Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
3-May-14 | 30-May-14 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 3-May-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
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 | ' | 508,200,000 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,141,304 | $965,750 |
Short-term investments | 1,005,141 | 1,003,655 |
Accounts receivable, net | 517,074 | 453,496 |
Inventories | 350,649 | 347,861 |
Prepaid expenses and other current assets | 56,938 | 56,952 |
Deferred income taxes | 15,877 | 11,506 |
Total current assets | 3,086,983 | 2,839,220 |
Property and equipment, net | 349,321 | 356,165 |
Long-term investments | 13,456 | 16,279 |
Goodwill | 2,029,945 | 2,029,945 |
Acquired intangible assets, net | 41,861 | 49,035 |
Other non-current assets | 161,406 | 160,366 |
Total assets | 5,682,972 | 5,451,010 |
Current liabilities: | ' | ' |
Accounts payable | 409,005 | 316,389 |
Accrued liabilities | 146,667 | 161,762 |
Accrued employee compensation | 141,409 | 111,408 |
Deferred income | 92,679 | 61,747 |
Total current liabilities | 789,760 | 651,306 |
Non-current income taxes payable | 78,136 | 81,325 |
Other non-current liabilities | 45,589 | 42,469 |
Total liabilities | 913,485 | 775,100 |
Commitments and contingencies (Note 10) | ' | ' |
Shareholders' equity: | ' | ' |
Common shares, $0.002 par value | 1,016 | 1,005 |
Additional paid-in capital | 2,966,097 | 2,941,650 |
Accumulated other comprehensive income | 409 | 597 |
Retained earnings | 1,801,965 | 1,732,658 |
Total shareholders' equity | 4,769,487 | 4,675,910 |
Total liabilities and shareholders' equity | $5,682,972 | $5,451,010 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 3-May-14 | Feb. 01, 2014 |
Common shares, par value | $0.00 | $0.00 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 |
Net revenue | $957,830 | $734,369 |
Operating costs and expenses: | ' | ' |
Cost of goods sold | 493,860 | 335,438 |
Research and development | 295,363 | 279,052 |
Selling and marketing | 38,358 | 39,989 |
General and administrative | 30,573 | 26,323 |
Amortization and write-off of acquired intangible assets | 6,689 | 10,686 |
Total operating costs and expenses | 864,843 | 691,488 |
Operating income | 92,987 | 42,881 |
Interest and other income, net | 1,925 | 3,160 |
Income before income taxes | 94,912 | 46,041 |
Benefit for income taxes | -4,567 | -7,168 |
Net income | $99,479 | $53,209 |
Net income per share: | ' | ' |
Basic | $0.20 | $0.11 |
Diluted | $0.19 | $0.11 |
Weighted average shares: | ' | ' |
Basic | 505,105 | 502,180 |
Diluted | 520,751 | 505,387 |
Cash dividend declared per share | $0.06 | $0.06 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Net income | $99,479 | $53,209 |
Other comprehensive income, net of tax: | ' | ' |
Net change in unrealized gain/loss on marketable securities | 378 | 1,052 |
Net change in unrealized gain/loss on auction rate securities | 177 | 81 |
Net change in unrealized gain/loss on cash flow hedges | -743 | -105 |
Other comprehensive income (loss), net | -188 | 1,028 |
Comprehensive income | $99,291 | $54,237 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Cash flows from operating activities: | ' | ' |
Net income | $99,479 | $53,209 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 27,006 | 24,966 |
Share-based compensation | 29,969 | 33,513 |
Amortization and write-off of acquired intangible assets | 7,174 | 10,686 |
Other expense, net | 1,470 | 2,523 |
Excess tax benefits from share-based compensation | -44 | -7 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -63,578 | -40,112 |
Inventories | -3,105 | -20,123 |
Prepaid expenses and other assets | -2,161 | 6,802 |
Accounts payable | 85,128 | 28,936 |
Accrued liabilities and other non-current liabilities | -7,134 | -20,081 |
Accrued employee compensation | 30,001 | 4,423 |
Deferred income | 30,932 | -880 |
Net cash provided by operating activities | 235,137 | 83,855 |
Cash flows from investing activities: | ' | ' |
Purchases of available-for-sale securities | -181,889 | -306,838 |
Sales and maturities of available-for-sale securities | 182,311 | 335,771 |
Investments in privately-held companies | -441 | ' |
Cash paid for acquisition, net | ' | -2,551 |
Purchases of technology licenses | -8,111 | -5,860 |
Purchases of property and equipment | -16,131 | -20,080 |
Net cash provided (used in) by investing activities | -24,261 | 442 |
Cash flows from financing activities: | ' | ' |
Repurchase of common stock | ' | -216,694 |
Proceeds from employee stock plans | 19,092 | 19,805 |
Minimum tax withholding paid on behalf of employees for net share settlement | -24,286 | -9,378 |
Dividend payments to shareholders | -30,172 | -30,253 |
Payments on technology license obligations | ' | -5,317 |
Excess tax benefits from share-based compensation | 44 | 7 |
Net cash used in financing activities | -35,322 | -241,830 |
Net increase (decrease) in cash and cash equivalents | 175,554 | -157,533 |
Cash and cash equivalents at beginning of period | 965,750 | 751,953 |
Cash and cash equivalents at end of period | $1,141,304 | $594,420 |
The_Company_and_Basis_of_Prese
The Company and Basis of Presentation | 3 Months Ended |
3-May-14 | |
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 and stand alone integrated circuits. The majority of the Company’s product portfolio leverages the ARM technology portfolio. 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, connectivity and other consumer electronics. | |
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 2015 and 2014 each have a 52-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 May 3, 2014, the results of its operations for the three months ended May 3, 2014 and May 4, 2013, its comprehensive income for the three months ended May 3, 2014 and May 4, 2013, and its cash flows for the three months ended May 3, 2014 and May 4, 2013. The February 1, 2014 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 1, 2014, 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 1, 2014 as filed on March 27, 2014 with the Securities and Exchange Commission. The results of operations for the three months ended May 3, 2014 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 ongoing 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 | 3 Months Ended |
3-May-14 | |
Recent Accounting Pronouncements | ' |
Note 2. Recent Accounting Pronouncements | |
Accounting Pronouncements Not Yet Effective | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued an amendment to its guidance regarding the reporting requirements of discontinued operations. Under this amended guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. In addition, this amendment requires an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections, respectively, of the statement of financial position and additional disclosures about discontinued operations. This amended guidance is effective for annual and interim reporting periods beginning after December 15, 2014. The Company expects this guidance to have an impact on its financial statements only in the event of a future disposition which meets the criteria. | |
In May 2014, the FASB issued a new standard on the recognition of revenue from contracts with customers, which includes a single set of rules and criteria for revenue recognition to be used across all industries. This standard is effective for annual and interim reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact from the adoption of the standard on its financial statements. |
Investments
Investments | 3 Months Ended | ||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
Note 3. Investments | |||||||||||||||||||||||||
The following tables summarize the Company’s investments (in thousands): | |||||||||||||||||||||||||
May 3, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Corporate debt securities | $ | 596,691 | $ | 3,028 | $ | (303 | ) | $ | 599,416 | ||||||||||||||||
U.S. government and agency debt | 290,270 | 129 | (3 | ) | 290,396 | ||||||||||||||||||||
Asset backed securities | 74,525 | 83 | (43 | ) | 74,565 | ||||||||||||||||||||
Foreign government and agency debt | 25,442 | 25 | (42 | ) | 25,425 | ||||||||||||||||||||
Municipal debt securities | 15,301 | 42 | (4 | ) | 15,339 | ||||||||||||||||||||
Total short-term investments | 1,002,229 | 3,307 | (395 | ) | 1,005,141 | ||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Auction rate securities | 16,150 | — | (2,694 | ) | 13,456 | ||||||||||||||||||||
Total long-term investments | 16,150 | — | (2,694 | ) | 13,456 | ||||||||||||||||||||
Total investments | $ | 1,018,379 | $ | 3,307 | $ | (3,089 | ) | $ | 1,018,597 | ||||||||||||||||
February 1, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Corporate debt securities | $ | 587,095 | $ | 2,789 | $ | (370 | ) | $ | 589,514 | ||||||||||||||||
U.S. government and agency debt | 301,423 | 128 | (72 | ) | 301,479 | ||||||||||||||||||||
Asset backed securities | 76,220 | 89 | (38 | ) | 76,271 | ||||||||||||||||||||
Foreign government and agency debt | 20,324 | 12 | (44 | ) | 20,292 | ||||||||||||||||||||
Municipal debt securities | 16,059 | 44 | (4 | ) | 16,099 | ||||||||||||||||||||
Total short-term investments | 1,001,121 | 3,062 | (528 | ) | 1,003,655 | ||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Auction rate securities | 19,150 | — | (2,871 | ) | 16,279 | ||||||||||||||||||||
Total long-term investments | 19,150 | — | (2,871 | ) | 16,279 | ||||||||||||||||||||
Total investments | $ | 1,020,271 | $ | 3,062 | $ | (3,399 | ) | $ | 1,019,934 | ||||||||||||||||
As of May 3, 2014, the Company’s investment portfolio included auction rate securities with an aggregate par value of $16.2 million. 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 May 3, 2014 was $2.7 million less than the par value and was recorded in long-term investments. Based on the Company’s balance of approximately $2.1 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. | |||||||||||||||||||||||||
Gross realized gains and gross realized losses on sales of available-for-sales securities are presented in the following tables (in thousands): | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
May 3, | May 4, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross realized gains | $ | 472 | $ | 560 | |||||||||||||||||||||
Gross realized losses | $ | (25 | ) | $ | (23 | ) | |||||||||||||||||||
Total net realized gains | $ | 447 | $ | 537 | |||||||||||||||||||||
The contractual maturities of available-for-sale securities are presented in the following table (in thousands): | |||||||||||||||||||||||||
May 3, 2014 | February 1, 2014 | ||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||
Due in one year or less | $ | 306,987 | $ | 307,341 | $ | 309,543 | $ | 309,861 | |||||||||||||||||
Due between one and five years | 689,928 | 692,499 | 686,062 | 688,280 | |||||||||||||||||||||
Due over five years | 21,464 | 18,757 | 24,666 | 21,793 | |||||||||||||||||||||
$ | 1,018,379 | $ | 1,018,597 | $ | 1,020,271 | $ | 1,019,934 | ||||||||||||||||||
For individual securities that have been in a continuous 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): | |||||||||||||||||||||||||
May 3, 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Corporate debt securities | $ | 77,768 | $ | (290 | ) | $ | 4,796 | $ | (13 | ) | $ | 82,564 | $ | (303 | ) | ||||||||||
U.S. government and agency debt | 36,811 | (3 | ) | — | — | 36,811 | (3 | ) | |||||||||||||||||
Asset backed securities | 10,196 | (21 | ) | 1,907 | (22 | ) | 12,103 | (43 | ) | ||||||||||||||||
Foreign government and agency debt | 19,417 | (42 | ) | — | — | 19,417 | (42 | ) | |||||||||||||||||
Municipal debt securities | 446 | (4 | ) | — | — | 446 | (4 | ) | |||||||||||||||||
Auction rate securities | — | — | 13,456 | (2,694 | ) | 13,456 | (2,694 | ) | |||||||||||||||||
Total securities | $ | 144,638 | $ | (360 | ) | $ | 20,159 | $ | (2,729 | ) | $ | 164,797 | $ | (3,089 | ) | ||||||||||
