Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 25, 2017 | May 19, 2017 | Sep. 24, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Registrant Name | CIRRUS LOGIC INC | ||
Entity Central Index Key | 772,406 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Document Period End Date | Mar. 25, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-25 | ||
Entity Common Stock, Shares Outstanding | 63,891,409 | ||
Entity Public Float | $ 2,115,130,259 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Assets | ||
Cash and cash equivalents | $ 351,166 | $ 168,793 |
Marketable securities | 99,813 | 60,582 |
Accounts receivable, net | 119,974 | 88,532 |
Inventories | 167,895 | 142,015 |
Prepaid assets | 24,987 | 29,924 |
Other current assets | 12,093 | 16,283 |
Total current assets | 775,928 | 506,129 |
Long-term marketable securities | 20,631 | |
Property and equipment, net | 168,139 | 162,656 |
Intangibles, net | 135,188 | 162,832 |
Goodwill | 286,767 | 287,518 |
Deferred tax assets | 32,841 | 25,772 |
Other assets | 14,607 | 16,345 |
Total assets | 1,413,470 | 1,181,883 |
Liabilities and Stockholders' Equity | ||
Accounts payable | 73,811 | 71,619 |
Accrued salaries and benefits | 40,190 | 21,239 |
Software license agreement | 14,990 | 20,308 |
Other accrued liabilities | 15,084 | 14,958 |
Total current liabilities | 144,075 | 128,124 |
Debt | 60,000 | 160,439 |
Software license agreements | 3,146 | 8,136 |
Other long-term liabilities | 54,557 | 25,701 |
Total long-term liabilities | 117,703 | 194,276 |
Stockholders' equity: | ||
Preferred stock, 5.0 million shares authorized but unissued | ||
Common stock, $0.001 par value, 280,000 shares authorized, 64,295 shares and 62,630 shares issued and outstanding at March 25, 2017 and March 26, 2016, respectively | 64 | 63 |
Additional paid-in capital | 1,259,215 | 1,203,433 |
Accumulated deficit | (107,014) | (344,345) |
Accumulated other comprehensive loss | (573) | 332 |
Total stockholders' equity | 1,151,692 | 859,483 |
Total liabilities and stockholders' equity | $ 1,413,470 | $ 1,181,883 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 25, 2017 | Mar. 26, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Preferred Stock, shares authorized but unissued | 5,000,000 | 5,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 280,000,000 | 280,000,000 |
Common stock, shares issued | 64,295,000 | 62,630,000 |
Common stock, shares outstanding | 64,295,000 | 62,630,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Consolidated Statements of Income [Abstract] | |||
Net sales | $ 1,538,940 | $ 1,169,251 | $ 916,568 |
Cost of sales | 781,125 | 614,411 | 490,820 |
Gross profit | 757,815 | 554,840 | 425,748 |
Operating expenses: | |||
Research and development | 303,658 | 269,217 | 197,878 |
Selling, general and administrative | 127,265 | 117,082 | 99,509 |
Acquisition related costs | 18,137 | ||
Restructuring and other, net | 1,455 | ||
Asset impairment | 9,842 | ||
Patent agreement and other | (11,670) | ||
Total operating expenses | 440,765 | 374,629 | 316,979 |
Income from operations | 317,050 | 180,211 | 108,769 |
Interest income | 1,676 | 877 | 579 |
Interest expense | (3,600) | (3,308) | (5,627) |
Other expense | (79) | (1,791) | (12,172) |
Income before income taxes | 315,047 | 175,989 | 91,549 |
Provision for income taxes | 53,838 | 52,359 | 36,371 |
Net income | $ 261,209 | $ 123,630 | $ 55,178 |
Basic earnings per share | $ 4.12 | $ 1.96 | $ 0.88 |
Diluted earnings per share | $ 3.92 | $ 1.87 | $ 0.85 |
Basic weighted average common shares outstanding | 63,329 | 63,197 | 62,503 |
Diluted weighted average common shares outstanding | 66,561 | 65,993 | 65,235 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 261,209 | $ 123,630 | $ 55,178 |
Foreign currency translation (gain) loss | (826) | 294 | |
Unrealized (gain) loss on marketable securities | 47 | (24) | 107 |
Actuarial (gain) loss on pension plan | (79) | 2,660 | (1,625) |
Reclassification of actuarial (gain) loss to net income | (89) | 49 | |
Benefit (provision) for income taxes | 42 | (537) | 294 |
Comprehensive income | $ 260,304 | $ 126,072 | $ 53,954 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 261,209 | $ 123,630 | $ 55,178 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 63,433 | 58,060 | 34,855 |
Stock compensation expense | 39,593 | 33,506 | 37,549 |
Deferred income taxes | 10,885 | 23,202 | 32,238 |
Loss on retirement or write-off of long-lived assets | 10,387 | 2,753 | 1,618 |
Actuarial loss amortization on defined benefit pension plan | 116 | 729 | 292 |
Excess tax benefit from employee stock awards | (3,850) | (37,692) | |
Other non-cash charges | 8,980 | 19,702 | 22,167 |
Net change in operating assets and liabilities: | |||
Accounts receivable, net | (31,442) | 24,156 | (37,344) |
Inventories | (25,880) | (57,819) | 16,077 |
Other assets | 575 | (1,522) | 285 |
Accounts payable | 1,772 | (41,456) | 36,504 |
Accrued salaries and benefits | 18,951 | (2,993) | 7,047 |
Deferred income | (6,105) | (77) | |
Income taxes payable | 10,969 | (11,807) | (639) |
Other accrued liabilities | 203 | (11,140) | (4,581) |
Net cash provided by operating activities | 369,751 | 149,046 | 163,477 |
Cash flows from investing activities: | |||
Maturities and sales of available for sale marketable securities | 212,863 | 125,660 | 301,847 |
Purchases of available for sale marketable securities | (231,432) | (22,570) | (133,436) |
Purchases of property, equipment and software | (41,849) | (41,569) | (32,311) |
Investments in technology | (9,447) | (4,519) | (4,387) |
Loss on foreign exchange hedging activities | (11,976) | ||
Acquisition of businesses, net of cash obtained | (36,759) | ||
Net cash (used in) provided by investing activities | (69,865) | 20,243 | (324,401) |
Cash flows from financing activities: | |||
Proceeds from long-term revolver | 226,439 | ||
Principal payments on long-term revolver | (100,439) | (20,000) | (46,000) |
Debt issuance costs | (2,152) | (2,825) | |
Payments on capital lease agreements | (699) | ||
Issuance of common stock, net of shares withheld for taxes | 16,518 | 6,617 | 5,327 |
Repurchase of stock to satisfy employee tax withholding obligations | (14,089) | (6,861) | (4,624) |
Repurchase and retirement of common stock | (15,439) | (60,503) | (10,534) |
Excess tax benefit from employee stock awards | 3,850 | 37,692 | |
Contingent consideration payments | (1,213) | ||
Net cash (used in) provided by financing activities | (117,513) | (76,897) | 205,475 |
Net increase in cash and cash equivalents | 182,373 | 92,392 | 44,551 |
Cash and cash equivalents at beginning of period | 168,793 | 76,401 | 31,850 |
Cash and cash equivalents at end of period | 351,166 | 168,793 | 76,401 |
Cash payments during the year for: | |||
Income taxes | 8,001 | 23,785 | 4,973 |
Interest expense | $ 2,947 | $ 3,318 | 2,391 |
Wolfson [Member] | |||
Cash flows from investing activities: | |||
Acquisition of businesses, net of cash obtained | $ (444,138) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income / (Loss) [Member] | Total |
Balance at Mar. 29, 2014 | $ 62 | $ 1,078,816 | $ (440,634) | $ (886) | $ 637,358 |
Balance, shares at Mar. 29, 2014 | 61,956 | ||||
Net income | 55,178 | 55,178 | |||
Change in unrealized gain (loss) on marketable securities, net of tax | 69 | 69 | |||
Change in pension liability, net of tax | (1,293) | (1,293) | |||
Change in foreign currency translation adjustments | (29) | (29) | |||
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, value | $ 2 | 5,326 | (4,624) | 704 | |
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, shares | 1,709 | ||||
Repurchase and retirement of common stock, value | $ (1) | (10,533) | (10,534) | ||
Repurchase and retirement of common stock, shares | (580) | ||||
Amortization of deferred stock compensation | 37,626 | 37,626 | |||
Excess tax benefit from employee stock awards | 37,692 | 37,692 | |||
Balance at Mar. 28, 2015 | $ 63 | 1,159,431 | (400,613) | (2,110) | 756,771 |
Balance, shares at Mar. 28, 2015 | 63,085 | ||||
Net income | 123,630 | 123,630 | |||
Change in unrealized gain (loss) on marketable securities, net of tax | (15) | (15) | |||
Change in pension liability, net of tax | 2,163 | 2,163 | |||
Change in foreign currency translation adjustments | 294 | 294 | |||
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, value | $ 2 | 6,617 | (6,861) | (242) | |
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, shares | 1,552 | ||||
Repurchase and retirement of common stock, value | $ (2) | (60,501) | (60,503) | ||
Repurchase and retirement of common stock, shares | (2,007) | ||||
Amortization of deferred stock compensation | 33,535 | 33,535 | |||
Excess tax benefit from employee stock awards | 3,850 | 3,850 | |||
Balance at Mar. 26, 2016 | $ 63 | 1,203,433 | (344,345) | 332 | 859,483 |
Balance, shares at Mar. 26, 2016 | 62,630 | ||||
Net income | 261,209 | 261,209 | |||
Change in unrealized gain (loss) on marketable securities, net of tax | 31 | 31 | |||
Change in pension liability, net of tax | (110) | (110) | |||
Change in foreign currency translation adjustments | (826) | (826) | |||
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, value | $ 2 | 16,516 | (14,089) | 2,429 | |
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, shares | 2,145 | ||||
Repurchase and retirement of common stock, value | $ (1) | (15,438) | $ (15,439) | ||
Repurchase and retirement of common stock, shares | (480) | (500) | |||
Amortization of deferred stock compensation | 39,593 | $ 39,593 | |||
Excess tax benefit from employee stock awards | (327) | (327) | |||
Balance at Mar. 25, 2017 | $ 64 | $ 1,259,215 | (107,014) | $ (573) | 1,151,692 |
Balance, shares at Mar. 25, 2017 | 64,295 | ||||
Cumulative effect of adoption of ASU 2016-09 | $ 5,649 | $ 5,649 |
Description of Business
Description of Business | 12 Months Ended |
Mar. 25, 2017 | |
Description of Business [Abstract] | |
Description of Business | 1. Description of Business Description of Business Cirrus Logic, Inc. (“Cirrus Logic,” “We,” “Us,” “Our,” or the “Company”) is a leader in high performance, low-power integrated circuits (“ICs”) for audio and voice signal processing applications. Cirrus Logic’s products span the entire audio signal chain, from capture to playback, providing innovative products for the world’s top smartphones, tablets, digital headsets, wearables and emerging smart home applications. We were incorporated in California in 1984, became a public company in 1989, and were reincorporated in the State of Delaware in February 1999. Our primary facility housing engineering, sales and marketing, and administration functions is located in Austin, Texas. We also have offices in various other locations in the United States, United Kingdom, Sweden, Spain, Australia and Asia, including the People’s Republic of China, Hong Kong, South Korea, Japan, Singapore, and Taiwan. Our common stock, which has been publicly traded since 1989, is listed on the NASDAQ Global Select Market under the symbol CRUS. Basis of Presentation We prepare financial statements on a 52- or 53-week year that ends on the last Saturday in March. Fiscal years 2017, 2016, and 2015 were 52-week years. The next 53-week year will be fiscal year 2018. Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U. S. generally accepted accounting principles (U.S. GAAP) and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Reclassifications Certain reclassifications have been made to prior year balances in order to conform to the current year’s presentation of financial information. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires the use of management estimates. These estimates are subjective in nature and involve judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at fiscal year-end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 25, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents consist primarily of money market funds, commercial paper, and U.S. Government Treasury and Agency instruments with original maturities of three months or less at the date of purchase. Inventories We use the lower of cost or net realizable value to value our inventories, following the adoption of ASU 2015-11, with cost being determined on a first-in, first-out basis. One of the factors we consistently evaluate in the application of this method is the extent to which products are accepted into the marketplace. By policy, we evaluate market acceptance based on known business factors and conditions by comparing forecasted customer unit demand for our products over a specific future period, or demand horizon, to quantities on hand at the end of each accounting period. On a quarterly and annual basis, we analyze inventories on a part-by-part basis. Product life cycles and the competitive nature of the industry are factors considered in the evaluation of customer unit demand at the end of each quarterly accounting period. Inventory quantities on-hand in excess of forecasted demand is considered to have reduced market value and, therefore, the cost basis is adjusted to the lower of cost or net realizable value . Typically, market values for excess or obsolete inventories are considered to be zero. Inventory charges recorded for excess and obsolete inventory, including scrapped inventory, represented $6.7 million and $4.8 million, in fiscal year 2017 and 2016, respectively . Inventory charges in fiscal year 2017 and 2016 related to a combination of quality issues and inventory exceeding demand. Inventories were comprised of the following (in thousands): March 25, March 26, 2017 2016 Work in process $ 83,332 $ 67,827 Finished goods 84,563 74,188 $ 167,895 $ 142,015 Property, Plant and Equipment, net Property, plant and equipment is recorded at cost, net of depreciation and amortization. Depreciation and amortization is calculated on a straight-line basis over estimated economic lives, ranging from three to 39 years. Leasehold improvements are depreciated over the shorter of the term of the lease or the estimated useful life. Furniture, fixtures, machinery, and equipment are all depreciated over a useful life of three to 10 years, while buildings are depreciated over a period of up to 39 years. In general, our capitalized software is amortized over a useful life of three years, with capitalized enterprise resource planning software being amortized over a useful life of 10 years. Gains or losses related to retirements or dispositions of fixed assets are recognized in the period incurred. Additionally, if impairment indicators exist, the Company will assess the carrying value of the associated asset. In the fourth quarter of fiscal year 2017, the Company reassessed the carrying value of the property located in Edinburgh, Scotland, resulting in an asset impairment charge of $9.8 million. Property, plant and equipment was comprised of the following (in thousands): March 25, March 26, 2017 2016 Land $ 26,379 $ 26,379 Buildings 74,266 73,513 Furniture and fixtures 14,231 13,226 Leasehold improvements 4,355 2,637 Machinery and equipment 123,054 105,880 Capitalized software 24,839 25,127 Construction in progress 22,972 5,411 Total property, plant and equipment 290,096 252,173 Less: Accumulated depreciation and amortization (121,957) (89,517) Property, plant and equipment, net $ 168,139 $ 162,656 Depreciation and amortization expense on property, plant, and equipment for fiscal years 2017, 2016, and 2015 was $26.1 million, $22.3 million, and $15.4 million, respectively. Goodwill and Intangibles, net Intangible assets include purchased technology licenses and patents that are reported at cost and are amortized on a straight-line basis over their useful lives, generally ranging from one to ten years. Acquired intangibles include existing technology, core technology or patents, license agreements, in-process research & development, trademarks, tradenames, customer relationships, non-compete agreements, and backlog. These assets are amortized on a straight-line basis over lives ranging from one to fifteen years. Goodwill is recorded at the time of an acquisition and is calculated as the difference between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. The Company tests goodwill and indefinite lived intangibles for impairment on an annual basis or more frequently if the Company believes indicators of impairment exist. Impairment evaluations involve management’s assessment of qualitative factors to determine whether it is more likely than not that goodwill and other intangible assets are impaired. If management concludes from its assessment of qualitative factors that it is more likely than not that impairment exists, then a quantitative impairment test will be performed involving management estimates of asset useful lives and future cash flows. Significant management judgment is required in the forecasts of future operating results that are used in these evaluations. If our actual results, or the plans and estimates used in future impairment analyses, are lower than the original estimates used to assess the recoverability of these assets, we could incur additional impairment charges in a future period. The Company has recorded no goodwill impairments in fiscal years 2017, 2016, and 2015. There were no material intangible asset impairments in fiscal years 2017, 2016, or 2015. Long-Lived Assets We test for impairment losses on long-lived assets and definite-lived intangibles used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. We measure any impairment loss by comparing the fair value of the asset to its carrying amount. We estimate fair value based on discounted future cash flows, quoted market prices, or independent appraisals. Foreign Currency Translation Prior to the fiscal year 2015 acquisition of Wolfson Microelectronics (“ Wolfson, ” the “ Acquisition ”), each Cirrus Logic legal entity was US dollar functional. Additionally, each of the acquired Wolfson legal entities were also designated as US dollar functional. These designations were determined individually by Cirrus Logic and Wolfson prior to the Acquisition. Subsequent to the integration of Wolfson, the Company reassessed the functional currencies of each legal entity based on the relevant facts and circumstances, as well as in accordance with the applicable accounting guidance contained in Accounting Standards Codification (“ASC”) 830-10, “Foreign Currency Matters.” Based on its analysis and on the change in operating structure brought about by the Acquisition, the Company determined that the functional currency of some of its subsidiaries had changed from the US dollar to the local currency. The Company’s main entities, including the entities that generate the majority of sales and employ the majority of employees, remain US dollar functional. The change was effective beginning in fiscal year 2016 and had an immaterial effect on the financial statements. Beginning in fiscal year 2016 foreign currency translation gains and losses are reported as a component of Accumulated Other Comprehensive Gain / (Loss). Pension Defined benefit pension plans are accounted for based upon the provisions of ASC Topic 715, “ Compensation – Retirement Benefits. ” The funded status of the plan is recognized in the C onsolidated B alance S heet. Subsequent re-measurement of plan assets and benefit obligations, if deemed necessary, would be refle cted in the C onsolidated B alance S heet in the subsequent interim period to reflect the overfunded or underfunded status of the plan. The Company engage s external actuaries on at least an annual basis to provide a valuation of the plan’s assets and projected benefit obligation and to record the net periodic pension cost. On a quarterly basis, the Company will evaluate current information available to us to determine whether the plan’s assets and projected benefit obligation should be re-measured. Concentration of Credit Risk Financial instruments that potentially subject us to material concentrations of credit risk consist primarily of cash equivalents, marketable securities, long-term marketable securities, and trade accounts receivable. We are exposed to credit risk to the extent of the amounts recorded on the balance sheet. By policy, our cash equivalents, marketable securities, and long-term marketable securities are subject to certain nationally recognized credit standards, issuer concentrations, sovereign risk, and marketability or liquidity considerations. In evaluating our trade receivables, we perform credit evaluations of our major customers’ financial condition and monitor closely all of our receivables to limit our financial exposure by limiting the length of time and amount of credit extended. In certain situations, we may require payment in advance or utilize letters of credit to reduce credit risk. By policy, we establish a reserve for trade accounts receivable based on the type of business in which a customer is engaged, the length of time a trade account receivable is outstanding, and other knowledge that we may possess relating to the probability that a trade receivable is at risk for non-payment. We had three contract manufacturers, Hongfujin Precision, Protek, and Jabil Circuits who represented 20 percent, 15 percent, and 13 percent, respectively of our consolidated gross trade accounts receivable as of the end of fiscal year 2017. Hongfujin Precision and Protek represented 23 percent and 11 percent, respectively, and Samsung Electronics, a direct customer, represented 23 percent of our consolidated gross trade accounts receivable as of the end of fiscal year 2016. No other distributor or customer had receivable balances that represented more than 10 percent of consolidated gross trade accounts receivable as of the end of fiscal year 2017 and 2016. Since the components we produce are largely proprietary and generally not available from second sources, we consider our end customer to be the entity specifying the use of our component in their design. These end customers may then purchase our products directly from us, from a distributor, or through a third party manufacturer contracted to produce their end product. For fiscal years 2017, 2016, and 2015, our ten largest end customers represented approximately 92 percent, 89 percent, and 87 percent, of our sales, respectively. For fiscal years 2017, 2016, and 2015 , w e had one end customer, Apple Inc., who purchased through multiple contract manufacturers and represented approximately 79 percent, 66 percent, and 72 percent, of the Company’s total sales, respectively. Samsung Electronics represented 15 percent of the Company’s total sales in fiscal year 2016. No other customer or distributor represented more than 10 percent of net sales in fiscal years 2017, 2016, or 2015. Revenue Recognition We recognize revenue when all of the following criteria are met: persuasive evidence that an arrangement exists, delivery of goods has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Prior to the fourth quarter of fiscal year 2016, we had a