Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Apr. 30, 2017 | Jun. 09, 2017 | Oct. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FINISAR CORP | ||
Entity Central Index Key | 1,094,739 | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 111,526,276 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2.3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2017 | May 01, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 260,228 | $ 299,221 |
Short-term investments | 976,595 | 263,255 |
Accounts receivable, net of allowance for doubtful accounts of $756 at April 30, 2017 and $727 at May 1, 2016 | 272,377 | 249,257 |
Accounts receivable, other | 48,807 | 44,576 |
Inventories | 331,388 | 273,291 |
Prepaid expenses and other current assets | 19,462 | 18,483 |
Total current assets | 1,908,857 | 1,148,083 |
Property, equipment and improvements, net | 383,919 | 348,613 |
Purchased intangible assets, net | 13,019 | 18,388 |
Goodwill | 106,736 | 106,736 |
Minority investments | 3,162 | 4,051 |
Other assets | 16,964 | 14,655 |
Deferred tax assets | 107,225 | 4,845 |
Total assets | 2,539,882 | 1,645,371 |
Current liabilities: | ||
Accounts payable | 140,568 | 141,591 |
Accrued compensation | 54,520 | 36,084 |
Other current liabilities | 43,698 | 42,206 |
Deferred revenue | 13,015 | 13,529 |
Total current liabilities | 251,801 | 233,410 |
Long-term liabilities: | ||
Convertible debt | 707,782 | 229,393 |
Other non-current liabilities | 17,594 | 14,882 |
Total liabilities | 977,177 | 477,685 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding at April 30, 2017 and May 1, 2016 | 0 | 0 |
Common stock, $0.001 par value, 750,000,000 shares authorized, 111,519,186 shares issued and outstanding at April 30, 2017 and 107,696,314 shares issued and outstanding at May 1, 2016 | 112 | 108 |
Additional paid-in capital | 2,784,204 | 2,605,859 |
Accumulated other comprehensive (loss) income | (57,864) | (25,188) |
Accumulated deficit | (1,163,747) | (1,413,093) |
Total stockholders' equity | 1,562,705 | 1,167,686 |
Total liabilities and stockholders’ equity | $ 2,539,882 | $ 1,645,371 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Apr. 30, 2017 | May 01, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 756 | $ 727 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (shares) | 111,519,186 | 107,696,314 |
Common stock, shares outstanding (shares) | 111,519,186 | 107,696,314 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Income Statement [Abstract] | |||
Revenues | $ 1,449,303 | $ 1,263,166 | $ 1,250,944 |
Cost of revenues | 941,164 | 901,316 | 888,573 |
Amortization of acquired developed technology | 4,492 | 6,129 | 5,739 |
Impairment of long-lived assets | 0 | 1,071 | 5,722 |
Gross profit | 503,647 | 354,650 | 350,910 |
Operating expenses: | |||
Research and development | 217,914 | 203,389 | 202,089 |
Sales and marketing | 50,644 | 46,619 | 46,178 |
General and administrative | 55,442 | 60,117 | 72,856 |
Amortization of purchased intangibles | 2,762 | 2,672 | 2,948 |
Impairment of long-lived assets | 0 | 830 | 45 |
Total operating expenses | 326,762 | 313,627 | 324,116 |
Income from operations | 176,885 | 41,023 | 26,794 |
Interest income | 6,763 | 2,345 | 1,811 |
Interest expense | (20,363) | (11,750) | (12,022) |
Other income (expense), net | (91) | 3,213 | 4,099 |
Income before income taxes | 163,194 | 34,831 | 20,682 |
Provision for (benefit from) income taxes | (86,152) | (362) | 8,795 |
Net income | $ 249,346 | $ 35,193 | $ 11,887 |
Net income per share: | |||
Basic (in dollars per share) | $ 2.26 | $ 0.33 | $ 0.12 |
Diluted (in dollars per share) | $ 2.19 | $ 0.32 | $ 0.11 |
Shares used in computing net income per share: | |||
Basic (shares) | 110,405 | 106,678 | 101,408 |
Diluted (shares) | 114,097 | 108,870 | 104,970 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 249,346 | $ 35,193 | $ 11,887 |
Other comprehensive loss, net of tax: | |||
Change in cumulative foreign currency translation adjustment | (32,676) | (26,049) | (19,164) |
Total other comprehensive loss, net of tax | (32,676) | (26,049) | (19,164) |
Total comprehensive income (loss) | $ 216,670 | $ 9,144 | $ (7,277) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total Finisar Stockholders’ Equity | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Apr. 27, 2014 | 97,281,665 | |||||
Beginning balance at Apr. 27, 2014 | $ 1,016,059 | $ 97 | $ 2,456,110 | $ 20,025 | $ (1,460,173) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 11,887 | 11,887 | ||||
Other comprehensive loss, net | $ (19,164) | (19,164) | (19,164) | |||
Issuance of shares pursuant to equity plans, net of tax withholdings (in shares) | 2,453,668 | |||||
Issuance of shares pursuant to equity plans, net of tax withholdings | (751) | $ 3 | (754) | |||
Issuance of shares pursuant to employee stock purchase plan (in shares) | 525,032 | |||||
Issuance of shares pursuant to employee stock purchase plan | 8,584 | 8,584 | ||||
Share-based compensation expense | 44,600 | 44,600 | ||||
Employer contribution in defined contribution retirement plan (in shares) | 122,979 | |||||
Employer contribution to defined contribution retirement plan | 2,563 | 2,563 | ||||
Issuance of shares upon conversion of convertible debt (in shares) | 3,748,473 | |||||
Issuance of shares upon conversion of convertible debt | 40,015 | $ 4 | 40,011 | |||
Ending balance (in shares) at May. 03, 2015 | 104,131,817 | |||||
Ending balance at May. 03, 2015 | 1,103,793 | $ 104 | 2,551,114 | 861 | (1,448,286) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 35,193 | 35,193 | ||||
Other comprehensive loss, net | (26,049) | (26,049) | (26,049) | |||
Issuance of shares pursuant to equity plans, net of tax withholdings (in shares) | 2,761,884 | |||||
Issuance of shares pursuant to equity plans, net of tax withholdings | (1,920) | $ 3 | (1,923) | |||
Issuance of shares pursuant to employee stock purchase plan (in shares) | 639,149 | |||||
Issuance of shares pursuant to employee stock purchase plan | 8,981 | $ 1 | 8,980 | |||
Share-based compensation expense | 45,243 | 45,243 | ||||
Employer contribution in defined contribution retirement plan (in shares) | 163,464 | |||||
Employer contribution to defined contribution retirement plan | 2,445 | 2,445 | ||||
Ending balance (in shares) at May. 01, 2016 | 107,696,314 | |||||
Ending balance at May. 01, 2016 | 1,167,686 | 1,167,686 | $ 108 | 2,605,859 | (25,188) | (1,413,093) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 249,346 | 249,346 | ||||
Other comprehensive loss, net | (32,676) | (32,676) | (32,676) | |||
Issuance of shares pursuant to equity plans, net of tax withholdings (in shares) | 2,997,093 | |||||
Issuance of shares pursuant to equity plans, net of tax withholdings | 7,556 | $ 3 | 7,553 | |||
Issuance of shares pursuant to employee stock purchase plan (in shares) | 740,739 | |||||
Issuance of shares pursuant to employee stock purchase plan | 9,334 | $ 1 | 9,333 | |||
Share-based compensation expense | 49,879 | 49,879 | ||||
Employer contribution in defined contribution retirement plan (in shares) | 85,040 | |||||
Employer contribution to defined contribution retirement plan | 2,782 | 2,782 | ||||
Issuance of shares upon conversion of convertible debt | 108,798 | 108,798 | ||||
Ending balance (in shares) at Apr. 30, 2017 | 111,519,186 | |||||
Ending balance at Apr. 30, 2017 | $ 1,562,705 | $ 1,562,705 | $ 112 | $ 2,784,204 | $ (57,864) | $ (1,163,747) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Operating activities | |||
Net income | $ 249,346 | $ 35,193 | $ 11,887 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 87,016 | 85,264 | 82,699 |
Amortization | 8,203 | 9,416 | 9,374 |
Stock-based compensation expense | 52,598 | 47,508 | 46,613 |
Amortization of discount on held-to-maturity investments | (2,045) | 0 | 0 |
Equity in losses (earnings) of equity method investment | 250 | (1,200) | (730) |
(Gain) loss on sale or retirement of assets and asset disposal groups | 149 | (405) | (1,955) |
Impairment of long-lived assets | 0 | 1,901 | 5,767 |
Impairment of minority investment | 643 | 0 | 0 |
Amortization of discount on convertible debt | 16,935 | 9,604 | 9,153 |
Deferred tax (benefit) expense | (101,534) | (4,928) | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (23,120) | (36,023) | 12,238 |
Inventories | (73,582) | (4,221) | (37,542) |
Other assets | (8,365) | 19,728 | (17,098) |
Accounts payable | (1,023) | 10,081 | 12,024 |
Accrued compensation | 18,436 | 11,166 | (17,505) |
Deferred revenue | (514) | 3,679 | (5,816) |
Other liabilities | 4,439 | (3,163) | 4,488 |
Net cash provided by operating activities | 227,832 | 183,600 | 113,597 |
Investing activities | |||
Additions to property, equipment and improvements | (140,106) | (118,825) | (149,193) |
Proceeds from sale of property and equipment and asset disposal groups | 504 | 844 | 2,477 |
Purchases of short-term investments | (1,032,474) | (261,179) | (462,935) |
Maturities of short-term investments | 321,178 | 290,542 | 380,276 |
Purchase of intangible assets | (1,885) | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 | (2,728) |
Proceeds from sale of minority investments | 0 | 0 | 1,470 |
Net cash used in investing activities | (852,783) | (88,618) | (230,633) |
Financing activities | |||
Repayments of term loans | (234) | (265) | (337) |
Proceeds from issuance of 0.50% Convertible Senior Notes due 2036, net of issuance costs | 569,302 | 0 | 0 |
Proceeds from issuance of shares under equity plans and employee stock purchase plan | 16,890 | 7,061 | 11,715 |
Net cash provided by financing activities | 585,958 | 6,796 | 11,378 |
Net increase (decrease) in cash and cash equivalents | (38,993) | 101,778 | (105,658) |
Cash and cash equivalents at beginning of year | 299,221 | 197,443 | 303,101 |
Cash and cash equivalents at end of year | 260,228 | 299,221 | 197,443 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 1,298 | 1,314 | 2,340 |
Cash paid for taxes | 11,108 | 9,590 | 4,984 |
Supplemental disclosure of non-cash transactions | |||
Issuance of common stock upon conversion of 5.0% Convertible Senior Notes due 2029 | $ 0 | $ 0 | $ 40,015 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | May 03, 2015 |
5.0% Convertible Senior Notes Due 2029 | |
Interest rate | 5.00% |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Apr. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company has a 52- or 53-week fiscal year ending on the Sunday closest to the last day of April in each year. Fiscal 2017, 2016 and 2015 had 52, 52, and 53 weeks, respectively, and fiscal 2018 will have 52 weeks. Fourth quarter of fiscal 2015 was a 14-week quarter. The consolidated financial statements include the accounts of Finisar Corporation and its controlled subsidiaries (collectively “Finisar” or the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. Reclassifications Certain reclassifications have been made to the prior year balance sheet and statement of cash flows related to presentation of deferred tax assets resulting from the release of deferred tax valuation allowance in fiscal 2017. These changes had no effect on previously reported results of operations and stockholders' equity. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition The Company’s revenue transactions consist predominately of sales of products to customers. Product revenues are generally recognized in the period in which persuasive evidence of an arrangement exists, title and risk of loss have passed to the customer, generally upon shipment, the price is fixed or determinable, and collectability is reasonably assured. At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses associated with sales, recorded as a component of cost of revenues. The Company’s customers generally do not have return rights. However, the Company has established an allowance for estimated customer returns, based on historical experience, which is netted against revenue. Sales to certain distributors are made under agreements providing distributor price adjustments and rights of return under certain circumstances. Revenue and costs relating to sales to distributors with price protection and rights of return are deferred until products are sold by the distributors to end customers. Revenue recognition depends on notification from the distributor that product has been sold to the end customer. Also reported by the distributor are product resale price, quantity and end customer shipment information, as well as inventory on hand. Deferred revenue on shipments to distributors reflects the effects of distributor price adjustments and the amount of gross margin expected to be realized when distributors sell-through products purchased from us. Accounts receivable from distributors are recognized and inventory is relieved when title to inventories transfers, typically upon shipment from us at which point we have a legally enforceable right to collection under normal payment terms. Segment Reporting The Financial Accounting Standards Board's (FASB) authoritative guidance regarding segment reporting establishes standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. It also establishes standards for related disclosures about products and services, geographic areas and major customers. The Company has determined that it operates in one reportable segment comprising optical subsystems and components. Optical subsystems consist primarily of transceivers sold to manufacturers of storage and networking equipment for data communication and telecommunication applications. Optical subsystems also include multiplexers, de-multiplexers and optical add/drop modules for use in telecommunication applications. Optical components consist primarily of packaged lasers and photo-detectors which are incorporated in transceivers for data communication and telecommunication applications. Concentrations of Risk Financial instruments which potentially subject the Company to concentrations of credit risk include cash and cash equivalents, short-term investment and accounts receivable. The Company invests only in high-quality credit instruments and maintains its cash, cash equivalents and short-term investments with several high-quality credit financial institutions. Deposits held with banks, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. Concentrations of credit risk, with respect to accounts receivable, exist to the extent of amounts presented in the financial statements. Generally, the Company does not require collateral or other security to support customer receivables. The Company performs periodic credit evaluations of its customers and maintains an allowance for potential credit losses based on historical experience and other information available to management. Losses to date have not been material. The Company’s ten largest customers represented 56% and 55% of total accounts receivable at April 30, 2017 and May 1, 2016 , respectively. Two customers, Jabil and Flextronics, represented 12% and 11% , respectively, of total accounts receivable as of April 30, 2017 . One customer, Huawei, represented 18% of total accounts receivable as of May 1, 2016 . Sales to the Company’s ten largest customers represented 56% , 56% and 55% of total revenues during fiscal 2017 , 2016 and 2015 , respectively. Two customers, Cisco Systems and Huawei, represented 12% and 11% , respectively, of total revenues during fiscal 2017. Two customers, Huawei and Cisco Systems, represented 12% and 11% , respectively, of total revenues during fiscal 2016. One customer, Cisco Systems, represented 14% of total revenues during fiscal 2015. The Company relies on single and limited suppliers for a number of key components. The Company relies primarily on a limited number of significant independent contract manufacturers for the production of certain key components and subassemblies, including lasers, modulators, and printed circuit boards. Included in the Company’s consolidated balance sheet at April 30, 2017 are the net assets of the Company’s operations located at its overseas facilities totaling approximately $510.9 million . Foreign Currency Translation The functional currency of the Company's foreign subsidiaries is the local currency. Assets and liabilities denominated in foreign currencies are translated using the exchange rate on the balance sheet date. Revenues and expenses are translated using average exchange rates prevailing during the year. Any translation adjustments resulting from this process are shown separately as a component of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses are included in the determination of net income (loss). Included in the determination of net income for fiscal 2017 , 2016 and 2015 were $539,000 , $(1.2) million and $(479,000) , respectively, of gains (losses) on foreign currency transactions. Research and Development Research and development expenditures are charged to operations as incurred. Shipping and Handling Costs The Company records costs related to shipping and handling in cost of sales for all periods presented. Cash and Cash Equivalents Finisar’s cash equivalents consist of money market funds. Finisar considers all highly liquid investments with an original maturity from the date of purchase of three months or less to be cash equivalents. Minority Investments The Company uses the cost method of accounting for investments in companies that do not have a readily determinable fair value in which it holds an interest of less than 20% and over which it does not have the ability to exercise significant influence. For entities in which the Company holds an interest of greater than 20% or in which the Company does have the ability to exercise significant influence, the Company uses the equity method. