Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Jan. 25, 2015 | Mar. 20, 2015 | Jul. 27, 2014 |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | 25-Jan-15 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SEMTECH CORP | ||
Entity Central Index Key | 88941 | ||
Current Fiscal Year End Date | -25 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 67,818,913 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $1.29 | ||
Share Price | $21.80 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Net sales | $557,885 | $594,977 | $578,827 |
Cost of sales | 229,093 | 244,719 | 264,215 |
Cost of sales - lower of cost or market write-down | 0 | 15,047 | 0 |
Gross profit | 328,792 | 335,211 | 314,612 |
Operating costs and expenses: | |||
Selling, general and administrative | 128,525 | 125,379 | 149,070 |
Product development and engineering | 119,371 | 137,437 | 120,009 |
Intangible amortization | 25,718 | 29,002 | 29,244 |
Intangible asset impairments | 11,636 | 32,538 | 700 |
Goodwill impairment | 0 | 116,686 | 0 |
Restructuring | 1,285 | 3,086 | 0 |
Total operating costs and expenses | 286,535 | 444,128 | 299,023 |
Operating income (loss) | 42,257 | -108,917 | 15,589 |
Interest expense | -5,927 | -18,174 | -14,363 |
Interest income and other (expense) income, net | 165 | -1,390 | -977 |
Income (loss) before taxes | 36,495 | -128,481 | 249 |
Provision (benefit) for taxes | 8,548 | 35,985 | -41,690 |
Net income (loss) | $27,947 | ($164,466) | $41,939 |
Earnings per share: | |||
Basic (in dollars per share) | $0.42 | ($2.44) | $0.64 |
Diluted (in dollars per share) | $0.41 | ($2.44) | $0.62 |
Weighted average number of shares used in computing earnings per share: | |||
Basic (in shares) | 67,108 | 67,471 | 65,809 |
Diluted (in shares) | 67,685 | 67,471 | 67,472 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Net income (loss) | $27,947 | ($164,466) | $41,939 |
Other comprehensive loss, before tax: | |||
Change in net unrealized holding loss on available-for-sale investments | -1 | -7 | -42 |
Change in unrealized loss on interest rate cap | -284 | -228 | -556 |
Less: Reclassification adjustments of losses on interest rate cap included in interest expense | 242 | 78 | 0 |
Change in cumulative translation adjustment | 0 | 0 | 203 |
Total other comprehensive loss, before tax | -43 | -157 | -395 |
(Provision) Benefit for taxes related to items of other comprehensive loss | -47 | 57 | 213 |
Total other comprehensive loss, net of tax | -90 | -100 | -182 |
Comprehensive income (loss) | $27,857 | ($164,566) | $41,757 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $230,328 | $243,194 |
Accounts receivable, less allowances of $3,523 at January 25, 2015 and $3,825 at January 26, 2014 | 69,301 | 66,333 |
Inventories | 73,668 | 60,267 |
Deferred tax assets | 2,478 | 2,946 |
Prepaid taxes | 1,544 | 4,993 |
Other current assets | 19,369 | 15,863 |
Total current assets | 396,688 | 393,596 |
Non-current assets: | ||
Property, plant and equipment, net of accumulated depreciation of $120,588 at January 25, 2015 and $112,610 at January 26, 2014 | 115,471 | 110,121 |
Long-term investments | 0 | 3,674 |
Deferred tax assets | 106 | 348 |
Goodwill | 280,319 | 276,898 |
Other intangible assets, net | 101,600 | 140,944 |
Other assets | 35,247 | 23,359 |
TOTAL ASSETS | 929,431 | 948,940 |
Current liabilities: | ||
Accounts payable | 32,448 | 40,016 |
Accrued liabilities | 49,754 | 44,148 |
Deferred revenue | 5,848 | 7,267 |
Current portion - long term debt | 18,547 | 18,529 |
Deferred tax liabilities | 1,444 | 930 |
Total current liabilities | 108,041 | 110,890 |
Non-current liabilities: | ||
Deferred tax liabilities | 2,477 | 3,626 |
Long term debt, less current portion | 234,746 | 273,293 |
Other long-term liabilities | 32,809 | 25,288 |
Stockholders’ equity: | ||
Common stock, $0.01 par value, 250,000,000 shares authorized, 78,136,144 issued and 66,812,919 outstanding on January 25, 2015 and 78,136,144 issued and 67,283,221 outstanding on January 26, 2014 | 785 | 785 |
Treasury stock, at cost, 11,323,225 shares as of January 25, 2015 and 10,825,923 shares as of January 26, 2014 | -222,969 | -201,152 |
Additional paid-in capital | 371,596 | 362,121 |
Retained earnings | 401,783 | 373,836 |
Accumulated other comprehensive income | 163 | 253 |
Total stockholders’ equity | 551,358 | 535,843 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $929,431 | $948,940 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $3,523 | $3,825 |
Accumulated depreciation | $120,588 | $112,610 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 78,136,144 | 78,136,144 |
Common stock, shares outstanding | 66,812,919 | 67,283,221 |
Treasury stock, at cost, shares | 11,323,225 | 10,852,923 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning balance at Jan. 29, 2012 | $630,188 | $785 | $358,327 | $496,363 | ($225,822) | $535 |
Beginning balance (in shares) at Jan. 29, 2012 | 64,964,780 | 64,964,780 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 41,939 | 41,939 | ||||
Other comprehensive loss | -182 | -182 | ||||
Stock-based compensation | 21,382 | 21,382 | ||||
Repurchase of outstanding common stock | -7,769 | -7,769 | ||||
Repurchase of outstanding common stock (in shares) | -273,139 | -273,139 | ||||
Treasury stock reissued | 12,803 | -20,184 | 32,987 | |||
Treasury stock reissued (in shares) | 1,915,706 | 1,915,706 | ||||
Tax (shortfall) benefit from stock based compensation | -3,535 | -3,535 | ||||
Ending balance at Jan. 27, 2013 | 694,826 | 785 | 355,990 | 538,302 | -200,604 | 353 |
Ending balance (in shares) at Jan. 27, 2013 | 66,607,347 | 66,607,347 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | -164,466 | -164,466 | ||||
Other comprehensive loss | -100 | -100 | ||||
Stock-based compensation | 24,991 | 24,991 | ||||
Repurchase of outstanding common stock | -30,000 | -30,000 | ||||
Repurchase of outstanding common stock (in shares) | -1,034,491 | -1,034,491 | ||||
Treasury stock reissued | 5,876 | -23,576 | 29,452 | |||
Treasury stock reissued (in shares) | 1,710,365 | 1,710,365 | ||||
Tax (shortfall) benefit from stock based compensation | 4,716 | 4,716 | ||||
Ending balance at Jan. 26, 2014 | 535,843 | 785 | 362,121 | 373,836 | -201,152 | 253 |
Ending balance (in shares) at Jan. 26, 2014 | 67,283,221 | 67,283,221 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 27,947 | 27,947 | ||||
Other comprehensive loss | -90 | -90 | ||||
Stock-based compensation | 26,856 | 26,856 | ||||
Repurchase of outstanding common stock | -40,906 | -40,906 | ||||
Repurchase of outstanding common stock (in shares) | -1,578,869 | -1,578,869 | ||||
Treasury stock reissued | 1,708 | -17,381 | 19,089 | |||
Treasury stock reissued (in shares) | 1,108,567 | 1,108,567 | ||||
Ending balance at Jan. 25, 2015 | $551,358 | $785 | $371,596 | $401,783 | ($222,969) | $163 |
Ending balance (in shares) at Jan. 25, 2015 | 66,812,919 | 66,812,919 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Cash flows from operating activities: | |||
Net income (loss) | $27,947 | ($164,466) | $41,939 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities, net of effects of acquisitions: | |||
Depreciation, amortization and impairments | 69,303 | 94,073 | 49,192 |
Goodwill impairment | 0 | 116,686 | 0 |
Effect of acquisition fair value adjustments | -929 | 2,529 | 37,693 |
Accretion of deferred financing costs and debt discount | 1,083 | 1,509 | 2,545 |
Write-off of deferred financing costs and debt discount | 0 | 7,093 | 0 |
Deferred income taxes | 27 | 29,987 | -47,623 |
Stock-based compensation | 29,629 | 24,589 | 24,528 |
Excess tax benefits on stock based compensation | -13 | -4,220 | 0 |
Loss (gain) on disposition of property, plant and equipment | 74 | -28 | 85 |
Changes in assets and liabilities: | |||
Accounts receivable, net | -2,968 | 2,827 | -5,002 |
Inventories | -13,290 | 12,238 | -4,251 |
Prepaid expenses and other assets | -5,902 | 623 | 5,971 |
Accounts payable | -9,077 | -11,294 | 4,453 |
Accrued liabilities | 2,497 | -2,739 | -10,410 |
Deferred revenue | -1,419 | 3,401 | -1,112 |
Income taxes payable and prepaid taxes | 2,477 | 1,825 | -1,120 |
Other liabilities | 6,721 | 3,348 | 5,080 |
Net cash provided by operating activities | 106,160 | 117,981 | 101,968 |
Cash flows from investing activities: | |||
Purchases of available-for-sale investments | 0 | -1,050 | -24,744 |
Proceeds from sales and maturities of available-for-sale investments | 3,674 | 10,249 | 112,466 |
Proceeds from sales of property, plant and equipment | 89 | 57 | 0 |
Purchase of property, plant and equipment | -31,755 | -37,161 | -23,266 |
Purchase of intangible assets | -1,100 | -3,533 | -1,251 |
Purchase of cost method investment | -7,148 | -2,500 | -2,500 |
Acquisitions, net of cash acquired | -4,852 | 0 | -491,717 |
Net cash used in investing activities | -41,092 | -33,938 | -431,012 |
Cash flows from financing activities: | |||
Proceeds from debt issuance, net of discount | 5,000 | 327,344 | 347,000 |
Deferred financing cost | 0 | -2,980 | -8,962 |
Payment for interest rate cap | 0 | 0 | -1,100 |