February 1, 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Corporate debt securities | $ | 110,903 | $ | (366 | ) | $ | 2,105 | $ | (4 | ) | $ | 113,008 | $ | (370 | ) | ||||||||||
U.S. government and agency debt | 93,118 | (72 | ) | — | — | 93,118 | (72 | ) | |||||||||||||||||
Asset backed securities | 18,865 | (19 | ) | 1,912 | (19 | ) | 20,777 | (38 | ) | ||||||||||||||||
Foreign government and agency debt | 14,299 | (44 | ) | — | — | 14,299 | (44 | ) | |||||||||||||||||
Municipal debt securities | 723 | (4 | ) | — | — | 723 | (4 | ) | |||||||||||||||||
Auction rate securities | — | — | 16,279 | (2,871 | ) | 16,279 | (2,871 | ) | |||||||||||||||||
Total securities | $ | 237,908 | $ | (505 | ) | $ | 20,296 | $ | (2,894 | ) | $ | 258,204 | $ | (3,399 | ) | ||||||||||
Supplemental_Financial_Informa
Supplemental Financial Information | 3 Months Ended | ||||||||||||||||
3-May-14 | |||||||||||||||||
Supplemental Financial Information | ' | ||||||||||||||||
Note 4. Supplemental Financial Information (in thousands) | |||||||||||||||||
May 3, | February 1, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Inventories: | |||||||||||||||||
Work-in-process | $ | 239,992 | $ | 195,495 | |||||||||||||
Finished goods | 110,657 | 152,366 | |||||||||||||||
Total inventories | $ | 350,649 | $ | 347,861 | |||||||||||||
May 3, | February 1, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Property and equipment, net: | |||||||||||||||||
Machinery and equipment | $ | 572,644 | $ | 562,038 | |||||||||||||
Buildings | 144,320 | 144,320 | |||||||||||||||
Computer software | 95,417 | 96,096 | |||||||||||||||
Land | 53,373 | 53,373 | |||||||||||||||
Building improvements | 49,645 | 49,645 | |||||||||||||||
Leasehold improvements | 49,551 | 49,060 | |||||||||||||||
Furniture and fixtures | 27,814 | 27,621 | |||||||||||||||
Construction in progress | 1,255 | 2,911 | |||||||||||||||
994,019 | 985,064 | ||||||||||||||||
Less: Accumulated depreciation and amortization | (644,698 | ) | (628,899 | ) | |||||||||||||
Total property and equipment, net | $ | 349,321 | $ | 356,165 | |||||||||||||
May 3, | February 1, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Other non-current assets: | |||||||||||||||||
Technology and other licenses | $ | 77,625 | $ | 83,521 | |||||||||||||
Deferred tax assets | 20,686 | 19,282 | |||||||||||||||
Investments in privately-held companies | 15,006 | 14,565 | |||||||||||||||
Prepaid land use rights | 13,666 | 13,744 | |||||||||||||||
Deposits | 12,546 | 12,433 | |||||||||||||||
Other | 21,877 | 16,821 | |||||||||||||||
Total other non-current assets | $ | 161,406 | $ | 160,366 | |||||||||||||
May 3, | February 1, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Accrued liabilities: | |||||||||||||||||
Accrued rebates | $ | 49,854 | $ | 61,616 | |||||||||||||
Accrued royalties | 25,041 | 36,568 | |||||||||||||||
Technology license obligations | 18,275 | 18,482 | |||||||||||||||
Accrued legal expense | 16,771 | 14,589 | |||||||||||||||
Other | 36,726 | 30,507 | |||||||||||||||
Total accrued liabilities | $ | 146,667 | $ | 161,762 | |||||||||||||
May 3, | February 1, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Other non-current liabilities: | |||||||||||||||||
Technology license obligations | $ | 25,316 | $ | 28,959 | |||||||||||||
Long-term accrued employee compensation | 4,645 | 4,370 | |||||||||||||||
Other | 15,628 | 9,140 | |||||||||||||||
Other non-current liabilities | $ | 45,589 | $ | 42,469 | |||||||||||||
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 1, 2014 | $ | 2,534 | $ | (2,871 | ) | $ | 934 | $ | 597 | ||||||||
Other comprehensive income before reclassifications | 798 | 177 | 42 | 1,017 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (420 | ) | — | (785 | ) | (1,205 | ) | ||||||||||
Other comprehensive income (loss) | 378 | 177 | (743 | ) | (188 | ) | |||||||||||
Balance at May 3, 2014 | $ | 2,912 | $ | (2,694 | ) | $ | 191 | $ | 409 | ||||||||
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 income before reclassifications | 1,428 | 81 | 991 | 2,500 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (376 | ) | — | (1,096 | ) | (1,472 | ) | ||||||||||
Other comprehensive income (loss) | 1,052 | 81 | (105 | ) | 1,028 | ||||||||||||
Balance at May 4, 2013 | $ | 3,794 | $ | (2,600 | ) | $ | 982 | $ | 2,176 | ||||||||
The amounts reclassified from accumulated other comprehensive income by components are presented in the following table (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
Affected Line Item in the | May 3, | May 4, | |||||||||||||||
Statement of Operations | 2014 | 2013 | |||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Interest and other income, net | $ | 420 | $ | 376 | |||||||||||||
Cash flow hedges: | |||||||||||||||||
Cost of goods sold | 46 | 61 | |||||||||||||||
Research and development | 675 | 945 | |||||||||||||||
Selling and marketing | 62 | 82 | |||||||||||||||
General and administrative | 2 | 8 | |||||||||||||||
Total | $ | 1,205 | $ | 1,472 | |||||||||||||
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 | |||||||||||||||||
May 3, | May 4, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 99,479 | $ | 53,209 | |||||||||||||
Denominator: | |||||||||||||||||
Weighted average shares — basic | 505,105 | 502,180 | |||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Share-based awards | 15,646 | 3,207 | |||||||||||||||
Weighted average shares — diluted | 520,751 | 505,387 | |||||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.2 | $ | 0.11 | |||||||||||||
Diluted | $ | 0.19 | $ | 0.11 | |||||||||||||
Three Months Ended | |||||||||||||||||
May 3, | May 4, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Anti-dilutive potential shares: | |||||||||||||||||
Weighted average shares outstanding from stock options | 21,453 | 40,631 | |||||||||||||||
Weighted average exercise price | $ | 17.86 | $ | 15.24 | |||||||||||||
Anti-dilutive potential 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 May 3, 2014 and May 4, 2013 was lower than the required market condition. For the three months ended May 3, 2014 and May 4, 2013, there were 2.4 million and 2.8 million anti-dilutive shares, respectively, from stock options that contain market conditions. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||
3-May-14 | |||||||||
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. Beginning in fiscal 2015, the Company entered into contracts to hedge the Chinese yuan in addition to the Israeli shekel as operating expenses in China continue to grow. 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 forward contracts were as follows (in thousands): | |||||||||
Buy Contracts | |||||||||
May 3, | February 1, | ||||||||
2014 | 2014 | ||||||||
Israeli shekel | $ | 57,793 | $ | 39,670 | |||||
Chinese yuan | 55,122 | — | |||||||
Euro | 5,821 | 5,718 | |||||||
Swedish krona | 1,273 | 3,709 | |||||||
$ | 120,009 | $ | 49,097 | ||||||
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, Chinese yuan and Swedish krona. 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 | 3 Months Ended | ||||||||||||||||
3-May-14 | |||||||||||||||||
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 0.2% of total assets as of May 3, 2014. | |||||||||||||||||
The tables below set forth, by level, the Company’s assets that were accounted for at fair value as of May 3, 2014 and February 1, 2014. 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 May 3, 2014 | |||||||||||||||||
Items measured at fair value on a recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. government and agency debt | $ | 15,800 | $ | — | $ | — | $ | 15,800 | |||||||||
Money market funds | 6,893 | — | — | 6,893 | |||||||||||||
Time deposits | — | 209,645 | — | 209,645 | |||||||||||||
Municipal debt securities | — | 2,300 | — | 2,300 | |||||||||||||
Corporate debt securities | — | 2,100 | — | 2,100 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S. government and agency debt | 290,396 | — | — | 290,396 | |||||||||||||
Corporate debt securities | — | 599,416 | — | 599,416 | |||||||||||||
Asset backed securities | — | 74,565 | — | 74,565 | |||||||||||||
Foreign government and agency debt | — | 25,425 | — | 25,425 | |||||||||||||
Municipal debt securities | — | 15,339 | — | 15,339 | |||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||
Foreign currency forward contracts | — | 650 | — | 650 | |||||||||||||
Long-term investments: | |||||||||||||||||
Auction rate securities | — | — | 13,456 | 13,456 | |||||||||||||
Other non-current assets: | |||||||||||||||||
Severance pay fund | — | 2,194 | — | 2,194 | |||||||||||||
Total assets | $ | 313,089 | $ | 931,634 | $ | 13,456 | $ | 1,258,179 | |||||||||
Liabilities | |||||||||||||||||
Accrued liabilities: | |||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 422 | $ | — | $ | 422 | |||||||||
Level 1 | Level 2 | Level 3 | Portion of Carrying | ||||||||||||||
Value Measured at | |||||||||||||||||
Fair Value | |||||||||||||||||
at February 1, 2014 | |||||||||||||||||
Items measured at fair value on a recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. government and agency debt | $ | 11,999 | $ | — | $ | — | $ | 11,999 | |||||||||
Money market funds | 2,804 | — | — | 2,804 | |||||||||||||
Time deposits | — | 247,958 | — | 247,958 | |||||||||||||
Municipal debt securities | — | 4,800 | — | 4,800 | |||||||||||||
Corporate debt securities | — | 3,400 | — | 3,400 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S. government and agency debt | 301,479 | — | — | 301,479 | |||||||||||||
Corporate debt securities | — | 589,514 | — | 589,514 | |||||||||||||
Asset backed securities | — | 76,271 | — | 76,271 | |||||||||||||
Foreign government and agency debt | — | 20,292 | — | 20,292 | |||||||||||||
Municipal debt securities | — | 16,099 | — | 16,099 | |||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||
Foreign currency forward contracts | — | 1,012 | — | 1,012 | |||||||||||||
Long-term investments: | |||||||||||||||||
Auction rate securities | — | — | 16,279 | 16,279 | |||||||||||||
Other non-current assets: | |||||||||||||||||
Severance pay fund | — | 2,193 | — | 2,193 | |||||||||||||
Total assets | $ | 316,282 | $ | 961,539 | $ | 16,279 | $ | 1,294,100 | |||||||||
Liabilities | |||||||||||||||||
Accrued liabilities: | |||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 26 | $ | — | $ | 26 | |||||||||
The following table summarizes the change in fair value for Level 3 assets (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
May 3, | May 4, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Beginning balance | $ | 16,279 | $ | 16,769 | |||||||||||||
Sales and redemptions | (3,000 | ) | (300 | ) | |||||||||||||
Unrealized losses included in accumulated other comprehensive income | 177 | 81 | |||||||||||||||
Ending balance | $ | 13,456 | $ | 16,550 | |||||||||||||
Acquired_Intangible_Assets_Net
Acquired Intangible Assets, Net | 3 Months Ended | ||||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||||
Acquired Intangible Assets, Net | ' | ||||||||||||||||||||||||||
Note 7. Acquired Intangible Assets, Net | |||||||||||||||||||||||||||
The carrying amount of acquired intangible assets, net, are as follows (in thousands): | |||||||||||||||||||||||||||
May 3, 2014 | February 1, 2014 | ||||||||||||||||||||||||||
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 -6 years | $ | 49,240 | $ | (22,879 | ) | $ | 26,361 | $ | 49,240 | $ | (20,634 | ) | $ | 28,606 | ||||||||||||
Core technology | 5 - 8 years | 2,350 | (1,672 | ) | 678 | 2,350 | (1,583 | ) | 767 | ||||||||||||||||||
Trade names | 5 years | 1,300 | (632 | ) | 668 | 1,300 | (568 | ) | 732 | ||||||||||||||||||
Customer intangibles | 5 - 6 years | 28,600 | (14,446 | ) | 14,154 | 28,600 | (13,056 | ) | 15,544 | ||||||||||||||||||
IPR&D | — | — | — | 3,386 | — | 3,386 | |||||||||||||||||||||
Total intangible assets, net | $ | 81,490 | $ | (39,629 | ) | $ | 41,861 | $ | 84,876 | $ | (35,841 | ) | $ | 49,035 | |||||||||||||