number of arrangements with distributors whereby we deferred revenue at the time of shipment of our products to those distributors. As part of those arrangements, when a distributor resold those products to an end customer, the Company would credit the distributor the difference between (1) the original distributor price and the distributor’s agreed upon margin and (2) the final sales price to the end customer (known as the “Ship and Debit Arrangement”). For those transactions, revenue was deferred until the product was resold by the distributor and we determined that the final sales price to the distributor was fixed or determinable. For certain of our smaller distributors, we did not have similar Ship and Debit Arrangements and the distributors were billed at a fixed upfront price. For those transactions, revenue was recognized upon delivery to the distributor based upon the distributor’s individual shipping terms, less an allowance for estimated returns, as the Company determined that the revenue recognition criteria were met. In light of the fact that the distributor program had been declining as a portion of the overall business for several years, in fiscal year 2016 the Company performed a review of all distributor arrangements in an effort to streamline our distribution program and reduce overhead costs. Based upon this review, the Company terminated its Ship and Debit Arrangements with Distributors during the fourth quarter of fiscal year 2016. Subsequent to the termination of the Ship and Debit Arrangements, the Company began recognizing revenue for all distributors upon delivery to the distributor based upon the distributor’s individual shipping terms, less an allowance for estimated returns, as the Company’s final sales price to the distributor was fixed and determinable and the Company determined that all four criteria for revenue recognition were met. Although the Company terminated its Ship and Debit Arrangements with all distributors along with certain ancillary agreements related to the Ship and Debit Arrangements, the Company continues to grant varying levels of stock rotation and price protection rights based on individual distributor agreements. To the extent these rights are implicated in any transaction with a distributor, we continue to evaluate their effect on when the revenue recognition criteria have been met. Warranty Expense We warrant our products and maintain a provision for warranty repair or replacement of shipped products. The accrual represents management’s estimate of probable returns. Our estimate is based on an analysis of our overall sales volume and historical claims experience. The estimate is re-evaluated periodically for accuracy. Shipping Costs Our shipping and handling costs are included in cost of sales for all periods presented in the Consolidated Statements of Income. Advertising Costs Advertising costs are expensed as incurred. Advertising costs were $1.7 million, $1.6 million, and $1.1 million, in fiscal years 2017, 2016, and 2015, respectively. Stock-Based Compensation Stock-based compensation is measured at the grant date based on the grant-date fair value of the awards and is recognized as an expense, on a ratable basis, over the vesting period, which is generally between zero and four years. Determining the amount of stock-based compensation to be recorded requires the Company to develop estimates used in calculating the grant-date fair value of stock options and performance awards (also called market stock units). The Company calculates the grant-date fair value for stock options and market stock units using the Black-Scholes valuation model and the Monte Carlo simulation, respectively. The use of valuation models requires the Company to make estimates of assumptions such as expected volatility, expected term, risk-free interest rate, expected dividend yield, correlation of the Company’s stock price with the Philadelphia Semiconductor Index (“ the Index ”) and forfeiture rates. The grant-date fair value of restricted stock units is the market value at grant date multiplied by the number of units. Income Taxes We are required to calculate income taxes in each of the jurisdictions in which we operate. This process involves calculating the actual current tax liability as well as assessing temporary differences in the recognition of income or loss for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in our Consolidated Balance Sheet. We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company evaluates the ability to realize its deferred tax assets based on all the facts and circumstances, including projections of future taxable income and expiration dates of carryover tax attributes. The calculation of our tax liabilities involves assessing uncertainties with respect to the application of complex tax rules and the potential for future adjustment of our uncertain tax positions by the Internal Revenue Service or other taxing jurisdiction. We recognize liabilities for uncertain tax positions based on the required two-step process. The first step requires us to determine if the weight of available evidence indicates that the tax position has met the threshold for recognition; therefore, we must evaluate whether it is more likely than not that the position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step requires us to measure the tax benefit of the tax position taken, or expected to be taken, in an income tax return as the largest amount that is more than 50 percent likely of being realized upon ultimate settlement. We reevaluate the uncertain tax positions each quarter based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, expirations of statutes of limitation, effectively settled issues under audit, and new audit activity. A change in the recognition step or measurement step would result in the recognition of a tax benefit or an additional charge to the tax provision in the period. Although we believe the measurement of our liabilities for uncertain tax positions is reasonable, we cannot assure that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals. If additional taxes are assessed as a result of an audit or litigation, it could have a material effect on our income tax provision and net income in the period or periods for which that determination is made. We operate within multiple taxing jurisdictions and are subject to audit in these jurisdictions. These audits can involve complex issues which may require an extended period of time to resolve and could result in additional assessments of income tax. We believe adequate provisions for income taxes have been made for all periods. Net Income Per Share Basic net income per share is based on the weighted effect of common shares issued and outstanding and is calculated by dividing net income by the basic weighted average shares outstanding during the period. Diluted net income per share is calculated by dividing net income 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 and restricted stock grants. The following table details the calculation of basic and diluted earnings per share for fiscal years 2017, 2016, and 2015 , (in thousands, except per share amounts): Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 Numerator: Net income $ 261,209 $ 123,630 $ 55,178 Denominator: Weighted average shares outstanding 63,329 63,197 62,503 Effect of dilutive securities 3,232 2,796 2,732 Weighted average diluted shares 66,561 65,993 65,235 Basic earnings per share $ 4.12 $ 1.96 $ 0.88 Diluted earnings per share $ 3.92 $ 1.87 $ 0.85 The weighted outstanding options excluded from our diluted calculation for the years ended March 25, 2017, March 26, 2016, and March 28, 2015 were 389 thousand, 468 thousand, and 718 thousand , respectively, as the exercise price exceeded the average market price during the period. Accumulated Other Comprehensive Income (Loss) Our accumulated other comprehensive income (loss) is comprised of foreign currency translation adjustments, unrealized gains and losses on investments classified as available-for-sale and actuarial gains and losses on our pension plan assets. See Note 1 4 – Accumulated Other Comprehensive Income (Loss) for additional discussion. 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 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 is currently in the process of reviewing our customers’ contracts in respect of performance obligation identification and satisfaction, pricing, warranties, and return rights, among other considerations. Through this process, t he Company currently expects no material modifications to its financial statements upon adoption of this ASU. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The amendments in this ASU provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company adopted this ASU in the fourth quarter of fiscal year 2017 with n o material modifications to the Company’s financial statements as a result. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The amendments in this update require that debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability and that the amortization of debt issuance costs is reported as interest expense. ASU 2015-03 is to be applied retrospectively and represents a change in accounting principle. In August 2015, the FASB issued FASB ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . ASU 2015-15 clarified the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. Debt issuance costs related to a line-of-credit arrangement may be presented in the balance sheet as an asset and subsequently amortized ratably over the term of the arrangement regardless of whether there are any outstanding borrowings. Both ASU 2015-03 and ASU 2015-15 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Earlier adoption is permitted for financial statements that have not been previously issued. The Company adopted these ASUs in fiscal year 2017 with no material impact to its financial statements. In April 2015, the FASB issued ASU No. 2015-04, Compensation – Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets. The ASU is part of the FASB’s “Simplification Initiative” to reduce complexity in accounting standards. The FASB decided to permit entities to measure defined benefit plan assets and obligations as of the month-end that is closest to their fiscal year-end. An entity is required to disclose the accounting policy election and the date used to measure defined benefit plan assets and obligations in accordance with the amendments in this update. The amendments in this update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with earlier application permitted. The Company adopted this ASU in the first quarter of fiscal year 2017, with no material impact to its financial statements. In July 2015, ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory was issued. This ASU requires companies to subsequently measure inventory at the lower of cost and net realizable value versus the previous lower of cost or market. The amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, to be applied prospectively. Early application is permitted. The Company early adopted this ASU in fiscal year 2017 with no material modifications to its financial statements as a result. 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 Company is currently evaluating the impact of this ASU. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This ASU requires all excess tax benefits and deficiencies to be recognized as income tax benefit / expense in the income statement and presented as an operating activity in the statement of cash flows. Forfeitures can be calculated based on either the estimated number of awards that are expected to vest, as required by current guidance, or when forfeitures actually occur. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted, but all amendments must be adopted in the same period and any adjustments should be reflected as of the beginning of the fiscal year if adopted in an interim period. The Company early adopted in the third quarter of fiscal year 2017, which resulted in the following: · We recorded excess tax benefits within income tax expense, rather than in additional paid-in capital (“APIC”), of $2.2 million, $8.0 million, $10.8 million and $1.9 million for the first, second, third and fourth quarters of fiscal year 2017, respectively. · We recorded a cumulative-effect adjustment as of March 27, 2016 to increase retained earnings by $5.6 million, with a corresponding increase to deferred tax assets, to recognize net operating loss and tax credit carryforwards attributable to excess tax benefits on stock-based compensation that had not been previously recognized. · We now include the excess tax benefits in net operating cash rather than net financing cash in our Consolidated Statements of Cash Flows. We applied this change in presentation prospectively and thus prior years have not been adjusted. We elected not to change our policy on accounting for forfeitures and continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The adoption of this new guidance impacted our previously reported quarterly results for fiscal year 2017 as follows: Three Months Ended Six Months Ended June 25, 2016 September 24, 2016 September 24, 2016 As reported As adjusted As reported As adjusted As reported As adjusted (in thousands, except per share data) Consolidated Condensed Statements of Income: Income tax expense $ 5,805 $ 3,598 $ 24,608 $ 16,634 $ 30,413 $ 20,232 Net income $ 15,864 $ 18,071 $ 78,065 $ 86,039 $ 93,929 $ 104,110 Basic net income per share $ 0.25 $ 0.29 $ 1.24 $ 1.37 $ 1.50 $ 1.66 Diluted net income per share $ 0.24 $ 0.27 $ 1.19 $ 1.30 $ 1.43 $ 1.58 Weighted average shares used in diluted net income per share computation 65,232 65,723 65,717 66,410 65,521 66,101 Consolidated Condensed Statements of Cash Flows: Net cash provided by operating activities $ 12,226 $ 12,756 $ 19,990 $ 24,091 $ 32,216 $ 36,847 Net cash used in financing activities $ (13,140) $ (13,670) $ (13,859) $ (17,960) $ (26,999) $ (31,630) 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 August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This ASU covers several cash flow issues, including the presentation of contingent consideration payments made after a business combination. Cash payments up to the amount of the liability recognized at the acquisition date (including measurement-period adjustments) should be classified as financing activities. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted, including in an interim period, with a required retrospective transition method applied to each period presented. The Company early adopted in the fourth quarter of fiscal year 2017. See Statement of Cash Flows for presentation of contingent consideration payment. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This ASU relates to income tax consequences of non-inventory intercompany asset transfers. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted, as of the beginning of an annual reporting period. The guidance requires companies to apply a modified retrospective approach with a cumulative catch-up adjustment to beginning retained earnings in the period of adoption. The Company is currently evaluating the impact of this ASU. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The update states that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business, and should be treated as an asset acquisition instead. This ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted under specific circumstances, including in an interim period, with prospective application on or after the effective date |
Marketable Securities
Marketable Securities | 12 Months Ended |
Mar. 25, 2017 | |
Marketable Securities [Abstract] | |
Marketable Securities | 3. Marketable Securities The Company’s investments have been classified as available-for-sale securities in accordance with U.S. GAAP. Marketable securities are categorized on the C onsolidated B alance S heet as “ M arketable securities ” within the short-term or long-term classification , as appropriate. The following table is a summary of available-for-sale securities (in thousands): Estimated Gross Gross Fair Value Amortized Unrealized Unrealized (Net Carrying As of March 25, 2017 Cost Gains Losses Amount) Corporate debt securities $ 33,350 $ - $ (20) $ 33,330 Commercial paper 66,518 - (35) 66,483 Total securities $ 99,868 $ - $ (55) $ 99,813 The Company’s specifically identified gross unrealized losses of $ 55 thousand relates to 18 different securities with a total amortized cost of approximately $ 99.9 million at March 25, 2017. Four securities had been in a continuous unrealized loss position for more than 12 months as of March 25, 2017. The gross unrealized loss on these securities was less than one tenth of one percent of the position value. Because the Company does not intend to sell the investments at a loss and it is not more likely than not that the Company will be required to sell the investments before recovery of its amortized cost basis, the Company did not consider the investment in these securities to be other-than-temporarily impaired at March 25, 2017. Estimated Gross Gross Fair Value Amortized Unrealized Unrealized (Net Carrying As of March 26, 2016 Cost Gains Losses Amount) Corporate debt securities $ 81,310 $ 3 $ (100) $ 81,213 The Company’s specifically identified gross unrealized losses of $ 100 thousand relates to 21 different securities with a total amortized cost of approximately $ 64.7 millio n at March 26 , 201 6 . Two securities had been in a continuous unrealized loss position for more than 12 months as of March 26, 2016, both of which matured in fiscal year 2017. Because the Company did not intend to sell the investments at a loss and it was not more likely than not that the Company would be required to sell the investments before recovery of its amortized cost basis, the Company did not consider the investment to be other-than-temporarily impaired at March 26 , 201 6 . The cost and estimated fair value of available-for-sale investments by contractual maturity were as follows: March 25, 2017 March 26, 2016 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Within 1 year $ 99,868 $ 99,813 $ 60,603 $ 60,582 After 1 year - - 20,707 20,631 Total $ 99,868 $ 99,813 $ 81,310 $ 81,213 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Mar. 25, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 4. 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, pension plan assets/liabilities and contingent consideration. 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 or liabilities (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 corporate debt securities, money market funds, U.S. Treasury securities, and commercial paper and are reflected on our Consolidated Balance Sheet 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 portfolio managers 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. In connection with one of the Company’s second quarter fiscal year 2016 acquisitions, the Company reports contingent consideration based upon achievement of certain milestones. This liability is classified as Level 3 and is valued using a discounted cash flow model. The assumptions used in preparing the discounted cash flow include discount rate estimates and cash flow amounts. The Company’s long-term revolving facility, described in Note 7, bears interest at a base rate plus applicable margin or LIBOR plus applicable margin. As of March 25, 2017, the fair value of the Company’s long-term revolving facility approximates carrying value based on estimated margin. As of March 25, 2017 and March 26, 2016, the Company classified all investment portfolio assets and pension plan assets (discussed in Note 9) as Level 1 or Level 2 assets and liabilities. The only Level 3 liability is the contingent consideration described above and below. The Company has no Level 3 assets. There were no transfers between Level 1, Level 2, or Level 3 measurements for the years ending March 25, 2017 and March 26, 2016. The following summarizes the fair value of our financial instruments, exclusive of pension plan assets detailed in Note 9, at March 25, 2017 (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market funds $ 313,982 $ - $ - $ 313,982 Available-for-sale securities Corporate debt securities $ - $ 33,330 $ - $ 33,330 Commercial paper - 66,483 - 66,483 $ - $ 99,813 $ - $ 99,813 Liabilities: Other accrued liabilities Contingent consideration - short-term $ - $ - $ 4,695 $ 4,695 The following summarizes the fair value of our financial instruments at March 26, 2016 (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 79,256 $ - $ - $ 79,256 Available-for-sale securities Corporate debt securities $ - $ 81,213 $ - $ 81,213 Liabilities: Other accrued liabilities Contingent consideration - short-term $ - $ - $ 4,709 $ 4,709 Other long-term liabilities Contingent consideration - long-term $ - $ - $ 4,359 $ 4,359 Contingent consideration The following summarizes the fair value of the contingent consideration at March 25 , 201 7 : Maximum Value if Milestones Achieved (in thousands) Estimated Discount Rate (%) Fair Value (in thousands) Tranche A - 18 month earn out period $ 5,000 7.0 $ - Tranche B - 30 month earn out period 5,000 7.7 4,695 $ 10,000 $ 4,695 Fiscal year ended March 25, 2017 (in thousands) Beginning balance $ 9,068 Adjustment to estimates (research and development expense) (3,579) Payout of Tranche A contingent consideration (1,213) Fair value charge recognized in earnings (research and development expense) 419 Ending balance $ 4,695 The valuation of contingent consideration is based on a weighted-average discounted cash flows model. The fair value is reviewed and estimated on a quarterly basis based on the probability of achieving defined milestones and current interest rates. Significant changes in any of the unobservable inputs used in the fair value measurement of contingent consideration could result in a significantly lower or higher fair value. A change in projected outcomes if milestones are achieved would be accompanied by a directionally similar change in fair value. A change in discount rate would be accompanied by a directionally opposite change in fair value. Changes to the fair value due to changes in assumptions would be reported in research and development expense in the Consolidated Statements of Income. In the second quarter of fiscal year 2017, changes in milestone estimates of Tranche A occurred following a review of product shipment forecasts within the earn out period. The revised estimates reduced the fair value of the liability prior to the pay out in the fourth quarter of fiscal year 2017. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Mar. 25, 2017 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable, Net | 5. Accounts Receivable, net The following are the components of accounts receivable, net (in thousands): March 25, March 26, 2017 2016 Gross accounts receivable $ 120,408 $ 89,007 Allowance for doubtful accounts (434) (475) Accounts receivable, net $ 119,974 $ 88,532 The following table summarizes the changes in the allowance for doubtful accounts (in thousands): Balance, March 29, 2014 $ (229) Bad debt expense, net of recoveries (127) Balance, March 28, 2015 (356) Bad debt expense, net of recoveries (119) Balance, March 26, 2016 (475) Bad debt expense, net of recoveries 41 Balance, March 25, 2017 $ (434) Recoveries on bad debt were immaterial for the three years presented above. |
