’s customers in connection with the sales of its products, indemnities for liabilities associated with the infringement of other parties’ technology based upon the Company’s products, indemnities for general commercial obligations, indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease, and indemnities to directors and officers of the Company to the maximum extent permitted under the laws of Bermuda. In addition, the Company has contractual commitments to various customers, which could require the Company to incur costs to repair an epidemic defect with respect to its products outside of the normal warranty period if such defect were to occur. The duration of these indemnities, commitments and guarantees varies, and in certain cases, is indefinite. Some of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential future payments that the Company could be obligated to make. In general, the Company does not record any liability for these indemnities, commitments and guarantees in the accompanying consolidated balance sheets as the amounts cannot be reasonably estimated and are not considered probable. The Company does, however, accrue for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is probable. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | ||||||||||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||||||||||
Note 11. Shareholders’ Equity | |||||||||||||||||||||||||
Stock Plans | |||||||||||||||||||||||||
Activity under the Company’s stock option plans for the nine months ended November 2, 2013 is summarized below (in thousands, except per share amounts): | |||||||||||||||||||||||||
Time-Based Options | Market-Based Options | Total | |||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||
Exercise Price | Exercise Price | Exercise Price | |||||||||||||||||||||||
Balance at February 2, 2013 | 49,637 | $ | 13.28 | 2,759 | $ | 15.43 | 52,396 | $ | 13.39 | ||||||||||||||||
Granted | 18,763 | $ | 10.79 | — | $ | — | 18,763 | $ | 10.79 | ||||||||||||||||
Exercised | (7,275 | ) | $ | 8.36 | — | $ | — | (7,275 | ) | $ | 8.36 | ||||||||||||||
Canceled/Forfeited | (2,631 | ) | $ | 15.22 | (53 | ) | $ | 15.43 | (2,684 | ) | $ | 15.23 | |||||||||||||
Balance at November 2, 2013 | 58,494 | $ | 13.01 | 2,706 | $ | 15.43 | 61,200 | $ | 13.11 | ||||||||||||||||
Vested or expected to vest at November 2, 2013 | 54,756 | $ | 13.11 | ||||||||||||||||||||||
Exercisable at November 2, 2013 | 33,914 | $ | 13.85 | ||||||||||||||||||||||
For time-based stock options vested and expected to vest at November 2, 2013, the aggregate intrinsic value was $66.5 million and the weighted average remaining contractual term was 5.6 years. For time-based stock options exercisable at November 2, 2013, the aggregate intrinsic value was $46.1 million and the weighted average remaining contractual term was 3.5 years. The aggregate intrinsic value of stock options exercised during the three months ended November 2, 2013 and October 27, 2012 was $5.6 million and $6.0 million, respectively. The aggregate intrinsic value of stock options exercised during the nine months ended November 2, 2013 and October 27, 2012 was $21.7 million and $29.7 million, respectively. There was no aggregate intrinsic value for market-based stock options at November 2, 2013 and the weighted average remaining contractual term of market-based stock options vested and expected to reach the end of the vesting period at November 2, 2013 was 7.5 years. The Company’s closing stock price of $12.02 as reported on the NASDAQ Global Select Market for all in-the-money options as of November 1, 2013 was used to calculate the aggregate intrinsic value. | |||||||||||||||||||||||||
As of November 2, 2013, the unamortized compensation expense for time-based stock options was $71.4 million and market-based stock options was $0.7 million. The unamortized compensation expense for time-based and market-based stock options will be amortized on a straight-line basis and is expected to be recognized over a weighted-average period of 3.1 years and 0.2 years, respectively. | |||||||||||||||||||||||||
Included in the following table is activity related to the non-vested portion of the restricted stock units as follows (in thousands, except for share prices): | |||||||||||||||||||||||||
Restricted Stock | Weighted Average | ||||||||||||||||||||||||
Units | Grant Date | ||||||||||||||||||||||||
Outstanding | Fair Value | ||||||||||||||||||||||||
Balance at February 2, 2013 | 12,739 | $ | 15.78 | ||||||||||||||||||||||
Granted | 3,509 | $ | 10.56 | ||||||||||||||||||||||
Vested | (3,729 | ) | $ | 16.31 | |||||||||||||||||||||
Canceled/Forfeited | (902 | ) | $ | 14.4 | |||||||||||||||||||||
Balance at November 2, 2013 | 11,617 | $ | 14.14 | ||||||||||||||||||||||
The aggregate intrinsic value of restricted stock units expected to vest as of November 2, 2013 was $127.8 million. The number of restricted stock units that are expected to vest is 10.6 million shares. | |||||||||||||||||||||||||
As of November 2, 2013, unamortized compensation expense related to restricted stock units was $106.0 million. The unamortized compensation expense for restricted stock units will be amortized on a straight-line basis and is expected to be recognized over a weighted-average period of 1.9 years. | |||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||
During the three months ended November 2, 2013 and October 27, 2012, the Company issued no shares under the 2000 Employee Stock Purchase Plan, as amended and restated (the “ESPP”). A total of 5.0 million shares were issued at a weighted-average price of $7.34 per share in the nine months ended November 2, 2013 and a total of 3.3 million shares were issued at a weighted-average price of $10.40 per share under the ESPP in the nine months ended October 27, 2012. As of November 2, 2013, there was $27.9 million of unrecognized compensation cost related to the ESPP. | |||||||||||||||||||||||||
Share Repurchase Program | |||||||||||||||||||||||||
The Company repurchased 6.1 million of its common shares for $71.3 million in cash during the three months ended November 2, 2013 and 22.9 million of its common shares for $203.0 million in cash during the three months ended October 27, 2012. The Company repurchased 33.2 million common shares for $354.1 million in cash during the nine months ended November 2, 2013 and 57.3 million common shares for $676.5 million in cash during the nine months ended October 27, 2012.The repurchased shares were retired immediately after the repurchases were completed. The Company records all repurchases, as well as investment purchases and sales, based on trade date. As of November 2, 2013, a total of 216.9 million cumulative shares have been repurchased under the Company’s share repurchase program for a total $2.7 billion in cash and there was $258.4 million remaining available for future share repurchases. | |||||||||||||||||||||||||
Dividends | |||||||||||||||||||||||||
Cash dividends of $0.06 per share were paid for a total of $29.6 million in the three months ended November 2, 2013 and cash dividends of $0.18 per share were paid for a total of $89.6 million in the nine months ended November 2, 2013. Cash dividends of $0.06 per share were paid for a total of $33.5 million in the three months ended October 27, 2012 and cash dividends of $0.12 per share were paid for a total of $67.0 million in the nine months ended October 27, 2012. | |||||||||||||||||||||||||
On November 21, 2013, the Company announced that its board of directors declared a cash dividend of $0.06 per share to be paid on December 23, 2013 to shareholders of record as of December 12, 2013. | |||||||||||||||||||||||||
Future payment of a regular quarterly cash dividend on the Company’s common shares will be subject to, among other things, the best interests of the Company, the Company’s results of operations, cash balances and future cash requirements, financial condition, statutory requirements under Bermuda law and other factors that the Company’s board of directors may deem relevant. The Company’s dividend payments may change from time to time, and the Company cannot provide assurance that it will continue to declare dividends at all or in any particular amounts. In addition, developments in on-going litigation could affect the Company’s ability to make a dividend payment on a declared payment date until such time as the Company can meet statutory requirements under Bermuda law. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