The Company recorded a charge to write-off $3.4 million of IPR&D in the three months ended May 3, 2014, upon the Company’s decision to discontinue the related project. | |||||||||||||||||||||||||||
Based on the identified intangible assets recorded at May 3, 2014, the future amortization expense for the next five fiscal years is as follows (in thousands): | |||||||||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||||||
Remainder of fiscal 2015 | $ | 11,163 | |||||||||||||||||||||||||
2016 | 12,212 | ||||||||||||||||||||||||||
2017 | 11,027 | ||||||||||||||||||||||||||
2018 | 5,599 | ||||||||||||||||||||||||||
2019 | 1,860 | ||||||||||||||||||||||||||
Thereafter | — | ||||||||||||||||||||||||||
$ | 41,861 | ||||||||||||||||||||||||||
Restructuring
Restructuring | 3 Months Ended | ||||||||||||||||
3-May-14 | |||||||||||||||||
Restructuring | ' | ||||||||||||||||
Note 8. Restructuring | |||||||||||||||||
In connection with ongoing evaluations of its business, the Company decided to streamline its operations, primarily in Israel to align with its overall strategic plan and to discontinue the development of a product it originally acquired from a business that it previously purchased. As a result, the Company recorded a total $8.5 million restructuring charge in the three months ended May 3, 2014. The charge included $4.6 million for severance costs and $0.5 million for other exit-related costs primarily associated with previous facility closures and the write-off of equipment. In addition, the charge included $3.4 million to write off an acquired intangible asset due to the Company’s decision to discontinue the related project. | |||||||||||||||||
During the three months ended May 3, 2014, the Company also continued to make payments and incur ongoing 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 | |||||||||||||||||
May 3, | May 4, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Research and development | $ | 4,682 | $ | — | |||||||||||||
Selling and marketing | 48 | — | |||||||||||||||
General and administrative | 358 | 228 | |||||||||||||||
Write-off of acquired intangible assets | 3,386 | — | |||||||||||||||
$ | 8,474 | $ | 228 | ||||||||||||||
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 three months ended May 3, 2014 (in thousands): | |||||||||||||||||
Severance | Facilities | Other | Total | ||||||||||||||
and Related | and Related | Exit-Related | |||||||||||||||
Costs | Costs | Costs | |||||||||||||||
Balance at February 1, 2014 | $ | 51 | $ | 2,383 | $ | 19 | $ | 2,453 | |||||||||
Restructuring charges | 4,617 | 444 | 10 | 5,071 | |||||||||||||
Net cash payments | (786 | ) | (387 | ) | (29 | ) | (1,202 | ) | |||||||||
Balance at May 3, 2014 | $ | 3,882 | $ | 2,440 | $ | — | $ | 6,322 | |||||||||
The severance costs included in the table above are expected to be paid in the second quarter of fiscal 2015. The facility and related costs primarily represent an adjustment to the estimated sublease rentals related to the lease obligation of a vacated facility. The balance at May 3, 2014 for facility and related costs 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 | 3 Months Ended |
3-May-14 | |
Income Tax | ' |
Note 9. Income Tax | |
The income tax benefit for the three months ended May 3, 2014 included the current income tax liability of $5.7 million, which was offset by tax benefits of $2.5 million from a net reduction in unrecognized tax benefits and $7.8 million from an increase in the net deferred tax assets because of the Company’s continued discussions with the Singapore tax authorities that resulted in an agreement for a major portion of the pre-tax income to be taxed at a new Development and Expansion Incentive. The net reduction in unrecognized tax benefits arose from the release of $4.9 million due to expiration of the statute of limitations, which was reduced by an increase in current unrecognized tax benefit estimates of $1.1 million and a $1.3 million tax expense related to the fiscal year 2014 tax return of a non-U.S. jurisdiction. | |
The income tax benefit for the three months ended May 4, 2013 included the current income tax liability of $1.8 million and $0.7 million in settlements of audits in non-U.S, jurisdictions, which was more than offset by a net reduction in unrecognized tax benefits of $9.7 million for the three months ended May 4, 2013. The net reduction in unrecognized tax benefits primarily arose from the expiration of statute of limitations and from the settlement of two audits in non-U.S. jurisdictions, less increases 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 $18 million from the lapse of the statutes of limitation in various jurisdictions during the next 12 months. | |
The Company operates under tax incentives in certain countries, which may be extended if certain additional requirements are satisfied. The tax incentives are conditional upon meeting certain employment and investment thresholds. The impact of these tax incentives decreased foreign taxes by $3.3 million for the three months ended May 3, 2014 and $2.1 million for the three months ended May 4, 2013. The benefit of the tax incentives on net income per share was less than $0.01 per share for the three months ended May 3, 2014 and May 4, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
3-May-14 | |
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 May 3, 2014, these foundries had incurred approximately $312.6 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 May 3, 2014, the Company has a $17.3 million accrued liability 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. CMU sought in its post-trial motions enhanced damages up to 3 times the jury verdict, pre-judgment interest up to $322 million, post-judgment interest, supplemental damages, 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 any enhancement of the verdict for a separate 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. On December 23, 2013, the District Court denied the motions. On January 8, 2014, CMU filed a motion for telephonic status conference, which was denied on January 28, 2014. On January 14, 2014, the District Court denied the Company’s post-trial motion on laches. On March 31, 2014, the District Court rejected CMU’s motion for an injunction. The District Court also denied CMU’s request for pre-judgment interest, and substantially scaled back CMU’s request for enhanced damages. Based on these decisions, the Court calculated the damages including enhancement to total approximately $1.54 billion, and held that, under its decision, CMU is entitled to post judgment interest and an ongoing royalty. On May 7, 2014, the District Court entered final judgment, from which the Company filed a notice of appeal on May 14, 2014. The Court has required us to report ongoing royalties under the current judgment. Based on the royalty rate assessed by the District Court, such additional royalties through May 3, 2014 would be approximately $250 million. | |
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 could significantly change the assessment of damages. | |
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 I Patent 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 and the briefing was concluded on October 28, 2013. The District Court has not ruled on Lake Cherokee’s post-trial motion. | |
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). A claim construction hearing is currently set for October 30, 2014, and trial is currently scheduled to start on June 18, 2015. | |
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. A claim construction hearing is set for August 5, 2014 and trial is currently scheduled to start on April 13, 2015. | |
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, MSI and the other 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. Oral argument before a Federal Circuit panel was held on April 11, 2014. | |
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. The Federal Circuit Court of Appeals heard oral argument on January 10, 2014, and affirmed the district court’s rulings on January 14, 2014. The deadline for PMS to appeal to the United States Supreme Court passed in mid-April 2014 without PMS taking any further action. | |
France Telecom Litigation. On June 26, 2012, France Telecom S.A. 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 was held on December 13, 2013. On April 14, 2014, the Court denied MSI’s motion for summary judgment of invalidity, and granted MSI’s summary judgment motion concerning certain damages preclusion. Trial is scheduled for September 15, 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, and amended the complaint on February 4, 2013. 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 amended the compliant on January 14, 2013. On April 11, 2014, the Court dismissed both of the above two cases with prejudice pursuant to a settlement and patent license agreement. The settlement did not have a significant impact on the Company’s financial statements. | |
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 and another defendant, alleging infringement of U.S. Patent Nos. 6,473,349 (the “349 patent”) and 6,862,208 (the “208 patent”). The 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. A claim construction hearing is scheduled to occur on or before August 11, 2014 and trial is scheduled to start on March 3, 2015. On March 3, 2014, the District Court dismissed MSI without prejudice. On March 4, 2014, PSS filed a new complaint against MSI, alleging infringement of the ‘349 patent but not the ‘208 patent. A claim construction hearing is currently scheduled to be held by August 11, 2014. Trial is currently scheduled for March 17, 2015. | |
Vantage Point Technology Patent Litigation. On November 21, 2013, Vantage Point Technology, Inc. (“VPT”) filed suit against a third party defendant for patent infringement relating to processor technology. On February 3, 2014, VPT filed an amended complaint against the third party and added MSI as an additional defendant. The complaint seeks unspecified damages. A claim construction hearing is currently scheduled for January 27, 2015. The first trial in the series of VPT cases against various defendants is currently scheduled for July 13, 2015. | |
Voss Litigation. On April 7, 2014, Lee Voss (“Voss”) filed an action asserting putative class action claims on behalf of the Company’s shareholders and derivative claims ostensibly on behalf of the Company in the United States District Court for the Northern District of California, San Jose Division. The complaint alleges that certain officers and directors of the Company breached their fiduciary duties by causing or allowing the Company to engage in the purported willful infringement of certain patents asserted against it in litigation by CMU and by failing to institute adequate internal controls, resulting in an adverse verdict. Additionally, the complaint alleges unjust enrichment and a breach of the duty of honest services by three of the officers. The Company is named as a nominal defendant. Voss requests damages and restitution in unspecified amounts, equitable and/or injunctive relief, and the costs and fees of bringing the action. The action is in the preliminary stages, and discovery has not commenced. The Company’s responsive pleading is due July 23, 2014. | |
Bandspeed Litigation. On May 9, 2014, Bandspeed, Inc. filed suit against MSI, alleging infringement of U.S. Patent Nos. 7,027,418; 7,570,614; 7,477,624; 7,903,608; 8,542,643, purportedly related to certain Bluetooth technology. The complaint seeks unspecified damages. | |
Surety Bond | |
