Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Apr. 29, 2018 | Jun. 08, 2018 | Oct. 29, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FINISAR CORP | ||
Entity Central Index Key | 1,094,739 | ||
Current Fiscal Year End Date | --04-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 29, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 114,923,568 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2.2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 29, 2018 | Apr. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 312,257 | $ 260,228 |
Short-term investments | 884,838 | 976,595 |
Accounts receivable, net of allowance for doubtful accounts of $269 at April 29, 2018 and $756 at April 30, 2017 | 233,529 | 272,377 |
Inventories | 348,527 | 331,388 |
Other current assets | 56,001 | 68,269 |
Total current assets | 1,835,152 | 1,908,857 |
Property, equipment and improvements, net | 520,849 | 383,919 |
Purchased intangible assets, net | 7,878 | 13,019 |
Goodwill | 106,736 | 106,736 |
Other assets | 31,720 | 20,126 |
Deferred tax assets | 80,850 | 107,225 |
Total assets | 2,583,185 | 2,539,882 |
Current liabilities: | ||
Accounts payable | 132,161 | 140,568 |
Accrued compensation | 32,525 | 54,520 |
Other current liabilities | 32,824 | 43,698 |
Deferred revenue | 9,535 | 13,015 |
Current portion of convertible debt | 251,278 | 0 |
Total current liabilities | 458,323 | 251,801 |
Long-term liabilities: | ||
Convertible debt, net of current portion | 488,877 | 707,782 |
Other non-current liabilities | 12,368 | 17,594 |
Total liabilities | 959,568 | 977,177 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued and outstanding at April 29, 2018 and April 30, 2017 | 0 | 0 |
Common stock, $0.001 par value, 750,000 shares authorized, 114,813 shares issued and outstanding at April 29, 2018 and 111,519 shares issued and outstanding at April 30, 2017 | 115 | 112 |
Additional paid-in capital | 2,850,195 | 2,784,204 |
Accumulated other comprehensive loss | (14,660) | (57,864) |
Accumulated deficit | (1,212,033) | (1,163,747) |
Total stockholders' equity | 1,623,617 | 1,562,705 |
Total liabilities and stockholders’ equity | $ 2,583,185 | $ 2,539,882 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Apr. 29, 2018 | Apr. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 269 | $ 756 |
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) | 114,813,000 | 111,519,000 |
Common stock, shares outstanding (shares) | 114,813,000 | 111,519,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 1,316,483 | $ 1,449,303 | $ 1,263,166 |
Cost of revenues | 951,510 | 941,164 | 901,316 |
Amortization of acquired developed technology | 2,436 | 4,492 | 6,129 |
Impairment of long-lived assets | 371 | 0 | 1,071 |
Gross profit | 362,166 | 503,647 | 354,650 |
Operating expenses: | |||
Research and development | 239,008 | 217,914 | 203,389 |
Sales and marketing | 49,024 | 50,644 | 46,619 |
General and administrative | 59,518 | 55,442 | 60,117 |
Start-up costs | 3,535 | 0 | 0 |
Amortization of purchased intangibles | 2,705 | 2,762 | 2,672 |
Impairment of long-lived assets | 1,862 | 0 | 830 |
Total operating expenses | 355,652 | 326,762 | 313,627 |
Income from operations | 6,514 | 176,885 | 41,023 |
Interest income | 16,084 | 6,763 | 2,345 |
Interest expense | (36,656) | (20,363) | (11,750) |
Other income (expense), net | (945) | (91) | 3,213 |
Income (loss) before income taxes | (15,003) | 163,194 | 34,831 |
Provision for (benefit from) income taxes | 33,283 | (86,152) | (362) |
Net income (loss) | $ (48,286) | $ 249,346 | $ 35,193 |
Net income (loss) per share: | |||
Basic (in dollars per share) | $ (0.42) | $ 2.26 | $ 0.33 |
Diluted (in dollars per share) | $ (0.42) | $ 2.19 | $ 0.32 |
Shares used in computing net income (loss) per share: | |||
Basic (shares) | 113,864 | 110,405 | 106,678 |
Diluted (shares) | 113,864 | 114,097 | 108,870 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (48,286) | $ 249,346 | $ 35,193 |
Other comprehensive income (loss), net of tax: | |||
Change in cumulative foreign currency translation adjustment | 43,204 | (32,676) | (26,049) |
Total other comprehensive income (loss), net of tax | 43,204 | (32,676) | (26,049) |
Total comprehensive income (loss) | $ (5,082) | $ 216,670 | $ 9,144 |
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 May. 03, 2015 | 104,131,817 | |||||
Beginning 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) | 3,401,033 | |||||
Issuance of shares pursuant to employee stock purchase plan and equity plans, net of tax withholdings | 7,061 | $ 4 | 7,057 | |||
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 | $ 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) | 3,737,832 | |||||
Issuance of shares pursuant to employee stock purchase plan and equity plans, net of tax withholdings | 16,890 | $ 4 | 16,886 | |||
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 | ||||
Equity component of senior convertible notes, net of allocated issuance costs | 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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | (48,286) | (48,286) | ||||
Other comprehensive loss, net | 43,204 | 43,204 | 43,204 | |||
Issuance of shares pursuant to equity plans, net of tax withholdings (in shares) | 3,146,591 | |||||
Issuance of shares pursuant to employee stock purchase plan and equity plans, net of tax withholdings | 1,499 | $ 3 | 1,496 | |||
Share-based compensation expense | 61,164 | 61,164 | ||||
Employer contribution in defined contribution retirement plan (in shares) | 146,944 | |||||
Employer contribution to defined contribution retirement plan | 3,331 | 3,331 | ||||
Ending balance (in shares) at Apr. 29, 2018 | 114,812,721 | |||||
Ending balance at Apr. 29, 2018 | $ 1,623,617 | $ 1,623,617 | $ 115 | $ 2,850,195 | $ (14,660) | $ (1,212,033) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Operating activities | |||
Net income (loss) | $ (48,286) | $ 249,346 | $ 35,193 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 98,769 | 87,016 | 85,264 |
Amortization | 6,680 | 8,203 | 9,416 |
Stock-based compensation expense | 63,120 | 52,598 | 47,508 |
Amortization of discount on held-to-maturity investments | (8,135) | (2,045) | 0 |
Equity in losses (earnings) of equity method investment | 0 | 250 | (1,200) |
(Gain) loss on sale or retirement of assets and asset disposal groups | 103 | 149 | (405) |
Impairment of long-lived assets | 2,233 | 0 | 1,901 |
Impairment of minority investments | 2,347 | 643 | 0 |
Amortization of discount on convertible debt | 30,834 | 16,935 | 9,604 |
Deferred tax expense (benefit) | 25,614 | (101,534) | (4,928) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 38,848 | (23,120) | (36,023) |
Inventories | 839 | (73,582) | (4,221) |
Other assets | (910) | (8,365) | 19,728 |
Accounts payable | 1,156 | (1,023) | 10,081 |
Accrued compensation | (21,995) | 18,436 | 11,166 |
Deferred revenue | (3,480) | (514) | 3,679 |
Other liabilities | (16,100) | 4,439 | (3,163) |
Net cash provided by operating activities | 171,637 | 227,832 | 183,600 |
Investing activities | |||
Additions to property, equipment and improvements | (221,482) | (140,106) | (118,825) |
Proceeds from sale of property and equipment and asset disposal groups | 0 | 504 | 844 |
Purchases of short-term investments | (1,765,687) | (1,032,474) | (261,179) |
Maturities of short-term investments | 1,866,062 | 321,178 | 290,542 |
Purchase of intangible assets | 0 | (1,885) | 0 |
Net cash used in investing activities | (121,107) | (852,783) | (88,618) |
Financing activities | |||
Repayments of term loans | 0 | (234) | (265) |
Proceeds from issuance of 0.50% Convertible Senior Notes due 2036, net of issuance costs | 0 | 569,302 | 0 |
Proceeds from issuance of shares under equity plans and employee stock purchase plan | 11,680 | 20,773 | 11,598 |
Shares repurchased for tax withholdings on vesting of restricted stock units | (10,181) | (3,883) | (4,537) |
Net cash provided by financing activities | 1,499 | 585,958 | 6,796 |
Net increase (decrease) in cash and cash equivalents | 52,029 | (38,993) | 101,778 |
Cash and cash equivalents at beginning of year | 260,228 | 299,221 | 197,443 |
Cash and cash equivalents at end of year | 312,257 | 260,228 | 299,221 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 4,170 | 1,298 | 1,314 |
Cash paid for taxes | $ 11,594 | $ 11,108 | $ 9,590 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Apr. 29, 2018 | Dec. 31, 2016 |
0.5% Convertible Senior Notes Due 2036 | ||
Interest rate | 0.50% | 0.50% |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Apr. 29, 2018 | |
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 calendar year. Each of fiscal 2018, 2017 and 2016 had 52 weeks, and fiscal 2019 will have 52 weeks. 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. 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. 29, 2018 | |
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 standard warranty period usually covers 12 months from the date of sale, although it can be for longer periods for certain products. 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 the Company. Accounts receivable from distributors are recognized and inventory is relieved when title to inventories transfers, typically upon shipment from the Company at which point it has 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 62% and 56% of total accounts receivable as of April 29, 2018 and April 30, 2017 , respectively. Two customers, Google and Flextronics, represented 15% and 11% respectively, of total accounts receivable as of April 29, 2018 . Two customers, Jabil and Flextronics, represented 12% and 11% , respectively, of total accounts receivable as of April 30, 2017 . Sales to the Company’s ten largest customers represented 59% , 56% and 56% of total revenues during fiscal 2018 , 2017 and 2016 , respectively. Two customers, Cisco Systems and Google, represented 14% and 11% , respectively, of total revenues during fiscal 2018. 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. 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 29, 2018 are the net assets of the Company’s operations located at its overseas facilities totaling approximately $689.7 million . Foreign Currency Translation and Transactions 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 (loss) for fiscal 2018 , 2017 and 2016 were $1.0 million , $539,000 and $(1.2) million , 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 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 identified and considered to be excess or obsolete is written down to its estimated net realizable value. 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 to ten years, except for buildings which are depreciated over 30 years . Land is carried at acquisition cost and not depreciated. Leased land is depreciated over the life of the lease. Management judgment is required in determining the estimated economic useful lives of our property, plant and equipment, which can materially impact the Company's depreciation expense. Accordingly, the Company evaluated the period over which it expects to recover the economic value of these assets. During the fourth quarter of fiscal 2018, based on considerations including asset replacement cycle, the Company revisited the useful life estimates of certain computer equipment, software, and building and leasehold fixtures. As a result, the Company determined that the useful lives of computer equipment be extended from three to five years, the useful lives of certain software be extended from five to ten years, the useful lives of leasehold improvements be extended from seven to ten years, and the useful lives of certain building fixtures be extended from 15 to 30 years. These assets are depreciated through cost of revenues and operating expenses. The Company accounted for this as a change in estimate that was applied prospectively, effective as of January 29, 2018. This change in depreciable lives did not have a material impact for the quarter or the year ended April 29, 2018, and will result in a reduction of $4.6 million and $2.6 million in depreciation expense during the fiscal 2019 and 2020, respectively. 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. 