Intangibles, Net and Goodwill
Intangibles, Net and Goodwill | 12 Months Ended |
Mar. 25, 2017 | |
Intangibles, Net And Goodwill [Abstract] | |
Intangibles, net and Goodwill | 6. Intangibles, net and Goodwill The intangibles, net balance included on the Consolidated Balance Sheet was $135.2 million and $162. 8 million at March 25, 2017 and March 26, 2016 , respectively. The following information details the gross carrying amount and accumulated amortization of our intangible assets (in thousands): March 25, 2017 March 26, 2016 Intangible Category / Weighted-Average Amortization period (in years) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Core technology (a) $ 1,390 $ (1,390) $ 1,390 $ (1,390) License agreement (a) 440 (440) 440 (440) Existing technology (6.1) 117,975 (53,960) 117,975 (32,873) In-process research & development ("IPR&D") (7.3) 72,750 (24,245) 72,750 (14,082) Trademarks and tradename (10.0) 3,037 (2,208) 3,037 (2,076) Customer relationships (10.0) 15,381 (4,191) 15,381 (2,655) Backlog (a) 220 (220) 220 (147) Non-compete agreements (a) 470 (470) 470 (209) Technology licenses (3.1) 24,540 (13,891) 16,661 (11,620) Total $ 236,203 $ (101,015) $ 228,324 $ (65,492) (a) Intangible assets are fully amortized. Amortization expense for intangibles in fiscal years 2017, 2016, and 2015 was $37.4 million, $35. 7 million , and $18.2 million, respectively. The following table details the estimated aggregate amortization expense for all intangibles owned as of March 25, 2017, for each of the five succeeding fiscal years and in the aggregate thereafter (in thousands): For the year ended March 31, 2018 $ 37,563 For the year ended March 30, 2019 $ 35,660 For the year ended March 28, 2020 $ 26,499 For the year ended March 27, 2021 $ 15,895 For the year ended March 26, 2022 $ 12,145 Thereafter $ 8,523 The goodwill balance included on the Consolidated Balance Sheet is $286.8 million and $287.5 million at March 25, 2017 and March 26, 2016, respectively. |
Revolving Line of Credit
Revolving Line of Credit | 12 Months Ended |
Mar. 25, 2017 | |
Line of Credit [Abstract] | |
Revolving Line of Credit | 7. Revolving Line of Credit On August 29, 2014, Cirrus Logic entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as Administrative Agent, and the Lenders party thereto. The Credit Agreement provided for a $250 million senior secured revolving credit facility (the “Credit Facility”). Borrowings under the Credit Facility were used for general corporate purposes. On July 12, 2016, Cirrus Logic entered into an amended and restated credit agreement (the “Amended Credit Agreement”) with Wells Fargo Bank, National Association, as Administrative Agent, and the Lenders party thereto, for the purpose of amending the Credit Agreement and providing ongoing working capital. The Amended Credit Agreement provides for a $300 million senior secured revolving credit facility (the “Amended Facility”). The Amended Facility matures on July 12, 2021. Cirrus Logic must repay the outstanding principal amount of all borrowings, together with all accrued but unpaid interest thereon, on the maturity date. The Amended Facility is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries (the “Subsidiary Guarantors”) and is secured by substantially all of the assets of Cirrus Logic and any Subsidiary Guarantors, except for certain excluded assets. Borrowings under the Amended Facility may, at Cirrus Logic’s 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 .5 0 % per annum for Base Rate Loans and 1. 2 5% 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 Amended Credit Agreement contains certain financial covenants providing that (a) the ratio of consolidated funded indebtedness to consolidated EBITDA for the prior four consecutive 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 Amended 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. At March 25, 2017, the Company was in compliance with all covenants under the Amended Credit Agreement. The Company had borrowed $60.0 million under the Amended Facility as of March 25, 2017, which is included in long-term liabilities on the Consolidated Balance Sheet under the caption “ Debt .” |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Mar. 25, 2017 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | 8. Restructuring and Other, net The fiscal year 2015 restructuring costs incurred relate to the Wolfson acquisition and consisted primarily of bank and legal fees, as well as certain expenses for stock compensation . The related charges are shown as a separate line item captioned “ Restructuring and other, net” in the Consolidated Statements of Income. As of March 25, 2017 and March 26, 2016, we have no remaining restructuring accrual on the Consolidated Balance Sheet. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Mar. 25, 2017 | |
Postretirement Benefit Plans [Abstract] | |
Employee Benefit Plans | 9 . Postretirement Benefit Plans Pension Plan As a result of the Acquisition in fiscal year 2015 , the Company now fully funds a defined benefit pension scheme (“the Scheme”) , formerly maintained by Wolfson, for some of the employees in the United Kingdom. The Scheme was closed to new participants as of July 2, 2002. As of April 30, 2011, the participants in the Scheme no longer accrue benefits and therefore the Company will not be required to pay contributions in respect of future accrual. The Scheme is a trustee-administered fund that is legally separate from Wolfson, which holds the pension plan assets to meet long-term pension liabilities. The pension fund trustees comprise one employee and one employer representative and an independent chairman. The trustees are required by law to act in the best interests of the Scheme’s beneficiaries and the trustees are responsible, in consultation with Wolfson and the Company, for setting certain policies (including the investment policies and strategies) of the fund. As of March 26, 2016, the Company was obligated to contribute approximately $0.5 million to the Scheme, which was recorded on the fiscal year 2016 C onsolidated B alance S heet in “ Accrued salaries and benefits ”. O n April 25, 2016, the Company paid the $0.5 million, which was previously accrued. No further obligations are accrued as of March 25, 2017. The Company initiated an Enhanced Transfer Value (ETV) offer to 49 Scheme participants in fiscal year 2017 . The ETV offer expired on December 23, 2016, and nine participants accepted. As a result, the Company paid the required ETV contribution of $0.5 million and recorded the associated pension expense of $0.4 million. The Company expects to completely close the Scheme over the next ten years. The following tables set forth the benefit obligation, the fair value of plan assets, and the funded status of the Scheme (in thousands): March 25, March 26, 2017 2016 Change in benefit obligation: Beginning balance $ 23,968 $ 27,091 Expenses - 15 Interest cost 759 821 Plan settlements (4,517) - Benefits paid and expenses (264) (1,095) Change in foreign currency exchange rate (2,763) (1,221) Actuarial (gain) / loss 3,940 (1,643) Total benefit obligation ending balance 21,123 23,968 Change in plan assets: Beginning balance 25,688 26,735 Actual return on plan assets 3,933 (155) Employer contributions 990 1,409 Plan settlements (5,243) - Change in foreign currency exchange rate (2,961) (1,206) Benefits paid and expenses (264) (1,095) Fair value of plan assets ending balance 22,143 25,688 Funded status of Scheme at end of year $ 1,020 $ 1,720 The assets and obligations of the Scheme are denominated in British Pound Sterling. Based on an actuarial study performed as of March 2 5 , 201 7 , the Scheme is overfunded and a long-term asset is reflected in the Company’s C onsolidated B alance S heet under the caption “ Other assets ”. The Company’s plan assets and obligations are measured as of the fiscal year-end. The weighted-average disc ount rate assumption used to determine benefit obligations as of March 25, 2017 March 26, 2016 and March 28, 2015 was 2.7% , 3.6% , and 3.2% , respectively . The components of the Company’s net periodic pension expense (income) are as follows (in thousands): Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 Expenses $ - $ 15 $ 16 Interest cost 759 821 544 Expected return on plan assets (1,126) (1,212) (792) Settlement (gain) loss 1,063 - - Amortization of actuarial (gain) loss (89) 49 - $ 607 $ (327) $ (232) The following weighted-average assumptions were used to determine net periodic benefit costs for the year ended March 25, 2017, March 2 6 , 201 6, and March 28, 2015 : 2017 2016 2015 Discount rate 3.60 % 3.20 % 4.00 % Expected long-term return on plan assets 4.93 % 4.65 % 5.36 % We report and measure the plan assets of our defined benefit pension at fair value. The Company’s pension plan assets consist of cash, equity securities, corporate debt securities, and diversified growth funds. The fair value of the pension plan assets is determined through an external actuarial valuation, following a similar process of obtaining inputs as described above. The table below sets forth the fair value of our plan assets as of March 2 5 , 201 7 , using the same three-level hierarchy of fair-value inputs described in Note 4 (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Level 1 Level 2 Level 3 Total Plan Assets: Cash $ 160 $ - $ - $ 160 Pension funds - 21,983 - 21,983 $ 160 $ 21,983 $ - $ 22,143 The table below sets forth the fair value of our plan assets as of March 26, 2016 , (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Level 1 Level 2 Level 3 Total Plan Assets: Cash $ 42 $ - $ - $ 42 Pension funds - 25,646 - 25,646 $ 42 $ 25,646 $ - $ 25,688 Amounts recognized in accumulated other comprehensive income (loss) for the period that have not yet been recognized as components of net periodic benefit cost consist of (in thousands): Fiscal Year 2017 Net actuarial loss $ (79) Accumulated other comprehensive income, before tax $ (79) The Company will amortize the actuarial gain over a period of twenty-five years based on actuarial assumptions, including life expectancy. The following table provides the estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal year 201 8 (in thousands): Fiscal Year 2018 Transition (asset) obligation $ - Prior service cost - Actuarial loss (gain) (37) The Company contributed $0.5 million to the pension plan in fiscal year 2017 as discussed above . The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for the following fiscal years (in thousands): Benefit Payments 2018 $ 266 2019 411 2020 481 2021 472 2022 415 Thereafter 2,765 The expected long-term return on plan assets is based on historical actual return experience and estimates of future long-term performance with consideration to the expected investment mix of the plan assets. It is the policy of the Trustees and the Company to review the investment strategy periodically. The Trustees’ investment objectives and the processes undertaken to measure and manage the risks inherent in the Scheme investment strategy are illustrated by the current asset allocation. The current mix of the assets is as follows: Actual Allocation 2017 2016 Equity securities 33 % 32 % Corporate bonds 48 47 Diversified growth 19 21 Cash - - Total 100 % 100 % See the related fair value of the assets above. The Scheme exposes the Company to actuarial risks such as investment (market) risk, interest rate risk, mortality risk, longevity risk and currency risk. A decrease in corporate bond yields, a rise in inflation or an increase in life expectancy would result in an increase to the Scheme liabilities and may give rise to increased benefit expenses in future periods. Caps on inflationary increases are currently in place to protect the Scheme against extreme inflation, however. The indicative impact on net periodic benefit cost based on defined sensitivities is as follows: Change Approximate impact on liabilities Decrease discount rate by 0.1%, per year 2% increase Increase inflation linked assumptions by 0.1%, per year 2% increase (of inflation-linked liabilities) Increase life expectancy by 1 year 2% increase 401(k) Plan s We have 401(k) Profit Sharing Plan s (the “401(k) Plan s ”) covering all of our qualifying employees. Under the 401(k) Plan s , employees may elect to contribute any percentage of their annual compensation up to the annual IRS limitations. T he Company matches 50 percent of the first 8 percent of the employees’ annual contribution . We made matching employee contributions of $5.5 million, $ 4.3 million, and $ 2.5 million during fiscal years 2017, 2016, and 2015, respectively . |
Equity Compensation
Equity Compensation | 12 Months Ended |
Mar. 25, 2017 | |
Equity Compensation [Abstract] | |
Equity Compensation | 1 0 . Equity Compensation T he Company is currently granting equity awards from the 2006 Stock Incentive Plan (the “Plan”), which was approved by stockholders in July 2006 . The Plan provides for granting of stock options, restricted stock awards, performance awards, phantom stock awards, and bonus stock awards, or any combination of the foregoing. To date, the Company has granted stock optio ns, restricted stock awards, phantom stock awards (also called restricted stock units), and performance awards (also called market stock units) under the Plan. Each stock option granted reduces the total shares available for grant under the Plan by one share. Each full value award granted (including restricted stock awards, restricted stock units and market stock units) reduces the total shares available for grant under the Plan by 1.5 shares. Stock options generally vest between zero and four years, and are exercisable for a period of ten years from the date of grant. Restricted stock units are generally subject to vesting from one to three years, depending upon the terms of the grant. Market stock units are subject to a vesting schedule of three years. T he following table summarizes the activity in total shares available for grant (in thousands): Shares Available for Grant Balance, March 29, 2014 3,547 Shares added 3,300 Granted (3,181) Forfeited 230 Balance, March 28, 2015 3,896 Shares added 4,900 Granted (2,676) Forfeited 167 Balance, March 26, 2016 6,287 Shares added - Granted (1,719) Forfeited 124 Balance, March 25, 2017 4,692 As of March 25, 2017, approximately 1 3 . 3 million shares of common stock were reserved for issuance under the Plan. Stock Compensation Expense T he following table summarizes the effects of stock-based compensation on cost of goods sold, research and development, sales, general and administrative, pre-tax income, and net income after taxes for shares granted under the P lan (in thousands, except per share amounts): Fiscal Year 2017 2016 2015 Cost of sales $ 1,071 $ 1,145 $ 747 Research and development 21,186 17,173 11,222 Sales, general and administrative 17,336 15,188 25,580 Effect on pre-tax income 39,593 33,506 37,549 Income Tax Benefit (12,482) (10,306) (11,467) Total share-based compensation expense (net of taxes) 27,111 23,200 26,082 Share-based compensation effects on basic earnings per share $ 0.43 $ 0.37 $ 0.42 Share-based compensation effects on diluted earnings per share 0.41 0.35 0.40 T he total share based compensation expense included in the table above and which is attribut able to restricted stock awards, restricted stock units and market stock units was $ 35 . 5 million , $30.3 million, $ 34.0 million, for fiscal years 2017, 2016, and 2015, respectively. Share based compensation expense recognized is presented within operating activities in the Consolidated Statement of Cash Flows. As of March 25 , 201 7 , there was $ 75 . 2 million of compensation costs related to non-vested stock options, re stricted stock units , and market stock units granted under the Company’s equity incentive plans not yet recognized in the Company’s financial statements. The unrecognized compensation cost is expected to be recognized over a weighted average period of 1. 2 9 years for stock options, 1. 45 years for restricted stock units, and 1 . 7 0 years for market stock units. In addition to the income tax benefit of share-based compensation expense shown in the table above, the Company recognized excess tax benefits of $22.9 million in fiscal year 2017 as a result of the Company’s early adoption of ASU 2016-09, discussed in Note 2. No excess tax benefits were recognized within income tax expense in fiscal years 2016 or 2015. Stock Option s W e estimated the fair value of each stock option grant ed on the date of grant using the Black-Scholes option-pricing model using a dividend yield of zero and the following additional assumptions: March 25, 2017 March 26, 2016 March 28, 2015 Expected stock price volatility 47.66 % 40.13 - 45.07 % 38.79 - 42.12 % Risk-free interest rate 1.13 % 0.94 - 1.05 % 0.49 - 0.91 % Expected term (in years) 2.79 2.72 - 2.97 2.15 - 2.87 T he Black-Scholes valuation calculation requires us to estimate key assumptions such as stock price volatility, expected term, risk-free interest rate and dividend yield. The expected stock price volatility is based upon implied volatility from traded options on our stock in the marketplace. The expected term of options granted is derived from an analysis of historical exercises and remaining contractual life of stock options, and represents the period of time that options granted are expected to be outstanding after becoming vested . The r isk-free interest rate reflects th e yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected term assumption. Finally, we have never paid cash dividends, do not currently intend to pay cash dividends, and thus have assumed a zero percent dividend yield. U sing the Black-Scholes option valuation model, the weighted average estimated fair values of employee stock options granted in fiscal years 2017, 2016, and 2015 , were $ 22 . 84 , $ 12.58 , and $ 7 . 26 , respectively. D uring fiscal year s 2017, 2016, and 2015, we received a net $ 1 6. 4 million, $ 6 . 5 million, $ 5.2 million, respectively, from the exercise of 1 . 4 million , 0 . 8 million, and 0 . 7 million, respectively, stock options granted under the Company’s S tock Plan. T he total intrinsic value of stock options exercised during fiscal year 2017, 2016, and 2015 , was $ 52 . 2 million , $1 9 . 7 million, and $ 12.8 million , respectively. Intrinsic value represents the difference between the market value of the Company’s common stock at the time of exercise and the strike price of the stock option. A dditional information with respect to stock option activity is as follows (in thousand s, except per share amounts): Outstanding Options Weighted Average Number Exercise Price Balance, March 29, 2014 3,725 $ 12.42 Options granted 310 21.69 Options exercised (696) 7.47 Options forfeited (5) 19.94 Options expired (1) 4.65 Balance, March 28, 2015 3,333 $ 14.31 Options granted 387 31.39 Options exercised (773) 8.46 Options forfeited - - Options expired (22) 35.41 Balance, March 26, 2016 2,925 $ 17.96 Options granted 215 54.65 Options exercised (1,382) 11.87 Options forfeited - - Options expired - - Balance, March 25, 2017 1,758 $ 27.25 A dditional information with regards to outstanding options that are vesting, expected to vest, or exercisable as of March 25 , 201 7 is as follows (in thousands, except years and per share amounts): Weighted Weighted Average Number of Average Remaining Contractual Aggregate Options Exercise price Term (years) Intrinsic Value Vested and expected to vest 1,757 $ 27.24 6.40 $ 57,674 Exercisable 1,128 $ 21.77 5.18 $ 43,196 I n accordance with U.S. GAAP, stock options outstanding that are expected to vest are presented net of estimated future option forfeitures, which are estimated as compensation costs are recognized. Options with a fair value of $3.8 million, $3 . 4 million, and $ 4.4 million , became vested during fiscal years 2017, 2016, and 2015 , respectively. T he following table summarizes information regarding outstanding and exercisable options as of March 25 , 201 7 (in thousands, except per share amounts): Options Outstanding Options Exercisable Weighted Average Remaining Weighted Weighted Contractual Life Average Exercise Number Average Range of Exercise Prices Number (years) Price Exercisable Exercise Price $2.90 - $15.41 371 3.33 $ 11.01 371 $ 11.01 $16.21 - $20.37 328 5.81 18.63 242 18.02 $20.40 - $24.14 265 6.48 23.29 203 23.30 $31.25 - $31.25 331 8.61 31.25 91 31.25 $32.29 - $38.99 248 5.97 38.00 221 38.60 $54.65 - $54.65 215 9.61 54.65 - - 1,758 6.40 $ 27.25 1,128 $ 21.77 As of March 25, 2017 and March 26, 2016 , the number of options exercisa ble was 1 . 1 million and 2.2 million , respectively. Restricted Stock Awards T he Company periodically grants restricted stock awards (“RSA’s”) to select employees. The grant date for these awards is equal to the measurement date and the awards are valued as of the measurement date and amortized over the requisite vesting period, which is no more than four years. There were no RSA’s outstanding as of March 25, 2017. RSA’s with a fair value of $ 86 thousand b ecame vested during fiscal year 2015. No RSA’s became vested during fiscal year 2016 and 2017. Restricted Stock Units Commencing in fiscal year 2011, the Company began granting restricted stock units (“RSU’s”) to select employees. These awards are valued as of the grant date and amortized over the requisite vesting period. Generally, RSU’s vest 100 percent on the first to third anniversary of the grant date depending on the vesting specifications. A summary of the activity for RSU’s in fiscal year 2017, 2016, and 2015 is presented below (in thousands, except year and per share amounts): Weighted Average Shares Fair Value March 29, 2014 2,309 $ 25.26 Granted 1,887 22.04 Vested (1,224) 19.52 Forfeited (151) 26.17 March 28, 2015 2,821 25.57 Granted 1,437 31.51 Vested (992) 32.48 Forfeited (103) 24.75 March 26, 2016 3,163 26.14 Granted 947 52.40 Vested (1,032) 24.67 Forfeited (83) 28.40 March 25, 2017 2,995 $ 34.91 The aggregate intrinsic value of RSU’s outstanding as of March 25, 2017 was $ 1 7 9. 9 million. Additional information with regards to outstanding restricted stock units that are expected to vest as of March 25 , 201 7 , is as follows (in thousands, except year and per share amounts): Weighted Weighted Average Average Remaining Contractual Shares Fair Value Term (years) Expected to vest 2,870 $ 34.64 1.43 RSU’s outstanding that are expected to vest are presented net of estimated future forfeitures, which are estimated as compensation costs are recognized. RSU’s with a fair value of $ 25 . 