On May 14, 2014, the Company filed a Notice of Appeal to appeal the final judgment issued by the District Court in the CMU litigation. In order to stay the execution of the final judgment pending its appeal, the Company filed a supersedeas bond for $1.54 billion with the District Court. The bond was issued by a consortium of sureties authorized by the U.S. Treasury. If the judgment is affirmed after the completion of all appellate proceedings, and the Company does not thereafter fully satisfy the judgment within thirty days, the sureties are obligated under the bond to make payment to CMU. In support of the bond, the Company entered into separate indemnity agreements with each of the sureties to indemnify the sureties from all costs and payments made under the bond. The indemnity agreements did not require collateral to be posted at the time of the issuance of the bond. Therefore no cash or other Company assets are considered restricted as of the date of this filing. However, the indemnity agreements provide that each of the sureties have the right to demand to be placed in funds or call for collateral under pre-defined events. The indemnity agreements will remain outstanding for as long as the underlying bond remains outstanding. | |
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 | 3 Months Ended | ||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||||||||||
Note 11. Shareholders’ Equity | |||||||||||||||||||||||||
Stock Plans | |||||||||||||||||||||||||
Activity under the Company’s stock option plans for the three months ended May 3, 2014 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 1, 2014 | 49,156 | $ | 13.4 | 2,623 | $ | 15.43 | 51,779 | $ | 13.51 | ||||||||||||||||
Granted | 3,712 | $ | 15.84 | — | $ | — | 3,712 | $ | 15.84 | ||||||||||||||||
Exercised | (1,797 | ) | $ | 10.62 | — | $ | — | (1,797 | ) | $ | 10.62 | ||||||||||||||
Canceled/Forfeited | (1,687 | ) | $ | 15.32 | (329 | ) | $ | 15.43 | (2,016 | ) | $ | 15.34 | |||||||||||||
Balance at May 3, 2014 | 49,384 | $ | 13.62 | 2,294 | $ | 15.43 | 51,678 | $ | 13.7 | ||||||||||||||||
Vested or expected to vest at May 3, 2014 | 45,766 | $ | 13.72 | ||||||||||||||||||||||
Exercisable at May 3, 2014 | 25,024 | $ | 15.04 | ||||||||||||||||||||||
For time-based stock options vested and expected to vest at May 3, 2014, the aggregate intrinsic value was $144.2 million and the weighted average remaining contractual term was 6.3 years. For time-based stock options exercisable at May 3, 2014, the aggregate intrinsic value was $66.9 million and the weighted average remaining contractual term was 4.1 years. The aggregate intrinsic value of stock options exercised during the three months ended May 3, 2014 and May 4, 2013 was $9.4 million and $11.1 million, respectively. There was no aggregate intrinsic value for market-based stock options at May 3, 2014 and the weighted average remaining contractual term of market-based stock options vested and expected to reach the end of the vesting period at May 3, 2014 was 7.0 years. The Company’s closing stock price of $15.83 as reported on the NASDAQ Global Select Market for all in-the-money options as of May 2, 2014 was used to calculate the aggregate intrinsic value. | |||||||||||||||||||||||||
As of May 3, 2014, the unamortized compensation expense for time-based stock options was $67.7 million and market-based stock options were fully amortized in fiscal 2014. The unamortized compensation expense for time-based stock options will be amortized on a straight-line basis and is expected to be recognized over a weighted average period of 2.9 years. | |||||||||||||||||||||||||
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): | |||||||||||||||||||||||||
Time-Based | Performance-Based | Total | |||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Balance at February 1, 2014 | 11,254 | $ | 14.11 | 100 | $ | 10.52 | 11,354 | $ | 14.08 | ||||||||||||||||
Granted | 4,588 | $ | 15.44 | 757 | * | $ | 15.51 | * | 5,345 | $ | 15.45 | ||||||||||||||
Vested | (5,172 | ) | $ | 14.06 | (3 | ) | $ | 10.52 | (5,175 | ) | $ | 14.06 | |||||||||||||
Canceled/Forfeited | (272 | ) | $ | 13.74 | (97 | ) | $ | 10.52 | (369 | ) | $ | 12.9 | |||||||||||||
Balance at May 3, 2014 | 10,398 | $ | 14.77 | 757 | $ | 15.51 | 11,155 | $ | 14.82 | ||||||||||||||||
* | Amounts represent the target number of restricted stock units. Up to 200% of the target restricted stock units may vest if the maximum level for financial and strategic goals is achieved. | ||||||||||||||||||||||||
The aggregate intrinsic value of restricted stock units expected to vest as of May 3, 2014 was $157.9 million. The number of restricted stock units that are expected to vest is 10.0 million shares. | |||||||||||||||||||||||||
As of May 3, 2014, unamortized compensation expense related to restricted stock units was $140.7 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 2.1 years. | |||||||||||||||||||||||||
Executive Performance Awards | |||||||||||||||||||||||||
In April 2014, the Company granted performance-based equity awards to each of our executive officers which are based on their achievement of certain performance goals in fiscal 2015 and 2016. These equity awards include restricted stock units which vest based on financial performance criteria (“Financial Performance RSU”) and restricted stock units which vest based on both financial performance criteria and individual strategic goals (“Strategic Performance Award”). The Financial Performance RSUs will be earned based on the achievement of revenue and modified non-GAAP operating income that have been established at “threshold,” “target” and “maximum” levels, and are subject to the downward discretion of the Executive Compensation Committee of the Board of Directors. Each Financial Performance RSU will vest 50% on the first anniversary of the commencement date based on achievement of fiscal 2015 financial performance criteria and 50% on the second anniversary of the vesting commencement date based on the achievement of fiscal 2016 financial performance criteria. The Strategic Performance Awards will vest based on achievement at the threshold level of either the revenue or modified non-GAAP operating income objective established for the Financial Performance RSU, in addition to the achievement of additional individual strategic goals. Each Strategic Performance Award will vest 50% on the first anniversary of the commencement date based on achievement of fiscal 2015 individual strategic goals and 50% on second anniversary date based on the achievement of the fiscal 2016 individual strategic goals. | |||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||
During the three months ended May 3, 2014 and May 4, 2013, the Company issued no shares under the 2000 Employee Stock Purchase Plan, as amended and restated (the “ESPP”). As of May 3, 2014, there was $14.4 million of unrecognized compensation cost related to the ESPP. | |||||||||||||||||||||||||
Share Repurchase Program | |||||||||||||||||||||||||
The Company had no repurchases of its common shares during the three months ended May 3, 2014. During the three months ended May 4, 2013, the Company repurchased 19.9 million of its common shares for $200.2 million in cash. 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 May 3, 2014, 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 $30.2 million in the three months ended May 3, 2014. Cash dividends of $0.06 per share were paid for a total of $30.3 million in the three months ended May 4, 2013. | |||||||||||||||||||||||||
On May 22, 2014, the Company announced that its board of directors declared a cash dividend of $0.06 per share to be paid on July 2, 2014 to shareholders of record as of June 12, 2014. | |||||||||||||||||||||||||
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 ongoing 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 | 3 Months Ended | ||||||||
3-May-14 | |||||||||
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 | |||||||||
May 3, | May 4, | ||||||||
2014 | 2013 | ||||||||
Cost of goods sold | $ | 2,299 | $ | 1,867 | |||||
Research and development | 20,368 | 23,279 | |||||||
Selling and marketing | 2,928 | 3,392 | |||||||
General and administrative | 4,374 | 4,975 | |||||||
$ | 29,969 | $ | 33,513 | ||||||
Share-based compensation capitalized in inventory was $1.4 million at May 3, 2014 and $1.7 million at February 1, 2014. | |||||||||
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 | |||||||||
May 3, | May 4, | ||||||||
2014 | 2013 | ||||||||
Time-based Stock Options: | |||||||||
Weighted average fair value | $ | 4.64 | $ | 3.41 | |||||
Expected volatility | 36 | % | 45 | % | |||||
Expected term (in years) | 5 | 5 | |||||||
Risk-free interest rate | 1.6 | % | 0.8 | % | |||||
Expected dividend yield | 1.6 | % | 2.4 | % | |||||
Under the ESPP, there were no stock purchase rights granted in the three months ended May 3, 2014 and May 4, 2013. |
The_Company_and_Basis_of_Prese1
The Company and Basis of Presentation (Policies) | 3 Months Ended |
3-May-14 | |
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 2015 and 2014 each have a 52-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 May 3, 2014, the results of its operations for the three months ended May 3, 2014 and May 4, 2013, its comprehensive income for the three months ended May 3, 2014 and May 4, 2013, and its cash flows for the three months ended May 3, 2014 and May 4, 2013. The February 1, 2014 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 1, 2014, 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 1, 2014 as filed on March 27, 2014 with the Securities and Exchange Commission. The results of operations for the three months ended May 3, 2014 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 ongoing 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 Not Yet Effective | ' |
Accounting Pronouncements Not Yet Effective | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued an amendment to its guidance regarding the reporting requirements of discontinued operations. Under this amended guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. In addition, this amendment requires an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections, respectively, of the statement of financial position and additional disclosures about discontinued operations. This amended guidance is effective for annual and interim reporting periods beginning after December 15, 2014. The Company expects this guidance to have an impact on its financial statements only in the event of a future disposition which meets the criteria. | |
In May 2014, the FASB issued a new standard on the recognition of revenue from contracts with customers, which includes a single set of rules and criteria for revenue recognition to be used across all industries. This standard is effective for annual and interim reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact from the adoption of the standard on its financial statements. |
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | ' | ||||||||||||||||||||||||
The following tables summarize the Company’s investments (in thousands): | |||||||||||||||||||||||||
May 3, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Corporate debt securities | $ | 596,691 | $ | 3,028 | $ | (303 | ) | $ | 599,416 | ||||||||||||||||
U.S. government and agency debt | 290,270 | 129 | (3 | ) | 290,396 | ||||||||||||||||||||
Asset backed securities | 74,525 | 83 | (43 | ) | 74,565 | ||||||||||||||||||||
Foreign government and agency debt | 25,442 | 25 | (42 | ) | 25,425 | ||||||||||||||||||||
Municipal debt securities | 15,301 | 42 | (4 | ) | 15,339 | ||||||||||||||||||||
Total short-term investments | 1,002,229 | 3,307 | (395 | ) | 1,005,141 | ||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Auction rate securities | 16,150 | — | (2,694 | ) | 13,456 | ||||||||||||||||||||
Total long-term investments | 16,150 | — | (2,694 | ) | 13,456 | ||||||||||||||||||||
Total investments | $ | 1,018,379 | $ | 3,307 | $ | (3,089 | ) | $ | 1,018,597 | ||||||||||||||||
February 1, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Corporate debt securities | $ | 587,095 | $ | 2,789 | $ | (370 | ) | $ | 589,514 | ||||||||||||||||
U.S. government and agency debt | 301,423 | 128 | (72 | ) | 301,479 | ||||||||||||||||||||
Asset backed securities | 76,220 | 89 | (38 | ) | 76,271 | ||||||||||||||||||||