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. 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. During fiscal 2018 and 2016, the Company recorded charges of $2.2 million and $1.9 million , respectively, for the impairment of certain long-lived assets 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. 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, stock options, 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 stock options and 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, which is generally the vesting period. Forfeitures are accounted for as they occur rather than estimating the number of awards that are expected to ultimately vest. Income Taxes The Company computes the provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. The Company measures deferred tax assets and liabilities using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company periodically assesses the likelihood that it will be able to recover its deferred tax assets. If recovery is not likely, the Company must increase its provision for taxes by recording a valuation allowance against the deferred tax assets that the Company estimates will not ultimately be recoverable. The Company recognizes tax benefits from uncertain tax positions only if (based on the technical merits of the position) it is more likely than not that the tax positions will be sustained on examination by the tax authority. The Company's assumptions, judgments and estimates relative to the current provision for income taxes take into account current tax laws, the Company's interpretation of current tax laws and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. The Company has established reserves for income taxes to address potential exposures involving tax positions that could be challenged by tax authorities. Although the Company believes that its assumptions, judgments and estimates are reasonable, changes in tax laws or interpretation of tax laws and the resolution of any future tax audits could significantly impact the amounts provided for income taxes in the Company's consolidated financial statements. The Company's assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount and category of future taxable income, such as income from operations or capital gains income. Actual operating results and the underlying amount and category of income in future years could render current assumptions, judgments and estimates of recoverable net deferred taxes inaccurate, causing the Company's actual income tax obligations to differ from its estimates, thus materially impacting the Company's financial position and results of operations. The Company has recorded provisional estimates associated with the December 22, 2017 enactment of the U.S. Tax Cuts and Jobs Act ("TCJA"). The SEC has provided accounting and reporting guidance that allows the Company to report provisional amounts within a measurement period up to one year due to the complexities inherent in adopting the changes. The Company considers both the recognition of the transition tax and the remeasurement of deferred income taxes incomplete. New guidance from regulators, interpretation of the law, and refinement of the Company's estimates from ongoing analysis of data and tax positions may change the provisional amounts. For more information about TCJA impacts, see "Note 13. Income Taxes." Recent and Pending Adoption of New Accounting Standards 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, 2017, with early adoption permitted. 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 on April 30, 2018, 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 April 30, 2018, the Company will remove the deferred revenue (and corresponding deferred cost of sales) on sales to distributors through a cumulative adjustment to accumulated deficit. The Company expects that adoption will result in approximately net $8.0 million reduction of accumulated deficit with corresponding approximately $9.5 million reduction of deferred revenue, approximately $535,000 reduction of other non-current liabilities and approximately $2.1 million reduction of deferred tax assets. The Company substantially completed its assessment and noted that only minimal changes were required to policies, processes, and controls to support the standard's measurement and disclosure requirements. During fiscal 2018, the Company and certain licensees agreed to modify terms of some of the Company's out-licensing agreements by granting licensees cancellation rights to cease future payments in the event that licensees cease using the licensed technology. At the onset, these licensing agreements provided for a settlement and release of any prior claims and licensing of the Company’s technology over a future period. Prior to the modification there were no termination rights. The Company plans to utilize one of the practical expedients for adoption provided in this new accounting standard that allows the Company to reflect the aggregate effect of all modifications that have occurred before the beginning of the earliest period presented in accordance with this new accounting standard. Absent these modifications, the Company would have recognized approximately $24.4 million of cumulative effect of adoption of new accounting standard in the earliest period presented in accordance with this new accounting standard, in addition to amounts described above. The Company may provide similar cancellation terms in comparable licensing agreements that may be executed in the future. 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 above, 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. 29, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic net income (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) 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), 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 (loss) per share: Fiscal Years Ended (in thousands, except per share amounts) April 29, 2018 April 30, 2017 May 1, 2016 Numerator: Net income (loss) $ (48,286 ) $ 249,346 $ 35,193 Numerator for basic income (loss) per share $ (48,286 ) $ 249,346 $ 35,193 Numerator for diluted income (loss) per share $ (48,286 ) $ 249,346 $ 35,193 Denominator: Denominator for basic income (loss) per share 113,864 110,405 106,678 Effect of dilutive securities: Stock options and restricted stock units — 3,692 2,192 Dilutive potential common shares — 3,692 2,192 Denominator for diluted income (loss) per share 113,864 114,097 108,870 Net income (loss) per share: Basic $ (0.42 ) $ 2.26 $ 0.33 Diluted $ (0.42 ) $ 2.19 $ 0.32 The following table presents common shares related to potentially dilutive securities excluded from the calculation of diluted net income (loss) per share as their effect would have been anti-dilutive: Fiscal Years Ended (in thousands) April 29, 2018 April 30, 2017 May 1, 2016 Stock options and restricted stock units 4,545 207 3,069 0.50% Convertible Senior Notes due 2033 and 0.50% Convertible Senior Notes due 2036 are 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. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following tables reflect intangible assets as of April 29, 2018 and April 30, 2017 : April 29, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Purchased technology $ 107,759 $ (103,803 ) $ 3,956 Purchased trade name 1,172 (1,172 ) — Purchased customer relationships 21,344 (19,798 ) 1,546 Purchased internal use software and backlog 2,816 (2,816 ) — Purchased patents 4,505 (2,129 ) 2,376 Total $ 137,596 $ (129,718 ) $ 7,878 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 Estimated amortization expense for each of the next five fiscal years and thereafter as of April 29, 2018 is as follows: Year Amount (in thousands) 2019 $ 3,696 2020 2,224 2021 704 2022 306 2023 306 Beyond 2023 642 Total $ 7,878 |
Investments
Investments | 12 Months Ended |
Apr. 29, 2018 | |
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 29, 2018 and April 30, 2017 . 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, and are carried at amortized cost. The Company's investments in fixed income securities as of April 29, 2018 and April 30, 2017 were as follows: April 29, 2018 April 30, 2017 Gross Unrealized Gross Unrealized (in thousands) Amortized Cost Gains Losses Fair Value Amortized Cost Gains Losses Fair Value Commercial paper $ 548,010 $ — $ — $ 548,010 $ 571,592 $ — $ — $ 571,592 Certificates of deposit 336,828 — — 336,828 405,003 — — 405,003 Total $ 884,838 $ — $ — $ 884,838 $ 976,595 $ — $ — $ 976,595 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 2018, 2017 and 2016 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 29, 2018 and April 30, 2017 were as follows: April 29, 2018 April 30, 2017 (dollars in thousands) Number of Investments Carrying Value Number of Investments Carrying Value Cost method three $ 604 three $ 603 Equity method one (*) — one 2,559 Total $ 604 $ 3,162 (*) As of April 29, 2018 , the Company had a 19.9% ownership interest in this company. During the first quarter of fiscal 2018, the Company recorded a $2.3 million impairment loss (included in other income (expense) in the consolidated statement of operations) related to its equity method minority investment as a result of this investee's negative results of operations and cash flows. 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. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): As of April 29, 2018 April 30, 2017 Raw materials $ 84,441 $ 66,560 Work-in-process 186,160 173,302 Finished goods 77,926 91,526 Total inventories $ 348,527 $ 331,388 Including: inventory consigned to others $ 38,366 $ 40,363 |
Property, Equipment and Improve
Property, Equipment and Improvements, Net | 12 Months Ended |
Apr. 29, 2018 | |
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 29, 2018 April 30, 2017 Land and buildings $ 113,390 $ 97,857 Computer equipment 77,235 68,145 Office equipment, furniture and fixtures 6,604 5,723 Machinery and equipment 700,421 554,859 Leasehold property and improvements 52,135 44,298 Construction-in-progress 108,091 36,207 1,057,876 807,089 Less: Accumulated depreciation and amortization (537,027 ) (423,170 ) Property, equipment and improvements, net $ 520,849 $ 383,919 |
Debt
Debt | 12 Months Ended |
Apr. 29, 2018 | |
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 29, 2018 , the remaining debt discount amortization period was 44 months . The 2036 Notes consisted of the following: As of (in thousands) April 29, 2018 April 30, 2017 Liability component: Principal $ 575,000 $ 575,000 Unamortized debt discount (82,765 ) (103,022 ) Unamortized debt issuance costs (3,358 ) (4,281 ) Net carrying amount of the liability component $ 488,877 $ 467,697 Carrying amount of the equity component $ 109,881 $ 109,881 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 29, 2018 April 30, 2017 May 1, 2016 Contractual interest expense $ 2,875 $ 1,001 n/a Amortization of the debt discount 20,257 6,859 n/a Amortization of issuance costs 923 334 n/a Total interest cost $ 24,055 $ 8,194 n/a Effective interest rate on the liability component 4.85 % 4.85 % 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 29, 2018 , the remaining debt discount amortization period was 7 months . The 2033 Notes consisted of the following: As of (in thousands) April 29, 2018 April 30, 2017 Liability component: Principal $ 258,750 $ 258,750 Unamortized debt discount (7,086 ) (17,663 ) Unamortized debt issuance costs (386 ) (1,002 ) Net carrying amount of the liability component $ 251,278 $ 240,085 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 29, 2018 April 30, 2017 May 1, 2016 Contractual interest expense $ 1,294 $ 1,294 $ 1,294 Amortization of the debt discount 10,577 10,076 9,604 Amortization of issuance costs 616 616 616 Total interest cost $ 12,487 $ 11,986 $ 11,514 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. As explained above, the terms of the 2033 Notes include a provision that allows the holders to require the Company to redeem any of their notes on December 15, 2018. Accordingly, all $251.3 million of the net carrying amount of the liability component of the 2033 Notes outstanding as of April 29, 2018 was classified as a current liability as of that date. |
