Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Registrant Name | CIRRUS LOGIC INC | |
Entity Central Index Key | 772,406 | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --03-30 | |
Entity Common Stock, Shares Outstanding | 61,021,170 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 186,459 | $ 235,604 |
Marketable securities | 39,877 | 26,397 |
Accounts receivable, net | 126,604 | 100,801 |
Inventories | 173,063 | 205,760 |
Prepaid assets | 30,502 | 31,235 |
Other current assets | 18,616 | 13,877 |
Total current assets | 575,121 | 613,674 |
Long-term marketable securities | 159,334 | 172,499 |
Property and equipment, net | 195,804 | 191,154 |
Intangibles, net | 99,366 | 111,547 |
Goodwill | 287,042 | 288,718 |
Deferred tax assets | 15,985 | 14,716 |
Other assets | 34,151 | 37,809 |
Total assets | 1,366,803 | 1,430,117 |
Current liabilities: | ||
Accounts payable | 53,655 | 69,850 |
Accrued salaries and benefits | 22,924 | 35,721 |
Software license agreements | 22,775 | 21,981 |
Other accrued liabilities | 19,290 | 12,657 |
Total current liabilities | 118,644 | 140,209 |
Long-term liabilities: | ||
Software license agreements | 18,650 | 27,765 |
Non-current income taxes | 94,612 | 92,753 |
Other long-term liabilities | 7,801 | 7,662 |
Total long-term liabilities | 121,063 | 128,180 |
Stockholders' equity: | ||
Capital stock | 1,325,287 | 1,312,434 |
Accumulated deficit | (184,673) | (139,345) |
Accumulated other comprehensive loss | (13,518) | (11,361) |
Total stockholders' equity | 1,127,096 | 1,161,728 |
Total liabilities and stockholders' equity | $ 1,366,803 | $ 1,430,117 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 24, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 254,483 | $ 320,735 |
Cost of sales | 129,924 | 159,019 |
Gross profit | 124,559 | 161,716 |
Operating expenses | ||
Research and development | 97,932 | 83,557 |
Selling, general and administrative | 32,784 | 30,859 |
Total operating expenses | 130,716 | 114,416 |
Income (loss) from operations | (6,157) | 47,300 |
Interest income | 1,706 | 929 |
Interest expense | (259) | (335) |
Other income (expense) | 210 | (19) |
Income (loss) before income taxes | (4,500) | 47,875 |
Provision (benefit) for income taxes | (228) | 4,963 |
Net income (loss) | $ (4,272) | $ 42,912 |
Basic earnings (loss) per share (in dollars per share) | $ (0.07) | $ 0.67 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.07) | $ 0.64 |
Basic weighted average common shares outstanding (in shares) | 61,462 | 64,097 |
Diluted weighted average common shares outstanding (in shares) | 61,462 | 67,160 |
Consolidated Condensed Stateme4
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 24, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (4,272) | $ 42,912 |
Other comprehensive income (loss), before tax | ||
Foreign currency translation gain (loss) | (2,190) | 290 |
Unrealized gain on marketable securities | 41 | 34 |
Actuarial gain on pension plan | 0 | 792 |
Provision for income taxes | (8) | (150) |
Comprehensive income (loss) | $ (6,429) | $ 43,878 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 24, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (4,272) | $ 42,912 |
Adjustments to reconcile net income (loss) to net cash generated (used) by operating activities: | ||
Depreciation and amortization | 22,639 | 19,596 |
Stock compensation expense | 12,794 | 11,403 |
Deferred income taxes | (371) | 435 |
Loss on retirement or write-off of long-lived assets | 314 | 152 |
Charges for defined benefit pension plan | 0 | 658 |
Other non-cash adjustments | 107 | (3,940) |
Net change in operating assets and liabilities: | ||
Accounts receivable, net | (20,264) | (42,463) |
Inventories | 32,306 | (34,534) |
Other assets | (3,361) | (941) |
Accounts payable and other accrued liabilities | (31,185) | 194 |
Income taxes payable | (4,018) | 2,712 |
Net cash generated (used) by operating activities | 4,689 | (3,816) |
Cash flows from investing activities: | ||
Maturities and sales of available-for-sale marketable securities | 17,655 | 102,275 |
Purchases of available-for-sale marketable securities | (17,937) | (148,674) |
Purchases of property, equipment and software | (10,827) | (10,749) |
Investments in technology | (1,728) | (20,762) |
Net cash used in investing activities | (12,837) | (77,910) |
Cash flows from financing activities: | ||
Principal payments on long-term revolver | 0 | (60,000) |
Issuance of common stock, net of shares withheld for taxes | 60 | 1,889 |
Repurchase of stock to satisfy employee tax withholding obligations | (1,057) | (1,861) |
Repurchase and retirement of common stock | (40,000) | (45,550) |
Net cash used in financing activities | (40,997) | (105,522) |
Net decrease in cash and cash equivalents | (49,145) | (187,248) |
Cash and cash equivalents at beginning of period | 235,604 | 351,166 |
Cash and cash equivalents at end of period | $ 186,459 | $ 163,918 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated condensed financial statements have been prepared by Cirrus Logic, Inc. (“Cirrus Logic,” “we,” “us,” “our,” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”). The accompanying unaudited consolidated condensed financial statements do not include complete footnotes and financial presentations. As a result, these financial statements should be read along with the audited consolidated financial statements and notes thereto for the year ended March 31, 2018 , included in our Annual Report on Form 10-K filed with the Commission on May 30, 2018. In our opinion, the financial statements reflect all material adjustments, including normal recurring adjustments, necessary for a fair presentation of the financial position, operating results and cash flows for those periods presented. The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect reported assets, liabilities, revenues and expenses, as well as disclosure of contingent assets and liabilities. Actual results could differ from those estimates and assumptions. Moreover, the results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the entire year. Additionally, certain prior period amounts have been reclassified to conform to current year presentation, with no impact to earnings. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (ASC Topic 606) . The purpose of this ASU is to converge revenue recognition requirements per U.S. GAAP and International Financial Reporting Standards (“IFRS”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date after public comment supported a proposal to delay the effective date of this ASU to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company completed the process of reviewing our customers’ contracts in respect of performance obligation identification and satisfaction, pricing, warranties, and return rights, among other considerations, in the first quarter of fiscal year 2019. According to the standard, the Company may adopt by full retrospective method, which applies retrospectively to each prior period presented, or by modified retrospective method with the cumulative effect adjustment recognized in beginning retained earnings as of the date of adoption. The Company adopted this standard using the modified retrospective adoption method in the first quarter of fiscal year 2019 with no income statement impact, and therefore no beginning retained earnings impact. See Note 8 - Revenues for additional details. The effects of the changes made to our balance sheet at adoption were as follows (in thousands): Balance at March 31, 2018 Impact from ASU 2014-09 Adoption Balance at April 1, 2018 Financial statement line item: Accounts receivable $ 100,801 $ 5,539 $ 106,340 Inventories 205,760 (391 ) 205,369 Other current assets 13,877 391 14,268 Other accrued liabilities $ (12,657 ) $ (5,539 ) $ (18,196 ) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The FASB issued this update to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key leasing arrangement details . Lessees would recognize operating leases on the balance sheet under this ASU — with the future lease payments recognized as a liability, measured at present value, and the right-of-use asset recognized for the lease term. A single lease cost would be recognized over the lease term. For terms less than twelve months, a lessee would be permitted to make an accounting policy election to recognize lease expense for such leases generally on a straight-line basis over the lease term. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The modified retrospective approach is the only allowed adoption method. We currently expect that most of our operating lease commitments will be subject to the new standard and recognized as right-of-use assets and operating lease liabilities upon adoption, which will materially increase our total assets and total liabilities that we report relative to such amounts prior to adoption of this ASU. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU requires credit losses on available-for-sale debt securities to be presented as an allowance rather than a write-down. Unlike current U.S. GAAP, the credit losses could be reversed with changes in estimates, and recognized in current year earnings. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods. The Company is currently evaluating the impact of this ASU with no expected material impact. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU eliminates step two of the goodwill impairment test. An impairment charge is to be recognized for the amount by which the current value exceeds the fair value. This ASU is effective for annual periods beginning after December 15, 2019, including interim periods. Early adoption is permitted, for interim or annual goodwill impairment tests performed after January 1, 2017, and should be applied prospectively. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. The Company is currently evaluating the impact of this ASU with no expected material impact. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires an employer to disaggregate the service cost component from the other components of net benefit cost. It also provides guidance on income statement presentation for service cost and other components of net benefit cost. This ASU is effective for annual periods beginning after December 15, 2017, including interim periods. The Company adopted this ASU in the first quarter of fiscal year 2019. The expected impact of adoption is discussed in Note 9, to be recorded upon the buy-out settlement of the defined benefit pension plan. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . This ASU applies to any company that changes the terms or conditions of a share-based award, considered a modification. Modification accounting would be applied unless certain conditions were met related to the fair value of the award, the vesting conditions and the classification of the modified award. This ASU is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The standard should be applied prospectively to an award modified on or after the adoption date. The Company adopted this ASU in the first quarter of fiscal year 2019 with no financial statement impact as no awards were modified in the current period. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This ASU allows for the classification of stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income to retained earnings. This ASU is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The standard should be applied in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in tax rate is recognized. The Company is currently evaluating the potential financial statement impact of this ASU. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This ASU expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees and will apply to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of this ASU, but does not expect a material impact to the financial statements. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Jun. 30, 2018 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities The Company’s investments that have original maturities greater than 90 days have been classified as available-for-sale securities in accordance with U.S. GAAP. Marketable securities are categorized on the consolidated condensed balance sheet as short- and long-term marketable securities, as appropriate. The following table is a summary of available-for-sale securities at June 30, 2018 (in thousands): As of June 30, 2018 Amortized Gross Gross Estimated Corporate debt securities $ 187,446 $ 12 $ (2,259 ) $ 185,199 Non-US government securities 13,693 — (137 ) 13,556 Agency discount notes 460 — (4 ) 456 Total securities $ 201,599 $ 12 $ (2,400 ) $ 199,211 The Company typically invests in highly-rated securities with original maturities generally ranging from one to three years. The Company's specifically identified gross unrealized loss of $2.4 million related to securities with total amortized cost of approximately $193.5 million at June 30, 2018 . Fifteen securities, representing less than 3% of the portfolio's total amortized cost, have been in a continuous unrealized loss position for more than 12 months as of June 30, 2018 . The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipated or actual changes in credit rating and duration management. When evaluating an investment for other-than-temporary impairment, the Company reviews factors including the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, changes in market interest rates and whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s cost basis. As of June 30, 2018 , the Company does not consider any of its investments to be other-than-temporarily impaired. The following table is a summary of available-for-sale securities at March 31, 2018 (in thousands): As of March 31, 2018 Amortized Gross Gross Estimated Corporate debt securities $ 185,636 $ 4 $ (2,318 ) $ 183,322 Non-US government securities 14,730 — (111 ) 14,619 Certificates of deposit 500 — — 500 Agency discount notes 459 — (4 ) 455 Total securities $ 201,325 $ 4 $ (2,433 ) $ 198,896 The Company’s specifically identified gross unrealized losses of $2.4 million related to securities with total amortized cost of approximately $198.2 million at March 31, 2018 . No securities had been in a continuous loss position for more than 12 months as of March 31, 2018 . The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipated or actual changes in credit rating and duration management. When evaluating an investment for other-than-temporary impairment, the Company reviews factors including the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, changes in market interest rates and whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s cost basis. As of March 31, 2018 , the Company did not consider any of its investments to be other-than-temporarily impaired. The cost and estimated fair value of available-for-sale securities by contractual maturities were as follows (in thousands): June 30, 2018 March 31, 2018 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Within 1 year $ 40,152 $ 39,877 $ 26,560 $ 26,397 After 1 year 161,447 159,334 174,765 172,499 Total $ 201,599 $ 199,211 $ 201,325 $ 198,896 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company has determined that the only assets and liabilities in the Company’s financial statements that are required to be measured at fair value on a recurring basis are the Company’s cash equivalents, investment portfolio and pension plan assets / liabilities. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s cash equivalents and investment portfolio assets consist of debt securities, money market funds, non-U.S. government securities, securities of U.S. government-sponsored enterprises, and certificates of deposit and are reflected on our consolidated condensed balance sheets under the headings cash and cash equivalents, marketable securities, and long-term marketable securities. The Company determines the fair value of its investment portfolio assets by obtaining non-binding market prices from its third-party pricing providers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. As of June 30, 2018 and March 31, 2018 , the Company classified all investment portfolio and pension plan assets and liabilities as Level 1 or Level 2 assets and liabilities. The Company has no Level 3 assets. There were no transfers between Level 1, Level 2, or Level 3 measurements for the three months ending June 30, 2018 . The following summarizes the fair value of our financial instruments at June 30, 2018 , exclusive of pension plan assets and liabilities (in thousands): Quoted Prices Significant Significant Total Assets: Cash equivalents Money market funds $ 151,017 $ — $ — $ 151,017 Available-for-sale securities Corporate debt securities $ — $ 185,199 $ — $ 185,199 Non-US government securities — 13,556 — 13,556 Agency discount notes — 456 — 456 $ — $ 199,211 $ — $ 199,211 The following summarizes the fair value of our financial instruments at March 31, 2018 , exclusive of pension plan assets and liabilities (in thousands): Quoted Prices Significant Significant Total Assets: Cash equivalents Money market funds $ 211,891 $ — $ — $ 211,891 Available-for-sale securities Corporate debt securities $ — $ 183,322 $ — $ 183,322 Non-US government securities — 14,619 — 14,619 Certificates of deposit — 500 — 500 Agency discount notes — 455 — 455 $ — $ 198,896 $ — $ 198,896 |
Accounts Receivable, net
Accounts Receivable, net | 3 Months Ended |
Jun. 30, 2018 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net The following are the components of accounts receivable, net (in thousands): June 30, March 31, 2018 2018 Gross accounts receivable $ 126,807 $ 101,004 Allowance for doubtful accounts (203 ) (203 ) Accounts receivable, net $ 126,604 $ 100,801 |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are comprised of the following (in thousands): June 30, March 31, 2018 2018 Work in process $ 85,858 $ 97,138 Finished goods 87,205 108,622 $ 173,063 $ 205,760 |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Jun. 30, 2018 | |
Line of Credit Facility [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility On July 12, 2016, Cirrus Logic entered into an amended and restated credit agreement (the “ Credit Agreement”) with Wells Fargo Bank, National Association, as Administrative Agent, and the Lenders party thereto, for the purpose of refinancing an existing credit facility and providing ongoing working capital. The Credit Agreement provides for a $300 million senior secured revolving credit facility (the “Credit Facility”). The Credit Facility matures on July 12, 2021. The Credit Facility is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries (the “Subsidiary Guarantors”). The Credit Facility is secured by substantially all of the assets of Cirrus Logic and any Subsidiary Guarantors, except for certain excluded assets. Borrowings under the Credit Facility may, at our election, bear interest at either (a) a base rate plus the applicable margin (“Base Rate Loans”) or (b) a LIBOR rate plus the applicable margin (“LIBOR Rate Loans”). The applicable margin ranges from 0% to 0.50% per annum for Base Rate Loans and 1.25% to 2.00% per annum for LIBOR Rate Loans based on the Leverage Ratio (as defined below). A commitment fee accrues at a rate per annum ranging from 0.20% to 0.30% (based on the Leverage Ratio) on the average daily unused portion of the commitment of the lenders. The Credit Agreement contains certain financial covenants providing that (a) the ratio of consolidated funded indebtedness to consolidated EBITDA for the prior four fiscal quarters must not be greater than 3.00 to 1.00 (the “Leverage Ratio”) and (b) the ratio of consolidated EBITDA for the prior four consecutive fiscal quarters to consolidated fixed charges (including amounts paid in cash for consolidated interest expenses, capital expenditures, scheduled principal payments of indebtedness, and income taxes) for the prior four consecutive fiscal quarters must not be less than 1.25 to 1.00 as of the end of each fiscal quarter. The Credit Agreement also contains negative covenants limiting the Company’s or any Subsidiary’s ability to, among other things, incur debt, grant liens, make investments, effect certain fundamental changes, make certain asset dispositions, and make certain restricted payments. As of June 30, 2018 , the Company had no amounts outstanding under the Credit Facility and was in compliance with all covenants under the Credit Agreement. |
Revenues