Foreign government and agency debt | 20,324 | 12 | (44 | ) | 20,292 | ||||||||||||||||||||
Municipal debt securities | 16,059 | 44 | (4 | ) | 16,099 | ||||||||||||||||||||
Total short-term investments | 1,001,121 | 3,062 | (528 | ) | 1,003,655 | ||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Auction rate securities | 19,150 | — | (2,871 | ) | 16,279 | ||||||||||||||||||||
Total long-term investments | 19,150 | — | (2,871 | ) | 16,279 | ||||||||||||||||||||
Total investments | $ | 1,020,271 | $ | 3,062 | $ | (3,399 | ) | $ | 1,019,934 | ||||||||||||||||
Gross Realized Gains and Losses on Sale of Available-for-Sales Securities | ' | ||||||||||||||||||||||||
Gross realized gains and gross realized losses on sales of available-for-sales securities are presented in the following tables (in thousands): | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
May 3, | May 4, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross realized gains | $ | 472 | $ | 560 | |||||||||||||||||||||
Gross realized losses | $ | (25 | ) | $ | (23 | ) | |||||||||||||||||||
Total net realized gains | $ | 447 | $ | 537 | |||||||||||||||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||||||||
The contractual maturities of available-for-sale securities are presented in the following table (in thousands): | |||||||||||||||||||||||||
May 3, 2014 | February 1, 2014 | ||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||
Due in one year or less | $ | 306,987 | $ | 307,341 | $ | 309,543 | $ | 309,861 | |||||||||||||||||
Due between one and five years | 689,928 | 692,499 | 686,062 | 688,280 | |||||||||||||||||||||
Due over five years | 21,464 | 18,757 | 24,666 | 21,793 | |||||||||||||||||||||
$ | 1,018,379 | $ | 1,018,597 | $ | 1,020,271 | $ | 1,019,934 | ||||||||||||||||||
Unrealized Loss Position Investments | ' | ||||||||||||||||||||||||
For individual securities that have been in a continuous 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): | |||||||||||||||||||||||||
May 3, 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Corporate debt securities | $ | 77,768 | $ | (290 | ) | $ | 4,796 | $ | (13 | ) | $ | 82,564 | $ | (303 | ) | ||||||||||
U.S. government and agency debt | 36,811 | (3 | ) | — | — | 36,811 | (3 | ) | |||||||||||||||||
Asset backed securities | 10,196 | (21 | ) | 1,907 | (22 | ) | 12,103 | (43 | ) | ||||||||||||||||
Foreign government and agency debt | 19,417 | (42 | ) | — | — | 19,417 | (42 | ) | |||||||||||||||||
Municipal debt securities | 446 | (4 | ) | — | — | 446 | (4 | ) | |||||||||||||||||
Auction rate securities | — | — | 13,456 | (2,694 | ) | 13,456 | (2,694 | ) | |||||||||||||||||
Total securities | $ | 144,638 | $ | (360 | ) | $ | 20,159 | $ | (2,729 | ) | $ | 164,797 | $ | (3,089 | ) | ||||||||||
February 1, 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Corporate debt securities | $ | 110,903 | $ | (366 | ) | $ | 2,105 | $ | (4 | ) | $ | 113,008 | $ | (370 | ) | ||||||||||
U.S. government and agency debt | 93,118 | (72 | ) | — | — | 93,118 | (72 | ) | |||||||||||||||||
Asset backed securities | 18,865 | (19 | ) | 1,912 | (19 | ) | 20,777 | (38 | ) | ||||||||||||||||
Foreign government and agency debt | 14,299 | (44 | ) | — | — | 14,299 | (44 | ) | |||||||||||||||||
Municipal debt securities | 723 | (4 | ) | — | — | 723 | (4 | ) | |||||||||||||||||
Auction rate securities | — | — | 16,279 | (2,871 | ) | 16,279 | (2,871 | ) | |||||||||||||||||
Total securities | $ | 237,908 | $ | (505 | ) | $ | 20,296 | $ | (2,894 | ) | $ | 258,204 | $ | (3,399 | ) | ||||||||||
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 3 Months Ended | ||||||||||||||||
3-May-14 | |||||||||||||||||
Schedule of Inventory, Current | ' | ||||||||||||||||
May 3, | February 1, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Inventories: | |||||||||||||||||
Work-in-process | $ | 239,992 | $ | 195,495 | |||||||||||||
Finished goods | 110,657 | 152,366 | |||||||||||||||
Total inventories | $ | 350,649 | $ | 347,861 | |||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||
May 3, | February 1, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Property and equipment, net: | |||||||||||||||||
Machinery and equipment | $ | 572,644 | $ | 562,038 | |||||||||||||
Buildings | 144,320 | 144,320 | |||||||||||||||
Computer software | 95,417 | 96,096 | |||||||||||||||
Land | 53,373 | 53,373 | |||||||||||||||
Building improvements | 49,645 | 49,645 | |||||||||||||||
Leasehold improvements | 49,551 | 49,060 | |||||||||||||||
Furniture and fixtures | 27,814 | 27,621 | |||||||||||||||
Construction in progress | 1,255 | 2,911 | |||||||||||||||
994,019 | 985,064 | ||||||||||||||||
Less: Accumulated depreciation and amortization | (644,698 | ) | (628,899 | ) | |||||||||||||
Total property and equipment, net | $ | 349,321 | $ | 356,165 | |||||||||||||
Schedule of Other Assets, Noncurrent | ' | ||||||||||||||||
May 3, | February 1, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Other non-current assets: | |||||||||||||||||
Technology and other licenses | $ | 77,625 | $ | 83,521 | |||||||||||||
Deferred tax assets | 20,686 | 19,282 | |||||||||||||||
Investments in privately-held companies | 15,006 | 14,565 | |||||||||||||||
Prepaid land use rights | 13,666 | 13,744 | |||||||||||||||
Deposits | 12,546 | 12,433 | |||||||||||||||
Other | 21,877 | 16,821 | |||||||||||||||
Total other non-current assets | $ | 161,406 | $ | 160,366 | |||||||||||||
Schedule of Accrued Liabilities | ' | ||||||||||||||||
May 3, | February 1, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Accrued liabilities: | |||||||||||||||||
Accrued rebates | $ | 49,854 | $ | 61,616 | |||||||||||||
Accrued royalties | 25,041 | 36,568 | |||||||||||||||
Technology license obligations | 18,275 | 18,482 | |||||||||||||||
Accrued legal expense | 16,771 | 14,589 | |||||||||||||||
Other | 36,726 | 30,507 | |||||||||||||||
Total accrued liabilities | $ | 146,667 | $ | 161,762 | |||||||||||||
Other Noncurrent Liabilities | ' | ||||||||||||||||
May 3, | February 1, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Other non-current liabilities: | |||||||||||||||||
Technology license obligations | $ | 25,316 | $ | 28,959 | |||||||||||||
Long-term accrued employee compensation | 4,645 | 4,370 | |||||||||||||||
Other | 15,628 | 9,140 | |||||||||||||||
Other non-current liabilities | $ | 45,589 | $ | 42,469 | |||||||||||||
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 1, 2014 | $ | 2,534 | $ | (2,871 | ) | $ | 934 | $ | 597 | ||||||||
Other comprehensive income before reclassifications | 798 | 177 | 42 | 1,017 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (420 | ) | — | (785 | ) | (1,205 | ) | ||||||||||
Other comprehensive income (loss) | 378 | 177 | (743 | ) | (188 | ) | |||||||||||
Balance at May 3, 2014 | $ | 2,912 | $ | (2,694 | ) | $ | 191 | $ | 409 | ||||||||
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 income before reclassifications | 1,428 | 81 | 991 | 2,500 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (376 | ) | — | (1,096 | ) | (1,472 | ) | ||||||||||
Other comprehensive income (loss) | 1,052 | 81 | (105 | ) | 1,028 | ||||||||||||
Balance at May 4, 2013 | $ | 3,794 | $ | (2,600 | ) | $ | 982 | $ | 2,176 | ||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income by Components | ' | ||||||||||||||||
The amounts reclassified from accumulated other comprehensive income by components are presented in the following table (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
Affected Line Item in the | May 3, | May 4, | |||||||||||||||
Statement of Operations | 2014 | 2013 | |||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Interest and other income, net | $ | 420 | $ | 376 | |||||||||||||
Cash flow hedges: | |||||||||||||||||
Cost of goods sold | 46 | 61 | |||||||||||||||
Research and development | 675 | 945 | |||||||||||||||
Selling and marketing | 62 | 82 | |||||||||||||||
General and administrative | 2 | 8 | |||||||||||||||
Total | $ | 1,205 | $ | 1,472 | |||||||||||||
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 | |||||||||||||||||
May 3, | May 4, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 99,479 | $ | 53,209 | |||||||||||||
Denominator: | |||||||||||||||||
Weighted average shares — basic | 505,105 | 502,180 | |||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Share-based awards | 15,646 | 3,207 | |||||||||||||||
Weighted average shares — diluted | 520,751 | 505,387 | |||||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.2 | $ | 0.11 | |||||||||||||
Diluted | $ | 0.19 | $ | 0.11 | |||||||||||||
Three Months Ended | |||||||||||||||||
May 3, | May 4, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Anti-dilutive potential shares: | |||||||||||||||||
Weighted average shares outstanding from stock options | 21,453 | 40,631 | |||||||||||||||
Weighted average exercise price | $ | 17.86 | $ | 15.24 | |||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||
3-May-14 | |||||||||
Schedule of Derivative Instruments | ' | ||||||||
The notional amounts of outstanding forward contracts were as follows (in thousands): | |||||||||
Buy Contracts | |||||||||
May 3, | February 1, | ||||||||
2014 | 2014 | ||||||||
Israeli shekel | $ | 57,793 | $ | 39,670 | |||||
Chinese yuan | 55,122 | — | |||||||
Euro | 5,821 | 5,718 | |||||||
Swedish krona | 1,273 | 3,709 | |||||||
$ | 120,009 | $ | 49,097 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
3-May-14 | |||||||||||||||||
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 May 3, 2014 | |||||||||||||||||
Items measured at fair value on a recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. government and agency debt | $ | 15,800 | $ | — | $ | — | $ | 15,800 | |||||||||
Money market funds | 6,893 | — | — | 6,893 | |||||||||||||
Time deposits | — | 209,645 | — | 209,645 | |||||||||||||
Municipal debt securities | — | 2,300 | — | 2,300 | |||||||||||||
Corporate debt securities | — | 2,100 | — | 2,100 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S. government and agency debt | 290,396 | — | — | 290,396 | |||||||||||||
Corporate debt securities | — | 599,416 | — | 599,416 | |||||||||||||
Asset backed securities | — | 74,565 | — | 74,565 | |||||||||||||
Foreign government and agency debt | — | 25,425 | — | 25,425 | |||||||||||||
Municipal debt securities | — | 15,339 | — | 15,339 | |||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||
Foreign currency forward contracts | — | 650 | — | 650 | |||||||||||||
Long-term investments: | |||||||||||||||||
Auction rate securities | — | — | 13,456 | 13,456 | |||||||||||||
Other non-current assets: | |||||||||||||||||
Severance pay fund | — | 2,194 | — | 2,194 | |||||||||||||
Total assets | $ | 313,089 | $ | 931,634 | $ | 13,456 | $ | 1,258,179 | |||||||||
Liabilities | |||||||||||||||||
Accrued liabilities: | |||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 422 | $ | — | $ | 422 | |||||||||
Level 1 | Level 2 | Level 3 | Portion of Carrying | ||||||||||||||
Value Measured at | |||||||||||||||||
Fair Value | |||||||||||||||||
at February 1, 2014 | |||||||||||||||||
Items measured at fair value on a recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. government and agency debt | $ | 11,999 | $ | — | $ | — | $ | 11,999 | |||||||||
Money market funds | 2,804 | — | — | 2,804 | |||||||||||||
Time deposits | — | 247,958 | — | 247,958 | |||||||||||||
Municipal debt securities | — | 4,800 | — | 4,800 | |||||||||||||
Corporate debt securities | — | 3,400 | — | 3,400 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S. government and agency debt | 301,479 | — | — | 301,479 | |||||||||||||
Corporate debt securities | — | 589,514 | — | 589,514 | |||||||||||||
Asset backed securities | — | 76,271 | — | 76,271 | |||||||||||||
Foreign government and agency debt | — | 20,292 | — | 20,292 | |||||||||||||
Municipal debt securities | — | 16,099 | — | 16,099 | |||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||
Foreign currency forward contracts | — | 1,012 | — | 1,012 | |||||||||||||
Long-term investments: | |||||||||||||||||