Excess tax benefits on stock based compensation | 13 | 4,220 | 0 |
Payments for employee stock-based compensation payroll taxes | -7,172 | -10,522 | -6,894 |
Proceeds from exercises of stock options | 8,880 | 16,398 | 19,749 |
Repurchase of outstanding common stock | -40,906 | -30,000 | -7,769 |
Payment of long term debt | -43,749 | -368,501 | -16,875 |
Net cash (used in) provided by financing activities | -77,934 | -64,041 | 325,149 |
Effect of exchange rate increase on cash and cash equivalents | 0 | 0 | 65 |
Net (decrease) increase in cash and cash equivalents | -12,866 | 20,002 | -3,830 |
Cash and cash equivalents at beginning of period | 243,194 | 223,192 | 227,022 |
Cash and cash equivalents at end of period | 230,328 | 243,194 | 223,192 |
Supplemental disclosure of cash flow information | |||
Income taxes paid | 4,399 | 7,227 | 5,029 |
Interest paid | $5,441 | $8,727 | $10,556 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 12 Months Ended |
Jan. 25, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation |
Semtech Corporation (together with its subsidiaries, the “Company” or “Semtech”) is a global supplier of analog and mixed-signal semiconductor products. The end-customers for the Company’s products are primarily original equipment manufacturers (“OEM’s”) that produce and sell electronics. | |
The Company designs, develops and markets a wide range of products for commercial applications, the majority of which are sold into the enterprise computing, communications, high-end consumer and industrial end-markets. | |
Enterprise Computing: datacenters, passive optical networks, desktops, notebooks, servers, graphic boards, monitors, printers and other computer peripherals. | |
Communications: base stations, optical networks, carrier networks, switches and routers, cable modems, wireless LAN and other communication infrastructure equipment. | |
High-End Consumer: handheld products, smartphones, set-top boxes, digital televisions, tablets, digital video recorders and other consumer equipment. | |
Industrial: video broadcast studio equipment, automated meter reading, Internet of Things ("IoT"), smart grid, military and aerospace, medical, security systems, automotive, industrial and home automation, video security and surveillance and other industrial equipment. | |
Fiscal Year | |
The Company reports results on the basis of 52 and 53 week periods and ends its fiscal year on the last Sunday in January. The fiscal years ended January 25, 2015, January 26, 2014 and January 27, 2013 each consisted of 52 weeks. | |
Principles of Consolidation | |
The accompanying consolidated financial statements include the accounts of Semtech Corporation and its wholly-owned subsidiaries. All inter-company transactions and accounts have been eliminated. | |
In March 2012, the Company completed the acquisitions of Gennum Corporation (“Gennum”) and Cycleo SAS (“Cycleo”). The consolidated financial statements include the results of operations of Gennum and Cycleo commencing as of the acquisition dates. In January 2015, the Company completed the acquisition of EnVerv, Inc. (“EnVerv”). The consolidated financial statements include the results of operations of EnVerv commencing as of the acquisition date. | |
Segment Information | |
The Company's Chief Executive Officer (“CEO”) has been identified as the Chief Operating Decision Maker (“CODM”) as defined by guidance regarding segment disclosures (see Note 17 for further discussion). In fiscal year 2015, the Company completed the reassessment of its operations in light of its restructuring efforts (see Note 19 for further discussion) and recent strategic business decisions. Based on this reassessment, the Company has identified four operating segments in total. Three of the four operating segments aggregate into one reportable segment, the Semiconductor Products Group. The remaining operating segment, the Systems Innovation Group (shown as “All others”), could not be aggregated with the other operating segments and did not meet the criteria for a separate reportable segment as defined by the guidance regarding segment disclosure. As a result, the financial activity associated with the Systems Innovation Group is reported separately from the Company's Semiconductor Products Group. This separate reporting is included in the “All others” category. Prior to fiscal year 2015, the Company included “All others” as part of the Company’s one reportable segment. The historical activity of the reportable segment and “All others” has been recast for consistent presentation for all periods presented. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Reclassification | |
Certain prior period footnote amounts have been re-cast to reflect the effect of the changes to the Company's identified operating segments. See Note 17. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||
Jan. 25, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Significant Accounting Policies | Significant Accounting Policies | ||||||||||||
Cash, Cash Equivalents and Investments | |||||||||||||
The Company considers all highly-liquid investments with an original maturity of 90 days or less to be cash equivalents. The Company maintains cash balances and investments in highly-qualified financial institutions. At various times such amounts are in excess of insured limits. Investments consist of government and corporate obligations and bank time deposits. The Company’s investment policy restricts investments to high credit quality investments with limits on the length to maturity and the amount invested with any one issuer. These investments, especially corporate obligations, are subject to default risk. The Company designates its investments as available for sale (“AFS”). Investments designated as AFS are reported at fair value. The Company records the unrealized gains and losses, net of tax, in stockholders’ equity as a component of comprehensive income. Realized gains or losses are recorded in “Interest income and other (expense) income, net” in the consolidated statements of operations. | |||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||
Accounts receivable are recorded at net realizable value or the amount that the Company expects to collect on gross customer trade receivables. The Company evaluates the collectability of its accounts receivable based on a combination of factors. The Company generally does not require collateral on accounts receivable as the majority of the Company’s customers are large, well-established companies. Historically, bad debt provisions have been consistent with management’s expectations. If the Company becomes aware of a customer’s inability to meet its financial obligations after a sale has occurred, it records an allowance to reduce the net receivable to the amount it reasonably believes it will be able to collect from the customer. For all other customers, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment and historical experience. If the financial condition of the Company’s customers were to deteriorate or if economic conditions worsen, additional allowances may be required in the future. All of the Company’s accounts receivables are trade-related receivables. | |||||||||||||
Inventories | |||||||||||||
Inventories are stated at lower of cost or market and consist of materials, labor and overhead. The Company determines the cost of inventory by the first-in, first-out method. The Company evaluates inventories for excess quantities and obsolescence. This evaluation includes analysis of sales levels by product and projections of future demand. In order to state the inventory at lower of cost or market, the Company maintains reserves against its inventory. If future demand or market conditions are less favorable than the Company’s projections, a write-down of inventory may be required, and would be reflected in cost of goods sold in the period the revision is made. | |||||||||||||
Business Combinations | |||||||||||||
The Company accounts for business combinations at fair value. Goodwill is measured as the excess of consideration transferred over the acquisition date net fair values of the assets acquired and the liabilities assumed. All changes that do not qualify as measurement period adjustments are included in current period earnings. Significant judgment is required to determine the estimated fair value for assets and liabilities acquired and to assign their respective useful lives. The fair values assigned to tangible and intangible assets acquired and liabilities assumed, including contingent consideration, are based on management’s estimates and assumptions, as well as other information compiled by management, including available historical information and valuations that utilize customary valuation procedures and techniques. | |||||||||||||
