Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | ||
Sep. 29, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | |
Common Class A [Member] | Common Class B [Member] | ||
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'Spansion Inc. | ' | ' |
Document Type | '10-Q | ' | ' |
Current Fiscal Year End Date | '--12-29 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 58,860,754 | 1 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001322705 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 29-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Net sales | $273,378 | $239,747 | $658,020 | $691,945 |
Cost of sales | 217,209 | 161,281 | 498,640 | 480,370 |
Gross Profit | 56,169 | 78,466 | 159,380 | 211,575 |
Research and development | 38,341 | 27,407 | 84,666 | 83,078 |
Sales, general and administrative | 54,544 | 35,228 | 117,441 | 103,485 |
Net gain on sale of Kuala Lumpur land and building | ' | ' | ' | -28,434 |
Restructuring charges | 6,264 | 1,862 | 6,264 | 5,650 |
Operating income (loss) | -42,980 | 13,969 | -48,991 | 47,796 |
Interest and other income (expense) | 3,578 | 1,267 | 7,658 | 2,216 |
Interest expense | -7,351 | -7,339 | -22,333 | -22,924 |
Gain on acquisition of Microcontroller and Analog business | 8,205 | ' | 8,205 | ' |
Income (loss) before income taxes | -38,548 | 7,897 | -55,461 | 27,088 |
Provision (benefit) for income taxes | -1,644 | 2,757 | -891 | 9,572 |
Net income (loss) | -36,904 | 5,140 | -54,570 | 17,516 |
Less: Net loss attributable to the noncontrolling interest | ' | ' | ' | -503 |
Net income (loss) attributable to Spansion Inc. common stockholders | ($36,904) | $5,140 | ($54,570) | $18,019 |
Basic (in Dollars per share) | ($0.63) | $0.09 | ($0.93) | $0.30 |
Diluted (in Dollars per share) | ($0.63) | $0.08 | ($0.93) | $0.30 |
Basic (in Shares) | 58,785 | 60,139 | 58,506 | 59,932 |
Diluted (in Shares) | 58,785 | 60,820 | 58,506 | 60,775 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Net income (loss) | ($36,904) | $5,140 | ($54,570) | $17,516 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Gain on auction rate securities reclassified into earnings | ' | ' | -1,200 | ' |
Net foreign currency translation gain (loss) | 117 | 305 | -1,420 | 259 |
Net unrealized gain (loss) on cash flow hedges: | ' | ' | ' | ' |
Net unrealized hedge gain (loss) arising during the period | -391 | -1,639 | 13,669 | -1,422 |
Net gain reclassified into earnings for cash flow hedges (ineffective portion) | ' | ' | -2,415 | ' |
Net loss (gain) reclassified into earnings for cash flow hedges (effective portion) | -3,113 | 538 | -7,701 | 538 |
Net unrealized loss (gain) on cash flow hedges | -3,504 | -1,101 | 3,553 | -884 |
Other comprehensive income (loss), net of tax | -3,387 | -796 | 933 | -625 |
Total comprehensive income (loss), net of tax | -40,291 | 4,344 | -53,637 | 16,891 |
Less: Comprehensive loss attributable to noncontrolling interest | ' | ' | ' | -503 |
Comprehensive income (loss) attributable to Spansion Inc. common stockholders | ($40,291) | $4,344 | ($53,637) | $17,394 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $193,025 | $262,177 |
Short-term investments | 35,367 | 51,720 |
Accounts receivable, net | 155,206 | 106,864 |
Inventories | 257,600 | 182,192 |
Deferred income taxes | 3,811 | 8,699 |
Prepaid expenses and other current assets | 64,914 | 28,531 |
Total current assets | 709,923 | 640,183 |
Property, plant and equipment, net | 186,211 | 176,728 |
Intangible assets, net | 177,207 | 149,153 |
Goodwill | 166,584 | 166,931 |
Other assets | 66,961 | 39,171 |
Total assets | 1,306,886 | 1,172,166 |
Current liabilities: | ' | ' |
Accounts payable | 99,454 | 85,542 |
Accrued compensation and benefits | 65,606 | 26,080 |
Other accrued liabilities | 97,896 | 29,913 |
Income taxes payable | 1,673 | 2,618 |
Deferred income | 27,099 | 9,135 |
Current portion of long-term debt | 5,380 | 5,382 |
Total current liabilities | 297,108 | 158,670 |
Deferred income taxes | 4,408 | 9,393 |
Long-term debt, less current portion | 413,789 | 410,913 |
Other long-term liabilities | 34,688 | 31,416 |
Total liabilities | 749,993 | 610,392 |
Capital stock: | ' | ' |
Additional paid-in capital | 739,646 | 690,891 |
Accumulated deficit | -182,261 | -127,691 |
Accumulated other comprehensive income (loss) (Note 5) | -551 | -1,484 |
Total stockholders' equity | 556,893 | 561,774 |
Total liabilities and stockholders' equity | 1,306,886 | 1,172,166 |
Common Class A [Member] | ' | ' |
Capital stock: | ' | ' |
Common stock | $59 | $58 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Class A [Member] | ' | ' |
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 58,828,662 | 57,267,409 |
Common stock, shares outstanding | 58,828,662 | 57,267,409 |
Common Class B [Member] | ' | ' |
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 1 | 1 |
Common stock, shares issued | 1 | 1 |
Common stock, shares outstanding | 1 | 1 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
Cash Flows from Operating Activities: | ' | ' |
Net income (loss) | ($54,570) | $17,516 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 62,630 | 74,390 |
Gain on liquidation of auction rate securities | -1,200 | -1,059 |
Gain on recovery from impaired investment | -9,592 | ' |
Provision for deferred income taxes | -3,728 | 1,826 |
Net gain on sale of Kuala Lumpur land and building | ' | -28,434 |
Net gain on sale and disposal of property, plant and equipment | -3,084 | -5,326 |
Gain on acquisition of Microcontroller and Analog business | -8,205 | ' |
Costs relating to partial repurchase of 7.875% Senior Unsecured Notes | 2,280 | ' |
Asset impairment charges | ' | 2,070 |
Compensation recognized under employee stock plans | 23,324 | 24,176 |
Changes in assets and liabilities, net of effect of acquisition | 56,938 | -961 |
Net cash provided by operating activities | 64,793 | 84,198 |
Cash Flows from Investing Activities: | ' | ' |
Proceeds from liquidation of auction rate securities | 1,530 | 1,059 |
Proceeds from sale of property, plant and equipment | 3,206 | 44,357 |
Proceeds from recovery of impaired investment | 9,592 | ' |
Proceeds from maturities of marketable securities | 116,888 | 99,381 |
Purchases of property, plant and equipment | -39,238 | -30,753 |
Purchases of marketable securities | -100,535 | -80,135 |
Acquisition of Microcontroller and Analog business , net of cash acquired | -148,144 | ' |
Net cash provided by (used for) investing activities | -156,701 | 33,909 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from issuance of common stock due to options exercised | 2,303 | 1,358 |
Refinancing cost relating to Revolver | -282 | ' |
Repayments on debt and capital lease obligations | -2,105 | -30,390 |
Proceeds from issuance of Senior Exchangeable Notes | 150,000 | ' |
Cost relating to issuance of Senior Exchangeable Notes | -4,506 | ' |
Purchase of capped call for the Senior Exchangeable Notes | -15,375 | ' |
Partial repurchase of 7.875% Senior Notes including costs | -106,779 | ' |
Acquisition of noncontrolling interest | ' | -4,024 |
Cash settlement of hedging activities | -268 | -799 |
Net cash provided by (used for) financing activities | 22,988 | -33,855 |
Effect of exchange rate changes on cash and cash equivalents | -232 | 358 |
Net increase (decrease) in cash and cash equivalents | -69,152 | 84,610 |
Cash and cash equivalents, beginning of period | 262,177 | 194,850 |
Cash and cash equivalents, end of period | 193,025 | 279,460 |
Non-cash investing and financing activities: | ' | ' |
Liabilities recorded for purchases of property, plant and equipment | 10,448 | 7,629 |
Unpaid issuance costs relating to the Senior Exchangeable Notes | 460 | ' |
Restricted cash relating to employee compensation and benefits received from FSL | $32,086 | ' |
Note_1_Basis_of_Presentation
Note 1. Basis of Presentation | 9 Months Ended |
Sep. 29, 2013 | |
Disclosure Text Block [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies [Text Block] | ' |
1. Basis of Presentation | |
The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, the unaudited interim financial statements reflect all normal and recurring adjustments considered necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The December 30, 2012 condensed consolidated balance sheet data were derived from audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2012, but does not include all disclosures required by U.S. GAAP for annual periods. | |
These condensed consolidated financial statements and related notes should be read in conjunction with the Company’s audited financial statements and related notes included in its Annual Report on Form 10-K for the fiscal year ended December 30, 2012 as filed with the SEC on February 25, 2013. The results of operations for the nine months ended September 29, 2013 are not necessarily indicative of the results that may be expected for any other interim period or for the full fiscal year. | |
The Company operates on a 52- to 53-week fiscal year ending on the last Sunday in December. The additional week in a 53-week fiscal year is added to the second quarter to realign the Company’s fiscal quarters more closely to calendar quarters. Fiscal 2013 and fiscal 2012 are comprised of 52-week and 53-week periods, respectively. | |
Principles of Consolidation | |
On August 1, 2013, the Company acquired the Microcontroller and Analog business (AM Business) of Fujitsu Semiconductor Limited (FSL). The unaudited condensed consolidated financial statements include the results of operations of the Company, the AM business commencing as of the acquisition date and all of the Company’s other wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The fiscal 2012 financial statements also include a variable interest entity (VIE) for which the Company was the primary beneficiary through March 31, 2012. The VIE’s financial statements were not significant to the Company’s condensed consolidated financial statements for the periods presented. On April 1, 2012, the Company acquired substantially all assets and assumed certain liabilities of the VIE under an asset purchase agreement and the entity ceased to be a VIE as of the acquisition date. | |
Use of Estimates | |
The preparation of the Company’s consolidated financial statements and disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of commitments and contingencies and the reported amounts of revenues and expenses during the reporting periods. Estimates are used to account for the fair value of certain marketable securities, revenue adjustments, the allowance for doubtful accounts, inventory write-downs, valuation of intangible assets, impairment of long-lived assets, legal contingencies, income taxes, stock-based compensation expenses, the fair value of long-term debt, and product warranties. Actual results may differ from those estimates, and such differences may be material to the Company’s condensed consolidated financial statements. |
Note_2_Recent_Accounting_Prono
Note 2. Recent Accounting Pronouncements | 9 Months Ended |
Sep. 29, 2013 | |
Disclosure Text Block [Abstract] | ' |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | ' |
2. Recent Accounting Pronouncements | |
In July 2013, the FASB issued an accounting standard update permitting the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to US Treasury interest rates and the London Interbank Offered Rate (LIBOR). This guidance is effective prospectively for qualifying new or redesignated hedging relationships, entered into on or after July 17, 2013. The Company does not expect the adoption of this guidance to affect its consolidated financial position, results of operations, or cash flows. | |
In July 2013, the Financial Accounting Standards Board (FASB) issued an accounting standard update that resolves the diversity in practice regarding the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The unrecognized tax benefit should be presented as a reduction to a deferred tax asset. This guidance is effective for the first annual period beginning after December 15, 2013. The Company does not expect adoption of this guidance to affect its consolidated financial position, results of operations, or cash flows. | |
In February 2013, FASB issued an accounting standard update to provide enhanced disclosures related to reclassifications out of accumulated other comprehensive income (AOCI). An entity will be required to disclose the effect of significant reclassifications out of AOCI on the respective line items in net income if an amount in AOCI is reclassified in its entirety. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of this guidance beginning in the first quarter of fiscal 2013 did not have an impact on the Company’s financial position, results of operations or cash flows. | |
In December 2011, the FASB issued an accounting standard update requiring enhanced disclosure related to certain financial instruments and derivative instruments that are offset in the balance sheet or subject to enforceable master netting arrangement or similar arrangement. In January 2013, the FASB clarified the scope of this guidance as being applicable to derivatives, repurchase agreements and securities borrowing and lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirement becomes effective for the Company beginning the first quarter of fiscal year ending December 28, 2014. The adoption of this guidance is not expected to have an impact on the Company’s financial position, results of operations or cash flows. |
Note_3_Acquisition
Note 3. Acquisition | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||||||||||
3. Acquisition | |||||||||||||||||
On August 1, 2013, the Company acquired the AM Business of FSL for a purchase consideration of $158.5 million, ($149.9 million, net of cash acquired). Of this amount, the Company had a liability of $1.8 million as of September 29, 2013, to be paid towards the purchase consideration. Pursuant to the terms and conditions of a Stock Purchase Agreement (SPA) with FSL, the Company acquired certain subsidiaries and assets and assumed certain liabilities of FSL for purposes of acquiring FSL’s business of designing, developing, marketing and selling, microcontroller and analog semiconductor products. The primary reason for the acquisition was to expand the Company’s embedded market leadership and support its customer base with a broader product line including Flash memory, microcontrollers, analog, mixed signal and system-on-chip solutions. The acquisition was accounted for using the purchase method of accounting. During the three and nine months ended September 29, 2013, approximately $6.2 million and approximately $11.2 million were incurred as acquisition expenses and were included in the sales, general and administrative expense line in the Condensed Consolidated Statement of Operations. | |||||||||||||||||
The table below represents the provisional allocation of the purchase price to the net assets acquired based on their estimated fair values as of August 1, 2013: | |||||||||||||||||
Fair Values | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Cash | 8,595 | ||||||||||||||||
Restricted cash | 32,086 | ||||||||||||||||
Accounts receivable | 1,534 | ||||||||||||||||
Inventory | 104,300 | ||||||||||||||||
Property and equipment, net | 12,143 | ||||||||||||||||
Intangible Assets | |||||||||||||||||
Developed technology | |||||||||||||||||
Automotive microcontrollers | 10,500 | ||||||||||||||||
Consumer microcontrollers | 5,900 | ||||||||||||||||
Analog | 12,700 | ||||||||||||||||
In-Process technology | 500 | ||||||||||||||||
Customer relationships | 18,800 | ||||||||||||||||
Trademarks | 2,700 | ||||||||||||||||
Tradenames | 1,400 | ||||||||||||||||
Deferred tax liability | (3,739 | ) | |||||||||||||||
Japan Pension related underfunded liability | (23,923 | ) | |||||||||||||||
Liability to FSL for excess pension related cash received | (8,163 | ) | |||||||||||||||
Japan employees compensation and benefits liability | (8,585 | ) | |||||||||||||||
Gain on acquisition of Microcontroller and Analog business | (8,205 | ) | |||||||||||||||
Total Purchase Consideration | 158,543 | ||||||||||||||||
The purchase price has been allocated to the assets acquired and liabilities assumed based on estimated fair values as of the acquisition date. The Company has not finalized the purchase price allocation for this acquisition. | |||||||||||||||||
Gain on acquisition | |||||||||||||||||
The accounting guidance requires that economic gain resulting from the fair value received being greater than the consideration paid to acquire the net assets be recorded as a one-time gain included in earnings on the acquisition date. The Company recorded a gain on acquisition of $8.2 million, which is disclosed as a separate line in the accompanying Condensed Consolidated Statement of Operations. | |||||||||||||||||
The Company was able to acquire the AM Business for less than the sum of the fair value of its net assets largely as a result of its long-standing and on-going relationship with FSL, including the existing and future distribution and supply agreements between the Company’s core flash memory business, the AM Business and Fujitsu’s continuing business in the semiconductor space. Additionally, the Company believes there is a significant difference in the market participant approach it used to value the business compared to the way Fujitsu valued the business due to the differences in each company’s method of running the business. Historically, Fujitsu operated the AM Business as a fully integrated manufacturer owning substantially all of the manufacturing facilities in the supply chain. In recent years, the high fixed cost nature of this business model contributed to its substantial losses. The Company, conversely, valued the business using the income approach based on an outsourced business model where the Company mainly incurs only the variable cost of manufacturing in sourcing products for the AM Business going forward. | |||||||||||||||||
Identifiable intangible assets | |||||||||||||||||