Note 12. Share-Based Compensation | |||||||||||||||||
The following table presents details of share-based compensation expenses by functional line item (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of goods sold | $ | 2,531 | $ | 1,944 | $ | 6,266 | $ | 5,842 | |||||||||
Research and development | 30,084 | 22,565 | 82,345 | 62,152 | |||||||||||||
Selling and marketing | 3,738 | 3,101 | 10,778 | 9,595 | |||||||||||||
General and administrative | 6,848 | 2,764 | 18,416 | 13,205 | |||||||||||||
$ | 43,201 | $ | 30,374 | $ | 117,805 | $ | 90,794 | ||||||||||
Share-based compensation capitalized in inventory was $2.0 million at November 2, 2013 and $1.5 million at February 2, 2013. | |||||||||||||||||
Valuation Assumptions | |||||||||||||||||
The following weighted average assumptions were used for each respective period to calculate the fair value of each time-based stock option award on the date of grant using the Black-Scholes valuation model: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Time-based Stock Options: | |||||||||||||||||
Weighted average fair value | $ | 3.91 | $ | 3.27 | $ | 3.42 | $ | 5.57 | |||||||||
Expected volatility | 42 | % | 46 | % | 45 | % | 44 | % | |||||||||
Expected term (in years) | 5 | 4.8 | 5 | 4.8 | |||||||||||||
Risk-free interest rate | 1.5 | % | 0.7 | % | 0.8 | % | 0.9 | % | |||||||||
Expected dividend yield | 2 | % | 2.3 | % | 2.4 | % | 0-2.3 | % | |||||||||
Nine Months Ended | |||||||||||||||||
November 2, | October 27, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Employee Stock Purchase Plan: | |||||||||||||||||
Estimated fair value | $ | 3.45 | $ | 3.77 | |||||||||||||
Volatility | 40 | % | 39 | % | |||||||||||||
Expected term (in years) | 1.3 | 1.3 | |||||||||||||||
Risk-free interest rate | 0.2 | % | 0.2 | % | |||||||||||||
Dividend yield | 2.2 | % | 2 | % | |||||||||||||
Under the ESPP, there were no stock purchase rights granted in the three months ended November 2, 2013 and October 27, 2012. |
The_Company_and_Basis_of_Prese1
The Company and Basis of Presentation (Policies) | 9 Months Ended |
Nov. 02, 2013 | |
The Company | ' |
The Company | |
Marvell Technology Group Ltd., a Bermuda company (the “Company”), is a leading global semiconductor provider of high-performance application specific standard products. The Company’s core strength of expertise is the development of complex System-on-a-Chip devices leveraging its extensive technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing and embedded ARM-based microprocessor integrated circuits. The Company also develops platforms that it defines as integrated hardware, along with software that incorporates digital computing technologies designed and configured to provide an optimized computing solution compared to individual components. The Company’s broad product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceivers, mobile handsets and other consumer electronics, Ethernet-based wireless networking, personal area networking, Ethernet-based PC connectivity, control plane communications controllers, video-image processing and power management solutions. | |
Reclassification | ' |
Reclassification | |
Certain amounts in the unaudited condensed consolidated financial statements and notes to the unaudited condensed consolidated financial statements for prior years have been reclassified to conform to the fiscal 2014 presentation. Net operating results have not been affected by these reclassifications. | |
Basis of Presentation | ' |
Basis of Presentation | |
The Company’s fiscal year is the 52- or 53-week period ending on the Saturday closest to January 31. In a 52-week year, each fiscal quarter consists of 13 weeks. The additional week in a 53-week year is added to the fourth quarter, making such quarter consist of 14 weeks. Fiscal 2014 has a 52-week period and fiscal 2013 had a 53-week period. | |
The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments consisting of normal and recurring entries considered necessary for a fair statement of the results for the interim periods have been included in the Company’s balance sheet as of November 2, 2013, the results of its operations for the three and nine months ended November 2, 2013 and October 27, 2012, its comprehensive income for the three and nine months ended November 2, 2013 and October 27, 2012, and its cash flows for the nine months ended November 2, 2013 and October 27, 2012. The February 2, 2013 condensed consolidated balance sheet data was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013, but does not include all disclosures required for annual periods. | |
These condensed consolidated financial statements and related notes are unaudited and should be read in conjunction with the Company’s audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013 as filed on March 29, 2013 with the Securities and Exchange Commission. The results of operations for the three and nine months ended November 2, 2013 are not necessarily indicative of the results that may be expected for any other interim period or for the full fiscal year. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to performance-based compensation, revenue recognition, provisions for sales returns and allowances, inventory excess and obsolescence, investment fair values, goodwill and other intangible assets, restructuring, income taxes, litigation and other contingencies. In addition, the Company uses assumptions when employing the Monte Carlo simulation and Black-Scholes valuation models to calculate the fair value of share-based awards that are granted. Actual results could differ from these estimates, and such differences could affect the results of operations reported in future periods. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The functional currency of the Company and its subsidiaries is the U.S. dollar. | |
Accounting Pronouncements Recently Adopted | ' |
The Company adopted the new accounting standard regarding the testing of indefinite-lived intangible assets for impairment at the beginning of fiscal 2014. This amended guidance allows an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with the guidance on the impairment of intangible assets other than goodwill. The adoption of this guidance had no impact on the Company’s financial statements. | |
The Company adopted the new accounting standard regarding the reporting of amounts reclassified out of accumulated other comprehensive income. The amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either in the financial statements or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The Company elected to disclose the information in the Notes to Unaudited Condensed Consolidated Financial Statements beginning in fiscal 2014. |
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | ' | ||||||||||||||||||||||||
The following tables summarize the Company’s investments (in thousands): | |||||||||||||||||||||||||
November 2, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Corporate debt securities | $ | 588,021 | $ | 2,262 | $ | (791 | ) | $ | 589,492 | ||||||||||||||||
U.S. government and agency debt | 309,216 | 129 | (82 | ) | 309,263 | ||||||||||||||||||||
Asset backed securities | 74,431 | 65 | (52 | ) | 74,444 | ||||||||||||||||||||
Foreign government and agency debt | 20,307 | 25 | (40 | ) | 20,292 | ||||||||||||||||||||
Municipal debt securities | 14,220 | 28 | (1 | ) | 14,247 | ||||||||||||||||||||
Total short-term investments | 1,006,195 | 2,509 | (966 | ) | 1,007,738 | ||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Auction rate securities | 19,150 | — | (2,992 | ) | 16,158 | ||||||||||||||||||||
Total long-term investments | 19,150 | — | (2,992 | ) | 16,158 | ||||||||||||||||||||
Total investments | $ | 1,025,345 | $ | 2,509 | $ | (3,958 | ) | $ | 1,023,896 | ||||||||||||||||
February 2, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Corporate debt securities | $ | 577,120 | $ | 2,886 | $ | (382 | ) | $ | 579,624 | ||||||||||||||||
U.S. government and agency debt | 318,226 | 258 | (5 | ) | 318,479 | ||||||||||||||||||||
Time deposits | 188,000 | — | — | 188,000 | |||||||||||||||||||||
Asset backed securities | 76,629 | 50 | (64 | ) | 76,615 | ||||||||||||||||||||
Foreign government and agency debt | 4,320 | — | (1 | ) | 4,319 | ||||||||||||||||||||