Auction rate securities | — | — | 16,279 | 16,279 | |||||||||||||
Other non-current assets: | |||||||||||||||||
Severance pay fund | — | 2,193 | — | 2,193 | |||||||||||||
Total assets | $ | 316,282 | $ | 961,539 | $ | 16,279 | $ | 1,294,100 | |||||||||
Liabilities | |||||||||||||||||
Accrued liabilities: | |||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 26 | $ | — | $ | 26 | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ||||||||||||||||
The following table summarizes the change in fair value for Level 3 assets (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
May 3, | May 4, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Beginning balance | $ | 16,279 | $ | 16,769 | |||||||||||||
Sales and redemptions | (3,000 | ) | (300 | ) | |||||||||||||
Unrealized losses included in accumulated other comprehensive income | 177 | 81 | |||||||||||||||
Ending balance | $ | 13,456 | $ | 16,550 | |||||||||||||
Acquired_Intangible_Assets_Net1
Acquired Intangible Assets, Net (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | ' | ||||||||||||||||||||||||||
The carrying amount of acquired intangible assets, net, are as follows (in thousands): | |||||||||||||||||||||||||||
May 3, 2014 | February 1, 2014 | ||||||||||||||||||||||||||
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 -6 years | $ | 49,240 | $ | (22,879 | ) | $ | 26,361 | $ | 49,240 | $ | (20,634 | ) | $ | 28,606 | ||||||||||||
Core technology | 5 - 8 years | 2,350 | (1,672 | ) | 678 | 2,350 | (1,583 | ) | 767 | ||||||||||||||||||
Trade names | 5 years | 1,300 | (632 | ) | 668 | 1,300 | (568 | ) | 732 | ||||||||||||||||||
Customer intangibles | 5 - 6 years | 28,600 | (14,446 | ) | 14,154 | 28,600 | (13,056 | ) | 15,544 | ||||||||||||||||||
IPR&D | — | — | — | 3,386 | — | 3,386 | |||||||||||||||||||||
Total intangible assets, net | $ | 81,490 | $ | (39,629 | ) | $ | 41,861 | $ | 84,876 | $ | (35,841 | ) | $ | 49,035 | |||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ||||||||||||||||||||||||||
Based on the identified intangible assets recorded at May 3, 2014, the future amortization expense for the next five fiscal years is as follows (in thousands): | |||||||||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||||||
Remainder of fiscal 2015 | $ | 11,163 | |||||||||||||||||||||||||
2016 | 12,212 | ||||||||||||||||||||||||||
2017 | 11,027 | ||||||||||||||||||||||||||
2018 | 5,599 | ||||||||||||||||||||||||||
2019 | 1,860 | ||||||||||||||||||||||||||
Thereafter | — | ||||||||||||||||||||||||||
$ | 41,861 | ||||||||||||||||||||||||||
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | ||||||||||||||||
3-May-14 | |||||||||||||||||
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 | |||||||||||||||||
May 3, | May 4, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Research and development | $ | 4,682 | $ | — | |||||||||||||
Selling and marketing | 48 | — | |||||||||||||||
General and administrative | 358 | 228 | |||||||||||||||
Write-off of acquired intangible assets | 3,386 | — | |||||||||||||||
$ | 8,474 | $ | 228 | ||||||||||||||
Reconciliation of Beginning and Ending Restructuring Liability Balances by Major Type of 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 three months ended May 3, 2014 (in thousands): | |||||||||||||||||
Severance | Facilities | Other | Total | ||||||||||||||
and Related | and Related | Exit-Related | |||||||||||||||
Costs | Costs | Costs | |||||||||||||||
Balance at February 1, 2014 | $ | 51 | $ | 2,383 | $ | 19 | $ | 2,453 | |||||||||
Restructuring charges | 4,617 | 444 | 10 | 5,071 | |||||||||||||
Net cash payments | (786 | ) | (387 | ) | (29 | ) | (1,202 | ) | |||||||||
Balance at May 3, 2014 | $ | 3,882 | $ | 2,440 | $ | — | $ | 6,322 | |||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | ' | ||||||||||||||||||||||||
Activity under the Company’s stock option plans for the three months ended May 3, 2014 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 1, 2014 | 49,156 | $ | 13.4 | 2,623 | $ | 15.43 | 51,779 | $ | 13.51 | ||||||||||||||||
Granted | 3,712 | $ | 15.84 | — | $ | — | 3,712 | $ | 15.84 | ||||||||||||||||
Exercised | (1,797 | ) | $ | 10.62 | — | $ | — | (1,797 | ) | $ | 10.62 | ||||||||||||||
Canceled/Forfeited | (1,687 | ) | $ | 15.32 | (329 | ) | $ | 15.43 | (2,016 | ) | $ | 15.34 | |||||||||||||
Balance at May 3, 2014 | 49,384 | $ | 13.62 | 2,294 | $ | 15.43 | 51,678 | $ | 13.7 | ||||||||||||||||
Vested or expected to vest at May 3, 2014 | 45,766 | $ | 13.72 | ||||||||||||||||||||||
Exercisable at May 3, 2014 | 25,024 | $ | 15.04 | ||||||||||||||||||||||
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): | |||||||||||||||||||||||||
Time-Based | Performance-Based | Total | |||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Balance at February 1, 2014 | 11,254 | $ | 14.11 | 100 | $ | 10.52 | 11,354 | $ | 14.08 | ||||||||||||||||
Granted | 4,588 | $ | 15.44 | 757 | * | $ | 15.51 | * | 5,345 | $ | 15.45 | ||||||||||||||
Vested | (5,172 | ) | $ | 14.06 | (3 | ) | $ | 10.52 | (5,175 | ) | $ | 14.06 | |||||||||||||
Canceled/Forfeited | (272 | ) | $ | 13.74 | (97 | ) | $ | 10.52 | (369 | ) | $ | 12.9 | |||||||||||||
Balance at May 3, 2014 | 10,398 | $ | 14.77 | 757 | $ | 15.51 | 11,155 | $ | 14.82 | ||||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||||||||
3-May-14 | |||||||||
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 | |||||||||
May 3, | May 4, | ||||||||
2014 | 2013 | ||||||||
Cost of goods sold | $ | 2,299 | $ | 1,867 | |||||
Research and development | 20,368 | 23,279 | |||||||
Selling and marketing | 2,928 | 3,392 | |||||||
General and administrative | 4,374 | 4,975 | |||||||
$ | 29,969 | $ | 33,513 | ||||||
Time Based Option Award | ' | ||||||||
Weighted Average Assumptions Used to Calculate Fair Value Awards | ' | ||||||||
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 | |||||||||
May 3, | May 4, | ||||||||
2014 | 2013 | ||||||||
Time-based Stock Options: | |||||||||
Weighted average fair value | $ | 4.64 | $ | 3.41 | |||||
Expected volatility | 36 | % | 45 | % | |||||
Expected term (in years) | 5 | 5 | |||||||
Risk-free interest rate | 1.6 | % | 0.8 | % | |||||
Expected dividend yield | 1.6 | % | 2.4 | % |
Summary_of_Investments_Detail
Summary of Investments (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | $1,018,379 | $1,020,271 |
Gross Unrealized Gains | 3,307 | 3,062 |
Gross Unrealized Losses | -3,089 | -3,399 |
Estimated Fair Value | 1,018,597 | 1,019,934 |
Short-term Investments | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 1,002,229 | 1,001,121 |
Gross Unrealized Gains | 3,307 | 3,062 |
Gross Unrealized Losses | -395 | -528 |
Estimated Fair Value | 1,005,141 | 1,003,655 |
Short-term Investments | Corporate debt securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 596,691 | 587,095 |
Gross Unrealized Gains | 3,028 | 2,789 |
Gross Unrealized Losses | -303 | -370 |
Estimated Fair Value | 599,416 | 589,514 |
Short-term Investments | U.S. government and agency debt | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 290,270 | 301,423 |
Gross Unrealized Gains | 129 | 128 |
Gross Unrealized Losses | -3 | -72 |
Estimated Fair Value | 290,396 | 301,479 |
Short-term Investments | Asset-backed Securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 74,525 | 76,220 |
Gross Unrealized Gains | 83 | 89 |
Gross Unrealized Losses | -43 | -38 |
Estimated Fair Value | 74,565 | 76,271 |
Short-term Investments | Foreign government and agency debt | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 25,442 | 20,324 |
Gross Unrealized Gains | 25 | 12 |
Gross Unrealized Losses | -42 | -44 |
Estimated Fair Value | 25,425 | 20,292 |
Short-term Investments | Municipal debt securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 15,301 | 16,059 |
Gross Unrealized Gains | 42 | 44 |
Gross Unrealized Losses | -4 | -4 |
Estimated Fair Value | 15,339 | 16,099 |
Long-term investments | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 16,150 | 19,150 |
Gross Unrealized Losses | -2,694 | -2,871 |
Estimated Fair Value | 13,456 | 16,279 |
Long-term investments | Auction rate securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 16,150 | 19,150 |
Gross Unrealized Losses | -2,694 | -2,871 |
Estimated Fair Value | $13,456 | $16,279 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | $1,018,379,000 | $1,020,271,000 |
Gross Unrealized Losses | 3,089,000 | 3,399,000 |
Cash, cash equivalents and short-term investments | 2,100,000,000 | ' |
Long-term investments | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 16,150,000 | 19,150,000 |
Gross Unrealized Losses | 2,694,000 | 2,871,000 |
Long-term investments | Auction rate securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost | 16,150,000 | 19,150,000 |
Gross Unrealized Losses | $2,694,000 | $2,871,000 |
Gross_Realized_Gains_and_Losse
Gross Realized Gains and Losses on Sale of Available-for-Sales Securities (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross realized gains | $472 | $560 |
Gross realized losses | -25 | -23 |
Total net realized gains | $447 | $537 |
Contractual_Maturities_of_Avai
Contractual Maturities of Available for Sale Securities (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ' | ' |
Due in one year or less | $306,987 | $309,543 |
Due between one and five years | 689,928 | 686,062 |
Due over five years | 21,464 | 24,666 |
Amortized Cost | 1,018,379 | 1,020,271 |
Estimated Fair Value | ' | ' |
Due in one year or less | 307,341 | 309,861 |
Due between one and five years | 692,499 | 688,280 |
Due over five years | 18,757 | 21,793 |
Estimated Fair Value | $1,018,597 | $1,019,934 |
Summary_of_Investments_Gross_U
Summary of Investments Gross Unrealized Losses and Fair Value (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | $144,638 | $237,908 |
Less than 12 months Unrealized Losses | -360 | -505 |
12 months or more Fair Value | 20,159 | 20,296 |
12 months or more Unrealized Losses | -2,729 | -2,894 |
Total Fair Value | 164,797 | 258,204 |
Total Unrealized Losses | -3,089 | -3,399 |
Corporate debt securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | 77,768 | 110,903 |
Less than 12 months Unrealized Losses | -290 | -366 |
12 months or more Fair Value | 4,796 | 2,105 |
12 months or more Unrealized Losses | -13 | -4 |
Total Fair Value | 82,564 | 113,008 |
Total Unrealized Losses | -303 | -370 |
U.S. government and agency debt | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | 36,811 | 93,118 |
Less than 12 months Unrealized Losses | -3 | -72 |
Total Fair Value | 36,811 | 93,118 |
Total Unrealized Losses | -3 | -72 |
Asset-backed Securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | 10,196 | 18,865 |
Less than 12 months Unrealized Losses | -21 | -19 |
12 months or more Fair Value | 1,907 | 1,912 |
12 months or more Unrealized Losses | -22 | -19 |
Total Fair Value | 12,103 | 20,777 |
Total Unrealized Losses | -43 | -38 |
Foreign government and agency debt | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | 19,417 | 14,299 |
Less than 12 months Unrealized Losses | -42 | -44 |
Total Fair Value | 19,417 | 14,299 |
Total Unrealized Losses | -42 | -44 |
Municipal debt securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 months Fair Value | 446 | 723 |
Less than 12 months Unrealized Losses | -4 | -4 |
Total Fair Value | 446 | 723 |
Total Unrealized Losses | -4 | -4 |
Auction rate securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
12 months or more Fair Value | 13,456 | 16,279 |
12 months or more Unrealized Losses | -2,694 | -2,871 |
Total Fair Value | 13,456 | 16,279 |
Total Unrealized Losses | ($2,694) | ($2,871) |
Inventories_Detail
Inventories (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Work-in-process | $239,992 | $195,495 |
Finished goods | 110,657 | 152,366 |
Total inventories | $350,649 | $347,861 |
Property_and_Equipment_Net_Det
Property and Equipment Net (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $994,019 | $985,064 |
Less: Accumulated depreciation and amortization | -644,698 | -628,899 |