Developed technology relates to FSL’s automotive microcontroller, consumer microcontroller and analog technologies that have reached technological feasibility. Developed technology was valued at the individual product level under each of these categories. The income approach, specifically the multi-period excess earnings method, which calculates the value based on the risk-adjusted present value of the cash flows specific to the products, net of all contributory asset returns was used. The estimated economic lives of the underlying developed technologies were based on the estimated product lifecycles of the current automotive, consumer, and analog products. A discount rate of 24.0% was used to discount the cash flows to the present value. The Company will amortize the fair value of the acquired developed technology on a straight line basis. | |||||||||||||||||
In-process research and development (IPR&D) relates to research and development for products that have not yet reached technological feasibility. A discount rate of 26.0% was used to value the research and development projects, adjusted to reflect additional risks inherent in the acquired projects. Acquired IPR&D assets are initially recognized at fair value and are classified as indefinite-lived assets until the successful completion or abandonment of the associated research and development efforts. Accordingly, during the development period after the acquisition date, these assets will be subject to periodic impairment testing. If a research and development project is terminated, the associated IPR&D asset will be written down to zero in the period in which the project is terminated. Upon successful completion of the development process for an acquired IPR&D project, determination of the useful life of the asset will be made; at that time, the asset would be considered a finite-lived intangible asset and the Company would begin to amortize the asset into earnings. Management estimates that it will take approximately three months to three years to complete the on-going projects, depending on whether these relate to the analog, consumer or automotive microcontroller markets, and that the acquired assets will then be amortized using the straight line method over the estimated useful lives for developed technology in each of these markets. | |||||||||||||||||
Customer relationships represent the fair value of future projected revenue that will be derived from sales of products to existing customers of the AM business. As a result of the acquisition, the Company entered into an agreement with Fujitsu for the distribution of its microcontroller and analog products in Japan and acquired several non-Japan customer relationships. Customer relationships were valued using the with-and-without-method, a form of the income approach, which captures the opportunity cost associated with the theoretical loss of the customers existing as of the valuation date. The method involves a comparison of the cash flows as if the customer relationships were in place versus as if the customer relationships were to be created "from scratch". This method also assumes that all other assets, know-how and technology were easily available in both scenarios. | |||||||||||||||||
Customer relationships, trademarks and trade names were fair valued using a discount rate of 24.0%. The estimated fair values of these intangibles will be amortized on a straight line basis. | |||||||||||||||||
Liability relating to underfunded portion of Defined Benefit Pension Plan | |||||||||||||||||
The majority of the transferred employees were participants of the Fujitsu Corporate Pension Fund and Retirement Allowance Plan (together, “the Pension Plan”). In accordance with the SPA, these employees will remain in, and will continue to participate in the Pension Plan through the acquired subsidiaries in Japan. All pension related costs will be billed by Fujitsu to Spansion periodically, and related assets will continue to be managed and invested by the Pension Plan. | |||||||||||||||||
The Pension Plan had unfunded and underfunded liabilities as of August 1, 2013 which the Company assumed. Fujitsu agreed to pay the Company for the total amount of the unfunded and underfunded liabilities and transferred the cash on August 1, 2013. The cash transfer amount was calculated based on the present value of the projected defined-benefit obligation less the fair value of Pension Plan assets at the period end, allocated from the Fujitsu Pension Plan for the transferred employees. The fair value of the Pension Plan assets was derived from balances reported by the financial institutions that manage these assets. The projected defined benefit obligation was computed by an independent actuary in accordance with the terms of the SPA. This cash of $23.9 million is treated as restricted cash and is recorded in Other Current Assets and the unfunded and underfunded liabilities are recorded under Accrued Compensation and Benefits in the Condensed Consolidated Balance Sheet. | |||||||||||||||||
The Company also received additional cash pending the actuarial estimation of the underfunded portion of the pension liability. This amount of $8.2 million has also been recorded as restricted cash and a liability payable to FSL. | |||||||||||||||||
Other liabilities taken over as part of the acquisition | |||||||||||||||||
The Company also took over certain other liabilities of $8.6 million relating to employee compensation and benefits in Japan for which it was reimbursed in cash by FSL. | |||||||||||||||||
Pro Forma consolidated results of operations | |||||||||||||||||
The following unaudited pro forma consolidated results of operations for the three months and nine months ended September 29, 2013 and September 30, 2012 assume the acquisition had occurred as of December 26, 2011. The pro forma results of operations are presented for informational purposes only and are not indicative of the results of operations that would have been achieved if the acquisition had taken place on December 26, 2011 or of results that may occur in future. For the purpose of this pro forma financial information, adjustments were made in all periods to include the depreciation of the acquired property and equipment, the amortization of the acquired intangible assets and the income tax effects relating to such adjustments. Adjustments were also made to exclude gain on acquisition, acquisition related costs, amortization of fair market value of inventory markup and the income tax effects relating to such adjustments for the three and nine months ended September 29, 2013 and to include these items for the three and nine months ended September 30, 2012. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Net sales | 314,701 | 386,786 | 947,551 | 1,163,123 | |||||||||||||
Net income (loss) | (24,106 | ) | (46,075 | ) | (159,988 | ) | (169,905 | ) | |||||||||
Net income (loss) per share | |||||||||||||||||
Basic | (0.41 | ) | (0.77 | ) | (2.73 | ) | (2.84 | ) | |||||||||
Diluted | (0.41 | ) | (0.77 | ) | (2.73 | ) | (2.84 | ) | |||||||||
The AM Business acquired contributed net sales of $92.9 million from the acquisition date of August 1, 2013 through September 29, 2013. It is impracticable to determine the earnings for the AM Business as the Company does not allocate non-operating items to its various product groups. |
Note_4_Balance_Sheet_Component
Note 4. Balance Sheet Components | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Supplemental Balance Sheet Disclosures [Text Block] | ' | ||||||||
4. Balance Sheet Components | |||||||||
The Company’s cash balances are held in numerous locations throughout the world, with the majority in the United States. As of September 29, 2013, the Company had cash, cash equivalents, and short-term investments of $206.1 million held within the United States and $22.2 million held outside of the United States. As of December 30, 2012, the Company had cash, cash equivalents, and short term investments of $303.1 million held within the United States and $10.8 million held outside of the United States. | |||||||||
All securities other than the Federal Deposit Insurance Corporation (FDIC) insured certificates of deposit were designated as available-for-sale. FDIC insured certificates of deposit are held to maturity. Gross unrealized gains and losses on cash equivalents and short term investments were not material as of September 29, 2013 and December 30, 2012. Gross realized gains and losses on cash equivalents and short term investments were not material for the three months and nine months ended September 29, 2013 and September 30, 2012. | |||||||||
29-Sep-13 | 30-Dec-12 | ||||||||
(in thousands) | |||||||||
Cash and cash equivalents | |||||||||
Cash | $ | 188,118 | $ | 258,126 | |||||
Cash equivalents: | |||||||||
Money market funds | 4,844 | 1,181 | |||||||
FDIC insured certificates of deposit | 63 | 2,870 | |||||||
Cash and cash equivalents | $ | 193,025 | $ | 262,177 | |||||
Short-term investments | |||||||||
Commercial paper | $ | - | $ | 14,980 | |||||
Time Deposit | 14,035 | - | |||||||
FDIC insured certificates of deposit | 21,332 | 36,740 | |||||||
Short-term investments | $ | 35,367 | $ | 51,720 | |||||
Account receivable, net | |||||||||
Accounts receivable, gross | $ | 155,578 | $ | 107,127 | |||||
Allowance for doubtful accounts | (372 | ) | (263 | ) | |||||
Account receivable, net | $ | 155,206 | $ | 106,864 | |||||
Inventories | |||||||||
Raw materials | $ | 11,673 | $ | 8,647 | |||||
Work-in-process | 177,029 | 149,722 | |||||||
Finished goods | 68,898 | 23,823 | |||||||
Inventories | $ | 257,600 | $ | 182,192 | |||||
Property, plant and equipment, net | |||||||||
Land | $ | 45,168 | $ | 45,168 | |||||
Buildings and leasehold improvements | 61,601 | 59,807 | |||||||
Equipment | 366,951 | 341,129 | |||||||
Construction in progress | 25,910 | 11,694 | |||||||
Accumulated depreciation and amortization | (313,419 | ) | (281,069 | ) | |||||
Property, plant and equipment, net | $ | 186,211 | $ | 176,728 | |||||
Other Long Term Assets | |||||||||
Long Term License | $ | 33,210 | $ | 10,002 | |||||
Others | 33,751 | 29,169 | |||||||
Other Long Term Assets | $ | 66,961 | $ | 39,171 | |||||
Accrued Compensation and Benefits | |||||||||
Accrued Vacation | $ | 10,372 | $ | 9,404 | |||||
AM business underfunded pension related liability | 23,923 | - | |||||||
Others | 31,311 | 16,676 | |||||||
Accrued Compensation and Benefits | $ | 65,606 | $ | 26,080 | |||||
Accrued Liabilities | |||||||||
Short Term License Liability | $ | 17,948 | $ | 3,377 | |||||
Others | 79,948 | 26,536 | |||||||
Accrued Liabilities | $ | 97,896 | $ | 29,913 | |||||
Note_5_Accumulated_Other_Compr
Note 5. Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Other Comprehensive Income, Noncontrolling Interest [Text Block] | ' | ||||||||||||||||
5. Accumulated Other Comprehensive Loss | |||||||||||||||||
The following table summarizes the activity related to accumulated other comprehensive loss, net of tax: | |||||||||||||||||
Foreign | Net Gains and | Unrealized Gains | Total | ||||||||||||||
Currency | Losses on Cash | and Losses on Available-for-Sale Securities | |||||||||||||||
Translation Adjustment | Flow Hedges | ||||||||||||||||
(in thousands) | |||||||||||||||||
Beginning Balance, December 30, 2012 | $ | (2,685 | ) | $ | 1 | $ | 1,200 | $ | (1,484 | ) | |||||||
Other comprehensive income before reclassification, net of tax | (1,420 | ) | 13,669 | - | 12,249 | ||||||||||||
Amounts reclassified to earnings (ineffective portion) | - | (2,415 | ) | -2 | - | (2,415 | ) | ||||||||||
Amounts reclassified to earnings (effective portion) | - | (7,701 | ) | -1 | - | (7,701 | ) | ||||||||||
Amounts reclassified on sale of Auction Rate Securities | - | - | (1,200 | ) | -2 | (1,200 | ) | ||||||||||
Net other comprehensive income | $ | (1,420 | ) | $ | 3,553 | $ | (1,200 | ) | $ | 933 | |||||||
Ending Balance, September 29, 2013 | $ | (4,105 | ) | $ | 3,554 | $ | - | $ | (551 | ) | |||||||
(1) Reclassified into Net Sales line item of the Condensed Consolidated Statement of Operations. Please see Note 11 for further details. | |||||||||||||||||
(2) Reclassified into Interest and Other Income line item of the Condensed Consolidated Statement of Operations. Please see Note 11 for further details on the ineffective portion of cash flow hedges. |
Note_6_Equity_Incentive_Plan_a
Note 6. Equity Incentive Plan and Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
6. Equity Incentive Plan and Stock-Based Compensation | |||||||||||||||||
Equity Incentive Plan | |||||||||||||||||
The Company’s 2010 Equity Incentive Award Plan (2010 Plan) provides for the grant of stock options, stock appreciation rights, restricted stock units, restricted stock, performance awards, and deferred stock to its employees, consultants and non-employee members of its Board of Directors. | |||||||||||||||||
In the first half of fiscal 2013, the Company granted performance-based restricted stock units (PSUs) to certain senior executives. The PSUs have vesting percentages ranging from 0% to 100%, calculated based on the relative Total Shareholder Return (TSR) of the Company’s common stock as compared to the TSR of its peer companies. These awards are divided into two equal tranches, each with an 18-month performance period. The first performance period is from February 1, 2013 through July 31, 2014 and the second performance period is from August 1, 2014 through January 31, 2016. The grant date fair value for these grants is estimated using the Monte-Carlo option pricing model. | |||||||||||||||||
The numbers of shares of common stock available for grant under the 2010 Plan are shown in the following table: | |||||||||||||||||
Shares Available | |||||||||||||||||
For Grant | |||||||||||||||||
Balance as of December 30, 2012 | 1,103,450 | ||||||||||||||||
Additional shares issuable under 2010 Plan (annual increase for 2013) | 2,577,033 | ||||||||||||||||
Stock options granted, net of forfeitures/cancellations | (317,562 | ) | |||||||||||||||
RSU awards granted, net of forfeitures/cancellations | (693,310 | ) | |||||||||||||||
PSU awards granted, net of forfeitures/cancellations | (340,332 | ) | |||||||||||||||
Balance as of September 29, 2013 | 2,329,279 | ||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The following table presents the total stock-based compensation expense by financial statement caption resulting from the Company’s stock options and RSU awards: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
(in thousands) | |||||||||||||||||
Cost of sales | $ | 1,384 | $ | 1,713 | $ | 4,235 | $ | 4,747 | |||||||||
Research and development | 1,952 | 2,350 | 7,420 | 6,045 | |||||||||||||
Sales, general and administrative | 3,692 | 4,698 | 11,669 | 13,384 | |||||||||||||
Stock-based compensation expense before income taxes | 7,028 | 8,761 | 23,324 | 24,176 | |||||||||||||
Stock-based compensation expense after income taxes(1) | $ | 7,028 | $ | 8,761 | $ | 23,324 | $ | 24,176 | |||||||||
(1) There was no income tax benefit related to stock-based compensation because all of the Company's U.S. deferred tax assets, net of U.S. deferred tax liabilities, continue to be subject to a full valuation allowance. | |||||||||||||||||
The weighted average fair value of the Company’s stock options granted is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average fair value of stock options granted | $ | 3.68 | $ | 5.3 | $ | 4.69 | $ | 4.19 | |||||||||
The fair value of each stock option was estimated at the date of grant using a Black-Scholes option pricing model, with the following assumptions for grants: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
Expected volatility | 41.84 | % | 51.24 | % | 47.06 | % | 51.23 | % | |||||||||
Risk-free interest rate | 1.14 | % | 0.5 | % | 0.94 | % | 0.67 | % | |||||||||
Expected term (in years) | 4.35 | 4.35 | 4.35 | 4.35 | |||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
As of September 29, 2013, the total unrecognized compensation cost related to unvested stock options and RSU awards was approximately $32.5 million after reduction for estimated forfeitures. These stock options and RSU awards will generally vest ratably through 2016. | |||||||||||||||||
The fair value of each PSU award granted in fiscal 2013 was $7.40 using a Monte-Carlo pricing model and was estimated with the following assumptions: | |||||||||||||||||
Three and Nine Months Ended | |||||||||||||||||
29-Sep-13 | |||||||||||||||||
Stock price on grant date | $ | 11.5 | |||||||||||||||
Expected volatility | 50.9 | % | |||||||||||||||
Risk-free interest rate | 0.21 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Stock Option and Restricted Stock Unit Activity | |||||||||||||||||
The following table summarizes stock option activities and related information under the 2010 Plan for the periods presented: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (in Years) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding stock options as of December 30, 2012 | 6,641,892 | $ | 13.06 | 5.34 | $ | 15,228 | |||||||||||
Granted | 630,000 | $ | 11.45 | $ | - | ||||||||||||
Cancelled/Forfeited | (312,438 | ) | $ | 13.46 | $ | - | |||||||||||
Exercised | (234,924 | ) | $ | 9.81 | $ | 550 | |||||||||||
Outstanding stock options as of September 29, 2013 | 6,724,530 | $ | 13 | 4.69 | $ | 609 | |||||||||||
Total vested and exercisable as of September 29, 2013 | 4,608,375 | $ | 13.53 | 4.29 | $ | 307 | |||||||||||
No income tax benefit was realized from stock option exercises for the three and nine months ended September 29, 2013. | |||||||||||||||||
The following table summarizes RSU award activities and related information for the nine months ended September 29, 2013: | |||||||||||||||||
RSU | |||||||||||||||||
Number of | Weighted Average | ||||||||||||||||
Shares | Grant-date | ||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding as of December 30, 2012 | 2,518,916 | $ | 13.72 | ||||||||||||||
Granted | 990,343 | $ | 12.41 | ||||||||||||||
Cancelled/Forfeited | (297,033 | ) | $ | 12.75 | |||||||||||||
Vested | (891,868 | ) | $ | 11.66 | |||||||||||||
Outstanding as of September 29, 2013 | 2,320,358 | $ | 14.07 | ||||||||||||||
The following table summarizes key executive RSU and PSU award activities and related information for the nine months ended September 29, 2013. | |||||||||||||||||
Key Executive RSU | PSU | ||||||||||||||||
Number of | Weighted Average | Number of | Weighted Average | ||||||||||||||