5 million and $ 32.2 million became vested during fiscal year s 2017 and 2016, respectively . The majority of RSUs that vested in 2017 and 2016 were net settled such that the Company withheld a portion of the shares at fair value to satisfy tax withholding requirements. In fiscal year s 2017 and 2016 , the vesting of RSU’s reduced the authorized and unissued share b alance by approximately 1.0 million and 1.0 million, respectively. Total shares withheld and subsequently retired out of the Plan were approximately 0. 3 million and 0.2 million, and total payments for the employees’ tax obligations to taxing authorities were $ 14 . 1 million and $ 6.9 million for fiscal years 2017 and 2016, respectively. A portion of RSUs that vested in fiscal year 2017 and 2016 were cash settled such that the Company received cash from employees in lieu of withholding shares to satisfy tax withholding requirements. The total amount received from cash settled shares during fiscal year 2017 and 2016 was $0.1 million and $ 0. 1 million, respectively. Market Stock Units In fiscal year 2015, the Company began granting market stock units (“MSU’s”) to select employees. MSU’s vest based upon the relative total shareholder return (“TSR”) of the Company as compared to that of the Index. The requisite service period for these MSU’s is also the vesting period, which is three years. The fair value of each MSU granted was determined on the date of grant using the Monte Carlo simulation, which calculates the present value of the potential outcomes of future stock prices of the Company and the Index over the requisite service period. The projection of the stock prices is based on the risk-free rate of return, the volatilities of the stock price of the Company and the Index, the correlation of the stock price of the Company with the Index, and the dividend yield. The fair values estimated from the Monte Carlo simulation were calculated using a dividend yield of zero and the following additional assumptions: Year Ended March 25, March 26, 2017 2016 Expected stock price volatility 47.66 % 45.07 % Risk-free interest rate 0.98 % 1.16 % Expected term (in years) 3.00 3.00 Using the Monte Carlo simulation, the weighted average estimated fair value of the MSU’s granted in fiscal year 201 7 was $ 75 . 5 8 . A summary of the activity for MSU’s in fiscal year 2017, 2016 and 2015 is presented below (in thousands, except year and per share amounts): Weighted Average Shares Fair Value March 29, 2014 - $ - Granted 35 22.00 Vested - - Forfeited - - March 28, 2015 35 $ 22.00 Granted 90 39.86 Vested - - Forfeited - - March 26, 2016 125 $ 34.85 Granted 55 75.58 Vested - - Forfeited - - March 25, 2017 180 $ 47.30 The aggregate intrinsic value of MSU’s outstanding as of March 2 5 , 201 7 was $ 10 . 8 million . Additional information with regard to outstanding MSU’s that are expected to vest as of March 2 5 , 201 7 is as follows (in thousands, except year and per share amounts): Weighted Weighted Average Average Remaining Contractual Shares Fair Value Term (years) Expected to vest 171 $ 46.89 1.69 No MSU’s became vested in 2017, 2016 and 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 25, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Facilities and Equipment Under Operating and Capital Lease Agreements We currently own our corporate headquarters and select surrounding properties, and a UK office. We lease certain of our other facilities and certain equipment under operating lease agreements, some of which have renewal options. Certain of these arrangements provide for lease payment increases based upon future fair market rates. As of March 25, 2017, our principal facilities are located in Austin, Texas and Edinburgh, Scotland, United Kingdom. Total rent expense under operating leases was approximately $8.2 million, $5.2 million, and $4.0 million, for fiscal years 2017, 2016, and 2015, respectively. Sublease rental income was $0.4 million, $0.3 million, and $0.1 million, for fiscal years 2017, 2016, and 2015, respectively. As of March 26, 2016, there was equipment held under a capital lease with a cost basis of $1. 0 million and accumulated depreciation related to this equipment of $0.3 million, which was paid off in fiscal year 2017, leaving no related future capital lease commitments. The aggregate minimum future rental commitments under all operating leases, net of sublease income for the following fiscal years are (in thousands): Facilities Subleases Net Facilities Commitments Equipment and Other Commitments Total Commitments 2018 $ 7,074 $ 386 $ 6,688 $ 67 $ 6,755 2019 10,354 391 9,963 115 10,078 2020 9,811 266 9,545 110 9,655 2021 9,580 245 9,335 110 9,445 2022 9,313 251 9,062 110 9,172 Thereafter 39,071 859 38,212 432 38,644 Total minimum lease payment $ 85,203 $ 2,398 $ 82,805 $ 944 $ 83,749 Wafer, Assembly, Test and Other Purchase Commitments We rely primarily on third-party foundries for our wafer manufacturing needs. Generally, our foundry agreements do not have volume purchase commitments and primarily provide for purchase commitments based on purchase orders, with the exception of a few "take or pay" clauses included in vendor contracts that are immaterial at March 25, 2017. Cancellation fees or other charges may apply and are generally dependent upon whether wafers have been started or the stage of the manufacturing process at which the notice of cancellation is given. As of March 25, 2017, we had foundry commitments of $ 182.3 million. In addition to our wafer supply arrangements, we contract with third-party assembly vendors to package the wafer die into finished products. Assembly vendors provide fixed-cost-per-unit pricing, as is common in the semiconductor industry. We had non-cancelable assembly purchase orders with numerous vendors totaling $ 3.6 million at March 25, 2017. Test vendors provide fixed-cost-per-unit pricing, as is common in the semiconductor industry. Our total non-cancelable commitment for outside test services as of March 25, 2017 was $ 14.5 million. Other purchase commitments primarily relate to multi-year tool commitments, and were $21.6 million at March 25, 2017. |
Legal Matters
Legal Matters | 12 Months Ended |
Mar. 25, 2017 | |
Legal Matters [Abstract] | |
Legal Matters | 12 . 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 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 . |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Mar. 25, 2017 | |
Stockholder's Equity [Abstract] | |
Stockholder's Equity | 1 3 . Stockholders’ Equity Share Repurchase Program On October 28, 2015, the Company announced that the Board of Directors authorized a share repurchase program of up to $200 million of the Company’s common stock. As of March 25, 2017, the Company had repurchased 0.8 million shares under this plan at a cost of approximately $24.2 million, or an average cost of $31. 93 per share. Of this total, 0.5 million shares were purchased in fiscal year 2017 at a cost of $15.4 million, or an average cost of $32.13 per share. Approximately $1 75 . 8 million remains available for repurchase under this plan. 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 March 25 , 201 7 . Preferred Stock We have 5.0 million shares of Preferred Stock authorized. As of March 2 5 , 201 7 , we have not issued any of the authorized shares. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Mar. 25, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss Text Block | 1 4 . Accumulated Other Comprehensive Income ( Loss ) O ur accumulated other comprehensive income ( loss ) is comprised of foreign currency translation adjustments , unrealized gains and losses on investments classified as available-for-sale , and actuarial gains and losses on our pension plan assets . T he following table summarizes the changes in the components of accumulated other comprehensive income ( loss ) , net of tax (in thousands): Unrealized Gains Actuarial Gains Foreign (Losses) on (Losses) on Currency Securities Pension Plan Total Balance, March 28, 2015 $ (770) $ (47) $ (1,293) $ (2,110) Current period foreign exchange translation 294 - - 294 Current period marketable securities activity - (24) - (24) Current period actuarial gain/loss activity - - 2,660 2,660 Current period amortization of actuarial loss - - 49 49 Tax effect - 9 (546) (537) Balance, March 26, 2016 (476) (62) 870 332 Current period foreign exchange translation (826) - - (826) Current period marketable securities activity - 47 - 47 Current period actuarial gain/loss activity - - (79) (79) Current period amortization of actuarial loss - - (89) (89) Tax effect - (16) 58 42 Balance, March 25, 2017 $ (1,302) $ (31) $ 760 $ (573) |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 25, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 1 5 . Income Taxes Income before income taxes consisted of (in thousands): Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 U.S. $ 137,654 $ 108,133 $ 133,295 Non-U.S. 177,393 67,856 (41,746) $ 315,047 $ 175,989 $ 91,549 T he provision (benefit) for income taxes consists of (in thousands): Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 Current: U.S. $ 28,940 $ 28,313 $ 42,165 Non-U.S. 7,234 703 445 Total current tax provision $ 36,174 $ 29,016 $ 42,610 Deferred: U.S. 2,576 18,242 2,136 Non-U.S. 15,088 5,101 (8,375) Total deferred tax provision (benefit) 17,664 23,343 (6,239) Total tax provision $ 53,838 $ 52,359 $ 36,371 T he effective income tax rates differ from the rates computed by applying the statutory federal rate to pretax income as follows (in percentages): Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 U.S. federal statutory rate 35.0 35.0 35.0 Foreign income taxed at different rates (8.6) (0.6) 7.3 Research and development tax credits (1.8) (5.6) (3.6) Stock based compensation (7.3) - - Nondeductible expenses - 0.1 2.3 Other (0.2) 0.9 (1.3) Effective tax rate 17.1 29.8 39.7 As disclosed in Note 2 – Summary of Significant Accounting Policies, the Company adopted ASU 2016-09 in the third quarter of fiscal year 2017. The effect of the adoption reduced the provision for income taxes by $22.9 million for the year ended March 25, 2017. S ignificant components of our deferred tax assets and liabilities as of March 25, 2017 and March 26, 2016 are (in thousands): March 25, March 26, 2017 2016 Deferred tax assets: Accrued expenses and allowances $ 9,002 $ 3,761 Net operating loss carryforwards 6,294 24,592 Research and development tax credit carryforwards 13,977 9,649 Stock based compensation 17,356 16,071 Other 9,141 9,976 Total deferred tax assets $ 55,770 $ 64,049 Valuation allowance for deferred tax assets (12,570) (10,773) Net deferred tax assets $ 43,200 $ 53,276 Deferred tax liabilities: Depreciation and amortization $ 13,837 $ 13,607 Acquisition intangibles 16,301 21,844 Total deferred tax liabilities $ 30,138 $ 35,451 Total net deferred tax assets $ 13,062 $ 17,825 Deferred tax assets and liabilities are recorded for the estimated tax impact of temporary differences between the tax basis and book basis of assets and liabilities. A valuation allowance is established against a deferred tax asset when it is more likely than not that the deferred tax asset will not be reali zed. The valuation allowance in creased by $ 1.8 million in fiscal year 201 7 with no material impact to income tax expense . The Company continu ed to record a valuation allowance on various state net operating losses and tax credits due to the likelihood that they will expire or go unutilized because the Company does not expect to recognize sufficient income in the jurisdictions in which the tax attributes were created. Management believes that the Company’s results from future operations will generate sufficient taxable income in the appropriate jurisdictions and of the appropriate character such that it is more likely than not that the remaining deferred tax assets will be realized. At March 2 5 , 201 7 , the Company had gross federal net operating loss carryforwards of $ 12.9 million, all of which related to acquired companies and are, therefore, subject to certain limitations under Section 382 of the Internal Revenue Code. The federal net operating loss carryforwards expire in fiscal years 2019 through 2034 . The Company had $8.5 million of alternative minimum tax credit carryforwards that may be carried forward indefinitely. The Company also had $ 4.0 million of federal research and development credit carryforwards which will expire in 203 7 . At March 2 5 , 201 7 , the Company had gross state net operating loss carryforwards of $ 44.7 million. The state net operating loss carryforwards expire in fiscal years 201 8 through 20 33. In addition, the Company had $ 15.4 million of state research and development tax credit carryfo r wards. Certain of these state tax credits will expire in fiscal years 2022 through 20 32 . The remaining state tax credit carryforwar d s do not expire. At March 2 5 , 201 7, the Company does not have any foreign operating loss carryforward . At March 2 5 , 201 7, the undistributed earnings of our foreign subsidiaries of approximately $201.3 million are intended to be indefinitely reinvested outside the U.S. Accordingly, no provision for U.S. federal income and foreign withholding taxes associated with a distribution of these earnings has been made. The amount of unrecognized deferred tax liability related to these undistributed earnings is estimated to be $ 65.5 million. The following table summarizes the changes in the unrecognized tax benefits (in thousands): March 25, March 26, 2017 2016 Beginning balance $ 18,796 $ - Additions based on tax positions related to the current year 12,127 12,592 Additions based on tax positions related to prior years - 6,204 Reductions based on tax positions related to the prior years (65) - Ending balance $ 30,858 $ 18,796 The Company record s unrecognized tax benefits for the estimated risk associated with tax positions taken on tax returns. At March 2 5 , 201 7, the Company had gross unrecognized tax benefits of $ 30.9 million, all of which would impact the effective tax rate if recognized. The Company believes it is reasonably possible that the gross unrecognized tax benefits could decrease by approximately $2.3 million in the next 12 months due to the lapse of the statute of limitations applicable to a tax deduction claimed on a prior year tax return. During fiscal year 201 7 , the Company had gross increases of $ 12.1 million related to current year unrecognized tax benefits, as well as a $ 0.1 million decrease related to tax positions taken in prior year s . The Company’s unrecognized tax benefits are classified as “ Other long-term liabilities ” in the Consolidated Balance Sheet. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. During fiscal year 201 7 we recognized interest expense, net of tax, of approximately $0.2 million. No interest or penalties were recognized during fiscal year 2016 . The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. F iscal years 2014 through 2017 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 2014 may be adjusted upon examination by the tax authorities if they have been, or will be, used in a future period. The Company is not currently under an income tax audit in any major taxing jurisdiction. |
Segment Information
Segment Information | 12 Months Ended |
Mar. 25, 2017 | |
Segment Information [Abstract] | |
Segment Information | 1 6 . Segment Information We determine our operating segments in accordance with Financial Accounting Standards Board (“ 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, which currently are 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 operations 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. Revenue from our product lines are as follows (in thousands): Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 Portable Audio Products $ 1,373,848 $ 989,101 $ 740,301 Non-Portable Audio and Other Products 165,092 180,150 176,267 $ 1,538,940 $ 1,169,251 $ 916,568 Geographic Area The following illustrates sales by geographic locations based on the sales office location (in thousands): Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 United States $ 36,024 $ 73,889 $ 31,977 European Union (excluding United Kingdom) 9,809 12,745 13,629 United Kingdom 5,741 5,687 2,805 China 1,249,325 823,843 728,413 Hong Kong 181,283 10,647 15,087 Japan 11,819 27,898 14,353 South Korea 2,403 193,388 69,327 Taiwan 14,426 9,249 15,272 Other Asia 16,585 8,657 10,991 Other non-U.S. countries 11,525 3,248 14,714 Total consolidated sales $ 1,538,940 $ 1,169,251 $ 916,568 The following illustrates property, plant and equipment, net, by geographic locations, based on physical location (in thousands): Fiscal Years Ended March 25, March 26, 2017 2016 United States $ 120,212 $ 125,674 European Union (excluding United Kingdom) 793 253 United Kingdom 44,981 34,632 China 565 483 Hong Kong 5 1 Japan 243 260 South Korea 202 110 Taiwan 231 180 Other Asia 50 29 Other non-U.S. countries 857 1,034 Total consolidated property, plant and equipment, net $ 168,139 $ 162,656 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Mar. 25, 2017 | |
Quarterly Results (Unaudited) [Abstract] | |
Quarterly Results (Unaudited) | 1 7 . Quarterly Results (Unaudited) The following quarterly results have been derived from our audited annual consolidated financial statements. In the opinion of management, this unaudited quarterly information has been prepared on the same basis as the annual consolidated financial statements and includes all adjustments, including normal recurring adjustments, necessary for a fair presentation of this quarterly information. This information should be read along with the financial statements and related notes. The operating results for any quarter are not necessarily indicative of results to be expected for any future period. As a result of the early adoption of ASU 2016-09, discussed in more detail in Note 2, the net income and EPS for the first two quarters of fiscal year 2017 have been recast to conform to the new presentation. The unaudited quarterly statement of operations data for each quarter of fiscal years 2017 and 201 6 were as follows (in thousands, except per share data): Fiscal Year 2017 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Net sales $ 259,428 $ 428,619 $ 523,029 $ 327,864 Gross profit 126,685 211,699 255,152 164,279 Net income 18,071 86,039 122,041 35,058 Basic income per share $ 0.29 $ 1.37 $ 1.91 $ 0.55 Diluted income per share 0.27 1.30 1.83 0.52 Fiscal Year 2016 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Net sales $ 282,633 $ 306,756 $ 347,863 $ 231,999 Gross profit 132,454 142,221 164,911 115,254 Net income 33,354 34,880 41,384 14,012 Basic income per share $ 0.53 $ 0.55 $ 0.65 $ 0.22 Diluted income per share 0.50 0.53 0.63 0.21 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Mar. 25, 2017 | |
Subsequent Event [Abstract] | |
Subsequent Events [Text Block] | 18. Subsequent Event On April 14 , 201 7 , the Company purchased a small, privately-held technology group that augments our product offerings in the voice and speech domains . The immaterial purchase was funded with existing cash. |
Description of Business (Policy
Description of Business (Policy) | 12 Months Ended |
Mar. 25, 2017 | |
Description of Business [Abstract] | |
Basis of Presentation | Basis of Presentation We prepare financial statements on a 52- or 53-week year that ends on the last Saturday in March. Fiscal years 2017, 2016, and 2015 were 52-week years. The next 53-week year will be fiscal year 2018. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U. S. generally accepted accounting principles (U.S. GAAP) and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior year balances in order to conform to the current year’s presentation of financial information. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires the use of management estimates. These estimates are subjective in nature and involve judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at fiscal year-end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Mar. 25, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist primarily of money market funds, commercial paper, and U.S. Government Treasury and Agency instruments with original maturities of three months or less at the date of purchase. |
Inventories | Inventories We use the lower of cost or net realizable value to value our inventories, following the adoption of ASU 2015-11, with cost being determined on a first-in, first-out basis. One of the factors we consistently evaluate in the application of this method is the extent to which products are accepted into the marketplace. By policy, we evaluate market acceptance based on known business factors and conditions by comparing forecasted customer unit demand for our products over a specific future period, or demand horizon, to quantities on hand at the end of each accounting period. On a quarterly and annual basis, we analyze inventories on a part-by-part basis. Product life cycles and the competitive nature of the industry are factors considered in the evaluation of customer unit demand at the end of each quarterly accounting period. Inventory quantities on-hand in excess of forecasted demand is considered to have reduced market value and, therefore, the cost basis is adjusted to the lower of cost or net realizable value . Typically, market values for excess or obsolete inventories are considered to be zero. Inventory charges recorded for excess and obsolete inventory, including scrapped inventory, represented $6.7 million and $4.8 million, in fiscal year 2017 and 2016, respectively . Inventory charges in fiscal year 2017 and 2016 related to a combination of quality issues and inventory exceeding demand. Inventories were comprised of the following (in thousands): March 25, March 26, 2017 2016 Work in process $ 83,332 $ 67,827 Finished goods 84,563 74,188 $ 167,895 $ 142,015 |
Property, Plant and Equipment, Net | Property, Plant and Equipment, net Property, plant and equipment is recorded at cost, net of depreciation and amortization. Depreciation and amortization is calculated on a straight-line basis over estimated economic lives, ranging from three to 39 years. Leasehold improvements are depreciated over the shorter of the term of the lease or the estimated useful life. Furniture, fixtures, machinery, and equipment are all depreciated over a useful life of three to 10 years, while buildings are depreciated over a period of up to 39 years. In general, our capitalized software is amortized over a useful life of three years, with capitalized enterprise resource planning software being amortized over a useful life of 10 years. Gains or losses related to retirements or dispositions of fixed assets are recognized in the period incurred. Additionally, if impairment indicators exist, the Company will assess the carrying value of the associated asset. In the fourth quarter of fiscal year 2017, the Company reassessed the carrying value of the property located in Edinburgh, Scotland, resulting in an asset impairment charge of $9.8 million. Property, plant and equipment was comprised of the following (in thousands): March 25, March 26, 2017 2016 Land $ 26,379 $ 26,379 Buildings 74,266 73,513 Furniture and fixtures 14,231 13,226 Leasehold improvements 4,355 2,637 Machinery and equipment 123,054 105,880 Capitalized software 24,839 25,127 Construction in progress 22,972 5,411 Total property, plant and equipment 290,096 252,173 Less: Accumulated depreciation and amortization (121,957) (89,517) Property, plant and equipment, net $ 168,139 $ 162,656 Depreciation and amortization expense on property, plant, and equipment for fiscal years 2017, 2016, and 2015 was $26.1 million, $22.3 million, and $15.4 million, respectively. |