The Company employs the income approach to estimate the fair value of intangible assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. The fair value of acquired in-process research and development projects (“IPR&D”) was determined using an income approach or replacement cost approach as applicable. The replacement cost approach was used for IPR&D projects that were considered long-term core investments and were not anticipated to be profitable for a period of time. IPR&D projects which were valued using an income approach, measured the returns attributable to each specific IPR&D project, discounted to present value using a risk-adjusted rate of return, including as appropriate, any tax benefits derived from amortizing the intangible assets for tax purposes. Significant estimates and assumptions inherent in the valuations reflect consideration of other marketplace participants, and include the amount and timing of future cash flows (including expected growth rates and profitability), the underlying product life cycles, economic barriers to entry, a brand’s relative market position and the discount rate applied to the cash flows, among others. | |||||||||||||
If actual results differ from the estimates and judgments used in these estimates, the amounts recorded in the financial statements could result in a possible impairment of the intangible assets and goodwill, or require acceleration of the amortization expense of finite-lived intangible assets. | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Property, plant and equipment are stated at cost less depreciation and impairments. The Company’s cost basis includes certain assets acquired in business combinations that were recorded at fair value as of the date of acquisition. Depreciation is computed over the estimated useful lives of the related asset type or term of the operating lease using the straight-line method for financial statement purposes. Maintenance and repairs are charged to expense as incurred and the costs of additions and betterments that increase the useful lives of the assets are capitalized. Also, the Company reassesses the estimated remaining useful lives of any impaired assets and adjusts accordingly estimates of future depreciation expense related to these assets. | |||||||||||||
The estimated service lives for property and equipment is as follows: | |||||||||||||
Estimated | |||||||||||||
Useful Lives | |||||||||||||
Buildings and leasehold improvements | 7 to 39 years | ||||||||||||
Enterprise resource planning systems | 13 years | ||||||||||||
Machinery and equipment | 5 to 8 years | ||||||||||||
Transportation vehicles | 5 years | ||||||||||||
Furniture and fixtures | 7 years | ||||||||||||
Computers and computer software | 3 years | ||||||||||||
Impairment of Goodwill, Other Intangible and Long-Lived Assets | |||||||||||||
Goodwill | |||||||||||||
Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the purchase method. Goodwill is not amortized but is tested for impairment using a two-step method. Step one is the identification of potential impairment. The Company’s operating segments represent its reporting units since segment management, who report to the CODM, regularly review operating results and make resource allocation decisions at this level. This involves comparing the fair value of each reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds the carrying amount, the goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of impairment loss, if any. The Company tests, by reporting unit, goodwill and other indefinite-lived intangible assets for impairment at November 30 or more frequently if it believes indicators of impairment exist or if it makes changes to a reporting unit with assigned goodwill. | |||||||||||||
For its annual impairment review, the Company primarily uses an income approach, which incorporates multi-period excess earnings present value techniques (discounted cash flows) as well as other generally accepted valuation methodologies to determine the fair value of the assets using Level 3 inputs. The Company's assumptions incorporate judgments as to the price received to sell a reporting unit as a whole in an orderly transaction between market participants at the measurement date. Considering the integration of its operations, the Company has assumed that the highest and best use of a reporting unit follows an “in-use” valuation premise. | |||||||||||||
Significant management judgment is required in determining the estimations of future cash flows, which is dependent on internal forecasts, the long-term rate of growth for the Company's business, the useful life over which cash flows will occur, and the weighted average cost of capital. The value of goodwill, could be impacted by future adverse changes such as: (i) any future declines in operating results, (ii) a decline in the valuation of technology company stocks, including the valuation of the Company's common stock, (iii) a significant slowdown in the worldwide economy and the semiconductor industry or (iv) any failure to meet the Company's performance projections included in its forecasts of future operating results. | |||||||||||||
Other Intangibles and Long-lived Assets | |||||||||||||
Finite-lived intangible assets resulting from business acquisitions or technology licenses purchased are amortized on a straight-line basis over their estimated useful lives. The useful lives of acquisition-related intangible assets represent the point where over 90% of realizable undiscounted cash flows for each intangible asset are recognized. The assigned useful lives are based upon the Company’s historical experience with similar technology and other intangible assets owned by the Company. The useful life of technology licenses is usually based on the term of the agreement. | |||||||||||||
In-process research and development is recorded at fair value as of the date of acquisition as an indefinite-lived intangible asset until the completion or abandonment of the associated research and development efforts or impairment. Upon completion of development, acquired in-process research and development assets are transferred to finite-lived intangible assets and amortized over their useful lives. | |||||||||||||
The Company reviews indefinite-lived intangible assets for impairment on an annual basis in conjunction with goodwill or whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability of indefinite-lived intangible assets is measured by comparing the carrying amount of the asset to the future discounted cash flows the asset is expected to generate. Also, the Company reassesses the estimated remaining useful lives of any impaired assets and adjusts accordingly estimates of future amortization expense related to these assets. | |||||||||||||
The Company assesses finite-lived intangibles and long-lived assets for impairment when indicators of impairment, such as reductions in demand or significant economic slowdowns in the semiconductor industry, are present. Reviews are performed to determine whether the carrying value of an asset is impaired, based on comparisons to undiscounted expected future cash flows. If this comparison indicates that there is impairment, the impaired asset is written down to fair value, which is typically calculated using: (i) quoted market prices and/or (ii) discounted expected future cash flows utilizing a discount rate. Impairment is based on the excess of the carrying amount over the fair value of those assets. | |||||||||||||
Cost Method Investments | |||||||||||||
The Company reviews its cost method investments on a regular basis to evaluate whether or not any investment has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer and its intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment's amortized cost basis. If the Company believes that an other-than-temporary decline exists in one of these investments, the Company writes down the impaired investment to fair value. Any impairment to these investments would be recorded as a non-operating expense in our Consolidated Statements of Operations. | |||||||||||||
Functional Currency | |||||||||||||
The Company has concluded that, with the exception of a subsidiary based in Reynosa, Mexico, the functional currency of all subsidiaries is the United States Dollar. | |||||||||||||
Fair Value Measurements | |||||||||||||
When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The Company uses the following three levels of inputs in determining the fair value of the Company’s assets and liabilities, focusing on the most observable inputs when available: | |||||||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||
Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. | |||||||||||||
To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement. | |||||||||||||
Interest Rate Derivative | |||||||||||||
The Company incurs interest expense through its variable rate debt. To manage its interest rate risk, the Company occasionally hedges the future cash flows of its variable rate debt, principally through interest rate contracts with major financial institutions. Interest rate contracts that meet specific criteria are accounted for as cash flow hedges. | |||||||||||||