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company's proportionate share of earnings or losses and distributions. Such proportionate share of earnings or losses is included in other income (expense), net in the consolidated statement of operations. In determining if and when a decline in the market value of these investments below their carrying value is other-than-temporary, the Company evaluates the market conditions, offering prices, trends of earnings and cash flows, price multiples, prospects for liquidity and other key measures of performance. The Company’s policy is to recognize an impairment in the value of its minority equity investments when clear evidence of an impairment exists. Factors considered in this assessment include (a) the completion of a new equity financing that may indicate a new value for the investment, (b) the failure to complete a new equity financing arrangement after seeking to raise additional funds or (c) the commencement of proceedings under which the assets of the business may be placed in receivership or liquidated to satisfy the claims of debt and equity stakeholders. The Company’s minority investments in private companies are generally made in exchange for preferred stock with a liquidation preference that is intended to help protect the underlying value of its investment. Fair Value Accounting The FASB authoritative guidance regarding fair valuation defines fair value and establishes a framework for measuring fair value and expands the related disclosure requirements. The guidance requires or permits fair value measurements with certain exclusions. It provides that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. Valuation techniques used to measure fair value under this guidance must maximize the use of observable inputs and minimize the use of unobservable inputs. It describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company's own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities have carrying amounts which approximate fair value due to the short-term maturity of these instruments. See Note 12 for additional details regarding the fair value of the Company’s financial instruments. Allowance for Doubtful Accounts The Company evaluates the collectability of its accounts receivable based on a combination of factors. In circumstances where, subsequent to delivery, the Company becomes aware of a customer’s potential inability to meet its obligations, it records a specific allowance for the doubtful account to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes an estimated allowance for doubtful accounts based on the length of time the receivables are past due and historical actual bad debt history. A material adverse change in a major customer’s ability to meet its financial obligations to the Company could result in a material reduction in the estimated amount of accounts receivable that can ultimately be collected and an increase in the Company’s general and administrative expenses for the shortfall. Accounts receivable are charged against the allowance for doubtful accounts when identified as fully uncollectable. Inventories Inventories are stated at the lower of cost (determined on a first-in, first-out basis) or market. The Company permanently writes down to its estimated net realizable value the cost of inventory that the Company specifically identifies and considers obsolete or excessive to fulfill future sales estimates. The Company defines obsolete inventory as inventory that will no longer be used in the manufacturing process. Excess inventory is generally defined as inventory in excess of projected usage and is determined using management’s best estimate of future demand, based upon information then available to the Company. The Company also considers: (1) parts and subassemblies that can be used in alternative finished products, (2) parts and subassemblies that are unlikely to be engineered out of the Company’s products, and (3) known design changes which would reduce the Company’s ability to use the inventory as planned. Inventory on hand that is in excess of future demand is written down to its estimated net realizable value. Obligations to purchase inventory acquired by subcontractors based on forecasts provided by the Company are recognized at the time such obligations arise. Property, Equipment and Improvements Property, equipment and improvements are stated at cost, net of accumulated depreciation and amortization. Property, equipment and improvements are depreciated on a straight-line basis over the estimated useful lives of the assets, generally three years to seven years, except for buildings which are depreciated over 25 to 30 years . Land is carried at acquisition cost and not depreciated. Leased land is depreciated over the life of the lease. Goodwill and Other Intangible Assets Goodwill, purchased technology and other intangible assets resulting from acquisitions are accounted for under the acquisition method. Intangible assets with finite lives are amortized over their estimated useful lives. Amortization of purchased technology and other intangibles has been recorded on a straight-line basis over periods ranging from three to 15 years. Goodwill is assessed for impairment annually or more frequently when an event occurs or circumstances change between annual impairment tests that would more likely than not reduce the fair value of the reporting unit holding the goodwill below its carrying value. Accounting for the Impairment of Long-Lived Assets The Company periodically evaluates whether changes have occurred to long-lived assets that would require revision of the remaining estimated useful life of the property, improvements and finite-lived intangible assets or render them not recoverable. If such circumstances arise, the Company uses an estimate of the undiscounted value of expected future operating cash flows to determine whether the long-lived assets are impaired. If the aggregate undiscounted cash flows are less than the carrying amount of the assets, the resulting impairment charge to be recorded is calculated based on the excess of the carrying value of the assets over the fair value of such assets, with the fair value determined based on an estimate of discounted future cash flows. During the first quarter of fiscal 2016 and the third quarter of fiscal 2015, the Company recorded a $1.9 million and $5.8 million , respectively, charges for the impairment of long-lived assets (primarily machinery and equipment) due to the projected cash flows associated with these assets not supporting the carrying values of these assets. In accordance with the guidance for the impairment of long-lived assets, these assets were written down to their estimated fair value of zero, which was determined based on an income approach using the discounted cash flow method. Restructuring Costs The Company recognizes liability for exit and disposal activities when the liability is incurred. Facilities consolidation charges are calculated using estimates and are based upon the remaining future lease commitments for vacated facilities from the date of facility consolidation, net of estimated future sublease income. The estimated costs of vacating these leased facilities are based on market information and trend analysis, including information obtained from third party real estate sources. Stock-Based Compensation Expense The Company measures and recognizes compensation expense for all stock-based payment awards made to employees and directors including restricted stock units and employee stock purchases under the Company’s Employee Stock Purchase Plan based on estimated fair values. The Company uses the grant-date fair value of its common stock to determine the fair value of restricted stock units. The Company uses the Black-Scholes option pricing model to determine the fair value of employee stock purchase rights. The fair value of the awards is recognized as expense in the consolidated statements of operations under the single-option approach on a straight-line basis over the requisite service periods. Income Taxes The Company uses the liability method to account for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities and their reported amounts, along with net operating loss carryforwards and credit carryforwards. This method also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that a portion of the deferred tax asset will not be realized. The Company provides for income taxes based upon the geographic composition of worldwide earnings and tax regulations governing each region. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Also, the Company’s current effective tax rate assumes that United States income taxes are not provided for the undistributed earnings of non-United States subsidiaries. The Company intends to indefinitely reinvest the earnings of all foreign corporate subsidiaries for past and subsequent accumulated earnings. Recent and Pending Adoption of New Accounting Standards In April 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update simplifying the presentation of debt issuance costs as a direct deduction from the carrying value of the debt liability rather than showing the debt issuance costs as an asset. The Company adopted this update in the first quarter of fiscal 2017 on a retrospective basis. Accordingly, $1.6 million of unamortized debt issuance costs were reclassified from Other Assets to Convertible Debt in the consolidated balance sheet as of May 1, 2016. In March 2016, the FASB issued an accounting standards update simplifying several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted all provisions of this update in the first quarter of fiscal 2017. Adoption of this update did not have a significant effect on the Company's consolidated financial position, results of operations and cash flows. As part of this adoption, the Company made an accounting policy election to account for forfeitures as they occur, rather than continue to estimate the number of stock-based awards that are expected to vest. In May 2014, the FASB, jointly with the International Accounting Standards Board, issued a comprehensive new standard on revenue recognition from contracts with customers. The standard's core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this new guidance to contracts within its scope, an entity will: (1) identify the contract(s) with a customer, (2) identify the performance obligation in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, this new guidance would require significantly expanded disclosures about revenue recognition. Provisions of this new standard are effective for annual reporting periods (including interim reporting periods within those annual periods) beginning after December 15, 2016. In April 2015, the FASB proposed a deferral of this standard's effective date by one year. The proposed deferral allows early adoption at the original effective date. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. The Company plans to adopt this standard using a modified retrospective approach. The Company's assessment has identified a change in revenue recognition timing on sales made to distributors. The Company expects to recognize revenue upon delivery of products to the distributor (in accordance with established shipping and delivery terms) rather than deferring recognition until the distributor sells the product to the end customer. On the date of the initial application, the Company will remove the deferred revenue on sales to distributors through a cumulative adjustment to retained earnings. The Company is continuing its evaluation of any additional potential effects on its consolidated financial position, results of operations and cash flows, as well as changes to its accounting policies and disclosures, from adoption of this standard. In February 2016, the FASB issued an accounting standards update which replaces the current lease accounting standard. The update will require, among other items, lessees to recognize a right-of-use asset and a lease liability for most leases. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. The update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. The Company is currently evaluating the timing of adoption and potential effect on its consolidated financial position, results of operations and cash flows from adoption of this update. From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Apr. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic net income per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from stock options and restricted stock units (under the treasury stock method), 5.0% Convertible Senior Notes due 2029 (on an as-if-converted basis), 0.50% Convertible Senior Notes due 2033 (under the treasury stock method), and 0.50% Convertible Senior Notes due 2036 (under the treasury stock method) outstanding during the period. The following table presents the calculation of basic and diluted net income per share: Fiscal Years Ended (in thousands, except per share amounts) April 30, 2017 May 1, 2016 May 3, 2015 Numerator: Net income $ 249,346 $ 35,193 $ 11,887 Numerator for basic income per share $ 249,346 $ 35,193 $ 11,887 Effect of dilutive securities: Interest expense on 5.0% Convertible Senior Notes due 2029 n/a n/a — Numerator for diluted income per share $ 249,346 $ 35,193 $ 11,887 Denominator: Denominator for basic income per share - weighted average shares 110,405 106,678 101,408 Effect of dilutive securities: Stock options and restricted stock units 3,692 2,192 3,562 5.0% Convertible Senior Notes due 2029 n/a n/a — Dilutive potential common shares 3,692 2,192 3,562 Denominator for diluted income per share 114,097 108,870 104,970 Net income per share: Basic $ 2.26 $ 0.33 $ 0.12 Diluted $ 2.19 $ 0.32 $ 0.11 The following table presents common shares related to potentially dilutive securities excluded from the calculation of diluted net income per share as their effect would have been anti-dilutive: Fiscal Years Ended (in thousands) April 30, 2017 May 1, 2016 May 3, 2015 Stock options and restricted stock units 207 3,069 880 Conversion of 5.0% Convertible Senior Notes due 2029 n/a n/a — 207 3,069 880 0.50% Convertible Senior Notes due 2033 and 0.50% Convertible Senior Notes due 2036 were excluded from the calculation of diluted earnings per share under the treasury stock method for the periods when the conversion price exceeded the average market price for the Company's common stock. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Apr. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following tables reflect intangible assets as of April 30, 2017 and May 1, 2016 : April 30, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Purchased technology $ 107,759 $ (101,367 ) $ 6,392 Purchased trade name 1,172 (1,172 ) — Purchased customer relationships 21,344 (17,752 ) 3,592 Purchased internal use software and backlog 2,816 (2,643 ) 173 Purchased patents 4,505 (1,643 ) 2,862 Total $ 137,596 $ (124,577 ) $ 13,019 May 1, 2016 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Purchased technology $ 107,759 $ (96,875 ) $ 10,884 Purchased trade name 1,172 (1,172 ) — Purchased customer relationships 21,344 (15,700 ) 5,644 Purchased internal use software and backlog 2,816 (2,317 ) 499 Purchased patents 2,620 (1,259 ) 1,361 Total $ 135,711 $ (117,323 ) $ 18,388 The amortization expense on intangible assets was $7.3 million , $8.8 million and $8.7 million for fiscal 2017 , 2016 and 2015 , respectively. Estimated amortization expense for each of the next five fiscal years and thereafter as of April 30, 2017 is as follows: Year Amount (in thousands) 2018 $ 5,141 2019 3,696 2020 2,224 2021 704 2022 306 Beyond 2022 948 Total $ 13,019 |
Investments
Investments | 12 Months Ended |
Apr. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Fixed Income Securities The Company's portfolio of fixed income securities consists of commercial paper notes and term bank certificates of deposit. All of the Company's investments in fixed income securities have original maturity (maturity at the purchase date) of less than 12 months and are reported as short-term investments in the consolidated balance sheets as of April 30, 2017 and May 1, 2016 . All of the Company's investments in fixed income securities are classified as held-to-maturity since the Company has the positive intent and ability to hold these investments until maturity. These investments are carried at amortized cost. The Company's investments in fixed income securities as of April 30, 2017 and May 1, 2016 were as follows: April 30, 2017 May 1, 2016 Gross Unrealized Gross Unrealized (in thousands) Amortized Cost Gains Losses Fair Value Amortized Cost Gains Losses Fair Value Commercial paper $ 571,592 $ — $ — $ 571,592 $ — $ — $ — $ — Certificates of deposit 405,003 — — 405,003 263,255 — — 263,255 Total $ 976,595 $ — $ — $ 976,595 $ 263,255 $ — $ — $ 263,255 The Company monitors its investment portfolio for impairment on a periodic basis. In order to determine whether a decline in fair value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value; the Company's financial condition and business outlook, including key operational and cash flow metrics, current market conditions and future trends in its industry; the Company's relative competitive position within the industry; and the Company's intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. A decline in the fair value of the security below amortized cost that is deemed other-than-temporary is charged to earnings, resulting in the establishment of a new cost basis for the affected securities. During fiscal 2017, 2016 and 2015 there were no realized gains or losses, and the Company did not recognize any other-than-temporary impairments. Minority Investments The Company's portfolio of minority investments consists of investments in privately held early stage companies. These investments were primarily motivated by the Company's desire to gain early access to new technology. The Company’s investments are passive in nature in that the Company generally does not obtain representation on the board of directors of the companies in which it invests. The Company's minority investments as of April 30, 2017 and May 1, 2016 were as follows: April 30, 2017 May 1, 2016 (dollars in thousands) Number of Investments Carrying Value Number of Investments Carrying Value Cost method three $ 603 three $ 1,242 Equity method one (1) 2,559 one 2,809 Total $ 3,162 $ 4,051 (1) As of April 30, 2017 , the Company had a 19.9% ownership interest in this company. During the third quarter of fiscal 2017, the Company recorded a $643,000 impairment loss (included in other income (expense) in the consolidated statement of operations) related to one of its cost method minority investments as a result of an equity transaction by the investee at a price per share lower than the value at which the investment was carried by the Company. |
Inventories
Inventories | 12 Months Ended |
Apr. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): As of April 30, 2017 May 1, 2016 Raw materials $ 66,560 $ 52,948 Work-in-process 173,302 142,757 Finished goods 91,526 77,586 Total inventories $ 331,388 $ 273,291 Including: inventory consigned to others $ 40,363 $ 44,600 |
Property, Equipment and Improve
Property, Equipment and Improvements, Net | 12 Months Ended |
Apr. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Improvements, Net | Property, Equipment and Improvements, Net Property, equipment and improvements consist of the following (in thousands): As of April 30, 2017 May 1, 2016 Land and buildings $ 100,850 $ 98,586 Computer equipment 68,309 64,155 Office equipment, furniture and fixtures 5,764 5,901 Machinery and equipment 587,442 518,649 Leasehold property and improvements 44,724 41,826 Total 807,089 729,117 Accumulated depreciation and amortization (423,170 ) (380,504 ) Property, equipment and improvements, net $ 383,919 $ 348,613 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Apr. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consist of the following (in thousands): As of April 30, 2017 May 1, 2016 Warranty accrual (Note 9) $ 4,417 $ 12,001 Other liabilities 39,281 30,205 Total $ 43,698 $ 42,206 |
Warranty
Warranty | 12 Months Ended |
Apr. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Warranty | Warranty The Company generally offers a one-year limited warranty for its products. The specific terms and conditions of these warranties vary depending upon the product sold. The Company estimates the costs that may be incurred under its basic limited warranty and records a liability for the amount of such costs at the time revenue is recognized. Factors that affect the Company’s warranty liability include the historical and anticipated rates of warranty claims and cost to repair. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Changes in the Company’s warranty liability during the following periods were as follows: As of (in thousands) April 30, 2017 May 1, 2016 Beginning balance $ 12,001 $ 6,451 Additions during the period based on product sold 3,579 9,548 Change in estimates (2,081 ) (734 ) Settlements and expirations (9,082 ) (3,264 ) Ending balance $ 4,417 $ 12,001 |
Debt
Debt | 12 Months Ended |