Commitments
Commitments | 12 Months Ended |
Apr. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments The Company’s future commitments at April 29, 2018 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 $ 36,883 $ 10,691 $ 13,433 $ 7,022 $ 5,737 Rent expense under the non-cancelable operating leases was approximately $9.9 million , $9.0 million and $9.4 million for the years ended April 29, 2018 , April 30, 2017 and May 1, 2016 , respectively. The Company subleases a portion of its facilities that it considers to be in excess of its requirements. Sublease income was $292,000 , $373,000 and $168,000 for the years ended April 29, 2018 , April 30, 2017 and May 1, 2016 , respectively. Certain leases have scheduled rent increases which have been included in the above table and recorded as rent expense on a straight-line basis. 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. 29, 2018 | |
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 29, 2018 and April 30, 2017 were as follows: April 29, 2018 April 30, 2017 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 $ 548,010 $ — $ 548,010 $ — $ 548,010 $ 571,592 $ — $ 571,592 $ — $ 571,592 Certificates of deposit $ 336,828 $ — $ 336,828 $ — $ 336,828 $ 405,003 $ — $ 405,003 $ — $ 405,003 2033 Notes $ 251,278 $ 256,001 $ — $ — $ 256,001 $ 240,085 $ 273,628 $ — $ — $ 273,628 2036 Notes $ 488,877 $ 520,016 $ — $ — $ 520,016 $ 467,697 $ 534,391 $ — $ — $ 534,391 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. 29, 2018 | |
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 29, 2018 and April 30, 2017 . Common Stock and Preferred Stock As of April 29, 2018 , 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 29, 2018 is as follows: Exercise of outstanding stock options 1,097,091 Vesting of restricted stock awards 5,954,755 Available for grant under employee stock incentive plan 6,298,340 Available for grant under employee stock purchase plan 2,417,407 Total 15,767,593 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 four or five years and have a maximum term of 10 years. RSUs generally vest over four years. As of April 29, 2018 and April 30, 2017 , no shares were subject to repurchase. Stock Options Number of Shares Weighted-Average Exercise Price Stock options outstanding as of April 30, 2017 581,172 $9.85 Stock options granted 740,000 $22.26 Stock options exercised (187,288 ) $12.79 Stock options canceled (36,793 ) $28.81 Stock options outstanding as of April 29, 2018 1,097,091 $17.08 Stock options outstanding and exercisable as of April 29, 2018 357,091 $6.36 The weighted-average grant-date fair value of options granted during fiscal 2018 was $9.89 . The total intrinsic value of stock options exercised during fiscal 2018, 2017 and 2016 was $1.7 million , $9.9 million and $3.3 million , respectively. The aggregate intrinsic value of stock options outstanding as of April 29, 2018 was $3.4 million . The aggregate intrinsic value of stock options outstanding and exercisable as of April 29, 2018 was $3.4 million . The weighted-average remaining contractual life of stock options outstanding as of April 29, 2018 was 6.9 years . The weighted-average remaining contractual life of stock options outstanding and exercisable as of April 29, 2018 was 1.1 years . As of April 29, 2018 , the Company had $6.8 million of unrecognized compensation expense related to stock option grants. These expenses are expected to be recognized over a weighted-average period of approximately 4.1 years . Restricted Stock Units Number of Shares Weighted-Average Grant-Date Fair Value RSUs unvested as of April 30, 2017 6,618,360 $19.28 RSUs granted 2,679,337 $25.65 RSUs vested (2,946,823 ) $18.99 RSUs forfeited (396,119 ) $21.63 RSUs unvested as of April 29, 2018 5,954,755 $21.96 The weighted-average grant-date fair value of RSUs granted during fiscal 2017 and 2016 was $19.77 and $19.02 , respectively. The aggregate intrinsic value of RSUs outstanding as of April 29, 2018 was $93.7 million . The total grant-date fair value of RSUs vested during fiscal 2018, 2017 and 2016 was $56.0 million , $42.0 million and $41.7 million , respectively. As of April 29, 2018 , the Company had $92.1 million of unrecognized compensation expense related to RSUs grants. These expenses are expected to be recognized over a weighted-average period of approximately 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 29, 2018 , April 30, 2017 and May 1, 2016 which was reflected in the Company’s operating results: Fiscal Years Ended (in thousands) April 29, 2018 April 30, 2017 May 1, 2016 Share-based compensation expense by caption: Cost of revenues $12,943 $11,409 $10,357 Research and development 22,767 20,425 18,245 Sales and marketing 7,619 7,170 6,667 General and administrative 17,835 10,875 9,974 Total $61,164 $49,879 $45,243 Share-based compensation expense by type of award: RSUs $56,965 $46,577 $42,162 Stock options 490 — — Employee stock purchase rights under ESPP 3,709 3,302 3,081 Total $61,164 $49,879 $45,243 Total share-based compensation cost capitalized as part of inventory was $3.9 million and $2.5 million as of April 29, 2018 and April 30, 2017 , respectively. The fair value of stock options and employee stock purchase rights under the ESPP granted in fiscal 2018, 2017 and 2016 was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: Fiscal Years Ended April 29, 2018 April 30, 2017 May 1, 2016 Stock Purchase Rights: Expected term (in years) 0.75 0.75 0.75 Volatility 56% - 57% 40% - 43% 32% - 54% Risk-free interest rate 1.48 - 1.70% 0.36 - 0.89% 0.11 - 0.70% Dividend yield — % — % — % Stock Options: Expected term (in years) 5.2 n/a n/a Volatility 47 % n/a n/a Risk-free interest rate 2.3 % n/a n/a Dividend yield — % n/a n/a The expected term of employee stock purchase rights is the average of the remaining purchase periods under each offering period. The expected term of stock options is the average term from the Company's historical stock option exercise experience. 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 terms. 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 2018, 2017 and 2016 was $4.43 , $5.34 and $2.79 , 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. During the third quarter of fiscal 2018, Jerry S. Rawls resigned as the Company's Chief Executive Officer and as Chairman of the Company's Board of Directors (the “Board”). Mr. Rawls remains a member of the Board. In connection with Mr. Rawls’ resignation, and in accordance with the terms of the related separation and release agreement between Mr. Rawls and the Company, Mr. Rawls received a lump sum cash severance payment of $300,000 , and the vesting of each of Mr. Rawls’ outstanding and unvested awards of restricted stock units granted by the Company was accelerated 100% . Accordingly, during the third quarter of fiscal 2018, the Company recorded approximately $7.5 million of compensation expense related to this acceleration. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Apr. 29, 2018 | |
Retirement Benefits [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 $18,500 for calendar 2018 and $18,000 for each calendar year 2017 and 2016. 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 146,944 shares for a total contribution of $3.2 million during the year ended April 29, 2018 . The Company’s expenses related to this plan were $3.3 million , $2.8 million and $2.4 million for the fiscal years ended April 29, 2018 , April 30, 2017 and May 1, 2016 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act ("TCJA") was enacted, containing significant changes to the U.S. tax law, including lowering the U.S. corporate income tax rate, implementing a territorial tax system, and imposing a one-time tax on deemed repatriation of earnings of foreign subsidiaries. The TCJA reduces the U.S. statutory corporate income tax rate from 35% to 21%, effective January 1, 2018. As a result of this rate reduction, the Company revalued its net deferred tax asset as of December 22, 2017, and recorded a reduction in its deferred tax assets and a corresponding deferred tax expense of approximately $30.3 million . For fiscal 2018, the Company's blended corporate income tax rate is 30.4% , which is based on the applicable tax rates before and after the TCJA enactment and the number of days in each period. The TCJA allows 100% expensing of cost of qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. The bonus depreciation percentage is phased down from 100% beginning in 2023 through 2026. The Company elected to claim the 100% bonus depreciation for the assets placed into service after September 27, 2017. The net impact of this provision is not material to the Company's consolidated financial position, results of operations and cash flows. The TCJA also implements a territorial tax system. In general, under the territorial tax system, the Company’s foreign earnings will no longer be subject to tax in the U.S. As part of transitioning to the territorial tax system, the TCJA includes a mandatory deemed repatriation of all undistributed foreign earnings that are subject to a U.S. income tax. As of December 31, 2017, the Company had approximately $123.0 million of undistributed earnings for certain non-U.S. subsidiaries that have been indefinitely reinvested outside the U.S. The mandatory deemed repatriation of these undistributed earnings resulted in a one-time deferred tax expense of approximately $19.1 million . This provisional estimate may be impacted by a number of additional considerations, including, but not limited to, the issuance of final regulations and the Company's ongoing analysis of the TCJA. The Company has historically asserted its intent to reinvest these earnings in foreign operations indefinitely and continues to do so. The Company does not intend to repatriate these earnings to fund its U.S. operations and, accordingly, it does not provide for the U.S. state income and foreign withholding tax on these earnings. While the TJCA provides for a territorial tax system, beginning in 2018, it also includes two new U.S. tax base erosion provisions - the global intangible low-taxed income ("GILTI") provision and the base-erosion and anti-abuse tax ("BEAT") provision. The GILTI provision requires the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The BEAT provision eliminates the deduction of certain base-erosion payments made to related foreign corporations and imposes a minimum tax if greater than regular tax. The Company expects that the BEAT provision may result in significant U.S. tax in future periods. In addition, the Company intends to account for the GILTI tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the fiscal 2018. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the TCJA. The Company has recognized the provisional tax impact related to deemed repatriated earnings and the revaluation of deferred tax assets and liabilities to the extent needed and included these amounts in its consolidated financial statements for fiscal 2018. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the TCJA. The components of income tax expense (benefit) consist of the following (in thousands): Fiscal Years Ended April 29, 2018 April 30, 2017 May 1, 2016 Current: Federal $ — $ — $ — State 189 532 (9 ) Foreign 7,480 14,850 4,575 7,669 15,382 4,566 Deferred: Federal 29,532 (102,305 ) — State (999 ) (1,008 ) — Foreign (2,919 ) 1,779 (4,928 ) 25,614 (101,534 ) (4,928 ) Provision for (benefit from) income taxes $ 33,283 $ (86,152 ) $ (362 ) Income (loss) before income taxes consists of the following (in thousands): Fiscal Years Ended April 29, 2018 April 30, 2017 May 1, 2016 U.S. $ (72,730 ) $ 96,648 $ (2,579 ) Foreign 57,727 66,546 37,410 $ (15,003 ) $ 163,194 $ 34,831 A reconciliation of the income tax provision at the federal statutory rate and the effective rate is as follows: Fiscal Years Ended April 29, 2018 April 30, 2017 May 1, 2016 Expected income tax provision (benefit) at U.S. federal statutory rate 30.4 % 35.0 % 35.0 % Foreign rate differential 100.6 (5.0 ) (40.5 ) Share-based compensation expense (5.3 ) 0.7 14.1 Valuation allowance (31.7 ) (83.0 ) (2.5 ) Other permanent adjustments (32.4 ) 0.7 4.4 Research and development credits 43.2 (2.3 ) (12.6 ) Impact of TCJA - rate reduction (201.8 ) — — Impact of TCJA - transition tax (127.1 ) — — Other 2.4 1.0 1.1 (221.7 )% (52.9 )% (1.0 )% The components of deferred taxes consist of the following (in thousands): As of April 29, 2018 April 30, 2017 Deferred tax assets: Inventory adjustments $ 9,870 $ 9,161 Accruals and reserves 4,827 12,731 Tax credits 49,657 38,092 Net operating loss carryforwards 55,926 106,297 Gain/loss on investments under equity or cost method 364 814 Depreciation and amortization 16,524 8,462 Purchase accounting for intangible assets 1,284 2,707 Capital loss carryforward 2,246 7,183 Acquired intangibles 1,497 4,343 Stock compensation 5,432 9,345 Total deferred tax assets 147,627 199,135 Valuation allowance (30,213 ) (30,804 ) Net deferred tax assets 117,414 168,331 Deferred tax liabilities: Acquired intangibles (1,493 ) (2,360 ) Debt discount (20,006 ) (43,796 ) Depreciation and amortization (15,590 ) (16,233 ) Total deferred tax liabilities (37,089 ) (62,389 ) Total net deferred tax assets (liabilities) $ 80,325 $ 105,942 Reported as: Deferred tax assets $ 80,850 $ 107,225 Deferred tax liabilities (525 ) (1,283 ) Total net deferred tax assets (liabilities) $ 80,325 $ 105,942 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, which existed at that time, 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. As of April 29, 2018 , the valuation allowance comprises approximately 20% of total deferred tax assets and 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 decreased from the prior year by approximately $(0.6) million , $(132.1) million and $(1.5) million in fiscal 2018 , 2017 and 2016 , respectively. As of April 29, 2018 , the Company had federal, state and foreign net operating loss carryforwards of approximately $236.5 million , $13.8 million and $22.9 million , respectively, and federal and state tax credit carryforwards of approximately $38.8 million and $31.4 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 2018 , the aggregate dollar and per share effect of the tax holiday was $6.8 million and $0.06 per share, respectively. A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows (in thousands): Fiscal Years Ended April 29, 2018 April 30, 2017 May 1, 2016 Beginning balance $ 21,458 $ 16,411 $ 14,653 Additions for tax positions related to current year 1,803 1,675 1,331 Additions for tax positions related to prior years 94 3,372 902 Reductions for tax positions related to prior years (lapse of statute of limitations) (2,777 ) — (475 ) Ending balance $ 20,578 $ 21,458 $ 16,411 The reduction of the Company’s unrecognized tax benefits in fiscal 2018 is primarily related to a conclusion of a tax audit in Israel covering fiscal years through 2015. Excluding the effects of recorded valuation allowances for deferred tax assets, $17.7 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 29, 2018 . The Company records interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As of April 29, 2018 and April 30, 2017 , the Company had accrued $652,000 and $822,000 , 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 Sweden subsidiary is under audit for tax year 2016 and 2017. |
Segments and Geography Informat
Segments and Geography Information | 12 Months Ended |
Apr. 29, 2018 | |
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 29, 2018 April 30, 2017 May 1, 2016 United States $ 482,601 $ 476,763 $ 408,700 China 270,040 358,561 307,327 Malaysia 122,548 122,699 123,057 Rest of the world 441,294 491,280 424,082 Totals $ 1,316,483 $ 1,449,303 $ 1,263,166 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 29, 2018 April 30, 2017 United States $ 213,745 $ 133,426 China 252,179 205,423 Malaysia 52,417 49,779 Rest of the world 45,850 36,105 $ 564,191 $ 424,733 The increase in long-lived assets was primarily due to the additions of property, improvements and manufacturing equipment to the Company's manufacturing facilities in Sherman, Texas and China. |
Legal Matters
Legal Matters | 12 Months Ended |
Apr. 29, 2018 | |
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 former Chief Executive Officer and former 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. On December 5, 2017, the District Court issued an order denying class certification. On February 1, 2018, the plaintiff filed a petition with the Ninth Circuit Court of Appeal for permission to appeal the denial of class certification. 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 at the time of the claim and certain officers, including Jerry Rawls, the Company's former Chief Executive Officer and former 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. On August 7, 2017, the plaintiff in the federal case filed an amended complaint. On March 9, 2018, the Company filed a motion to dismiss the amended federal complaint. 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. 29, 2018 | |
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 29, 2018 . 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. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Financial Information by Quarter (Unaudited) | Financial Information by Quarter (Unaudited) Three Months Ended April 29, 2018 January 28, 2018 (1) October 29, 2017 July 30, 2017 April 30, 2017 (2) January 29, 2017 October 30, 2016 July 31, 2016 (In thousands, except per share data) Revenues $310,069 $332,403 $332,205 $341,806 $357,527 $380,588 $369,863 $341,325 Gross profit $62,594 $88,068 $96,205 $115,299 $125,164 $136,637 $133,681 $108,165 Income (loss) from operations $(26,736) $(6,129) $9,467 $29,912 $40,841 $54,906 $52,828 $28,311 Net income (loss) $(18,343) $(55,659) $5,857 $19,859 $130,245 $46,386 $48,766 $23,949 Net income (loss) per share: Basic $(0.16) $(0.49) $0.05 $0.18 $1.17 $0.42 $0.44 $0.22 Diluted $(0.16) $(0.49) $0.05 $0.17 $1.13 $0.40 $0.43 $0.22 Shares used in computing net income (loss) per share: Basic 114,742 114,209 113,960 112,544 111,438 110,956 110,407 108,820 Diluted 114,742 114,209 115,443 115,698 115,248 114,873 113,192 110,821 (1) Net loss in the third quarter of fiscal 2018 includes a $49.4 million deferred income tax expense as a result of the TCJA. (2) Net income in the fourth quarter of fiscal 2017 includes a $103.3 million release of valuation allowance on U.S. deferred tax assets. |
Schedule II - Consolidated Valu
Schedule II - Consolidated Valuation and Qualifying Accounts | 12 Months Ended |
Apr. 29, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Consolidated Valuation and Qualifying Accounts | Schedule II - Consolidated Valuation and Qualifying Accounts Allowance for Doubtful Accounts (in thousands) Fiscal Year Ended: Balance at Beginning of Period Additions Charged to (Recoveries Offset against) Costs and Expenses, Net Write-Offs Balance at End of Period April 29, 2018 $756 $(266) $(221) $269 April 30, 2017 $727 $33 $(4) $756 May 1, 2016 $1,136 $(403) $(6) $727 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 29, 2018 | |
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 calendar year. Each of fiscal 2018, 2017 and 2016 had 52 weeks, and fiscal 2019 will have 52 weeks. |
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. |
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. |
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 standard warranty period usually covers 12 months from the date of sale, although it can be for longer periods for certain products. 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 the Company. Accounts receivable from distributors are recognized and inventory is relieved when title to inventories transfers, typically upon shipment from the Company at which point it has 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 62% and 56% of total accounts receivable as of April 29, 2018 and April 30, 2017 , respectively. Two customers, Google and Flextronics, represented 15% and 11% respectively, of total accounts receivable as of April 29, 2018 . Two customers, Jabil and Flextronics, represented 12% and 11% , respectively, of total accounts receivable as of April 30, 2017 . Sales to the Company’s ten largest customers represented 59% , 56% and 56% of total revenues during fiscal 2018 , 2017 and 2016 , respectively. Two customers, Cisco Systems and Google, represented 14% and 11% , respectively, of total revenues during fiscal 2018. 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. 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 and Transactions | 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 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 identified and considered to be excess or obsolete is written down to its estimated net realizable value. |
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 to ten years, except for buildings which are depreciated over 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. |
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. 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. |
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, stock options, 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 stock options and 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, which is generally the vesting period. Forfeitures are accounted for as they occur rather than estimating the number of awards that are expected to ultimately vest. |
Income Taxes | The Company computes the provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. The Company measures deferred tax assets and liabilities using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company periodically assesses the likelihood that it will be able to recover its deferred tax assets. If recovery is not likely, the Company must increase its provision for taxes by recording a valuation allowance against the deferred tax assets that the Company estimates will not ultimately be recoverable. The Company recognizes tax benefits from uncertain tax positions only if (based on the technical merits of the position) it is more likely than not that the tax positions will be sustained on examination by the tax authority. The Company's assumptions, judgments and estimates relative to the current provision for income taxes take into account current tax laws, the Company's interpretation of current tax laws and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. The Company has established reserves for income taxes to address potential exposures involving tax positions that could be challenged by tax authorities. Although the Company believes that its assumptions, judgments and estimates are reasonable, changes in tax laws or interpretation of tax laws and the resolution of any future tax audits could significantly impact the amounts provided for income taxes in the Company's consolidated financial statements. The Company's assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount and category of future taxable income, such as income from operations or capital gains income. Actual operating results and the underlying amount and category of income in future years could render current assumptions, judgments and estimates of recoverable net deferred taxes inaccurate, causing the Company's actual income tax obligations to differ from its estimates, thus materially impacting the Company's financial position and results of operations. The Company has recorded provisional estimates associated with the December 22, 2017 enactment of the U.S. Tax Cuts and Jobs Act ("TCJA"). The SEC has provided accounting and reporting guidance that allows the Company to report provisional amounts within a measurement period up to one year due to the complexities inherent in adopting the changes. The Company considers both the recognition of the transition tax and the remeasurement of deferred income taxes incomplete. New guidance from regulators, interpretation of the law, and refinement of the Company's estimates from ongoing analysis of data and tax positions may change the provisional amounts. |