Shares | Grant-date | Shares | Grant-date | ||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Outstanding as of December 30, 2012 | 1,792,171 | $ | 12.02 | - | $ | - | |||||||||||
Granted | - | $ | - | 376,000 | $ | 7.4 | |||||||||||
Cancelled/Forfeited | (11,668 | ) | $ | 10.25 | (24,000 | ) | $ | 7.4 | |||||||||
Vested | (781,049 | ) | $ | 11.52 | - | $ | - | ||||||||||
Outstanding as of September 29, 2013 | 999,454 | $ | 12.43 | 352,000 | $ | 7.4 | |||||||||||
Note_7_Net_Income_loss_Per_Sha
Note 7. Net Income (loss) Per Share | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
7. Net Income (loss) Per Share | |||||||||||||||||
Basic net income (loss) per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share represents the earnings attributable to each share of common stock after giving effect to all potentially dilutive securities which were outstanding during the period. The dilutive effect of outstanding options and RSUs is reflected in diluted net income (loss) per share by application of the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. On August 26, 2013, Spansion LLC, a wholly-owned subsidiary of the Company, issued $150.0 million of Senior Exchangeable Notes due 2020 (“the Notes”) in a private placement. The Notes can be settled either by cash or shares of common stock of the Company, or a combination of both at the discretion of the Company. The potential dilution impact of the Notes is computed using the if-converted method. The if-converted method is used for convertible securities that have a potential for sharing in earnings as common stock. Thus, the interest expense less income tax effects applicable to the Notes are not recognized in net income(loss) to determine basic and diluted net income (loss) per share and the weighted–average number of shares is adjusted to reflect the assumed conversion as of the beginning of the year or actual date of issuance if later. | |||||||||||||||||
The following table presents the computation of basic and diluted net income (loss) per share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September | September | September | September | ||||||||||||||
29, 2013 | 30, 2012 | 29, 2013 | 30, 2012 | ||||||||||||||
(in thousands except for per-share amounts) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) | $ | (36,904 | ) | $ | 5,140 | $ | (54,570 | ) | $ | 18,019 | |||||||
Denominator: | |||||||||||||||||
Denominator for basic net income per share, weighted average shares | 58,785 | 60,139 | 58,506 | 59,932 | |||||||||||||
Effect of dilutive RSUs and Options | - | 681 | - | 843 | |||||||||||||
Denominator for diluted net income per share, weighted average shares | 58,785 | 60,820 | 58,506 | 60,775 | |||||||||||||
Basic net income (loss) per share | $ | (0.63 | ) | $ | 0.09 | $ | (0.93 | ) | $ | 0.3 | |||||||
Diluted net income (loss) per share | $ | (0.63 | ) | $ | 0.08 | $ | (0.93 | ) | $ | 0.3 | |||||||
Potentially dilutive shares excluded from the diluted income per share computation because their effect would have been anti-dilutive | |||||||||||||||||
- RSUs and Options | 4,441 | 6,704 | 4,555 | 7,367 | |||||||||||||
- Conversion of Senior Exchangeable Notes | 3,996 | - | 1,352 | - | |||||||||||||
Total antidilutive shares | 8,437 | 6,704 | 5,907 | 7,367 | |||||||||||||
Note_8_Intangible_Assets_and_G
Note 8. Intangible Assets and Goodwill | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||
8. Intangible Assets and Goodwill | |||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||
The following table presents the balance of intangible assets as of the dates indicated below: | |||||||||||||||||||||||||||||
29-Sep-13 | 30-Dec-12 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Gross Amount | Additions | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | |||||||||||||||||||||||
Developed technology | $ | 111,376 | $ | 29,100 | $ | (48,451 | ) | $ | 92,025 | $ | 111,376 | $ | (35,386 | ) | $ | 75,990 | |||||||||||||
Customer relationships | 92,080 | 18,800 | (33,781 | ) | 77,099 | 93,264 | (25,191 | ) | 68,073 | ||||||||||||||||||||
Trade names | 8,252 | 1,400 | (4,711 | ) | 4,941 | 8,374 | (3,284 | ) | 5,090 | ||||||||||||||||||||
Trademarks | - | 2,700 | (58 | ) | 2,642 | - | - | - | |||||||||||||||||||||
In-process technology | - | 500 | - | 500 | - | - | - | ||||||||||||||||||||||
Total Intangible Assets | $ | 211,708 | $ | 52,500 | $ | (87,001 | ) | $ | 177,207 | $ | 213,014 | $ | (63,861 | ) | $ | 149,153 | |||||||||||||
On August 1, 2013, the Company acquired the AM Business of FSL for a purchase consideration of $158.5 million ($149.9 million, net of cash acquired). The Company recorded intangible assets of $52.5 million as of the acquisition date. Please see Note 3 for further details relating to the intangible assets recorded as part of the acquisition. | |||||||||||||||||||||||||||||
The actual amortization expense and estimated future amortization expense for intangible assets are summarized below: | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Amortization expense | $ | 9,514 | $ | 6,813 | $ | 23,140 | $ | 20,792 | |||||||||||||||||||||
Estimated Future Amortization | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Fiscal 2013 (remaining 3 months) | $ | 10,135 | |||||||||||||||||||||||||||
Fiscal 2014 | 40,193 | ||||||||||||||||||||||||||||
Fiscal 2015 | 38,920 | ||||||||||||||||||||||||||||
Fiscal 2016 | 32,550 | ||||||||||||||||||||||||||||
Fiscal 2017 | 21,069 | ||||||||||||||||||||||||||||
Fiscal 2018 and beyond | 33,840 | ||||||||||||||||||||||||||||
Total | $ | 176,707 | |||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||
The following table presents the balance of goodwill as of the dates indicated below: | |||||||||||||||||||||||||||||
29-Sep-13 | 30-Dec-12 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Goodwill | $ | 166,584 | $ | 166,931 | |||||||||||||||||||||||||
The changes in the carrying amount of goodwill and gross balance of intangibles assets since December 30, 2012 resulted from foreign currency translation adjustments. |
Note_9_Financing_arrangements
Note 9. Financing arrangements | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
9. Financing arrangements | |||||||||
The following table summarizes the Company’s debt: | |||||||||
29-Sep-13 | 30-Dec-12 | ||||||||
(in thousands) | |||||||||
Debt obligations: | |||||||||
Term Loan | $ | 214,496 | $ | 216,295 | |||||
2.0% Senior Exchangeable Notes | 110,609 | - | |||||||
7.875% Senior Unsecured Notes | 94,064 | 200,000 | |||||||
Total debt | $ | 419,169 | $ | 416,295 | |||||
Less: current portion | 5,380 | 5,382 | |||||||
Long-term debt | $ | 413,789 | $ | 410,913 | |||||
2.00% Senior Exchangeable Notes | |||||||||
On August 26, 2013, Spansion LLC, a wholly-owned subsidiary of the Company, issued $150.0 million of Senior Exchangeable Notes due 2020 in a private placement. The Notes are governed by an Indenture, dated August 26, 2013, between the Company and Wells Fargo Bank, National Association, as Trustee. They are fully and unconditionally guaranteed on a senior unsecured basis by the Company and Spansion Technology LLC. The Notes will mature on September 1, 2020, unless earlier repurchased or converted, and bear interest of 2.0% per year payable semi-annually in arrears on March 1 and September 1, commencing on March 1, 2014. The Notes may be due and payable immediately in certain events of default. | |||||||||
The Notes are exchangeable for an initial exchange rate of 72.0929 shares of common stock per $1,000 principal amount of the Notes (equivalent to an initial exchange price of approximately $13.87 per share) subject to adjustments for anti-dilutive issuances and make-whole adjustments upon a fundamental change. A fundamental change includes a change in control, delisting of the Company’s stock and liquidation, consolidation or merger of the Company. Prior to June 1, 2020, the Notes will be exchangeable under certain specified circumstances as described in the Indenture. | |||||||||
The Notes were issued at face value, resulting in net proceeds of approximately $145.5 million after related offering expenses. In accounting for the Notes at issuance, the Company separated the Notes into debt and equity components according to the accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion. The carrying amount of the debt component, which approximates its fair value, was estimated by using an interest rate for nonconvertible debt, with terms similar to the Notes. The excess of the principal amount of the Notes over the fair value of the debt component was recorded as a debt discount and a corresponding increase in additional paid-in capital. The debt discount is accreted to the carrying value of the Notes over their term as interest expense using the interest method. The amount recorded to additional paid-in capital is not to be remeasured as long as it continues to meet the conditions for equity classification. Upon issuance of the Notes, the Company recorded $110.2 million as debt and $39.8 million as additional paid-in capital in Stockholders’equity. | |||||||||
The Company incurred transaction costs of approximately $5.0 million relating to the issuance of the Notes. In accounting for these costs, the Company allocated the costs of the offering in proportion to the fair value of the debt and equity recognized in accordance with the accounting standards. The transaction costs allocated to the debt component of approximately $3.6 million were recorded as deferred offering costs in other non-current assets and are being amortized as interest expense over the term of the Notes. The transaction costs allocated to the equity component of approximately $1.3 million were recorded to additional paid-in capital. | |||||||||
The net carrying amount of the liability component of the Notes consists of the following: | |||||||||
29-Sep-13 | |||||||||
(in thousands) | |||||||||
Principal amount | $ | 150,000 | |||||||
Unamortized debt discount | $ | 39,391 | |||||||
Net carrying value | $ | 110,609 | |||||||
The following table presents the interest expense recognized on the Notes: | |||||||||
Three Months Ended | |||||||||
29-Sep-13 | |||||||||
(in thousands) | |||||||||
Contractual interest expense at 2% per annum | $ | 290 | |||||||
Amortization of debt issuance costs | 50 | ||||||||
Accretion of debt discount | 432 | ||||||||
Total | $ | 772 | |||||||
Capped Calls | |||||||||
In connection with the issuance of the Notes, the Company entered into capped call transactions with certain bank counterparties to reduce the risk of potential dilution of the Company’s common stock upon the exchange of the Notes. The capped call transactions have a strike price of approximately $13.87 and a cap price of approximately $18.14, and are exercisable when and if the Notes are converted. If upon conversion of the Convertible Notes, the price of the Company’s common stock is above the strike price of the capped calls, the counterparties will deliver shares of the Company’s common stock and/or cash with an aggregate value approximately equal to the difference between the price of the Company’s common stock at the conversion date (as defined, with a maximum price for purposes of this calculation equal to the cap price) and the strike price, multiplied by the number of shares of the Company’s common stock related to the capped call transactions being exercised. The capped call expires on September 1, 2020. The Company paid $15.4 million for these capped calls and recorded the payment as a charge to additional paid-in capital. | |||||||||
7.875% Senior Unsecured Notes | |||||||||
On August 26, 2013, the Company used proceeds from the issuance and sale of the Notes to repurchase $105.9 million of the 7.875% Senior Unsecured Notes. | |||||||||
Revolving Credit Facility | |||||||||
On September 27, 2013, the Company amended its revolving credit facility (the “2012 Revolving Credit Facility”) with Morgan Stanley Bank, N.A and other financial institutions to increase the revolving loan commitment from $50 million to $70 million. The amendment to Revolving Credit Facility contains additional covenants requiring: (a) the consolidated quick ratio as determined on the last day of any fiscal quarter to not be less than 1.25 to 1.0, and (b) the amount of consolidated cash, cash equivalent and other short-term marketable investments to not be less than $150 million. | |||||||||
The Company is in compliance of all the covenants under its existing debt arrangements as of September 29, 2013. |
Note_10_Fair_Value_Measurement
Note 10. Fair Value Measurement | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||||||||||||||
10. Fair Value Measurement | |||||||||||||||||||||||||||||||||
The Company measures its cash equivalents, marketable securities, foreign currency forward contracts and interest rate derivative contracts at fair value. Fair value is an exit price, representing the amount that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: | |||||||||||||||||||||||||||||||||
Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||||||||||||||||||
Level 2—Include other inputs that are directly or indirectly observable in the marketplace. | |||||||||||||||||||||||||||||||||
Level 3—Unobservable inputs that are supported by little or no market activities. | |||||||||||||||||||||||||||||||||
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||||||||||||||||||||||
Cash equivalents, auction rate securities and marketable securities are classified within Level 1 or Level 2. This is because the Company values them using quoted market prices or alternative pricing sources and models utilizing observable market inputs. The foreign exchange forward contracts and interest rate derivative contracts are classified as Level 2 because the valuation inputs are based on quoted prices and observable market data of similar instruments. The Company principally executes its foreign currency contracts in the retail market in an over-the-counter environment with a relatively high level of price transparency. The market participants and the Company’s counterparties are large money center banks and regional banks. The valuation inputs for the Company’s foreign currency contracts are based on quoted prices and quoted pricing intervals from public data sources (specifically, spot exchange rates, LIBOR rates and credit default rates) and do not involve management judgment. In determining the fair value of the Company’s interest rate swap, the Company uses the present value of expected cash flows based on observable market interest rate yield curves and interest rate volatility commensurate with the term of each instrument. | |||||||||||||||||||||||||||||||||
The fair value measurements of the Company’s financial assets and liabilities consisted of the following types of instruments categorized in the table below based upon the fair value hierarchy: | |||||||||||||||||||||||||||||||||
29-Sep-13 | 30-Dec-12 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Money market funds | $ | 4,844 | $ | - | $ | - | $ | 4,844 | -1 | $ | 1,181 | $ | - | $ | - | $ | 1,181 | -2 | |||||||||||||||
Commercial paper | - | - | - | - | -1 | - | 14,980 | - | 14,980 | -2 | |||||||||||||||||||||||
Foreign Exchange Forward Contracts | - | 5,199 | - | 5,199 | - | 3,032 | - | 3,032 | |||||||||||||||||||||||||
Auction rate securities | - | - | - | - | - | 1,530 | - | 1,530 | |||||||||||||||||||||||||
Total financial assets | $ | 4,844 | $ | 5,199 | $ | - | $ | 10,043 | $ | 1,181 | $ | 19,542 | $ | - | 20,723 | ||||||||||||||||||
Interest rate swaps | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 514 | $ | - | $ | 514 | |||||||||||||||||
Foreign Exchange Forward Contracts | $ | 22 | $ | 22 | $ | - | $ | 296 | $ | - | $ | 296 | |||||||||||||||||||||
Total financial liabilities | $ | - | $ | 22 | $ | - | $ | 22 | $ | - | $ | 810 | $ | - | $ | 810 | |||||||||||||||||
(1) Total cash and cash equivalents, short-term investments of $228.4 million as of September 29, 2013 includes cash of $209.5 million held in operating accounts, $4.8 million in money market funds and $14.0 million held in time deposit accounts. | |||||||||||||||||||||||||||||||||
(2) Total cash and cash equivalents, short-term investments of $313.9 million as of December 30, 2012 includes cash of $297.7 million held in operating accounts, $1.2 million in money market funds and $15.0 million in commercial paper. | |||||||||||||||||||||||||||||||||
Fair Value of Other Financial Instruments Not Carried At Fair Value | |||||||||||||||||||||||||||||||||
The Company’s Term Loan, 7.875% Senior Unsecured Notes and Senior Exchangeable Notes are traded in the market and the fair value is Level 1, and is based on the quoted market price as of September 29, 2013 and December 30, 2012. The carrying amounts and estimated fair values of the Company’s debt instruments are as follows: | |||||||||||||||||||||||||||||||||
29-Sep-13 | 30-Dec-12 | ||||||||||||||||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||||||||||||||||||
Value | Fair Value | Value | Fair Value | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Debt traded in the market: | |||||||||||||||||||||||||||||||||
Term Loan | $ | 214,496 | $ | 215,568 | $ | 216,295 | $ | 217,917 | |||||||||||||||||||||||||
2.0% Senior Exchangeable Notes | 110,609 | 107,014 | - | - | |||||||||||||||||||||||||||||
7.875% Senior Unsecured Notes | 94,064 | 97,591 | 200,000 | 201,000 | |||||||||||||||||||||||||||||
Total Debt Obligations | $ | 419,169 | $ | 420,173 | $ | 416,295 | $ | 418,917 | |||||||||||||||||||||||||
In connection with the issuance of the Notes, the Company purchased capped calls from certain counterparties. The initial fair value of the capped calls of $15.4 million was recorded within stockholders’ equity which approximated their carrying value. The fair value of the capped calls is not remeasured each reporting period. | |||||||||||||||||||||||||||||||||
The fair value of the Company’s cash equivalents, accounts receivable, accounts payable and other current liabilities approximates their carrying value. |
Note_11_Derivative_Financial_I
Note 11. Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | ||||||||||||||||
11. Derivative Financial Instruments | |||||||||||||||||