Apr. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt 0.50% Convertible Senior Notes Due 2036 In December 2016, the Company issued and sold $575.0 million in aggregate principal amount of 0.50% Convertible Senior Notes due 2036 (the "2036 Notes") at par. The terms of the 2036 Notes are governed by an indenture by and between the Company and Wells Fargo Bank, National Association, as Trustee. The 2036 Notes will mature on December 15, 2036, unless earlier repurchased, redeemed or converted. The 2036 Notes are senior unsecured and unsubordinated obligations of the Company, and are effectively subordinated to the Company's secured indebtedness and the indebtedness and other liabilities of the Company's subsidiaries. The 2036 Notes bear interest at a rate of 0.5% per year, payable semi-annually in arrears on June 15 and December 15 each year. Holders of the 2036 Notes may convert their 2036 Notes at their option prior to the close of business on the business day immediately preceding June 15, 2036 only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on January 29, 2017 (and only during such fiscal quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period ("measurement period"), in which the trading price per $1,000 principal amount of the 2036 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the applicable conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after June 15, 2036 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2036 Notes at any time, regardless of whether any of the foregoing circumstances have occurred. The conversion rate will initially equal 22.6388 shares of common stock per $1,000 principal amount of the 2036 Notes (which is equivalent to an initial conversion price of approximately $44.17 per share of common stock), subject to adjustment. Upon conversion of a note, the Company will pay or deliver, as the case may be, either cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company's election, as provided in the indenture. If holders elect to convert their 2036 Notes in connection with a "fundamental change" (as defined in the indenture) that occurs on or before December 22, 2021, the Company will, to the extent provided in the indenture, increase the conversion rate applicable to such 2036 Notes ("make-whole feature"). In the event of a fundamental change, holders will have the option to require the Company to redeem for cash any 2036 Notes held by them at a purchase price equal to 100% of the principal amount of the 2036 Notes plus accrued and unpaid interest to, but excluding, the redemption date. Holders also have the option to require the Company to redeem for cash any 2036 Notes held by them on December 15, 2021, December 15, 2026 and December 15, 2031 at a redemption price equal to 100% of the principal amount of the 2036 Notes plus accrued and unpaid interest to, but excluding, the redemption date. The Company may redeem the 2036 Notes in whole or in part at any time on or after December 22, 2021 at 100% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date. The Company considered the features embedded in the 2036 Notes, that is, the conversion feature, the holders' put feature, the Company's call feature, and the make-whole feature, and concluded that they are not required to be bifurcated and accounted for separately from the host debt instrument. Because of its option to settle conversion of the 2036 Notes in cash, the Company separated the liability and equity components of the 2036 Notes. The carrying amount of the liability component at issuance date of $465.1 million was calculated by estimating the fair value of similar liabilities without a conversion feature. The residual principal amount of the 2036 Notes of $109.9 million was allocated to the equity component. The resulting debt discount is amortized as interest expense. As of April 30, 2017 , the remaining debt discount amortization period was 56 months . The 2036 Notes consisted of the following: As of (in thousands) April 30, 2017 May 1, 2016 Liability component: Principal $ 575,000 n/a Unamortized debt discount (103,022 ) n/a Unamortized debt issuance costs (4,281 ) n/a Net carrying amount of the liability component $ 467,697 n/a Carrying amount of the equity component $ 109,881 n/a The Company incurred approximately $5.7 million in transaction costs in connection with the issuance of the 2036 Notes. These costs were allocated to the liability and equity components in proportion to the allocation of proceeds. Transaction costs of $4.6 million , allocated to the liability component, were recognized as a non-current asset and are being amortized. Transaction costs of $1.1 million , allocated to the equity component, were recognized as a reduction of additional paid-in capital. The following table sets forth interest expense information related to the 2036 Notes: Fiscal Years Ended (in thousands, except percentages) April 30, 2017 May 1, 2016 May 3, 2015 Contractual interest expense $ 1,001 n/a n/a Amortization of the debt discount 6,859 n/a n/a Amortization of issuance costs 334 n/a n/a Total interest cost $ 8,194 n/a n/a Effective interest rate on the liability component 4.85 % n/a n/a The Company applies the treasury stock method to determine the potential dilutive effect of the 2036 Notes on net income per share as a result of the Company's intent and stated policy to settle the principal amount of the 2036 Notes in cash. 0.50% Convertible Senior Notes Due 2033 In December 2013, the Company issued and sold $258.8 million in aggregate principal amount of 0.50% Convertible Senior Notes due 2033 (the "2033 Notes") at par. The terms of the 2033 Notes are governed by an indenture by and between the Company and Wells Fargo Bank, National Association, as Trustee. The 2033 Notes will mature on December 15, 2033, unless earlier repurchased, redeemed or converted. The 2033 Notes are senior unsecured and unsubordinated obligations of the Company, and are effectively subordinated to the Company's secured indebtedness and the indebtedness and other liabilities of the Company's subsidiaries. The 2033 Notes bear interest at a rate of 0.5% per year, payable semi-annually in arrears on June 15 and December 15 each year. Holders of the 2033 Notes may convert their 2033 Notes at their option prior to the close of business on the business day immediately preceding June 15, 2033 only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on January 26, 2014 (and only during such fiscal quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period ("measurement period"), in which the trading price per $1,000 principal amount of the 2033 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the applicable conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after June 15, 2033 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2033 Notes at any time, regardless of whether any of the foregoing circumstances have occurred. The conversion rate will initially equal 33.1301 shares of common stock per $1,000 principal amount of the 2033 Notes (which is equivalent to an initial conversion price of approximately $30.18 per share of common stock), subject to adjustment. Upon conversion of a note, the Company will pay or deliver, as the case may be, either cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company's election, as provided in the indenture. If holders elect to convert their 2033 Notes in connection with a "fundamental change" (as defined in the indenture) that occurs on or before December 22, 2018, the Company will, to the extent provided in the indenture, increase the conversion rate applicable to such 2033 Notes ("make-whole feature"). In the event of a fundamental change, holders will have the option to require the Company to redeem for cash any 2033 Notes held by them at a purchase price equal to 100% of the principal amount of the 2033 Notes plus accrued and unpaid interest to, but excluding, the redemption date. Holders also have the option to require the Company to redeem for cash any 2033 Notes held by them on December 15, 2018, December 15, 2023 and December 15, 2028 at a redemption price equal to 100% of the principal amount of the 2033 Notes plus accrued and unpaid interest to, but excluding, the redemption date. The Company may redeem the 2033 Notes in whole or in part at any time on or after December 22, 2018 at 100% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date. The Company considered the features embedded in the 2033 Notes, that is, the conversion feature, the holders' put feature, the Company's call feature, and the make-whole feature, and concluded that they are not required to be bifurcated and accounted for separately from the host debt instrument. Because of its option to settle conversion of the 2033 Notes in cash, the Company separated the liability and equity components of the 2033 Notes. The carrying amount of the liability component at issuance date of $209.1 million was calculated by estimating the fair value of similar liabilities without a conversion feature. The residual principal amount of the 2033 Notes of $49.6 million was allocated to the equity component. The resulting debt discount is amortized as interest expense. As of April 30, 2017 , the remaining debt discount amortization period was 19 months . The 2033 Notes consisted of the following: As of (in thousands) April 30, 2017 May 1, 2016 Liability component: Principal $ 258,750 $ 258,750 Unamortized debt discount (17,663 ) (27,739 ) Unamortized debt issuance costs (1,002 ) (1,618 ) Net carrying amount of the liability component $ 240,085 $ 229,393 Carrying amount of the equity component $ 49,648 $ 49,648 The Company incurred approximately $3.8 million in transaction costs in connection with the issuance of the 2033 Notes. These costs were allocated to the liability and equity components in proportion to the allocation of proceeds. Transaction costs of $3.1 million , allocated to the liability component, were recognized as a non-current asset and are being amortized. Transaction costs of $725,000 , allocated to the equity component, were recognized as a reduction of additional paid-in capital. The following table sets forth interest expense information related to the 2033 Notes: Fiscal Years Ended (in thousands, except percentages) April 30, 2017 May 1, 2016 May 3, 2015 Contractual interest expense $ 1,294 $ 1,294 $ 1,294 Amortization of the debt discount 10,076 9,604 9,153 Amortization of issuance costs 616 616 616 Total interest cost $ 11,986 $ 11,514 $ 11,063 Effective interest rate on the liability component 4.87 % 4.87 % 4.87 % The Company applies the treasury stock method to determine the potential dilutive effect of the 2033 Notes on net income per share as a result of the Company's intent and stated policy to settle the principal amount of the 2033 Notes in cash. 5.0% Convertible Senior Notes Due 2029 In October 2009, the Company issued and sold $100 million in aggregate principal amount of 5.0% Convertible Senior Notes due 2029 (the "2029 Notes"). The terms of the 2029 Notes were governed by an indenture by and between the Company and Wells Fargo Bank, National Association, as Trustee. The 2029 Notes were scheduled to mature on October 15, 2029, unless earlier repurchased, redeemed or converted. Interest on the 2029 Notes is payable semi-annually in arrears at a rate of 5.0% per annum on each April 15 and October 15, beginning on April 15, 2010. The 2029 Notes were senior unsecured and unsubordinated obligations of the Company, and ranked equally in right of payment with the Company’s other unsecured and unsubordinated indebtedness, but were effectively subordinated to the Company’s secured indebtedness and liabilities to the extent of the value of the collateral securing those obligations, and structurally subordinated to the indebtedness and other liabilities of the Company’s subsidiaries. Holders had the right to convert the 2029 Notes into shares of the Company’s common stock, at their option, at any time prior to the close of business on the trading day before the stated maturity date. The initial conversion rate was 93.6768 shares of Common Stock per $1,000 principal amount of the 2029 Notes (equivalent to an initial conversion price of approximately $10.68 per share of common stock), subject to adjustment upon the occurrence of certain events. Upon conversion of the 2029 Notes, holders were to receive shares of common stock unless the Company obtained consent from a majority of the holders to deliver cash or a combination of cash and shares of common stock in satisfaction of its conversion obligation. Holders had the right to require the Company to redeem, for cash, all or part of their 2029 Notes upon a “fundamental change” at a redemption price equal to 100% of the principal amount of the 2029 Notes being redeemed plus accrued and unpaid interest up to, but excluding, the redemption date. Holders also had the right to require the Company to redeem, for cash, any of their 2029 Notes on October 15, 2014, October 15, 2016, October 15, 2019 and October 15, 2024 at a redemption price equal to 100% of the principal amount of the 2029 Notes being redeemed plus accrued and unpaid interest up to, but excluding, the redemption date. The Company had the right to redeem the 2029 Notes in whole or in part at a redemption price equal to 100% of the principal amount of the 2029 Notes being redeemed, plus accrued and unpaid interest to, but excluding, the redemption date, at any time on or after October 22, 2014 if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for at least 20 trading days within a period of 30 consecutive trading days ending within five trading days of the date on which the Company provides the notice of redemption. The Company considered the embedded derivative in the 2029 Notes, that is, the conversion feature, and concluded that it was indexed to the Company’s common stock and would be classified as equity, were it to be accounted for separately and thus was not required to be bifurcated and accounted for separately from the debt. The Company also considered the Company’s call feature and the holders’ put feature in the event of a change in control under the provisions of FASB authoritative guidance, and concluded that they need not be accounted for separately from the debt. In fiscal 2011, the Company entered into privately-negotiated agreements with existing holders of the 2029 Notes to exchange an aggregate of approximately $60.0 million principal amount of the 2029 Notes. Following these exchanges, $40.0 million principal amount of the 2029 Notes remained outstanding. As explained above, the terms of the 2029 Notes included a provision that allowed the holders to require the Company to redeem any of their notes on October 15, 2014. Accordingly, all $40.0 million of the principal amount of the 2029 Notes outstanding as of April 27, 2014 was classified as a current liability as of that date. During October 2014, all holders of the 2029 Notes exercised their rights to exchange their 2029 Notes for 3,748,473 shares of the Company's common stock. All conversions were in accordance with the original terms of the 2029 Notes and no gain or loss was recognized as a result of conversion. |
Commitments
Commitments | 12 Months Ended |
Apr. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments The Company’s future commitments at April 30, 2017 included minimum payments under non-cancelable operating lease agreements, including operating lease obligations that have been accrued as restructuring charges, as follows (in thousands): Payments Due by Period Total Less Than 1 Year 1-3 Years 4-5 Years After 5 Years Operating leases $ 42,167 $ 10,324 $ 17,172 $ 6,747 $ 7,924 Rent expense under the non-cancelable operating leases was approximately $9.0 million , $9.4 million and $10.7 million for the years ended April 30, 2017 , May 1, 2016 and May 3, 2015 , respectively. The Company subleases a portion of its facilities that it considers to be in excess of its requirements. Sublease income was $373,000 , $168,000 and $218,000 for the years ended April 30, 2017 , May 1, 2016 and May 3, 2015 , respectively. Certain leases have scheduled rent increases which have been included in the above table. Other leases contain provisions to adjust rental rates for inflation during their terms, most of which are based on to-be-published indices. Rents subject to these adjustments are included in the above table based on current rates. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company's financial instruments not measured at fair value on a recurring basis as of April 30, 2017 and May 1, 2016 were as follows: April 30, 2017 May 1, 2016 Carrying Fair Value Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Total Amount Level 1 Level 2 Level 3 Total Commercial paper $ 571,592 $ — $ 571,592 $ — $ 571,592 $ — $ — $ — $ — $ — Certificates of deposit $ 405,003 $ — $ 405,003 $ — $ 405,003 $ 263,255 $ — $ 263,255 $ — $ 263,255 2033 Notes $ 240,085 $ 273,628 $ — $ — $ 273,628 $ 229,393 $ 247,430 $ — $ — $ 247,430 2036 Notes $ 467,697 $ 534,391 $ — $ — $ 534,391 n/a n/a n/a n/a n/a The fair values of the Company's investments in commercial papers and certificates of deposit are based on quoted market prices for similar instruments or non-binding market prices that are corroborated by observable market data. The fair values of the 2033 Notes and the 2036 Notes are based on the price in the open market as of or close to the respective balance sheet dates. The difference between the carrying value and the fair value is primarily due to the spread between the conversion price and the market value of the shares underlying the conversion as of each respective balance sheet date. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Accumulated Other Comprehensive Income Cumulative foreign currency translation adjustment was the only component of the accumulated other comprehensive income as of April 30, 2017 and May 1, 2016 . Common Stock and Preferred Stock As of April 30, 2017 , Finisar is authorized to issue 750,000,000 shares of $0.001 par value common stock and 5,000,000 shares of $0.001 par value preferred stock. The holder of each share of common stock has the right to one vote and is entitled to receive dividends when and as declared by the Company’s Board of Directors. The Company has never declared or paid dividends on its common stock. The Company has authority to issue up to 5,000,000 shares of preferred stock, $0.001 par value. The preferred stock may be issued in one or more series having such rights, preferences and privileges as may be designated by the Company’s board of directors. Common stock subject to future issuance as of April 30, 2017 is as follows: Exercise of outstanding stock options 581,172 Vesting of restricted stock awards 6,618,360 Available for grant under employee stock incentive plan 8,844,712 Available for grant under employee stock purchase plan 2,870,077 Total 18,914,321 Employee Stock Purchase Plan In September 2009, the Company’s board of directors adopted the 2009 Employee Stock Purchase Plan (the "ESPP"), which was approved by the stockholders in November 2009. An amended and restated version of ESPP was approved by the Company's board of directors in June 2014 and by the stockholders in September 2014. Under the restated ESPP, 7,000,000 shares of the Company’s common stock have been reserved for issuance, and the term of the ESPP is scheduled to expire on September 1, 2024. The ESPP permits eligible employees to purchase Finisar common stock through payroll deductions, which may not exceed 20% of the employee’s total compensation. Stock may be purchased under the plan at a price equal to 85% of the fair market value of Finisar common stock on either the first or the last day of the offering period, whichever is lower. Employee Stock Plans In September 1999, Finisar’s 1999 Stock Option Plan was adopted by the board of directors and approved by the stockholders. An amendment and restatement of the 1999 Stock Option Plan, including renaming it the 2005 Stock Incentive Plan (the “2005 Plan”), was approved by the board of directors in September 2005 and by the stockholders in October 2005. An amended and restated version of the 2005 Plan was approved by the Company's board of directors in June 2014 and by the stockholders in September 2014. Under the restated 2005 Plan, a total of 22,500,000 shares of common stock have been reserved for issuance, and the term of the 2005 Plan is scheduled to expire on September 1, 2024. The types of stock-based awards available under the 2005 Plan includes stock options, stock appreciation rights, restricted stock units (“RSUs”) and other stock-based awards which vest upon the attainment of designated performance goals or the satisfaction of specified service requirements or, in the case of certain RSUs or other stock-based awards, become payable upon the expiration of a designated time period following such vesting events. Options generally vest over five years and have a maximum term of 10 years. RSUs generally vest over four years. As of April 30, 2017 and May 1, 2016 , no shares were subject to repurchase. Stock Options Number of Shares Weighted-Average Exercise Price Stock options outstanding as of May 1, 2016 1,609,211 $ 15.68 Stock options exercised (763,424 ) $ 14.98 Stock options canceled (264,615 ) $ 30.46 Stock options outstanding as of April 30, 2017 581,172 $ 9.85 The total intrinsic value of stock options exercised during fiscal 2017 , 2016 and 2015 was $9.9 million , $3.3 million and $3.4 million , respectively. All stock options outstanding as of April 30, 2017 are fully vested and exercisable. The aggregate intrinsic value of stock options outstanding as of April 30, 2017 was $7.8 million . The weighted-average remaining contractual life of stock options outstanding as of April 30, 2017 was 1.7 years . Restricted Stock Units Number of Shares Weighted-Average Grant-Date Fair Value RSUs unvested as of May 1, 2016 6,214,199 $ 18.19 RSUs granted 3,162,717 $ 19.77 RSUs vested (2,441,964 ) $ 17.19 RSUs forfeited (316,592 ) $ 18.79 RSUs unvested as of April 30, 2017 6,618,360 $ 19.28 The weighted-average grant-date fair value of RSUs granted during fiscal 2016 and 2015 was $19.02 and $19.55 , respectively. The aggregate intrinsic value of RSUs outstanding as of April 30, 2017 was $151.2 million . The total grant-date fair value of RSUs vested during fiscal 2017 , 2016 and 2015 was $42.0 million , $41.7 million and $36.3 million , respectively. As of April 30, 2017 , the Company had $89.2 million of unrecognized compensation expense related to RSUs grants. These expenses are expected to be recognized over a weighted-average period of 2.3 years . Share-Based Compensation Cost The following table sets forth the detailed allocation of the share-based compensation expense for the fiscal years ended April 30, 2017 , May 1, 2016 and May 3, 2015 which was reflected in the Company’s operating results: Fiscal Years Ended (in thousands) April 30, 2017 May 1, 2016 May 3, 2015 Share-based compensation expense by caption: Cost of revenues $ 11,409 $ 10,357 $ 9,908 Research and development 20,425 18,245 17,764 Sales and marketing 7,170 6,667 6,251 General and administrative 10,875 9,974 10,677 Total $ 49,879 $ 45,243 $ 44,600 Share-based compensation expense by type of award: RSUs $ 46,577 $ 42,162 $ 41,729 Employee stock purchase rights under ESPP 3,302 3,081 2,871 Total $ 49,879 $ 45,243 $ 44,600 Total share-based compensation cost capitalized as part of inventory was $2.5 million and $2.5 million as of April 30, 2017 and May 1, 2016 , respectively. The fair value of employee stock purchase rights granted under the ESPP in fiscal 2017 , 2016 and 2015 was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: Fiscal Years Ended April 30, 2017 May 1, 2016 May 3, 2015 Expected term (in years) 0.75 0.75 0.75 Volatility 40% - 43% 32% - 54% 34% - 53% Risk-free interest rate 0.36 - 0.89% 0.11 - 0.70% 0.07 - 0.21% Dividend yield — % — % — % The expected term of employee stock purchase rights is the average of the remaining purchase periods under each offering period. The Company calculated the volatility factor based on the Company’s historical stock prices. The Company bases the risk-free interest rate used in the Black-Scholes option-pricing model on constant maturity bonds from the Federal Reserve in which the maturity approximates the expected term. The Black-Scholes option-pricing model calls for a single expected dividend yield as an input. The Company has not issued and does not expect to issue any dividends. The weighted-average estimated per share fair value of purchase rights granted under the ESPP in fiscal 2017 , 2016 and 2015 was $5.34 , $2.79 and $3.06 , respectively. The Black-Scholes option-pricing model requires the input of highly subjective assumptions, including the expected life of the stock-based award and the stock price volatility. The assumptions listed above represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if other assumptions had been used, recorded share-based compensation expense could have been materially different from that depicted above. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Apr. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company maintains a defined contribution retirement plan under the provisions of Section 401(k) of the Internal Revenue Code which covers all eligible employees. Employees are eligible to participate in the plan on the first day of the calendar year quarter immediately following completion of eligibility requirements as required by the plan. Under the plan, each participant may contribute up to 20% of his or her pre-tax gross compensation up to a statutory limit, which is $18,000 for each calendar year 2017 , 2016 and 2015 . All amounts contributed by participants and earnings on participant contributions are fully vested at all times. The Company may contribute an amount equal to one-half of the first 6% of each participant’s contribution. The Company may make the matching contribution in shares of Finisar common stock in lieu of cash. Contributions made in shares will be allocated to each participant’s account using the share price on the date the Company matching contribution is made to the plan. The Company made a discretionary matching contribution of 85,040 shares for a total contribution of $2.7 million during the year ended April 30, 2017 . The Company’s expenses related to this plan were $2.8 million , $2.4 million and $2.6 million for the fiscal years ended April 30, 2017 , May 1, 2016 and May 3, 2015 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense (benefit) consist of the following (in thousands): Fiscal Years Ended April 30, 2017 May 1, 2016 May 3, 2015 Current: Federal $ — $ — $ — State 532 (9 ) 209 Foreign 14,850 4,575 8,814 15,382 4,566 9,023 Deferred: Federal (102,305 ) — (607 ) State (1,008 ) — (14 ) Foreign 1,779 (4,928 ) 393 (101,534 ) (4,928 ) (228 ) Provision for (benefit from) income taxes $ (86,152 ) $ (362 ) $ 8,795 Income (loss) before income taxes consists of the following (in thousands): Fiscal Years Ended April 30, 2017 May 1, 2016 May 3, 2015 U.S. $ 96,648 $ (2,579 ) $ (29,300 ) Foreign 66,546 37,410 49,982 $ 163,194 $ 34,831 $ 20,682 A reconciliation of the income tax provision at the federal statutory rate and the effective rate is as follows: Fiscal Years Ended April 30, 2017 May 1, 2016 May 3, 2015 Expected income tax provision (benefit) at U.S. federal statutory rate 35.0 % 35.0 % 35.0 % Foreign rate differential (5.0 ) (40.5 ) (46.9 ) Share-based compensation expense 0.7 14.1 29.6 Non-deductible transaction costs — 0.1 0.5 Valuation allowance (83.0 ) (2.5 ) 49.1 Other permanent adjustments 0.7 4.4 — Research and development credits (2.3 ) (12.6 ) (15.0 ) Other 1.0 1.0 (9.8 ) (52.9 )% (1.0 )% 42.5 % The components of deferred taxes consist of the following (in thousands): As of April 30, 2017 May 1, 2016 Deferred tax assets: Inventory adjustments $ 9,161 $ 10,740 Accruals and reserves 12,731 14,890 Tax credits 38,092 34,094 Net operating loss carryforwards 106,297 100,193 Gain/loss on investments under equity or cost method 814 8,522 Depreciation and amortization 8,462 3,498 Purchase accounting for intangible assets 2,707 7,137 Capital loss carryforward 7,183 189 Acquired intangibles 4,343 6,298 Stock compensation 9,345 9,162 Total deferred tax assets 199,135 194,723 Valuation allowance (30,804 ) (162,892 ) Net deferred tax assets 168,331 31,831 Deferred tax liabilities: Acquired intangibles (2,360 ) (3,613 ) Debt discount (43,796 ) (10,774 ) Depreciation and amortization (16,233 ) (13,037 ) Total deferred tax liabilities (62,389 ) (27,424 ) Total net deferred tax assets (liabilities) $ 105,942 $ 4,407 Reported as: Deferred tax assets $ 107,225 $ 4,845 Deferred tax liabilities (1,283 ) (438 ) Total net deferred tax assets (liabilities) $ 105,942 $ 4,407 Realization of deferred tax assets is dependent upon future taxable earnings in related tax jurisdictions. In the past, due to U.S. operating losses in previous years and continuing U.S. earnings volatility which did not allow sustainable profitability, management had established and maintained a full valuation allowance for the U.S. deferred tax assets. During the fourth quarter of fiscal 2017, the Company assessed that it is more likely than not that it will realize the majority of the U.S. deferred tax assets, except for deferred tax assets related to California research and development credits and capital losses. The positive evidence as of April 30, 2017 that outweighed the negative evidence to release the valuation allowance included the fiscal 2017 and three year cumulative profitability driven by strong demand of certain new generation products, availability of resources to expand manufacturing capacity, and forecasted U.S. operating profits in the future periods. Accordingly, during the fourth quarter of fiscal 2017, the Company released $103.3 million of valuation allowance on these deferred tax assets. The remaining valuation allowance relates to deferred tax assets, for which management believes it is not more likely than not to be realized in future periods. The Company's valuation allowance increased/(decreased) from the prior year by approximately $(132.1) million , $(1.5) million and $7.7 million in fiscal 2017 , 2016 and 2015 , respectively. As of April 30, 2017 , the Company had federal, state and foreign net operating loss carryforwards of approximately $276.8 million , $13.2 million and $34.3 million , respectively, and federal and state tax credit carryforwards of approximately $34.3 million and $26.8 million , respectively. With the exception of California R&D credit, which can be carried forward indefinitely, the net operating loss and tax credit carryforwards will expire at various dates beginning in fiscal 2020 through 2037 , if not utilized. Utilization of the Company's U.S. net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382 and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization. The Company's manufacturing operations in Malaysia operate under a tax holiday which will expire at the beginning of the second quarter of fiscal 2022 . In fiscal 2017 , the aggregate dollar and per share effect of the tax holiday was $6.1 million and $0.05 per share, respectively. As of April 30, 2017 , there was no provision for U.S. income taxes for undistributed earnings of the Company's foreign subsidiaries as it is currently the Company's intention to reinvest these earnings indefinitely in operations outside the United States. The cumulative amount of foreign earnings to be permanently re-invested as of April 30, 2017 was approximately $349.8 million . The Company believes it is not practicable to determine the Company's tax liability that may arise in the event of a future repatriation. If repatriated, these earnings could result in a tax expense at the current U.S. federal statutory tax rate of 35% , subject to available net operating losses and other factors. Tax on undistributed earnings may also be reduced by foreign tax credits that may be generated in connection with the repatriation of earnings. A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows (in thousands): Fiscal Years Ended April 30, 2017 May 1, 2016 May 3, 2015 Beginning balance $ 16,411 $ 14,653 $ 13,432 Additions for tax positions related to current year 1,675 1,331 975 Additions for tax positions related to prior years 3,372 902 246 Reductions for tax positions related to prior years (lapse of statute of limitations) — (475 ) — Ending balance $ 21,458 $ 16,411 $ 14,653 Excluding the effects of recorded valuation allowances for deferred tax assets, $16.7 million of the unrecognized tax benefits would favorably impact the effective tax rate in future periods if recognized. It is the Company's belief that no significant changes in the unrecognized tax benefit positions will occur within 12 months from April 30, 2017 . The Company records interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As of April 30, 2017 and May 1, 2016 , the Company had accrued $822,000 and zero , respectively, for interest and penalties related to uncertain tax positions. The Company and its subsidiaries are subject to taxation in various state jurisdictions as well as the U.S. The Company's U.S. federal and state income tax returns are generally not subject to examination by the tax authorities for tax years before fiscal 2009 . For all federal and state net operating loss and credit carryovers, the statute of limitations does not begin until the carryover items are utilized. The taxing authorities can examine the validity of the carryover items and if necessary, adjustments may be made to the carryover items. The Company's Malaysia , Singapore , China , Australia , Israel , and Sweden income tax returns are generally not subject to examination by the tax authorities for tax years before 2011 , 2012 , 2011 , 2011 , 2005 and 2010 , respectively. The Company's Australia subsidiary is under audit for tax year 2011 and after. The Company's Israel subsidiary received a tax assessment from Israel Tax Authority (ITA) for tax years 2005 to 2007. The Company has filed an appeal and anticipates no material tax liability. |
Segments and Geography Informat
Segments and Geography Information | 12 Months Ended |
Apr. 30, 2017 | |
Segment Reporting [Abstract] | |
Segments and Geography Information | Segments and Geography Information The Company has one reportable segment consisting of optical subsystems and components. Optical subsystems consist primarily of transmitters, receivers, transceivers, transponders and active optical cables that provide the fundamental optical-electrical, or optoelectronic, interface for interconnecting the electronic equipment used in building communication networks, including the switches, routers and servers used in wireline networks as well as the antennas and base stations for wireless networks. Optical components consists primarily of packaged lasers, receivers and photodetectors for data communication and telecommunication applications and passive optical components used in telecommunication applications. The following is a summary of revenues from sales to unaffiliated customers within geographic areas based on the location of the entity purchasing the Company’s products: Fiscal Years Ended (in thousands) April 30, 2017 May 1, 2016 May 3, 2015 United States $ 476,763 $ 408,700 $ 425,066 China 358,561 307,327 242,916 Malaysia 122,699 123,057 148,258 Rest of the world 491,280 424,082 434,704 Totals $ 1,449,303 $ 1,263,166 $ 1,250,944 Revenues generated in the United States are all from sales to customers located in the United States. The following is a summary of long-lived assets within geographic areas based on the location of the assets: As of (in thousands) April 30, 2017 May 1, 2016 United States $ 133,426 $ 118,000 Malaysia 49,779 53,762 China 205,423 182,119 Rest of the world 36,105 33,444 $ 424,733 $ 387,325 The increase in long-lived assets was primarily due to the additions of property and improvements to the Company's manufacturing facilities in China. |
Legal Matters
Legal Matters | 12 Months Ended |
Apr. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal Matters The Company accrues a liability for legal contingencies when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss. The Company reviews these accruals and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel and other relevant information. To the extent new information is obtained and the Company's views on the probable outcomes of claims, suits, assessments, investigations or legal proceedings change, changes in the Company's accrued liabilities would be recorded in the period in which such determination is made. For the matters referenced below, the amount of liability is not probable or the amount cannot be reasonably estimated and, therefore, accruals have not been made. In addition, in accordance with the relevant authoritative guidance, for matters which the likelihood of material loss is at least reasonably possible, the Company provides disclosure of the possible loss or range of loss; however, if a reasonable estimate cannot be made, the Company will provide disclosure to that effect. Due to the nature of the Company's business, it is subject to claims alleging infringement by various Company products and services. The Company believes that it has meritorious defenses to the allegations made in its pending cases and intends to vigorously defend these lawsuits; however, it is unable currently to determine the ultimate outcome of these or similar matters. In addition, the Company is a defendant in various litigation matters generally arising out of the normal course of business. Although it is difficult to predict the ultimate outcomes of these cases, the Company believes that it is not reasonably possible that the ultimate outcomes will materially and adversely affect its business, financial position, results of operations or cash flows. Class Action and Shareholder Derivative Litigation Several securities class action lawsuits related to the Company's March 8, 2011 earnings announcement alleging claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 have been filed in the United States District Court for the Northern District of California on behalf of a purported class of persons who purchased stock between December 2, 2010 through March 8, 2011. The named defendants are the Company and Jerry Rawls, its Chief Executive Officer and Chairman of the Board, and Eitan Gertel, its former Chief Executive Officer. To date, no specific amount of damages has been alleged. The cases were consolidated, lead plaintiff was appointed and a consolidated complaint was filed. The Company filed a motion to dismiss the case. On January 16, 2013, the District Court granted the Company's motion to dismiss and granted the lead plaintiffs leave to amend the consolidated complaint. An amended consolidated complaint was filed on February 6, 2013. Thereafter, the Company filed a renewed motion to dismiss the case. On September 30, 2013, the District Court granted the Company's motion and dismissed the case with prejudice, and plaintiff appealed. On January 8, 2016, the Ninth Circuit Court of Appeals reversed the judgment in part for further