The Company’s objective in using interest rate contracts is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate contracts as part of its interest rate risk management strategy. Interest rate cap contracts involve the receipts of variable amounts from a counterparty when one-month LIBOR exceeds the capped interest rate in exchange for an upfront payment from the Company, capping the Company’s one-month LIBOR floating interest payments at the strike rate on its interest rate cap contract. | |||||||||||||
The effective portion of changes in the fair value of derivatives designated, and that qualify, as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The upfront payment the Company paid for the interest rate cap agreement will be amortized out of accumulated other comprehensive income and recorded as interest expense according to the amortization schedule created at inception of the hedging relationship. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company records derivative instruments in the statements of cash flows to operating, investing, or financing activities consistent with the cash flows of the hedged item. | |||||||||||||
The assessment of effectiveness is based on the total changes in an option’s cash flows such that the assessment will include the interest rate caps entire change in fair value. The interest rate cap is considered a highly effective hedge since the key features and terms match with the hedged item at inception. Key features and terms are notional amount, cap effective date, rate threshold, index, repricing dates, payments dates, and maturity dates. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes product revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. Recovery of costs associated with product design and engineering services are recognized during the period in which services are performed. The product design and engineering recovery, when recognized, will be reported as a reduction to product development and engineering expense. Historically, these recoveries have not exceeded the cost of the related development efforts. | |||||||||||||
The Company includes revenue related to granted technology licenses as part of “Net sales.” Historically, revenue from these arrangements has not been significant though it is part of its recurring ordinary business. In the third quarter of fiscal year 2013, the Company entered into a single licensing arrangement that resulted in the recognition of $7.5 million of revenue. | |||||||||||||
The Company defers revenue recognition on shipment of products to certain customers, principally distributors, under agreements which provide for limited pricing credits or return privileges, until these products are sold through to end-users or the return privileges lapse. For sales subject to certain pricing credits or return privileges, the amount of future pricing credits or inventory returns cannot be reasonably estimated given the relatively long period in which a particular product may be held by the customer. Therefore, the Company has concluded that sales to customers under these agreements are not fixed and determinable at the date of the sale and revenue recognition has been deferred. The Company estimates the deferred gross margin on these sales by applying an average gross profit margin to the actual gross sales. The average gross profit margin is calculated for each category of material using standard costs which is expected to approximate actual costs at the date of sale. The estimated deferred gross margins on these sales, where there are no outstanding receivables, are recorded on the consolidated balance sheets under the heading of “Deferred revenue.” | |||||||||||||
The Company records a provision for estimated sales returns in the same period as the related revenues are recorded. The Company bases these estimates on historical sales returns and other known factors. Actual returns could be different from Company estimates and current provisions for sales returns and allowances, resulting in future charges to earnings. There were no significant impairments of deferred cost of sales in fiscal years 2015, 2014 or 2013. | |||||||||||||
The following table summarizes the deferred revenue balance: | |||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | |||||||||||
Deferred revenues | $ | 6,237 | $ | 7,179 | |||||||||
Deferred cost of revenues | (1,562 | ) | (1,698 | ) | |||||||||
Deferred revenue, net | 4,675 | 5,481 | |||||||||||
Deferred product design and engineering recoveries | 1,173 | 1,786 | |||||||||||
Total deferred revenue | $ | 5,848 | $ | 7,267 | |||||||||
Cost of Sales | |||||||||||||
Cost of sales includes materials, depreciation on fixed assets used in the manufacturing process, shipping costs, direct labor and overhead. | |||||||||||||
Sales and Marketing | |||||||||||||
The Company expenses sales and marketing costs, which include advertising costs, as they are incurred. Advertising costs were $52,000, $118,000 and $119,000 for fiscal years 2015, 2014 and 2013, respectively. | |||||||||||||
Product Development and Engineering | |||||||||||||
Product development and engineering costs are charged to expense as incurred. Recoveries from nonrecurring engineering services are recorded as an offset to product development expense incurred in support of this effort since these activities do not represent an earnings process core to the Company’s business and serve as a mechanism to partially recover development expenditures. | |||||||||||||
The Company received approximately $29.3 million, $17.6 million and $12.5 million in fiscal years 2015, 2014 and 2013, respectively for nonrecurring engineering services. | |||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts and their respective tax bases. The consolidated balance sheets include current and long term prepaid taxes under “Prepaid taxes” and “Other assets” and current and long term liabilities for uncertain tax positions under “Accrued liabilities” and “Other long-term liabilities.” | |||||||||||||
As part of the process of preparing the Company’s consolidated financial statements, the Company estimates income taxes in each of the jurisdictions in which it operates. This process involves estimating the current tax liability together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, it must establish a valuation allowance. To the extent the Company changes its valuation allowance in a period, the change is generally recorded through the tax provision on the consolidated statements of operations. | |||||||||||||
The income tax effects of share-based payments are recognized for financial reporting purposes only if such awards are expected to result in a tax deduction. The Company does not recognize a deferred tax asset for an excess tax benefit (that is, a tax benefit that exceeds the tax benefit for the amount of compensation cost recognized for the award for financial reporting purposes) that has not been realized. In determining when an excess tax benefit is realized, the Company has elected to follow the ordering provision of the tax law. | |||||||||||||
For intra-entity differences between the tax basis of an asset in the buyer’s tax jurisdiction and their cost as reported in the consolidated financial statements, the Company does not recognize a deferred tax asset. Income taxes paid on intra-entity profits on assets remaining within the group are accounted for as prepaid taxes. See Note 14 for further discussion of income taxes. | |||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||
Other comprehensive income includes unrealized gains and losses on available-for-sale investments, unrealized loss on interest rate hedging activities and foreign currency translation adjustments, net of tax. This information is provided in our consolidated statements of comprehensive income. | |||||||||||||
The following table summarizes the changes in accumulated other comprehensive income (loss) by component: | |||||||||||||
(in thousands) | Available for Sale Investments | Interest Rate Hedge | Cumulative Translation Adjustments | Total | |||||||||
Balance at January 29, 2012 | 37 | — | 498 | 535 | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax | (31 | ) | (353 | ) | 203 | (181 | ) | ||||||
Amounts reclassified, net of tax | (1 | ) | — | — | (1 | ) | |||||||
Net current period other comprehensive income (loss) | (32 | ) | (353 | ) | 203 | (182 | ) | ||||||
Balance at January 27, 2013 | 5 | (353 | ) | 701 | 353 | ||||||||
Other comprehensive income (loss) before reclassifications, net of tax | (5 | ) | (145 | ) | — | (150 | ) | ||||||
Amounts reclassified, net of tax | — | 50 | — | 50 | |||||||||
Net current period other comprehensive loss | (5 | ) | (95 | ) | — | (100 | ) | ||||||
Balance at January 27, 2013 | — | (448 | ) | 701 | 253 | ||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | (243 | ) | — | (243 | ) | |||||||
Amounts reclassified, net of tax | — | 153 | — | 153 | |||||||||
Net current period other comprehensive loss | — | (90 | ) | — | (90 | ) | |||||||
Balance at January 25, 2015 | — | (538 | ) | 701 | 163 | ||||||||
Stock-Based Compensation | |||||||||||||