Total short-term investments | 1,164,295 | 3,194 | (452 | ) | 1,167,037 | ||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Auction rate securities | 19,450 | — | (2,681 | ) | 16,769 | ||||||||||||||||||||
Total long-term investments | 19,450 | — | (2,681 | ) | 16,769 | ||||||||||||||||||||
Total investments | $ | 1,183,745 | $ | 3,194 | $ | (3,133 | ) | $ | 1,183,806 | ||||||||||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||||||||
The contractual maturities of available-for-sale securities are presented in the following table (in thousands): | |||||||||||||||||||||||||
November 2, 2013 | February 2, 2013 | ||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||
Due in one year or less | $ | 292,105 | $ | 292,286 | $ | 519,006 | $ | 519,537 | |||||||||||||||||
Due between one and five years | 698,295 | 699,657 | 627,769 | 629,991 | |||||||||||||||||||||
Due over five years | 34,945 | 31,953 | 36,970 | 34,278 | |||||||||||||||||||||
$ | 1,025,345 | $ | 1,023,896 | $ | 1,183,745 | $ | 1,183,806 | ||||||||||||||||||
Unrealized Loss Position Investments | ' | ||||||||||||||||||||||||
For individual securities that are in an unrealized loss position, the fair value and gross unrealized loss for these securities aggregated by investment category and length of time in an unrealized position are presented in the following tables (in thousands): | |||||||||||||||||||||||||
November 2, 2013 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Corporate debt securities | $ | 177,743 | $ | (791 | ) | $ | — | $ | — | $ | 177,743 | $ | (791 | ) | |||||||||||
U.S. government and agency debt | 68,807 | (82 | ) | — | — | 68,807 | (82 | ) | |||||||||||||||||
Asset backed securities | 44,700 | (35 | ) | 1,917 | (17 | ) | 46,617 | (52 | ) | ||||||||||||||||
Foreign government and agency debt | 12,968 | (40 | ) | — | — | 12,968 | (40 | ) | |||||||||||||||||
Municipal debt securities | 275 | (1 | ) | — | — | 275 | (1 | ) | |||||||||||||||||
Auction rate securities | — | — | 16,158 | (2,992 | ) | 16,158 | (2,992 | ) | |||||||||||||||||
Total securities | $ | 304,493 | $ | (949 | ) | $ | 18,075 | $ | (3,009 | ) | $ | 322,568 | $ | (3,958 | ) | ||||||||||
February 2, 2013 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Corporate debt securities | $ | 141,915 | $ | (382 | ) | $ | — | $ | — | $ | 141,915 | $ | (382 | ) | |||||||||||
Asset backed securities | 43,882 | (64 | ) | — | — | 43,882 | (64 | ) | |||||||||||||||||
U.S. government and agency debt | 14,677 | (5 | ) | — | — | 14,677 | (5 | ) | |||||||||||||||||
Foreign government and agency debt | 4,319 | (1 | ) | — | — | 4,319 | (1 | ) | |||||||||||||||||
Auction rate securities | — | — | 16,769 | (2,681 | ) | 16,769 | (2,681 | ) | |||||||||||||||||
Total securities | $ | 204,793 | $ | (452 | ) | $ | 16,769 | $ | (2,681 | ) | $ | 221,562 | $ | (3,133 | ) | ||||||||||
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Schedule of Inventory, Current | ' | ||||||||||||||||
November 2, | February 2, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Inventories: | |||||||||||||||||
Work-in-process | $ | 232,382 | $ | 140,805 | |||||||||||||
Finished goods | 148,030 | 109,615 | |||||||||||||||
Inventories | $ | 380,412 | $ | 250,420 | |||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||
November 2, | February 2, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Property and equipment, net: | |||||||||||||||||
Machinery and equipment | $ | 557,477 | $ | 532,420 | |||||||||||||
Buildings | 144,320 | 144,320 | |||||||||||||||
Computer software | 95,233 | 89,548 | |||||||||||||||
Land | 53,373 | 53,373 | |||||||||||||||
Building improvements | 49,614 | 49,516 | |||||||||||||||
Leasehold improvements | 49,040 | 46,205 | |||||||||||||||
Furniture and fixtures | 27,639 | 25,301 | |||||||||||||||
Construction in progress | 1,634 | 5,333 | |||||||||||||||
978,330 | 946,016 | ||||||||||||||||
Less: Accumulated depreciation and amortization | (620,180 | ) | (573,045 | ) | |||||||||||||
Property and equipment, net | $ | 358,150 | $ | 372,971 | |||||||||||||
Other Noncurrent Liabilities | ' | ||||||||||||||||
November 2, | February 2, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Other non-current assets: | |||||||||||||||||
Technology and other licenses | $ | 75,325 | $ | 81,523 | |||||||||||||
Deferred tax assets | 25,884 | 26,291 | |||||||||||||||
Investments in privately-held companies | 15,065 | 14,486 | |||||||||||||||
Prepaid land use rights | 13,822 | 14,056 | |||||||||||||||
Deposits | 13,331 | 10,451 | |||||||||||||||
Other | 18,952 | 18,078 | |||||||||||||||
Other non-current assets | $ | 162,379 | $ | 164,885 | |||||||||||||
Schedule of Accrued Liabilities | ' | ||||||||||||||||
November 2, | February 2, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Accrued liabilities: | |||||||||||||||||
Accrued rebates | $ | 57,984 | $ | 51,712 | |||||||||||||
Accrued legal expense | 13,701 | 14,754 | |||||||||||||||
Accrued royalties | 25,518 | 16,298 | |||||||||||||||
Technology license obligations | 11,510 | 9,865 | |||||||||||||||
Accrued share repurchases | — | 22,152 | |||||||||||||||
Other | 30,326 | 29,210 | |||||||||||||||
Accrued liabilities | $ | 139,039 | $ | 143,991 | |||||||||||||
Schedule of Other Assets, Noncurrent | ' | ||||||||||||||||
November 2, | February 2, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Other non-current liabilities: | |||||||||||||||||
Technology license obligations | $ | 27,808 | $ | 34,270 | |||||||||||||
Long-term accrued employee compensation | 6,333 | 6,205 | |||||||||||||||
Other | 10,334 | 15,935 | |||||||||||||||
Other non-current liabilities | $ | 44,475 | $ | 56,410 | |||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | ' | ||||||||||||||||
The changes in accumulated other comprehensive income by component are presented in the following tables (in thousands): | |||||||||||||||||
Unrealized Gain | Unrealized Gain | Unrealized Gain | Total | ||||||||||||||
(Loss) on | (Loss) on | (Loss) on Cash | |||||||||||||||
Marketable | Auction Rate | Flow Hedges | |||||||||||||||
Securities | Securities | ||||||||||||||||
Balance at February 2, 2013 | $ | 2,742 | $ | (2,681 | ) | $ | 1,087 | $ | 1,148 | ||||||||
Other comprehensive (loss) income before reclassifications | (276 | ) | (311 | ) | 3,103 | 2,516 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (923 | ) | — | (2,684 | ) | (3,607 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (1,199 | ) | (311 | ) | 419 | (1,091 | ) | ||||||||||
Balance at November 2, 2013 | $ | 1,543 | $ | (2,992 | ) | $ | 1,506 | $ | 57 | ||||||||
Unrealized Gain | Unrealized Gain | Unrealized Gain | Total | ||||||||||||||
(Loss) on | (Loss) on | (Loss) on Cash | |||||||||||||||
Marketable | Auction Rate | Flow Hedges | |||||||||||||||
Securities | Securities | ||||||||||||||||
Balance at January 28, 2012 | $ | 3,702 | $ | (1,285 | ) | $ | (1,641 | ) | $ | 776 | |||||||
Other comprehensive income (loss) before reclassifications | 2,097 | (112 | ) | (529 | ) | 1,456 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (1,703 | ) | — | 2,846 | 1,143 | ||||||||||||
Net current-period other comprehensive income (loss) | 394 | (112 | ) | 2,317 | 2,599 | ||||||||||||
Balance at October 27, 2012 | $ | 4,096 | $ | (1,397 | ) | $ | 676 | $ | 3,375 | ||||||||
Changes in Accumulated Other Comprehensive Income by Component | ' | ||||||||||||||||
The amounts reclassified from accumulated other comprehensive income by components are presented in the following table (in thousands): | |||||||||||||||||
November 2, 2013 | |||||||||||||||||
Affected Line Item in the | Three Months | Nine Months | |||||||||||||||
Statement of Operations | Ended | Ended | |||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Interest and other income, net | $ | 380 | $ | 923 | |||||||||||||
Cash flow hedges: | |||||||||||||||||
Cost of goods sold | 41 | 149 | |||||||||||||||
Research and development | 648 | 2,319 | |||||||||||||||
Selling and marketing | 53 | 198 | |||||||||||||||
General and administrative | 5 | 18 | |||||||||||||||
Total | $ | 1,127 | $ | 3,607 | |||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | ||||||||||||||||
The computations of basic and diluted net income per share are presented in the following table (in thousands, except per share amounts): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 103,156 | $ | 68,816 | $ | 218,191 | $ | 256,433 | |||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding: | 491,979 | 553,049 | 496,151 | 565,145 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Common share-based awards | 9,210 | 6,299 | 6,250 | 9,659 | |||||||||||||