proceedings in the District Court. On July 15, 2016, lead plaintiff filed a Second Amended Complaint in the District Court. On August 19, 2016, the Company moved to dismiss. On May 1, 2017, the District Court denied the motion and a case scheduling order has been issued. In addition, two purported shareholder derivative lawsuits related to the Company's March 8, 2011 earnings announcement have been filed in the California Superior Court for the County of Santa Clara, and a third derivative lawsuit has been filed in the United States District Court for the Northern District of California. The complaints assert claims for alleged breach of fiduciary duty, unjust enrichment, and waste on behalf of the Company. Named as defendants are the members of the Company's board of directors and certain officers, including Jerry Rawls, the Company's Chief Executive Officer and Chairman of the Board, Eitan Gertel, the Company’s former Chief Executive Officer, and Kurt Adzema, the Company’s Chief Financial Officer. No specific amount of damages has been alleged and, by the derivative nature of the lawsuits, no damages will be alleged, against the Company. The state court cases have been consolidated and a lead plaintiff has been appointed to file a consolidated complaint. The derivative cases were stayed pending a ruling in the federal class action case. The plaintiff in the federal case will file an amended complaint by August 7, 2017. Mears Technologies Litigation On May 6, 2013, Mears Technologies, Inc. filed a complaint for patent infringement in the United States District Court for the Eastern District of Texas against the Company. The complaint alleged that Finisar's WSS products, ROADM line cards containing a Finisar WSS, and Waveshaper products infringe U.S. Patent No. 6,141,361. On June 17, 2014, the district court issued a claim construction order favorable to the Company. On October 6, 2014, the court denied a motion of the plaintiff to amend its infringement contentions in light of the court’s claim construction ruling. As a result, the plaintiff conceded that it was unable to pursue its infringement claims against the Company. On December 30, 2014, the court granted the Company’s motion for summary judgment of non-infringement. The plaintiff appealed the court’s claim construction ruling and the court’s denial of the plaintiff’s motion to amend its infringement contentions in light of the court’s claim construction ruling. The Company opposed this appeal. On January 11, 2017, the verdict of non-infringement was affirmed by the U.S. Court of Appeals for the Federal Circuit and the case has terminated. Other In the ordinary course of business, the Company is a party to litigation, claims and assessments in addition to those described above. Based on information currently available, management does not believe the impact of these other matters will have a material adverse effect on its business, financial condition, results of operations or cash flows of the Company. |
Guarantees and Indemnifications
Guarantees and Indemnifications | 12 Months Ended |
Apr. 30, 2017 | |
Guarantees [Abstract] | |
Guarantees and Indemnifications | Guarantees and Indemnifications Upon issuance of a guarantee, the guarantor must recognize a liability for the fair value of the obligations it assumes under that guarantee. As permitted under Delaware law and in accordance with the Company’s Bylaws, the Company indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The Company may terminate the indemnification agreements with its officers and directors upon 90 days written notice, but termination will not affect claims for indemnification relating to events occurring prior to the effective date of termination. The maximum amount of potential future indemnification is unlimited; however, the Company has a director and officer liability insurance policy that may enable it to recover a portion of any future amounts paid. The Company enters into indemnification obligations under its agreements with other companies in its ordinary course of business, including agreements with customers, business partners, and insurers. Under these provisions the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities or the use of the Company’s products. These indemnification provisions generally survive termination of the underlying agreement. In some cases, the maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited. The Company believes the fair value of these indemnification agreements is minimal. Accordingly, the Company has not recorded any liabilities for these agreements as of April 30, 2017 . To date, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. |
Financial Information by Quarte
Financial Information by Quarter (Unaudited) | 12 Months Ended |
Apr. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Financial Information by Quarter (Unaudited) | Financial Information by Quarter (Unaudited) Three Months Ended April 30, 2017 (1) January 29, 2017 October 30, 2016 July 31, 2016 May 1, 2016 January 31, 2016 November 1, 2015 August 2, 2015 (2) (In thousands, except per share data) Revenues $ 357,527 $ 380,588 $ 369,863 $ 341,325 $ 318,794 $ 309,206 $ 321,136 $ 314,030 Gross profit $ 125,164 $ 136,637 $ 133,681 $ 108,165 $ 90,442 $ 87,740 $ 89,091 $ 87,377 Income from operations $ 40,841 $ 54,906 $ 52,828 $ 28,311 $ 14,136 $ 10,458 $ 9,368 $ 7,061 Net income $ 130,245 $ 46,386 $ 48,766 $ 23,949 $ 13,072 $ 12,084 $ 6,644 $ 3,393 Net income per share: Basic $ 1.17 $ 0.42 $ 0.44 $ 0.22 $ 0.12 $ 0.11 $ 0.06 $ 0.03 Diluted $ 1.13 $ 0.40 $ 0.43 $ 0.22 $ 0.12 $ 0.11 $ 0.06 $ 0.03 Shares used in computing net income per share: Basic 111,438 110,956 110,407 108,820 107,612 107,180 106,635 105,286 Diluted 115,248 114,873 113,192 110,821 109,386 108,128 107,493 108,107 (1) Net income in the fourth quarter of fiscal 2017 includes a $103.3 million release of valuation allowance on U.S. deferred tax assets. (2) Net income in the first quarter of fiscal 2016 includes a $1.9 million impairment charge for long-lived assets. |
Schedule II - Consolidated Valu
Schedule II - Consolidated Valuation and Qualifying Accounts | 12 Months Ended |
Apr. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Consolidated Valuation and Qualifying Accounts | Schedule II — Consolidated Valuation and Qualifying Accounts Balance at Beginning of Period Additions Charged to (Recoveries Offset) Costs and Expenses, Net Write-Offs Balance at End of Period (in thousands) Allowance for doubtful accounts Balance at April 30, 2017 $ 727 $ 33 $ (4 ) $ 756 Balance at May 1, 2016 $ 1,136 $ (403 ) $ (6 ) $ 727 Balance at May 3, 2015 $ 929 $ 207 $ — $ 1,136 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Fiscal Periods | The Company has a 52- or 53-week fiscal year ending on the Sunday closest to the last day of April in each year. Fiscal 2017, 2016 and 2015 had 52, 52, and 53 weeks, respectively, and fiscal 2018 will have 52 weeks. Fourth quarter of fiscal 2015 was a 14-week quarter. |
Reclassifications | Certain reclassifications have been made to the prior year balance sheet and statement of cash flows related to presentation of deferred tax assets resulting from the release of deferred tax valuation allowance in fiscal 2017. These changes had no effect on previously reported results of operations and stockholders' equity. |
Use of Estimates | The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. |
Consolidation | The consolidated financial statements include the accounts of Finisar Corporation and its controlled subsidiaries (collectively “Finisar” or the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. |
Revenue Recognition | The Company’s revenue transactions consist predominately of sales of products to customers. Product revenues are generally recognized in the period in which persuasive evidence of an arrangement exists, title and risk of loss have passed to the customer, generally upon shipment, the price is fixed or determinable, and collectability is reasonably assured. At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses associated with sales, recorded as a component of cost of revenues. The Company’s customers generally do not have return rights. However, the Company has established an allowance for estimated customer returns, based on historical experience, which is netted against revenue. Sales to certain distributors are made under agreements providing distributor price adjustments and rights of return under certain circumstances. Revenue and costs relating to sales to distributors with price protection and rights of return are deferred until products are sold by the distributors to end customers. Revenue recognition depends on notification from the distributor that product has been sold to the end customer. Also reported by the distributor are product resale price, quantity and end customer shipment information, as well as inventory on hand. Deferred revenue on shipments to distributors reflects the effects of distributor price adjustments and the amount of gross margin expected to be realized when distributors sell-through products purchased from us. Accounts receivable from distributors are recognized and inventory is relieved when title to inventories transfers, typically upon shipment from us at which point we have a legally enforceable right to collection under normal payment terms. |
Segment Reporting | The Financial Accounting Standards Board's (FASB) authoritative guidance regarding segment reporting establishes standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. It also establishes standards for related disclosures about products and services, geographic areas and major customers. The Company has determined that it operates in one reportable segment comprising optical subsystems and components. Optical subsystems consist primarily of transceivers sold to manufacturers of storage and networking equipment for data communication and telecommunication applications. Optical subsystems also include multiplexers, de-multiplexers and optical add/drop modules for use in telecommunication applications. Optical components consist primarily of packaged lasers and photo-detectors which are incorporated in transceivers for data communication and telecommunication applications. |
Concentrations of Risk | Financial instruments which potentially subject the Company to concentrations of credit risk include cash and cash equivalents, short-term investment and accounts receivable. The Company invests only in high-quality credit instruments and maintains its cash, cash equivalents and short-term investments with several high-quality credit financial institutions. Deposits held with banks, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. Concentrations of credit risk, with respect to accounts receivable, exist to the extent of amounts presented in the financial statements. Generally, the Company does not require collateral or other security to support customer receivables. The Company performs periodic credit evaluations of its customers and maintains an allowance for potential credit losses based on historical experience and other information available to management. Losses to date have not been material. The Company’s ten largest customers represented 56% and 55% of total accounts receivable at April 30, 2017 and May 1, 2016 , respectively. Two customers, Jabil and Flextronics, represented 12% and 11% , respectively, of total accounts receivable as of April 30, 2017 . One customer, Huawei, represented 18% of total accounts receivable as of May 1, 2016 . Sales to the Company’s ten largest customers represented 56% , 56% and 55% of total revenues during fiscal 2017 , 2016 and 2015 , respectively. Two customers, Cisco Systems and Huawei, represented 12% and 11% , respectively, of total revenues during fiscal 2017. Two customers, Huawei and Cisco Systems, represented 12% and 11% , respectively, of total revenues during fiscal 2016. One customer, Cisco Systems, represented 14% of total revenues during fiscal 2015. The Company relies on single and limited suppliers for a number of key components. The Company relies primarily on a limited number of significant independent contract manufacturers for the production of certain key components and subassemblies, including lasers, modulators, and printed circuit boards. |
Foreign Currency Translation | The functional currency of the Company's foreign subsidiaries is the local currency. Assets and liabilities denominated in foreign currencies are translated using the exchange rate on the balance sheet date. Revenues and expenses are translated using average exchange rates prevailing during the year. Any translation adjustments resulting from this process are shown separately as a component of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses are included in the determination of net income (loss). |
Research and Development | Research and development expenditures are charged to operations as incurred. |
Shipping and Handling Costs | The Company records costs related to shipping and handling in cost of sales for all periods presented. |
Cash and Cash Equivalents | Finisar’s cash equivalents consist of money market funds. Finisar considers all highly liquid investments with an original maturity from the date of purchase of three months or less to be cash equivalents. |
Minority Investments | The Company uses the cost method of accounting for investments in companies that do not have a readily determinable fair value in which it holds an interest of less than 20% and over which it does not have the ability to exercise significant influence. For entities in which the Company holds an interest of greater than 20% or in which the Company does have the ability to exercise significant influence, the Company uses the equity method. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company's proportionate share of earnings or losses and distributions. Such proportionate share of earnings or losses is included in other income (expense), net in the consolidated statement of operations. In determining if and when a decline in the market value of these investments below their carrying value is other-than-temporary, the Company evaluates the market conditions, offering prices, trends of earnings and cash flows, price multiples, prospects for liquidity and other key measures of performance. The Company’s policy is to recognize an impairment in the value of its minority equity investments when clear evidence of an impairment exists. Factors considered in this assessment include (a) the completion of a new equity financing that may indicate a new value for the investment, (b) the failure to complete a new equity financing arrangement after seeking to raise additional funds or (c) the commencement of proceedings under which the assets of the business may be placed in receivership or liquidated to satisfy the claims of debt and equity stakeholders. The Company’s minority investments in private companies are generally made in exchange for preferred stock with a liquidation preference that is intended to help protect the underlying value of its investment. |
Fair Value Accounting | The FASB authoritative guidance regarding fair valuation defines fair value and establishes a framework for measuring fair value and expands the related disclosure requirements. The guidance requires or permits fair value measurements with certain exclusions. It provides that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. Valuation techniques used to measure fair value under this guidance must maximize the use of observable inputs and minimize the use of unobservable inputs. It describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company's own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities have carrying amounts which approximate fair value due to the short-term maturity of these instruments. See Note 12 for additional details regarding the fair value of the Company’s financial instruments. |
Allowance for Doubtful Accounts | The Company evaluates the collectability of its accounts receivable based on a combination of factors. In circumstances where, subsequent to delivery, the Company becomes aware of a customer’s potential inability to meet its obligations, it records a specific allowance for the doubtful account to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes an estimated allowance for doubtful accounts based on the length of time the receivables are past due and historical actual bad debt history. A material adverse change in a major customer’s ability to meet its financial obligations to the Company could result in a material reduction in the estimated amount of accounts receivable that can ultimately be collected and an increase in the Company’s general and administrative expenses for the shortfall. Accounts receivable are charged against the allowance for doubtful accounts when identified as fully uncollectable. |
Inventories | Inventories are stated at the lower of cost (determined on a first-in, first-out basis) or market. The Company permanently writes down to its estimated net realizable value the cost of inventory that the Company specifically identifies and considers obsolete or excessive to fulfill future sales estimates. The Company defines obsolete inventory as inventory that will no longer be used in the manufacturing process. Excess inventory is generally defined as inventory in excess of projected usage and is determined using management’s best estimate of future demand, based upon information then available to the Company. The Company also considers: (1) parts and subassemblies that can be used in alternative finished products, (2) parts and subassemblies that are unlikely to be engineered out of the Company’s products, and (3) known design changes which would reduce the Company’s ability to use the inventory as planned. Inventory on hand that is in excess of future demand is written down to its estimated net realizable value. Obligations to purchase inventory acquired by subcontractors based on forecasts provided by the Company are recognized at the time such obligations arise. |
Property, Equipment and Improvements | Property, equipment and improvements are stated at cost, net of accumulated depreciation and amortization. Property, equipment and improvements are depreciated on a straight-line basis over the estimated useful lives of the assets, generally three years to seven years, except for buildings which are depreciated over 25 to 30 years . Land is carried at acquisition cost and not depreciated. Leased land is depreciated over the life of the lease. |
Goodwill and Other Intangible Assets | Goodwill, purchased technology and other intangible assets resulting from acquisitions are accounted for under the acquisition method. Intangible assets with finite lives are amortized over their estimated useful lives. Amortization of purchased technology and other intangibles has been recorded on a straight-line basis over periods ranging from three to 15 years. Goodwill is assessed for impairment annually or more frequently when an event occurs or circumstances change between annual impairment tests that would more likely than not reduce the fair value of the reporting unit holding the goodwill below its carrying value. |