Goodwill and Intangibles, Net | Goodwill and Intangibles, net Intangible assets include purchased technology licenses and patents that are reported at cost and are amortized on a straight-line basis over their useful lives, generally ranging from one to ten years. Acquired intangibles include existing technology, core technology or patents, license agreements, in-process research & development, trademarks, tradenames, customer relationships, non-compete agreements, and backlog. These assets are amortized on a straight-line basis over lives ranging from one to fifteen years. Goodwill is recorded at the time of an acquisition and is calculated as the difference between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. The Company tests goodwill and indefinite lived intangibles for impairment on an annual basis or more frequently if the Company believes indicators of impairment exist. Impairment evaluations involve management’s assessment of qualitative factors to determine whether it is more likely than not that goodwill and other intangible assets are impaired. If management concludes from its assessment of qualitative factors that it is more likely than not that impairment exists, then a quantitative impairment test will be performed involving management estimates of asset useful lives and future cash flows. Significant management judgment is required in the forecasts of future operating results that are used in these evaluations. If our actual results, or the plans and estimates used in future impairment analyses, are lower than the original estimates used to assess the recoverability of these assets, we could incur additional impairment charges in a future period. The Company has recorded no goodwill impairments in fiscal years 2017, 2016, and 2015. There were no material intangible asset impairments in fiscal years 2017, 2016, or 2015. |
Long-Lived Assets | Long-Lived Assets We test for impairment losses on long-lived assets and definite-lived intangibles used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. We measure any impairment loss by comparing the fair value of the asset to its carrying amount. We estimate fair value based on discounted future cash flows, quoted market prices, or independent appraisals. |
Foreign Currency Translation | Foreign Currency Translation Prior to the fiscal year 2015 acquisition of Wolfson Microelectronics (“ Wolfson, ” the “ Acquisition ”), each Cirrus Logic legal entity was US dollar functional. Additionally, each of the acquired Wolfson legal entities were also designated as US dollar functional. These designations were determined individually by Cirrus Logic and Wolfson prior to the Acquisition. Subsequent to the integration of Wolfson, the Company reassessed the functional currencies of each legal entity based on the relevant facts and circumstances, as well as in accordance with the applicable accounting guidance contained in Accounting Standards Codification (“ASC”) 830-10, “Foreign Currency Matters.” Based on its analysis and on the change in operating structure brought about by the Acquisition, the Company determined that the functional currency of some of its subsidiaries had changed from the US dollar to the local currency. The Company’s main entities, including the entities that generate the majority of sales and employ the majority of employees, remain US dollar functional. The change was effective beginning in fiscal year 2016 and had an immaterial effect on the financial statements. Beginning in fiscal year 2016 foreign currency translation gains and losses are reported as a component of Accumulated Other Comprehensive Gain / (Loss). |
Pension | Pension Defined benefit pension plans are accounted for based upon the provisions of ASC Topic 715, “ Compensation – Retirement Benefits. ” The funded status of the plan is recognized in the C onsolidated B alance S heet. Subsequent re-measurement of plan assets and benefit obligations, if deemed necessary, would be refle cted in the C onsolidated B alance S heet in the subsequent interim period to reflect the overfunded or underfunded status of the plan. The Company engage s external actuaries on at least an annual basis to provide a valuation of the plan’s assets and projected benefit obligation and to record the net periodic pension cost. On a quarterly basis, the Company will evaluate current information available to us to determine whether the plan’s assets and projected benefit obligation should be re-measured. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to material concentrations of credit risk consist primarily of cash equivalents, marketable securities, long-term marketable securities, and trade accounts receivable. We are exposed to credit risk to the extent of the amounts recorded on the balance sheet. By policy, our cash equivalents, marketable securities, and long-term marketable securities are subject to certain nationally recognized credit standards, issuer concentrations, sovereign risk, and marketability or liquidity considerations. In evaluating our trade receivables, we perform credit evaluations of our major customers’ financial condition and monitor closely all of our receivables to limit our financial exposure by limiting the length of time and amount of credit extended. In certain situations, we may require payment in advance or utilize letters of credit to reduce credit risk. By policy, we establish a reserve for trade accounts receivable based on the type of business in which a customer is engaged, the length of time a trade account receivable is outstanding, and other knowledge that we may possess relating to the probability that a trade receivable is at risk for non-payment. We had three contract manufacturers, Hongfujin Precision, Protek, and Jabil Circuits who represented 20 percent, 15 percent, and 13 percent, respectively of our consolidated gross trade accounts receivable as of the end of fiscal year 2017. Hongfujin Precision and Protek represented 23 percent and 11 percent, respectively, and Samsung Electronics, a direct customer, represented 23 percent of our consolidated gross trade accounts receivable as of the end of fiscal year 2016. No other distributor or customer had receivable balances that represented more than 10 percent of consolidated gross trade accounts receivable as of the end of fiscal year 2017 and 2016. Since the components we produce are largely proprietary and generally not available from second sources, we consider our end customer to be the entity specifying the use of our component in their design. These end customers may then purchase our products directly from us, from a distributor, or through a third party manufacturer contracted to produce their end product. For fiscal years 2017, 2016, and 2015, our ten largest end customers represented approximately 92 percent, 89 percent, and 87 percent, of our sales, respectively. For fiscal years 2017, 2016, and 2015 , w e had one end customer, Apple Inc., who purchased through multiple contract manufacturers and represented approximately 79 percent, 66 percent, and 72 percent, of the Company’s total sales, respectively. Samsung Electronics represented 15 percent of the Company’s total sales in fiscal year 2016. No other customer or distributor represented more than 10 percent of net sales in fiscal years 2017, 2016, or 2015. |
Revenue Recognition | Revenue Recognition We recognize revenue when all of the following criteria are met: persuasive evidence that an arrangement exists, delivery of goods has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Prior to the fourth quarter of fiscal year 2016, we had a number of arrangements with distributors whereby we deferred revenue at the time of shipment of our products to those distributors. As part of those arrangements, when a distributor resold those products to an end customer, the Company would credit the distributor the difference between (1) the original distributor price and the distributor’s agreed upon margin and (2) the final sales price to the end customer (known as the “Ship and Debit Arrangement”). For those transactions, revenue was deferred until the product was resold by the distributor and we determined that the final sales price to the distributor was fixed or determinable. For certain of our smaller distributors, we did not have similar Ship and Debit Arrangements and the distributors were billed at a fixed upfront price. For those transactions, revenue was recognized upon delivery to the distributor based upon the distributor’s individual shipping terms, less an allowance for estimated returns, as the Company determined that the revenue recognition criteria were met. In light of the fact that the distributor program had been declining as a portion of the overall business for several years, in fiscal year 2016 the Company performed a review of all distributor arrangements in an effort to streamline our distribution program and reduce overhead costs. Based upon this review, the Company terminated its Ship and Debit Arrangements with Distributors during the fourth quarter of fiscal year 2016. Subsequent to the termination of the Ship and Debit Arrangements, the Company began recognizing revenue for all distributors upon delivery to the distributor based upon the distributor’s individual shipping terms, less an allowance for estimated returns, as the Company’s final sales price to the distributor was fixed and determinable and the Company determined that all four criteria for revenue recognition were met. Although the Company terminated its Ship and Debit Arrangements with all distributors along with certain ancillary agreements related to the Ship and Debit Arrangements, the Company continues to grant varying levels of stock rotation and price protection rights based on individual distributor agreements. To the extent these rights are implicated in any transaction with a distributor, we continue to evaluate their effect on when the revenue recognition criteria have been met. |
Warranty Expense | Warranty Expense We warrant our products and maintain a provision for warranty repair or replacement of shipped products. The accrual represents management’s estimate of probable returns. Our estimate is based on an analysis of our overall sales volume and historical claims experience. The estimate is re-evaluated periodically for accuracy. |
Shipping Costs | Shipping Costs Our shipping and handling costs are included in cost of sales for all periods presented in the Consolidated Statements of Income. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising costs were $1.7 million, $1.6 million, and $1.1 million, in fiscal years 2017, 2016, and 2015, respectively. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation is measured at the grant date based on the grant-date fair value of the awards and is recognized as an expense, on a ratable basis, over the vesting period, which is generally between zero and four years. Determining the amount of stock-based compensation to be recorded requires the Company to develop estimates used in calculating the grant-date fair value of stock options and performance awards (also called market stock units). The Company calculates the grant-date fair value for stock options and market stock units using the Black-Scholes valuation model and the Monte Carlo simulation, respectively. The use of valuation models requires the Company to make estimates of assumptions such as expected volatility, expected term, risk-free interest rate, expected dividend yield, correlation of the Company’s stock price with the Philadelphia Semiconductor Index (“ the Index ”) and forfeiture rates. The grant-date fair value of restricted stock units is the market value at grant date multiplied by the number of units. |
Income Taxes | Income Taxes We are required to calculate income taxes in each of the jurisdictions in which we operate. This process involves calculating the actual current tax liability as well as assessing temporary differences in the recognition of income or loss for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in our Consolidated Balance Sheet. We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company evaluates the ability to realize its deferred tax assets based on all the facts and circumstances, including projections of future taxable income and expiration dates of carryover tax attributes. The calculation of our tax liabilities involves assessing uncertainties with respect to the application of complex tax rules and the potential for future adjustment of our uncertain tax positions by the Internal Revenue Service or other taxing jurisdiction. We recognize liabilities for uncertain tax positions based on the required two-step process. The first step requires us to determine if the weight of available evidence indicates that the tax position has met the threshold for recognition; therefore, we must evaluate whether it is more likely than not that the position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step requires us to measure the tax benefit of the tax position taken, or expected to be taken, in an income tax return as the largest amount that is more than 50 percent likely of being realized upon ultimate settlement. We reevaluate the uncertain tax positions each quarter based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, expirations of statutes of limitation, effectively settled issues under audit, and new audit activity. A change in the recognition step or measurement step would result in the recognition of a tax benefit or an additional charge to the tax provision in the period. Although we believe the measurement of our liabilities for uncertain tax positions is reasonable, we cannot assure that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals. If additional taxes are assessed as a result of an audit or litigation, it could have a material effect on our income tax provision and net income in the period or periods for which that determination is made. We operate within multiple taxing jurisdictions and are subject to audit in these jurisdictions. These audits can involve complex issues which may require an extended period of time to resolve and could result in additional assessments of income tax. We believe adequate provisions for income taxes have been made for all periods. |
Net Income Per Share | Net Income Per Share Basic net income per share is based on the weighted effect of common shares issued and outstanding and is calculated by dividing net income by the basic weighted average shares outstanding during the period. Diluted net income per share is calculated by dividing net income 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 and restricted stock grants. The following table details the calculation of basic and diluted earnings per share for fiscal years 2017, 2016, and 2015 , (in thousands, except per share amounts): Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 Numerator: Net income $ 261,209 $ 123,630 $ 55,178 Denominator: Weighted average shares outstanding 63,329 63,197 62,503 Effect of dilutive securities 3,232 2,796 2,732 Weighted average diluted shares 66,561 65,993 65,235 Basic earnings per share $ 4.12 $ 1.96 $ 0.88 Diluted earnings per share $ 3.92 $ 1.87 $ 0.85 The weighted outstanding options excluded from our diluted calculation for the years ended March 25, 2017, March 26, 2016, and March 28, 2015 were 389 thousand, 468 thousand, and 718 thousand , respectively, as the exercise price exceeded the average market price during the period. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Our accumulated other comprehensive income (loss) is comprised of foreign currency translation adjustments, unrealized gains and losses on investments classified as available-for-sale and actuarial gains and losses on our pension plan assets. See Note 1 4 – Accumulated Other Comprehensive Income (Loss) for additional discussion. |
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 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 is currently in the process of reviewing our customers’ contracts in respect of performance obligation identification and satisfaction, pricing, warranties, and return rights, among other considerations. Through this process, t he Company currently expects no material modifications to its financial statements upon adoption of this ASU. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The amendments in this ASU provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company adopted this ASU in the fourth quarter of fiscal year 2017 with n o material modifications to the Company’s financial statements as a result. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The amendments in this update require that debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability and that the amortization of debt issuance costs is reported as interest expense. ASU 2015-03 is to be applied retrospectively and represents a change in accounting principle. In August 2015, the FASB issued FASB ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . ASU 2015-15 clarified the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. Debt issuance costs related to a line-of-credit arrangement may be presented in the balance sheet as an asset and subsequently amortized ratably over the term of the arrangement regardless of whether there are any outstanding borrowings. Both ASU 2015-03 and ASU 2015-15 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Earlier adoption is permitted for financial statements that have not been previously issued. The Company adopted these ASUs in fiscal year 2017 with no material impact to its financial statements. In April 2015, the FASB issued ASU No. 2015-04, Compensation – Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets. The ASU is part of the FASB’s “Simplification Initiative” to reduce complexity in accounting standards. The FASB decided to permit entities to measure defined benefit plan assets and obligations as of the month-end that is closest to their fiscal year-end. An entity is required to disclose the accounting policy election and the date used to measure defined benefit plan assets and obligations in accordance with the amendments in this update. The amendments in this update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with earlier application permitted. The Company adopted this ASU in the first quarter of fiscal year 2017, with no material impact to its financial statements. In July 2015, ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory was issued. This ASU requires companies to subsequently measure inventory at the lower of cost and net realizable value versus the previous lower of cost or market. The amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, to be applied prospectively. Early application is permitted. The Company early adopted this ASU in fiscal year 2017 with no material modifications to its financial statements as a result. 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 Company is currently evaluating the impact of this ASU. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This ASU requires all excess tax benefits and deficiencies to be recognized as income tax benefit / expense in the income statement and presented as an operating activity in the statement of cash flows. Forfeitures can be calculated based on either the estimated number of awards that are expected to vest, as required by current guidance, or when forfeitures actually occur. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted, but all amendments must be adopted in the same period and any adjustments should be reflected as of the beginning of the fiscal year if adopted in an interim period. The Company early adopted in the third quarter of fiscal year 2017, which resulted in the following: · We recorded excess tax benefits within income tax expense, rather than in additional paid-in capital (“APIC”), of $2.2 million, $8.0 million, $10.8 million and $1.9 million for the first, second, third and fourth quarters of fiscal year 2017, respectively. · We recorded a cumulative-effect adjustment as of March 27, 2016 to increase retained earnings by $5.6 million, with a corresponding increase to deferred tax assets, to recognize net operating loss and tax credit carryforwards attributable to excess tax benefits on stock-based compensation that had not been previously recognized. · We now include the excess tax benefits in net operating cash rather than net financing cash in our Consolidated Statements of Cash Flows. We applied this change in presentation prospectively and thus prior years have not been adjusted. We elected not to change our policy on accounting for forfeitures and continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The adoption of this new guidance impacted our previously reported quarterly results for fiscal year 2017 as follows: Three Months Ended Six Months Ended June 25, 2016 September 24, 2016 September 24, 2016 As reported As adjusted As reported As adjusted As reported As adjusted (in thousands, except per share data) Consolidated Condensed Statements of Income: Income tax expense $ 5,805 $ 3,598 $ 24,608 $ 16,634 $ 30,413 $ 20,232 Net income $ 15,864 $ 18,071 $ 78,065 $ 86,039 $ 93,929 $ 104,110 Basic net income per share $ 0.25 $ 0.29 $ 1.24 $ 1.37 $ 1.50 $ 1.66 Diluted net income per share $ 0.24 $ 0.27 $ 1.19 $ 1.30 $ 1.43 $ 1.58 Weighted average shares used in diluted net income per share computation 65,232 65,723 65,717 66,410 65,521 66,101 Consolidated Condensed Statements of Cash Flows: Net cash provided by operating activities $ 12,226 $ 12,756 $ 19,990 $ 24,091 $ 32,216 $ 36,847 Net cash used in financing activities $ (13,140) $ (13,670) $ (13,859) $ (17,960) $ (26,999) $ (31,630) 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 August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This ASU covers several cash flow issues, including the presentation of contingent consideration payments made after a business combination. Cash payments up to the amount of the liability recognized at the acquisition date (including measurement-period adjustments) should be classified as financing activities. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted, including in an interim period, with a required retrospective transition method applied to each period presented. The Company early adopted in the fourth quarter of fiscal year 2017. See Statement of Cash Flows for presentation of contingent consideration payment. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This ASU relates to income tax consequences of non-inventory intercompany asset transfers. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted, as of the beginning of an annual reporting period. The guidance requires companies to apply a modified retrospective approach with a cumulative catch-up adjustment to beginning retained earnings in the period of adoption. The Company is currently evaluating the impact of this ASU. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The update states that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business, and should be treated as an asset acquisition instead. This ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted under specific circumstances, including in an interim period, with prospective application on or after the effective date . The Company is currently evaluating the financial statement impact of this ASU, which is dependent upon the specific terms of any applicable future acquisitions or dispositions. In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323). This ASU amends the disclosure requirements for ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ASU 2016-02, Leases (Topic 842) and ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU states that if a registrant does not know or cannot reasonably estimate the impact that the adoption of the above ASUs is expected to have on the financial statements, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the standard will have on the financial statements of the registrant when adopted. This ASU was effective upon issuance. The adoption did not have a material impact on the Company’s financial statements. 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 u pdate. The Company is currently evaluating the impact of this ASU |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Inventories | March 25, March 26, 2017 2016 Work in process $ 83,332 $ 67,827 Finished goods 84,563 74,188 $ 167,895 $ 142,015 |