Beginning in the second quarter of fiscal 2012, the Company entered into multiple foreign exchange forward contracts to hedge certain operational exposures resulting from movements in Japanese yen (JPY) exchange rates. The Company’s hedging policy is designed to mitigate the impact of foreign currency exchange rate movements on operating results. Some of these foreign currency forward contracts were considered to be economic hedges that were not designated as hedging instruments while others were designated as cash flow hedges. Whether designated or undesignated, these forward contracts protect the Company against the variability of forecasted foreign currency cash flows resulting from revenues and net asset or liability positions designated in currencies other than the U.S. dollar and are not speculative in nature. | |||||||||||||||||
Cash Flow Hedges | |||||||||||||||||
The Company’s foreign currency forward contracts that were designated as cash flow hedges are carried at fair value and have maturities between three and eight months. As of September 29, 2013, the Company had outstanding forward contracts to buy USD for $30.9 million. Over the next twelve months, the Company expects to reclassify $3.6 million from accumulated other comprehensive gain to earnings as the related forecasted transactions occur. | |||||||||||||||||
The following table summarizes the activity related to derivatives in accumulated other comprehensive loss, net of tax: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Beginning Balance | $ | 7,058 | $ | 217 | $ | 1 | $ | - | |||||||||
Net (gain) loss reclassified into earnings on cash flow hedges (effective portion) | (3,113 | ) | 538 | (7,701 | ) | 538 | |||||||||||
Net gain reclassified into earnings on cash flow hedges (ineffective portion) | - | - | (2,415 | ) | - | ||||||||||||
Net unrealized hedge gain (loss) arising during the period | (391 | ) | (1,639 | ) | 13,669 | (1,422 | ) | ||||||||||
Ending Balance | $ | 3,554 | $ | (884 | ) | $ | 3,554 | $ | (884 | ) | |||||||
Non Designated Hedges | |||||||||||||||||
The Company hedges net receivables and payables denominated in Japanese yen and expenses incurred in Thai baht with foreign exchange forward contracts to reduce the risk that its earnings and cash flows will be affected by changes in foreign currency exchange rates. These forward contracts do not subject the Company to additional material financial statement risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the monetary assets and liabilities and underlying transactions being hedged, assuming that the derivative counterparty performs. The notional principal of foreign exchange forward contracts outstanding to buy USD was $38.4 million as of September 29, 2013 and $32.8 million as of December 30, 2012. In the second quarter of fiscal 2013, the Company also recorded a gain of $2.4 million from the mark to market on certain JPY hedges which were previously designated as cash flow hedges, as the Company concluded that the related forecasted transactions were probable to not occur during the hedge period or the additional two months thereafter. | |||||||||||||||||
On August 1, 2013, the Company acquired FSL’s AM Business. In the second quarter of fiscal 2013, the Company had entered into an economic hedge using foreign exchange forward contracts and options to mitigate the impact of foreign currency fluctuations on the purchase price which was denominated in currencies other than U.S. dollar. These contracts were settled during the third quarter and were no longer outstanding as of September 29, 2013. | |||||||||||||||||
These forward contracts were not designated hedges and were carried at fair value with changes in the fair value recorded in interest and other income (expense) in the accompanying Condensed Consolidated Statements of Operations. | |||||||||||||||||
Interest Rate Swap | |||||||||||||||||
The Company entered into a series of interest rate swaps to manage the interest rate risk on its Senior Secured Term Loan (the Term Loan) in the third quarter of fiscal 2010. The swap agreements expired on May 17, 2013. The mark-to-market of the swap has been reported as a component of interest expense because it does not qualify as a cash flow hedge. | |||||||||||||||||
The effect of derivative instruments on the Condensed Consolidated Statements of Operations for the three and nine months ended September 29, 2013 and September 30, 2012 was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
(in thousands) | |||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||
Foreign Exchange Forward Contracts | |||||||||||||||||
Net unrealized gain (loss) recognized in OCI (1) | $ | (391 | ) | $ | (1,639 | ) | $ | 13,669 | $ | (1,422 | ) | ||||||
Net (gain) loss reclassified from accumulated OCI into income (effective portion)(2) | $ | (3,113 | ) | $ | 538 | $ | (7,701 | ) | $ | 538 | |||||||
Net gain reclassified from accumulated OCI into income (ineffective portion) (3) | $ | - | $ | - | $ | (2,415 | ) | $ | - | ||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||
Net gain (loss) recognized in income | |||||||||||||||||
Swap interest expense (4) | $ | - | $ | (16 | ) | $ | (8 | ) | $ | (134 | ) | ||||||
Foreign Exchange Forward Contracts (5) | $ | (1,053 | ) | $ | 1,221 | $ | (813 | ) | $ | 1,464 | |||||||
Foreign Exchange Options Contracts (5) | $ | (197 | ) | $ | - | $ | - | $ | - | ||||||||
(1) Net change in the fair value of the effective portion classified in other comprehensive income (OCI) | |||||||||||||||||
(2) Effective portion classified as net product revenue | |||||||||||||||||
(3) Classified in interest income and other (expense) | |||||||||||||||||
(4) Classified in interest expense | |||||||||||||||||
(5) Classified in interest and other income (expense) | |||||||||||||||||
The gross fair values of derivative instruments on the Condensed Consolidated Balance Sheets were as follows: | |||||||||||||||||
29-Sep-13 | 30-Dec-12 | ||||||||||||||||
Balance sheet location | Derivatives designated as | Derivatives not designated as | Derivatives designated as | Derivatives | |||||||||||||
hedging | hedging | hedging | not | ||||||||||||||
instruments | instruments | instruments | designated as | ||||||||||||||
hedging | |||||||||||||||||
instruments | |||||||||||||||||
(in thousands) | |||||||||||||||||
Prepaid expenses and other current assets | |||||||||||||||||
Foreign Exchange Forward Contracts | $ | 2,626 | $ | 2,573 | $ | - | $ | 3,032 | |||||||||
Other accrued liabilities | |||||||||||||||||
Interest rate Swap | $ | - | $ | - | $ | - | $ | 514 | |||||||||
Foreign Exchange Forward Contracts | $ | - | $ | 22 | $ | - | $ | 296 | |||||||||
Note_12_Pension_and_PostRetire
Note 12. Pension and Post-Retirement Benefits | 9 Months Ended |
Sep. 29, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
12. Pension and Post-Retirement Benefits | |
On August 1, 2013, the Company acquired the AM Business of FSL. Pursuant to the SPA, certain transferred employees from the AM business were enrolled in the Pension Plan. The Company by agreement with Fujitsu, is required to fund the proportional benefit obligations attributable to the Company’s employees enrolled in the Pension Plan. The benefits provided by the Pension Plan are based on employee’s years of service and compensation levels. The Company accounts for its participation in the plan as a multiemployer plan wherein the expense recorded for the Pension Plan is equal to the annual cash contributions. The Company recorded pension expense of $1.0 million for the quarter ended September 29, 2013 and had an unpaid pension liability of $0.5 million as of September 29, 2013. The Company has also recorded $23.9 million as Restricted Cash and $23.9 million in Accrued Compensation and Benefits in the Condensed Consolidated Balance Sheet for the underfunded portion of the plan. Please see Note 3 for further details of the acquisition. | |
The Company may also be subject to additional liabilities imposed by law as a result of its participation in the Pension Plan. The Pension Plan imposes certain liabilities upon an employer who is a contributor to a multi-employer pension plan if the employer withdraws from the plan or the plan is terminated or experiences a mass withdrawal. These liabilities include an allocable share of the unfunded vested benefits in the plan for all plan participants, not merely the benefits payable to a contributing employer’s own retirees. As a result, participating employers may bear a higher proportion of liability for unfunded vested benefits if other participating employers cease to contribute or withdraw, with the reallocation of liability being more acute in cases when a withdrawn employer is insolvent or otherwise fails to pay its withdrawal liability. |
Note_13_Income_Taxes
Note 13. Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||||||
13. Income Taxes | |||||||||||||||||
The following table presents the Company’s income tax expense (benefit): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
(in thousands) | |||||||||||||||||
Income tax expense (benefit) | $ | (1,644 | ) | $ | 2,757 | $ | (891 | ) | $ | 9,572 | |||||||
The Company recorded an income tax benefit of $1.6 million and an expense of $2.8 million for the three months ended September 29, 2013 and September 30, 2012, respectively. The Company’s income tax benefit was $0.9 million and income tax expense was $9.6 million for the nine months ended September 29, 2013 and September 30, 2012, respectively. | |||||||||||||||||
The tax benefit for the three months and nine months ended September 29, 2013 was primarily attributable to pre-tax income in foreign jurisdictions and withholding taxes related to Samsung licensing revenue. This was offset by the release of reserves for uncertain tax positions in foreign locations and the tax impact from the Microcontroller and Analog business acquisition. | |||||||||||||||||
The tax expense for the three and nine months ended September 30, 2012 was primarily attributable to pre-tax income in foreign jurisdictions, withholding taxes related to Samsung licensing revenue and the impact from the sale of land and building in Kuala Lumpur offset by the release of reserves for uncertain tax positions in foreign locations. | |||||||||||||||||
As of September 29, 2013, all of the Company's U.S. deferred tax assets, net of deferred tax liabilities continue to be subject to a full valuation allowance. The valuation allowance is based on the Company's assessment that it is more likely than not that the deferred tax assets will not be realizable in the foreseeable future. | |||||||||||||||||
As of December 30, 2012, the Company had U.S. federal and state net operating loss carry forwards of approximately $989.9 million and $218.8 million, respectively. Approximately $489.7 million of the federal net operating loss carry forwards are subject to an annual limitation of $27.2 million. The federal and state net operating losses, if not utilized, expire from 2016 to 2031. The Company also has U.S. foreign tax credit carryovers of $1.0 million which expire from 2020 to 2021 and research and development credits of $1.2 million which expire in 2032. The Company also has state tax credits of $17.6 million, which includes California state tax credits of $16.8 million that can be carried forward indefinitely. | |||||||||||||||||
If the Company were to undergo an “ownership change” for purposes of Section 382 of the Internal Revenue Code of 1986, as amended, its ability to utilize its federal net operating loss carry forwards could be limited under certain provisions of the Internal Revenue Code. As a result, the Company could incur greater tax liabilities than it would in the absence of such a limitation and any incurred liabilities could materially adversely affect the Company’s results of operations and financial condition. |
Note_14_Restructuring_and_Othe
Note 14. Restructuring and Others | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | ||||||||||||||||
14. Restructuring and Others | |||||||||||||||||
Fiscal 2013 Restructuring Plan | |||||||||||||||||
Beginning in the third quarter of fiscal 2013, in an effort to lower its expense levels, given the competitive pricing pressures and slower than expected growth in Japan revenues from Flash products, the Company implemented a reduction in force to rationalize its global workforce. | |||||||||||||||||
The following tables present a summary of restructuring activities related to 2013 restructuring plan described above: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
29-Sep-13 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Accrued restructuring balance, beginning of period | $ | - | |||||||||||||||
Provision: | |||||||||||||||||
Severance and others | 6,264 | ||||||||||||||||
Restructuring charges | 6,264 | ||||||||||||||||
Non-cash adjustments (1) | (230 | ) | |||||||||||||||
Cash payments | (4,351 | ) | |||||||||||||||
Accrued restructuring balance, end of period | $ | 1,683 | |||||||||||||||
(1) Non cash adjustments mainly relate to intangibles written off. | |||||||||||||||||
Fiscal 2011 Restructuring Plan | |||||||||||||||||
Beginning in the fourth quarter of fiscal 2011, the Company initiated a restructuring plan as part of a company-wide cost saving initiative aimed at reducing operating costs in light of global economic challenges and rapid changes in the China wireless and handset market. In the interest of reducing costs and improving efficiencies, the Company announced reduction of headcount in several locations and the closure of its assembly, test, mark and pack facility in Kuala Lumpur, Malaysia (the KL facility), which was completed in the first quarter of fiscal 2012. Total costs incurred under the fiscal 2011 restructuring plan were $22.6 million. | |||||||||||||||||
The following tables present a summary of restructuring activities related to 2011 restructuring plan described above: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
(in thousands) | |||||||||||||||||
Accrued restructuring balance, beginning of period | $ | 30 | $ | 785 | $ | 538 | $ | 8,087 | |||||||||
Provision: | |||||||||||||||||
Gain on sale of equipment | - | - | - | (3,798 | ) | ||||||||||||
Asset relocation fees | - | 854 | - | 4,686 | |||||||||||||
Asset impairment charges | - | - | - | 2,070 | |||||||||||||
Severance and others | - | 1,009 | - | 3,550 | |||||||||||||
Restructuring charges | - | 1,863 | - | 6,508 | |||||||||||||
Non-cash adjustments (1) | - | (43 | ) | (75 | ) | 1,557 | |||||||||||
Cash payments | (30 | ) | (344 | ) | (463 | ) | (13,891 | ) | |||||||||
Accrued restructuring balance, end of period | - | $ | 2,261 | $ | - | $ | 2,261 | ||||||||||
(1) Non cash adjustments relate to gain on sale of equipment, asset impairment charges and foreign currency translations. | |||||||||||||||||
Fiscal 2009/10 Restructuring Plan | |||||||||||||||||
In fiscal 2009 and 2010, the Company implemented certain restructuring measures including workforce reductions and the sale of its plant in Suzhou, China. The Company incurred restructuring expenses related to employee termination benefits and fixed asset relocation, depreciation and disposal. During the first quarter of fiscal 2012, there was a restructuring credit of $0.8 million as a result of the Company having prevailed in a labor-related lawsuit in conjunction with the 2009 restructuring activities in Thailand. Total costs incurred under the 2009/10 Restructuring Plan were $43.2 million. | |||||||||||||||||
The Company does not expect to incur further restructuring charges under the 2011 and 2009/10 Restructuring Plans. |
Note_15_Commitments_and_Contin
Note 15. Commitments and Contingencies | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||||||||||||||
15. Commitments and Contingencies | |||||||||||||||||
Purchase Commitments | |||||||||||||||||
The Company had $141.4 million of purchase commitments with certain suppliers, primarily for inventory items as of September 29, 2013. | |||||||||||||||||
Guarantees | |||||||||||||||||
In the normal course of business, the Company is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party. It is not possible to predict the maximum potential amount of future payments under these types of agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments under these types of agreements have not had a material adverse effect on business, results of operations or financial condition. | |||||||||||||||||
Income Taxes | |||||||||||||||||
The Company is subject to audit by the Internal Revenue Service (IRS) and various other tax authorities. The Company has reserved for potential adjustments to the provision for income taxes that may result from examinations by, or any negotiated agreements with, these tax authorities, and the Company believes that the final outcome of these examinations or agreements will not have a material effect on the Company’s results of operations. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of tax benefits in the period the Company determines the liabilities are no longer necessary. If the estimates of the federal, state, and foreign income tax liabilities are less than the ultimate assessment, a further charge to expense would result. | |||||||||||||||||
Product Warranties | |||||||||||||||||
The Company generally offers a one-year limited warranty for all its products. Changes in the Company’s liability for product warranty were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September | September 30, | September 29, | September 30, | ||||||||||||||
29, 2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 1,127 | $ | 3,860 | $ | 2,124 | $ | 2,537 | |||||||||
Provision for warranties issued | 760 | 404 | 1,360 | 2,991 | |||||||||||||
Settlements made | (827 | ) | (1,205 | ) | (2,412 | ) | (2,305 | ) | |||||||||
Changes in liability for pre-existing warranties during the period | 106 | (89 | ) | 94 | (253 | ) | |||||||||||
Balance at end of period | $ | 1,166 | $ | 2,970 | $ | 1,166 | $ | 2,970 | |||||||||
Legal Matters | |||||||||||||||||
In the Matter of Certain Flash Memory Chips and Products Containing the Same, Investigation No. 337-TA-893, filed on August 1, 2013 and instituted on September 9, 2013. | |||||||||||||||||