Accounting for the Impairment of Long-Lived Assets | The Company periodically evaluates whether changes have occurred to long-lived assets that would require revision of the remaining estimated useful life of the property, improvements and finite-lived intangible assets or render them not recoverable. If such circumstances arise, the Company uses an estimate of the undiscounted value of expected future operating cash flows to determine whether the long-lived assets are impaired. If the aggregate undiscounted cash flows are less than the carrying amount of the assets, the resulting impairment charge to be recorded is calculated based on the excess of the carrying value of the assets over the fair value of such assets, with the fair value determined based on an estimate of discounted future cash flows. |
Restructuring Costs | The Company recognizes liability for exit and disposal activities when the liability is incurred. Facilities consolidation charges are calculated using estimates and are based upon the remaining future lease commitments for vacated facilities from the date of facility consolidation, net of estimated future sublease income. The estimated costs of vacating these leased facilities are based on market information and trend analysis, including information obtained from third party real estate sources. |
Stock-Based Compensation Expense | The Company measures and recognizes compensation expense for all stock-based payment awards made to employees and directors including restricted stock units and employee stock purchases under the Company’s Employee Stock Purchase Plan based on estimated fair values. The Company uses the grant-date fair value of its common stock to determine the fair value of restricted stock units. The Company uses the Black-Scholes option pricing model to determine the fair value of employee stock purchase rights. The fair value of the awards is recognized as expense in the consolidated statements of operations under the single-option approach on a straight-line basis over the requisite service periods. |
Income Taxes | The Company uses the liability method to account for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. Deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities and their reported amounts, along with net operating loss carryforwards and credit carryforwards. This method also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that a portion of the deferred tax asset will not be realized. The Company provides for income taxes based upon the geographic composition of worldwide earnings and tax regulations governing each region. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Also, the Company’s current effective tax rate assumes that United States income taxes are not provided for the undistributed earnings of non-United States subsidiaries. The Company intends to indefinitely reinvest the earnings of all foreign corporate subsidiaries for past and subsequent accumulated earnings. |
Recent and Pending Adoption of New Accounting Standards | In April 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update simplifying the presentation of debt issuance costs as a direct deduction from the carrying value of the debt liability rather than showing the debt issuance costs as an asset. The Company adopted this update in the first quarter of fiscal 2017 on a retrospective basis. Accordingly, $1.6 million of unamortized debt issuance costs were reclassified from Other Assets to Convertible Debt in the consolidated balance sheet as of May 1, 2016. In March 2016, the FASB issued an accounting standards update simplifying several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted all provisions of this update in the first quarter of fiscal 2017. Adoption of this update did not have a significant effect on the Company's consolidated financial position, results of operations and cash flows. As part of this adoption, the Company made an accounting policy election to account for forfeitures as they occur, rather than continue to estimate the number of stock-based awards that are expected to vest. In May 2014, the FASB, jointly with the International Accounting Standards Board, issued a comprehensive new standard on revenue recognition from contracts with customers. The standard's core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this new guidance to contracts within its scope, an entity will: (1) identify the contract(s) with a customer, (2) identify the performance obligation in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, this new guidance would require significantly expanded disclosures about revenue recognition. Provisions of this new standard are effective for annual reporting periods (including interim reporting periods within those annual periods) beginning after December 15, 2016. In April 2015, the FASB proposed a deferral of this standard's effective date by one year. The proposed deferral allows early adoption at the original effective date. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. The Company plans to adopt this standard using a modified retrospective approach. The Company's assessment has identified a change in revenue recognition timing on sales made to distributors. The Company expects to recognize revenue upon delivery of products to the distributor (in accordance with established shipping and delivery terms) rather than deferring recognition until the distributor sells the product to the end customer. On the date of the initial application, the Company will remove the deferred revenue on sales to distributors through a cumulative adjustment to retained earnings. The Company is continuing its evaluation of any additional potential effects on its consolidated financial position, results of operations and cash flows, as well as changes to its accounting policies and disclosures, from adoption of this standard. In February 2016, the FASB issued an accounting standards update which replaces the current lease accounting standard. The update will require, among other items, lessees to recognize a right-of-use asset and a lease liability for most leases. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. The update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. The Company is currently evaluating the timing of adoption and potential effect on its consolidated financial position, results of operations and cash flows from adoption of this update. From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. |
Earnings Per Share | Basic net income per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from stock options and restricted stock units (under the treasury stock method), 5.0% Convertible Senior Notes due 2029 (on an as-if-converted basis), 0.50% Convertible Senior Notes due 2033 (under the treasury stock method), and 0.50% Convertible Senior Notes due 2036 (under the treasury stock method) outstanding during the period. |
Warranty | The Company generally offers a one-year limited warranty for its products. The specific terms and conditions of these warranties vary depending upon the product sold. The Company estimates the costs that may be incurred under its basic limited warranty and records a liability for the amount of such costs at the time revenue is recognized. Factors that affect the Company’s warranty liability include the historical and anticipated rates of warranty claims and cost to repair. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the calculation of basic and diluted net income per share: Fiscal Years Ended (in thousands, except per share amounts) April 30, 2017 May 1, 2016 May 3, 2015 Numerator: Net income $ 249,346 $ 35,193 $ 11,887 Numerator for basic income per share $ 249,346 $ 35,193 $ 11,887 Effect of dilutive securities: Interest expense on 5.0% Convertible Senior Notes due 2029 n/a n/a — Numerator for diluted income per share $ 249,346 $ 35,193 $ 11,887 Denominator: Denominator for basic income per share - weighted average shares 110,405 106,678 101,408 Effect of dilutive securities: Stock options and restricted stock units 3,692 2,192 3,562 5.0% Convertible Senior Notes due 2029 n/a n/a — Dilutive potential common shares 3,692 2,192 3,562 Denominator for diluted income per share 114,097 108,870 104,970 Net income per share: Basic $ 2.26 $ 0.33 $ 0.12 Diluted $ 2.19 $ 0.32 $ 0.11 |
Schedule of Antidilutive Securities Excluded from Computation of Net Income (Loss) Per Share | The following table presents common shares related to potentially dilutive securities excluded from the calculation of diluted net income per share as their effect would have been anti-dilutive: Fiscal Years Ended (in thousands) April 30, 2017 May 1, 2016 May 3, 2015 Stock options and restricted stock units 207 3,069 880 Conversion of 5.0% Convertible Senior Notes due 2029 n/a n/a — 207 3,069 880 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following tables reflect intangible assets as of April 30, 2017 and May 1, 2016 : April 30, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Purchased technology $ 107,759 $ (101,367 ) $ 6,392 Purchased trade name 1,172 (1,172 ) — Purchased customer relationships 21,344 (17,752 ) 3,592 Purchased internal use software and backlog 2,816 (2,643 ) 173 Purchased patents 4,505 (1,643 ) 2,862 Total $ 137,596 $ (124,577 ) $ 13,019 May 1, 2016 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Purchased technology $ 107,759 $ (96,875 ) $ 10,884 Purchased trade name 1,172 (1,172 ) — Purchased customer relationships 21,344 (15,700 ) 5,644 Purchased internal use software and backlog 2,816 (2,317 ) 499 Purchased patents 2,620 (1,259 ) 1,361 Total $ 135,711 $ (117,323 ) $ 18,388 |
Schedule of Expected Future Amortization Expense | Estimated amortization expense for each of the next five fiscal years and thereafter as of April 30, 2017 is as follows: Year Amount (in thousands) 2018 $ 5,141 2019 3,696 2020 2,224 2021 704 2022 306 Beyond 2022 948 Total $ 13,019 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments in Fixed Income Securities | The Company's investments in fixed income securities as of April 30, 2017 and May 1, 2016 were as follows: April 30, 2017 May 1, 2016 Gross Unrealized Gross Unrealized (in thousands) Amortized Cost Gains Losses Fair Value Amortized Cost Gains Losses Fair Value Commercial paper $ 571,592 $ — $ — $ 571,592 $ — $ — $ — $ — Certificates of deposit 405,003 — — 405,003 263,255 — — 263,255 Total $ 976,595 $ — $ — $ 976,595 $ 263,255 $ — $ — $ 263,255 |
Schedule of Minority Investments | The Company's minority investments as of April 30, 2017 and May 1, 2016 were as follows: April 30, 2017 May 1, 2016 (dollars in thousands) Number of Investments Carrying Value Number of Investments Carrying Value Cost method three $ 603 three $ 1,242 Equity method one (1) 2,559 one 2,809 Total $ 3,162 $ 4,051 (1) As of April 30, 2017 , the Company had a 19.9% ownership interest in this company. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following (in thousands): As of April 30, 2017 May 1, 2016 Raw materials $ 66,560 $ 52,948 Work-in-process 173,302 142,757 Finished goods 91,526 77,586 Total inventories $ 331,388 $ 273,291 Including: inventory consigned to others $ 40,363 $ 44,600 |
Property, Equipment and Impro34
Property, Equipment and Improvements, Net (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Improvements | Property, equipment and improvements consist of the following (in thousands): As of April 30, 2017 May 1, 2016 Land and buildings $ 100,850 $ 98,586 Computer equipment 68,309 64,155 Office equipment, furniture and fixtures 5,764 5,901 Machinery and equipment 587,442 518,649 Leasehold property and improvements 44,724 41,826 Total 807,089 729,117 Accumulated depreciation and amortization (423,170 ) (380,504 ) Property, equipment and improvements, net $ 383,919 $ 348,613 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): As of April 30, 2017 May 1, 2016 Warranty accrual (Note 9) $ 4,417 $ 12,001 Other liabilities 39,281 30,205 Total $ 43,698 $ 42,206 |
Warranty (Tables)
Warranty (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | Changes in the Company’s warranty liability during the following periods were as follows: As of (in thousands) April 30, 2017 May 1, 2016 Beginning balance $ 12,001 $ 6,451 Additions during the period based on product sold 3,579 9,548 Change in estimates (2,081 ) (734 ) Settlements and expirations (9,082 ) (3,264 ) Ending balance $ 4,417 $ 12,001 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Convertible Debt | The 2036 Notes consisted of the following: As of (in thousands) April 30, 2017 May 1, 2016 Liability component: Principal $ 575,000 n/a Unamortized debt discount (103,022 ) n/a Unamortized debt issuance costs (4,281 ) n/a Net carrying amount of the liability component $ 467,697 n/a Carrying amount of the equity component $ 109,881 n/a The 2033 Notes consisted of the following: As of (in thousands) April 30, 2017 May 1, 2016 Liability component: Principal $ 258,750 $ 258,750 Unamortized debt discount (17,663 ) (27,739 ) Unamortized debt issuance costs (1,002 ) (1,618 ) Net carrying amount of the liability component $ 240,085 $ 229,393 Carrying amount of the equity component $ 49,648 $ 49,648 |
Summary of Interest Expense | The following table sets forth interest expense information related to the 2033 Notes: Fiscal Years Ended (in thousands, except percentages) April 30, 2017 May 1, 2016 May 3, 2015 Contractual interest expense $ 1,294 $ 1,294 $ 1,294 Amortization of the debt discount 10,076 9,604 9,153 Amortization of issuance costs 616 616 616 Total interest cost $ 11,986 $ 11,514 $ 11,063 Effective interest rate on the liability component 4.87 % 4.87 % 4.87 % The following table sets forth interest expense information related to the 2036 Notes: Fiscal Years Ended (in thousands, except percentages) April 30, 2017 May 1, 2016 May 3, 2015 Contractual interest expense $ 1,001 n/a n/a Amortization of the debt discount 6,859 n/a n/a Amortization of issuance costs 334 n/a n/a Total interest cost $ 8,194 n/a n/a Effective interest rate on the liability component 4.85 % n/a n/a |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company’s future commitments at April 30, 2017 included minimum payments under non-cancelable operating lease agreements, including operating lease obligations that have been accrued as restructuring charges, as follows (in thousands): Payments Due by Period Total Less Than 1 Year 1-3 Years 4-5 Years After 5 Years Operating leases $ 42,167 $ 10,324 $ 17,172 $ 6,747 $ 7,924 |
Fair Value of Financial Instr39
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets Measured on a Recurring Basis | The Company's financial instruments not measured at fair value on a recurring basis as of April 30, 2017 and May 1, 2016 were as follows: April 30, 2017 May 1, 2016 Carrying Fair Value Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Total Amount Level 1 Level 2 Level 3 Total Commercial paper $ 571,592 $ — $ 571,592 $ — $ 571,592 $ — $ — $ — $ — $ — Certificates of deposit $ 405,003 $ — $ 405,003 $ — $ 405,003 $ 263,255 $ — $ 263,255 $ — $ 263,255 2033 Notes $ 240,085 $ 273,628 $ — $ — $ 273,628 $ 229,393 $ 247,430 $ — $ — $ 247,430 2036 Notes $ 467,697 $ 534,391 $ — $ — $ 534,391 n/a n/a n/a n/a n/a |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Equity [Abstract] | |
Schedule of Common Stock Subject to Future Issuance | Common stock subject to future issuance as of April 30, 2017 is as follows: Exercise of outstanding stock options 581,172 Vesting of restricted stock awards 6,618,360 Available for grant under employee stock incentive plan 8,844,712 Available for grant under employee stock purchase plan 2,870,077 Total 18,914,321 |
Schedule of Stock Options | Stock Options Number of Shares Weighted-Average Exercise Price Stock options outstanding as of May 1, 2016 1,609,211 $ 15.68 Stock options exercised (763,424 ) $ 14.98 Stock options canceled (264,615 ) $ 30.46 Stock options outstanding as of April 30, 2017 581,172 $ 9.85 |
Schedule of Restricted Stock Units | Restricted Stock Units Number of Shares Weighted-Average Grant-Date Fair Value RSUs unvested as of May 1, 2016 6,214,199 $ 18.19 RSUs granted 3,162,717 $ 19.77 RSUs vested (2,441,964 ) $ 17.19 RSUs forfeited (316,592 ) $ 18.79 RSUs unvested as of April 30, 2017 6,618,360 $ 19.28 |
Schedule of Share-Based Compensation Expense | The following table sets forth the detailed allocation of the share-based compensation expense for the fiscal years ended April 30, 2017 , May 1, 2016 and May 3, 2015 which was reflected in the Company’s operating results: Fiscal Years Ended (in thousands) April 30, 2017 May 1, 2016 May 3, 2015 Share-based compensation expense by caption: Cost of revenues $ 11,409 $ 10,357 $ 9,908 Research and development 20,425 18,245 17,764 Sales and marketing 7,170 6,667 6,251 General and administrative 10,875 9,974 10,677 Total $ 49,879 $ 45,243 $ 44,600 Share-based compensation expense by type of award: RSUs $ 46,577 $ 42,162 $ 41,729 Employee stock purchase rights under ESPP 3,302 3,081 2,871 Total $ 49,879 $ 45,243 $ 44,600 |
Schedule of Employee Stock Purchase Plan Valuation Assumptions | The fair value of employee stock purchase rights granted under the ESPP in fiscal 2017 , 2016 and 2015 was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: Fiscal Years Ended April 30, 2017 May 1, 2016 May 3, 2015 Expected term (in years) 0.75 0.75 0.75 Volatility 40% - 43% 32% - 54% 34% - 53% Risk-free interest rate 0.36 - 0.89% 0.11 - 0.70% 0.07 - 0.21% Dividend yield — % — % — % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) consist of the following (in thousands): Fiscal Years Ended April 30, 2017 May 1, 2016 May 3, 2015 Current: Federal $ — $ — $ — State 532 (9 ) 209 Foreign 14,850 4,575 8,814 15,382 4,566 9,023 Deferred: Federal (102,305 ) — (607 ) State (1,008 ) — (14 ) Foreign 1,779 (4,928 ) 393 (101,534 ) (4,928 ) (228 ) Provision for (benefit from) income taxes $ (86,152 ) $ (362 ) $ 8,795 Income (loss) before income taxes consists of the following (in thousands): Fiscal Years Ended April 30, 2017 May 1, 2016 May 3, 2015 U.S. $ 96,648 $ (2,579 ) $ (29,300 ) Foreign 66,546 37,410 49,982 $ 163,194 $ 34,831 $ 20,682 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income tax provision at the federal statutory rate and the effective rate is as follows: Fiscal Years Ended April 30, 2017 May 1, 2016 May 3, 2015 Expected income tax provision (benefit) at U.S. federal statutory rate 35.0 % 35.0 % 35.0 % Foreign rate differential (5.0 ) (40.5 ) (46.9 ) Share-based compensation expense 0.7 14.1 29.6 Non-deductible transaction costs — 0.1 0.5 Valuation allowance (83.0 ) (2.5 ) 49.1 Other permanent adjustments 0.7 4.4 — Research and development credits (2.3 ) (12.6 ) (15.0 ) Other 1.0 1.0 (9.8 ) (52.9 )% (1.0 )% 42.5 % |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred taxes consist of the following (in thousands): As of April 30, 2017 May 1, 2016 Deferred tax assets: Inventory adjustments $ 9,161 $ 10,740 Accruals and reserves 12,731 14,890 Tax credits 38,092 34,094 Net operating loss carryforwards 106,297 100,193 Gain/loss on investments under equity or cost method 814 8,522 Depreciation and amortization 8,462 3,498 Purchase accounting for intangible assets 2,707 7,137 Capital loss carryforward 7,183 189 Acquired intangibles 4,343 6,298 Stock compensation 9,345 9,162 Total deferred tax assets 199,135 194,723 Valuation allowance (30,804 ) (162,892 ) Net deferred tax assets 168,331 31,831 Deferred tax liabilities: Acquired intangibles (2,360 ) (3,613 ) Debt discount (43,796 ) (10,774 ) Depreciation and amortization (16,233 ) (13,037 ) Total deferred tax liabilities (62,389 ) (27,424 ) Total net deferred tax assets (liabilities) $ 105,942 $ 4,407 Reported as: Deferred tax assets $ 107,225 $ 4,845 Deferred tax liabilities (1,283 ) (438 ) Total net deferred tax assets (liabilities) $ 105,942 $ 4,407 |