Components of Property, Plant and Equipment | March 25, March 26, 2017 2016 Land $ 26,379 $ 26,379 Buildings 74,266 73,513 Furniture and fixtures 14,231 13,226 Leasehold improvements 4,355 2,637 Machinery and equipment 123,054 105,880 Capitalized software 24,839 25,127 Construction in progress 22,972 5,411 Total property, plant and equipment 290,096 252,173 Less: Accumulated depreciation and amortization (121,957) (89,517) Property, plant and equipment, net $ 168,139 $ 162,656 |
Schedule of Earnings Per Share, Basic and Diluted | Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 Numerator: Net income $ 261,209 $ 123,630 $ 55,178 Denominator: Weighted average shares outstanding 63,329 63,197 62,503 Effect of dilutive securities 3,232 2,796 2,732 Weighted average diluted shares 66,561 65,993 65,235 Basic earnings per share $ 4.12 $ 1.96 $ 0.88 Diluted earnings per share $ 3.92 $ 1.87 $ 0.85 |
Schedule of ASU 2016-09 Early Adoption Impact | Three Months Ended Six Months Ended June 25, 2016 September 24, 2016 September 24, 2016 As reported As adjusted As reported As adjusted As reported As adjusted (in thousands, except per share data) Consolidated Condensed Statements of Income: Income tax expense $ 5,805 $ 3,598 $ 24,608 $ 16,634 $ 30,413 $ 20,232 Net income $ 15,864 $ 18,071 $ 78,065 $ 86,039 $ 93,929 $ 104,110 Basic net income per share $ 0.25 $ 0.29 $ 1.24 $ 1.37 $ 1.50 $ 1.66 Diluted net income per share $ 0.24 $ 0.27 $ 1.19 $ 1.30 $ 1.43 $ 1.58 Weighted average shares used in diluted net income per share computation 65,232 65,723 65,717 66,410 65,521 66,101 Consolidated Condensed Statements of Cash Flows: Net cash provided by operating activities $ 12,226 $ 12,756 $ 19,990 $ 24,091 $ 32,216 $ 36,847 Net cash used in financing activities $ (13,140) $ (13,670) $ (13,859) $ (17,960) $ (26,999) $ (31,630) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Marketable Securities [Abstract] | |
Schedule of Available-for-sale Securities | Estimated Gross Gross Fair Value Amortized Unrealized Unrealized (Net Carrying As of March 25, 2017 Cost Gains Losses Amount) Corporate debt securities $ 33,350 $ - $ (20) $ 33,330 Commercial paper 66,518 - (35) 66,483 Total securities $ 99,868 $ - $ (55) $ 99,813 The Company’s specifically identified gross unrealized losses of $ 55 thousand relates to 18 different securities with a total amortized cost of approximately $ 99.9 million at March 25, 2017. Four securities had been in a continuous unrealized loss position for more than 12 months as of March 25, 2017. The gross unrealized loss on these securities was less than one tenth of one percent of the position value. Because the Company does not intend to sell the investments at a loss and it is not more likely than not that the Company will be required to sell the investments before recovery of its amortized cost basis, the Company did not consider the investment in these securities to be other-than-temporarily impaired at March 25, 2017. Estimated Gross Gross Fair Value Amortized Unrealized Unrealized (Net Carrying As of March 26, 2016 Cost Gains Losses Amount) Corporate debt securities $ 81,310 $ 3 $ (100) $ 81,213 |
Schedule of Cost and Estimated Fair Value of Available-for-sale Securities by Contractual Maturity | March 25, 2017 March 26, 2016 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Within 1 year $ 99,868 $ 99,813 $ 60,603 $ 60,582 After 1 year - - 20,707 20,631 Total $ 99,868 $ 99,813 $ 81,310 $ 81,213 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities | Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market funds $ 313,982 $ - $ - $ 313,982 Available-for-sale securities Corporate debt securities $ - $ 33,330 $ - $ 33,330 Commercial paper - 66,483 - 66,483 $ - $ 99,813 $ - $ 99,813 Liabilities: Other accrued liabilities Contingent consideration - short-term $ - $ - $ 4,695 $ 4,695 The following summarizes the fair value of our financial instruments at March 26, 2016 (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 79,256 $ - $ - $ 79,256 Available-for-sale securities Corporate debt securities $ - $ 81,213 $ - $ 81,213 Liabilities: Other accrued liabilities Contingent consideration - short-term $ - $ - $ 4,709 $ 4,709 Other long-term liabilities Contingent consideration - long-term $ - $ - $ 4,359 $ 4,359 |
Schedule of Fair Value of Financial Instruments Contingent Consideration | Maximum Value if Milestones Achieved (in thousands) Estimated Discount Rate (%) Fair Value (in thousands) Tranche A - 18 month earn out period $ 5,000 7.0 $ - Tranche B - 30 month earn out period 5,000 7.7 4,695 $ 10,000 $ 4,695 |
Schedule of Fair Value of Contingent Consideration Rollforward | Fiscal year ended March 25, 2017 (in thousands) Beginning balance $ 9,068 Adjustment to estimates (research and development expense) (3,579) Payout of Tranche A contingent consideration (1,213) Fair value charge recognized in earnings (research and development expense) 419 Ending balance $ 4,695 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Accounts Receivable, Net [Abstract] | |
Components of Accounts Receivable, Net | March 25, March 26, 2017 2016 Gross accounts receivable $ 120,408 $ 89,007 Allowance for doubtful accounts (434) (475) Accounts receivable, net $ 119,974 $ 88,532 |
Changes in the Allowance for Doubtful Accounts | Balance, March 29, 2014 $ (229) Bad debt expense, net of recoveries (127) Balance, March 28, 2015 (356) Bad debt expense, net of recoveries (119) Balance, March 26, 2016 (475) Bad debt expense, net of recoveries 41 Balance, March 25, 2017 $ (434) |
Intangibles, Net And Goodwill (
Intangibles, Net And Goodwill (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Intangibles, Net And Goodwill [Abstract] | |
Schedule of Gross Carrying Amount and Amortization of Intangible Assets | March 25, 2017 March 26, 2016 Intangible Category / Weighted-Average Amortization period (in years) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Core technology (a) $ 1,390 $ (1,390) $ 1,390 $ (1,390) License agreement (a) 440 (440) 440 (440) Existing technology (6.1) 117,975 (53,960) 117,975 (32,873) In-process research & development ("IPR&D") (7.3) 72,750 (24,245) 72,750 (14,082) Trademarks and tradename (10.0) 3,037 (2,208) 3,037 (2,076) Customer relationships (10.0) 15,381 (4,191) 15,381 (2,655) Backlog (a) 220 (220) 220 (147) Non-compete agreements (a) 470 (470) 470 (209) Technology licenses (3.1) 24,540 (13,891) 16,661 (11,620) Total $ 236,203 $ (101,015) $ 228,324 $ (65,492) |
Schedule of Estimated Aggregate Amortization Expense for Intangibles | For the year ended March 31, 2018 $ 37,563 For the year ended March 30, 2019 $ 35,660 For the year ended March 28, 2020 $ 26,499 For the year ended March 27, 2021 $ 15,895 For the year ended March 26, 2022 $ 12,145 Thereafter $ 8,523 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Postretirement Benefit Plans [Abstract] | |
Schedule of Net Funded Status | March 25, March 26, 2017 2016 Change in benefit obligation: Beginning balance $ 23,968 $ 27,091 Expenses - 15 Interest cost 759 821 Plan settlements (4,517) - Benefits paid and expenses (264) (1,095) Change in foreign currency exchange rate (2,763) (1,221) Actuarial (gain) / loss 3,940 (1,643) Total benefit obligation ending balance 21,123 23,968 Change in plan assets: Beginning balance 25,688 26,735 Actual return on plan assets 3,933 (155) Employer contributions 990 1,409 Plan settlements (5,243) - Change in foreign currency exchange rate (2,961) (1,206) Benefits paid and expenses (264) (1,095) Fair value of plan assets ending balance 22,143 25,688 Funded status of Scheme at end of year $ 1,020 $ 1,720 |
Schedule of Net Benefit Costs | Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 Expenses $ - $ 15 $ 16 Interest cost 759 821 544 Expected return on plan assets (1,126) (1,212) (792) Settlement (gain) loss 1,063 - - Amortization of actuarial (gain) loss (89) 49 - $ 607 $ (327) $ (232) |
Schedule of Assumptions | 2017 2016 2015 Discount rate 3.60 % 3.20 % 4.00 % Expected long-term return on plan assets 4.93 % 4.65 % 5.36 % |
Schedule of Fair Value of Pension Assets | Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Level 1 Level 2 Level 3 Total Plan Assets: Cash $ 160 $ - $ - $ 160 Pension funds - 21,983 - 21,983 $ 160 $ 21,983 $ - $ 22,143 The table below sets forth the fair value of our plan assets as of March 26, 2016 , (in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Level 1 Level 2 Level 3 Total Plan Assets: Cash $ 42 $ - $ - $ 42 Pension funds - 25,646 - 25,646 $ 42 $ 25,646 $ - $ 25,688 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Fiscal Year 2017 Net actuarial loss $ (79) Accumulated other comprehensive income, before tax $ (79) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | Fiscal Year 2018 Transition (asset) obligation $ - Prior service cost - Actuarial loss (gain) (37) |
Schedule of Defined Benefit Plans Disclosures | Benefit Payments 2018 $ 266 2019 411 2020 481 2021 472 2022 415 Thereafter 2,765 |
Schedule of Allocation of Plan Assets | Actual Allocation 2017 2016 Equity securities 33 % 32 % Corporate bonds 48 47 Diversified growth 19 21 Cash - - Total 100 % 100 % |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | Change Approximate impact on liabilities Decrease discount rate by 0.1%, per year 2% increase Increase inflation linked assumptions by 0.1%, per year 2% increase (of inflation-linked liabilities) Increase life expectancy by 1 year 2% increase |
Equity Compensation (Tables)
Equity Compensation (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Summary of Activity in Total Stock Available for Grant | Shares Available for Grant Balance, March 29, 2014 3,547 Shares added 3,300 Granted (3,181) Forfeited 230 Balance, March 28, 2015 3,896 Shares added 4,900 Granted (2,676) Forfeited 167 Balance, March 26, 2016 6,287 Shares added - Granted (1,719) Forfeited 124 Balance, March 25, 2017 4,692 |
Summary of Effect of Stock-Based Compensation on Cost of Goods Sold | Fiscal Year 2017 2016 2015 Cost of sales $ 1,071 $ 1,145 $ 747 Research and development 21,186 17,173 11,222 Sales, general and administrative 17,336 15,188 25,580 Effect on pre-tax income 39,593 33,506 37,549 Income Tax Benefit (12,482) (10,306) (11,467) Total share-based compensation expense (net of taxes) 27,111 23,200 26,082 Share-based compensation effects on basic earnings per share $ 0.43 $ 0.37 $ 0.42 Share-based compensation effects on diluted earnings per share 0.41 0.35 0.40 |
Schedule of Fair Value of Stock Option Grants | March 25, 2017 March 26, 2016 March 28, 2015 Expected stock price volatility 47.66 % 40.13 - 45.07 % 38.79 - 42.12 % Risk-free interest rate 1.13 % 0.94 - 1.05 % 0.49 - 0.91 % Expected term (in years) 2.79 2.72 - 2.97 2.15 - 2.87 |
Schedule of Stock Option Activity | Outstanding Options Weighted Average Number Exercise Price Balance, March 29, 2014 3,725 $ 12.42 Options granted 310 21.69 Options exercised (696) 7.47 Options forfeited (5) 19.94 Options expired (1) 4.65 Balance, March 28, 2015 3,333 $ 14.31 Options granted 387 31.39 Options exercised (773) 8.46 Options forfeited - - Options expired (22) 35.41 Balance, March 26, 2016 2,925 $ 17.96 Options granted 215 54.65 Options exercised (1,382) 11.87 Options forfeited - - Options expired - - Balance, March 25, 2017 1,758 $ 27.25 |
Summary of Outstanding Options Vesting, Expected to Vest, or Exercisable | Weighted Weighted Average Number of Average Remaining Contractual Aggregate Options Exercise price Term (years) Intrinsic Value Vested and expected to vest 1,757 $ 27.24 6.40 $ 57,674 Exercisable 1,128 $ 21.77 5.18 $ 43,196 |
Summary of Outstanding and Exercisable Options | Options Outstanding Options Exercisable Weighted Average Remaining Weighted Weighted Contractual Life Average Exercise Number Average Range of Exercise Prices Number (years) Price Exercisable Exercise Price $2.90 - $15.41 371 3.33 $ 11.01 371 $ 11.01 $16.21 - $20.37 328 5.81 18.63 242 18.02 $20.40 - $24.14 265 6.48 23.29 203 23.30 $31.25 - $31.25 331 8.61 31.25 91 31.25 $32.29 - $38.99 248 5.97 38.00 221 38.60 $54.65 - $54.65 215 9.61 54.65 - - 1,758 6.40 $ 27.25 1,128 $ 21.77 |
Summary of Restricted Stock Units Vesting or Expected to Vest | Weighted Weighted Average Average Remaining Contractual Shares Fair Value Term (years) Expected to vest 2,870 $ 34.64 1.43 |
Summary of Monte Carlo Simulation Assumptions for Market Stock Units | Year Ended March 25, March 26, 2017 2016 Expected stock price volatility 47.66 % 45.07 % Risk-free interest rate 0.98 % 1.16 % Expected term (in years) 3.00 3.00 |
Schedule of Market Stock Units Activity | Weighted Average Shares Fair Value March 29, 2014 - $ - Granted 35 22.00 Vested - - Forfeited - - March 28, 2015 35 $ 22.00 Granted 90 39.86 Vested - - Forfeited - - March 26, 2016 125 $ 34.85 Granted 55 75.58 Vested - - Forfeited - - March 25, 2017 180 $ 47.30 |
Summary of Outstanding MSUs Expected to Vest | Weighted Weighted Average Average Remaining Contractual Shares Fair Value Term (years) Expected to vest 171 $ 46.89 1.69 |
Restricted Stock Units (RSUs) [Member] | |
Summary of Restricted Stock and Restricted Stock Units Activity | Weighted Average Shares Fair Value March 29, 2014 2,309 $ 25.26 Granted 1,887 22.04 Vested (1,224) 19.52 Forfeited (151) 26.17 March 28, 2015 2,821 25.57 Granted 1,437 31.51 Vested (992) 32.48 Forfeited (103) 24.75 March 26, 2016 3,163 26.14 Granted 947 52.40 Vested (1,032) 24.67 Forfeited (83) 28.40 March 25, 2017 2,995 $ 34.91 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Rental Commitments | Facilities Subleases Net Facilities Commitments Equipment and Other Commitments Total Commitments 2018 $ 7,074 $ 386 $ 6,688 $ 67 $ 6,755 2019 10,354 391 9,963 115 10,078 2020 9,811 266 9,545 110 9,655 2021 9,580 245 9,335 110 9,445 2022 9,313 251 9,062 110 9,172 Thereafter 39,071 859 38,212 432 38,644 Total minimum lease payment $ 85,203 $ 2,398 $ 82,805 $ 944 $ 83,749 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Summary of Changes in the Components of Accumulated Other Comprehensive Loss | Unrealized Gains Actuarial Gains Foreign (Losses) on (Losses) on Currency Securities Pension Plan Total Balance, March 28, 2015 $ (770) $ (47) $ (1,293) $ (2,110) Current period foreign exchange translation 294 - - 294 Current period marketable securities activity - (24) - (24) Current period actuarial gain/loss activity - - 2,660 2,660 Current period amortization of actuarial loss - - 49 49 Tax effect - 9 (546) (537) Balance, March 26, 2016 (476) (62) 870 332 Current period foreign exchange translation (826) - - (826) Current period marketable securities activity - 47 - 47 Current period actuarial gain/loss activity - - (79) (79) Current period amortization of actuarial loss - - (89) (89) Tax effect - (16) 58 42 Balance, March 25, 2017 $ (1,302) $ (31) $ 760 $ (573) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Income Taxes [Abstract] | |
Summary of Income Before Income Taxes | Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 U.S. $ 137,654 $ 108,133 $ 133,295 Non-U.S. 177,393 67,856 (41,746) $ 315,047 $ 175,989 $ 91,549 |
Summary of Provision (Benefit) for Income Taxes | Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 Current: U.S. $ 28,940 $ 28,313 $ 42,165 Non-U.S. 7,234 703 445 Total current tax provision $ 36,174 $ 29,016 $ 42,610 Deferred: U.S. 2,576 18,242 2,136 Non-U.S. 15,088 5,101 (8,375) Total deferred tax provision (benefit) 17,664 23,343 (6,239) Total tax provision $ 53,838 $ 52,359 $ 36,371 |
Summary of Provision (Benefit) for Income Taxes, Statutory Federal Rate Pretax Income Reconciliation | Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 U.S. federal statutory rate 35.0 35.0 35.0 Foreign income taxed at different rates (8.6) (0.6) 7.3 Research and development tax credits (1.8) (5.6) (3.6) Stock based compensation (7.3) - - Nondeductible expenses - 0.1 2.3 Other (0.2) 0.9 (1.3) Effective tax rate 17.1 29.8 39.7 |
Significant Components of Deferred Tax Assets and Liabilities | March 25, March 26, 2017 2016 Deferred tax assets: Accrued expenses and allowances $ 9,002 $ 3,761 Net operating loss carryforwards 6,294 24,592 Research and development tax credit carryforwards 13,977 9,649 Stock based compensation 17,356 16,071 Other 9,141 9,976 Total deferred tax assets $ 55,770 $ 64,049 Valuation allowance for deferred tax assets (12,570) (10,773) Net deferred tax assets $ 43,200 $ 53,276 Deferred tax liabilities: Depreciation and amortization $ 13,837 $ 13,607 Acquisition intangibles 16,301 21,844 Total deferred tax liabilities $ 30,138 $ 35,451 Total net deferred tax assets $ 13,062 $ 17,825 |
Reconciliation of Unrecognized Tax Benefits | March 25, March 26, 2017 2016 Beginning balance $ 18,796 $ - Additions based on tax positions related to the current year 12,127 12,592 Additions based on tax positions related to prior years - 6,204 Reductions based on tax positions related to the prior years (65) - Ending balance $ 30,858 $ 18,796 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Segment Information [Abstract] | |
Schedule of Segment Revenue from Product Lines | Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 Portable Audio Products $ 1,373,848 $ 989,101 $ 740,301 Non-Portable Audio and Other Products 165,092 180,150 176,267 $ 1,538,940 $ 1,169,251 $ 916,568 |
Schedule of Sales by Geographic Location Based on the Sales Office Location | Fiscal Years Ended March 25, March 26, March 28, 2017 2016 2015 United States $ 36,024 $ 73,889 $ 31,977 European Union (excluding United Kingdom) 9,809 12,745 13,629 United Kingdom 5,741 5,687 2,805 China 1,249,325 823,843 728,413 Hong Kong 181,283 10,647 15,087 Japan 11,819 27,898 14,353 South Korea 2,403 193,388 69,327 Taiwan 14,426 9,249 15,272 Other Asia 16,585 8,657 10,991 Other non-U.S. countries 11,525 3,248 14,714 Total consolidated sales $ 1,538,940 $ 1,169,251 $ 916,568 |
Schedule of Property, Plant, and Equipment, Net, by Geographic Location | Fiscal Years Ended March 25, March 26, 2017 2016 United States $ 120,212 $ 125,674 European Union (excluding United Kingdom) 793 253 United Kingdom 44,981 34,632 China 565 483 Hong Kong 5 1 Japan 243 260 South Korea 202 110 Taiwan 231 180 Other Asia 50 29 Other non-U.S. countries 857 1,034 Total consolidated property, plant and equipment, net $ 168,139 $ 162,656 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Mar. 25, 2017 | |
Quarterly Results (Unaudited) [Abstract] | |
Schedule of Unaudited Quarterly Statement of Operations Data | Fiscal Year 2017 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Net sales $ 259,428 $ 428,619 $ 523,029 $ 327,864 Gross profit 126,685 211,699 255,152 164,279 Net income 18,071 86,039 122,041 35,058 Basic income per share $ 0.29 $ 1.37 $ 1.91 $ 0.55 Diluted income per share 0.27 1.30 1.83 0.52 Fiscal Year 2016 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Net sales $ 282,633 $ 306,756 $ 347,863 $ 231,999 Gross profit 132,454 142,221 164,911 115,254 Net income 33,354 34,880 41,384 14,012 Basic income per share $ 0.53 $ 0.55 $ 0.65 $ 0.22 Diluted income per share 0.50 0.53 0.63 0.21 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Narrative) (Details) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 25, 2017USD ($) | Dec. 24, 2016USD ($) | Sep. 24, 2016USD ($) | Jun. 25, 2016USD ($) | Mar. 25, 2017USD ($)customershares | Mar. 26, 2016USD ($)shares | Mar. 28, 2015USD ($)shares | |
Inventory write-down | $ 6,700 | $ 4,800 | |||||
Impairment of Real Estate | 9,842 | ||||||
Depreciation and amortization expense on property, plant and equipment | 26,100 | 22,300 | $ 15,400 | ||||
Impairment of goodwill | 0 | 0 | 0 | ||||
Advertising expense | $ 1,700 | $ 1,600 | $ 1,100 | ||||
Weighted outstanding options excluded from diluted calculation | shares | 389 | 468 | 718 | ||||
Share based compensation, excess tax benefits, amount | $ 1,900 | $ 10,800 | $ 8,000 | $ 2,200 | $ 22,900 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 5,649 | $ 5,649 | |||||
Maximum [Member] | |||||||
Intangible assets, useful life | 10 years | ||||||
Acquired intangible assets, useful life | 15 years | ||||||
Share-based compensation, vesting period | 4 years | ||||||
Minimum [Member] | |||||||
Intangible assets, useful life | 1 year | ||||||
Acquired intangible assets, useful life | 1 year | ||||||
Share-based compensation, vesting period | 0 years | ||||||
Buildings [Member] | Maximum [Member] | |||||||
Estimated useful life | 39 years | ||||||
Capitalized Software [Member] | |||||||
Estimated useful life | 3 years | ||||||
Furniture, Fixtures, Machinery and Equipment [Member] | Maximum [Member] | |||||||
Estimated useful life | 10 years | ||||||
Furniture, Fixtures, Machinery and Equipment [Member] | Minimum [Member] | |||||||