Weighted average shares — diluted | 501,189 | 559,348 | 502,401 | 574,804 | |||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.21 | $ | 0.12 | $ | 0.44 | $ | 0.45 | |||||||||
Diluted | $ | 0.21 | $ | 0.12 | $ | 0.43 | $ | 0.45 | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Anti-dilutive potential common shares: | |||||||||||||||||
Weighted average shares outstanding from stock options | 43,167 | 42,149 | 39,854 | 27,560 | |||||||||||||
Weighted average exercise price | $ | 14.71 | $ | 15.43 | $ | 15.18 | $ | 17.67 | |||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Schedule of Derivative Instruments | ' | ||||||||
The notional amounts of outstanding foreign currency forward contracts were as follows (in thousands): | |||||||||
Buy Contracts | |||||||||
November 2, | February 2, | ||||||||
2013 | 2013 | ||||||||
Euro | $ | 5,718 | $ | — | |||||
Israeli shekel | 58,898 | 38,249 | |||||||
Swedish krona | 3,968 | — | |||||||
$ | 68,584 | $ | 38,249 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | ' | ||||||||||||||||
The tables do not include assets and liabilities that are measured at historical cost or any basis other than fair value (in thousands): | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Portion of Carrying | ||||||||||||||
Value Measured at | |||||||||||||||||
Fair Value | |||||||||||||||||
at November 2, 2013 | |||||||||||||||||
Items measured at fair value on a recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 8,378 | $ | — | $ | — | $ | 8,378 | |||||||||
Time deposits | — | 216,359 | — | 216,359 | |||||||||||||
Municipal debt securities | — | 5,700 | — | 5,700 | |||||||||||||
Corporate debt securities | — | 1,600 | — | 1,600 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S. government and agency debt | 309,263 | — | — | 309,263 | |||||||||||||
Corporate debt securities | — | 589,492 | — | 589,492 | |||||||||||||
Asset backed securities | — | 74,444 | — | 74,444 | |||||||||||||
Foreign government and agency debt | — | 20,292 | — | 20,292 | |||||||||||||
Municipal debt securities | — | 14,247 | — | 14,247 | |||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||
Forward contracts | — | 1,618 | — | 1,618 | |||||||||||||
Long-term investments: | |||||||||||||||||
Auction rate securities | — | — | 16,158 | 16,158 | |||||||||||||
Other non-current assets: | |||||||||||||||||
Severance pay fund | — | 2,104 | — | 2,104 | |||||||||||||
Total assets | $ | 317,641 | $ | 925,856 | $ | 16,158 | $ | 1,259,655 | |||||||||
Level 1 | Level 2 | Level 3 | Portion of Carrying | ||||||||||||||
Value Measured at | |||||||||||||||||
Fair Value | |||||||||||||||||
at February 2, 2013 | |||||||||||||||||
Items measured at fair value on a recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. government and agency debt | $ | 27,029 | $ | — | $ | — | $ | 27,029 | |||||||||
Money market funds | 21,523 | — | — | 21,523 | |||||||||||||
Time deposits | — | 119,874 | — | 119,874 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S. government and agency debt | 318,479 | — | — | 318,479 | |||||||||||||
Corporate debt securities | — | 579,624 | — | 579,624 | |||||||||||||
Time deposits | — | 188,000 | — | 188,000 | |||||||||||||
Asset backed securities | — | 76,615 | — | 76,615 | |||||||||||||
Foreign government and agency debt | — | 4,319 | — | 4,319 | |||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||
Forward contracts | — | 1,144 | — | 1,144 | |||||||||||||
Long-term investments: | |||||||||||||||||
Auction rate securities | — | — | 16,769 | 16,769 | |||||||||||||
Other non-current assets: | |||||||||||||||||
Severance pay fund | — | 1,977 | — | 1,977 | |||||||||||||
Total assets | $ | 367,031 | $ | 971,553 | $ | 16,769 | $ | 1,355,353 | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ||||||||||||||||
The following table summarizes the change in fair value for Level 3 items (in thousands): | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
November 2, | October 27, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Beginning balance | $ | 16,769 | $ | 23,215 | |||||||||||||
Sales and redemptions | (300 | ) | (5,000 | ) | |||||||||||||
Unrealized losses included in accumulated other comprehensive income | (311 | ) | (112 | ) | |||||||||||||
Ending balance | $ | 16,158 | $ | 18,103 | |||||||||||||
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangible Assets, Net (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||||||||||||
Summary of Activity Related to Goodwill | ' | ||||||||||||||||||||||||||
The following table summarizes the activity related to the carrying value of goodwill (in thousands): | |||||||||||||||||||||||||||
Balance at February 2, 2013 | $ | 2,032,138 | |||||||||||||||||||||||||
Additions due to business combinations | 400 | ||||||||||||||||||||||||||
Balance at November 2, 2013 | $ | 2,032,538 | |||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | ' | ||||||||||||||||||||||||||
The carrying amount of acquired intangible assets, net, are as follows (in thousands): | |||||||||||||||||||||||||||
November 2, 2013 | February 2, 2013 | ||||||||||||||||||||||||||
Range of | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
Useful Lives | Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||||
Amounts | and | Amount | Amounts | and | Amount | ||||||||||||||||||||||
Write-Offs | Write-Offs | ||||||||||||||||||||||||||
Purchased technology | 4 - 7 years | $ | 54,690 | $ | (25,313 | ) | $ | 29,377 | $ | 54,690 | $ | (18,552 | ) | $ | 36,138 | ||||||||||||
Core technology | 5 - 8 years | 138,650 | (137,793 | ) | 857 | 138,650 | (123,298 | ) | 15,352 | ||||||||||||||||||
Trade names | 5 years | 1,300 | (503 | ) | 797 | 1,300 | (308 | ) | 992 | ||||||||||||||||||
Customer intangibles | 5 - 7 years | 89,400 | (72,445 | ) | 16,955 | 89,400 | (61,927 | ) | 27,473 | ||||||||||||||||||
IPR&D | * | 13,086 | — | 13,086 | 9,700 | — | 9,700 | ||||||||||||||||||||
Total intangible assets, net | $ | 297,126 | $ | (236,054 | ) | $ | 61,072 | $ | 293,740 | $ | (204,085 | ) | $ | 89,655 | |||||||||||||
* | Upon completion of projects, the related in-process research and development (“IPR&D”) assets will be amortized over its estimated useful life. If any of the projects are abandoned or the forecast of the project indicates that the fair value is less than the carrying amount, the Company will be required to write down the related IPR&D asset. | ||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ||||||||||||||||||||||||||
Based on the identified intangible assets recorded at November 2, 2013, the future amortization expense excluding IPR&D for the next five fiscal years is as follows (in thousands): | |||||||||||||||||||||||||||
Fiscal year | |||||||||||||||||||||||||||
Remainder of fiscal 2014 | $ | 3,809 | |||||||||||||||||||||||||
2015 | 14,942 | ||||||||||||||||||||||||||
2016 | 12,203 | ||||||||||||||||||||||||||
2017 | 11,018 | ||||||||||||||||||||||||||
2018 | 5,590 | ||||||||||||||||||||||||||
Thereafter | 424 | ||||||||||||||||||||||||||
$ | 47,986 | ||||||||||||||||||||||||||
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | ||||||||||||||||
The following table presents details of restructuring charges by functional line item (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Research and development | $ | 2,886 | $ | 2 | $ | 2,886 | $ | 46 | |||||||||
Selling and marketing | 795 | (3 | ) | 795 | (3 | ) | |||||||||||
General and administrative | 527 | 130 | 933 | 1,060 | |||||||||||||
$ | 4,208 | $ | 129 | $ | 4,614 | $ | 1,103 | ||||||||||
Schedule of Restructuring and Related Costs | ' | ||||||||||||||||
The following table sets forth a reconciliation of the beginning and ending restructuring liability balances by each major type of costs associated with the restructuring charges for the nine months ended November 2, 2013 (in thousands): | |||||||||||||||||
Severance | Facilities | Other | Total | ||||||||||||||
and Related | and Related | Exit-Related | |||||||||||||||
Costs | Costs | Costs | |||||||||||||||
Balance at February 2, 2013 | $ | — | $ | 2,855 | $ | — | $ | 2,855 | |||||||||
Restructuring charges | 2,786 | 1,554 | 213 | 4,553 | |||||||||||||