Revenues | 3 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregation of revenue We disaggregate revenue from contracts with customers based on the ship to location of the customer. The geographic regions that are reviewed are the United States and countries outside of the United States (primarily located in Asia). Total net sales based on the disaggregation criteria described above are as follows: Three Months Ended June 30, June 24, 2018 2017 Non-United States $ 246,076 $ 312,887 United States 8,407 7,848 $ 254,483 $ 320,735 Performance obligations The Company's single performance obligation is delivering the promised goods to the customer. Performance obligations are satisfied upon transfer of product control to the customer, as defined per the shipping terms within the customer's contract. As allowed by ASC 606, disclosure of the value of unsatisfied performance obligations for contracts with an original expected length of one year or less is not required. This term exists in the vast majority of the Company's contracts. As of June 30, 2018, the Company had no unsatisfied performance obligations. The Company’s products primarily include a standard one -year warranty. Warranties qualify as assurance-type warranties, as goods can be returned for product non-conformance and defect only. As such, they are not considered a separate performance obligation. Contract balances The Company's standard terms do not include significant financing components or noncash consideration. There have been no material impairment losses on accounts receivable. There are no material contract assets or contract liabilities recorded on the consolidated condensed balance sheets. Transaction price Pricing is established and agreed upon by the customer prior to an order being placed. Variable pricing currently includes rebates, rights of returns, warranties, price protection and stock rotation. Rebates are granted as a customer account credit, based on agreed-upon sales thresholds. Rights of return and warranty costs are estimated using the "most likely amount" method by reviewing historical returns to determine the most likely customer return rate and applying materiality thresholds. Price protection includes price adjustments available to certain distributors based upon established book price and a stated adjustment period. Stock rotation is also available to certain distributors based on a stated maximum of prior billings. |
Pension Plan
Pension Plan | 3 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plan | Pension Plan As a result of our acquisition of Wolfson in fiscal year 2015, the Company has a defined benefit pension scheme (the “Scheme”), for some individuals in the United Kingdom. The participants in the Scheme no longer accrue benefits and therefore the Company will not be required to make contributions in respect of future accruals. During fiscal year 2018, the Company authorized the termination of the Scheme under which 60 participants had accrued benefits. On March 16, 2018, the Scheme completed a buy-in transaction whereby the assets of the Scheme, together with a final contribution from the Company of $11.0 million , were invested in a bulk purchase annuity contract that fully insured the benefits payable to the members of the Scheme at that time. As the buy-in transaction resulted in the defined benefit obligations being fully insured, the Company expects no further material contributions. The bulk purchase annuity contract is structured to enable the Scheme to move to full buy-out (following which the insurance company would become directly responsible for the pension payments) and the intention is to proceed on this basis. When the buy-out is complete, a settlement loss will be recognized within other non-operating expense and will include any unamortized loss recorded within Other Comprehensive Income, which is approximately $11.2 million at June 30, 2018. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our provision (benefit) for income taxes is based on estimated effective tax rates derived from an estimate of annual consolidated earnings before taxes, adjusted for nondeductible expenses, other permanent items and any applicable credits. The following table presents the provision (benefit) for income taxes (in thousands) and the effective tax rates: Three Months Ended June 30, June 24, 2018 2017 Income (loss) before income taxes $ (4,500 ) $ 47,875 Provision (benefit) for income taxes $ (228 ) $ 4,963 Effective tax rate 5.1 % 10.4 % Our income tax benefit for the first quarter of fiscal year 2019 was $0.2 million compared to $5.0 million in income tax expense for the first quarter of fiscal year 2018 , resulting in effective tax rates of 5.1% and 10.4% for the first quarter of fiscal year 2019 and 2018 , respectively. Our effective tax rate for the first quarter of fiscal year 2019 was lower than the federal statutory rate primarily due to the effect of income earned in certain foreign jurisdictions that is taxed below the federal statutory rate and the U.S. federal research and development tax credit. Our effective tax rate for the first quarter of fiscal year 2018 was lower than the federal statutory rate primarily due to income earned in certain foreign jurisdictions taxed below the federal statutory rate, excess tax benefits from stock-based compensation, and the release of prior year unrecognized tax benefits that were determined to be effectively settled in the first quarter of fiscal year 2018. The Tax Act was enacted on December 22, 2017. The Tax Act reduced the U.S. federal corporate income tax rate from 35.0% to 21.0% , restricts the deductibility of certain business expenses, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiar ies that were previously tax-deferred and creates new taxes on certain foreign sourced earnings, among other provisions. We are applying the guidance in SEC Staff Accounting Bulletin No. 118 when accounting for the enactment-date effects of the Tax Act. At June 30, 2018 , we have not completed our accounting for the income tax effects of the Tax Act. We have made a reasonable estimate of the income tax effects on our existing deferred tax balances and the one-time transition tax. During the first quarter of fiscal year 2019 , we did not recognize adjustments to provisional amounts recorded at March 31, 2018. We are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of deferred tax balances or give rise to new deferred tax amounts. In addition, we have not yet finalized the calculation of foreign earnings & profits ("E&P") and the amounts held in cash or other specified assets on the applicable measurement date. We will continue to make and refine calculations as additional analysis is completed. Under a provision commonly known as global intangible low taxed income ("GILTI"), the Tax Act subjects a U.S. shareholder to current tax on certain earnings of foreign subsidiaries. Under US GAAP, an accounting policy election can be made to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years, or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. Given the complexity of the GILTI provisions, we are still evaluating the effects of the GILTI provisions and have not yet made an accounting policy election. At June 30, 2018 , because we are still evaluating the GILTI provisions, we have included GILTI related to current-year operations only in our estimated annual effective tax rate and have not provided additional GILTI on deferred items. The Company records unrecognized tax benefits for the estimated risk associated with tax positions taken on tax returns. At June 30, 2018 , the Company had unrecognized tax benefits of $55.8 million , all of which would impact the effective tax rate if recognized. The Company recorded gross increases to its current year unrecognized tax benefits of $0.7 million for the first quarter of fiscal year 2019 . The Company’s total unrecognized tax benefits are classified as “ Non-current income taxes" in the consolidated condensed balance sheets. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of June 30, 2018 , the balance of accrued interest and penalties, net of tax, was $1.3 million . Fiscal years 2015 through 2018 remain open to examination by the major taxing jurisdictions to which the Company is subject, although carry forward attributes that were generated in tax years prior to fiscal year 2015 may be adjusted upon examination by the tax authorities if they have been, or will be, used in a future period. The Company's United Kingdom subsidiaries are currently under a limited scope tax audit for certain income tax matters related to fiscal year 2016. The Company believes it has accrued adequate reserves related to the matters under examination. The Company is not under an income tax audit in any other major taxing jurisdiction. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is based on the weighted effect of common shares issued and outstanding and is calculated by dividing net income (loss) by the basic weighted average shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares used in the basic net income per share calculation, plus the equivalent number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding. These potentially dilutive items consist primarily of outstanding stock options. The following table details the calculation of basic and diluted earnings (loss) per share for the three months ended June 30, 2018 and June 24, 2017 (in thousands, except per share amounts): Three Months Ended June 30, June 24, 2018 2017 Numerator: Net income (loss) $ (4,272 ) $ 42,912 Denominator: Weighted average shares outstanding 61,462 64,097 Effect of dilutive securities — 3,063 Weighted average diluted shares 61,462 67,160 Basic earnings (loss) per share $ (0.07 ) $ 0.67 Diluted earnings (loss) per share $ (0.07 ) $ 0.64 All potential shares of common stock are anti-dilutive in periods of net loss, and therefore excluded for the three months ended June 30, 2018 . The weighted outstanding shares excluded from our diluted calculation for the three months ended June 24, 2017 were 218 thousand , as the shares were anti-dilutive. |
Legal Matters
Legal Matters | 3 Months Ended |
Jun. 30, 2018 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal Matters | Legal Matters From time to time, we are involved in legal proceedings concerning matters arising in connection with the conduct of our business activities. We regularly evaluate the status of legal proceedings in which we are involved in order to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred, and to determine if accruals are appropriate. We further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made. Based on current knowledge, management does not believe that there are any pending matters that could potentially have a material adverse effect on our business, financial condition, results of operations or cash flows. However, we are engaged in various legal actions in the normal course of business. There can be no assurances in light of the inherent uncertainties involved in any potential legal proceedings, some of which are beyond our control, and an adverse outcome in any legal proceeding could be material to our results of operations or cash flows for any particular reporting period. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock The Company issued a net 0.1 million and 0.2 million shares of common stock during the three months ending June 30, 2018 and June 24, 2017 , respectively, primarily pursuant to the Company's 2006 Stock Incentive Plan. Share Repurchase Program Since inception, $40.0 million of the Company’s common stock has been repurchased under the Company’s 2018 $200 million share repurchase program, all in the first quarter of fiscal year 2019, leaving $160.0 million available for repurchase under this plan as of June 30, 2018 . During the three months ended June 30, 2018 , the Company repurchased 1.0 million shares of its common stock, for $40.0 million , at an average cost of $38.87 per share. All of these shares were repurchased in the open market and were funded from existing cash. All shares of our common stock that were repurchased were retired as of June 30, 2018 . |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We determine our operating segments in accordance with FASB guidelines. Our Chief Executive Officer (“CEO”) has been identified as the chief operating decision maker under these guidelines. The Company operates and tracks its results in one reportable segment, but reports revenue performance in two product lines, Portable Audio and Non-Portable Audio and Other. Our CEO receives and uses enterprise-wide financial information to assess financial performance and allocate resources, rather than detailed information at a product line level. Additionally, our product lines have similar characteristics and customers. They share support functions such as sales, public relations, supply chain management, various research and development and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology. Therefore, there is no complete, discrete financial information maintained for these product lines. Revenues from our product lines are as follows (in thousands): Three Months Ended June 30, June 24, 2018 2017 Portable Audio Products $ 212,260 $ 280,688 Non-Portable Audio and Other Products 42,223 40,047 $ 254,483 $ 320,735 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 24, 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the decision of the U.S. Tax Court in Altera Corp. v. Commissioner related to the treatment of stock based compensation in an intercompany cost sharing arrangement. We are currently evaluating the impact of this decision. The effect this decision may have on our financial statements, if any, could be material. |
Recently Issued Accounting Pr21
Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (ASC Topic 606) . The purpose of this ASU is to converge revenue recognition requirements per U.S. GAAP and International Financial Reporting Standards (“IFRS”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date after public comment supported a proposal to delay the effective date of this ASU to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company completed the process of reviewing our customers’ contracts in respect of performance obligation identification and satisfaction, pricing, warranties, and return rights, among other considerations, in the first quarter of fiscal year 2019. According to the standard, the Company may adopt by full retrospective method, which applies retrospectively to each prior period presented, or by modified retrospective method with the cumulative effect adjustment recognized in beginning retained earnings as of the date of adoption. The Company adopted this standard using the modified retrospective adoption method in the first quarter of fiscal year 2019 with no income statement impact, and therefore no beginning retained earnings impact. See Note 8 - Revenues for additional details. The effects of the changes made to our balance sheet at adoption were as follows (in thousands): Balance at March 31, 2018 Impact from ASU 2014-09 Adoption Balance at April 1, 2018 Financial statement line item: Accounts receivable $ 100,801 $ 5,539 $ 106,340 Inventories 205,760 (391 ) 205,369 Other current assets 13,877 391 14,268 Other accrued liabilities $ (12,657 ) $ (5,539 ) $ (18,196 ) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The FASB issued this update to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key leasing arrangement details . Lessees would recognize operating leases on the balance sheet under this ASU — with the future lease payments recognized as a liability, measured at present value, and the right-of-use asset recognized for the lease term. A single lease cost would be recognized over the lease term. For terms less than twelve months, a lessee would be permitted to make an accounting policy election to recognize lease expense for such leases generally on a straight-line basis over the lease term. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The modified retrospective approach is the only allowed adoption method. We currently expect that most of our operating lease commitments will be subject to the new standard and recognized as right-of-use assets and operating lease liabilities upon adoption, which will materially increase our total assets and total liabilities that we report relative to such amounts prior to adoption of this ASU. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU requires credit losses on available-for-sale debt securities to be presented as an allowance rather than a write-down. Unlike current U.S. GAAP, the credit losses could be reversed with changes in estimates, and recognized in current year earnings. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods. The Company is currently evaluating the impact of this ASU with no expected material impact. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU eliminates step two of the goodwill impairment test. An impairment charge is to be recognized for the amount by which the current value exceeds the fair value. This ASU is effective for annual periods beginning after December 15, 2019, including interim periods. Early adoption is permitted, for interim or annual goodwill impairment tests performed after January 1, 2017, and should be applied prospectively. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. The Company is currently evaluating the impact of this ASU with no expected material impact. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires an employer to disaggregate the service cost component from the other components of net benefit cost. It also provides guidance on income statement presentation for service cost and other components of net benefit cost. This ASU is effective for annual periods beginning after December 15, 2017, including interim periods. The Company adopted this ASU in the first quarter of fiscal year 2019. The expected impact of adoption is discussed in Note 9, to be recorded upon the buy-out settlement of the defined benefit pension plan. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . This ASU applies to any company that changes the terms or conditions of a share-based award, considered a modification. Modification accounting would be applied unless certain conditions were met related to the fair value of the award, the vesting conditions and the classification of the modified award. This ASU is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The standard should be applied prospectively to an award modified on or after the adoption date. The Company adopted this ASU in the first quarter of fiscal year 2019 with no financial statement impact as no awards were modified in the current period. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This ASU allows for the classification of stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income to retained earnings. This ASU is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The standard should be applied in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in tax rate is recognized. The Company is currently evaluating the potential financial statement impact of this ASU. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This ASU expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees and will apply to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of this ASU, but does not expect a material impact to the financial statements. |
Revenues | Performance obligations The Company's single performance obligation is delivering the promised goods to the customer. Performance obligations are satisfied upon transfer of product control to the customer, as defined per the shipping terms within the customer's contract. As allowed by ASC 606, disclosure of the value of unsatisfied performance obligations for contracts with an original expected length of one year or less is not required. This term exists in the vast majority of the Company's contracts. As of June 30, 2018, the Company had no unsatisfied performance obligations. The Company’s products primarily include a standard one -year warranty. Warranties qualify as assurance-type warranties, as goods can be returned for product non-conformance and defect only. As such, they are not considered a separate performance obligation. Contract balances The Company's standard terms do not include significant financing components or noncash consideration. There have been no material impairment losses on accounts receivable. There are no material contract assets or contract liabilities recorded on the consolidated condensed balance sheets. Transaction price Pricing is established and agreed upon by the customer prior to an order being placed. Variable pricing currently includes rebates, rights of returns, warranties, price protection and stock rotation. Rebates are granted as a customer account credit, based on agreed-upon sales thresholds. Rights of return and warranty costs are estimated using the "most likely amount" method by reviewing historical returns to determine the most likely customer return rate and applying materiality thresholds. Price protection includes price adjustments available to certain distributors based upon established book price and a stated adjustment period. Stock rotation is also available to certain distributors based on a stated maximum of prior billings. |
Segment Reporting, Policy | The Company operates and tracks its results in one reportable segment, but reports revenue performance in two product lines, Portable Audio and Non-Portable Audio and Other. Our CEO receives and uses enterprise-wide financial information to assess financial performance and allocate resources, rather than detailed information at a product line level. Additionally, our product lines have similar characteristics and customers. They share support functions such as sales, public relations, supply chain management, various research and development and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology. Therefore, there is no complete, discrete financial information maintained for these product lines. |
Recently Issued Accounting Pr22