Estimated useful life | 3 years | ||||||
Capitalized Enterprise Resource Planning Software [Member] | |||||||
Estimated useful life | 10 years | ||||||
Property, Plant and Equipment [Member] | Maximum [Member] | |||||||
Estimated useful life | 39 years | ||||||
Property, Plant and Equipment [Member] | Minimum [Member] | |||||||
Estimated useful life | 3 years | ||||||
Hongfujin Precision [Member] | Accounts Receivable [Member] | |||||||
Concentration risk, percentage | 20.00% | 23.00% | |||||
Protek [Member] | Accounts Receivable [Member] | |||||||
Concentration risk, percentage | 15.00% | 11.00% | |||||
Jabil Circuits [Member] | Accounts Receivable [Member] | |||||||
Concentration risk, percentage | 13.00% | ||||||
Apple, Inc. [Member] | Sales Revenue, Net [Member] | |||||||
Concentration risk, percentage | 79.00% | 66.00% | 72.00% | ||||
Samsung Electronics [Member] | Sales Revenue, Net [Member] | |||||||
Concentration risk, percentage | 15.00% | ||||||
Samsung Electronics [Member] | Accounts Receivable [Member] | |||||||
Concentration risk, percentage | 23.00% | ||||||
Ten Largest Customers [Member] | |||||||
Number of customers responsible for sales concentration | customer | 10 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Summary of Significant Accounting Policies [Abstract] | ||
Work in process | $ 83,332 | $ 67,827 |
Finished goods | 84,563 | 74,188 |
Total inventories | $ 167,895 | $ 142,015 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Components of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 290,096 | $ 252,173 |
Less: Accumulated depreciation and amortization | (121,957) | (89,517) |
Property, plant and equipment, net | 168,139 | 162,656 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 26,379 | 26,379 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 74,266 | 73,513 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 14,231 | 13,226 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 4,355 | 2,637 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 123,054 | 105,880 |
Capitalized Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 24,839 | 25,127 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 22,972 | $ 5,411 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Calculation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Sep. 24, 2016 | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Numerator: | ||||||||||||
Net income | $ 35,058 | $ 122,041 | $ 86,039 | $ 18,071 | $ 14,012 | $ 41,384 | $ 34,880 | $ 33,354 | $ 104,110 | $ 261,209 | $ 123,630 | $ 55,178 |
Denominator: | ||||||||||||
Basic weighted average common shares outstanding | 63,329 | 63,197 | 62,503 | |||||||||
Effect of dilutive securities | 3,232 | 2,796 | 2,732 | |||||||||
Weighted average diluted shares | 66,410 | 65,723 | 66,101 | 66,561 | 65,993 | 65,235 | ||||||
Basic earnings per share | $ 0.55 | $ 1.91 | $ 1.37 | $ 0.29 | $ 0.22 | $ 0.65 | $ 0.55 | $ 0.53 | $ 1.66 | $ 4.12 | $ 1.96 | $ 0.88 |
Diluted earnings per share | $ 0.52 | $ 1.83 | $ 1.30 | $ 0.27 | $ 0.21 | $ 0.63 | $ 0.53 | $ 0.50 | $ 1.58 | $ 3.92 | $ 1.87 | $ 0.85 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Schedule of ASU 2016-09 Early Adoption Impact) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Sep. 24, 2016 | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Provision (benefit) for income taxes | $ 16,634 | $ 3,598 | $ 20,232 | $ 53,838 | $ 52,359 | $ 36,371 | ||||||
Net income | $ 35,058 | $ 122,041 | $ 86,039 | $ 18,071 | $ 14,012 | $ 41,384 | $ 34,880 | $ 33,354 | $ 104,110 | $ 261,209 | $ 123,630 | $ 55,178 |
Basic earnings per share | $ 0.55 | $ 1.91 | $ 1.37 | $ 0.29 | $ 0.22 | $ 0.65 | $ 0.55 | $ 0.53 | $ 1.66 | $ 4.12 | $ 1.96 | $ 0.88 |
Diluted earnings per share | $ 0.52 | $ 1.83 | $ 1.30 | $ 0.27 | $ 0.21 | $ 0.63 | $ 0.53 | $ 0.50 | $ 1.58 | $ 3.92 | $ 1.87 | $ 0.85 |
Diluted weighted average common shares outstanding | 66,410 | 65,723 | 66,101 | 66,561 | 65,993 | 65,235 | ||||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | $ 24,091 | $ 12,756 | $ 36,847 | $ 369,751 | $ 149,046 | $ 163,477 | ||||||
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | (17,960) | (13,670) | (31,630) | $ (117,513) | $ (76,897) | $ 205,475 | ||||||
As Reported [Member] | ||||||||||||
Provision (benefit) for income taxes | 24,608 | 5,805 | 30,413 | |||||||||
Net income | $ 78,065 | $ 15,864 | $ 93,929 | |||||||||
Basic earnings per share | $ 1.24 | $ 0.25 | $ 1.50 | |||||||||
Diluted earnings per share | $ 1.19 | $ 0.24 | $ 1.43 | |||||||||
Diluted weighted average common shares outstanding | 65,717 | 65,232 | 65,521 | |||||||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | $ 19,990 | $ 12,226 | $ 32,216 | |||||||||
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | $ (13,859) | $ (13,140) | $ (26,999) |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) $ in Thousands | Mar. 25, 2017USD ($)security | Mar. 26, 2016USD ($)security |
Marketable Securities [Abstract] | ||
Gross Unrealized Losses | $ (55) | $ (100) |
Amortized cost on available for sale securities held at gross unrealized loss | $ 99,900 | $ 64,700 |
Number of securities | security | 18 | 21 |
Marketable Securities (Schedule
Marketable Securities (Schedule of Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value (Net Carrying Amount) | $ 99,813 | $ 81,213 |
Gross Unrealized Losses | (55) | (100) |
Amortized Cost | 99,868 | 81,310 |
Corporate Debt Securities - U.S. [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value (Net Carrying Amount) | 33,330 | 81,213 |
Gross Unrealized Losses | (20) | (100) |
Gross Unrealized Gains | 3 | |
Amortized Cost | 33,350 | $ 81,310 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value (Net Carrying Amount) | 66,483 | |
Gross Unrealized Losses | (35) | |
Amortized Cost | $ 66,518 |
Marketable Securities (Schedu47
Marketable Securities (Schedule of Cost and Estimated Fair Value of Available-for-sale Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Marketable Securities [Abstract] | ||
Within 1 year, Amortized Cost | $ 99,868 | $ 60,603 |
After 1 year, Amortized Cost | 20,707 | |
Within 1 year, Estimated Fair Value | 99,813 | 60,582 |
After 1 year, Estimated Fair Value | 20,631 | |
Amortized Cost | 99,868 | 81,310 |
Estimated Fair Value | $ 99,813 | $ 81,213 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments (Schedule of Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | $ 22,143 | $ 25,688 |
Fair Value, Net Asset (Liability) | 4,695 | 9,068 |
Other Accrued Liability - Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | 4,695 | 4,709 |
Other Long-Term Liability - Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | 4,359 | |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 160 | 42 |
Significant Other Observable Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 21,983 | 25,646 |
Significant Unobservable Inputs Level 3 [Member] | Other Accrued Liability - Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | 4,695 | 4,709 |
Significant Unobservable Inputs Level 3 [Member] | Other Long-Term Liability - Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | 4,359 | |
Cash Equivalents [Member] | Money-Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 313,982 | 79,256 |
Cash Equivalents [Member] | Money-Market Funds [Member] | Quoted Prices In Active Markets For Identical Assets Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 313,982 | 79,256 |
Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 99,813 | |
Available-for-sale Securities [Member] | Significant Other Observable Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 99,813 | |
Available-for-sale Securities [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 33,330 | 81,213 |
Available-for-sale Securities [Member] | Corporate debt securities [Member] | Significant Other Observable Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 33,330 | $ 81,213 |
Available-for-sale Securities [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 66,483 | |
Available-for-sale Securities [Member] | Commercial Paper [Member] | Significant Other Observable Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | $ 66,483 |
Fair Value of Financial Instr49
Fair Value of Financial Instruments (Schedule of Fair Value of Financial Instruments - Contingent Consideration) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 25, 2017 | Mar. 26, 2016 | |
Fair Value, Net Asset (Liability) | $ 4,695 | $ 9,068 |
Tranche A [Member] | ||
Fair Value Inputs, Discount Rate | 7.00% | |
Tranche B [Member] | ||
Fair Value Inputs, Discount Rate | 7.70% | |
Fair Value, Net Asset (Liability) | $ 4,695 | |
Weighted Average [Member] | ||
Fair Value, Net Asset (Liability) | 10,000 | |
Weighted Average [Member] | Tranche A [Member] | ||
Fair Value, Net Asset (Liability) | 5,000 | |
Weighted Average [Member] | Tranche B [Member] | ||
Fair Value, Net Asset (Liability) | $ 5,000 |
Fair Value of Financial Instr50
Fair Value of Financial Instruments (Schedule of Fair Value of Contingent Consideration Rollforward) (Details) $ in Thousands | 12 Months Ended |
Mar. 25, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |
Beginning balance | $ 9,068 |
Adjustment to estimates (research and development expense) | (3,579) |
Payout of Tranche A contingent consideration | (1,213) |
Fair value charge recognized in earnings (research and development expense) | 419 |
Ending balance | $ 4,695 |
Accounts Receivable, Net (Compo
Accounts Receivable, Net (Components of Accounts Receivable, Net) (Details) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 |
Accounts Receivable, Net [Abstract] | ||||
Gross accounts receivable | $ 120,408 | $ 89,007 | ||
Allowance for doubtful accounts | (434) | (475) | $ (356) | $ (229) |
Accounts receivable, net | $ 119,974 | $ 88,532 |
Accounts Receivable, Net (Chang
Accounts Receivable, Net (Changes in the Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Accounts Receivable, Net [Abstract] | |||
Beginning balance | $ (475) | $ (356) | $ (229) |
Bad debt expense, net of recoveries | 41 | (119) | (127) |
Ending balance | $ (434) | $ (475) | $ (356) |
Intangibles, Net And Goodwill53
Intangibles, Net And Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Intangibles, Net And Goodwill [Abstract] | |||
Finite-Lived Intangible Assets, Net | $ 135,188 | $ 162,832 | |
Goodwill | 286,767 | 287,518 | |
Amortization expense for intangibles | $ 37,400 | $ 35,700 | $ 18,200 |
Intangibles, Net And Goodwill54
Intangibles, Net And Goodwill (Schedule of Gross Carrying Amount and Amortization of Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 236,203 | $ 228,324 |
Accumulated Amortization | (101,015) | (65,492) |
Core Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 1,390 | 1,390 |
Accumulated Amortization | (1,390) | (1,390) |
License Agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 440 | 440 |
Accumulated Amortization | (440) | (440) |
Existing Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 117,975 | 117,975 |
Accumulated Amortization | (53,960) | (32,873) |
In Process Research Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 72,750 | 72,750 |
Accumulated Amortization | (24,245) | (14,082) |
Trademarks and Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,037 | 3,037 |
Accumulated Amortization | (2,208) | (2,076) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 15,381 | 15,381 |
Accumulated Amortization | (4,191) | (2,655) |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 220 | 220 |
Accumulated Amortization | (220) | (147) |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 470 | 470 |
Accumulated Amortization | (470) | (209) |
Technology Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 24,540 | 16,661 |
Accumulated Amortization | $ (13,891) | $ (11,620) |
Intangibles, Net And Goodwill55
Intangibles, Net And Goodwill (Schedule of Estimated Aggregate Amortization Expense for Intangibles) (Details) $ in Thousands | Mar. 25, 2017USD ($) |
Intangibles, Net And Goodwill [Abstract] | |
Estimated aggregate amortization expense for the year ended March 31, 2018 | $ 37,563 |
Estimated aggregate amortization expense for the year ended March 30, 2019 | 35,660 |
Estimated aggregate amortization expense for the year ended March 28, 2020 | 26,499 |
Estimated aggregate amortization expense for the year ended March 27, 2021 | 15,895 |
Estimated aggregate amortization expense for the year ended March 26, 2022 | 12,145 |
Thereafter | $ 8,523 |
Revolving Line of Credit (Narra
Revolving Line of Credit (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 25, 2017 | Mar. 26, 2016 | |
Borrowing limit under the revolving credit facility | $ 250,000 | |
Line of credit facility leverage ratio covenant | 3.00% | |
Line of Credit Facility, Fixed Charges Ratio | 1.25% | |
Line of Credit Facility, Amount Outstanding | $ 60,000 | $ 160,439 |
$300M Amended Wells Line of Credit [Member] | ||
Borrowing limit under the revolving credit facility | $ 300,000 | |
Minimum [Member] | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |
Maximum [Member] | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | |
Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility, Interest Rate Description | 0% | |
Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility, Interest Rate Description | .50% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Line of Credit Facility, Interest Rate Description | 1.25% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Line of Credit Facility, Interest Rate Description | 2.00% |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Thousands | 12 Months Ended |
Mar. 28, 2015USD ($) | |
Restructuring Costs [Abstract] | |
Restructuring and other, net | $ 1,455 |
Postretirement Benefit Plans (D
Postretirement Benefit Plans (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 25, 2016USD ($) | Mar. 25, 2017USD ($) | Mar. 26, 2016USD ($) | Mar. 28, 2015USD ($) | |
Accrued salaries and benefits | $ 40,190 | $ 21,239 | ||
Number of Pension Plan Participants Offered ETV | 49 | |||
Number of Pension Plan Participants Accepting ETV | 9 | |||
Pension Contributions | $ 500 | $ 500 | ||
ETV pension expense | $ 400 | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.70% | 3.60% | 3.20% | |
Maximum employer contribution matching percentage | 50.00% | |||
Percentage of employees' annual contribution that qualifies for employer contribution matching | 8.00% | |||
Employee matching contribution expense | $ 5,500 | $ 4,300 | $ 2,500 | |
Pension Plan [Member] | ||||
Accrued salaries and benefits | $ 500 |
Postretirement Benefit Plans (S
Postretirement Benefit Plans (Schedule of Benefit Obligation, Fair Value of Plan Assets and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Postretirement Benefit Plans [Abstract] | |||
Defined Benefit Plan, Benefit Obligation, Beginning Balance | $ 23,968 | $ 27,091 | |
Expenses | 15 | $ 16 | |
Interest cost | 759 | 821 | 544 |
Plan settlements | (4,517) | ||
Benefits paid and expenses | (264) | (1,095) | |
Change in foreign currency exchange rate | (2,763) | (1,221) | |
Actuarial (gain) / loss | 3,940 | (1,643) | |
Defined Benefit Plan, Benefit Obligation, Ending Balance | 21,123 | 23,968 | 27,091 |
Defined Benefit Plan, Fair Value of Plan Assets, Beginning Balance | 25,688 | 26,735 | |
Actual return on plan assets | 3,933 | (155) | |
Employer contributions | 990 | 1,409 | |
Plan settlements | (5,243) | ||
Change in foreign currency exchange rate | (2,961) | (1,206) | |
Defined Benefit Plan, Fair Value of Plan Assets, Ending Balance | 22,143 | 25,688 | 26,735 |
Funded status of Scheme at end of year | 1,020 | 1,720 | |
Net Periodic Benefit Cost, Total | $ 607 | $ (327) | $ (232) |
Postretirement Benefit Plans 60
Postretirement Benefit Plans (Schedule of Net Periodic Pension Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Postretirement Benefit Plans [Abstract] | |||
Expenses | $ 15 | $ 16 | |
Interest cost | $ 759 | 821 | 544 |
Expected return on plan assets | (1,126) | (1,212) | (792) |
Settlement (gain) loss | 1,063 | ||
Amortization of actuarial loss | (89) | 49 | |
Defined Benefit Plan, Net Periodic Benefit Cost, Total | $ 607 | $ (327) | $ (232) |
Postretirement Benefit Plans (W
Postretirement Benefit Plans (Weighted-Average Assumptions Used in Net Periodic Benefit Costs) (Details) | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Postretirement Benefit Plans [Abstract] | |||
Discount rate | 3.60% | 3.20% | 4.00% |
Expected long-term return on plan assets | 4.93% | 4.65% | 5.36% |
Postretirement Benefit Plans 62
Postretirement Benefit Plans (Schedule of Fair Value of Pension Assets) (Details) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, Fair Value Disclosure | $ 22,143 | $ 25,688 |
Cash [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, Fair Value Disclosure | 160 | 42 |
Pension Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, Fair Value Disclosure | 21,983 | 25,646 |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, Fair Value Disclosure | 160 | 42 |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member] | Cash [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, Fair Value Disclosure | 160 | 42 |
Significant Other Observable Inputs Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, Fair Value Disclosure | 21,983 | 25,646 |
Significant Other Observable Inputs Level 2 [Member] | Pension Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, Fair Value Disclosure | $ 21,983 | $ 25,646 |
Postretirement Benefit Plans (A
Postretirement Benefit Plans (Amounts Recognized in AOCI Not Yet Recognized in Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Postretirement Benefit Plans [Abstract] | |||
Net actuarial gain | $ (79) | $ 2,660 | $ (1,625) |
Accumulated other comprehensive income, before tax | $ (79) |
Postretirement Benefit Plans 64
Postretirement Benefit Plans (Amount to be Amortized from Accumulated Other Comprehensive Income in Next Fiscal Year) (Details) $ in Thousands | 12 Months Ended |
Mar. 25, 2017USD ($) | |
Postretirement Benefit Plans [Abstract] | |
Transition (asset) obligation | $ 0 |
Prior service cost | 0 |
Actuarial loss (gain) | $ (37) |
Postretirement Benefit Plans 65
Postretirement Benefit Plans (Schedule of Future Benefit Payments) (Details) $ in Thousands | Mar. 25, 2017USD ($) |
Postretirement Benefit Plans [Abstract] | |
2,018 | $ 266 |
2,019 | 411 |
2,020 | 481 |
2,021 | 472 |
2,022 | 415 |
Thereafter | $ 2,765 |
Postretirement Benefit Plans 66
Postretirement Benefit Plans (Schedule of Allocation of Plan Assets) (Details) | Mar. 25, 2017 | Mar. 26, 2016 |
Equity securities [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 33.00% | 32.00% |
Corporate debt securities [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 48.00% | 47.00% |
Diversified growth [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 19.00% | 21.00% |
Equity Compensation (Narrative)
Equity Compensation (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 25, 2017USD ($)shares | Dec. 24, 2016USD ($) | Sep. 24, 2016USD ($) | Jun. 25, 2016USD ($) | Mar. 25, 2017USD ($)$ / sharesshares | Mar. 26, 2016USD ($)$ / sharesshares | Mar. 28, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock compensation expense | $ 39,593 | $ 33,506 | $ 37,549 | ||||
Share based compensation, excess tax benefits, amount | $ 1,900 | $ 10,800 | $ 8,000 | $ 2,200 | 22,900 | ||
Net amount received from exercise of stock options granted | $ 16,400 | $ 6,500 | $ 5,200 | ||||
Number, exercised | shares | 1,382,000 | 773,000 | 696,000 | ||||
Total intrinsic value of stock options exercised | $ 52,200 | $ 19,700 | $ 12,800 | ||||
Shares reserved for issuance under the Stock Option Plans | shares | 13,300,000 | 13,300,000 | |||||
Fair value of options that became vested during the period | $ 3,800 | $ 3,400 | 4,400 | ||||
Number of options exercisable | shares | 1,128,000 | 1,128,000 | 2,200,000 | ||||
Shares available for grant reduction ratio | 1.5 | ||||||
Number of Shares, Vested | shares | 1,000,000 | 1,000,000 | |||||
Shares withheld to satisfy tax withholding requirements | shares | 300,000 | 200,000 | |||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation costs related to equity incentive plans, weighted average recognition period | 1 year 3 months 15 days | ||||||
Restricted Stock Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value of awards vested | $ 86 | ||||||
Number of Shares, Vested | shares | 0 | 0 | |||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation costs related to equity incentive plans, weighted average recognition period | 1 year 5 months 12 days | ||||||
Vesting percentage | 100.00% | ||||||
Intrinsic value of awards outstanding | $ 179,900 | $ 179,900 | |||||
Fair value of awards vested | $ 25,500 | $ 32,200 | |||||
Number of Shares, Vested | shares | 1,032,000 | 992,000 | 1,224,000 | ||||
Payment to taxing authorities | $ 14,100 | $ 6,900 | |||||
Cash received from cash settled shares | $ 100 | 100 | |||||
Market Stock Unit (MSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, vesting period | 3 years | ||||||
Compensation costs related to equity incentive plans, weighted average recognition period | 1 year 8 months 12 days | ||||||
Intrinsic value of awards outstanding | 10,800 | $ 10,800 | |||||
RSAs RSUs and MSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock compensation expense | 35,500 | $ 30,300 | $ 34,000 | ||||
Options RSUs and MSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation costs related to equity incentive plans not yet recognized | $ 75,200 | $ 75,200 | |||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, vesting period | 4 years | ||||||
Maximum [Member] | Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, vesting period | 4 years | ||||||
Share based compensation, period from grant date options are exercisable | 10 years | ||||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, vesting period | 3 years | ||||||
Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, vesting period | 0 years | ||||||
Minimum [Member] | Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, vesting period | 0 years | ||||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, vesting period | 1 year | ||||||
Weighted Average Estimated Fair Value Using Black-Scholes Option Valuation Model [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value of stock options granted under the Black-Scholes valuation model | $ / shares | $ 22.84 | $ 12.58 | $ 7.26 |
Equity Compensation (Summary of
Equity Compensation (Summary of Activity in Total Stock Available for Grant) (Details) - shares shares in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Equity Compensation [Abstract] | |||
Shares available for grant, beginning balance | 6,287 | 3,896 | 3,547 |
Shares Available for Grant, Shares Added | 4,900 | 3,300 | |
Shares available for grant, granted | (1,719) | (2,676) | (3,181) |
Shares available for grant, forfeited | 124 | 167 | 230 |
Shares available for grant, ending balance | 4,692 | 6,287 | 3,896 |
Equity Compensation (Summary 69