Net cash payments | (642 | ) | (1,323 | ) | (182 | ) | (2,147 | ) | |||||||||
Balance at November 2, 2013 | $ | 2,144 | $ | 3,086 | $ | 31 | $ | 5,261 | |||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | ' | ||||||||||||||||||||||||
Activity under the Company’s stock option plans for the nine months ended November 2, 2013 is summarized below (in thousands, except per share amounts): | |||||||||||||||||||||||||
Time-Based Options | Market-Based Options | Total | |||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||
Exercise Price | Exercise Price | Exercise Price | |||||||||||||||||||||||
Balance at February 2, 2013 | 49,637 | $ | 13.28 | 2,759 | $ | 15.43 | 52,396 | $ | 13.39 | ||||||||||||||||
Granted | 18,763 | $ | 10.79 | — | $ | — | 18,763 | $ | 10.79 | ||||||||||||||||
Exercised | (7,275 | ) | $ | 8.36 | — | $ | — | (7,275 | ) | $ | 8.36 | ||||||||||||||
Canceled/Forfeited | (2,631 | ) | $ | 15.22 | (53 | ) | $ | 15.43 | (2,684 | ) | $ | 15.23 | |||||||||||||
Balance at November 2, 2013 | 58,494 | $ | 13.01 | 2,706 | $ | 15.43 | 61,200 | $ | 13.11 | ||||||||||||||||
Vested or expected to vest at November 2, 2013 | 54,756 | $ | 13.11 | ||||||||||||||||||||||
Exercisable at November 2, 2013 | 33,914 | $ | 13.85 | ||||||||||||||||||||||
Schedule of Nonvested Share Activity | ' | ||||||||||||||||||||||||
Included in the following table is activity related to the non-vested portion of the restricted stock units as follows (in thousands, except for share prices): | |||||||||||||||||||||||||
Restricted Stock | Weighted Average | ||||||||||||||||||||||||
Units | Grant Date | ||||||||||||||||||||||||
Outstanding | Fair Value | ||||||||||||||||||||||||
Balance at February 2, 2013 | 12,739 | $ | 15.78 | ||||||||||||||||||||||
Granted | 3,509 | $ | 10.56 | ||||||||||||||||||||||
Vested | (3,729 | ) | $ | 16.31 | |||||||||||||||||||||
Canceled/Forfeited | (902 | ) | $ | 14.4 | |||||||||||||||||||||
Balance at November 2, 2013 | 11,617 | $ | 14.14 | ||||||||||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ||||||||||||||||
The following table presents details of share-based compensation expenses by functional line item (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of goods sold | $ | 2,531 | $ | 1,944 | $ | 6,266 | $ | 5,842 | |||||||||
Research and development | 30,084 | 22,565 | 82,345 | 62,152 | |||||||||||||
Selling and marketing | 3,738 | 3,101 | 10,778 | 9,595 | |||||||||||||
General and administrative | 6,848 | 2,764 | 18,416 | 13,205 | |||||||||||||
$ | 43,201 | $ | 30,374 | $ | 117,805 | $ | 90,794 | ||||||||||
Employee Stock Purchase Plan | ' | ||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||||||||||||||
Nine Months Ended | |||||||||||||||||
November 2, | October 27, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Employee Stock Purchase Plan: | |||||||||||||||||
Estimated fair value | $ | 3.45 | $ | 3.77 | |||||||||||||
Volatility | 40 | % | 39 | % | |||||||||||||
Expected term (in years) | 1.3 | 1.3 | |||||||||||||||
Risk-free interest rate | 0.2 | % | 0.2 | % | |||||||||||||
Dividend yield | 2.2 | % | 2 | % | |||||||||||||
Time Based Option Award | ' | ||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||||||||||||||
The following weighted average assumptions were used for each respective period to calculate the fair value of each time-based stock option award on the date of grant using the Black-Scholes valuation model: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Time-based Stock Options: | |||||||||||||||||
Weighted average fair value | $ | 3.91 | $ | 3.27 | $ | 3.42 | $ | 5.57 | |||||||||
Expected volatility | 42 | % | 46 | % | 45 | % | 44 | % | |||||||||
Expected term (in years) | 5 | 4.8 | 5 | 4.8 | |||||||||||||
Risk-free interest rate | 1.5 | % | 0.7 | % | 0.8 | % | 0.9 | % | |||||||||
Expected dividend yield | 2 | % | 2.3 | % | 2.4 | % | 0-2.3 | % |
Summary_of_Investments_Detail
Summary of Investments (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Gain (Loss) on Investments [Line Items] | ' | ' |
Estimated Fair Value | $1,023,896 | $1,183,806 |
Short-term Investments | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 1,006,195 | 1,164,295 |
Gross Unrealized Gains | 2,509 | 3,194 |
Gross Unrealized Losses | -966 | -452 |
Estimated Fair Value | 1,007,738 | 1,167,037 |
Short-term Investments | Available-for-sale | Corporate debt securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 588,021 | 577,120 |
Gross Unrealized Gains | 2,262 | 2,886 |
Gross Unrealized Losses | -791 | -382 |
Estimated Fair Value | 589,492 | 579,624 |
Short-term Investments | Available-for-sale | U.S. government and agency debt | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 309,216 | 318,226 |
Gross Unrealized Gains | 129 | 258 |
Gross Unrealized Losses | -82 | -5 |
Estimated Fair Value | 309,263 | 318,479 |
Short-term Investments | Available-for-sale | Time Deposits | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | ' | 188,000 |
Estimated Fair Value | ' | 188,000 |
Short-term Investments | Available-for-sale | Asset-backed Securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 74,431 | 76,629 |
Gross Unrealized Gains | 65 | 50 |
Gross Unrealized Losses | -52 | -64 |
Estimated Fair Value | 74,444 | 76,615 |
Short-term Investments | Available-for-sale | Foreign government and agency debt | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 20,307 | 4,320 |
Gross Unrealized Gains | 25 | ' |
Gross Unrealized Losses | -40 | -1 |
Estimated Fair Value | 20,292 | 4,319 |
Short-term Investments | Available-for-sale | Municipal debt securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 14,220 | ' |
Gross Unrealized Gains | 28 | ' |
Gross Unrealized Losses | -1 | ' |
Estimated Fair Value | 14,247 | ' |
Long-term investments | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 19,150 | 19,450 |
Gross Unrealized Losses | -2,992 | -2,681 |
Estimated Fair Value | 16,158 | 16,769 |
Long-term investments | Auction rate securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Gross Unrealized Losses | -3,000 | ' |
Long-term investments | Available-for-sale | Auction rate securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 19,150 | 19,450 |
Gross Unrealized Losses | -2,992 | -2,681 |
Estimated Fair Value | 16,158 | 16,769 |
Investments | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 1,025,345 | 1,183,745 |
Gross Unrealized Gains | 2,509 | 3,194 |
Gross Unrealized Losses | -3,958 | -3,133 |
Estimated Fair Value | $1,023,896 | $1,183,806 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
Gain (Loss) on Investments [Line Items] | ' | ' |
Cash, cash equivalents and short-term investments | $1,800,000,000 | ' |
Long-term investments | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Gross Unrealized Losses | 2,992,000 | 2,681,000 |
Long-term investments | Auction rate securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Par value of auction rate securities | 19,200,000 | ' |
Gross Unrealized Losses | $3,000,000 | ' |
Contractual_Maturities_of_Avai
Contractual Maturities of Available for Sale Securities (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ' | ' |
Due in one year or less | $292,105 | $519,006 |
Due between one and five years | 698,295 | 627,769 |
Due over five years | 34,945 | 36,970 |
Marketable Securities, Debt Maturities, Amortized Cost, Total | 1,025,345 | 1,183,745 |
Estimated Fair Value | ' | ' |
Due in one year or less | 292,286 | 519,537 |
Due between one and five years | 699,657 | 629,991 |
Due over five years | 31,953 | 34,278 |
Estimated Fair Value | $1,023,896 | $1,183,806 |
Summary_of_Investments_Gross_U
Summary of Investments Gross Unrealized Losses and Fair Value (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Nov. 02, 2013 | Feb. 02, 2013 |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | $304,493 | $204,793 |
Less than 12 months Unrealized Losses | -949 | -452 |
12 months or more Fair Value | 18,075 | 16,769 |
12 months or more Unrealized Losses | -3,009 | -2,681 |
Total Fair Value | 322,568 | 221,562 |
Total Unrealized Losses | -3,958 | -3,133 |
Corporate debt securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | 177,743 | 141,915 |
Less than 12 months Unrealized Losses | -791 | -382 |
Total Fair Value | 177,743 | 141,915 |
Total Unrealized Losses | -791 | -382 |
Asset-backed Securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | 44,700 | 43,882 |
Less than 12 months Unrealized Losses | -35 | -64 |