Summary of Movement in Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows (in thousands): Fiscal Years Ended April 30, 2017 May 1, 2016 May 3, 2015 Beginning balance $ 16,411 $ 14,653 $ 13,432 Additions for tax positions related to current year 1,675 1,331 975 Additions for tax positions related to prior years 3,372 902 246 Reductions for tax positions related to prior years (lapse of statute of limitations) — (475 ) — Ending balance $ 21,458 $ 16,411 $ 14,653 |
Segments and Geography Inform42
Segments and Geography Information (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following is a summary of revenues from sales to unaffiliated customers within geographic areas based on the location of the entity purchasing the Company’s products: Fiscal Years Ended (in thousands) April 30, 2017 May 1, 2016 May 3, 2015 United States $ 476,763 $ 408,700 $ 425,066 China 358,561 307,327 242,916 Malaysia 122,699 123,057 148,258 Rest of the world 491,280 424,082 434,704 Totals $ 1,449,303 $ 1,263,166 $ 1,250,944 Revenues generated in the United States are all from sales to customers located in the United States. The following is a summary of long-lived assets within geographic areas based on the location of the assets: As of (in thousands) April 30, 2017 May 1, 2016 United States $ 133,426 $ 118,000 Malaysia 49,779 53,762 China 205,423 182,119 Rest of the world 36,105 33,444 $ 424,733 $ 387,325 |
Financial Information by Quar43
Financial Information by Quarter (Unaudited) (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Three Months Ended April 30, 2017 (1) January 29, 2017 October 30, 2016 July 31, 2016 May 1, 2016 January 31, 2016 November 1, 2015 August 2, 2015 (2) (In thousands, except per share data) Revenues $ 357,527 $ 380,588 $ 369,863 $ 341,325 $ 318,794 $ 309,206 $ 321,136 $ 314,030 Gross profit $ 125,164 $ 136,637 $ 133,681 $ 108,165 $ 90,442 $ 87,740 $ 89,091 $ 87,377 Income from operations $ 40,841 $ 54,906 $ 52,828 $ 28,311 $ 14,136 $ 10,458 $ 9,368 $ 7,061 Net income $ 130,245 $ 46,386 $ 48,766 $ 23,949 $ 13,072 $ 12,084 $ 6,644 $ 3,393 Net income per share: Basic $ 1.17 $ 0.42 $ 0.44 $ 0.22 $ 0.12 $ 0.11 $ 0.06 $ 0.03 Diluted $ 1.13 $ 0.40 $ 0.43 $ 0.22 $ 0.12 $ 0.11 $ 0.06 $ 0.03 Shares used in computing net income per share: Basic 111,438 110,956 110,407 108,820 107,612 107,180 106,635 105,286 Diluted 115,248 114,873 113,192 110,821 109,386 108,128 107,493 108,107 (1) Net income in the fourth quarter of fiscal 2017 includes a $103.3 million release of valuation allowance on U.S. deferred tax assets. (2) Net income in the first quarter of fiscal 2016 includes a $1.9 million impairment charge for long-lived assets. |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Segment Reporting and Concentration Risk (Details) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017USD ($)segment | May 01, 2016 | May 03, 2015 | |
Accounting Policies [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Concentration Risk [Line Items] | |||
Net assets located overseas | $ | $ 510.9 | ||
Customer Concentration Risk | Accounts Receivable | 10 Largest Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 56.00% | 55.00% | |
Customer Concentration Risk | Accounts Receivable | Jabil | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 12.00% | ||
Customer Concentration Risk | Accounts Receivable | Flextronics | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 11.00% | ||
Customer Concentration Risk | Accounts Receivable | Huawei | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 18.00% | ||
Customer Concentration Risk | Revenues | 10 Largest Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 56.00% | 56.00% | 55.00% |
Customer Concentration Risk | Revenues | Huawei | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 11.00% | 12.00% | |
Customer Concentration Risk | Revenues | Cisco Systems | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 12.00% | 11.00% | 14.00% |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Foreign Currency Translation and PPE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Accounting Policies [Abstract] | |||
Gains (Losses) on foreign currency transactions | $ 539 | $ (1,200) | $ (479) |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (property, equipment and improvements) | 3 years | ||
Minimum | Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (property, equipment and improvements) | 25 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (property, equipment and improvements) | 7 years | ||
Maximum | Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (property, equipment and improvements) | 30 years |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Goodwill, Intangible Assets and Impairment of Long-Lived Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Aug. 02, 2015 | Jan. 25, 2015 | Apr. 30, 2017 | |
Finite-Lived Intangible Assets | |||
Impairment of long-lived assets | $ 1.9 | $ 5.8 | |
Minimum | |||
Finite-Lived Intangible Assets | |||
Estimated useful life (intangible assets) | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets | |||
Estimated useful life (intangible assets) | 15 years |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Recent and Pending Adoption of New Accounting Standards (Details) - Adjustments for New Accounting Pronouncement $ in Millions | May 01, 2016USD ($) |
Other Assets | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized debt issuance costs | $ (1.6) |
Convertible debt | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized debt issuance costs | $ 1.6 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | Apr. 30, 2017 | Dec. 31, 2016 | May 03, 2015 | Dec. 31, 2013 |
5.0% Convertible Senior Notes Due 2029 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.00% | 5.00% | ||
0.5% Convertible Senior Notes Due 2033 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.50% | 0.50% | ||
0.5% Convertible Senior Notes Due 2036 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.50% | 0.50% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2017 | Jan. 29, 2017 | Oct. 30, 2016 | Jul. 31, 2016 | May 01, 2016 | Jan. 31, 2016 | Nov. 01, 2015 | Aug. 02, 2015 | Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Numerator: | |||||||||||
Net income attributable to Finisar Corporation/Numerator for basic income per share | $ 130,245 | $ 46,386 | $ 48,766 | $ 23,949 | $ 13,072 | $ 12,084 | $ 6,644 | $ 3,393 | $ 249,346 | $ 35,193 | $ 11,887 |
Effect of dilutive securities: | |||||||||||
Interest expense on 5.0% Convertible Senior Notes due 2029 | 0 | ||||||||||
Numerator for diluted income per share | $ 249,346 | $ 35,193 | $ 11,887 | ||||||||
Denominator: | |||||||||||
Denominator for basic income per share - weighted average shares (shares) | 111,438 | 110,956 | 110,407 | 108,820 | 107,612 | 107,180 | 106,635 | 105,286 | 110,405 | 106,678 | 101,408 |
Effect of dilutive securities: | |||||||||||
Stock options and restricted stock units (shares) | 3,692 | 2,192 | 3,562 | ||||||||
5.0% Convertible Senior Notes due 2029 (shares) | 0 | ||||||||||
Dilutive potential common shares (shares) | 3,692 | 2,192 | 3,562 | ||||||||
Denominator for diluted income per share (shares) | 115,248 | 114,873 | 113,192 | 110,821 | 109,386 | 108,128 | 107,493 | 108,107 | 114,097 | 108,870 | 104,970 |
Net income per share: | |||||||||||
Basic (in dollars per share) | $ 1.17 | $ 0.42 | $ 0.44 | $ 0.22 | $ 0.12 | $ 0.11 | $ 0.06 | $ 0.03 | $ 2.26 | $ 0.33 | $ 0.12 |
Diluted (in dollars per share) | $ 1.13 | $ 0.40 | $ 0.43 | $ 0.22 | $ 0.12 | $ 0.11 | $ 0.06 | $ 0.03 | $ 2.19 | $ 0.32 | $ 0.11 |
5.0% Convertible Senior Notes Due 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 5.00% | 5.00% | 5.00% |
Earnings Per Share - Schedule50
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Net Income (Loss) Per Share (Details) - shares shares in Thousands | 12 Months Ended | |||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 207 | 3,069 | 880 | |
5.0% Convertible Senior Notes Due 2029 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Interest rate | 5.00% | 5.00% | ||
0.5% Convertible Senior Notes Due 2036 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Interest rate | 0.50% | 0.50% | ||
Stock options and restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 207 | 3,069 | 880 | |
Convertible Senior Notes | 5.0% Convertible Senior Notes Due 2029 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | May 01, 2016 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 137,596 | $ 135,711 |
Accumulated Amortization | (124,577) | (117,323) |
Total | 13,019 | 18,388 |
Purchased technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 107,759 | 107,759 |
Accumulated Amortization | (101,367) | (96,875) |
Total | 6,392 | 10,884 |
Purchased trade name | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 1,172 | 1,172 |
Accumulated Amortization | (1,172) | (1,172) |
Total | 0 | 0 |
Purchased customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 21,344 | 21,344 |
Accumulated Amortization | (17,752) | (15,700) |
Total | 3,592 | 5,644 |
Purchased internal use software and backlog | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 2,816 | 2,816 |
Accumulated Amortization | (2,643) | (2,317) |
Total | 173 | 499 |
Purchased patents | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 4,505 | 2,620 |
Accumulated Amortization | (1,643) | (1,259) |
Total | $ 2,862 | $ 1,361 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 7.3 | $ 8.8 | $ 8.7 |
Intangible Assets - Schedule 53
Intangible Assets - Schedule of Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | May 01, 2016 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 5,141 | |
2,019 | 3,696 | |
2,020 | 2,224 | |
2,021 | 704 | |
2,022 | 306 | |
Beyond 2,022 | 948 | |
Total | $ 13,019 | $ 18,388 |
Investments - Fixed Income Secu
Investments - Fixed Income Securities (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Investment | |||
Amortized cost | $ 976,595,000 | $ 263,255,000 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 976,595,000 | 263,255,000 | |
Realized gains or losses | 0 | 0 | $ 0 |
Commercial Paper | |||
Investment | |||
Amortized cost | 571,592,000 | 0 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 571,592,000 | 0 | |
Certificates of deposit | |||
Investment | |||
Amortized cost | 405,003,000 | 263,255,000 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | $ 405,003,000 | $ 263,255,000 |
Investments - Minority Investme
Investments - Minority Investments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 29, 2017USD ($) | Apr. 30, 2017USD ($)investment | May 01, 2016USD ($)investment | May 03, 2015USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||
Number of companies (cost method) | investment | 3 | 3 | ||
Number of companies (equity method) | investment | 1 | 1 | ||
Cost method | $ 603 | $ 1,242 | ||
Equity method | 2,559 | 2,809 | ||
Total | $ 3,162 | 4,051 | ||
Ownership percentage in equity method investment | 19.90% | |||
Impairment of minority investment | $ 643 | $ 643 | $ 0 | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | May 01, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 66,560 | $ 52,948 |
Work-in-process | 173,302 | 142,757 |
Finished goods | 91,526 | 77,586 |
Total inventories | 331,388 | 273,291 |
Including: inventory consigned to others | $ 40,363 | $ 44,600 |
Property, Equipment and Impro57
Property, Equipment and Improvements, Net - Schedule of Property, Equipment and Improvements (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | May 01, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 807,089 | $ 729,117 |
Accumulated depreciation and amortization | (423,170) | (380,504) |
Property, equipment and improvements, net | 383,919 | 348,613 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total | 100,850 | 98,586 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 68,309 | 64,155 |
Office equipment, furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total | 5,764 | 5,901 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 587,442 | 518,649 |
Leasehold property and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 44,724 | $ 41,826 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | May 01, 2016 | May 03, 2015 |
Other Liabilities Disclosure [Abstract] | |||
Warranty accrual | $ 4,417 | $ 12,001 | $ 6,451 |
Other liabilities | 39,281 | 30,205 | |
Total | $ 43,698 | $ 42,206 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 12,001 | $ 6,451 |
Additions during the period based on product sold | 3,579 | 9,548 |
Change in estimates | (2,081) | (734) |
Settlements and expirations | (9,082) | (3,264) |
Ending balance | $ 4,417 | $ 12,001 |
Debt - 0.50% Convertible Senior
Debt - 0.50% Convertible Senior Notes Due 2036 (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2016USD ($)d$ / shares | Dec. 31, 2013 | Apr. 30, 2017USD ($) | |
0.5% Convertible Senior Notes Due 2036 | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.50% | 0.50% | |
Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Face amount | $ 575,000 | ||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2036 | |||
Debt Instrument [Line Items] | |||
Transaction costs in connection with issuance of notes | $ 5,700 | ||
Convertible debt, conversion ratio | 0.0226388 | ||
Convertible debt, conversion ratio (in dollars per share) | $ / shares | $ 44.17 | ||
Carrying amount of liability component | $ 465,100 | ||
Carrying amount of the equity component | $ 109,900 | $ 109,881 | |
Debt discount amortization period | 56 months | ||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2036 | Additional Paid-in Capital | |||
Debt Instrument [Line Items] | |||
Transaction costs in connection with issuance of notes | $ 1,100 | ||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2036 | Other Noncurrent Assets | |||
Debt Instrument [Line Items] | |||
Transaction costs in connection with issuance of notes | $ 4,600 | ||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2036 | Debt Instrument, Redemption, Period One | |||
Debt Instrument [Line Items] | |||
Debt redemption price percentage | 100.00% | ||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2036 | Debt Instrument, Redemption, Period Two | |||
Debt Instrument [Line Items] | |||
Debt redemption price percentage | 100.00% | ||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2036 | Debt Instrument, Redemption, Period Three | |||
Debt Instrument [Line Items] | |||
Debt redemption price percentage | 100.00% | ||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2036 | Debt Instrument, Redemption, Period Four | |||
Debt Instrument [Line Items] | |||
Debt redemption price percentage | 100.00% | ||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2036 | Debt Instrument, Redemption, Period Five | |||
Debt Instrument [Line Items] | |||
Debt redemption price percentage | 100.00% | ||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2036 | Debt Instrument, Conversion, Option One | |||
Debt Instrument [Line Items] | |||
Convertible debt, threshold trading days | d | 20 | ||
Convertible debt, threshold consecutive trading days | 30 days | ||
Convertible debt, threshold percentage of stock price trigger | 130.00% | ||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2036 | Debt Instrument, Conversion, Option Two | |||
Debt Instrument [Line Items] | |||
Convertible debt, threshold trading days | d | 5 | ||
Convertible debt, threshold consecutive trading days | 5 days | ||
Convertible debt, threshold percentage of stock price trigger | 98.00% |
Debt - 2036 Notes (Details)
Debt - 2036 Notes (Details) - Convertible debt - 0.5% Convertible Senior Notes Due 2036 - USD ($) $ in Thousands | Apr. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Principal | $ 575,000 | |
Unamortized debt discount | (103,022) | |
Unamortized debt issuance costs | (4,281) | |
Net carrying amount of the liability component | 467,697 | |
Carrying amount of the equity component | $ 109,881 | $ 109,900 |
Debt - Interest Expense - 2036
Debt - Interest Expense - 2036 Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Debt Instrument [Line Items] | |||
Amortization of discount on convertible debt | $ 16,935 | $ 9,604 | $ 9,153 |
Convertible debt | 0.5% Convertible Senior Notes Due 2036 | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 1,001 | ||
Amortization of discount on convertible debt | 6,859 | ||
Amortization of issuance costs | 334 | ||
Total interest cost | $ 8,194 | ||
Convertible debt | 0.5% Convertible Senior Notes Due 2036 | Liability | |||
Debt Instrument [Line Items] | |||
Effective interest rate on the liability component | 4.85% |
Debt - 0.50% Convertible Seni63
Debt - 0.50% Convertible Senior Notes Due 2033 (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2013USD ($)d$ / shares | Apr. 30, 2017USD ($) | Dec. 31, 2016USD ($) | May 01, 2016USD ($) | |
0.5% Convertible Senior Notes Due 2033 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.50% | 0.50% | ||
Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 575,000,000 | |||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2033 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 258,800,000 | |||
Convertible debt, conversion ratio | 0.0331031 | |||
Convertible debt, conversion ratio (in dollars per share) | $ / shares | $ 30.18 | |||
Carrying amount of liability component | $ 209,100,000 | |||
Carrying amount of the equity component | $ 49,600,000 | $ 49,648,000 | $ 49,648,000 | |
Debt discount amortization period | 19 months | |||
Transaction costs in connection with issuance of notes | $ 3,800,000 | |||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2033 | Additional Paid-in Capital | ||||
Debt Instrument [Line Items] | ||||
Transaction costs in connection with issuance of notes | 725,000 | |||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2033 | Other Noncurrent Assets | ||||
Debt Instrument [Line Items] | ||||
Transaction costs in connection with issuance of notes | $ 3,100,000 | |||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2033 | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Debt redemption price percentage | 100.00% | |||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2033 | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Debt redemption price percentage | 100.00% | |||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2033 | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Debt redemption price percentage | 100.00% | |||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2033 | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument [Line Items] | ||||
Debt redemption price percentage | 100.00% | |||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2033 | Debt Instrument, Conversion, Option One | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, threshold trading days | d | 20 | |||
Convertible debt, threshold consecutive trading days | 30 days | |||
Convertible debt, threshold percentage of stock price trigger | 130.00% | |||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2033 | Debt Instrument, Conversion, Option Two | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, threshold trading days | d | 5 | |||
Convertible debt, threshold consecutive trading days | 5 days | |||
Convertible debt, threshold percentage of stock price trigger | 98.00% |
Debt - 2033 Notes (Details)
Debt - 2033 Notes (Details) - Convertible debt - 0.5% Convertible Senior Notes Due 2033 - USD ($) $ in Thousands | Apr. 30, 2017 | May 01, 2016 | Dec. 31, 2013 |
Debt Instrument [Line Items] | |||
Principal | $ 258,750 | $ 258,750 | |
Unamortized debt discount | (17,663) | (27,739) | |