Equity Compensation (Summary of Effect of Stock-Based Compensation on Cost of Goods Sold) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Effect on pre-tax income | $ 39,593 | $ 33,506 | $ 37,549 |
Income Tax Benefit | (12,482) | (10,306) | (11,467) |
Total share based compensation expense (net of taxes) | $ 27,111 | $ 23,200 | $ 26,082 |
Share based compensation effects on basic earnings per share | $ 0.43 | $ 0.37 | $ 0.42 |
Share based compensation effects on diluted earnings per share | $ 0.41 | $ 0.35 | $ 0.40 |
Cost of Sales [Member] | |||
Effect on pre-tax income | $ 1,071 | $ 1,145 | $ 747 |
Research and Development [Member] | |||
Effect on pre-tax income | 21,186 | 17,173 | 11,222 |
Selling, General and Administrative [Member] | |||
Effect on pre-tax income | $ 17,336 | $ 15,188 | $ 25,580 |
Equity Compensation (Schedule o
Equity Compensation (Schedule of Fair Value of Stock Option Grants) (Details) | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 47.66% | 45.07% | 42.12% |
Risk-free interest rate | 1.13% | 1.05% | 0.91% |
Expected term (in years) | 2 years 9 months 15 days | 2 years 11 months 19 days | 2 years 10 months 13 days |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 40.13% | 38.79% | |
Risk-free interest rate | 0.94% | 0.49% | |
Expected term (in years) | 2 years 8 months 19 days | 2 years 1 month 24 days |
Equity Compensation (Schedule71
Equity Compensation (Schedule of Stock Option Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Equity Compensation [Abstract] | |||
Number, beginning balance | 2,925 | 3,333 | 3,725 |
Number, granted | 215 | 387 | 310 |
Number, exercised | (1,382) | (773) | (696) |
Number, forfeited | (5) | ||
Number, expired | (22) | (1) | |
Number, ending balance | 1,758 | 2,925 | 3,333 |
Weighted average exercise price, beginning balance | $ 17.96 | $ 14.31 | $ 12.42 |
Weighted average exercise price, options granted | 54.65 | 31.39 | 21.69 |
Weighted average exercise price, options exercised | 11.87 | 8.46 | 7.47 |
Weighted average exercise price, options forfeited | 19.94 | ||
Weighted average exercise price, options expired | 35.41 | 4.65 | |
Weighted average exercise price, ending balance | $ 27.25 | $ 17.96 | $ 14.31 |
Equity Compensation (Summary 72
Equity Compensation (Summary of Outstanding Options Vesting, Expected to Vest, or Exercisable) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 25, 2017 | Mar. 26, 2016 | |
Equity Compensation [Abstract] | ||
Number of Options, Vested and expected to vest | 1,757 | |
Weighted Average Exercise Price, Vested and expected to vest | $ 27.24 | |
Weighted Average Remaining Contractual Term, Vested and expected to vest | 6 years 4 months 24 days | |
Aggregate Intrinsic Value, Vested and expected to vest | $ 57,674 | |
Number of Options, Exercisable | 1,128 | 2,200 |
Weighted Average Exercise Price, Exercisable | $ 21.77 | |
Weighted Average Remaining Contractual Term, Exercisable | 5 years 2 months 5 days | |
Aggregate Intrinsic Value, Exercisable | $ 43,196 |
Equity Compensation (Summary 73
Equity Compensation (Summary of Outstanding and Exercisable Options) (Details) shares in Thousands | 12 Months Ended |
Mar. 25, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number | shares | 1,758 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 4 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $ 27.25 |
Options Exercisable, Number Exercisable | shares | 1,128 |
Options Exercisable, Weighted Average Exercise Price | $ 21.77 |
$2.90 - $15.41 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 2.90 |
Range of Exercise Prices, upper limit | $ 15.41 |
Options Outstanding, Number | shares | 371 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 3 months 29 days |
Options Outstanding, Weighted Average Exercise Price | $ 11.01 |
Options Exercisable, Number Exercisable | shares | 371 |
Options Exercisable, Weighted Average Exercise Price | $ 11.01 |
$16.21 - $20.37 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 16.21 |
Range of Exercise Prices, upper limit | $ 20.37 |
Options Outstanding, Number | shares | 328 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 9 months 22 days |
Options Outstanding, Weighted Average Exercise Price | $ 18.63 |
Options Exercisable, Number Exercisable | shares | 242 |
Options Exercisable, Weighted Average Exercise Price | $ 18.02 |
$20.40 - $24.14 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 20.40 |
Range of Exercise Prices, upper limit | $ 24.14 |
Options Outstanding, Number | shares | 265 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 5 months 23 days |
Options Outstanding, Weighted Average Exercise Price | $ 23.29 |
Options Exercisable, Number Exercisable | shares | 203 |
Options Exercisable, Weighted Average Exercise Price | $ 23.30 |
$31.25 - $31.25 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 31.25 |
Range of Exercise Prices, upper limit | $ 31.25 |
Options Outstanding, Number | shares | 331 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 7 months 10 days |
Options Outstanding, Weighted Average Exercise Price | $ 31.25 |
Options Exercisable, Number Exercisable | shares | 91 |
Options Exercisable, Weighted Average Exercise Price | $ 31.25 |
$32.29 - $38.99 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 32.29 |
Range of Exercise Prices, upper limit | $ 38.99 |
Options Outstanding, Number | shares | 248 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 11 months 19 days |
Options Outstanding, Weighted Average Exercise Price | $ 38 |
Options Exercisable, Number Exercisable | shares | 221 |
Options Exercisable, Weighted Average Exercise Price | $ 38.60 |
$54.65 - $54.65 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 54.65 |
Range of Exercise Prices, upper limit | $ 54.65 |
Options Outstanding, Number | shares | 215 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 7 months 10 days |
Options Outstanding, Weighted Average Exercise Price | $ 54.65 |
Equity Compensation (Summary 74
Equity Compensation (Summary of Restricted Stock Award Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Vested | (1,000,000) | (1,000,000) | |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Vested | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 86 | ||
Market Stock Unit (MSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Balance | 125,000 | 35,000 | |
Number of Shares, Granted | 55,000 | 90,000 | 35,000 |
Number of Shares, Balance | 180,000 | 125,000 | 35,000 |
Weighted Average Grant Date Fair Value (per share), Beginning Balance | $ 34.85 | $ 22 | |
Weighted Average Grant Date Fair Value (per share), Granted | 75.58 | 39.86 | $ 22 |
Weighted Average Grant Date Fair Value (per share), Ending Balance | $ 47.30 | $ 34.85 | $ 22 |
Equity Compensation (Summary 75
Equity Compensation (Summary of Restricted Stock Unit Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Vested | (1,000) | (1,000) | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Balance | 3,163 | 2,821 | 2,309 |
Number of Shares, Granted | 947 | 1,437 | 1,887 |
Number of Shares, Vested | (1,032) | (992) | (1,224) |
Number of Shares, Forfeited | (83) | (103) | (151) |
Number of Shares, Balance | 2,995 | 3,163 | 2,821 |
Weighted Average Grant Date Fair Value (per share), Beginning Balance | $ 26.14 | $ 25.57 | $ 25.26 |
Weighted Average Grant Date Fair Value (per share), Granted | 52.40 | 31.51 | 22.04 |
Weighted Average Grant Date Fair Value (per share), Vested | 24.67 | 32.48 | 19.52 |
Weighted Average Grant Date Fair Value (per share), Forfeited | 28.40 | 24.75 | 26.17 |
Weighted Average Grant Date Fair Value (per share), Ending Balance | $ 34.91 | $ 26.14 | $ 25.57 |
Equity Compensation (Summary 76
Equity Compensation (Summary of Restricted Stock Units Vested and Expected to Vest) (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 12 Months Ended |
Mar. 25, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Vested and expected to vest | shares | 2,870 |
Weighted Average Fair Value, Vested and expected to vest | $ | $ 34.64 |
Weighted Average Remaining Contractual Term, Vested and expected to vest | 1 year 5 months 5 days |
Equity Compensation (Schedule77
Equity Compensation (Schedule of Fair Value Market Stock Units Assumptions) (Details) | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Market Stock Unit (MSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 47.66% | 45.07% | |
Risk-free interest rate | 0.98% | 1.16% | |
Expected term (in years) | 3 years | 3 years | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 47.66% | 45.07% | 42.12% |
Risk-free interest rate | 1.13% | 1.05% | 0.91% |
Expected term (in years) | 2 years 9 months 15 days | 2 years 11 months 19 days | 2 years 10 months 13 days |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 40.13% | 38.79% | |
Risk-free interest rate | 0.94% | 0.49% | |
Expected term (in years) | 2 years 8 months 19 days | 2 years 1 month 24 days |
Equity Compensation (Summary 78
Equity Compensation (Summary of Market Stock Unit Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Vested | (1,000) | (1,000) | |
Market Stock Unit (MSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Balance | 125 | 35 | |
Number of Shares, Granted | 55 | 90 | 35 |
Number of Shares, Balance | 180 | 125 | 35 |
Weighted Average Grant Date Fair Value (per share), Beginning Balance | $ 34.85 | $ 22 | |
Weighted Average Grant Date Fair Value (per share), Granted | 75.58 | 39.86 | $ 22 |
Weighted Average Grant Date Fair Value (per share), Ending Balance | 47.30 | $ 34.85 | $ 22 |
Market Stock Unit (MSUs) [Member] | Weighted Average Estimated Fair Value Using Monte Carlo Simulation Model [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant Date Fair Value (per share), Granted | $ 75.58 |
Equity Compensation (Summary 79
Equity Compensation (Summary of Market Stock Units Expected to Vest) (Details) - Market Stock Unit (MSUs) [Member] shares in Thousands | 12 Months Ended |
Mar. 25, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Vested and expected to vest | shares | 171 |
Weighted Average Fair Value, Vested and expected to vest | $ | $ 46.89 |
Weighted Average Remaining Contractual Term, Vested and expected to vest | 1 year 8 months 9 days |
Commitments and Contingencies80
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Rent expense | $ 8,200 | $ 5,200 | $ 4,000 |
Sublease rental income | 400 | 300 | $ 100 |
Total property, plant and equipment | 290,096 | 252,173 | |
Accumulated depreciation | 121,957 | 89,517 | |
Assets Held under Capital Leases [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Total property, plant and equipment | 1,000 | ||
Accumulated depreciation | $ 300 | ||
Foundry Commitments [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Non-cancelable purchase commitments | 182,300 | ||
Assembly Purchase Order Commitments [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Non-cancelable purchase commitments | 3,600 | ||
Outside Test Services Commitments [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Non-cancelable purchase commitments | 14,500 | ||
Long-term Other Purchase Obligation [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Non-cancelable purchase commitments | $ 21,600 |
Commitments and Contingencies81
Commitments and Contingencies (Schedule of Future Rental Commitments) (Details) $ in Thousands | Mar. 25, 2017USD ($) |
Rental Commitments [Line Items] | |
2,018 | $ 6,755 |
2,019 | 10,078 |
2,020 | 9,655 |
2,021 | 9,445 |
2,022 | 9,172 |
Thereafter | 38,644 |
Total minimum lease payment | 83,749 |
Facilities [Member] | |
Rental Commitments [Line Items] | |
2,018 | 7,074 |
2,019 | 10,354 |
2,020 | 9,811 |
2,021 | 9,580 |
2,022 | 9,313 |
Thereafter | 39,071 |
Total minimum lease payment | 85,203 |
Subleases [Member] | |
Rental Commitments [Line Items] | |
2,018 | 386 |
2,019 | 391 |
2,020 | 266 |
2,021 | 245 |
2,022 | 251 |
Thereafter | 859 |
Total minimum lease payment | 2,398 |
Net Facilities Commitments [Member] | |
Rental Commitments [Line Items] | |
2,018 | 6,688 |
2,019 | 9,963 |
2,020 | 9,545 |
2,021 | 9,335 |
2,022 | 9,062 |
Thereafter | 38,212 |
Total minimum lease payment | 82,805 |
Equipment Commitments [Member] | |
Rental Commitments [Line Items] | |
2,018 | 67 |
2,019 | 115 |
2,020 | 110 |
2,021 | 110 |
2,022 | 110 |
Thereafter | 432 |
Total minimum lease payment | $ 944 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - USD ($) | 12 Months Ended | 18 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | Mar. 25, 2017 | |
Repurchase and retirement of common stock, shares | 500,000 | |||
Repurchase and retirement of common stock, value | $ 15,439,000 | $ 60,503,000 | $ 10,534,000 | |
Average cost per share repurchased | $ 32.13 | |||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | |
October 2015 Repurchase Program [Member] | ||||
Share repurchase program, amount approved | $ 200,000,000 | $ 200,000,000 | ||
Repurchase and retirement of common stock, shares | 800,000 | |||
Repurchase and retirement of common stock, value | $ 24,200,000 | |||
Average cost per share repurchased | 31.93 | |||
Remaining amount available for share repurchases under stock repurchase program | $ 175,800,000 | $ 175,800,000 | ||
Series A Participating Preferred Stock [Member] | ||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||
Preferred Stock, shares issued | 0 | 0 |
Accumulated Other Comprehensi83
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, accumulated other comprehensive loss | $ 332 | $ (2,110) | |
Foreign currency translation (gain) loss | (826) | 294 | |
Unrealized (gain) loss on marketable securities | 47 | (24) | $ 107 |
Actuarial (gain) loss on pension plan | (79) | 2,660 | (1,625) |
Reclassification of actuarial (gain) loss to net income | (89) | 49 | |
Tax effect | 42 | (537) | |
Ending balance, accumulated other comprehensive loss | (573) | 332 | (2,110) |
Foreign Currency [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, accumulated other comprehensive loss | (476) | (770) | |
Foreign currency translation (gain) loss | (826) | 294 | |
Ending balance, accumulated other comprehensive loss | (1,302) | (476) | (770) |
Unrealized Gains (Losses) on Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, accumulated other comprehensive loss | (62) | (47) | |
Unrealized (gain) loss on marketable securities | 47 | (24) | |
Tax effect | (16) | 9 | |
Ending balance, accumulated other comprehensive loss | (31) | (62) | (47) |
Actuarial Gains (Losses) on Pension Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, accumulated other comprehensive loss | 870 | (1,293) | |
Actuarial (gain) loss on pension plan | (79) | 2,660 | |
Reclassification of actuarial (gain) loss to net income | (89) | 49 | |
Tax effect | 58 | (546) | |
Ending balance, accumulated other comprehensive loss | $ 760 | $ 870 | $ (1,293) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Income Taxes [Line Items] | |||||||
Share based compensation, excess tax benefits, amount | $ 1,900 | $ 10,800 | $ 8,000 | $ 2,200 | $ 22,900 | ||
Increase (decrease) in valuation allowance | 1,800 | ||||||
Net operating loss included in deferred tax assets | 6,294 | 6,294 | $ 24,592 | ||||
Alternative minimum tax operating loss carryforwards | 8,500 | 8,500 | |||||
Undistributed earnings in foreign subsidiaries | 201,300 | 201,300 | |||||
Unrecognized deferred tax liability on undistributed earnings | 65,500 | 65,500 | |||||
Ending balance | 30,858 | 30,858 | 18,796 | ||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 2,300 | 2,300 | |||||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 12,127 | 12,592 | |||||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 6,204 | ||||||
Interest and penalties incurred during period | 200 | $ 0 | $ 0 | ||||
Federal [Member] | |||||||
Income Taxes [Line Items] | |||||||
Net operating loss carryforwards | 12,900 | 12,900 | |||||
State [Member] | |||||||
Income Taxes [Line Items] | |||||||
Net operating loss carryforwards | 44,700 | 44,700 | |||||
Research Tax Credit Carryforward [Member] | Federal [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax credit carryforward | 4,000 | 4,000 | |||||
Research Tax Credit Carryforward [Member] | State [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax credit carryforward | $ 15,400 | $ 15,400 |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Income Taxes [Abstract] | |||
United States | $ 137,654 | $ 108,133 | $ 133,295 |
Non-U.S. | 177,393 | 67,856 | (41,746) |
Income before income taxes | $ 315,047 | $ 175,989 | $ 91,549 |
Income Taxes (Summary of Provis
Income Taxes (Summary of Provision (Benefit) for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 24, 2016 | Jun. 25, 2016 | Sep. 24, 2016 | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Income Taxes [Line Items] | ||||||
Total current tax provision | $ 36,174 | $ 29,016 | $ 42,610 | |||
Total deferred tax provision (benefit) | 17,664 | 23,343 | (6,239) | |||
Total provision for income taxes | $ 16,634 | $ 3,598 | $ 20,232 | 53,838 | 52,359 | 36,371 |
U.S [Member] | ||||||
Income Taxes [Line Items] | ||||||
Total current tax provision | 28,940 | 28,313 | 42,165 | |||
Total deferred tax provision (benefit) | 2,576 | 18,242 | 2,136 | |||
Non-U.S [Member] | ||||||
Income Taxes [Line Items] | ||||||
Total current tax provision | 7,234 | 703 | 445 | |||
Total deferred tax provision (benefit) | $ 15,088 | $ 5,101 | $ (8,375) |
Income Taxes (Summary of Prov87
Income Taxes (Summary of Provision (Benefit) for Income Taxes, Statutory Federal Rate Pretax Income Reconciliation) (Details) | 12 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Income Taxes [Abstract] | |||
Expected income tax provision at the U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
Foreign taxes at different rates | (8.60%) | (0.60%) | 7.30% |
Research and development tax credits | (1.80%) | (5.60%) | (3.60%) |
Stock based compensation | (7.30%) | ||
Nondeductible expenses | 0.10% | 2.30% | |
Other | (0.20%) | 0.90% | (1.30%) |
Provision for income taxes | 17.10% | 29.80% | 39.70% |
Income Taxes (Significant Compo
Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Deferred tax assets: | ||
Accrued expenses and allowances | $ 9,002 | $ 3,761 |
Net operating loss carryforwards | 6,294 | 24,592 |
Research and development tax credit carryforwards | 13,977 | 9,649 |
Stock based compensation | 17,356 | 16,071 |
Other | 9,141 | 9,976 |
Total deferred tax assets | 55,770 | 64,049 |
Valuation allowance for deferred tax assets | (12,570) | (10,773) |
Net deferred tax assets | 43,200 | 53,276 |
Deferred tax liabilities: | ||
Depreciation and amortization | 13,837 | 13,607 |
Acquisition intangibles | 16,301 | 21,844 |
Total deferred tax liabilities | 30,138 | 35,451 |
Total net deferred tax assets | $ 13,062 | $ 17,825 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 25, 2017 | Mar. 26, 2016 | |
Income Tax Uncertainties [Abstract] | ||
Beginning balance | $ 18,796 | |
Additions based on tax positions related to the current year | 12,127 | $ 12,592 |
Additions based on tax positions related to prior years | 6,204 | |
Reductions based on tax positions related to the prior years | (65) | |
Ending balance | $ 30,858 | $ 18,796 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Mar. 25, 2017segment | |
Segment Information [Abstract] | |
Number of reportable segments | 1 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Revenue from Product Lines) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 327,864 | $ 523,029 | $ 428,619 | $ 259,428 | $ 231,999 | $ 347,863 | $ 306,756 | $ 282,633 | $ 1,538,940 | $ 1,169,251 | $ 916,568 |
Audio Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,373,848 | 989,101 | 740,301 | ||||||||
Non-Portable Audio and Other Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 165,092 | $ 180,150 | $ 176,267 |
Segment Information (Schedule92
Segment Information (Schedule of Sales by Geographic Location Based on the Sales Office Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 327,864 | $ 523,029 | $ 428,619 | $ 259,428 | $ 231,999 | $ 347,863 | $ 306,756 | $ 282,633 | $ 1,538,940 | $ 1,169,251 | $ 916,568 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 36,024 | 73,889 | 31,977 | ||||||||
European Union (Excluding United Kingdom) [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 9,809 | 12,745 | 13,629 | ||||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 5,741 | 5,687 | 2,805 | ||||||||
China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,249,325 | 823,843 | 728,413 | ||||||||
Hong Kong [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 181,283 | 10,647 | 15,087 | ||||||||
Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 11,819 | 27,898 | 14,353 | ||||||||
South Korea [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,403 | 193,388 | 69,327 | ||||||||
Taiwan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 14,426 | 9,249 | 15,272 | ||||||||
Other Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 16,585 | 8,657 | 10,991 | ||||||||
Other Non-U.S. Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 11,525 | $ 3,248 | $ 14,714 |
Segment Information (Schedule93
Segment Information (Schedule of Property, Plant, and Equipment, Net, by Geographic Location) (Details) - USD ($) $ in Thousands | Mar. 25, 2017 | Mar. 26, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 168,139 | $ 162,656 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 120,212 | 125,674 |
European Union (Excluding United Kingdom) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 793 | 253 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 44,981 | 34,632 |
China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 565 | 483 |
Hong Kong [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 5 | 1 |
Japan [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 243 | 260 |
South Korea [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 202 | 110 |
Taiwan [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 231 | 180 |
Other Asia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 50 | 29 |
Other Non-U.S. Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 857 | $ 1,034 |
Quarterly Results (Unaudited)94
Quarterly Results (Unaudited) (Schedule of Unaudited Quarterly Statement of Operations Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Sep. 24, 2016 | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |
Quarterly Results (Unaudited) [Abstract] | ||||||||||||
Net sales | $ 327,864 | $ 523,029 | $ 428,619 | $ 259,428 | $ 231,999 | $ 347,863 | $ 306,756 | $ 282,633 | $ 1,538,940 | $ 1,169,251 | $ 916,568 | |
Gross profit | 164,279 | 255,152 | 211,699 | 126,685 | 115,254 | 164,911 | 142,221 | 132,454 | 757,815 | 554,840 | 425,748 | |
Net income | $ 35,058 | $ 122,041 | $ 86,039 | $ 18,071 | $ 14,012 | $ 41,384 | $ 34,880 | $ 33,354 | $ 104,110 | $ 261,209 | $ 123,630 | $ 55,178 |
Basic earnings per share | $ 0.55 | $ 1.91 | $ 1.37 | $ 0.29 | $ 0.22 | $ 0.65 | $ 0.55 | $ 0.53 | $ 1.66 | $ 4.12 | $ 1.96 | $ 0.88 |
Diluted earnings per share | $ 0.52 | $ 1.83 | $ 1.30 | $ 0.27 | $ 0.21 | $ 0.63 | $ 0.53 | $ 0.50 | $ 1.58 | $ 3.92 | $ 1.87 | $ 0.85 |