The Company has various equity award plans (“Plans”) that provide for granting stock based awards to employees and non-employee directors of the Company. The Plans provide for the granting of several available forms of stock compensation. As of January 25, 2015, the Company has granted stock option awards (“Options”) and restricted stock unit awards (“RSU”) under the Plans and has also issued some stock-based compensation outside of any plan, including options and restricted stock issued as inducements to join the Company. | |||||||||||||
Earnings (Loss) per Share | |||||||||||||
The computation of basic and diluted earnings per common share was as follows: | |||||||||||||
Fiscal Year Ended | |||||||||||||
(in thousands, except per share amounts) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||
Net income (loss) | $ | 27,947 | $ | (164,466 | ) | $ | 41,939 | ||||||
Weighted average common shares outstanding - basic | 67,108 | 67,471 | 65,809 | ||||||||||
Dilutive effect of employee equity incentive plans | 577 | 0 | 1,663 | ||||||||||
Weighted average common shares outstanding - diluted | 67,685 | 67,471 | 67,472 | ||||||||||
Basic earnings (loss) per common share | $ | 0.42 | $ | (2.44 | ) | $ | 0.64 | ||||||
Diluted earnings (loss) per common share | $ | 0.41 | $ | (2.44 | ) | $ | 0.62 | ||||||
Anti-dilutive shares not included in the above calculations | 1,714 | 1,245 | 783 | ||||||||||
Basic earnings (loss) per common share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the reporting period. Diluted earnings (loss) per common share incorporates the incremental shares issuable, calculated using the treasury stock method, upon the assumed exercise of stock options and the vesting of restricted stock. | |||||||||||||
Contingencies | |||||||||||||
The Company accrues an undiscounted liability for contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated, and the Company discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for our financial statements not to be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. | |||||||||||||
Because litigation outcomes are inherently unpredictable, the Company’s evaluation of legal proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. If the assessments indicate that loss contingencies that could be material to any one of our financial statements are not probable, but are reasonably possible, or are probable, but cannot be estimated, then the Company discloses the nature of the loss contingencies, together with an estimate of the range of possible loss or a statement that such loss is not reasonably estimable. | |||||||||||||
The Company also records contingent earn-out liabilities which represent the Company’s requirement to make additional payments related to acquisitions based on certain performance targets achieved during the earn-out periods. For such earn-outs that do not relate to employee services, the Company estimates the fair value based on probability assessments of achieving the specified performance targets. | |||||||||||||
Subsequent Events | |||||||||||||
The Company evaluates all events through the issuance date of the consolidated financial statements to determine whether any subsequent events have occurred that require recognition or disclosure. |
Acquisitions
Acquisitions | 12 Months Ended | |||
Jan. 25, 2015 | ||||
Business Combinations [Abstract] | ||||
Acquisitions | Acquisitions | |||
EnVerv, Inc. (“EnVerv”) | ||||
On January 13, 2015, the Company completed the acquisition of select assets of EnVerv, a privately-held supplier of power line communications (“PLC”) and Smart Grid solutions targeted at advanced metering infrastructure, home energy management systems and Internet of Things applications. Semtech paid $4.9 million in cash at closing. | ||||
Total acquisition consideration will be allocated to the acquired tangible and intangible assets and assumed liabilities of EnVerv based on their respective estimated fair values as of the acquisition date. Any excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed will be allocated to goodwill. The Company is currently in the process of evaluating the fair values of the acquired intangible assets and goodwill assumed in the business combination. As of January 25, 2015, based on the Company’s preliminary estimates, $1.4 million of the total acquisition consideration has been allocated to core technologies and the remaining $3.4 million has been allocated to goodwill. The Company expects that all such goodwill will be deductible for tax purposes. | ||||
The purchase price allocation for the EnVerv acquisition is preliminary and will be finalized upon collection of information regarding the fair values of assets and liabilities acquired. The primary areas of the preliminary purchase price allocation that are not yet finalized include fair values of certain tangible assets and liabilities acquired, identifiable intangible assets, certain legal matters, income and non-income based taxes, residual goodwill, the allocation of goodwill to reporting units, and its impact on segment reporting.The Company expects to complete the purchase price allocation for its acquisition of EnVerv in the second quarter of fiscal year 2016. | ||||
Net revenues and earnings attributable to EnVerv since the acquisition date were not material. Pro forma results of operations have not been presented as EnVerv’s annual operating results are not material to the Company’s consolidated financial statements. | ||||
Gennum Corporation (“Gennum”) | ||||
On March 20, 2012, the Company, through its wholly-owned subsidiary Semtech Canada Inc., completed the acquisition of all outstanding equity interests of Gennum (TSX: GND), a leading supplier of high-speed analog and mixed-signal semiconductors for the optical communications and video broadcast markets. | ||||
Upon consummation of the business acquisition, which constituted a change in control of Gennum, Gennum’s stock option awards and restricted shares became fully vested. Semtech acquired 100% of the outstanding shares and vested stock options, restricted shares, and deferred share units of Gennum for CDN $13.55 per share for a total purchase price of $506.5 million. The acquisition was financed with a combination of cash from Semtech’s international cash reserves and $347.0 million of five-year secured term loans, net of original issuance debt discount of $3.0 million. | ||||
The Gennum assets acquired and liabilities assumed are recorded at their acquisition-date fair values. Acquisition-related transaction costs are not included as a component of consideration transferred, but are accounted for as an expense in the period in which the costs are incurred. Any excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed is allocated to goodwill. The goodwill resulted from expected synergies from the transaction, including complementary products that will enhance the Company’s overall product portfolio, and opportunities within new markets, and is not deductible for tax purposes. The acquired in-process research and development is recorded at fair value as an indefinite-lived intangible asset at the acquisition date until the completion or abandonment of the associated research and development efforts. | ||||
In connection with the acquisition, certain Gennum employees became entitled to payments upon a change in control and their subsequent termination. These payments, which totaled approximately $9.6 million, have been recognized as a post-acquisition compensation expense and included in the consolidated statements of operations for fiscal year 2013 under “Selling, general and administrative.” | ||||
The Company’s allocation of the total purchase price as of March 20, 2012 is summarized below: | ||||
(in thousands) | At March 20, 2012 | |||
Cash | $ | 19,664 | ||
Accounts receivable, less allowances | 14,032 | |||
Inventories | 62,941 | |||
Prepaid expenses | 3,832 | |||
Income taxes receivable | 1,467 | |||
Deferred tax assets - current | 8,590 | |||
Other current assets | 7,804 | |||
Property, plant and equipment | 25,702 | |||
Amortizable intangible assets | 129,863 | |||
In-process research and development | 29,100 | |||
Goodwill | 261,891 | |||
Deferred tax assets - non-current | 31,235 | |||
Other non-current assets | 8 | |||
Deferred tax liabilities | (47,077 | ) | ||
Accounts payable | (18,232 | ) | ||
Accrued liabilities | (24,274 | ) | ||
Total acquisition consideration | $ | 506,546 | ||
(in thousands) | At March 20, 2012 | |||
Amortizable intangible assets: | ||||
Developed technology | $ | 95,100 | ||
Customer relationships | 28,000 | |||
Other intangible assets | 6,763 | |||
$ | 129,863 | |||
Primarily due to a change in the preliminary allocation of fair value with regard to deferred tax assets and liabilities, the preliminary goodwill allocation related to Gennum decreased by $0.9 million from $262.8 million as of October 28, 2012 to $261.9 million as of January 27, 2013. | ||||
The Company completed the purchase price allocation for its acquisition of Gennum as of January 27, 2013. | ||||