Recent and Pending Adoption of New Accounting Standards | 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, 2017, with early adoption permitted. 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 on April 30, 2018, 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 April 30, 2018, the Company will remove the deferred revenue (and corresponding deferred cost of sales) on sales to distributors through a cumulative adjustment to accumulated deficit. The Company expects that adoption will result in approximately net $8.0 million reduction of accumulated deficit with corresponding approximately $9.5 million reduction of deferred revenue, approximately $535,000 reduction of other non-current liabilities and approximately $2.1 million reduction of deferred tax assets. The Company substantially completed its assessment and noted that only minimal changes were required to policies, processes, and controls to support the standard's measurement and disclosure requirements. During fiscal 2018, the Company and certain licensees agreed to modify terms of some of the Company's out-licensing agreements by granting licensees cancellation rights to cease future payments in the event that licensees cease using the licensed technology. At the onset, these licensing agreements provided for a settlement and release of any prior claims and licensing of the Company’s technology over a future period. Prior to the modification there were no termination rights. The Company plans to utilize one of the practical expedients for adoption provided in this new accounting standard that allows the Company to reflect the aggregate effect of all modifications that have occurred before the beginning of the earliest period presented in accordance with this new accounting standard. Absent these modifications, the Company would have recognized approximately $24.4 million of cumulative effect of adoption of new accounting standard in the earliest period presented in accordance with this new accounting standard, in addition to amounts described above. The Company may provide similar cancellation terms in comparable licensing agreements that may be executed in the future. 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 above, 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 (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) 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), 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
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 (loss) per share: Fiscal Years Ended (in thousands, except per share amounts) April 29, 2018 April 30, 2017 May 1, 2016 Numerator: Net income (loss) $ (48,286 ) $ 249,346 $ 35,193 Numerator for basic income (loss) per share $ (48,286 ) $ 249,346 $ 35,193 Numerator for diluted income (loss) per share $ (48,286 ) $ 249,346 $ 35,193 Denominator: Denominator for basic income (loss) per share 113,864 110,405 106,678 Effect of dilutive securities: Stock options and restricted stock units — 3,692 2,192 Dilutive potential common shares — 3,692 2,192 Denominator for diluted income (loss) per share 113,864 114,097 108,870 Net income (loss) per share: Basic $ (0.42 ) $ 2.26 $ 0.33 Diluted $ (0.42 ) $ 2.19 $ 0.32 |
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 (loss) per share as their effect would have been anti-dilutive: Fiscal Years Ended (in thousands) April 29, 2018 April 30, 2017 May 1, 2016 Stock options and restricted stock units 4,545 207 3,069 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following tables reflect intangible assets as of April 29, 2018 and April 30, 2017 : April 29, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Purchased technology $ 107,759 $ (103,803 ) $ 3,956 Purchased trade name 1,172 (1,172 ) — Purchased customer relationships 21,344 (19,798 ) 1,546 Purchased internal use software and backlog 2,816 (2,816 ) — Purchased patents 4,505 (2,129 ) 2,376 Total $ 137,596 $ (129,718 ) $ 7,878 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 |
Schedule of Expected Future Amortization Expense | Estimated amortization expense for each of the next five fiscal years and thereafter as of April 29, 2018 is as follows: Year Amount (in thousands) 2019 $ 3,696 2020 2,224 2021 704 2022 306 2023 306 Beyond 2023 642 Total $ 7,878 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments in Fixed Income Securities | The Company's investments in fixed income securities as of April 29, 2018 and April 30, 2017 were as follows: April 29, 2018 April 30, 2017 Gross Unrealized Gross Unrealized (in thousands) Amortized Cost Gains Losses Fair Value Amortized Cost Gains Losses Fair Value Commercial paper $ 548,010 $ — $ — $ 548,010 $ 571,592 $ — $ — $ 571,592 Certificates of deposit 336,828 — — 336,828 405,003 — — 405,003 Total $ 884,838 $ — $ — $ 884,838 $ 976,595 $ — $ — $ 976,595 |
Schedule of Minority Investments | The Company's minority investments as of April 29, 2018 and April 30, 2017 were as follows: April 29, 2018 April 30, 2017 (dollars in thousands) Number of Investments Carrying Value Number of Investments Carrying Value Cost method three $ 604 three $ 603 Equity method one (*) — one 2,559 Total $ 604 $ 3,162 (*) As of April 29, 2018 , the Company had a 19.9% ownership interest in this company. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following (in thousands): As of April 29, 2018 April 30, 2017 Raw materials $ 84,441 $ 66,560 Work-in-process 186,160 173,302 Finished goods 77,926 91,526 Total inventories $ 348,527 $ 331,388 Including: inventory consigned to others $ 38,366 $ 40,363 |
Property, Equipment and Impro32
Property, Equipment and Improvements, Net (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Improvements | Property, equipment and improvements consist of the following (in thousands): As of April 29, 2018 April 30, 2017 Land and buildings $ 113,390 $ 97,857 Computer equipment 77,235 68,145 Office equipment, furniture and fixtures 6,604 5,723 Machinery and equipment 700,421 554,859 Leasehold property and improvements 52,135 44,298 Construction-in-progress 108,091 36,207 1,057,876 807,089 Less: Accumulated depreciation and amortization (537,027 ) (423,170 ) Property, equipment and improvements, net $ 520,849 $ 383,919 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Convertible Debt | The 2033 Notes consisted of the following: As of (in thousands) April 29, 2018 April 30, 2017 Liability component: Principal $ 258,750 $ 258,750 Unamortized debt discount (7,086 ) (17,663 ) Unamortized debt issuance costs (386 ) (1,002 ) Net carrying amount of the liability component $ 251,278 $ 240,085 Carrying amount of the equity component $ 49,648 $ 49,648 The 2036 Notes consisted of the following: As of (in thousands) April 29, 2018 April 30, 2017 Liability component: Principal $ 575,000 $ 575,000 Unamortized debt discount (82,765 ) (103,022 ) Unamortized debt issuance costs (3,358 ) (4,281 ) Net carrying amount of the liability component $ 488,877 $ 467,697 Carrying amount of the equity component $ 109,881 $ 109,881 |
Summary of Interest Expense | The following table sets forth interest expense information related to the 2036 Notes: Fiscal Years Ended (in thousands, except percentages) April 29, 2018 April 30, 2017 May 1, 2016 Contractual interest expense $ 2,875 $ 1,001 n/a Amortization of the debt discount 20,257 6,859 n/a Amortization of issuance costs 923 334 n/a Total interest cost $ 24,055 $ 8,194 n/a Effective interest rate on the liability component 4.85 % 4.85 % n/a The following table sets forth interest expense information related to the 2033 Notes: Fiscal Years Ended (in thousands, except percentages) April 29, 2018 April 30, 2017 May 1, 2016 Contractual interest expense $ 1,294 $ 1,294 $ 1,294 Amortization of the debt discount 10,577 10,076 9,604 Amortization of issuance costs 616 616 616 Total interest cost $ 12,487 $ 11,986 $ 11,514 Effective interest rate on the liability component 4.87 % 4.87 % 4.87 % |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company’s future commitments at April 29, 2018 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 $ 36,883 $ 10,691 $ 13,433 $ 7,022 $ 5,737 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
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 29, 2018 and April 30, 2017 were as follows: April 29, 2018 April 30, 2017 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 $ 548,010 $ — $ 548,010 $ — $ 548,010 $ 571,592 $ — $ 571,592 $ — $ 571,592 Certificates of deposit $ 336,828 $ — $ 336,828 $ — $ 336,828 $ 405,003 $ — $ 405,003 $ — $ 405,003 2033 Notes $ 251,278 $ 256,001 $ — $ — $ 256,001 $ 240,085 $ 273,628 $ — $ — $ 273,628 2036 Notes $ 488,877 $ 520,016 $ — $ — $ 520,016 $ 467,697 $ 534,391 $ — $ — $ 534,391 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
Equity [Abstract] | |
Schedule of Common Stock Subject to Future Issuance | Common stock subject to future issuance as of April 29, 2018 is as follows: Exercise of outstanding stock options 1,097,091 Vesting of restricted stock awards 5,954,755 Available for grant under employee stock incentive plan 6,298,340 Available for grant under employee stock purchase plan 2,417,407 Total 15,767,593 |
Schedule of Stock Options | Stock Options Number of Shares Weighted-Average Exercise Price Stock options outstanding as of April 30, 2017 581,172 $9.85 Stock options granted 740,000 $22.26 Stock options exercised (187,288 ) $12.79 Stock options canceled (36,793 ) $28.81 Stock options outstanding as of April 29, 2018 1,097,091 $17.08 Stock options outstanding and exercisable as of April 29, 2018 357,091 $6.36 |
Schedule of Restricted Stock Units | Restricted Stock Units Number of Shares Weighted-Average Grant-Date Fair Value RSUs unvested as of April 30, 2017 6,618,360 $19.28 RSUs granted 2,679,337 $25.65 RSUs vested (2,946,823 ) $18.99 RSUs forfeited (396,119 ) $21.63 RSUs unvested as of April 29, 2018 5,954,755 $21.96 |
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 29, 2018 , April 30, 2017 and May 1, 2016 which was reflected in the Company’s operating results: Fiscal Years Ended (in thousands) April 29, 2018 April 30, 2017 May 1, 2016 Share-based compensation expense by caption: Cost of revenues $12,943 $11,409 $10,357 Research and development 22,767 20,425 18,245 Sales and marketing 7,619 7,170 6,667 General and administrative 17,835 10,875 9,974 Total $61,164 $49,879 $45,243 Share-based compensation expense by type of award: RSUs $56,965 $46,577 $42,162 Stock options 490 — — Employee stock purchase rights under ESPP 3,709 3,302 3,081 Total $61,164 $49,879 $45,243 |
Schedule of Employee Stock Purchase Plan Valuation Assumptions | The fair value of stock options and employee stock purchase rights under the ESPP granted in fiscal 2018, 2017 and 2016 was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: Fiscal Years Ended April 29, 2018 April 30, 2017 May 1, 2016 Stock Purchase Rights: Expected term (in years) 0.75 0.75 0.75 Volatility 56% - 57% 40% - 43% 32% - 54% Risk-free interest rate 1.48 - 1.70% 0.36 - 0.89% 0.11 - 0.70% Dividend yield — % — % — % Stock Options: Expected term (in years) 5.2 n/a n/a Volatility 47 % n/a n/a Risk-free interest rate 2.3 % n/a n/a Dividend yield — % n/a n/a |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
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 29, 2018 April 30, 2017 May 1, 2016 Current: Federal $ — $ — $ — State 189 532 (9 ) Foreign 7,480 14,850 4,575 7,669 15,382 4,566 Deferred: Federal 29,532 (102,305 ) — State (999 ) (1,008 ) — Foreign (2,919 ) 1,779 (4,928 ) 25,614 (101,534 ) (4,928 ) Provision for (benefit from) income taxes $ 33,283 $ (86,152 ) $ (362 ) Income (loss) before income taxes consists of the following (in thousands): Fiscal Years Ended April 29, 2018 April 30, 2017 May 1, 2016 U.S. $ (72,730 ) $ 96,648 $ (2,579 ) Foreign 57,727 66,546 37,410 $ (15,003 ) $ 163,194 $ 34,831 |