Total property and equipment, net | 349,321 | 356,165 |
Machinery and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 572,644 | 562,038 |
Buildings | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 144,320 | 144,320 |
Computer software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 95,417 | 96,096 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 53,373 | 53,373 |
Building improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 49,645 | 49,645 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 49,551 | 49,060 |
Furniture and fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 27,814 | 27,621 |
Construction in progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $1,255 | $2,911 |
Other_Non_Current_Assets_Detai
Other Non Current Assets (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ' | ' |
Technology and other licenses | $77,625 | $83,521 |
Deferred tax assets | 20,686 | 19,282 |
Investments in privately-held companies | 15,006 | 14,565 |
Prepaid land use rights | 13,666 | 13,744 |
Deposits | 12,546 | 12,433 |
Other | 21,877 | 16,821 |
Total other non-current assets | $161,406 | $160,366 |
Accrued_Liabilities_Detail
Accrued Liabilities (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Accrued rebates | $49,854 | $61,616 |
Accrued royalties | 25,041 | 36,568 |
Technology license obligations | 18,275 | 18,482 |
Accrued legal expense | 16,771 | 14,589 |
Other | 36,726 | 30,507 |
Total accrued liabilities | $146,667 | $161,762 |
Other_Long_Term_Liabilities_De
Other Long Term Liabilities (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Other Liabilities [Line Items] | ' | ' |
Technology license obligations | $25,316 | $28,959 |
Long-term accrued employee compensation | 4,645 | 4,370 |
Other | 15,628 | 9,140 |
Other non-current liabilities | $45,589 | $42,469 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning Balance | $597 | $1,148 |
Other comprehensive income before reclassifications | 1,017 | 2,500 |
Amounts reclassified from accumulated other comprehensive income | -1,205 | -1,472 |
Other comprehensive income (loss), net | -188 | 1,028 |
Ending Balance | 409 | 2,176 |
Unrealized Gain (Loss) on Marketable Securities | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning Balance | 2,534 | 2,742 |
Other comprehensive income before reclassifications | 798 | 1,428 |
Amounts reclassified from accumulated other comprehensive income | -420 | -376 |
Other comprehensive income (loss), net | 378 | 1,052 |
Ending Balance | 2,912 | 3,794 |
Auction rate securities | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning Balance | -2,871 | -2,681 |
Other comprehensive income before reclassifications | 177 | 81 |
Other comprehensive income (loss), net | 177 | 81 |
Ending Balance | -2,694 | -2,600 |
Unrealized Gain (Loss) on Cash Flow Hedges | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning Balance | 934 | 1,087 |
Other comprehensive income before reclassifications | 42 | 991 |
Amounts reclassified from accumulated other comprehensive income | -785 | -1,096 |
Other comprehensive income (loss), net | -743 | -105 |
Ending Balance | $191 | $982 |
Amounts_Reclassified_from_Accu
Amounts Reclassified from Accumulated Other Comprehensive Income by Components (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Interest and other income, net | $1,925 | $3,160 |
Cost of goods sold | -493,860 | -335,438 |
Research and development | -295,363 | -279,052 |
Selling and marketing | -38,358 | -39,989 |
General and administrative | -30,573 | -26,323 |
Total | 99,479 | 53,209 |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Total | 1,205 | 1,472 |
Unrealized Gain (Loss) on Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Interest and other income, net | 420 | 376 |
Unrealized Gain (Loss) on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Cost of goods sold | 46 | 61 |
Research and development | 675 | 945 |
Selling and marketing | 62 | 82 |
General and administrative | $2 | $8 |
Computations_of_Basic_and_Dilu
Computations of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 |
Numerator: | ' | ' |
Net income | $99,479 | $53,209 |
Denominator: | ' | ' |
Weighted average shares - basic | 505,105 | 502,180 |
Effect of dilutive securities: | ' | ' |
Share-based awards | 15,646 | 3,207 |
Weighted average shares - diluted | 520,751 | 505,387 |
Basic | $0.20 | $0.11 |
Diluted | $0.19 | $0.11 |
Stock Options | ' | ' |
Effect of dilutive securities: | ' | ' |
Weighted average shares outstanding from stock options | 21,453 | 40,631 |
Weighted average exercise price | $17.86 | $15.24 |
Supplemental_Financial_Informa2
Supplemental Financial Information - Additional Information (Detail) (Market Based Option Award) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Market Based Option Award | ' | ' |
Computation Of Earnings Per Share Line Items | ' | ' |
Anti-dilutive options excluded from the computation of diluted net income per share | 2,400 | 2,800 |
Notional_Amounts_of_Outstandin
Notional Amounts of Outstanding Foreign Currency Forward Contracts (Detail) (Foreign Exchange Contract, USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Buy Contracts | $120,009 | $49,097 |
Israeli shekel | ' | ' |
Derivative [Line Items] | ' | ' |
Buy Contracts | 57,793 | 39,670 |
China yuan | ' | ' |
Derivative [Line Items] | ' | ' |
Buy Contracts | 55,122 | ' |
Euro | ' | ' |
Derivative [Line Items] | ' | ' |
Buy Contracts | 5,821 | 5,718 |
Swedish krona | ' | ' |
Derivative [Line Items] | ' | ' |
Buy Contracts | $1,273 | $3,709 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) | 3-May-14 |
Fair Value, Measurement Inputs, Disclosure [Line Items] | ' |
Percentage of total amount of assets measured using Level 3 valuation methodologies to total assets | 0.20% |
Financial_Assets_that_were_Acc
Financial Assets that were Accounted for at Fair Value (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Total assets | $1,258,179 | $1,294,100 |
Accrued Liabilities | Foreign currency forward contracts | ' | ' |
Liabilities | ' | ' |
Accrued liabilities | 422 | 26 |
Cash equivalents | U.S. government and agency debt | ' | ' |
Assets | ' | ' |
Cash equivalents | 15,800 | 11,999 |
Cash equivalents | Money market funds | ' | ' |
Assets | ' | ' |
Cash equivalents | 6,893 | 2,804 |
Cash equivalents | Time deposits | ' | ' |
Assets | ' | ' |
Cash equivalents | 209,645 | 247,958 |
Cash equivalents | Municipal debt securities | ' | ' |
Assets | ' | ' |
Cash equivalents | 2,300 | 4,800 |
Cash equivalents | Corporate debt securities | ' | ' |
Assets | ' | ' |
Cash equivalents | 2,100 | 3,400 |
Short-term Investments | U.S. government and agency debt | ' | ' |
Assets | ' | ' |
Investments | 290,396 | 301,479 |
Short-term Investments | Municipal debt securities | ' | ' |
Assets | ' | ' |
Investments | 15,339 | 16,099 |
Short-term Investments | Corporate debt securities | ' | ' |
Assets | ' | ' |
Investments | 599,416 | 589,514 |
Short-term Investments | Asset-backed Securities | ' | ' |
Assets | ' | ' |
Investments | 74,565 | 76,271 |
Short-term Investments | Foreign government and agency debt | ' | ' |
Assets | ' | ' |
Investments | 25,425 | 20,292 |
Prepaid expenses and other current assets | Foreign currency forward contracts | ' | ' |
Assets | ' | ' |
Prepaid expenses and other current assets | 650 | 1,012 |
Long-term investments | Auction rate securities | ' | ' |
Assets | ' | ' |
Investments | 13,456 | 16,279 |
Other non-current assets | Severance Pay Fund | ' | ' |
Assets | ' | ' |
Other non-current asset | 2,194 | 2,193 |
Level 1 | ' | ' |
Assets | ' | ' |
Total assets | 313,089 | 316,282 |
Level 1 | Cash equivalents | U.S. government and agency debt | ' | ' |
Assets | ' | ' |
Cash equivalents | 15,800 | 11,999 |
Level 1 | Cash equivalents | Money market funds | ' | ' |
Assets | ' | ' |
Cash equivalents | 6,893 | 2,804 |
Level 1 | Short-term Investments | U.S. government and agency debt | ' | ' |
Assets | ' | ' |
Investments | 290,396 | 301,479 |
Level 2 | ' | ' |
Assets | ' | ' |
Total assets | 931,634 | 961,539 |
Level 2 | Accrued Liabilities | Foreign currency forward contracts | ' | ' |
Liabilities | ' | ' |
Accrued liabilities | 422 | 26 |
Level 2 | Cash equivalents | Time deposits | ' | ' |
Assets | ' | ' |
Cash equivalents | 209,645 | 247,958 |
Level 2 | Cash equivalents | Municipal debt securities | ' | ' |
Assets | ' | ' |
Cash equivalents | 2,300 | 4,800 |
Level 2 | Cash equivalents | Corporate debt securities | ' | ' |
Assets | ' | ' |
Cash equivalents | 2,100 | 3,400 |
Level 2 | Short-term Investments | Municipal debt securities | ' | ' |
Assets | ' | ' |
Investments | 15,339 | 16,099 |
Level 2 | Short-term Investments | Corporate debt securities | ' | ' |
Assets | ' | ' |
Investments | 599,416 | 589,514 |
Level 2 | Short-term Investments | Asset-backed Securities | ' | ' |
Assets | ' | ' |
Investments | 74,565 | 76,271 |
Level 2 | Short-term Investments | Foreign government and agency debt | ' | ' |
Assets | ' | ' |
Investments | 25,425 | 20,292 |
Level 2 | Prepaid expenses and other current assets | Foreign currency forward contracts | ' | ' |
Assets | ' | ' |
Prepaid expenses and other current assets | 650 | 1,012 |
Level 2 | Other non-current assets | Severance Pay Fund | ' | ' |
Assets | ' | ' |
Other non-current asset | 2,194 | 2,193 |
Level 3 | ' | ' |
Assets | ' | ' |
Total assets | 13,456 | 16,279 |
Level 3 | Long-term investments | Auction rate securities | ' | ' |
Assets | ' | ' |
Investments | $13,456 | $16,279 |
Summary_of_Change_in_Fair_Valu
Summary of Change in Fair Values for Level Three Items (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | $16,279 | $16,769 |
Sales and redemptions | -3,000 | -300 |
Unrealized losses included in accumulated other comprehensive income | 177 | 81 |
Ending balance | $13,456 | $16,550 |
Acquired_Intangible_Assets_Net2
Acquired Intangible Assets Net (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 | Feb. 01, 2014 | 3-May-14 | Feb. 01, 2014 | 3-May-14 | 3-May-14 | 3-May-14 | Feb. 01, 2014 | 3-May-14 | 3-May-14 | 3-May-04 | 3-May-14 | Feb. 01, 2014 | 3-May-14 | Feb. 01, 2014 | 3-May-14 | 3-May-14 |
In Thousands, unless otherwise specified | In-process research and development | Purchased technology | Purchased technology | Purchased technology | Purchased technology | Core technology | Core technology | Core technology | Core technology | Trade names | Trade names | Trade names | Customer intangibles | Customer intangibles | Customer intangibles | Customer intangibles | ||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful Lives | ' | ' | ' | ' | ' | '4 years | '6 years | ' | ' | '5 years | '8 years | '5 years | ' | ' | ' | ' | '5 years | '6 years |
Gross Carrying Amounts | $81,490 | $84,876 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Carrying Amounts, Finite-Lived | ' | ' | ' | 49,240 | 49,240 | ' | ' | 2,350 | 2,350 | ' | ' | ' | 1,300 | 1,300 | 28,600 | 28,600 | ' | ' |
Accumulated Amortization and Write-Offs | -39,629 | -35,841 | ' | -22,879 | -20,634 | ' | ' | -1,672 | -1,583 | ' | ' | ' | -632 | -568 | -14,446 | -13,056 | ' | ' |
Net Carrying Amount, Finite-Lived | ' | ' | ' | 26,361 | 28,606 | ' | ' | 678 | 767 | ' | ' | ' | 668 | 732 | 14,154 | 15,544 | ' | ' |
Net Carrying Amount | 41,861 | 49,035 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Carrying Amounts, Indefinite-Lived | ' | ' | 3,386 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Carrying Amount, Indefinite-Lived | ' | ' | $3,386 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired_Intangible_Assets_Net3
Acquired Intangible Assets, Net - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | 3-May-14 |
Goodwill and Intangible Assets Disclosure [Line Items] | ' |
Write off of acquired IPR&D | $3.40 |
Future_Amortization_Expense_of
Future Amortization Expense of Identified Intangibles (Detail) (In Process Research and Development Excluded, USD $) | 3-May-14 |
In Thousands, unless otherwise specified | |
In Process Research and Development Excluded | ' |