Recently Issued Accounting Pronouncements (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Effects of the Changes Made to Balance Sheet at Adoption | The effects of the changes made to our balance sheet at adoption were as follows (in thousands): Balance at March 31, 2018 Impact from ASU 2014-09 Adoption Balance at April 1, 2018 Financial statement line item: Accounts receivable $ 100,801 $ 5,539 $ 106,340 Inventories 205,760 (391 ) 205,369 Other current assets 13,877 391 14,268 Other accrued liabilities $ (12,657 ) $ (5,539 ) $ (18,196 ) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Marketable Securities [Abstract] | |
Schedule of Available-for-sale Securities | The following table is a summary of available-for-sale securities at June 30, 2018 (in thousands): As of June 30, 2018 Amortized Gross Gross Estimated Corporate debt securities $ 187,446 $ 12 $ (2,259 ) $ 185,199 Non-US government securities 13,693 — (137 ) 13,556 Agency discount notes 460 — (4 ) 456 Total securities $ 201,599 $ 12 $ (2,400 ) $ 199,211 The following table is a summary of available-for-sale securities at March 31, 2018 (in thousands): As of March 31, 2018 Amortized Gross Gross Estimated Corporate debt securities $ 185,636 $ 4 $ (2,318 ) $ 183,322 Non-US government securities 14,730 — (111 ) 14,619 Certificates of deposit 500 — — 500 Agency discount notes 459 — (4 ) 455 Total securities $ 201,325 $ 4 $ (2,433 ) $ 198,896 |
Schedule of Cost and Estimated Fair Value of Available-for-sale Securities by Contractual Maturity | The cost and estimated fair value of available-for-sale securities by contractual maturities were as follows (in thousands): June 30, 2018 March 31, 2018 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Within 1 year $ 40,152 $ 39,877 $ 26,560 $ 26,397 After 1 year 161,447 159,334 174,765 172,499 Total $ 201,599 $ 199,211 $ 201,325 $ 198,896 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities | The following summarizes the fair value of our financial instruments at June 30, 2018 , exclusive of pension plan assets and liabilities (in thousands): Quoted Prices Significant Significant Total Assets: Cash equivalents Money market funds $ 151,017 $ — $ — $ 151,017 Available-for-sale securities Corporate debt securities $ — $ 185,199 $ — $ 185,199 Non-US government securities — 13,556 — 13,556 Agency discount notes — 456 — 456 $ — $ 199,211 $ — $ 199,211 The following summarizes the fair value of our financial instruments at March 31, 2018 , exclusive of pension plan assets and liabilities (in thousands): Quoted Prices Significant Significant Total Assets: Cash equivalents Money market funds $ 211,891 $ — $ — $ 211,891 Available-for-sale securities Corporate debt securities $ — $ 183,322 $ — $ 183,322 Non-US government securities — 14,619 — 14,619 Certificates of deposit — 500 — 500 Agency discount notes — 455 — 455 $ — $ 198,896 $ — $ 198,896 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Accounts Receivable, Net [Abstract] | |
Components of Accounts Receivable, net | The following are the components of accounts receivable, net (in thousands): June 30, March 31, 2018 2018 Gross accounts receivable $ 126,807 $ 101,004 Allowance for doubtful accounts (203 ) (203 ) Accounts receivable, net $ 126,604 $ 100,801 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are comprised of the following (in thousands): June 30, March 31, 2018 2018 Work in process $ 85,858 $ 97,138 Finished goods 87,205 108,622 $ 173,063 $ 205,760 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Total net sales based on the disaggregation criteria described above are as follows: Three Months Ended June 30, June 24, 2018 2017 Non-United States $ 246,076 $ 312,887 United States 8,407 7,848 $ 254,483 $ 320,735 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes and Effective Tax Rates | The following table presents the provision (benefit) for income taxes (in thousands) and the effective tax rates: Three Months Ended June 30, June 24, 2018 2017 Income (loss) before income taxes $ (4,500 ) $ 47,875 Provision (benefit) for income taxes $ (228 ) $ 4,963 Effective tax rate 5.1 % 10.4 % |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table details the calculation of basic and diluted earnings (loss) per share for the three months ended June 30, 2018 and June 24, 2017 (in thousands, except per share amounts): Three Months Ended June 30, June 24, 2018 2017 Numerator: Net income (loss) $ (4,272 ) $ 42,912 Denominator: Weighted average shares outstanding 61,462 64,097 Effect of dilutive securities — 3,063 Weighted average diluted shares 61,462 67,160 Basic earnings (loss) per share $ (0.07 ) $ 0.67 Diluted earnings (loss) per share $ (0.07 ) $ 0.64 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenue from Product Lines | Revenues from our product lines are as follows (in thousands): Three Months Ended June 30, June 24, 2018 2017 Portable Audio Products $ 212,260 $ 280,688 Non-Portable Audio and Other Products 42,223 40,047 $ 254,483 $ 320,735 |
Recently Issued Accounting Pr31
Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable | $ 126,604 | $ 106,340 | $ 100,801 |
Inventories | 173,063 | 205,369 | 205,760 |
Other current assets | 18,616 | 14,268 | 13,877 |
Other accrued liabilities | $ (19,290) | (18,196) | (12,657) |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable | 100,801 | ||
Inventories | 205,760 | ||
Other current assets | 13,877 | ||
Other accrued liabilities | $ (12,657) | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable | 5,539 | ||
Inventories | (391) | ||
Other current assets | 391 | ||
Other accrued liabilities | $ (5,539) |
Marketable Securities (Schedule
Marketable Securities (Schedule of Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 201,599 | $ 201,325 |
Gross Unrealized Gains | 12 | 4 |
Gross Unrealized Losses | (2,400) | (2,433) |
Estimated Fair Value (Net Carrying Amount) | 199,211 | 198,896 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 187,446 | 185,636 |
Gross Unrealized Gains | 12 | 4 |
Gross Unrealized Losses | (2,259) | (2,318) |
Estimated Fair Value (Net Carrying Amount) | 185,199 | 183,322 |
Non-US government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 13,693 | 14,730 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (137) | (111) |
Estimated Fair Value (Net Carrying Amount) | 13,556 | 14,619 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 500 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value (Net Carrying Amount) | 500 | |
Agency discount notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 460 | 459 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4) | (4) |
Estimated Fair Value (Net Carrying Amount) | $ 456 | $ 455 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018USD ($)security | Mar. 31, 2018USD ($)security | |
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 2,400 | $ 2,433 |
Amortized cost on available for sale securities held at gross unrealized loss | $ 193,500 | $ 198,200 |
Number of securities in unrealized loss position greater than one year | security | 15 | 0 |
Percentage of gross unrealized loss to position (less than) | 3.00% | |
Minimum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Maturity period for highly-rated securities | 1 year | |
Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Maturity period for highly-rated securities | 3 years |
Marketable Securities (Schedu34