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 29, 2018 April 30, 2017 May 1, 2016 Expected income tax provision (benefit) at U.S. federal statutory rate 30.4 % 35.0 % 35.0 % Foreign rate differential 100.6 (5.0 ) (40.5 ) Share-based compensation expense (5.3 ) 0.7 14.1 Valuation allowance (31.7 ) (83.0 ) (2.5 ) Other permanent adjustments (32.4 ) 0.7 4.4 Research and development credits 43.2 (2.3 ) (12.6 ) Impact of TCJA - rate reduction (201.8 ) — — Impact of TCJA - transition tax (127.1 ) — — Other 2.4 1.0 1.1 (221.7 )% (52.9 )% (1.0 )% |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred taxes consist of the following (in thousands): As of April 29, 2018 April 30, 2017 Deferred tax assets: Inventory adjustments $ 9,870 $ 9,161 Accruals and reserves 4,827 12,731 Tax credits 49,657 38,092 Net operating loss carryforwards 55,926 106,297 Gain/loss on investments under equity or cost method 364 814 Depreciation and amortization 16,524 8,462 Purchase accounting for intangible assets 1,284 2,707 Capital loss carryforward 2,246 7,183 Acquired intangibles 1,497 4,343 Stock compensation 5,432 9,345 Total deferred tax assets 147,627 199,135 Valuation allowance (30,213 ) (30,804 ) Net deferred tax assets 117,414 168,331 Deferred tax liabilities: Acquired intangibles (1,493 ) (2,360 ) Debt discount (20,006 ) (43,796 ) Depreciation and amortization (15,590 ) (16,233 ) Total deferred tax liabilities (37,089 ) (62,389 ) Total net deferred tax assets (liabilities) $ 80,325 $ 105,942 Reported as: Deferred tax assets $ 80,850 $ 107,225 Deferred tax liabilities (525 ) (1,283 ) Total net deferred tax assets (liabilities) $ 80,325 $ 105,942 |
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 29, 2018 April 30, 2017 May 1, 2016 Beginning balance $ 21,458 $ 16,411 $ 14,653 Additions for tax positions related to current year 1,803 1,675 1,331 Additions for tax positions related to prior years 94 3,372 902 Reductions for tax positions related to prior years (lapse of statute of limitations) (2,777 ) — (475 ) Ending balance $ 20,578 $ 21,458 $ 16,411 |
Segments and Geography Inform38
Segments and Geography Information (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
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 29, 2018 April 30, 2017 May 1, 2016 United States $ 482,601 $ 476,763 $ 408,700 China 270,040 358,561 307,327 Malaysia 122,548 122,699 123,057 Rest of the world 441,294 491,280 424,082 Totals $ 1,316,483 $ 1,449,303 $ 1,263,166 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 29, 2018 April 30, 2017 United States $ 213,745 $ 133,426 China 252,179 205,423 Malaysia 52,417 49,779 Rest of the world 45,850 36,105 $ 564,191 $ 424,733 |
Financial Information by Quar39
Financial Information by Quarter (Unaudited) (Tables) | 12 Months Ended |
Apr. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Three Months Ended April 29, 2018 January 28, 2018 (1) October 29, 2017 July 30, 2017 April 30, 2017 (2) January 29, 2017 October 30, 2016 July 31, 2016 (In thousands, except per share data) Revenues $310,069 $332,403 $332,205 $341,806 $357,527 $380,588 $369,863 $341,325 Gross profit $62,594 $88,068 $96,205 $115,299 $125,164 $136,637 $133,681 $108,165 Income (loss) from operations $(26,736) $(6,129) $9,467 $29,912 $40,841 $54,906 $52,828 $28,311 Net income (loss) $(18,343) $(55,659) $5,857 $19,859 $130,245 $46,386 $48,766 $23,949 Net income (loss) per share: Basic $(0.16) $(0.49) $0.05 $0.18 $1.17 $0.42 $0.44 $0.22 Diluted $(0.16) $(0.49) $0.05 $0.17 $1.13 $0.40 $0.43 $0.22 Shares used in computing net income (loss) per share: Basic 114,742 114,209 113,960 112,544 111,438 110,956 110,407 108,820 Diluted 114,742 114,209 115,443 115,698 115,248 114,873 113,192 110,821 (1) Net loss in the third quarter of fiscal 2018 includes a $49.4 million deferred income tax expense as a result of the TCJA. (2) Net income in the fourth quarter of fiscal 2017 includes a $103.3 million release of valuation allowance on U.S. deferred tax assets. |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Segment Reporting and Concentration Risk (Details) $ in Millions | 12 Months Ended | ||
Apr. 29, 2018segment | Apr. 30, 2017USD ($) | May 01, 2016 | |
Accounting Policies [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Concentration Risk [Line Items] | |||
Warranty period | 12 months | ||
Net assets located overseas | $ | $ 689.7 | ||
Customer Concentration Risk | Accounts Receivable | 10 Largest Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 62.00% | 56.00% | |
Customer Concentration Risk | Accounts Receivable | Google | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 15.00% | ||
Customer Concentration Risk | Accounts Receivable | Flextronics | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 11.00% | 11.00% | |
Customer Concentration Risk | Accounts Receivable | Jabil | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 12.00% | ||
Customer Concentration Risk | Revenues | 10 Largest Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 59.00% | 56.00% | 56.00% |
Customer Concentration Risk | Revenues | Google | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 11.00% | ||
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) | 14.00% | 12.00% | 11.00% |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Foreign Currency Translation and PPE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 29, 2018 | Jan. 28, 2018 | Apr. 26, 2020 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Accounting Policies [Abstract] | |||||||
Gains (Losses) on foreign currency transactions | $ 1,000 | $ 539 | $ (1,200) | ||||
Property, Plant and Equipment [Line Items] | |||||||
Depreciation | $ 98,769 | $ 87,016 | $ 85,264 | ||||
Forecast | Service Life | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Depreciation | $ 2,600 | $ 4,600 | |||||
Computer equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life (property, equipment and improvements) | 3 years | ||||||
Computer equipment | Service Life | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life (property, equipment and improvements) | 5 years | ||||||
Certain software | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life (property, equipment and improvements) | 5 years | ||||||
Certain software | Service Life | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life (property, equipment and improvements) | 10 years | ||||||
Leasehold property and improvements | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life (property, equipment and improvements) | 7 years | ||||||
Leasehold property and improvements | Service Life | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life (property, equipment and improvements) | 10 years | ||||||
Building fixtures | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life (property, equipment and improvements) | 15 years | ||||||
Building fixtures | Service Life | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life (property, equipment and improvements) | 30 years | ||||||
Minimum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life (property, equipment and improvements) | 3 years | ||||||
Maximum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life (property, equipment and improvements) | 10 years | ||||||
Maximum | Buildings | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Estimated useful life (property, equipment and improvements) | 30 years |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Goodwill, Intangible Assets and Impairment of Long-Lived Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jul. 31, 2016 | Apr. 29, 2018 | |
Finite-Lived Intangible Assets | ||
Impairment of long-lived assets | $ 1.9 | $ 2.2 |
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 Accoun43
Summary of Significant Accounting Policies - Recent and Pending Adoption of New Accounting Standards (Details) - USD ($) $ in Thousands | Apr. 30, 2018 | Apr. 29, 2018 | Apr. 30, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reduction of accumulated deficit | $ (1,212,033) | $ (1,163,747) | |
Deferred revenue | 9,535 | 13,015 | |
Other non-current liabilities | 12,368 | 17,594 | |
Deferred tax assets | $ 80,850 | $ 107,225 | |
Accounting Standards Update 2014-09 | Subsequent Event | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adoption of new accounting standard | $ 24,400 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Subsequent Event | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reduction of accumulated deficit | 8,000 | ||
Deferred revenue | (9,500) | ||
Other non-current liabilities | (535) | ||
Deferred tax assets | $ (2,100) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | Apr. 29, 2018 | Dec. 31, 2016 | Dec. 31, 2013 |
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. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 30, 2016 | Jul. 31, 2016 | Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Numerator: | |||||||||||
Net income (loss) attributable to Finisar Corporation/Numerator for basic income (loss) per share | $ (18,343) | $ (55,659) | $ 5,857 | $ 19,859 | $ 130,245 | $ 46,386 | $ 48,766 | $ 23,949 | $ (48,286) | $ 249,346 | $ 35,193 |
Numerator for diluted income (loss) per share | $ (48,286) | $ 249,346 | $ 35,193 | ||||||||
Denominator: | |||||||||||
Denominator for basic income (loss) per share - weighted average shares (shares) | 114,742 | 114,209 | 113,960 | 112,544 | 111,438 | 110,956 | 110,407 | 108,820 | 113,864 | 110,405 | 106,678 |
Effect of dilutive securities: | |||||||||||
Stock options and restricted stock units (shares) | 0 | 3,692 | 2,192 | ||||||||
Dilutive potential common shares (shares) | 0 | 3,692 | 2,192 | ||||||||
Denominator for diluted income (loss) per share (shares) | 114,742 | 114,209 | 115,443 | 115,698 | 115,248 | 114,873 | 113,192 | 110,821 | 113,864 | 114,097 | 108,870 |
Net income (loss) per share: | |||||||||||
Basic (in dollars per share) | $ (0.16) | $ (0.49) | $ 0.05 | $ 0.18 | $ 1.17 | $ 0.42 | $ 0.44 | $ 0.22 | $ (0.42) | $ 2.26 | $ 0.33 |
Diluted (in dollars per share) | $ (0.16) | $ (0.49) | $ 0.05 | $ 0.17 | $ 1.13 | $ 0.40 | $ 0.43 | $ 0.22 | $ (0.42) | $ 2.19 | $ 0.32 |
Earnings Per Share - Schedule46
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. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | Dec. 31, 2016 | Dec. 31, 2013 | |
0.5% Convertible Senior Notes Due 2033 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||||
Interest rate | 0.50% | 0.50% | |||
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) | 4,545 | 207 | 3,069 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 29, 2018 | Apr. 30, 2017 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 137,596 | $ 137,596 |
Accumulated Amortization | (129,718) | (124,577) |
Total | 7,878 | 13,019 |
Purchased technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 107,759 | 107,759 |
Accumulated Amortization | (103,803) | (101,367) |
Total | 3,956 | 6,392 |
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 | (19,798) | (17,752) |
Total | 1,546 | 3,592 |
Purchased internal use software and backlog | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 2,816 | 2,816 |
Accumulated Amortization | (2,816) | (2,643) |
Total | 0 | 173 |
Purchased patents | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 4,505 | 4,505 |
Accumulated Amortization | (2,129) | (1,643) |
Total | $ 2,376 | $ 2,862 |
Intangible Assets - Schedule 48
Intangible Assets - Schedule of Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Apr. 29, 2018 | Apr. 30, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,019 | $ 3,696 | |
2,020 | 2,224 | |
2,021 | 704 | |
2,022 | 306 | |
2,023 | 306 | |
Beyond 2,023 | 642 | |
Total | $ 7,878 | $ 13,019 |
Investments - Fixed Income Secu
Investments - Fixed Income Securities (Details) - USD ($) | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Investment | |||
Amortized cost | $ 884,838,000 | $ 976,595,000 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 884,838,000 | 976,595,000 | |
Realized gains or losses | 0 | 0 | $ 0 |
Commercial paper | |||
Investment | |||
Amortized cost | 548,010,000 | 571,592,000 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 548,010,000 | 571,592,000 | |
Certificates of deposit | |||
Investment | |||
Amortized cost | 336,828,000 | 405,003,000 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | $ 336,828,000 | $ 405,003,000 |
Investments - Minority Investme
Investments - Minority Investments (Details) $ in Thousands | 3 Months Ended | |||
Jan. 28, 2018USD ($) | Jul. 30, 2017USD ($) | Apr. 29, 2018USD ($)investment | Apr. 30, 2017USD ($)investment | |
Investments, Debt and Equity Securities [Abstract] | ||||
Number of companies (cost method) | investment | 3 | 3 | ||