On August 1, 2013, Spansion LLC, a wholly owned subsidiary of the Company, filed a complaint pursuant to Section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. § 1337 (“Section 337”), to request that the U.S. International Trade Commission (“ITC”) institute an investigation relating to the unlawful importation into the United States, the sale for importation, and/or the sale within the United States after importation of certain Macronix flash memory chips (“Macronix Chips”) that infringe the Company’s valid patents, and/or are made, produced or processed under, or by means of, a process covered by the claims of the Company’s patents, and products containing the Macronix Chips. | |||||||||||||||||
On September 9, 2013, the Commission instituted its investigation. Other than the Company, the principal parties, or respondents in the investigation are Macronix International Co, Ltd., of Hsin-chu, Taiwan; Macronix America, Inc., of Milpitas, CA; Macronix Asia Limited of Kanagawa Pref., Japan; Macronix (Hong Kong) Co., Ltd., of Sa Tin, N.T., Hong Kong; Acer Inc. of New Taipei City, Taiwan; Acer America Corporation of San Jose, CA; ASUSTek Computer Inc. of Taipei, Taiwan; Asus Computer International of Fremont, CA; Belkin International, Inc., of Playa Vista, CA; D-Link Corporation of Taipei City, Taiwan; D-Link System, Inc., of Fountain Valley, CA; Netgear Inc., San Jose, CA; Nintendo Co., Ltd., of Kyoto, Japan; and Nintendo of America, Inc., of Redmond, WA. | |||||||||||||||||
Through this investigation, the Company seeks a general exclusion order to exclude from importation all infringing Macronix Chips and downstream products containing such chips. In the event that the ITC is unwilling to issue a general exclusion order, the Company seeks that a limited exclusion order be entered against each named Respondent and its subsidiaries and affiliates in order to remedy the Respondents’ violation of Section 337 and to prevent such future violations by Respondents. The Company has also asked the ITC to issue a cease and desist order to ensure compliance with the requested exclusion orders. | |||||||||||||||||
Spansion LLC v. Macronix International Co., Ltd. et. al., U.S. District Court, Northern District of California. | |||||||||||||||||
On August 1, 2013, Spansion LLC filed a complaint in the U.S. District Court, Northern District of California (San Jose Division), case no. 3:13-cv-03566-JST, against Macronix International Co., Ltd., Macronix America, Inc., Acer Inc., Acer America Corporation, ASUSTek Computer Inc., Asus Computer International (America), Belkin International, Inc., D-Link Systems, Inc., NETGEAR Inc., Nintendo Co., Ltd., and Nintendo of America, Inc. for patent infringement. Spansion has asked for monetary damages as well as permanent injunctive relief to prevent further infringing activity. | |||||||||||||||||
On August 29, 2013, the Company amended its original complaint to delete certain defendants, resulting in the eleven party defendants identified above (“Defendants”), and to make certain additional allegations. | |||||||||||||||||
On October 8, 2013, pursuant to 28 U.S.C. § 1659, each of the Defendants asserted its statutory right to a mandatory stay of all proceedings in the Northern District of California action until the determination of the ITC becomes final (see In the Matter of Certain Flash Memory Chips and Products Containing the Same,, Investigation No. 337-TA-893, U.S. International Trade Commission, above). Because the requested stay is mandated by statute, the Company does not oppose the motion. | |||||||||||||||||
Macronix International Co., LTD. v. Spansion Inc. et. al., U.S. District Court, Eastern District of Virginia. | |||||||||||||||||
On October 2, 2013, Macronix International Co., Ltd. filed a complaint in the U.S. District Court, Eastern District of Virginia, case no. 3:13-cv-679-REP, against Spansion Inc. and Spansion LLC for patent infringement. The Company has not filed an answer or otherwise responded to the complaint. The complaint seeks unspecified monetary damages as well as injunctive relief. | |||||||||||||||||
Besides the above, the Company is a defendant or plantiff in various legal actions that arose in the normal course of business. In the opinion of management, the aggregate liability, if any, with respect to these matters will not have a material adverse effect on the Company's financial condition, result of operations or cash flows. |
Note_16_Ongoing_Bankruptcy_Rel
Note 16. Ongoing Bankruptcy Related Matters | 9 Months Ended |
Sep. 29, 2013 | |
Ongoing Bankruptcy Related Matters [Abstract] | ' |
Ongoing Bankruptcy Related Matters [Text Block] | ' |
16. Ongoing Bankruptcy Related Matters | |
In connection with the Company’s emergence from Chapter 11 bankruptcy proceedings in May 2010, a claims agent was appointed to analyze and, at its discretion, contest outstanding disputed claims totaling $1.5 billion. As of September 29, 2013, the Company had resolved all of these claims with the exception of potential preference claim reserves of $7.2 million. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 29, 2013 | |
Accounting Policies [Abstract] | ' |
Consolidation, Policy [Policy Text Block] | ' |
Principles of Consolidation | |
On August 1, 2013, the Company acquired the Microcontroller and Analog business (AM Business) of Fujitsu Semiconductor Limited (FSL). The unaudited condensed consolidated financial statements include the results of operations of the Company, the AM business commencing as of the acquisition date and all of the Company’s other wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The fiscal 2012 financial statements also include a variable interest entity (VIE) for which the Company was the primary beneficiary through March 31, 2012. The VIE’s financial statements were not significant to the Company’s condensed consolidated financial statements for the periods presented. On April 1, 2012, the Company acquired substantially all assets and assumed certain liabilities of the VIE under an asset purchase agreement and the entity ceased to be a VIE as of the acquisition date. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of the Company’s consolidated financial statements and disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of commitments and contingencies and the reported amounts of revenues and expenses during the reporting periods. Estimates are used to account for the fair value of certain marketable securities, revenue adjustments, the allowance for doubtful accounts, inventory write-downs, valuation of intangible assets, impairment of long-lived assets, legal contingencies, income taxes, stock-based compensation expenses, the fair value of long-term debt, and product warranties. Actual results may differ from those estimates, and such differences may be material to the Company’s condensed consolidated financial statements. |
Note_3_Acquisition_Tables
Note 3. Acquisition (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||||||||||||||
Fair Values | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Cash | 8,595 | ||||||||||||||||
Restricted cash | 32,086 | ||||||||||||||||
Accounts receivable | 1,534 | ||||||||||||||||
Inventory | 104,300 | ||||||||||||||||
Property and equipment, net | 12,143 | ||||||||||||||||
Intangible Assets | |||||||||||||||||
Developed technology | |||||||||||||||||
Automotive microcontrollers | 10,500 | ||||||||||||||||
Consumer microcontrollers | 5,900 | ||||||||||||||||
Analog | 12,700 | ||||||||||||||||
In-Process technology | 500 | ||||||||||||||||
Customer relationships | 18,800 | ||||||||||||||||
Trademarks | 2,700 | ||||||||||||||||
Tradenames | 1,400 | ||||||||||||||||
Deferred tax liability | (3,739 | ) | |||||||||||||||
Japan Pension related underfunded liability | (23,923 | ) | |||||||||||||||
Liability to FSL for excess pension related cash received | (8,163 | ) | |||||||||||||||
Japan employees compensation and benefits liability | (8,585 | ) | |||||||||||||||
Gain on acquisition of Microcontroller and Analog business | (8,205 | ) | |||||||||||||||
Total Purchase Consideration | 158,543 | ||||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Net sales | 314,701 | 386,786 | 947,551 | 1,163,123 | |||||||||||||
Net income (loss) | (24,106 | ) | (46,075 | ) | (159,988 | ) | (169,905 | ) | |||||||||
Net income (loss) per share | |||||||||||||||||
Basic | (0.41 | ) | (0.77 | ) | (2.73 | ) | (2.84 | ) | |||||||||
Diluted | (0.41 | ) | (0.77 | ) | (2.73 | ) | (2.84 | ) |
Note_4_Balance_Sheet_Component1
Note 4. Balance Sheet Components (Tables) | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | ' | ||||||||
29-Sep-13 | 30-Dec-12 | ||||||||
(in thousands) | |||||||||
Cash and cash equivalents | |||||||||
Cash | $ | 188,118 | $ | 258,126 | |||||
Cash equivalents: | |||||||||
Money market funds | 4,844 | 1,181 | |||||||
FDIC insured certificates of deposit | 63 | 2,870 | |||||||
Cash and cash equivalents | $ | 193,025 | $ | 262,177 | |||||
Short-term investments | |||||||||
Commercial paper | $ | - | $ | 14,980 | |||||
Time Deposit | 14,035 | - | |||||||
FDIC insured certificates of deposit | 21,332 | 36,740 | |||||||
Short-term investments | $ | 35,367 | $ | 51,720 | |||||
Account receivable, net | |||||||||
Accounts receivable, gross | $ | 155,578 | $ | 107,127 | |||||
Allowance for doubtful accounts | (372 | ) | (263 | ) | |||||
Account receivable, net | $ | 155,206 | $ | 106,864 | |||||
Inventories | |||||||||
Raw materials | $ | 11,673 | $ | 8,647 | |||||
Work-in-process | 177,029 | 149,722 | |||||||
Finished goods | 68,898 | 23,823 | |||||||
Inventories | $ | 257,600 | $ | 182,192 | |||||
Property, plant and equipment, net | |||||||||
Land | $ | 45,168 | $ | 45,168 | |||||
Buildings and leasehold improvements | 61,601 | 59,807 | |||||||
Equipment | 366,951 | 341,129 | |||||||
Construction in progress | 25,910 | 11,694 | |||||||
Accumulated depreciation and amortization | (313,419 | ) | (281,069 | ) | |||||
Property, plant and equipment, net | $ | 186,211 | $ | 176,728 | |||||
Other Long Term Assets | |||||||||
Long Term License | $ | 33,210 | $ | 10,002 | |||||
Others | 33,751 | 29,169 | |||||||
Other Long Term Assets | $ | 66,961 | $ | 39,171 | |||||
Accrued Compensation and Benefits | |||||||||
Accrued Vacation | $ | 10,372 | $ | 9,404 | |||||
AM business underfunded pension related liability | 23,923 | - | |||||||
Others | 31,311 | 16,676 | |||||||
Accrued Compensation and Benefits | $ | 65,606 | $ | 26,080 | |||||
Accrued Liabilities | |||||||||
Short Term License Liability | $ | 17,948 | $ | 3,377 | |||||
Others | 79,948 | 26,536 | |||||||
Accrued Liabilities | $ | 97,896 | $ | 29,913 |
Note_5_Accumulated_Other_Compr1
Note 5. Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||
Foreign | Net Gains and | Unrealized Gains | Total | ||||||||||||||
Currency | Losses on Cash | and Losses on Available-for-Sale Securities | |||||||||||||||
Translation Adjustment | Flow Hedges | ||||||||||||||||
(in thousands) | |||||||||||||||||
Beginning Balance, December 30, 2012 | $ | (2,685 | ) | $ | 1 | $ | 1,200 | $ | (1,484 | ) | |||||||
Other comprehensive income before reclassification, net of tax | (1,420 | ) | 13,669 | - | 12,249 | ||||||||||||
Amounts reclassified to earnings (ineffective portion) | - | (2,415 | ) | -2 | - | (2,415 | ) | ||||||||||
Amounts reclassified to earnings (effective portion) | - | (7,701 | ) | -1 | - | (7,701 | ) | ||||||||||
Amounts reclassified on sale of Auction Rate Securities | - | - | (1,200 | ) | -2 | (1,200 | ) | ||||||||||
Net other comprehensive income | $ | (1,420 | ) | $ | 3,553 | $ | (1,200 | ) | $ | 933 | |||||||
Ending Balance, September 29, 2013 | $ | (4,105 | ) | $ | 3,554 | $ | - | $ | (551 | ) | |||||||
(1) Reclassified into Net Sales line item of the Condensed Consolidated Statement of Operations. Please see Note 11 for further details. | |||||||||||||||||
(2) Reclassified into Interest and Other Income line item of the Condensed Consolidated Statement of Operations. Please see Note 11 for further details on the ineffective portion of cash flow hedges. |
Note_6_Equity_Incentive_Plan_a1
Note 6. Equity Incentive Plan and Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule Of Shares Available For Grant [Table Text Block] | ' | ||||||||||||||||
Shares Available | |||||||||||||||||
For Grant | |||||||||||||||||
Balance as of December 30, 2012 | 1,103,450 | ||||||||||||||||
Additional shares issuable under 2010 Plan (annual increase for 2013) | 2,577,033 | ||||||||||||||||
Stock options granted, net of forfeitures/cancellations | (317,562 | ) | |||||||||||||||
RSU awards granted, net of forfeitures/cancellations | (693,310 | ) | |||||||||||||||
PSU awards granted, net of forfeitures/cancellations | (340,332 | ) | |||||||||||||||
Balance as of September 29, 2013 | 2,329,279 | ||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
(in thousands) | |||||||||||||||||
Cost of sales | $ | 1,384 | $ | 1,713 | $ | 4,235 | $ | 4,747 | |||||||||
Research and development | 1,952 | 2,350 | 7,420 | 6,045 | |||||||||||||
Sales, general and administrative | 3,692 | 4,698 | 11,669 | 13,384 | |||||||||||||
Stock-based compensation expense before income taxes | 7,028 | 8,761 | 23,324 | 24,176 | |||||||||||||
Stock-based compensation expense after income taxes(1) | $ | 7,028 | $ | 8,761 | $ | 23,324 | $ | 24,176 | |||||||||
(1) There was no income tax benefit related to stock-based compensation because all of the Company's U.S. deferred tax assets, net of U.S. deferred tax liabilities, continue to be subject to a full valuation allowance. | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average fair value of stock options granted | $ | 3.68 | $ | 5.3 | $ | 4.69 | $ | 4.19 | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
Expected volatility | 41.84 | % | 51.24 | % | 47.06 | % | 51.23 | % | |||||||||
Risk-free interest rate | 1.14 | % | 0.5 | % | 0.94 | % | 0.67 | % | |||||||||
Expected term (in years) | 4.35 | 4.35 | 4.35 | 4.35 | |||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
Three and Nine Months Ended | |||||||||||||||||
29-Sep-13 | |||||||||||||||||
Stock price on grant date | $ | 11.5 | |||||||||||||||
Expected volatility | 50.9 | % | |||||||||||||||
Risk-free interest rate | 0.21 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (in Years) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding stock options as of December 30, 2012 | 6,641,892 | $ | 13.06 | 5.34 | $ | 15,228 | |||||||||||
Granted | 630,000 | $ | 11.45 | $ | - | ||||||||||||
Cancelled/Forfeited | (312,438 | ) | $ | 13.46 | $ | - | |||||||||||
Exercised | (234,924 | ) | $ | 9.81 | $ | 550 | |||||||||||
Outstanding stock options as of September 29, 2013 | 6,724,530 | $ | 13 | 4.69 | $ | 609 | |||||||||||
Total vested and exercisable as of September 29, 2013 | 4,608,375 | $ | 13.53 | 4.29 | $ | 307 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||||||||||
RSU | |||||||||||||||||
Number of | Weighted Average | ||||||||||||||||
Shares | Grant-date | ||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding as of December 30, 2012 | 2,518,916 | $ | 13.72 | ||||||||||||||
Granted | 990,343 | $ | 12.41 | ||||||||||||||
Cancelled/Forfeited | (297,033 | ) | $ | 12.75 | |||||||||||||
Vested | (891,868 | ) | $ | 11.66 | |||||||||||||
Outstanding as of September 29, 2013 | 2,320,358 | $ | 14.07 | ||||||||||||||
Key Executive RSU | PSU | ||||||||||||||||
Number of | Weighted Average | Number of | Weighted Average | ||||||||||||||
Shares | Grant-date | Shares | Grant-date | ||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Outstanding as of December 30, 2012 | 1,792,171 | $ | 12.02 | - | $ | - | |||||||||||
Granted | - | $ | - | 376,000 | $ | 7.4 | |||||||||||
Cancelled/Forfeited | (11,668 | ) | $ | 10.25 | (24,000 | ) | $ | 7.4 | |||||||||
Vested | (781,049 | ) | $ | 11.52 | - | $ | - | ||||||||||
Outstanding as of September 29, 2013 | 999,454 | $ | 12.43 | 352,000 | $ | 7.4 |
Note_7_Net_Income_loss_Per_Sha1
Note 7. Net Income (loss) Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September | September | September | September | ||||||||||||||
29, 2013 | 30, 2012 | 29, 2013 | 30, 2012 | ||||||||||||||
(in thousands except for per-share amounts) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) | $ | (36,904 | ) | $ | 5,140 | $ | (54,570 | ) | $ | 18,019 | |||||||
Denominator: | |||||||||||||||||
Denominator for basic net income per share, weighted average shares | 58,785 | 60,139 | 58,506 | 59,932 | |||||||||||||
Effect of dilutive RSUs and Options | - | 681 | - | 843 | |||||||||||||
Denominator for diluted net income per share, weighted average shares | 58,785 | 60,820 | 58,506 | 60,775 | |||||||||||||
Basic net income (loss) per share | $ | (0.63 | ) | $ | 0.09 | $ | (0.93 | ) | $ | 0.3 | |||||||
Diluted net income (loss) per share | $ | (0.63 | ) | $ | 0.08 | $ | (0.93 | ) | $ | 0.3 | |||||||
Potentially dilutive shares excluded from the diluted income per share computation because their effect would have been anti-dilutive | |||||||||||||||||
- RSUs and Options | 4,441 | 6,704 | 4,555 | 7,367 | |||||||||||||
- Conversion of Senior Exchangeable Notes | 3,996 | - | 1,352 | - | |||||||||||||
Total antidilutive shares | 8,437 | 6,704 | 5,907 | 7,367 |
Note_8_Intangible_Assets_and_G1
Note 8. Intangible Assets and Goodwill (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||||||||||||||||||
29-Sep-13 | 30-Dec-12 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Gross Amount | Additions | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | |||||||||||||||||||||||
Developed technology | $ | 111,376 | $ | 29,100 | $ | (48,451 | ) | $ | 92,025 | $ | 111,376 | $ | (35,386 | ) | $ | 75,990 | |||||||||||||
Customer relationships | 92,080 | 18,800 | (33,781 | ) | 77,099 | 93,264 | (25,191 | ) | 68,073 | ||||||||||||||||||||
Trade names | 8,252 | 1,400 | (4,711 | ) | 4,941 | 8,374 | (3,284 | ) | 5,090 | ||||||||||||||||||||
Trademarks | - | 2,700 | (58 | ) | 2,642 | - | - | - | |||||||||||||||||||||
In-process technology | - | 500 | - | 500 | - | - | - | ||||||||||||||||||||||
Total Intangible Assets | $ | 211,708 | $ | 52,500 | $ | (87,001 | ) | $ | 177,207 | $ | 213,014 | $ | (63,861 | ) | $ | 149,153 | |||||||||||||
Schedule of Actual Amortization Expense [Table Text Block] | ' | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Amortization expense | $ | 9,514 | $ | 6,813 | $ | 23,140 | $ | 20,792 | |||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||||||||||||||||||