The Company recognized approximately $1.7 million and $24.8 million of transaction and integration related costs in fiscal year 2014 and 2013, respectively associated with the Gennum acquisition in fiscal year 2013. These costs are included in the consolidated statements of operations under “Selling, general and administrative.” | ||||
In May 2012, the Company settled two pre-acquisition contingencies related to legal matters that were included in the purchase price allocation for a total cash payment of $4.2 million. | ||||
For fiscal year 2013 the Company recognized the following net revenue and corresponding net income (loss) attributable to Gennum: | ||||
Fiscal Year Ended | ||||
(in thousands) | 27-Jan-13 | |||
Net revenue - Gennum | $ | 129,558 | ||
Net loss - Gennum | $ | (36,546 | ) | |
Pro Forma Financial Information | ||||
The results of operations of Gennum have been included in the Company’s consolidated statements of operations since the acquisition date of March 20, 2012. The following table reflects the unaudited consolidated pro forma information as if the acquisition had taken place at the beginning of each period presented, after giving effect to certain adjustments including the following for fiscal years 2013: | ||||
• | decrease in cost of goods sold associated with the fair value adjustment related to acquired inventory of $39.4 million for fiscal year 2013; | |||
• | increase in operating expense as a result of the settlement of two pre-acquisition contingencies related to legal matters of $4.2 million for fiscal year 2013; | |||
• | decrease in amortization expense as a result of acquired intangible assets of $1.6 million for fiscal year 2013; | |||
• | decrease in benefit for taxes of $23.4 million associated with the releasing of prior accrued taxes on foreign earnings for fiscal year 2013; | |||
• | increase in interest expense of $1.7 million associated with the $350.0 million term loans entered into to finance the acquisition for fiscal year 2013; and | |||
• | the related tax effects. | |||
Unaudited Consolidated Pro forma Information: | ||||
Fiscal Year Ended | ||||
27-Jan-13 | ||||
(in thousands) | (unaudited) | |||
Revenue | $ | 603,067 | ||
Net income | $ | 56,980 | ||
The unaudited pro forma information presented does not purport to be indicative of the results that would have been achieved had the acquisition been consummated at the beginning of each period presented nor of the results which may occur in the future. The pro forma adjustments are based upon available information and certain assumptions that the Company believes are reasonable. The unaudited pro forma information does not include any adjustments for any restructuring activities, operating efficiencies or cost savings. | ||||
Cycleo SAS (“Cycleo”) | ||||
On March 7, 2012, the Company completed the acquisition of Cycleo, a privately-held company based in France that develops intellectual property (“IP”) for wireless long-range semiconductor products used in smart metering and other industrial and consumer markets. Under the terms of the purchase agreement, Semtech paid the stockholders of Cycleo $5.0 million in cash at closing. | ||||
Total acquisition consideration is allocated to the acquired tangible and intangible assets and assumed liabilities of Cycleo based on their respective estimated fair values as of the acquisition date. Any excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed is allocated to goodwill. The Company expects that all such goodwill will not be deductible for tax purposes. | ||||
The Company completed the purchase price allocation for its acquisition of Cycleo in fiscal year 2013. | ||||
Additionally, pursuant to the terms of the amended earn-out arrangement (“Amended Earn-out”) with the former Cycleo stockholders (“Earn-out Beneficiaries”), the Company potentially may make payments totaling up to approximately $16.0 million based on the achievement of a combination of certain revenue and operating income milestones by Cycleo over a defined period (“Defined Earn-out Period”). In the fourth quarter of fiscal year 2015, the Company and the Earn-Out Beneficiaries agreed to amend the term of the Defined Earn-out Period. Under the original definition, the Defined Earn-out Period covered the period April 30, 2012 to May 1, 2016. Under the amended definition the Defined Earn-Out period covers the period April 27, 2015 to April 26, 2020. | ||||
For certain of the Cycleo stockholders, payment of the earn-out liability is contingent upon employment on the payout date and is accounted for as post-acquisition compensation expense over the service period. The portion of the earn-out liability that is not dependent on continued employment is included in the purchase price allocation at March 7, 2012. See Note 15. | ||||
Net revenues and earnings attributable to Cycleo since the acquisition date were not material. Pro forma results of operations have not been presented as the acquisition was not material to the Company’s consolidated financial statements. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||
Jan. 25, 2015 | ||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||
Investments | Investments | |||||||||||||||||||||||
Investments that have original maturities of three months or less are accounted for as cash equivalents. This includes money market funds, time deposits and U.S. government obligations. Temporary and long-term investments consist of government, bank and corporate obligations, and bank time deposits with original maturity dates in excess of three months. Temporary investments have original maturities in excess of three months, but mature within twelve months of the balance sheet date. Long-term investments have original maturities in excess of twelve months. The Company determines the cost of securities sold based on the specific identification method. Realized gains or losses are reported in “Interest income and other (expense) income, net” on the consolidated statements of operations. | ||||||||||||||||||||||||
The Company classifies its investments as available-for-sale because it may sell some securities prior to maturity. The Company’s investments are subject to market risk, primarily interest rate and credit risks. The Company’s investments are managed by a limited number of outside professional managers that operate within investment guidelines set by the Company. These guidelines include specified permissible investments, minimum credit quality ratings and maximum average duration restrictions and are intended to limit market risk by restricting the Company’s investments to high quality debt instruments with relatively short-term maturities. | ||||||||||||||||||||||||
As of January 25, 2015, all of the Company’s long-term investments had been liquidated. | ||||||||||||||||||||||||
The following table summarizes the Company’s available-for-sale investments: | ||||||||||||||||||||||||
January 25, 2015 | January 26, 2014 | |||||||||||||||||||||||
(in thousands) | Market Value | Adjusted | Gross | Market Value | Adjusted | Gross | ||||||||||||||||||
Cost | Unrealized | Cost | Unrealized | |||||||||||||||||||||
Gain | Gain | |||||||||||||||||||||||
Agency securities | $ | 23,271 | $ | 23,271 | $ | — | $ | 18,258 | $ | 18,257 | $ | 1 | ||||||||||||
Bank time deposits | — | — | — | — | — | — | ||||||||||||||||||
Total investments | $ | 23,271 | $ | 23,271 | $ | — | $ | 18,258 | $ | 18,257 | $ | 1 | ||||||||||||
Agency securities are specific securities that are issued by United States government agencies such as Ginnie Mae, Fannie Mae, Freddie Mac or other federal banks. Due to the expectation of federal backing, these securities usually hold the highest credit rating possible. | ||||||||||||||||||||||||
The following table summarizes the maturities of the Company’s available-for-sale investments: | ||||||||||||||||||||||||
January 25, 2015 | January 26, 2014 | |||||||||||||||||||||||
(in thousands) | Market Value | Adjusted Cost | Market Value | Adjusted Cost | ||||||||||||||||||||
Within 1 year | $ | 23,271 | $ | 23,271 | $ | 14,584 | $ | 14,584 | ||||||||||||||||
After 1 year through 5 years | — | — | 3,674 | 3,673 | ||||||||||||||||||||
Total investments | $ | 23,271 | $ | 23,271 | $ | 18,258 | $ | 18,257 | ||||||||||||||||
Unrealized gains and losses are the result of fluctuations in the market value of the Company’s available-for-sale investments and are included in “Accumulated other comprehensive income” on the consolidated balance sheets. The following table summarizes net unrealized losses arising in the periods presented in addition to the tax associated with these comprehensive income items: | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
(in thousands) | January 25, | January 26, | January 27, | |||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||
Unrealized loss, net of tax | $ | — | $ | (5 | ) | $ | (32 | ) | ||||||||||||||||
Decrease to deferred tax liability | $ | — | $ | (2 | ) | $ | (10 | ) | ||||||||||||||||