Number of companies (equity method) | investment | 1 | 1 | ||
Cost method | $ 604 | $ 603 | ||
Equity method | 0 | 2,559 | ||
Total | $ 604 | $ 3,162 | ||
Ownership percentage in equity method investment | 19.90% | |||
Impairment loss, equity method minority investment | $ 2,300 | |||
Impairment loss, cost method minority investment | $ 643 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 29, 2018 | Apr. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 84,441 | $ 66,560 |
Work-in-process | 186,160 | 173,302 |
Finished goods | 77,926 | 91,526 |
Total inventories | 348,527 | 331,388 |
Including: inventory consigned to others | $ 38,366 | $ 40,363 |
Property, Equipment and Impro52
Property, Equipment and Improvements, Net - Schedule of Property, Equipment and Improvements (Details) - USD ($) $ in Thousands | Apr. 29, 2018 | Apr. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 1,057,876 | $ 807,089 |
Less: Accumulated depreciation and amortization | (537,027) | (423,170) |
Property, equipment and improvements, net | 520,849 | 383,919 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total | 113,390 | 97,857 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 77,235 | 68,145 |
Office equipment, furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total | 6,604 | 5,723 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 700,421 | 554,859 |
Leasehold property and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 52,135 | 44,298 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 108,091 | $ 36,207 |
Debt - 0.50% Convertible Senior
Debt - 0.50% Convertible Senior Notes Due 2036 (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2016USD ($)day$ / shares | Dec. 31, 2013USD ($)day$ / shares | Apr. 29, 2018USD ($) | Apr. 30, 2017USD ($) | |
0.5% Convertible Senior Notes Due 2036 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.50% | 0.50% | ||
0.5% Convertible Senior Notes Due 2033 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.50% | 0.50% | ||
0.5% Convertible Senior Notes Due 2033 | Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying amount of liability component | $ 465,100,000 | $ 209,100,000 | $ 251,300,000 | |
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2036 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 575,000,000 | |||
Transaction costs in connection with issuance of notes | 5,700,000 | |||
Convertible debt, conversion ratio | 0.0226388 | |||
Convertible debt, conversion ratio (in dollars per share) | $ / shares | $ 44.17 | |||
Carrying amount of the equity component | $ 109,900,000 | $ 109,881,000 | $ 109,881,000 | |
Debt discount amortization period | 44 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 | $ 1,100,000 | |||
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 | 4,600,000 | |||
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 | day | 20 | |||
Convertible debt, threshold consecutive trading days | day | 30 | |||
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 | day | 5 | |||
Convertible debt, threshold consecutive trading days | day | 5 | |||
Convertible debt, threshold percentage of stock price trigger | 98.00% | |||
Convertible Senior Notes | 0.5% Convertible Senior Notes Due 2033 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 258,800,000 | |||
Transaction costs in connection with issuance of notes | 3,800,000 | |||
Convertible debt, conversion ratio | 0.0331031 | |||
Convertible debt, conversion ratio (in dollars per share) | $ / shares | $ 30.18 | |||
Carrying amount of the equity component | $ 49,600,000 | $ 49,648,000 | $ 49,648,000 | |
Debt discount amortization period | 7 months | |||
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 | day | 20 | |||
Convertible debt, threshold consecutive trading days | day | 30 | |||
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 | day | 5 | |||
Convertible debt, threshold consecutive trading days | day | 5 | |||
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. 29, 2018 | Apr. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Principal | $ 575,000 | $ 575,000 | |
Unamortized debt discount | (82,765) | (103,022) | |
Unamortized debt issuance costs | (3,358) | (4,281) | |
Net carrying amount of the liability component | 488,877 | 467,697 | |
Carrying amount of the equity component | $ 109,881 | $ 109,881 | $ 109,900 |
Debt - Interest Expense - 2036
Debt - Interest Expense - 2036 Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Debt Instrument [Line Items] | |||
Amortization of discount on convertible debt | $ 30,834 | $ 16,935 | $ 9,604 |
Convertible debt | 0.5% Convertible Senior Notes Due 2036 | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 2,875 | 1,001 | |
Amortization of discount on convertible debt | 20,257 | 6,859 | |
Amortization of issuance costs | 923 | 334 | |
Total interest cost | $ 24,055 | $ 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% | 4.85% |
Debt - 0.50% Convertible Seni56
Debt - 0.50% Convertible Senior Notes Due 2033 (Narrative) (Details) - 0.5% Convertible Senior Notes Due 2033 | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2013USD ($)day$ / shares | Apr. 29, 2018USD ($) | Apr. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Interest rate | 0.50% | 0.50% | ||
Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying amount of liability component | $ 209,100,000 | $ 251,300,000 | $ 465,100,000 | |
Convertible Senior Notes | ||||
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 the equity component | $ 49,600,000 | $ 49,648,000 | $ 49,648,000 | |
Debt discount amortization period | 7 months | |||
Transaction costs in connection with issuance of notes | $ 3,800,000 | |||
Convertible Senior Notes | Additional Paid-in Capital | ||||
Debt Instrument [Line Items] | ||||
Transaction costs in connection with issuance of notes | 725,000 | |||
Convertible Senior Notes | Other Noncurrent Assets | ||||
Debt Instrument [Line Items] | ||||
Transaction costs in connection with issuance of notes | $ 3,100,000 | |||
Convertible Senior Notes | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Debt redemption price percentage | 100.00% | |||
Convertible Senior Notes | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Debt redemption price percentage | 100.00% | |||
Convertible Senior Notes | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Debt redemption price percentage | 100.00% | |||
Convertible Senior Notes | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument [Line Items] | ||||
Debt redemption price percentage | 100.00% | |||
Convertible Senior Notes | Debt Instrument, Conversion, Option One | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, threshold trading days | day | 20 | |||
Convertible debt, threshold consecutive trading days | day | 30 | |||
Convertible debt, threshold percentage of stock price trigger | 130.00% | |||
Convertible Senior Notes | Debt Instrument, Conversion, Option Two | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, threshold trading days | day | 5 | |||
Convertible debt, threshold consecutive trading days | day | 5 | |||
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. 29, 2018 | Apr. 30, 2017 | Dec. 31, 2013 |
Debt Instrument [Line Items] | |||
Principal | $ 258,750 | $ 258,750 | |
Unamortized debt discount | (7,086) | (17,663) | |
Unamortized debt issuance costs | (386) | (1,002) | |
Net carrying amount of the liability component | 251,278 | 240,085 | |
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. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Debt Instrument [Line Items] | |||
Amortization of the debt discount | $ 30,834 | $ 16,935 | $ 9,604 |
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 | 10,577 | 10,076 | 9,604 |
Amortization of issuance costs | 616 | 616 | 616 |
Total interest cost | $ 12,487 | $ 11,986 | $ 11,514 |
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% |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Operating Leases, Future Minimum Payments Due [Abstract] | |||
Total | $ 36,883 | ||
Less Than 1 Year | 10,691 | ||
1-3 Years | 13,433 | ||
4-5 Years | 7,022 | ||
After 5 Years | 5,737 | ||
Rent expense | 9,900 | $ 9,000 | $ 9,400 |
Sublease income | $ 292 | $ 373 | $ 168 |
Fair Value of Financial Instr60
Fair Value of Financial Instruments - Schedule of Fair Value Assets and Liabilities Not Measured on a Recurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Apr. 29, 2018 | Apr. 30, 2017 |
Carrying Amount | 0.5% Convertible Senior Notes Due 2033 | ||
Financial assets [Abstract] | ||
Notes | $ 251,278 | $ 240,085 |
Carrying Amount | 0.5% Convertible Senior Notes Due 2036 | ||
Financial assets [Abstract] | ||
Notes | 488,877 | 467,697 |
Carrying Amount | Commercial paper | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 548,010 | 571,592 |
Carrying Amount | Certificates of deposit | ||
Financial assets [Abstract] | ||
Investments | 336,828 | 405,003 |
Fair Value | 0.5% Convertible Senior Notes Due 2033 | ||
Financial assets [Abstract] | ||
Notes | 256,001 | 273,628 |
Fair Value | 0.5% Convertible Senior Notes Due 2036 | ||
Financial assets [Abstract] | ||
Notes | 520,016 | 534,391 |
Fair Value | Level 1 | 0.5% Convertible Senior Notes Due 2033 | ||
Financial assets [Abstract] | ||
Notes | 256,001 | 273,628 |
Fair Value | Level 1 | 0.5% Convertible Senior Notes Due 2036 | ||
Financial assets [Abstract] | ||
Notes | 520,016 | 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 | 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 | 0 |
Fair Value | Commercial paper | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 548,010 | 571,592 |
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 | 548,010 | 571,592 |
Fair Value | Commercial paper | Level 3 | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Fair Value | Certificates of deposit | ||
Financial assets [Abstract] | ||
Investments | 336,828 | 405,003 |
Fair Value | Certificates of deposit | Level 1 | ||
Financial assets [Abstract] | ||
Investments | 0 | 0 |
Fair Value | Certificates of deposit | Level 2 | ||
Financial assets [Abstract] | ||
Investments | 336,828 | 405,003 |
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. 29, 2018vote$ / sharesshares | Apr. 30, 2017$ / 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] | |||
Stock option term, maximum | 10 years | ||
2005 Plan | Minimum | |||
Employee Stock Plans [Abstract] | |||
Award vesting period | 4 years | ||
2005 Plan | Maximum | |||
Employee Stock Plans [Abstract] | |||
Award vesting period | 5 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) | Apr. 29, 2018shares |
Equity [Abstract] | |
Exercise of outstanding stock options (shares) | 1,097,091 |
Vesting of restricted stock awards (shares) | 5,954,755 |
Available for grant under employee stock incentive plan (shares) | 6,298,340 |
Available for grant under employee stock purchase plan (shares) | 2,417,407 |
Total (shares) | 15,767,593 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Number of Shares | |||
Stock options outstanding, ending balance (shares) | 1,097,091 | ||
Stock options | |||
Number of Shares | |||
Stock options outstanding, beginning balance (shares) | 581,172 | ||
Stock options granted (shares) | 740,000 | ||
Stock options exercised (shares) | (187,288) | ||
Stock options canceled (shares) | (36,793) | ||
Stock options outstanding, ending balance (shares) | 581,172 | ||
Stock options outstanding and exercisable (shares) | 357,091 | ||
Weighted-Average Exercise Price | |||
Options outstanding, beginning, weighted average exercise price (in dollars per share) | $ 9.85 | ||
Options granted, weighted average exercise price (in dollars per share) | 22.26 | ||
Options exercised, weighted average exercise price (in dollars per share) | 12.79 | ||
Options canceled, weighted average exercise price (in dollars per share) | 28.81 | ||
Options outstanding, ending weighted average exercise price (in dollars per share) | 17.08 | $ 9.85 | |
Options outstanding and exercisable, weighted average exercise price (in dollars per share) | 6.36 | ||
Weighted average grant date fair value of options granted in the period (in dollars per share) | $ 9.89 | ||
Options exercised, aggregate intrinsic value | $ 1.7 | $ 9.9 | $ 3.3 |