Unamortized debt issuance costs | (1,002) | (1,618) | |
Net carrying amount of the liability component | 240,085 | 229,393 | |
Carrying amount of the equity component | $ 49,648 | $ 49,648 | $ 49,600 |
Debt - Interest Expense - 2033
Debt - Interest Expense - 2033 Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Debt Instrument [Line Items] | |||
Amortization of the debt discount | $ 16,935 | $ 9,604 | $ 9,153 |
Convertible debt | 0.5% Convertible Senior Notes Due 2033 | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 1,294 | 1,294 | 1,294 |
Amortization of the debt discount | 10,076 | 9,604 | 9,153 |
Amortization of issuance costs | 616 | 616 | 616 |
Total interest cost | $ 11,986 | $ 11,514 | $ 11,063 |
Convertible debt | 0.5% Convertible Senior Notes Due 2033 | Liability | |||
Debt Instrument [Line Items] | |||
Effective interest rate on the liability component | 4.87% | 4.87% | 4.87% |
Debt - 5.0% Convertible Senior
Debt - 5.0% Convertible Senior Notes Due 2029 (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2014USD ($)shares | Oct. 31, 2009USD ($)d$ / shares | Apr. 30, 2011USD ($) | Apr. 30, 2017 | Dec. 31, 2016USD ($) | May 03, 2015 | Apr. 27, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||
Conversion of stock, shares issued (shares) | shares | 3,748,473 | ||||||
Gain (loss) recognized on debt conversion | $ 0 | ||||||
5.0% Convertible Senior Notes Due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.00% | 5.00% | |||||
Convertible debt | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 575,000,000 | ||||||
Convertible debt | 5.0% Convertible Senior Notes Due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 100,000,000 | $ 40,000,000 | $ 40,000,000 | ||||
Interest rate | 5.00% | ||||||
Convertible debt, conversion ratio | 0.0936768 | ||||||
Convertible debt, conversion ratio (in dollars per share) | $ / shares | $ 10.68 | ||||||
Convertible debt, threshold percentage of stock price trigger | 130.00% | ||||||
Convertible debt, threshold trading days | d | 20 | ||||||
Convertible debt, threshold consecutive trading days | 30 days | ||||||
Convertible debt, threshold trading days within notice of redemption | 5 days | ||||||
Aggregate principal amount of debt exchanged | $ 60,000,000 | ||||||
Convertible debt | 5.0% Convertible Senior Notes Due 2029 | Debt Instrument, Redemption, Period One | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption price percentage | 100.00% | ||||||
Convertible debt | 5.0% Convertible Senior Notes Due 2029 | Debt Instrument, Redemption, Period Two | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption price percentage | 100.00% | ||||||
Convertible debt | 5.0% Convertible Senior Notes Due 2029 | Debt Instrument, Redemption, Period Three | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption price percentage | 100.00% | ||||||
Convertible debt | 5.0% Convertible Senior Notes Due 2029 | Debt Instrument, Redemption, Period Four | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption price percentage | 100.00% | ||||||
Convertible debt | 5.0% Convertible Senior Notes Due 2029 | Debt Instrument, Redemption, Period Five | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption price percentage | 100.00% | ||||||
Convertible debt | 5.0% Convertible Senior Notes Due 2029 | Debt Instrument, Redemption, Period Six | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption price percentage | 100.00% |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Operating Leases, Future Minimum Payments Due [Abstract] | |||
Total | $ 42,167 | ||
Less Than 1 Year | 10,324 | ||
1-3 Years | 17,172 | ||
4-5 Years | 6,747 | ||
After 5 Years | 7,924 | ||
Rent expense | 9,000 | $ 9,400 | $ 10,700 |
Sublease income | $ 373 | $ 168 | $ 218 |
Fair Value of Financial Instr68
Fair Value of Financial Instruments - Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Apr. 30, 2017 | May 01, 2016 |
Carrying Amount | 0.5% Convertible Senior Notes Due 2033 | ||
Financial assets [Abstract] | ||
Notes | $ 240,085 | $ 229,393 |
Carrying Amount | 0.5% Convertible Senior Notes Due 2036 | ||
Financial assets [Abstract] | ||
Notes | 467,697 | |
Carrying Amount | Commercial paper | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 571,592 | 0 |
Carrying Amount | Certificates of deposit | ||
Financial assets [Abstract] | ||
Investments | 405,003 | 263,255 |
Fair Value | 0.5% Convertible Senior Notes Due 2033 | ||
Financial assets [Abstract] | ||
Notes | 273,628 | 247,430 |
Fair Value | 0.5% Convertible Senior Notes Due 2036 | ||
Financial assets [Abstract] | ||
Notes | 534,391 | |
Fair Value | Level 1 | 0.5% Convertible Senior Notes Due 2033 | ||
Financial assets [Abstract] | ||
Notes | 273,628 | 247,430 |
Fair Value | Level 1 | 0.5% Convertible Senior Notes Due 2036 | ||
Financial assets [Abstract] | ||
Notes | 534,391 | |
Fair Value | Level 2 | 0.5% Convertible Senior Notes Due 2033 | ||
Financial assets [Abstract] | ||
Notes | 0 | 0 |
Fair Value | Level 2 | 0.5% Convertible Senior Notes Due 2036 | ||
Financial assets [Abstract] | ||
Notes | 0 | |
Fair Value | Level 3 | 0.5% Convertible Senior Notes Due 2033 | ||
Financial assets [Abstract] | ||
Notes | 0 | 0 |
Fair Value | Level 3 | 0.5% Convertible Senior Notes Due 2036 | ||
Financial assets [Abstract] | ||
Notes | 0 | |
Fair Value | Commercial paper | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 571,592 | 0 |
Fair Value | Commercial paper | Level 1 | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Fair Value | Commercial paper | Level 2 | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 571,592 | 0 |
Fair Value | Commercial paper | Level 3 | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Fair Value | Certificates of deposit | ||
Financial assets [Abstract] | ||
Investments | 405,003 | 263,255 |
Fair Value | Certificates of deposit | Level 1 | ||
Financial assets [Abstract] | ||
Investments | 0 | 0 |
Fair Value | Certificates of deposit | Level 2 | ||
Financial assets [Abstract] | ||
Investments | 405,003 | 263,255 |
Fair Value | Certificates of deposit | Level 3 | ||
Financial assets [Abstract] | ||
Investments | $ 0 | $ 0 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2014shares | Apr. 30, 2017vote$ / sharesshares | May 01, 2016$ / sharesshares | |
Common Stock and Preferred Stock [Abstract] | |||
Common stock, shares authorized (shares) | 750,000,000 | 750,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |
Common stock, number of votes per share | vote | 1 | ||
2009 Employee Stock Purchase Plan | |||
Employee Stock Purchase Plan [Abstract] | |||
Number of shares authorized under the plan (shares) | 7,000,000 | ||
Maximum employee subscription rate | 20.00% | ||
Purchase price of common stock, discounted percentage | 85.00% | ||
2005 Plan | |||
Employee Stock Purchase Plan [Abstract] | |||
Number of shares authorized under the plan (shares) | 22,500,000 | ||
Employee Stock Plans [Abstract] | |||
Award vesting period | 5 years | ||
Stock option term, maximum | 10 years | ||
2005 Plan | Restricted Stock Units | |||
Employee Stock Plans [Abstract] | |||
Award vesting period | 4 years |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Subject to Future Issuance (Details) - shares | Apr. 30, 2017 | May 01, 2016 |
Class of Stock [Line Items] | ||
Exercise of outstanding stock options (shares) | 581,172 | 1,609,211 |
Available for grant under employee stock incentive plan (shares) | 8,844,712 | |
Available for grant under employee stock purchase plan (shares) | 2,870,077 | |
Total (shares) | 18,914,321 | |
Restricted Stock Units | ||
Class of Stock [Line Items] | ||
Vesting of restricted stock awards (shares) | 6,618,360 | 6,214,199 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Number of Shares | |||
Stock options outstanding, beginning balance (shares) | 1,609,211 | ||
Stock options exercised (shares) | (763,424) | ||
Stock options canceled (shares) | (264,615) | ||
Stock options outstanding, ending balance (shares) | 581,172 | 1,609,211 | |
Weighted-Average Exercise Price | |||
Options outstanding, beginning, weighted average exercise price (in dollars per share) | $ 15.68 | ||
Options exercised, weighted average exercise price (in dollars per share) | 14.98 | ||
Options canceled, weighted average exercise price (in dollars per share) | 30.46 | ||
Options outstanding, ending weighted average exercise price (in dollars per share) | $ 9.85 | $ 15.68 | |
Options exercised, aggregate intrinsic value | $ 9.9 | $ 3.3 | $ 3.4 |
Options outstanding, intrinsic value | $ 7.8 | ||
Options outstanding ending, weighted average remaining contractual term | 1 year 8 months 25 days |
Stockholders' Equity - Schedu72
Stockholders' Equity - Schedule of Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Weighted-Average Grant-Date Fair Value | |||
Aggregate intrinsic value of restricted stock units outstanding | $ 151.2 | ||
Unrecognized compensation expense related to RSUs | $ 89.2 | ||
Period for recognition of unrecognized compensation related to RSUs | 2 years 3 months 15 days | ||
Restricted Stock Units | |||
Number of Shares | |||
RSUs unvested, beginning balance (shares) | 6,214,199 | ||
RSUs granted (shares) | 3,162,717 | ||
RSUs vested (shares) | (2,441,964) | ||
RSUs forfeited (shares) | (316,592) | ||
RSUs unvested, ending balance (shares) | 6,618,360 | 6,214,199 | |
Weighted-Average Grant-Date Fair Value | |||
RSUs unvested, beginning balance (in dollars per share) | $ 18.19 | ||
RSUs granted (in dollars per share) | 19.77 | $ 19.02 | $ 19.55 |
RSUs vested (in dollars per share) | 17.19 | ||
RSUs forfeited (in dollars per share) | 18.79 | ||
RSUs unvested, ending balance (in dollars per share) | $ 19.28 | $ 18.19 | |
Fair value of restricted stock units that vested during the period | $ 42 | $ 41.7 | $ 36.3 |
Stockholders' Equity - Schedu73
Stockholders' Equity - Schedule of Share-Based Compensation Expense by Caption and Type of Award (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | $ 49,879 | $ 45,243 | $ 44,600 |
Stock-based compensation capitalized as part of inventory | 2,500 | 2,500 | |
RSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | 46,577 | 42,162 | 41,729 |
Employee stock purchase rights under ESPP | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | 3,302 | 3,081 | 2,871 |
Cost of revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | 11,409 | 10,357 | 9,908 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | 20,425 | 18,245 | 17,764 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | 7,170 | 6,667 | 6,251 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | $ 10,875 | $ 9,974 | $ 10,677 |
Stockholders' Equity - Schedu74
Stockholders' Equity - Schedule of Employee Stock Purchase Plan Valuation Assumptions (Details) - 2009 Employee Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 9 months | 9 months | 9 months |
Volatility, minimum | 40.00% | 32.00% | 34.00% |
Volatility, maximum | 43.00% | 54.00% | 53.00% |
Risk-free interest rate, minimum | 0.36% | 0.11% | 0.07% |
Risk-free interest rate, maximum | 0.89% | 0.70% | 0.21% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted average grant date fair value of options granted in the period (in dollars per share) | $ 5.34 | $ 2.79 | $ 3.06 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2017 | Apr. 30, 2017 | Dec. 31, 2016 | May 01, 2016 | Dec. 31, 2015 | May 03, 2015 | |
Defined Benefit Plan Disclosure | ||||||
Maximum statutory contribution by employee (percentage of gross) | 20.00% | |||||
Maximum statutory contribution by employee (in usd) | $ 18,000 | $ 18,000 | ||||
Employer matching contribution (percentage of employee's match) | 50.00% | |||||
Employer matching contribution (percentage of employee's match subject to employer match) | 6.00% | |||||
Employer contribution in defined contribution retirement plan (in usd) | $ 2,700,000 | |||||
Defined contribution plan expenses | $ 2,800,000 | $ 2,400,000 | $ 2,600,000 | |||
Common Stock | ||||||
Defined Benefit Plan Disclosure | ||||||
Employer contribution in defined contribution retirement plan (in shares) | 85,040 | 163,464 | 122,979 | |||
Forecast | ||||||
Defined Benefit Plan Disclosure | ||||||
Maximum statutory contribution by employee (in usd) | $ 18,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 532 | (9) | 209 |
Foreign | 14,850 | 4,575 | 8,814 |
Current income tax expense (benefit) | 15,382 | 4,566 | 9,023 |
Deferred: | |||
Federal | (102,305) | 0 | (607) |
State | (1,008) | 0 | (14) |
Foreign | 1,779 | (4,928) | 393 |
Deferred income tax expense (benefit) | (101,534) | (4,928) | (228) |
Provision for (benefit from) income taxes | (86,152) | (362) | 8,795 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest [Abstract] | |||
U.S. | 96,648 | (2,579) | (29,300) |
Foreign | 66,546 | 37,410 | 49,982 |
Income before income taxes | $ 163,194 | $ 34,831 | $ 20,682 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Expected income tax provision (benefit) at U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
Foreign rate differential | (5.00%) | (40.50%) | (46.90%) |
Share-based compensation expense | 0.70% | 14.10% | 29.60% |
Non-deductible transaction costs | 0.00% | 0.10% | 0.50% |
Valuation allowance | (83.00%) | (2.50%) | 49.10% |
Other permanent adjustments | 0.70% | 4.40% | 0.00% |
Research and development credits | (2.30%) | (12.60%) | (15.00%) |
Other | 1.00% | 1.00% | (9.80%) |
Effective income tax rate | (52.90%) | (1.00%) | 42.50% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | May 01, 2016 |
Deferred tax assets: | ||
Inventory adjustments | $ 9,161 | $ 10,740 |
Accruals and reserves | 12,731 | 14,890 |
Tax credits | 38,092 | 34,094 |
Net operating loss carryforwards | 106,297 | 100,193 |
Gain/loss on investments under equity or cost method | 814 | 8,522 |
Depreciation and amortization | 8,462 | 3,498 |
Purchase accounting for intangible assets | 2,707 | 7,137 |
Capital loss carryforward | 7,183 | 189 |
Acquired intangibles | 4,343 | 6,298 |
Stock compensation | 9,345 | 9,162 |
Total deferred tax assets | 199,135 | 194,723 |
Valuation allowance | (30,804) | (162,892) |
Net deferred tax assets | 168,331 | 31,831 |
Deferred tax liabilities: | ||
Acquired intangibles | (2,360) | (3,613) |
Debt discount | (43,796) | (10,774) |
Depreciation and amortization | (16,233) | (13,037) |
Total deferred tax liabilities | (62,389) | (27,424) |
Total net deferred tax assets (liabilities) | 105,942 | 4,407 |
Reported as: | ||
Deferred tax assets | 107,225 | 4,845 |
Deferred tax liabilities | $ (1,283) | $ (438) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Operating Loss Carryforwards | ||||
Increase (decrease) in valuation allowance | $ 103,300,000 | $ 132,100,000 | $ 1,500,000 | $ (7,700,000) |
Tax Holiday affect on net income (in usd) | $ 6,100,000 | |||
Tax Holiday affect on net income (in usd per share) | $ 0.05 | |||
Provision for U.S. income taxes for undistributed earnings | $ 0 | |||
Undistributed earnings of foreign subsidiaries | 349,800,000 | $ 349,800,000 | ||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | |
Unrecognized tax benefits that would impact effective tax rate | 16,700,000 | $ 16,700,000 | ||
Accrued interest or penalties | 822,000 | 822,000 | $ 0 | |
Federal | ||||
Operating Loss Carryforwards | ||||
Net operating loss carryforwards | 276,800,000 | 276,800,000 | ||
Tax credit carryforwards | 34,300,000 | 34,300,000 | ||
State | ||||
Operating Loss Carryforwards | ||||
Net operating loss carryforwards | 13,200,000 | 13,200,000 | ||
Tax credit carryforwards | 26,800,000 | 26,800,000 | ||
Foreign | ||||
Operating Loss Carryforwards | ||||
Net operating loss carryforwards | $ 34,300,000 | $ 34,300,000 |
Income Taxes - Summary of Movem
Income Taxes - Summary of Movement in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 16,411 | $ 14,653 | $ 13,432 |
Additions for tax positions related to current year | 1,675 | 1,331 | 975 |
Additions for tax positions related to prior years | 3,372 | 902 | 246 |
Reductions for tax positions related to prior years (lapse of statute of limitations) | 0 | (475) | 0 |
Ending balance | $ 21,458 | $ 16,411 | $ 14,653 |
Segments and Geography Inform81
Segments and Geography Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographic Area (Details) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017USD ($)segment | May 01, 2016USD ($) | May 03, 2015USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Segment Reporting Information | |||
Revenues | $ 1,449,303 | $ 1,263,166 | $ 1,250,944 |
Long-lived assets | 424,733 | 387,325 | |
Operating Segments | United States | |||
Segment Reporting Information | |||
Revenues | 476,763 | 408,700 | 425,066 |
Long-lived assets | 133,426 | 118,000 | |
Operating Segments | China | |||
Segment Reporting Information | |||
Revenues | 358,561 | 307,327 | 242,916 |
Long-lived assets | 205,423 | 182,119 | |
Operating Segments | Malaysia | |||
Segment Reporting Information | |||
Revenues | 122,699 | 123,057 | 148,258 |
Long-lived assets | 49,779 | 53,762 | |
Operating Segments | Rest of the World | |||
Segment Reporting Information | |||
Revenues | 491,280 | 424,082 | $ 434,704 |
Long-lived assets | $ 36,105 | $ 33,444 |
Legal Matters (Details)
Legal Matters (Details) - Pending Litigation | Mar. 08, 2011lawsuit |
Earnings Announcements Cases | |
Loss Contingencies [Line Items] | |
Loss contingency pending claims | 2 |
Derivative Lawsuit | |
Loss Contingencies [Line Items] | |
Loss contingency pending claims | 1 |
Guarantees and Indemnificatio83
Guarantees and Indemnifications (Details) | 12 Months Ended |
Apr. 30, 2017 | |
Guarantees [Abstract] | |
Period of written notification to terminate agreement | 90 days |
Financial Information by Quar84
Financial Information by Quarter (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2017 | Jan. 29, 2017 | Oct. 30, 2016 | Jul. 31, 2016 | May 01, 2016 | Jan. 31, 2016 | Nov. 01, 2015 | Aug. 02, 2015 | Jan. 25, 2015 | Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Revenues | $ 357,527 | $ 380,588 | $ 369,863 | $ 341,325 | $ 318,794 | $ 309,206 | $ 321,136 | $ 314,030 | ||||
Gross profit | 125,164 | 136,637 | 133,681 | 108,165 | 90,442 | 87,740 | 89,091 | 87,377 | $ 503,647 | $ 354,650 | $ 350,910 | |
Income from operations | 40,841 | 54,906 | 52,828 | 28,311 | 14,136 | 10,458 | 9,368 | 7,061 | 176,885 | 41,023 | 26,794 | |
Net income | $ 130,245 | $ 46,386 | $ 48,766 | $ 23,949 | $ 13,072 | $ 12,084 | $ 6,644 | $ 3,393 | $ 249,346 | $ 35,193 | $ 11,887 | |
Net income per share: | ||||||||||||
Basic (in dollars per share) | $ 1.17 | $ 0.42 | $ 0.44 | $ 0.22 | $ 0.12 | $ 0.11 | $ 0.06 | $ 0.03 | $ 2.26 | $ 0.33 | $ 0.12 | |
Diluted (in dollars per share) | $ 1.13 | $ 0.40 | $ 0.43 | $ 0.22 | $ 0.12 | $ 0.11 | $ 0.06 | $ 0.03 | $ 2.19 | $ 0.32 | $ 0.11 | |
Shares used in computing net income per share: | ||||||||||||
Basic (shares) | 111,438 | 110,956 | 110,407 | 108,820 | 107,612 | 107,180 | 106,635 | 105,286 | 110,405 | 106,678 | 101,408 | |
Diluted (shares) | 115,248 | 114,873 | 113,192 | 110,821 | 109,386 | 108,128 | 107,493 | 108,107 | 114,097 | 108,870 | 104,970 | |
Increase (decrease) in valuation allowance | $ 103,300 | $ 132,100 | $ 1,500 | $ (7,700) | ||||||||
Impairment of long-lived assets | $ 1,900 | $ 5,800 |
Schedule II - Consolidated Va85
Schedule II - Consolidated Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | May 01, 2016 | May 03, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 727 | $ 1,136 | $ 929 |
Additions Charged to (Recoveries Offset) Costs and Expenses, Net | 33 | (403) | 207 |
Write-Offs | (4) | (6) | 0 |
Balance at End of Period | $ 756 | $ 727 | $ 1,136 |