Fiscal Year | ' |
Remainder of fiscal 2015 | $11,163 |
2016 | 12,212 |
2017 | 11,027 |
2018 | 5,599 |
2019 | 1,860 |
Thereafter | ' |
Net Carrying Amount, Finite-Lived | $41,861 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | |
3-May-14 | 4-May-13 | |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | $8,474,000 | $228,000 |
Severance expenses | 4,600,000 | ' |
Other exit-related costs primarily associated with previous facility closures and write-off of equipment | 5,071,000 | ' |
Write-off of acquired intangible assets | 3,400,000 | ' |
Facility Closing and Other Exit-Related Costs | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Other exit-related costs primarily associated with previous facility closures and write-off of equipment | $500,000 | ' |
Payment Terms Period Two | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Year of expected payments under lease obligations | '2018 | ' |
Restructuring_Charges_Detail
Restructuring Charges (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | $8,474 | $228 |
Research and development | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | 4,682 | ' |
Selling and marketing | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | 48 | ' |
General and administrative | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | 358 | 228 |
Write-off of acquired intangible assets | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | $3,386 | ' |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Restructuring Liability Balances by Major Type of Costs (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | 3-May-14 |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring liabilities, beginning of balance | $2,453 |
Restructuring charges | 5,071 |
Net cash payments | -1,202 |
Restructuring liabilities, ending balance | 6,322 |
Severance and Related Costs | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring liabilities, beginning of balance | 51 |
Restructuring charges | 4,617 |
Net cash payments | -786 |
Restructuring liabilities, ending balance | 3,882 |
Facilities and Related Costs | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring liabilities, beginning of balance | 2,383 |
Restructuring charges | 444 |
Net cash payments | -387 |
Restructuring liabilities, ending balance | 2,440 |
Other Exit-Related Costs | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring liabilities, beginning of balance | 19 |
Restructuring charges | 10 |
Net cash payments | ($29) |
Income_Tax_Additional_Informat
Income Tax - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 |
Income Taxes [Line Items] | ' | ' |
Current income tax liability | $5.70 | $1.80 |
Net reduction in unrecognized tax benefits | -2.5 | -9.7 |
Tax benefit from an increase in deferred tax asset due to change in negotiated development and expansion incentive | 7.8 | ' |
Reduction in unrecognized tax benefits arising from the expiration of statute of limitations | 4.9 | ' |
Increase in current year unrecognized tax benefit estimates | 1.1 | ' |
Increase in tax expense related to fiscal year 2014 tax return of a non-U.S. jurisdiction | 1.3 | ' |
Settlements of audits in non-U.S. jurisdictions | ' | 0.7 |
Uncertain tax positions decrease from the lapse of the statutes of limitation in various jurisdictions during the next 12 months | -18 | ' |
Tax incentives, tax savings amount | $3.30 | $2.10 |
Maximum | ' | ' |
Income Taxes [Line Items] | ' | ' |
Tax incentives, per share effect on earning | $0.01 | $0.01 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3-May-14 | Aug. 06, 2012 | Mar. 31, 2014 | Dec. 26, 2012 | 3-May-14 | 3-May-14 | 14-May-14 |
Lake Cherokee Patent I Litigation | Carnegie Mellon Litigation | Carnegie Mellon Litigation | Carnegie Mellon Litigation | Manufacturing Expense | Subsequent Event | ||
Surety Bond | |||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Purchase commitment, outstanding commitment | ' | ' | ' | ' | ' | $312,600,000 | ' |
Accrued liability related to legal proceedings | 17,300,000 | ' | ' | ' | ' | ' | ' |
Date of lawsuit filed | ' | ' | ' | 6-Mar-09 | ' | ' | ' |
Loss contingency, awarded amount | ' | ' | 1,540,000,000 | 1,170,000,000 | ' | ' | ' |
Pre-judgment interest | ' | ' | ' | 322,000,000 | ' | ' | ' |
Additional royalties | ' | ' | ' | ' | 250,000,000 | ' | ' |
Loss contingency, range of possible loss, minimum | ' | ' | ' | ' | 0 | ' | ' |
Loss contingency, damages claim | ' | 193,000,000 | ' | ' | ' | ' | ' |
Supersedeas bond | ' | ' | ' | ' | ' | ' | $1,540,000,000 |
Stock_Option_Plan_Activity_Det
Stock Option Plan Activity (Detail) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | 3-May-14 |
Options Outstanding | ' |
Beginning Balance | 51,779 |
Granted | 3,712 |
Exercised | -1,797 |
Canceled/Forfeited | -2,016 |
Ending Balance | 51,678 |
Weighted Average Exercise Price | ' |
Beginning Balance | $13.51 |
Granted | $15.84 |
Exercised | $10.62 |
Canceled/Forfeited | $15.34 |
Ending Balance | $13.70 |
Time Based Option Award | ' |
Options Outstanding | ' |
Beginning Balance | 49,156 |
Granted | 3,712 |
Exercised | -1,797 |
Canceled/Forfeited | -1,687 |
Ending Balance | 49,384 |
Vested or expected to vest at May 3, 2014 | 45,766 |
Exercisable at May 3, 2014 | 25,024 |
Weighted Average Exercise Price | ' |
Beginning Balance | $13.40 |
Granted | $15.84 |
Exercised | $10.62 |
Canceled/Forfeited | $15.32 |
Ending Balance | $13.62 |
Vested or expected to vest at May 3, 2014 | $13.72 |
Exercisable at May 3, 2014 | $15.04 |
Market Based Option Award | ' |
Options Outstanding | ' |
Beginning Balance | 2,623 |
Canceled/Forfeited | -329 |
Ending Balance | 2,294 |
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 | 0 Months Ended | 3 Months Ended | |||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 | 2-May-14 | 22-May-14 | 3-May-14 | 4-May-13 | 3-May-14 | 3-May-14 | 3-May-14 | 4-May-13 | 3-May-14 | 3-May-14 | 3-May-14 | 3-May-14 |
Subsequent Event | Time Based Option Award | Time Based Option Award | Market Based Option Award | Restricted Stock Units (RSUs) | Employee Stock Purchase Plan, 2000 Restated Plan | Employee Stock Purchase Plan, 2000 Restated Plan | Executive Performance Awards | Executive Performance Awards | Executive Performance Awards | Executive Performance Awards | ||||
Financial Performance RSU | Financial Performance RSU | Strategic Performance Award | Strategic Performance Award | |||||||||||
First Anniversary | Second Anniversary | First Anniversary | Second Anniversary | |||||||||||
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested and expected to vest, aggregate intrinsic value | ' | ' | ' | ' | $144,200,000 | ' | $0 | ' | ' | ' | ' | ' | ' | ' |
Options vested and expected to vest, weighted average remaining contractual term (in years) | ' | ' | ' | ' | '6 years 3 months 18 days | ' | '7 years | ' | ' | ' | ' | ' | ' | ' |
Options exercisable, aggregate intrinsic value | ' | ' | ' | ' | 66,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable, weighted average remaining contractual term (in years) | ' | ' | ' | ' | '4 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of stock options exercised | ' | ' | ' | ' | 9,400,000 | 11,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Closing stock price | ' | ' | $15.83 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized share based compensation cost | ' | ' | ' | ' | 67,700,000 | ' | ' | 140,700,000 | 14,400,000 | ' | ' | ' | ' | ' |
Unrecognized share based compensation cost, weighted-average period of recognition | ' | ' | ' | ' | '2 years 10 months 24 days | ' | ' | '2 years 1 month 6 days | ' | ' | ' | ' | ' | ' |
Restricted stock units, aggregate intrinsic value | ' | ' | ' | ' | ' | ' | ' | 157,900,000 | ' | ' | ' | ' | ' | ' |
Restricted stock units vested and expected to vest | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' |
Performance awards vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | 50.00% | 50.00% |
Employee stock purchase plan, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' |
Share repurchase program, shares repurchased | 0 | 19.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase program, amount repurchased | ' | 200,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase program, cumulative shares repurchased | 216.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase program, total amount of repurchases | 2,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase program, remaining available for future share repurchases | 258,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per share, paid | $0.06 | $0.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Dividends paid | $30,172,000 | $30,253,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per share, declared | $0.06 | $0.06 | ' | $0.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared, date to be paid | ' | ' | ' | 2-Jul-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared, date of record | ' | ' | ' | 12-Jun-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Activity_Related_to_Non_Vested
Activity Related to Non Vested Portion of Restricted Stock Units (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | 3-May-14 | |
Time Based Restricted Units | ' | |
Restricted Stock Units Outstanding | ' | |
Beginning Balance | 11,254 | |
Granted | 4,588 | |
Vested | -5,172 | |
Canceled/Forfeited | -272 | |
Ending Balance | 10,398 | |
Weighted Average Grant Date Fair Value | ' | |
Beginning Balance | $14.11 | |
Granted | $15.44 | |
Vested | $14.06 | |
Canceled/Forfeited | $13.74 | |
Ending Balance | $14.77 | |
Performance Based Restricted Stock Unit | ' | |
Restricted Stock Units Outstanding | ' | |
Beginning Balance | 100 | |
Granted | 757 | [1] |
Vested | -3 | |
Canceled/Forfeited | -97 | |
Ending Balance | 757 | |
Weighted Average Grant Date Fair Value | ' | |
Beginning Balance | $10.52 | |
Granted | $15.51 | [1] |
Vested | $10.52 | |
Canceled/Forfeited | $10.52 | |
Ending Balance | $15.51 | |
Restricted Stock Units (RSUs) | ' | |
Restricted Stock Units Outstanding | ' | |
Beginning Balance | 11,354 | |
Granted | 5,345 | |
Vested | -5,175 | |
Canceled/Forfeited | -369 | |
Ending Balance | 11,155 | |
Weighted Average Grant Date Fair Value | ' | |
Beginning Balance | $14.08 | |
Granted | $15.45 | |
Vested | $14.06 | |
Canceled/Forfeited | $12.90 | |
Ending Balance | $14.82 | |
[1] | Amounts represent the target number of restricted stock units. Up to 200% of the target restricted stock units may vest if the maximum level for financial and strategic goals is achieved. |
Activity_Related_to_Non_Vested1
Activity Related to Non Vested Portion of Restricted Stock Units (Parenthetical) (Detail) (Maximum) | 3 Months Ended |
3-May-14 | |
Maximum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Restricted stock unit vested | 200.00% |
Total_Stock_Compensation_by_Ex
Total Stock Compensation by Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | $29,969 | $33,513 |
Cost of goods sold | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | 2,299 | 1,867 |
Research and development | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | 20,368 | 23,279 |
Selling and marketing | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | 2,928 | 3,392 |
General and administrative | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation expense | $4,374 | $4,975 |
Share_Based_Compensation_Addit
Share Based Compensation - Additional Information (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock-based compensation capitalized in inventory | $1.40 | $1.70 |
Weighted_Average_Assumptions_U
Weighted Average Assumptions Used to Calculate Fair Value of Time Based Equity Award (Detail) (Time Based Option Award, USD $) | 3 Months Ended | |
3-May-14 | 4-May-13 | |
Time Based Option Award | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average fair value | $4.64 | $3.41 |
Expected volatility | 36.00% | 45.00% |
Expected term (in years) | '5 years | '5 years |
Risk-free interest rate | 1.60% | 0.80% |
Expected dividend yield | 1.60% | 2.40% |