12 months or more Fair Value | 1,917 | ' |
12 months or more Unrealized Losses | -17 | ' |
Total Fair Value | 46,617 | 43,882 |
Total Unrealized Losses | -52 | -64 |
U.S. government and agency debt | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | 68,807 | 14,677 |
Less than 12 months Unrealized Losses | -82 | -5 |
Total Fair Value | 68,807 | 14,677 |
Total Unrealized Losses | -82 | -5 |
Foreign government and agency debt | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | 12,968 | 4,319 |
Less than 12 months Unrealized Losses | -40 | -1 |
Total Fair Value | 12,968 | 4,319 |
Total Unrealized Losses | -40 | -1 |
Auction rate securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
12 months or more Fair Value | 16,158 | 16,769 |
12 months or more Unrealized Losses | -2,992 | -2,681 |
Total Fair Value | 16,158 | 16,769 |
Total Unrealized Losses | -2,992 | -2,681 |
Municipal debt securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | 275 | ' |
Less than 12 months Unrealized Losses | -1 | ' |
Total Fair Value | 275 | ' |
Total Unrealized Losses | ($1) | ' |
Inventories_Detail
Inventories (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Work-in-process | $232,382 | $140,805 |
Finished goods | 148,030 | 109,615 |
Inventories | $380,412 | $250,420 |
Property_and_Equipment_Net_Det
Property and Equipment Net (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Machinery and equipment | $557,477 | $532,420 |
Buildings | 144,320 | 144,320 |
Computer software | 95,233 | 89,548 |
Land | 53,373 | 53,373 |
Building improvements | 49,614 | 49,516 |
Leasehold improvements | 49,040 | 46,205 |
Furniture and fixtures | 27,639 | 25,301 |
Construction in progress | 1,634 | 5,333 |
Property, Plant and Equipment, Gross, Total | 978,330 | 946,016 |
Less: Accumulated depreciation and amortization | -620,180 | -573,045 |
Property and equipment, net | $358,150 | $372,971 |
Other_Non_Current_Assets_Detai
Other Non Current Assets (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ' | ' |
Technology and other licenses | $75,325 | $81,523 |
Deferred tax assets | 25,884 | 26,291 |
Investments in privately-held companies | 15,065 | 14,486 |
Prepaid land use rights | 13,822 | 14,056 |
Deposits | 13,331 | 10,451 |
Other | 18,952 | 18,078 |
Other non-current assets | $162,379 | $164,885 |
Accrued_Liabilities_Detail
Accrued Liabilities (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Accrued rebates | $57,984 | $51,712 |
Accrued legal expense | 13,701 | 14,754 |
Accrued royalties | 25,518 | 16,298 |
Technology license obligations | 11,510 | 9,865 |
Accrued share repurchases | ' | 22,152 |
Other | 30,326 | 29,210 |
Accrued liabilities | $139,039 | $143,991 |
Other_Long_Term_Liabilities_De
Other Long Term Liabilities (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Other Liabilities [Line Items] | ' | ' |
Technology license obligations | $27,808 | $34,270 |
Long-term accrued employee compensation | 6,333 | 6,205 |
Other | 10,334 | 15,935 |
Other non-current liabilities | $44,475 | $56,410 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | $1,148 | $776 |
Other comprehensive (loss) income before reclassifications | ' | ' | 2,516 | 1,456 |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -3,607 | 1,143 |
Other comprehensive income (loss), net | 1,629 | 1,997 | -1,091 | 2,599 |
Ending Balance | 57 | 3,375 | 57 | 3,375 |
Interest and other income, net | 1,536 | 2,387 | 12,949 | 9,308 |
Cost of goods sold | -464,981 | -374,503 | -1,186,478 | -1,122,664 |
Research and development | -296,291 | -263,615 | -867,985 | -783,760 |
Selling and marketing | -37,496 | -38,398 | -116,033 | -119,498 |
General and administrative | -26,589 | -24,514 | -80,104 | -75,937 |
Total | 103,156 | 68,816 | 218,191 | 256,433 |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Total | 1,127 | ' | 3,607 | ' |
Unrealized Gain (Loss) on Cash Flow Hedges | ' | ' | ' | ' |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 1,087 | -1,641 |
Other comprehensive (loss) income before reclassifications | ' | ' | 3,103 | -529 |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -2,684 | 2,846 |
Other comprehensive income (loss), net | ' | ' | 419 | 2,317 |
Ending Balance | 1,506 | 676 | 1,506 | 676 |
Unrealized Gain (Loss) on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Cost of goods sold | 41 | ' | 149 | ' |
Research and development | 648 | ' | 2,319 | ' |
Selling and marketing | 53 | ' | 198 | ' |
General and administrative | 5 | ' | 18 | ' |
Unrealized Gain (Loss) on Marketable Securities | ' | ' | ' | ' |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 2,742 | 3,702 |
Other comprehensive (loss) income before reclassifications | ' | ' | -276 | 2,097 |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -923 | -1,703 |
Other comprehensive income (loss), net | ' | ' | -1,199 | 394 |
Ending Balance | 1,543 | 4,096 | 1,543 | 4,096 |
Unrealized Gain (Loss) on Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Interest and other income, net | 380 | ' | 923 | ' |
Auction rate securities | ' | ' | ' | ' |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | -2,681 | -1,285 |
Other comprehensive (loss) income before reclassifications | ' | ' | -311 | -112 |
Other comprehensive income (loss), net | ' | ' | -311 | -112 |
Ending Balance | ($2,992) | ($1,397) | ($2,992) | ($1,397) |
Computations_of_Basic_and_Dilu
Computations of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Numerator: | ' | ' | ' | ' |
Net income | $103,156 | $68,816 | $218,191 | $256,433 |
Denominator: | ' | ' | ' | ' |
Weighted average common shares outstanding: | 491,979 | 553,049 | 496,151 | 565,145 |
Effect of dilutive securities: | ' | ' | ' | ' |
Common share-based awards | 9,210 | 6,299 | 6,250 | 9,659 |
Weighted average shares - diluted | 501,189 | 559,348 | 502,401 | 574,804 |
Basic | $0.21 | $0.12 | $0.44 | $0.45 |
Diluted | $0.21 | $0.12 | $0.43 | $0.45 |
Employee Stock Option | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Weighted average shares outstanding from stock options | 43,167 | 42,149 | 39,854 | 27,560 |
Weighted average exercise price | $14.71 | $15.43 | $15.18 | $17.67 |
Supplemental_Financial_Informa2
Supplemental Financial Information - Additional Information (Detail) (Market Based Option Award) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Market Based Option Award | ' | ' | ' | ' |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' |
Anti-dilutive options excluded from the computation of diluted net income per share | 2,700 | 3,000 | 2,700 | 3,100 |
Notional_Amounts_of_Outstandin
Notional Amounts of Outstanding Foreign Currency Forward Contracts (Detail) (Foreign Exchange Contract, USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Buy Contracts | $68,584 | $38,249 |
Euro | ' | ' |
Derivative [Line Items] | ' | ' |
Buy Contracts | 5,718 | ' |
Israeli shekel | ' | ' |
Derivative [Line Items] | ' | ' |
Buy Contracts | 58,898 | 38,249 |
Swedish krona | ' | ' |
Derivative [Line Items] | ' | ' |
Buy Contracts | $3,968 | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) | Nov. 02, 2013 |
Fair Value, Measurement Inputs, Disclosure [Line Items] | ' |
Percentage of total amount of assets measured using Level 3 valuation methodologies to total assets | 0.30% |
Financial_Assets_that_were_Acc
Financial Assets that were Accounted for at Fair Value (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Total assets | $1,259,655 | $1,355,353 |
Cash equivalents | Money market funds | ' | ' |
Assets | ' | ' |
Cash equivalents | 8,378 | 21,523 |
Cash equivalents | U.S. government and agency debt | ' | ' |
Assets | ' | ' |
Cash equivalents | ' | 27,029 |
Cash equivalents | Time deposits | ' | ' |
Assets | ' | ' |
Cash equivalents | 216,359 | 119,874 |
Cash equivalents | Municipal debt securities | ' | ' |
Assets | ' | ' |
Cash equivalents | 5,700 | ' |
Cash equivalents | Corporate debt securities | ' | ' |
Assets | ' | ' |
Cash equivalents | 1,600 | ' |
Short-term Investments | U.S. government and agency debt | ' | ' |
Assets | ' | ' |
Investments | 309,263 | 318,479 |
Short-term Investments | Time deposits | ' | ' |
Assets | ' | ' |
Investments | ' | 188,000 |
Short-term Investments | Municipal debt securities | ' | ' |
Assets | ' | ' |
Investments | 14,247 | ' |
Short-term Investments | Corporate debt securities | ' | ' |
Assets | ' | ' |
Investments | 589,492 | 579,624 |