Estimated Future Amortization | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Fiscal 2013 (remaining 3 months) | $ | 10,135 | |||||||||||||||||||||||||||
Fiscal 2014 | 40,193 | ||||||||||||||||||||||||||||
Fiscal 2015 | 38,920 | ||||||||||||||||||||||||||||
Fiscal 2016 | 32,550 | ||||||||||||||||||||||||||||
Fiscal 2017 | 21,069 | ||||||||||||||||||||||||||||
Fiscal 2018 and beyond | 33,840 | ||||||||||||||||||||||||||||
Total | $ | 176,707 | |||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | ' | ||||||||||||||||||||||||||||
29-Sep-13 | 30-Dec-12 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Goodwill | $ | 166,584 | $ | 166,931 |
Note_9_Financing_arrangements_
Note 9. Financing arrangements (Tables) | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||
29-Sep-13 | 30-Dec-12 | ||||||||
(in thousands) | |||||||||
Debt obligations: | |||||||||
Term Loan | $ | 214,496 | $ | 216,295 | |||||
2.0% Senior Exchangeable Notes | 110,609 | - | |||||||
7.875% Senior Unsecured Notes | 94,064 | 200,000 | |||||||
Total debt | $ | 419,169 | $ | 416,295 | |||||
Less: current portion | 5,380 | 5,382 | |||||||
Long-term debt | $ | 413,789 | $ | 410,913 | |||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | ' | ||||||||
29-Sep-13 | |||||||||
(in thousands) | |||||||||
Principal amount | $ | 150,000 | |||||||
Unamortized debt discount | $ | 39,391 | |||||||
Net carrying value | $ | 110,609 | |||||||
Interest Income and Interest Expense Disclosure [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
29-Sep-13 | |||||||||
(in thousands) | |||||||||
Contractual interest expense at 2% per annum | $ | 290 | |||||||
Amortization of debt issuance costs | 50 | ||||||||
Accretion of debt discount | 432 | ||||||||
Total | $ | 772 |
Note_10_Fair_Value_Measurement1
Note 10. Fair Value Measurement (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
29-Sep-13 | 30-Dec-12 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Money market funds | $ | 4,844 | $ | - | $ | - | $ | 4,844 | -1 | $ | 1,181 | $ | - | $ | - | $ | 1,181 | -2 | |||||||||||||||
Commercial paper | - | - | - | - | -1 | - | 14,980 | - | 14,980 | -2 | |||||||||||||||||||||||
Foreign Exchange Forward Contracts | - | 5,199 | - | 5,199 | - | 3,032 | - | 3,032 | |||||||||||||||||||||||||
Auction rate securities | - | - | - | - | - | 1,530 | - | 1,530 | |||||||||||||||||||||||||
Total financial assets | $ | 4,844 | $ | 5,199 | $ | - | $ | 10,043 | $ | 1,181 | $ | 19,542 | $ | - | 20,723 | ||||||||||||||||||
Interest rate swaps | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 514 | $ | - | $ | 514 | |||||||||||||||||
Foreign Exchange Forward Contracts | $ | 22 | $ | 22 | $ | - | $ | 296 | $ | - | $ | 296 | |||||||||||||||||||||
Total financial liabilities | $ | - | $ | 22 | $ | - | $ | 22 | $ | - | $ | 810 | $ | - | $ | 810 | |||||||||||||||||
(1) Total cash and cash equivalents, short-term investments of $228.4 million as of September 29, 2013 includes cash of $209.5 million held in operating accounts, $4.8 million in money market funds and $14.0 million held in time deposit accounts. | |||||||||||||||||||||||||||||||||
(2) Total cash and cash equivalents, short-term investments of $313.9 million as of December 30, 2012 includes cash of $297.7 million held in operating accounts, $1.2 million in money market funds and $15.0 million in commercial paper. | |||||||||||||||||||||||||||||||||
Schedule Of Financial Instruments Not Carried At Fair Value [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
29-Sep-13 | 30-Dec-12 | ||||||||||||||||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||||||||||||||||||
Value | Fair Value | Value | Fair Value | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Debt traded in the market: | |||||||||||||||||||||||||||||||||
Term Loan | $ | 214,496 | $ | 215,568 | $ | 216,295 | $ | 217,917 | |||||||||||||||||||||||||
2.0% Senior Exchangeable Notes | 110,609 | 107,014 | - | - | |||||||||||||||||||||||||||||
7.875% Senior Unsecured Notes | 94,064 | 97,591 | 200,000 | 201,000 | |||||||||||||||||||||||||||||
Total Debt Obligations | $ | 419,169 | $ | 420,173 | $ | 416,295 | $ | 418,917 |
Note_11_Derivative_Financial_I1
Note 11. Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Beginning Balance | $ | 7,058 | $ | 217 | $ | 1 | $ | - | |||||||||
Net (gain) loss reclassified into earnings on cash flow hedges (effective portion) | (3,113 | ) | 538 | (7,701 | ) | 538 | |||||||||||
Net gain reclassified into earnings on cash flow hedges (ineffective portion) | - | - | (2,415 | ) | - | ||||||||||||
Net unrealized hedge gain (loss) arising during the period | (391 | ) | (1,639 | ) | 13,669 | (1,422 | ) | ||||||||||
Ending Balance | $ | 3,554 | $ | (884 | ) | $ | 3,554 | $ | (884 | ) | |||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
(in thousands) | |||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||
Foreign Exchange Forward Contracts | |||||||||||||||||
Net unrealized gain (loss) recognized in OCI (1) | $ | (391 | ) | $ | (1,639 | ) | $ | 13,669 | $ | (1,422 | ) | ||||||
Net (gain) loss reclassified from accumulated OCI into income (effective portion)(2) | $ | (3,113 | ) | $ | 538 | $ | (7,701 | ) | $ | 538 | |||||||
Net gain reclassified from accumulated OCI into income (ineffective portion) (3) | $ | - | $ | - | $ | (2,415 | ) | $ | - | ||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||
Net gain (loss) recognized in income | |||||||||||||||||
Swap interest expense (4) | $ | - | $ | (16 | ) | $ | (8 | ) | $ | (134 | ) | ||||||
Foreign Exchange Forward Contracts (5) | $ | (1,053 | ) | $ | 1,221 | $ | (813 | ) | $ | 1,464 | |||||||
Foreign Exchange Options Contracts (5) | $ | (197 | ) | $ | - | $ | - | $ | - | ||||||||
(1) Net change in the fair value of the effective portion classified in other comprehensive income (OCI) | |||||||||||||||||
(2) Effective portion classified as net product revenue | |||||||||||||||||
(3) Classified in interest income and other (expense) | |||||||||||||||||
(4) Classified in interest expense | |||||||||||||||||
(5) Classified in interest and other income (expense) | |||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | ||||||||||||||||
29-Sep-13 | 30-Dec-12 | ||||||||||||||||
Balance sheet location | Derivatives designated as | Derivatives not designated as | Derivatives designated as | Derivatives | |||||||||||||
hedging | hedging | hedging | not | ||||||||||||||
instruments | instruments | instruments | designated as | ||||||||||||||
hedging | |||||||||||||||||
instruments | |||||||||||||||||
(in thousands) | |||||||||||||||||
Prepaid expenses and other current assets | |||||||||||||||||
Foreign Exchange Forward Contracts | $ | 2,626 | $ | 2,573 | $ | - | $ | 3,032 | |||||||||
Other accrued liabilities | |||||||||||||||||
Interest rate Swap | $ | - | $ | - | $ | - | $ | 514 | |||||||||
Foreign Exchange Forward Contracts | $ | - | $ | 22 | $ | - | $ | 296 |
Note_13_Income_Taxes_Tables
Note 13. Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
(in thousands) | |||||||||||||||||
Income tax expense (benefit) | $ | (1,644 | ) | $ | 2,757 | $ | (891 | ) | $ | 9,572 |
Note_14_Restructuring_and_Othe1
Note 14. Restructuring and Others (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Fiscal Year 2013 Restructuring Plan [Member] | ' | ||||||||||||||||
Note 14. Restructuring and Others (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | |||||||||||||||||
29-Sep-13 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Accrued restructuring balance, beginning of period | $ | - | |||||||||||||||
Provision: | |||||||||||||||||
Severance and others | 6,264 | ||||||||||||||||
Restructuring charges | 6,264 | ||||||||||||||||
Non-cash adjustments (1) | (230 | ) | |||||||||||||||
Cash payments | (4,351 | ) | |||||||||||||||
Accrued restructuring balance, end of period | $ | 1,683 | |||||||||||||||
(1) Non cash adjustments mainly relate to intangibles written off. | |||||||||||||||||
Fiscal Year 2011 Restructuring Plan [Member] | ' | ||||||||||||||||
Note 14. Restructuring and Others (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
29-Sep-13 | 30-Sep-12 | 29-Sep-13 | 30-Sep-12 | ||||||||||||||
(in thousands) | |||||||||||||||||
Accrued restructuring balance, beginning of period | $ | 30 | $ | 785 | $ | 538 | $ | 8,087 | |||||||||
Provision: | |||||||||||||||||
Gain on sale of equipment | - | - | - | (3,798 | ) | ||||||||||||
Asset relocation fees | - | 854 | - | 4,686 | |||||||||||||
Asset impairment charges | - | - | - | 2,070 | |||||||||||||
Severance and others | - | 1,009 | - | 3,550 | |||||||||||||
Restructuring charges | - | 1,863 | - | 6,508 | |||||||||||||
Non-cash adjustments (1) | - | (43 | ) | (75 | ) | 1,557 | |||||||||||
Cash payments | (30 | ) | (344 | ) | (463 | ) | (13,891 | ) | |||||||||
Accrued restructuring balance, end of period | - | $ | 2,261 | $ | - | $ | 2,261 | ||||||||||
(1) Non cash adjustments relate to gain on sale of equipment, asset impairment charges and foreign currency translations. |
Note_15_Commitments_and_Contin1
Note 15. Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September | September 30, | September 29, | September 30, | ||||||||||||||
29, 2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 1,127 | $ | 3,860 | $ | 2,124 | $ | 2,537 | |||||||||
Provision for warranties issued | 760 | 404 | 1,360 | 2,991 | |||||||||||||
Settlements made | (827 | ) | (1,205 | ) | (2,412 | ) | (2,305 | ) | |||||||||
Changes in liability for pre-existing warranties during the period | 106 | (89 | ) | 94 | (253 | ) | |||||||||||
Balance at end of period | $ | 1,166 | $ | 2,970 | $ | 1,166 | $ | 2,970 |
Note_3_Acquisition_Details
Note 3. Acquisition (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 2 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Aug. 01, 2013 | Sep. 29, 2013 | Aug. 01, 2013 | Aug. 01, 2013 | Aug. 01, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Aug. 01, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | |
Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Other Current Assets and Accrued Compensation and Benefits [Member] | Other Current Assets and Accrued Compensation and Benefits [Member] | Other Liabilities [Member] | Net of Cash Acquired [Member] | Fujitsu Corporate Pension Fund and Retirement Allowance Plan [Member] | Fujitsu Semiconductor Limited [Member] | Fujitsu Semiconductor Limited [Member] | Fujitsu Semiconductor Limited [Member] | Fujitsu Semiconductor Limited [Member] | Fujitsu Semiconductor Limited [Member] | Minimum [Member] | Maximum [Member] | |||
Fujitsu Semiconductor Limited [Member] | Fujitsu Semiconductor Limited [Member] | Fujitsu Corporate Pension Fund and Retirement Allowance Plan [Member] | Fujitsu Corporate Pension Fund and Retirement Allowance Plan [Member] | Fujitsu Semiconductor Limited [Member] | Fujitsu Semiconductor Limited [Member] | Fujitsu Semiconductor Limited [Member] | Developed Technology [Member] | In Process Research and Development [Member] | Customer Relationships [Member] | Fujitsu Semiconductor Limited [Member] | Fujitsu Semiconductor Limited [Member] | |||||
Fujitsu Semiconductor Limited [Member] | In Process Research and Development [Member] | In Process Research and Development [Member] | ||||||||||||||
Note 3. Acquisition (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Consideration Transferred | ' | $158,543,000 | ' | ' | ' | ' | ' | $149,900,000 | ' | ' | ' | ' | $158,500,000 | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' |
Business Combination, Acquisition Related Costs | ' | ' | 6,200,000 | 11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Bargain Purchase, Gain Recognized, Amount | 8,205,000 | 8,205,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24.00% | 26.00% | 24.00% | ' | ' | ' | ' |
Development period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | '3 years |
Business Combination, Consideration Transferred, Liabilities Incurred | ' | ' | ' | ' | 23,900,000 | ' | 8,600,000 | ' | 8,200,000 | ' | ' | ' | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents | 32,086,000 | 32,086,000 | ' | ' | 23,900,000 | 23,900,000 | ' | ' | 8,200,000 | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $92,900,000 | ' | ' |
Note_3_Acquisition_Details_Pre
Note 3. Acquisition (Details) - Preliminary allocation of purchase price to net assets acquired (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 29, 2013 |
Note 3. Acquisition (Details) - Preliminary allocation of purchase price to net assets acquired [Line Items] | ' | ' |
Cash | $8,595 | $8,595 |
Restricted cash | 32,086 | 32,086 |
Accounts receivable | 1,534 | 1,534 |
Inventory | 104,300 | 104,300 |
Property and equipment, net | 12,143 | 12,143 |
Developed technology | ' | ' |
Deferred tax liability | -3,739 | -3,739 |
Gain on acquisition of Microcontroller and Analog business | -8,205 | -8,205 |
Total Purchase Consideration | ' | 158,543 |
Automotive Microcontrollers [Member] | Developed Technology [Member] | ' | ' |
Developed technology | ' | ' |
Intangible Assets, Fair Value | 10,500 | 10,500 |
Consumer Microcontrollers [Member] | Developed Technology [Member] | ' | ' |
Developed technology | ' | ' |
Intangible Assets, Fair Value | 5,900 | 5,900 |
Analog [Member] | Developed Technology [Member] | ' | ' |
Developed technology | ' | ' |
Intangible Assets, Fair Value | 12,700 | 12,700 |
Japan Pension Related Underfunded Liability [Member] | ' | ' |
Developed technology | ' | ' |
Liabilities | -23,923 | -23,923 |
Liability to FSL For Excess Pension Related Cash Received [Member] | ' | ' |
Developed technology | ' | ' |
Liabilities | -8,163 | -8,163 |
Japan Employees Compensation And Benefits Liability [Member] | ' | ' |
Developed technology | ' | ' |
Liabilities | -8,585 | -8,585 |
In Process Research and Development [Member] | ' | ' |
Developed technology | ' | ' |
Intangible Assets, Fair Value | 500 | 500 |
Customer Relationships [Member] | ' | ' |
Developed technology | ' | ' |
Intangible Assets, Fair Value | 18,800 | 18,800 |
Trademarks [Member] | ' | ' |
Developed technology | ' | ' |
Intangible Assets, Fair Value | 2,700 | 2,700 |
Trade Names [Member] | ' | ' |
Developed technology | ' | ' |
Intangible Assets, Fair Value | $1,400 | $1,400 |
Note_3_Acquisition_Details_Pro
Note 3. Acquisition (Details) - Pro Forma consolidated results of operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Pro Forma consolidated results of operations [Abstract] | ' | ' | ' | ' |
Net sales (in Dollars) | $314,701 | $386,786 | $947,551 | $1,163,123 |
Net income (loss) (in Dollars) | ($24,106) | ($46,075) | ($159,988) | ($169,905) |
Basic | ($0.41) | ($0.77) | ($2.73) | ($2.84) |
Diluted | ($0.41) | ($0.77) | ($2.73) | ($2.84) |
Note_4_Balance_Sheet_Component2
Note 4. Balance Sheet Components (Details) (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Note 4. Balance Sheet Components (Details) [Line Items] | ' | ' |
Cash, Cash Equivalents, and Short-term Investments | $228.40 | $313.90 |
Cash Available Inside the USA [Member] | ' | ' |
Note 4. Balance Sheet Components (Details) [Line Items] | ' | ' |
Cash, Cash Equivalents, and Short-term Investments | 206.1 | 303.1 |
Outside The United States Of America [Member] | ' | ' |
Note 4. Balance Sheet Components (Details) [Line Items] | ' | ' |
Cash, Cash Equivalents, and Short-term Investments | $22.20 | $10.80 |
Note_4_Balance_Sheet_Component3
Note 4. Balance Sheet Components (Details) - Balance Sheet Components (USD $) | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | Dec. 25, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents | ' | ' | ' | ' |
Cash | $188,118 | $258,126 | ' | ' |
Cash equivalents: | ' | ' | ' | ' |
Money market funds | 4,844 | 1,181 | ' | ' |
Cash and cash equivalents | 193,025 | 262,177 | 279,460 | 194,850 |
Short-term investments | ' | ' | ' | ' |
Commercial paper | ' | 14,980 | ' | ' |
Time Deposit | 14,035 | ' | ' | ' |
Short-term investments | 35,367 | 51,720 | ' | ' |
Account receivable, net | ' | ' | ' | ' |
Accounts receivable, gross | 155,578 | 107,127 | ' | ' |
Allowance for doubtful accounts | -372 | -263 | ' | ' |
Account receivable, net | 155,206 | 106,864 | ' | ' |
Inventories | ' | ' | ' | ' |
Raw materials | 11,673 | 8,647 | ' | ' |
Work-in-process | 177,029 | 149,722 | ' | ' |
Finished goods | 68,898 | 23,823 | ' | ' |
Inventories | 257,600 | 182,192 | ' | ' |
Property, plant and equipment, net | ' | ' | ' | ' |
Land | 45,168 | 45,168 | ' | ' |
Buildings and leasehold improvements | 61,601 | 59,807 | ' | ' |
Equipment | 366,951 | 341,129 | ' | ' |
Construction in progress | 25,910 | 11,694 | ' | ' |
Accumulated depreciation and amortization | -313,419 | -281,069 | ' | ' |
Property, plant and equipment, net | 186,211 | 176,728 | ' | ' |
Other Long Term Assets | ' | ' | ' | ' |
Long Term License | 33,210 | 10,002 | ' | ' |
Others | 33,751 | 29,169 | ' | ' |
Other Long Term Assets | 66,961 | 39,171 | ' | ' |
Accrued Compensation and Benefits | ' | ' | ' | ' |
Accrued Vacation | 10,372 | 9,404 | ' | ' |
AM business underfunded pension related liability | 23,923 | ' | ' | ' |
Others | 31,311 | 16,676 | ' | ' |
Accrued Compensation and Benefits | 65,606 | 26,080 | ' | ' |
Accrued Liabilities | ' | ' | ' | ' |
Short Term License Liability | 17,948 | 3,377 | ' | ' |
Others | 79,948 | 26,536 | ' | ' |
Accrued Liabilities | 97,896 | 29,913 | ' | ' |
Cash and Cash Equivalents [Member] | ' | ' | ' | ' |
Cash equivalents: | ' | ' | ' | ' |
FDIC insured certificates of deposit | 63 | 2,870 | ' | ' |
Short-term Investments [Member] | ' | ' | ' | ' |
Cash equivalents: | ' | ' | ' | ' |
FDIC insured certificates of deposit | $21,332 | $36,740 | ' | ' |
Note_5_Accumulated_Other_Compr2
Note 5. Accumulated Other Comprehensive Loss (Details) - Accumulated Other Comprehensive Loss, Net of Tax (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Total | ' | ' | ($1,484) | ' | |
Other comprehensive income before reclassification, net of tax | 117 | 305 | -1,420 | 259 | |
Other comprehensive income before reclassification, net of tax | -391 | -1,639 | 13,669 | -1,422 | |
Other comprehensive income before reclassification, net of tax | ' | ' | -1,200 | ' | |
Other comprehensive income before reclassification, net of tax | ' | ' | 12,249 | ' | |