Marketable Securities (Schedule of Cost and Estimated Fair Value of Available-for-sale Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Amortized Cost | ||
Within 1 year | $ 40,152 | $ 26,560 |
After 1 year | 161,447 | 174,765 |
Amortized Cost | 201,599 | 201,325 |
Estimated Fair Value | ||
Within 1 year | 39,877 | 26,397 |
After 1 year | 159,334 | 172,499 |
Estimated Fair Value | $ 199,211 | $ 198,896 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Schedule of Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 199,211 | $ 198,896 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 199,211 | 198,896 |
Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 185,199 | 183,322 |
Corporate debt securities | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Corporate debt securities | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 185,199 | 183,322 |
Corporate debt securities | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Non-US government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 13,556 | 14,619 |
Non-US government securities | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Non-US government securities | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 13,556 | 14,619 |
Non-US government securities | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 500 | |
Certificates of deposit | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Certificates of deposit | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 500 | |
Certificates of deposit | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Agency discount notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 456 | 455 |
Agency discount notes | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Agency discount notes | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 456 | 455 |
Agency discount notes | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 151,017 | 211,891 |
Money market funds | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 151,017 | 211,891 |
Money market funds | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Accounts Receivable, net (Compo
Accounts Receivable, net (Components of Accounts Receivable, net) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Accounts Receivable, Net [Abstract] | |||
Gross accounts receivable | $ 126,807 | $ 101,004 | |
Allowance for doubtful accounts | (203) | (203) | |
Accounts receivable, net | $ 126,604 | $ 106,340 | $ 100,801 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Inventory Disclosure [Abstract] | |||
Work in process | $ 85,858 | $ 97,138 | |
Finished goods | 87,205 | 108,622 | |
Total inventories | $ 173,063 | $ 205,369 | $ 205,760 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - Credit Facility | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit facility maximum borrowing capacity | $ 300,000,000 |
Covenant terms, leverage ratio requirement | 300.00% |
Covenant terms fixed charge ratio requirement | 125.00% |
Long-term line of credit, noncurrent | $ 0 |
Minimum | |
Line of Credit Facility [Line Items] | |
Line of credit facility, unused capacity, commitment fee percentage | 0.20% |
Maximum | |
Line of Credit Facility [Line Items] | |
Line of credit facility, unused capacity, commitment fee percentage | 0.30% |
Base Rate | Minimum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.00% |
Base Rate | Maximum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.50% |
London Interbank Offered Rate (LIBOR) | Minimum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.25% |
London Interbank Offered Rate (LIBOR) | Maximum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 2.00% |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 24, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 254,483 | $ 320,735 |
Product warranty, term | 1 year | |
Non-United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 246,076 | 312,887 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 8,407 | $ 7,848 |
Pension Plan (Details)
Pension Plan (Details) $ in Thousands | Mar. 16, 2018USD ($) | Mar. 31, 2018USD ($)participant | Jun. 30, 2018USD ($) |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Number of pension plan participants authorized to terminate from Scheme | participant | 60 | ||
Contributions paid | $ 11,000 | ||
Accumulated other comprehensive loss | $ (11,361) | $ (13,518) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | $ (11,200) |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 24, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | $ (4,500) | $ 47,875 |
Provision (benefit) for income taxes | $ (228) | $ 4,963 |
Effective tax rate | 5.10% | 10.40% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 24, 2017 | |
Income Tax Disclosure [Abstract] | ||
Provision (benefit) for income taxes | $ (228) | $ 4,963 |
Effective tax rate | 5.10% | 10.40% |
Unrecognized tax benefits | $ 55,800 | |
Unrecognized tax benefits, gross increase due to current year unrecognized tax benefits | 700 | |
Balance of accrued interest and penalties, net of tax | $ 1,300 |
Net Income (Loss) Per Share (Ca
Net Income (Loss) Per Share (Calculation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 24, 2017 | |
Numerator: | ||
Net income (loss) | $ (4,272) | $ 42,912 |
Denominator: | ||
Weighted average shares outstanding (in shares) | 61,462 | 64,097 |
Effect of dilutive securities (in shares) | 0 | 3,063 |
Weighted average diluted shares (in shares) | 61,462 | 67,160 |
Basic earnings (loss) per share (in dollars per share) | $ (0.07) | $ 0.67 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.07) | $ 0.64 |
Net Income (Loss) Per Share (Na
Net Income (Loss) Per Share (Narrative) (Details) shares in Thousands | 3 Months Ended |
Jun. 24, 2017shares | |
Earnings Per Share [Abstract] | |
Weighted average shares outstanding excluded from diluted calculation (in shares) | 218 |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock) (Details) - shares shares in Millions | 3 Months Ended | |
Jun. 30, 2018 | Jun. 24, 2017 | |
Stockholders' Equity Note [Abstract] | ||
Common stock issued as part of stock incentive plan (in shares) | 0.1 | 0.2 |
Stockholders' Equity (Stock Rep
Stockholders' Equity (Stock Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jan. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |||
Repurchase and retirement of common stock, value | $ 40,000,000 | $ 40,000,000 | |
Share repurchase program, amount approved | $ 200,000,000 | ||
Remaining amount available for share repurchases under stock repurchase program | $ 160,000,000 | $ 160,000,000 | |
Repurchase and retirement of common stock (in shares) | 1 | ||
Average cost per share repurchased (in dollars per share) | $ 38.87 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2018segmentproduct_line | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 1 |
Number of product lines | product_line | 2 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Revenue from Product Lines) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 24, 2017 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 254,483 | $ 320,735 |
Portable Audio Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 212,260 | 280,688 |
Non-Portable Audio and Other Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 42,223 | $ 40,047 |