Options outstanding, intrinsic value | 3.4 | ||
Options outstanding and exercisable, intrinsic value | $ 3.4 | ||
Options outstanding ending, weighted average remaining contractual term | 6 years 10 months 24 days | ||
Options outstanding and exercisable, weighted average remaining contractual term | 1 year 1 month 6 days | ||
Unrecognized compensation expense related to stock options | $ 6.8 | ||
Period for recognition of unrecognized compensation related to stock options | 4 years 1 month 6 days |
Stockholders' Equity - Schedu64
Stockholders' Equity - Schedule of Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Number of Shares | |||
RSUs unvested, ending balance (shares) | 5,954,755 | ||
Restricted Stock Units | |||
Number of Shares | |||
RSUs unvested, beginning balance (shares) | 6,618,360 | ||
RSUs granted (shares) | 2,679,337 | ||
RSUs vested (shares) | (2,946,823) | ||
RSUs forfeited (shares) | (396,119) | ||
RSUs unvested, ending balance (shares) | 5,954,755 | 6,618,360 | |
Weighted-Average Grant-Date Fair Value | |||
RSUs unvested, beginning balance (in dollars per share) | $ 19.28 | ||
RSUs granted (in dollars per share) | 25.65 | $ 19.77 | $ 19.02 |
RSUs vested (in dollars per share) | 18.99 | ||
RSUs forfeited (in dollars per share) | 21.63 | ||
RSUs unvested, ending balance (in dollars per share) | $ 21.96 | $ 19.28 | |
Aggregate intrinsic value of restricted stock units outstanding | $ 93.7 | ||
Fair value of restricted stock units that vested during the period | $ 56 | $ 42 | $ 41.7 |
Unrecognized compensation expense related to RSUs | $ 92.1 | ||
Period for recognition of unrecognized compensation related to RSUs | 2 years 3 months 18 days |
Stockholders' Equity - Schedu65
Stockholders' Equity - Schedule of Share-Based Compensation Expense by Caption and Type of Award (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | $ 61,164 | $ 49,879 | $ 45,243 |
Stock-based compensation capitalized as part of inventory | 3,900 | 2,500 | |
RSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | 56,965 | 46,577 | 42,162 |
Stock options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | 490 | 0 | 0 |
Employee stock purchase rights under ESPP | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | 3,709 | 3,302 | 3,081 |
Cost of revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | 12,943 | 11,409 | 10,357 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | 22,767 | 20,425 | 18,245 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | 7,619 | 7,170 | 6,667 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense by caption | $ 17,835 | $ 10,875 | $ 9,974 |
Stockholders' Equity - Schedu66
Stockholders' Equity - Schedule of Employee Stock Purchase Plan Valuation Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 28, 2018 | Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Chief Executive Officer And Board Of Directors Chairman | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Lump sum cash severance payment | $ 300 | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 2 months 12 days | |||
Volatility | 47.00% | |||
Risk-free interest rate | 2.30% | |||
Dividend yield | 0.00% | |||
Weighted average grant date fair value of options granted in the period (in dollars per share) | $ 9.89 | |||
Restricted Stock Units | Chief Executive Officer And Board Of Directors Chairman | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Accelerated vesting percentage | 100.00% | |||
Compensation expense | $ 7,500 | |||
2009 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 9 months | 9 months | 9 months | |
Volatility, minimum | 56.00% | 40.00% | 32.00% | |
Volatility, maximum | 57.00% | 43.00% | 54.00% | |
Risk-free interest rate, minimum | 1.48% | 0.36% | 0.11% | |
Risk-free interest rate, maximum | 1.70% | 0.89% | 0.70% | |
Dividend yield | 0.00% | 0.00% | 0.00% | |
Weighted average grant date fair value of options granted in the period (in dollars per share) | $ 4.43 | $ 5.34 | $ 2.79 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2018 | Apr. 29, 2018 | Dec. 31, 2017 | Apr. 30, 2017 | Dec. 31, 2016 | May 01, 2016 | |
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) | $ 3,200,000 | |||||
Defined contribution plan expenses | $ 3,300,000 | $ 2,800,000 | $ 2,400,000 | |||
Common Stock | ||||||
Defined Benefit Plan Disclosure | ||||||
Employer contribution in defined contribution retirement plan (in shares) | 146,944 | 85,040 | 163,464 | |||
Forecast | ||||||
Defined Benefit Plan Disclosure | ||||||
Maximum statutory contribution by employee (in usd) | $ 18,500 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | Dec. 22, 2017 | Apr. 30, 2017 | Apr. 29, 2018 | Dec. 31, 2017 | Apr. 30, 2017 | May 01, 2016 |
Operating Loss Carryforwards | ||||||
Deferred tax expense related to TCJA | $ 30,300,000 | |||||
Federal statutory tax rate | 30.40% | 35.00% | 35.00% | |||
Undistributed earnings of foreign subsidiaries | $ 123,000,000 | |||||
One-time deferred tax expense resulting from mandatory deemed repatriation of undistributed earnings | $ 19,100,000 | |||||
Increase (decrease) in valuation allowance | $ (103,300,000) | $ (600,000) | $ (132,100,000) | $ (1,500,000) | ||
Valuation allowance, percentage of total deferred tax assets | 20.00% | |||||
Tax Holiday affect on net income (in usd) | $ 6,800,000 | |||||
Tax Holiday affect on net income (in usd per share) | $ 0.06 | |||||
Unrecognized tax benefits that would impact effective tax rate | $ 17,700,000 | |||||
Accrued interest or penalties | $ 822,000 | 652,000 | $ 822,000 | |||
Federal | ||||||
Operating Loss Carryforwards | ||||||
Net operating loss carryforwards | 236,500,000 | |||||
Tax credit carryforwards | 38,800,000 | |||||
State | ||||||
Operating Loss Carryforwards | ||||||
Net operating loss carryforwards | 13,800,000 | |||||
Tax credit carryforwards | 31,400,000 | |||||
Foreign | ||||||
Operating Loss Carryforwards | ||||||
Net operating loss carryforwards | $ 22,900,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 189 | 532 | (9) |
Foreign | 7,480 | 14,850 | 4,575 |
Current income tax expense (benefit) | 7,669 | 15,382 | 4,566 |
Deferred: | |||
Federal | 29,532 | (102,305) | 0 |
State | (999) | (1,008) | 0 |
Foreign | (2,919) | 1,779 | (4,928) |
Deferred income tax expense (benefit) | 25,614 | (101,534) | (4,928) |
Provision for (benefit from) income taxes | 33,283 | (86,152) | (362) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest [Abstract] | |||
U.S. | (72,730) | 96,648 | (2,579) |
Foreign | 57,727 | 66,546 | 37,410 |
Income (loss) before income taxes | $ (15,003) | $ 163,194 | $ 34,831 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Expected income tax provision (benefit) at U.S. federal statutory rate | 30.40% | 35.00% | 35.00% |
Foreign rate differential | 100.60% | (5.00%) | (40.50%) |
Share-based compensation expense | (5.30%) | 0.70% | 14.10% |
Valuation allowance | (31.70%) | (83.00%) | (2.50%) |
Other permanent adjustments | (32.40%) | 0.70% | 4.40% |
Research and development credits | 43.20% | (2.30%) | (12.60%) |
Impact of TCJA - rate reduction | (201.80%) | 0.00% | 0.00% |
Impact of TCJA - transition tax | (127.10%) | 0.00% | 0.00% |
Other | 2.40% | 1.00% | 1.10% |
Effective income tax rate | (221.70%) | (52.90%) | (1.00%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 29, 2018 | Apr. 30, 2017 |
Deferred tax assets: | ||
Inventory adjustments | $ 9,870 | $ 9,161 |
Accruals and reserves | 4,827 | 12,731 |
Tax credits | 49,657 | 38,092 |
Net operating loss carryforwards | 55,926 | 106,297 |
Gain/loss on investments under equity or cost method | 364 | 814 |
Depreciation and amortization | 16,524 | 8,462 |
Purchase accounting for intangible assets | 1,284 | 2,707 |
Capital loss carryforward | 2,246 | 7,183 |
Acquired intangibles | 1,497 | 4,343 |
Stock compensation | 5,432 | 9,345 |
Total deferred tax assets | 147,627 | 199,135 |
Valuation allowance | (30,213) | (30,804) |
Net deferred tax assets | 117,414 | 168,331 |
Deferred tax liabilities: | ||
Acquired intangibles | (1,493) | (2,360) |
Debt discount | (20,006) | (43,796) |
Depreciation and amortization | (15,590) | (16,233) |
Total deferred tax liabilities | (37,089) | (62,389) |
Total net deferred tax assets (liabilities) | 80,325 | 105,942 |
Reported as: | ||
Deferred tax assets | 80,850 | 107,225 |
Deferred tax liabilities | $ (525) | $ (1,283) |
Income Taxes - Summary of Movem
Income Taxes - Summary of Movement in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 21,458 | $ 16,411 | $ 14,653 |
Additions for tax positions related to current year | 1,803 | 1,675 | 1,331 |
Additions for tax positions related to prior years | 94 | 3,372 | 902 |
Reductions for tax positions related to prior years (lapse of statute of limitations) | (2,777) | 0 | (475) |
Ending balance | $ 20,578 | $ 21,458 | $ 16,411 |
Segments and Geography Inform73
Segments and Geography Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographic Area (Details) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2018USD ($)segment | Apr. 30, 2017USD ($) | May 01, 2016USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Segment Reporting Information | |||
Revenues | $ 1,316,483 | $ 1,449,303 | $ 1,263,166 |
Long-lived assets | 564,191 | 424,733 | |
Operating Segments | United States | |||
Segment Reporting Information | |||
Revenues | 482,601 | 476,763 | 408,700 |
Long-lived assets | 213,745 | 133,426 | |
Operating Segments | China | |||
Segment Reporting Information | |||
Revenues | 270,040 | 358,561 | 307,327 |
Long-lived assets | 252,179 | 205,423 | |
Operating Segments | Malaysia | |||
Segment Reporting Information | |||
Revenues | 122,548 | 122,699 | 123,057 |
Long-lived assets | 52,417 | 49,779 | |
Operating Segments | Rest of the world | |||
Segment Reporting Information | |||
Revenues | 441,294 | 491,280 | $ 424,082 |
Long-lived assets | $ 45,850 | $ 36,105 |
Legal Matters (Details)
Legal Matters (Details) | 12 Months Ended | |
Apr. 29, 2018USD ($) | Mar. 08, 2011lawsuit | |
Commitments and Contingencies Disclosure [Abstract] | ||
Damages | $ | $ 0 | |
Pending Litigation | Earnings Announcements Cases | ||
Loss Contingencies [Line Items] | ||
Loss contingency pending claims | lawsuit | 2 |
Guarantees and Indemnificatio75
Guarantees and Indemnifications (Details) | 12 Months Ended |
Apr. 29, 2018 | |
Guarantees [Abstract] | |
Period of written notification to terminate agreement | 90 days |
Financial Information by Quar76
Financial Information by Quarter (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 30, 2016 | Jul. 31, 2016 | Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 310,069 | $ 332,403 | $ 332,205 | $ 341,806 | $ 357,527 | $ 380,588 | $ 369,863 | $ 341,325 | |||
Gross profit | 62,594 | 88,068 | 96,205 | 115,299 | 125,164 | 136,637 | 133,681 | 108,165 | $ 362,166 | $ 503,647 | $ 354,650 |
Income (loss) from operations | (26,736) | (6,129) | 9,467 | 29,912 | 40,841 | 54,906 | 52,828 | 28,311 | 6,514 | 176,885 | 41,023 |
Net income (loss) | $ (18,343) | $ (55,659) | $ 5,857 | $ 19,859 | $ 130,245 | $ 46,386 | $ 48,766 | $ 23,949 | $ (48,286) | $ 249,346 | $ 35,193 |
Net income (loss) per share: | |||||||||||
Basic (in dollars per share) | $ (0.16) | $ (0.49) | $ 0.05 | $ 0.18 | $ 1.17 | $ 0.42 | $ 0.44 | $ 0.22 | $ (0.42) | $ 2.26 | $ 0.33 |
Diluted (in dollars per share) | $ (0.16) | $ (0.49) | $ 0.05 | $ 0.17 | $ 1.13 | $ 0.40 | $ 0.43 | $ 0.22 | $ (0.42) | $ 2.19 | $ 0.32 |
Shares used in computing net income (loss) per share: | |||||||||||
Basic (shares) | 114,742 | 114,209 | 113,960 | 112,544 | 111,438 | 110,956 | 110,407 | 108,820 | 113,864 | 110,405 | 106,678 |
Diluted (shares) | 114,742 | 114,209 | 115,443 | 115,698 | 115,248 | 114,873 | 113,192 | 110,821 | 113,864 | 114,097 | 108,870 |
Increase (decrease) in valuation allowance | $ 103,300 | $ 600 | $ 132,100 | $ 1,500 | |||||||
Deferred income tax expense resulting from TCJA | $ 49,400 |
Schedule II - Consolidated Va77
Schedule II - Consolidated Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 756 | $ 727 | $ 1,136 |
Additions Charged to (Recoveries Offset against) Costs and Expenses, Net | (266) | 33 | (403) |
Write-Offs | (221) | (4) | (6) |
Balance at End of Period | $ 269 | $ 756 | $ 727 |