Amounts reclassified to earnings (ineffective portion) | ' | ' | 2,415 | ' | |
Amounts reclassified to earnings (ineffective portion) | ' | ' | -2,415 | ' | |
Amounts reclassified to earnings (effective portion) | 3,113 | -538 | 7,701 | -538 | |
Amounts reclassified to earnings (effective portion) | -3,113 | 538 | -7,701 | 538 | |
Amounts reclassified on sale of Auction Rate Securities | ' | ' | -1,200 | ' | |
Net other comprehensive income | -3,504 | -1,101 | 3,553 | -884 | |
Net other comprehensive income | ' | ' | -1,200 | -1,059 | |
Net other comprehensive income | -3,387 | -796 | 933 | -625 | |
Total | -551 | ' | -551 | ' | |
Accumulated Translation Adjustment [Member] | Ineffective Portion [Member] | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Amounts reclassified to earnings (ineffective portion) | ' | ' | 0 | ' | |
Amounts reclassified to earnings (ineffective portion) | ' | ' | 0 | ' | |
Accumulated Translation Adjustment [Member] | Effective Portion [Member] | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Amounts reclassified to earnings (effective portion) | ' | ' | 0 | ' | |
Amounts reclassified to earnings (effective portion) | ' | ' | 0 | ' | |
Accumulated Translation Adjustment [Member] | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Foreign Currency Translation Adjustment | ' | ' | -2,685 | ' | |
Other comprehensive income before reclassification, net of tax | ' | ' | -1,420 | ' | |
Amounts reclassified on sale of Auction Rate Securities | ' | ' | 0 | ' | |
Net other comprehensive income | ' | ' | -1,420 | ' | |
Foreign Currency Translation Adjustment | -4,105 | ' | -4,105 | ' | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Ineffective Portion [Member] | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Amounts reclassified to earnings (ineffective portion) | ' | ' | 2,415 | [1] | ' |
Amounts reclassified to earnings (ineffective portion) | ' | ' | -2,415 | [1] | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Effective Portion [Member] | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Amounts reclassified to earnings (effective portion) | ' | ' | 7,701 | [2] | ' |
Amounts reclassified to earnings (effective portion) | ' | ' | -7,701 | [2] | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Net Gains and Losses on Cash Flow Hedges | ' | ' | 1 | ' | |
Other comprehensive income before reclassification, net of tax | ' | ' | 13,669 | ' | |
Amounts reclassified on sale of Auction Rate Securities | ' | ' | 0 | ' | |
Net other comprehensive income | ' | ' | 3,553 | ' | |
Net Gains and Losses on Cash Flow Hedges | 3,554 | ' | 3,554 | ' | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Ineffective Portion [Member] | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Amounts reclassified to earnings (ineffective portion) | ' | ' | 0 | ' | |
Amounts reclassified to earnings (ineffective portion) | ' | ' | 0 | ' | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Effective Portion [Member] | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Amounts reclassified to earnings (effective portion) | ' | ' | 0 | ' | |
Amounts reclassified to earnings (effective portion) | ' | ' | 0 | ' | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Unrealized Gains and Losses on Available-for-Sale Securities | ' | ' | 1,200 | ' | |
Other comprehensive income before reclassification, net of tax | ' | ' | 0 | ' | |
Amounts reclassified on sale of Auction Rate Securities | ' | ' | -1,200 | [1] | ' |
Net other comprehensive income | ' | ' | -1,200 | ' | |
Unrealized Gains and Losses on Available-for-Sale Securities | 0 | ' | 0 | ' | |
Ineffective Portion [Member] | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Amounts reclassified to earnings (ineffective portion) | ' | ' | 2,415 | ' | |
Amounts reclassified to earnings (ineffective portion) | ' | ' | -2,415 | ' | |
Effective Portion [Member] | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Amounts reclassified to earnings (effective portion) | ' | ' | 7,701 | ' | |
Amounts reclassified to earnings (effective portion) | ' | ' | ($7,701) | ' | |
[1] | Reclassified into Interest and Other Income line item of the Condensed Consolidated Statement of Operations. Please see Note 11 for further details on the ineffective portion of cash flow hedges. | ||||
[2] | Reclassified into Net Sales line item of the Condensed Consolidated Statement of Operations. Please see Note 11 for further details. |
Note_6_Equity_Incentive_Plan_a2
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' |
Income Tax Expense (Benefit) | ($1,644,000) | $2,757,000 | ($891,000) | $9,572,000 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 0 | ' | 0 | ' |
Performance Stock Units [Member] | ' | ' | ' | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' |
Performance Period For Performance Stock Units | ' | ' | '18 months | ' |
Share-Based Compensation, Arrangement By Share-Based Award Fair Value Assumption, Fair Value Per Share (in Dollars per share) | ' | ' | $7.40 | ' |
Performance Stock Units [Member] | Shares Granted In Fiscal 2013 [Member] | ' | ' | ' | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' |
Share-Based Compensation, Minimum Percentage of Performance Stock Units | ' | ' | 0.00% | ' |
Share-Based Compensation, Maximum Percentage Of Performance Stock Units Vested | ' | ' | 100.00% | ' |
Employee Stock Option [Member] | ' | ' | ' | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 |
RSUs and Options [Member] | ' | ' | ' | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $32,500,000 | ' | $32,500,000 | ' |
Note_6_Equity_Incentive_Plan_a3
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Shares Available for Grant | 9 Months Ended | |
Sep. 29, 2013 | Dec. 30, 2012 | |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Shares Available for Grant [Line Items] | ' | ' |
Balance | 2,329,279 | 1,103,450 |
Additional shares issuable under 2010 Plan (annual increase for 2013) | 2,577,033 | ' |
Employee Stock Option [Member] | ' | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Shares Available for Grant [Line Items] | ' | ' |
Stock options granted, net of forfeitures/cancellations | -317,562 | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Shares Available for Grant [Line Items] | ' | ' |
Awards granted, net of forfeitures/cancellations | -693,310 | ' |
Performance Stock Units [Member] | ' | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Shares Available for Grant [Line Items] | ' | ' |
Awards granted, net of forfeitures/cancellations | -340,332 | ' |
Note_6_Equity_Incentive_Plan_a4
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Total Recorded Stock-based Compensation Expense (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Stock-based compensation expense before income taxes | $7,028 | $8,761 | $23,324 | $24,176 | ||||
Stock-based compensation expense after income taxes(1) | 7,028 | [1] | 8,761 | [1] | 23,324 | [1] | 24,176 | [1] |
Cost of Sales [Member] | ' | ' | ' | ' | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Stock-based compensation expense before income taxes | 1,384 | 1,713 | 4,235 | 4,747 | ||||
Research and Development Expense [Member] | ' | ' | ' | ' | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Stock-based compensation expense before income taxes | 1,952 | 2,350 | 7,420 | 6,045 | ||||
Selling, General and Administrative Expenses [Member] | ' | ' | ' | ' | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Stock-based compensation expense before income taxes | $3,692 | $4,698 | $11,669 | $13,384 | ||||
[1] | There was no income tax benefit related to stock-based compensation because all of the Company's U.S. deferred tax assets, net of U.S. deferred tax liabilities, continue to be subject to a full valuation allowance. |
Note_6_Equity_Incentive_Plan_a5
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Weighted Average Fair Value of Stock Options Granted (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |
Weighted Average Fair Value of Stock Options Granted [Abstract] | ' | ' | ' | ' |
Weighted average fair value of stock options granted | $3.68 | $5.30 | $4.69 | $4.19 |
Note_6_Equity_Incentive_Plan_a6
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Valuation Assumption - Stock Options (Employee Stock Option [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |
Employee Stock Option [Member] | ' | ' | ' | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Valuation Assumption - Stock Options [Line Items] | ' | ' | ' | ' |
Expected volatility | 41.84% | 51.24% | 47.06% | 51.23% |
Risk-free interest rate | 1.14% | 0.50% | 0.94% | 0.67% |
Expected term (in years) | '4 years 127 days | '4 years 127 days | '4 years 127 days | '4 years 127 days |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Note_6_Equity_Incentive_Plan_a7
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Valuation Assumption - Performance Stock Units (Performance Stock Units [Member], USD $) | 9 Months Ended |
Sep. 29, 2013 | |
Performance Stock Units [Member] | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Valuation Assumption - Performance Stock Units [Line Items] | ' |
Stock price on grant date (in Dollars per share) | $11.50 |
Expected volatility | 50.90% |
Risk-free interest rate | 0.21% |
Dividend yield | 0.00% |
Note_6_Equity_Incentive_Plan_a8
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - Stock Option Activities (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 29, 2013 | Dec. 30, 2012 |
Stock Option Activities [Abstract] | ' | ' |
Number of Shares | 6,724,530 | 6,641,892 |
Weighted Average Exercise Price (in Dollars per share) | $13 | $13.06 |
Weighted Average Remaining Contractual Life (in Years) | '4 years 251 days | '5 years 124 days |
Aggregate Intrinsic Value (in Dollars) | $609 | $15,228 |
Total vested and exercisable as of September 29, 2013 | 4,608,375 | ' |
Total vested and exercisable as of September 29, 2013 (in Dollars per share) | $13.53 | ' |
Total vested and exercisable as of September 29, 2013 | '4 years 105 days | ' |
Total vested and exercisable as of September 29, 2013 (in Dollars) | 307 | ' |
Granted | 630,000 | ' |
Granted (in Dollars per share) | $11.45 | ' |
Cancelled/Forfeited | -312,438 | ' |
Cancelled/Forfeited (in Dollars per share) | $13.46 | ' |
Exercised | -234,924 | ' |
Exercised (in Dollars per share) | $9.81 | ' |
Exercised (in Dollars) | $550 | ' |
Note_6_Equity_Incentive_Plan_a9
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - RSU Award Activity (USD $) | 9 Months Ended | |
Sep. 29, 2013 | Dec. 25, 2011 | |
RSUs [Member] | ' | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - RSU Award Activity [Line Items] | ' | ' |
Number of Shares | ' | 2,518,916 |
Weighted Average Grant-date Fair Value (in Dollars per share) | ' | $13.72 |
Granted | 990,343 | ' |
Granted (in Dollars per share) | $12.41 | ' |
Cancelled/Forfeited | -297,033 | ' |
Cancelled/Forfeited (in Dollars per share) | $12.75 | ' |
Vested | -891,868 | ' |
Vested (in Dollars per share) | $11.66 | ' |
Number of Shares | 2,320,358 | 2,518,916 |
Weighted Average Grant-date Fair Value (in Dollars per share) | $14.07 | $13.72 |
Key Executive Rsu [Member] | ' | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - RSU Award Activity [Line Items] | ' | ' |
Number of Shares | ' | 1,792,171 |
Weighted Average Grant-date Fair Value (in Dollars per share) | ' | $12.02 |
Cancelled/Forfeited | -11,668 | ' |
Cancelled/Forfeited (in Dollars per share) | $10.25 | ' |
Vested | -781,049 | ' |
Vested (in Dollars per share) | $11.52 | ' |
Number of Shares | 999,454 | 1,792,171 |
Weighted Average Grant-date Fair Value (in Dollars per share) | $12.43 | $12.02 |
Performance Stock Units [Member] | ' | ' |
Note 6. Equity Incentive Plan and Stock-Based Compensation (Details) - RSU Award Activity [Line Items] | ' | ' |
Granted | 376,000 | ' |
Granted (in Dollars per share) | $7.40 | ' |
Cancelled/Forfeited | -24,000 | ' |
Cancelled/Forfeited (in Dollars per share) | $7.40 | ' |
Number of Shares | 352,000 | ' |
Weighted Average Grant-date Fair Value (in Dollars per share) | $7.40 | ' |
Note_7_Net_Income_loss_Per_Sha2
Note 7. Net Income (loss) Per Share (Details) (Senior Convertible Notes [Member], USD $) | Sep. 29, 2013 | Aug. 26, 2013 |
In Thousands, unless otherwise specified | ||
Senior Convertible Notes [Member] | ' | ' |
Note 7. Net Income (loss) Per Share (Details) [Line Items] | ' | ' |
Debt Instrument, Face Amount | $150,000 | $150,000 |
Note_7_Net_Income_loss_Per_Sha3
Note 7. Net Income (loss) Per Share (Details) - Earnings per Share Calculation (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Numerator: | ' | ' | ' | ' |
Net income (loss) (in Dollars) | ($36,904) | $5,140 | ($54,570) | $18,019 |
Denominator: | ' | ' | ' | ' |
Denominator for basic net income per share, weighted average shares | 58,785 | 60,139 | 58,506 | 59,932 |
Effect of dilutive RSUs and Options | ' | 681 | ' | 843 |
Denominator for diluted net income per share, weighted average shares | 58,785 | 60,820 | 58,506 | 60,775 |
Basic net income (loss) per share (in Dollars per share) | ($0.63) | $0.09 | ($0.93) | $0.30 |
Diluted net income (loss) per share (in Dollars per share) | ($0.63) | $0.08 | ($0.93) | $0.30 |
Potentially dilutive shares excluded from the diluted income per share computation because their effect would have been anti-dilutive | 8,437 | 6,704 | 5,907 | 7,367 |
RSUs and Options [Member] | ' | ' | ' | ' |
Denominator: | ' | ' | ' | ' |
Potentially dilutive shares excluded from the diluted income per share computation because their effect would have been anti-dilutive | 4,441 | 6,704 | 4,555 | 7,367 |
Convertible Debt Securities [Member] | ' | ' | ' | ' |
Denominator: | ' | ' | ' | ' |
Potentially dilutive shares excluded from the diluted income per share computation because their effect would have been anti-dilutive | 3,996 | ' | 1,352 | ' |
Note_8_Intangible_Assets_and_G2
Note 8. Intangible Assets and Goodwill (Details) (USD $) | 9 Months Ended | 1 Months Ended | |
Sep. 29, 2013 | Aug. 01, 2013 | Aug. 01, 2013 | |
Net of Cash Acquired [Member] | Fujitsu Semiconductor Limited [Member] | ||
Fujitsu Semiconductor Limited [Member] | |||
Note 8. Intangible Assets and Goodwill (Details) [Line Items] | ' | ' | ' |
Business Combination, Consideration Transferred | $158,543,000 | $149,900,000 | $158,500,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | ' | ' | $52,500,000 |
Note_8_Intangible_Assets_and_G3
Note 8. Intangible Assets and Goodwill (Details) - Intangible Assets (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Dec. 30, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross amount | $211,708 | $213,014 |
Additions | 52,500 | ' |
Accumulated amortization | -87,001 | -63,861 |
Net amount | 177,207 | 149,153 |
Developed Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross amount | 111,376 | 111,376 |
Additions | 29,100 | ' |
Accumulated amortization | -48,451 | -35,386 |
Net amount | 92,025 | 75,990 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross amount | 92,080 | 93,264 |
Additions | 18,800 | ' |
Accumulated amortization | -33,781 | -25,191 |
Net amount | 77,099 | 68,073 |
Trade Names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross amount | 8,252 | 8,374 |
Additions | 1,400 | ' |
Accumulated amortization | -4,711 | -3,284 |
Net amount | 4,941 | 5,090 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Additions | 2,700 | ' |
Accumulated amortization | -58 | ' |
Net amount | 2,642 | ' |
In Process Research and Development [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Additions | 500 | ' |
Net amount | $500 | ' |
Note_8_Intangible_Assets_and_G4
Note 8. Intangible Assets and Goodwill (Details) - Actual Amortization Expense (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Actual Amortization Expense [Abstract] | ' | ' | ' | ' |
Amortization expense | $9,514 | $6,813 | $23,140 | $20,792 |
Note_8_Intangible_Assets_and_G5
Note 8. Intangible Assets and Goodwill (Details) - Estimated Future Amortization Expense (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Estimated Future Amortization Expense [Abstract] | ' | ' |
Fiscal 2013 (remaining 3 months) | $10,135 | ' |
Fiscal 2014 | 40,193 | ' |
Fiscal 2015 | 38,920 | ' |
Fiscal 2016 | 32,550 | ' |
Fiscal 2017 | 21,069 | ' |
Fiscal 2018 and beyond | 33,840 | ' |
Total | $177,207 | $149,153 |
Note_8_Intangible_Assets_and_G6
Note 8. Intangible Assets and Goodwill (Details) - Goodwill (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill [Abstract] | ' | ' |
Goodwill | $166,584 | $166,931 |
Note_9_Financing_arrangements_1
Note 9. Financing arrangements (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 29, 2013 | Dec. 30, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 29, 2013 | Sep. 27, 2013 | Sep. 29, 2013 | Aug. 26, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Aug. 26, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 27, 2013 | |
Amended [Member] | Quick Ratio 1 [Member] | Quick ratio 2 [Member] | Capped Call Transactions [Member] | Morgan Stanley Bank, N.A. [Member] | Senior Convertible Notes [Member] | Senior Convertible Notes [Member] | Senior Convertible Notes [Member] | Senior Notes [Member] | 2.00 % Senior Exchangeable Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | |||
Morgan Stanley Bank, N.A. [Member] | Maximum [Member] | Maximum [Member] | 2012 Revolving Credit Facility [Member] | Senior Convertible Notes [Member] | Senior Convertible Notes [Member] | 2012 Revolving Credit Facility [Member] | ||||||||||||
2012 Revolving Credit Facility [Member] | 2012 Revolving Credit Facility [Member] | 2012 Revolving Credit Facility [Member] | ||||||||||||||||
Note 9. Financing arrangements (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | $150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | 2.00% | ' | ' | 7.88% | 7.88% | 7.88% | ' | ' | ' |