Short-term Investments | Asset-backed Securities | ' | ' |
Assets | ' | ' |
Investments | 74,444 | 76,615 |
Short-term Investments | Foreign government and agency debt | ' | ' |
Assets | ' | ' |
Investments | 20,292 | 4,319 |
Prepaid expenses and other current assets | Forward contracts | ' | ' |
Assets | ' | ' |
Prepaid expenses and other current assets | 1,618 | 1,144 |
Long-term investments | Auction rate securities | ' | ' |
Assets | ' | ' |
Investments | 16,158 | 16,769 |
Other non-current assets | Severance Pay Fund | ' | ' |
Assets | ' | ' |
Other non-current asset | 2,104 | 1,977 |
Level 1 | ' | ' |
Assets | ' | ' |
Total assets | 317,641 | 367,031 |
Level 1 | Cash equivalents | Money market funds | ' | ' |
Assets | ' | ' |
Cash equivalents | 8,378 | 21,523 |
Level 1 | Cash equivalents | U.S. government and agency debt | ' | ' |
Assets | ' | ' |
Cash equivalents | ' | 27,029 |
Level 1 | Short-term Investments | U.S. government and agency debt | ' | ' |
Assets | ' | ' |
Investments | 309,263 | 318,479 |
Level 2 | ' | ' |
Assets | ' | ' |
Total assets | 925,856 | 971,553 |
Level 2 | Cash equivalents | Time deposits | ' | ' |
Assets | ' | ' |
Cash equivalents | 216,359 | 119,874 |
Level 2 | Cash equivalents | Municipal debt securities | ' | ' |
Assets | ' | ' |
Cash equivalents | 5,700 | ' |
Level 2 | Cash equivalents | Corporate debt securities | ' | ' |
Assets | ' | ' |
Cash equivalents | 1,600 | ' |
Level 2 | Short-term Investments | Time deposits | ' | ' |
Assets | ' | ' |
Investments | ' | 188,000 |
Level 2 | Short-term Investments | Municipal debt securities | ' | ' |
Assets | ' | ' |
Investments | 14,247 | ' |
Level 2 | Short-term Investments | Corporate debt securities | ' | ' |
Assets | ' | ' |
Investments | 589,492 | 579,624 |
Level 2 | Short-term Investments | Asset-backed Securities | ' | ' |
Assets | ' | ' |
Investments | 74,444 | 76,615 |
Level 2 | Short-term Investments | Foreign government and agency debt | ' | ' |
Assets | ' | ' |
Investments | 20,292 | 4,319 |
Level 2 | Prepaid expenses and other current assets | Forward contracts | ' | ' |
Assets | ' | ' |
Prepaid expenses and other current assets | 1,618 | 1,144 |
Level 2 | Other non-current assets | Severance Pay Fund | ' | ' |
Assets | ' | ' |
Other non-current asset | 2,104 | 1,977 |
Level 3 | ' | ' |
Assets | ' | ' |
Total assets | 16,158 | 16,769 |
Level 3 | Long-term investments | Auction rate securities | ' | ' |
Assets | ' | ' |
Investments | $16,158 | $16,769 |
Summary_of_Change_in_Fair_Valu
Summary of Change in Fair Values for Level Three Items (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | $16,769 | $23,215 |
Sales and redemptions | -300 | -5,000 |
Unrealized losses included in accumulated other comprehensive income | -311 | -112 |
Ending balance | $16,158 | $18,103 |
Carrying_Value_of_Goodwill_Det
Carrying Value of Goodwill (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Nov. 02, 2013 |
Goodwill [Line Items] | ' |
Beginning balance | $2,032,138 |
Additions due to business combinations | 400 |
Ending balance | $2,032,538 |
Acquired_Intangible_Assets_Net
Acquired Intangible Assets Net (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Feb. 02, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross Carrying Amounts | $297,126 | $293,740 | |
Accumulated Amortization and Write-Offs | -236,054 | -204,085 | |
Net Carrying Amount | 61,072 | 89,655 | |
Purchased technology | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross Carrying Amounts | 54,690 | 54,690 | |
Accumulated Amortization and Write-Offs | -25,313 | -18,552 | |
Net Carrying Amount | 29,377 | 36,138 | |
Purchased technology | Minimum | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Useful Lives | '4 years | ' | |
Purchased technology | Maximum | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Useful Lives | '7 years | ' | |
Core technology | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross Carrying Amounts | 138,650 | 138,650 | |
Accumulated Amortization and Write-Offs | -137,793 | -123,298 | |
Net Carrying Amount | 857 | 15,352 | |
Core technology | Minimum | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Useful Lives | '5 years | ' | |
Core technology | Maximum | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Useful Lives | '8 years | ' | |
Trade names | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Useful Lives | '5 years | ' | |
Gross Carrying Amounts | 1,300 | 1,300 | |
Accumulated Amortization and Write-Offs | -503 | -308 | |
Net Carrying Amount | 797 | 992 | |
Customer intangibles | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross Carrying Amounts | 89,400 | 89,400 | |
Accumulated Amortization and Write-Offs | -72,445 | -61,927 | |
Net Carrying Amount | 16,955 | 27,473 | |
Customer intangibles | Minimum | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Useful Lives | '5 years | ' | |
Customer intangibles | Maximum | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Useful Lives | '7 years | ' | |
In-process research and development | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Useful Lives | ' | [1] | ' |
Gross Carrying Amounts | 13,086 | 9,700 | |
Net Carrying Amount | $13,086 | $9,700 | |
[1] | Upon completion of projects, the related in-process research and development ("IPR&D") assets will be amortized over its estimated useful life. If any of the projects are abandoned or the forecast of the project indicates that the fair value is less than the carrying amount, the Company will be required to write down the related IPR&D asset. |
Future_Amortization_Expense_of
Future Amortization Expense of Identified Intangibles (Detail) (In Process Research and Development Excluded, USD $) | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |
In Process Research and Development Excluded | ' |
Fiscal year | ' |
Remainder of fiscal 2014 | $3,809 |
2015 | 14,942 |
2016 | 12,203 |
2017 | 11,018 |
2018 | 5,590 |
Thereafter | 424 |
Finite-Lived Intangible Assets, Net, Total | $47,986 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | |
Facility | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | $4,208,000 | $129,000 | $4,614,000 | $1,103,000 |
Severance expenses | 2,800,000 | ' | ' | ' |
Other exit related costs | 1,300,000 | ' | ' | ' |
Write off of equipment | $100,000 | ' | ' | ' |
Number of facilities | 2 | ' | ' | ' |
Restructuring_Charges_Detail
Restructuring Charges (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | $4,208 | $129 | $4,614 | $1,103 |
Research and development | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 2,886 | 2 | 2,886 | 46 |
Selling and marketing | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | 795 | -3 | 795 | -3 |
General and administrative | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges | $527 | $130 | $933 | $1,060 |
Analysis_of_the_Components_of_
Analysis of the Components of the Restructuring Charges and the Payments Made (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Nov. 02, 2013 |
Restructuring Acquisition and Integration Charges [Line Items] | ' |
Beginning balance | $2,855 |
Restructuring charges | 4,553 |
Net cash payments | -2,147 |
Ending balance | 5,261 |
Severance and Related Costs | ' |
Restructuring Acquisition and Integration Charges [Line Items] | ' |
Restructuring charges | 2,786 |
Net cash payments | -642 |
Ending balance | 2,144 |
Facilities and Related Costs | ' |
Restructuring Acquisition and Integration Charges [Line Items] | ' |
Beginning balance | 2,855 |
Restructuring charges | 1,554 |
Net cash payments | -1,323 |
Ending balance | 3,086 |
Other Exit-Related Costs | ' |
Restructuring Acquisition and Integration Charges [Line Items] | ' |
Restructuring charges | 213 |
Net cash payments | -182 |
Ending balance | $31 |
Income_Tax_Additional_Informat
Income Tax - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Income Taxes [Line Items] | ' | ' | ' | ' |
Current income tax liability | $4.30 | $5.90 | $11.30 | $14.50 |
Reduction in unrecognized tax benefits arising from the expiration of statute of limitations | 7.3 | 5.5 | 23.8 | 11.5 |
Tax benefit due to return-to-provision adjustments | 2.5 | ' | 2.5 | ' |
Tax benefit from an increase in deferred tax asset due to change in statutory tax rate | 0.9 | ' | 0.9 | ' |
Settlements of audits in non-U.S. jurisdictions | ' | ' | 0.7 | ' |
Estimated possible decrease of uncertain tax positions within next 12 months | -20 | ' | -20 | ' |