The following table summarizes interest income generated from investments and cash and cash equivalents: | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
(in thousands) | January 25, | January 26, | January 27, | |||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||
Interest income | $ | 43 | $ | 342 | $ | 404 | ||||||||||||||||||
During fiscal years 2015 and 2014, the Company made investments in privately traded companies for cash consideration of $7.1 million and $2.5 million, respectively. The Company’s total equity investments in privately traded companies as of January 25, 2015 and January 26, 2014 were $12.1 million and $5.0 million, respectively. The Company accounts for its equity investment under the cost method of accounting since it does not have the ability to exercise significant influence over the investees. The equity investments are included in “Other assets” on the consolidated balance sheet as of January 25, 2015 and January 26, 2014, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||||||||
Jan. 25, 2015 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||||||||
Instruments Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||
Financial assets measured and recorded at fair value on a recurring basis consisted of the following types of instruments: | ||||||||||||||||||||||||||||||||
Fair Value as of January 25, 2015 | Fair Value as of January 26, 2014 | |||||||||||||||||||||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Agency securities | $ | 23,271 | $ | 23,271 | $ | — | $ | — | $ | 17,258 | $ | 13,584 | $ | 3,674 | $ | — | ||||||||||||||||
Bank time deposits | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total available-for-sale securities | 23,271 | 23,271 | — | $ | — | 17,258 | 13,584 | 3,674 | $ | — | ||||||||||||||||||||||
Interest rate cap | 33 | — | 33 | — | 316 | — | 316 | — | ||||||||||||||||||||||||
Total financial assets | $ | 23,304 | $ | 23,271 | $ | 33 | $ | — | $ | 17,574 | $ | 13,584 | $ | 3,990 | $ | — | ||||||||||||||||
Available-for-sale securities included in Level 2 are valued utilizing inputs obtained from an independent third-party service (the “Service”), which uses quoted market prices for identical or comparable instruments rather than direct observations of quoted prices in active markets. The Service gathers observable inputs for all of our fixed income securities from a variety of industry data providers, for example, large custodial institutions and other third-party sources. Once the observable inputs are gathered by the Service, all data points are considered and an average price is determined. The Service’s providers utilize a variety of inputs to determine their quoted prices. The Company reviews and evaluates the values provided by the Service and agrees with the valuation methods and assumptions used in determining the fair value of investments. The Company believes this method provides a reasonable estimate for fair value. | ||||||||||||||||||||||||||||||||
The fair value of the interest rate cap at January 25, 2015 is estimated as described in Note 11 and is included in “Other assets” on the consolidated balance sheet. | ||||||||||||||||||||||||||||||||
Financial assets measured and recorded at fair value on a recurring basis were presented on the Company’s consolidated balance sheets as follows: | ||||||||||||||||||||||||||||||||
Fair Value as of January 25, 2015 | Fair Value as of January 26, 2014 | |||||||||||||||||||||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Cash equivalents | 23,271 | 23,271 | — | — | 13,584 | 13,584 | — | — | ||||||||||||||||||||||||
Long-term investments | — | — | — | — | 3,674 | — | 3,674 | — | ||||||||||||||||||||||||
Other assets | 33 | — | 33 | — | 316 | — | 316 | — | ||||||||||||||||||||||||
Total financial assets | $ | 23,304 | $ | 23,271 | $ | 33 | $ | — | $ | 17,574 | $ | 13,584 | $ | 3,990 | $ | — | ||||||||||||||||
During fiscal years 2015 and 2014, the Company had no transfers of financial assets or liabilities between Level 1, Level 2 or Level 3. As of January 25, 2015 and January 26, 2014, the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted. | ||||||||||||||||||||||||||||||||
Instruments Not Recorded at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||
Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities include: cash and cash equivalents, receivables, net, certain other assets, accounts payable and accrued expenses, accrued personnel costs, and other current liabilities. | ||||||||||||||||||||||||||||||||
The Company’s long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes. The fair value of the Company’s Term Loans (as defined herein) is $95.9 million and Revolving Commitments (as defined herein) is $158.0 million at January 25, 2015 both of which are based on Level 2 inputs which are derived from transactions with similar amounts, maturities, credit ratings and payment terms. | ||||||||||||||||||||||||||||||||
Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis | ||||||||||||||||||||||||||||||||
The Company reduces the carrying amounts of its goodwill, intangible assets, long-lived assets and non-marketable equity securities to fair value when held for sale or determined to be impaired. | ||||||||||||||||||||||||||||||||
For its investment in equity interests, the Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of its cost method investment during fiscal year 2015. |
Inventories
Inventories | 12 Months Ended | |||||||
Jan. 25, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories, consisting of material, material overhead, labor, and manufacturing overhead, are stated at the lower of cost (first-in, first-out) or market and consist of the following: | ||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||
Raw materials | $ | 1,624 | $ | 1,971 | ||||
Work in progress | 36,759 | 45,508 | ||||||
Finished goods | 35,285 | 12,788 | ||||||
Inventories | $ | 73,668 | $ | 60,267 | ||||
During the fourth quarter of fiscal year 2014, the Company reduced the cost basis of inventories by $15.0 million as a result of its strategic decision to reduce investments in the optical long-haul market which is included in “Cost of sales - lower of cost or market write down” in the consolidated statements of operations. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||||||||||
Jan. 25, 2015 | ||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||||||||||
The following is a summary of property and equipment, at cost less accumulated depreciation: | ||||||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||||||
Property | $ | 9,022 | $ | 9,022 | ||||||||||||
Buildings | 18,657 | 18,633 | ||||||||||||||
Leasehold improvements | 10,429 | 10,109 | ||||||||||||||
Machinery and equipment | 135,956 | 132,549 | ||||||||||||||
Enterprise resource planning systems | 26,890 | — | ||||||||||||||
Furniture and office equipment | 33,780 | 34,263 | ||||||||||||||
Construction in progress | 1,325 | 18,155 | ||||||||||||||
Property, plant and equipment, gross | 236,059 | 222,731 | ||||||||||||||
Less accumulated depreciation and amortization | (120,588 | ) | (112,610 | ) | ||||||||||||
Property, plant and equipment, net | $ | 115,471 | $ | 110,121 | ||||||||||||
As of January 25, 2015, construction in progress consists primarily of machinery and equipment. As of January 26, 2014 construction in progress consists primarily of capitalized internal use software costs. | ||||||||||||||||
During the fiscal year ended January 25, 2015, the Company recorded impairment charges against certain property, plant and equipment assets as a result of its strategic decision to reduce its investment in the defense and microwave communications infrastructure market and further reduction of its investment in the optical long-haul markets. These impairment charges relate primarily to limited sales volumes through the remaining life of the assets. In determining the amount of impairment, the Company used a sales comparison method and cost approach to estimate the fair value of property, plant and equipment, and an income approach to estimate the fair value of intangible assets. The Company concluded that the Systems Innovation reporting unit is also the asset group for impairment testing purposes. The impaired assets are currently being used by the Company. The categorization and classification of these charges are summarized below: | ||||||||||||||||
(in thousands) | Machinery and equipment | Furniture and office equipment | Leasehold improvements | Total | ||||||||||||
Cost of sales | $ | 2,799 | $ | 10 | $ | 1 | $ | 2,810 | ||||||||
Product development and engineering | 3,477 | 33 | — | 3,510 | ||||||||||||
Selling, general and administrative expenses | 5 | — | 1 | 6 | ||||||||||||
Total impairment charge | $ | 6,281 | $ | 43 | $ | 2 | $ | 6,326 | ||||||||