Debt Instrument, Convertible, Number of Equity Instruments1 | ' | ' | ' | ' | ' | ' | ' | '72.0929 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of Exchangable Note Used in Ratio | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | $13.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Senior Long-term Debt | 150,000,000 | ' | ' | ' | ' | ' | ' | 145,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured Debt | 214,496,000 | 216,295,000 | ' | ' | ' | ' | ' | ' | ' | ' | 110,200,000 | ' | ' | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | ' | ' | ' | ' | ' | ' | ' | 39,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount | ' | ' | ' | ' | ' | ' | ' | 39,391,000 | ' | ' | ' | 3,600,000 | ' | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Stock Price Trigger (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13.87 | $18.14 | ' |
Adjustments to Additional Paid in Capital, Other | ' | ' | ' | ' | ' | 15,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Repurchase Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105,900,000 | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | 70,000,000 | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenant Terms, Consolidated quick ratio | ' | ' | ' | 1.25 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenant Terms, Consolidated Cash, Cash Equivalent and Short-term Marketable Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 |
Note_9_Financing_arrangements_2
Note 9. Financing arrangements (Details) - Debt (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Note 9. Financing arrangements (Details) - Debt [Line Items] | ' | ' |
Term Loan | $214,496 | $216,295 |
Total debt | 419,169 | 416,295 |
Less: current portion | 5,380 | 5,382 |
Long-term debt | 413,789 | 410,913 |
Senior Convertible Notes [Member] | ' | ' |
Note 9. Financing arrangements (Details) - Debt [Line Items] | ' | ' |
Debt | 110,609 | ' |
Senior Unsecured Notes [Member] | ' | ' |
Note 9. Financing arrangements (Details) - Debt [Line Items] | ' | ' |
Debt | $94,064 | $200,000 |
Note_9_Financing_arrangements_3
Note 9. Financing arrangements (Details) - Debt (Parentheticals) | Sep. 29, 2013 | Aug. 26, 2013 | Dec. 30, 2012 |
Senior Convertible Notes [Member] | ' | ' | ' |
Note 9. Financing arrangements (Details) - Debt (Parentheticals) [Line Items] | ' | ' | ' |
Interest rate | 2.00% | ' | 2.00% |
Senior Unsecured Notes [Member] | ' | ' | ' |
Note 9. Financing arrangements (Details) - Debt (Parentheticals) [Line Items] | ' | ' | ' |
Interest rate | 7.88% | 7.88% | 7.88% |
Note_9_Financing_arrangements_4
Note 9. Financing arrangements (Details) - Net carrying amount of the liability component of the Notes (Senior Convertible Notes [Member], USD $) | Sep. 29, 2013 | Aug. 26, 2013 |
In Thousands, unless otherwise specified | ||
Senior Convertible Notes [Member] | ' | ' |
Note 9. Financing arrangements (Details) - Net carrying amount of the liability component of the Notes [Line Items] | ' | ' |
Principal amount | $150,000 | $150,000 |
Unamortized debt discount | 39,391 | ' |
Net carrying value | $110,609 | ' |
Note_9_Financing_arrangements_5
Note 9. Financing arrangements (Details) - Interest expense recognized on the Notes (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Note 9. Financing arrangements (Details) - Interest expense recognized on the Notes [Line Items] | ' | ' | ' | ' |
Total | $7,351 | $7,339 | $22,333 | $22,924 |
Senior Convertible Notes [Member] | ' | ' | ' | ' |
Note 9. Financing arrangements (Details) - Interest expense recognized on the Notes [Line Items] | ' | ' | ' | ' |
Contractual interest expense at 2% per annum | 290 | ' | ' | ' |
Amortization of debt issuance costs | 50 | ' | ' | ' |
Accretion of debt discount | 432 | ' | ' | ' |
Total | $772 | ' | ' | ' |
Note_10_Fair_Value_Measurement2
Note 10. Fair Value Measurement (Details) (USD $) | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | Capped Call Transactions [Member] | Held in Operating Accounts [Member] | Held in Operating Accounts [Member] | Money Market Funds [Member] | Money Market Funds [Member] | Bank Time Deposits [Member] | Commercial Paper [Member] | ||
Note 10. Fair Value Measurement (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash, Cash Equivalents, and Short-term Investments | $228.40 | $313.90 | ' | $209.50 | $297.70 | $4.80 | $1.20 | $14 | $15 |
Adjustments to Additional Paid in Capital, Other | ' | ' | $15.40 | ' | ' | ' | ' | ' | ' |
Note_10_Fair_Value_Measurement3
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy (USD $) | Sep. 29, 2013 | Dec. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial assets | $10,043 | $20,723 | ||
Financial liabilities | 22 | 810 | ||
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial assets | 4,844 | ' | ||
Money Market Funds [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial assets | 4,844 | [1] | 1,181 | [2] |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial assets | ' | 14,980 | ||
Commercial Paper [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial assets | ' | [1] | 14,980 | [2] |
Foreign Exchange Option [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial assets | 5,199 | 3,032 | ||
Foreign Exchange Option [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial assets | 5,199 | 3,032 | ||
Auction Rate Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial assets | ' | 1,530 | ||
Auction Rate Securities [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial assets | ' | 1,530 | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial assets | 4,844 | ' | ||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial liabilities | ' | 514 | ||
Fair Value, Inputs, Level 2 [Member] | Foreign Exchange Forward [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial liabilities | 22 | 296 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial assets | 5,199 | 19,542 | ||
Financial liabilities | 22 | 810 | ||
Interest Rate Swap [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial liabilities | ' | 514 | ||
Foreign Exchange Forward [Member] | ' | ' | ||
Note 10. Fair Value Measurement (Details) - Financial Assets and Liabilities Categorized Based Upon the Fair Value Hierarchy [Line Items] | ' | ' | ||
Financial liabilities | $22 | $296 | ||
[1] | Total cash and cash equivalents, short-term investments of $228.4 million as of September 29, 2013 includes cash of $209.5 million held in operating accounts, $4.8 million in money market funds and $14.0 million held in time deposit accounts. | |||
[2] | Total cash and cash equivalents, short-term investments of $313.9 million as of December 30, 2012 includes cash of $297.7 million held in operating accounts, $1.2 million in money market funds and $15.0 million in commercial paper. |
Note_10_Fair_Value_Measurement4
Note 10. Fair Value Measurement (Details) - Financial Instruments not Carried at Fair Value (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Debt traded in the market: | ' | ' |
Carrying Amount | $419,169 | $416,295 |
Estimated Fair Value | 420,173 | 418,917 |
Term Loan [Member] | ' | ' |
Debt traded in the market: | ' | ' |
Carrying Amount | 214,496 | 216,295 |
Estimated Fair Value | 215,568 | 217,917 |
Senior Convertible Notes [Member] | ' | ' |
Debt traded in the market: | ' | ' |
Carrying Amount | 110,609 | ' |
Estimated Fair Value | 107,014 | ' |
Senior Unsecured Notes [Member] | ' | ' |
Debt traded in the market: | ' | ' |
Carrying Amount | 94,064 | 200,000 |
Estimated Fair Value | $97,591 | $201,000 |
Note_11_Derivative_Financial_I2
Note 11. Derivative Financial Instruments (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 |
Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Minimum [Member] | Maximum [Member] | ||
Buy U.S. Dollars [Member] | Buy U.S. Dollars [Member] | Buy U.S. Dollars [Member] | ||||||
Note 11. Derivative Financial Instruments (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Flow Hedges Maturity | ' | ' | ' | ' | ' | ' | '3 months | '8 months |
Notional Equivalent Outstanding Contracts To Sell | ' | ' | ' | ' | $30.90 | ' | ' | ' |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | ' | ' | ' | ' | ' | 3.6 | ' | ' |
Notional Amount Of Derivative Not Designated As Hedging Instrument | ' | 38.4 | 32.8 | ' | ' | ' | ' | ' |
Gain (Loss) on Foreign Currency Fair Value Hedge Derivatives | ' | ' | ' | $2.40 | ' | ' | ' | ' |
Additional Period After Hedge Period | '2 months | ' | ' | ' | ' | ' | ' | ' |
Derivative Expiration Date, Interest Rate Swap | 'May 17, 2013 | ' | ' | ' | ' | ' | ' | ' |
Note_11_Derivative_Financial_I3
Note 11. Derivative Financial Instruments (Details) - Summary of Derivative-related Activity in Accumulated Other Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Summary of Derivative-related Activity in Accumulated Other Comprehensive Loss [Abstract] | ' | ' | ' | ' |
Balance | $7,058 | $217 | $1 | ' |
Net (gain) loss reclassified into earnings on cash flow hedges (effective portion) | -3,113 | 538 | -7,701 | 538 |
Net gain reclassified into earnings on cash flow hedges (ineffective portion) | ' | ' | -2,415 | ' |
Net unrealized hedge gain (loss) arising during the period | -391 | -1,639 | 13,669 | -1,422 |
Balance | $3,554 | ($884) | $3,554 | ($884) |
Note_11_Derivative_Financial_I4
Note 11. Derivative Financial Instruments (Details) - Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Foreign Exchange Forward Contracts | ' | ' | ' | ' | ||||
Net gain reclassified from accumulated OCI into income (ineffective portion) (3) | ' | ' | $2,415 | ' | ||||
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | ' | ' | ' | ' | ||||
Foreign Exchange Forward Contracts | ' | ' | ' | ' | ||||
Net unrealized gain (loss) recognized in OCI (1) | -391 | [1] | -1,639 | [1] | 13,669 | -1,422 | ||
Net (gain) loss reclassified from accumulated OCI into income (effective portion)(2) | -3,113 | [2] | 538 | [2] | -7,701 | [2] | 538 | [2] |
Net gain reclassified from accumulated OCI into income (ineffective portion) (3) | ' | [3] | ' | [3] | -2,415 | [3] | ' | [3] |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | ' | ' | ' | ' | ||||
Net gain (loss) recognized in income | ' | ' | ' | ' | ||||
Net gain (loss) recognized in income | -1,053 | [4] | 1,221 | [4] | -813 | [4] | 1,464 | [4] |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ' | ' | ' | ' | ||||
Net gain (loss) recognized in income | ' | ' | ' | ' | ||||
Net gain (loss) recognized in income | ' | [5] | -16 | [5] | -8 | [5] | -134 | [5] |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Option [Member] | ' | ' | ' | ' | ||||
Net gain (loss) recognized in income | ' | ' | ' | ' | ||||
Net gain (loss) recognized in income | ($197) | [4] | ' | [4] | ' | [4] | ' | [4] |
[1] | Net change in the fair value of the effective portion classified in other comprehensive income (OCI) | |||||||
[2] | Effective portion classified as net product revenue | |||||||
[3] | Classified in interest income and other | |||||||
[4] | Classified in interest and other income (expense) | |||||||
[5] | Classified in interest expense |
Note_11_Derivative_Financial_I5
Note 11. Derivative Financial Instruments (Details) - Gross Fair Values of Derivative Instruments on the Condensed Consolidated Balance Sheets (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Designated as Hedging Instrument [Member] | Foreign Exchange Option [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign Exchange Forward Contracts | $2,626 | ' |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Option [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign Exchange Forward Contracts | 2,573 | 3,032 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | ' | 514 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | $22 | $296 |
Note_12_Pension_and_PostRetire1
Note 12. Pension and Post-Retirement Benefits (Details) (USD $) | 3 Months Ended |
Sep. 29, 2013 | |
Note 12. Pension and Post-Retirement Benefits (Details) [Line Items] | ' |
Restricted Cash and Cash Equivalents | $32,086,000 |
Other Current Assets and Accrued Compensation and Benefits [Member] | Fujitsu Corporate Pension Fund and Retirement Allowance Plan [Member] | ' |
Note 12. Pension and Post-Retirement Benefits (Details) [Line Items] | ' |
Restricted Cash and Cash Equivalents | 23,900,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 23,900,000 |
Fujitsu Corporate Pension Fund and Retirement Allowance Plan [Member] | ' |
Note 12. Pension and Post-Retirement Benefits (Details) [Line Items] | ' |
Pension Expense | 1,000,000 |
Defined Benefit Pension Plan, Liabilities | $500,000 |
Note_13_Income_Taxes_Details
Note 13. Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | |
Note 13. Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit) | ($1,644,000) | $2,757,000 | ($891,000) | $9,572,000 | ' |
Federal Operating Loss Carryforward Amount Subject To Annual Limitations | ' | ' | ' | ' | 489,700,000 |
Annual Limitation On Federal Operating Loss Carryforward | ' | ' | ' | ' | 27,200,000 |
Internal Revenue Service (IRS) [Member] | ' | ' | ' | ' | ' |
Note 13. Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' | ' | 989,900,000 |
State and Local Jurisdiction [Member] | ' | ' | ' | ' | ' |
Note 13. Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' | ' | 218,800,000 |
Tax Credit Carryforward, Amount | 17,600,000 | ' | 17,600,000 | ' | ' |
State Of California [Member] | ' | ' | ' | ' | ' |
Note 13. Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' |
Tax Credit Carryforward, Amount | 16,800,000 | ' | 16,800,000 | ' | ' |
Foreign Tax Credit[Member] | ' | ' | ' | ' | ' |
Note 13. Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' |
Tax Credit Carryforward, Amount | 1,000,000 | ' | 1,000,000 | ' | ' |
Research and Development Credits [Member] | ' | ' | ' | ' | ' |
Note 13. Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' |
Tax Credit Carryforward, Amount | $1,200,000 | ' | $1,200,000 | ' | ' |
Tax Credit Carryforward, Expiration Date | ' | ' | 31-Dec-32 | ' | ' |
Minimum [Member] | Foreign Tax Credit[Member] | ' | ' | ' | ' | ' |
Note 13. Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' |
Tax Credit Carryforward, Expiration Date | ' | ' | 31-Dec-20 | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Note 13. Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards, Expiration Date | ' | ' | 31-Dec-16 | ' | ' |
Maximum [Member] | Foreign Tax Credit[Member] | ' | ' | ' | ' | ' |
Note 13. Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' |
Tax Credit Carryforward, Expiration Date | ' | ' | 31-Dec-21 | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Note 13. Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards, Expiration Date | ' | ' | 31-Dec-31 | ' | ' |
Note_13_Income_Taxes_Details_I
Note 13. Income Taxes (Details) - Income Tax Expense (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Income Tax Expense [Abstract] | ' | ' | ' | ' |
Income tax expense (benefit) | ($1,644) | $2,757 | ($891) | $9,572 |
Note_14_Restructuring_and_Othe2
Note 14. Restructuring and Others (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Mar. 25, 2012 | Sep. 29, 2013 |
Subsequent Event [Member] | ' | ' |
Note 14. Restructuring and Others (Details) [Line Items] | ' | ' |
Restructuring and Related Cost, Expected Cost | ' | $0 |
Fiscal Year 2011 Restructuring Plan [Member] | ' | ' |
Note 14. Restructuring and Others (Details) [Line Items] | ' | ' |
Restructuring and Related Cost, Incurred Cost | ' | 22.6 |
Fiscal Year 2009 and 2010 Restructuring Plan [Member] | ' | ' |
Note 14. Restructuring and Others (Details) [Line Items] | ' | ' |
Restructuring and Related Cost, Incurred Cost | ' | 43.2 |
Restructuring Reserve, Accrual Adjustment | $0.80 | ' |
Note_14_Restructuring_and_Othe3
Note 14. Restructuring and Others (Details) - Restructuring Activity Related to 2013 Restructuring Plan (Fiscal Year 2013 Restructuring Plan [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 29, 2013 | |
Fiscal Year 2013 Restructuring Plan [Member] | ' | |
Note 14. Restructuring and Others (Details) - Restructuring Activity Related to 2013 Restructuring Plan [Line Items] | ' | |
Severance and others | $6,264 | |
Restructuring charges | 6,264 | |
Non-cash adjustments (1) | -230 | [1] |
Cash payments | -4,351 | |
Accrued restructuring balance, end of period | $1,683 | |
[1] | Non cash adjustments mainly relate to intangibles written off. |
Note_14_Restructuring_and_Othe4
Note 14. Restructuring and Others (Details) - Restructuring Activity Related to 2011 Restructuring Plan (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Note 14. Restructuring and Others (Details) - Restructuring Activity Related to 2011 Restructuring Plan [Line Items] | ' | ' | ' | ' | ||||
Asset impairment charges | ' | ' | ' | $2,070 | ||||
Fiscal Year 2011 Restructuring Plan [Member] | ' | ' | ' | ' | ||||
Note 14. Restructuring and Others (Details) - Restructuring Activity Related to 2011 Restructuring Plan [Line Items] | ' | ' | ' | ' | ||||
Accrued restructuring balance, beginning of period | 30 | 785 | 538 | 8,087 | ||||
Gain on sale of equipment | ' | ' | ' | -3,798 | ||||
Asset relocation fees | ' | 854 | ' | 4,686 | ||||
Asset impairment charges | ' | ' | ' | 2,070 | ||||
Severance and others | ' | 1,009 | ' | 3,550 | ||||
Restructuring charges | ' | 1,863 | ' | 6,508 | ||||
Non-cash adjustments (1) | ' | [1] | -43 | [1] | -75 | [1] | 1,557 | [1] |
Cash payments | -30 | -344 | -463 | -13,891 | ||||
Accrued restructuring balance, end of period | ' | $2,261 | ' | $2,261 | ||||
[1] | Non cash adjustments relate to gain on sale of equipment, asset impairment charges and foreign currency translations. |
Note_15_Commitments_and_Contin2
Note 15. Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 29, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Unrecorded Unconditional Purchase Obligation (in Dollars) | $141.40 |
Limited Product Warranty Period | '1 year |
Note_15_Commitments_and_Contin3
Note 15. Commitments and Contingencies (Details) - Product Warranties (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Product Warranties [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | $1,127 | $3,860 | $2,124 | $2,537 |
Provision for warranties issued | 760 | 404 | 1,360 | 2,991 |
Settlements made | -827 | -1,205 | -2,412 | -2,305 |
Changes in liability for pre-existing warranties during the period | 106 | -89 | 94 | -253 |
Balance at end of period | $1,166 | $2,970 | $1,166 | $2,970 |
Note_16_Ongoing_Bankruptcy_Rel1
Note 16. Ongoing Bankruptcy Related Matters (Details) (USD $) | Sep. 29, 2013 | 31-May-10 |
In Millions, unless otherwise specified | ||
Ongoing Bankruptcy Related Matters [Abstract] | ' | ' |
Bankruptcy Claims, Amount of Claims under Review by Management | $7.20 | $1,500 |