Tax holidays, tax savings amount | ' | ' | 14.9 | ' |
Maximum | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Tax holidays, per share effect on earning | ' | ' | $0.01 | ' |
Audit Settlement One | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Settlements of audits in non-U.S. jurisdictions | 3.5 | ' | ' | ' |
Audit Settlement Two | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Settlements of audits in non-U.S. jurisdictions | $4.10 | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Nov. 02, 2013 | Dec. 26, 2012 | Aug. 06, 2012 | Nov. 02, 2013 |
Carnegie Mellon University | Lake Cherokee Patent Litigation | Manufacturing Expense | ||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Purchase commitment, outstanding commitment | ' | ' | ' | $240,200,000 |
Charges related to certain current legal proceedings | 10,400,000 | ' | ' | ' |
Date of lawsuit filed | ' | 6-Mar-09 | 30-Jun-10 | ' |
Damages in the amount alleged in pre-trial proceedings | ' | 1,170,000,000 | ' | ' |
Pre-judgment interest | ' | 322,000,000 | ' | ' |
Low end of the possible range of loss | ' | 0 | ' | ' |
Previously claimed damages reduced amount | ' | ' | $193,000,000 | ' |
Stock_Option_Plan_Activity_Det
Stock Option Plan Activity (Detail) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 |
Options Outstanding | ' |
Beginning Balance | 52,396 |
Granted | 18,763 |
Exercised | -7,275 |
Canceled/Forfeited | -2,684 |
Ending Balance | 61,200 |
Weighted Average Exercise Price | ' |
Beginning Balance | $13.39 |
Granted | $10.79 |
Exercised | $8.36 |
Canceled/Forfeited | $15.23 |
Ending Balance | $13.11 |
Time Based Option Award | ' |
Options Outstanding | ' |
Beginning Balance | 49,637 |
Granted | 18,763 |
Exercised | -7,275 |
Canceled/Forfeited | -2,631 |
Ending Balance | 58,494 |
Vested or expected to vest at November 2, 2013 | 54,756 |
Exercisable at November 2, 2013 | 33,914 |
Weighted Average Exercise Price | ' |
Beginning Balance | $13.28 |
Granted | $10.79 |
Exercised | $8.36 |
Canceled/Forfeited | $15.22 |
Ending Balance | $13.01 |
Vested or expected to vest at November 2, 2013 | $13.11 |
Exercisable at November 2, 2013 | $13.85 |
Market Based Option Award | ' |
Options Outstanding | ' |
Beginning Balance | 2,759 |
Canceled/Forfeited | -53 |
Ending Balance | 2,706 |
Weighted Average Exercise Price | ' |
Beginning Balance | $15.43 |
Canceled/Forfeited | $15.43 |
Ending Balance | $15.43 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 21, 2013 | Nov. 21, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 |
Common Stock Repurchase Program | Common Stock Repurchase Program | Common Stock Repurchase Program | Common Stock Repurchase Program | Employee Stock Purchase Plan, 2000 Restated Plan | Employee Stock Purchase Plan, 2000 Restated Plan | Employee Stock Purchase Plan, 2000 Restated Plan | Employee Stock Purchase Plan, 2000 Restated Plan | Subsequent Event | Subsequent Event | Time Based Option Award | Market Based Option Award | Restricted Stock Units (RSUs) | |||||
Dividend Declared | |||||||||||||||||
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested and expected to vest, aggregate intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $66,500,000 | ' | ' |
Options vested and expected to vest, weighted average remaining contractual term (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 7 months 6 days | '7 years 6 months | ' |
Options exercisable, aggregate intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,100,000 | ' | ' |
Options exercisable, weighted average remaining contractual term (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 6 months | ' | ' |
Aggregate intrinsic value of stock options exercised | 5,600,000 | 6,000,000 | 21,700,000 | 29,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing stock price | $12.02 | ' | $12.02 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized share based compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | 27,900,000 | ' | 27,900,000 | ' | ' | ' | 71,400,000 | 700,000 | 106,000,000 |
Unrecognized share based compensation cost, weighted-average period of recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 1 month 6 days | '2 months 12 days | '1 year 10 months 24 days |
Restricted stock units, aggregate intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 127,800,000 |
Restricted stock units vested and expected to vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.6 |
Employee stock purchase plan, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 5 | 3.3 | ' | ' | ' | ' | ' |
Employee stock purchase plan, weighted-average price | ' | ' | ' | ' | ' | ' | ' | ' | $7.34 | $10.40 | $7.34 | $10.40 | ' | ' | ' | ' | ' |
Share repurchase program, shares repurchased | ' | ' | ' | ' | 6.1 | 22.9 | 33.2 | 57.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase program, amount repurchased | ' | ' | ' | ' | 71,300,000 | 203,000,000 | 354,100,000 | 676,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase program, shares repurchased | ' | ' | ' | ' | 216.9 | ' | 216.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase program, total amount of repurchases | ' | ' | ' | ' | 2,700,000,000 | ' | 2,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase program, remaining amount | ' | ' | ' | ' | 258,400,000 | ' | 258,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per share, paid | $0.06 | $0.06 | $0.18 | $0.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.06 | ' | ' | ' |
Total dividends paid | $29,600,000 | $33,500,000 | $89,560,000 | $67,013,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared, date to be paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23-Dec-13 | ' | ' | ' | ' |
Dividends declared, date of record | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12-Dec-13 | ' | ' | ' | ' |
Activity_Related_to_Non_Vested
Activity Related to Non Vested Portion of Restricted Stock Units (Detail) (Restricted Stock Units (RSUs), USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 |
Restricted Stock Units (RSUs) | ' |
Restricted Stock Units Outstanding | ' |
Beginning Balance | 12,739 |
Granted | 3,509 |
Vested | -3,729 |
Canceled/Forfeited | -902 |
Ending Balance | 11,617 |
Weighted Average Grant Date Fair Value | ' |
Beginning Balance | $15.78 |
Granted | $10.56 |
Vested | $16.31 |
Canceled/Forfeited | $14.40 |
Ending Balance | $14.14 |
Total_Stock_Compensation_by_Ex
Total Stock Compensation by Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $43,201 | $30,374 | $117,805 | $90,794 |
Cost of goods sold | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 2,531 | 1,944 | 6,266 | 5,842 |
Research and development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 30,084 | 22,565 | 82,345 | 62,152 |
Selling and marketing | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 3,738 | 3,101 | 10,778 | 9,595 |
General and administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $6,848 | $2,764 | $18,416 | $13,205 |
Share_Based_Compensation_Addit
Share Based Compensation - Additional Information (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Millions, unless otherwise specified | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock-based compensation capitalized in inventory | $2 | $1.50 |
Weighted_Average_Assumptions_u
Weighted Average Assumptions used to Calculate Fair Value of Each Time Based Equity Award Using Black Scholes Option Pricing Model (Detail) (Time Based Option Award, USD $) | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average fair value | $3.91 | $3.27 | $3.42 | $5.57 |
Expected volatility | 42.00% | 46.00% | 45.00% | 44.00% |
Expected term (in years) | '5 years | '4 years 9 months 18 days | '5 years | '4 years 9 months 18 days |
Risk-free interest rate | 1.50% | 0.70% | 0.80% | 0.90% |
Expected dividend yield | 2.00% | 2.30% | 2.40% | ' |
Minimum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | 0.00% |
Maximum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | 2.30% |
Valuation_Assumptions_Detail
Valuation Assumptions (Detail) (Employee Stock Purchase Plan, USD $) | 9 Months Ended | |
Nov. 02, 2013 | Oct. 27, 2012 | |
Employee Stock Purchase Plan | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Estimated fair value | $3.45 | $3.77 |
Volatility | 40.00% | 39.00% |
Expected term (in years) | '1 year 3 months 18 days | '1 year 3 months 18 days |
Risk-free interest rate | 0.20% | 0.20% |
Dividend yield | 2.20% | 2.00% |