During the fiscal year ended January 26, 2014, the Company recorded impairment charges against certain property, plant and equipment assets as a result of its strategic decision to reduce its investment in the optical long-haul market. These impairment charges relate primarily to excess manufacturing capacity. In determining the amount of impairment, the Company used a cost approach to estimate the fair value of test equipment, computer software, leasehold improvements and furniture and fixtures. The sales comparison approach was used to value computer hardware. The Company concluded that the former Advanced Communication reporting unit, which subsequently became part of the Signal Integrity and Timing product group (the Signal Integrity product group since the first quarter of fiscal 2015), is also the asset group for impairment testing purposes. See Note 19. The impaired assets are currently being used by the Company. The categorization and classification of these charges are summarized below: | ||||||||||||||||
(in thousands) | Machinery and equipment | Furniture and office equipment | Leasehold improvements | Total | ||||||||||||
Cost of sales | $ | 4,019 | $ | 5 | $ | 317 | $ | 4,341 | ||||||||
Product development and engineering | 2,173 | 12 | 2 | 2,187 | ||||||||||||
Selling, general and administrative expenses | 23 | 69 | 222 | 314 | ||||||||||||
Total impairment charge | $ | 6,215 | $ | 86 | $ | 541 | $ | 6,842 | ||||||||
The net book value of equipment and machinery that are consigned to a foundry in China is $7.6 million and $8.1 million as of January 25, 2015 and January 26, 2014, respectively. | ||||||||||||||||
Depreciation expense was $21.1 million, $21.8 million, and $17.9 million in fiscal years 2015, 2014, and 2013, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||
Jan. 25, 2015 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||||||||||||
Goodwill – Changes in the carrying amount of goodwill by applicable reporting unit were as follows: | ||||||||||||||||||||||||||
(in thousands) | Signal Integrity | Gennum (1) | Advanced Communications (1) | Wireless, Sensing & Timing | Total | |||||||||||||||||||||
Balance as of January 27, 2013 | $ | — | $ | 261,891 | $ | 116,686 | $ | 15,007 | $ | 393,584 | ||||||||||||||||
Impairments | — | — | (116,686 | ) | — | (116,686 | ) | |||||||||||||||||||
Transfers | 261,891 | (261,891 | ) | — | — | — | ||||||||||||||||||||
Balance as of January 26, 2014 | $ | 261,891 | $ | — | $ | — | $ | 15,007 | $ | 276,898 | ||||||||||||||||
Acquisitions | — | — | — | 3,421 | 3,421 | |||||||||||||||||||||
Balance as of January 26, 2015 | $ | 261,891 | $ | — | $ | — | $ | 18,428 | $ | 280,319 | ||||||||||||||||
-1 | In the fourth quarter of fiscal year 2014, the Gennum and former Advanced Communications reporting units were integrated to form the new reporting unit Signal Integrity and Timing, which in the first quarter of fiscal 2015 became the new reporting unit Signal Integrity with Timing becoming a part of Wireless, Sensing and Timing. There were no transfers of goodwill associated with the fiscal 2015 realignment. | |||||||||||||||||||||||||
Goodwill was tested for impairment at the reporting unit level as of November 30, 2014 and November 30, 2013, the dates of the Company’s annual impairment review for fiscal years 2015 and 2014, respectively. The Company estimated the fair values using an income approach, as well as other generally accepted valuation methodologies. The cash flows for each reporting unit were based on discrete financial forecasts developed by management for planning purposes. Cash flows beyond the discrete forecasts were estimated using a terminal value calculation, which incorporated historical and forecasted financial trends for each identified reporting unit and considered perpetual earnings growth rates for publicly traded peer companies. Future cash flows were discounted to present value by incorporating appropriate present value techniques. Specifically, the income approach valuations included the following assumptions: | ||||||||||||||||||||||||||
November 30, 2013 | November 30, 2014 | |||||||||||||||||||||||||
Discount rate | 11.0% - 14.0% | 12.0% - 15.0% | ||||||||||||||||||||||||
Perpetual growth rate | 3.00% | 3.00% | ||||||||||||||||||||||||
Tax rate | 13.4% - 18.0% | 10.1% - 28.1% | ||||||||||||||||||||||||
Risk-free rate | 3.50% | 2.60% | ||||||||||||||||||||||||
Peer company beta | 1.0 - 1.5 | 1.0 - 1.8 | ||||||||||||||||||||||||
In addition to its annual review, the Company performs a test of impairment when indicators of impairment are present. As of January 25, 2015, there were no indications of impairment of the Company's goodwill balances. | ||||||||||||||||||||||||||
In December 2013, goodwill relating to the former Advanced Communications reporting unit was determined to be impaired by $116.7 million, prior to its integration with the Gennum reporting unit into the former Signal Integrity and Timing reporting unit, as a result of a reduction in forecasted revenue resulting from the Company's decision to reduce investments in the optical long-haul market. This impairment is included in the consolidated statements of operations under “Goodwill impairment.” See Note 19. | ||||||||||||||||||||||||||
Purchased Intangibles - The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions and technology licenses purchased, which continue to be amortized: | ||||||||||||||||||||||||||
January 25, 2015 | January 26, 2014 | |||||||||||||||||||||||||
(in thousands) | Estimated | Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||
Useful Life | Carrying | Amortization | Amount | Carrying | Amortization | Amount | ||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||
Core technologies | 6-8 years | $ | 134,155 | $ | (53,286 | ) | $ | 80,869 | $ | 146,925 | $ | (35,357 | ) | $ | 111,568 | |||||||||||
Customer relationships | 7-10 years | 28,030 | (11,480 | ) | 16,550 | 28,630 | (7,505 | ) | 21,125 | |||||||||||||||||
Technology licenses (1) | 2 years | 263 | (169 | ) | 94 | 3,842 | (367 | ) | 3,475 | |||||||||||||||||
Other intangibles assets | 1-5 years | 6,600 | (6,513 | ) | 87 | 6,600 | (5,824 | ) | 776 | |||||||||||||||||
Total finite-lived intangible assets | $ | 169,048 | $ | (71,448 | ) | $ | 97,600 | $ | 185,997 | $ | (49,053 | ) | $ | 136,944 | ||||||||||||
-1 | Technology licenses relate to licensing agreements entered into by the Company that are used in research and development activities and have alternative future uses. Amortization expense related to technology licenses is reported as “Product development and engineering” in the consolidated statements of operations. | |||||||||||||||||||||||||
The Company reviews finite-lived intangible assets for impairment when there are indicators of impairment, by comparing the carrying amount of the asset to the future discounted cash flows that asset is expected to generate. In December 2014, certain intangible assets relating to the Systems Innovation reporting unit were determined to be impaired as a result of the Company's strategic decision to reduce its investment in the defense and microwave communications markets and its additional reductions in the long-haul optical market. | ||||||||||||||||||||||||||
In December 2013, certain intangible assets relating to the former Advanced Communications reporting unit were determined to be impaired prior to its integration with the Gennum reporting unit into the Signal Integrity and Timing reporting unit (the Signal Integrity reporting unit since the first quarter of fiscal 2015), as a result of the reduction in forecasted revenue resulting from the Company’s decision to reduce investments in the optical long-haul market. Impairments for technology licenses are included in “Product development and engineering” on the consolidated statements of operations. The impairment of core technologies and customer relationships is included in “Intangible asset impairments” on the consolidated statements of operations. Impairment charges for these items, which resulted in a new basis for the affected intangible assets, are included in the consolidated statements of operations as follows: | ||||||||||||||||||||||||||
(in thousands) | 25-Jan-15 | 26-Jan-14 | 27-Jan-13 | |||||||||||||||||||||||
Product development and engineering | $ | 3,119 | $ | 2,354 | $ | — | ||||||||||||||||||||
Intangible asset impairments | 11,636 | 29,938 | 700 | |||||||||||||||||||||||
Impairment of finite-lived intangible assets | $ | 14,755 | $ | 32,292 | $ | 700 | ||||||||||||||||||||
The following table sets forth the Company’s additions to finite-lived intangible assets resulting from purchases, additions from acquisitions, and transfers from IPR&D: | ||||||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | |||||||||||||||||||||||||
Gross carrying value at January 27, 2013 | $ | 228,618 | ||||||||||||||||||||||||
Purchased intangible assets | 833 | |||||||||||||||||||||||||
Reduction of finite-lived intangible assets | (501 | ) | ||||||||||||||||||||||||
Transfers from in-process research and development | 25,100 | |||||||||||||||||||||||||
Decrease in gross carrying value due to impairment of finite-lived intangible assets | (68,053 | ) | ||||||||||||||||||||||||
Gross carrying value at January 26, 2014 | 185,997 | |||||||||||||||||||||||||
Purchased intangible assets | 1,100 | |||||||||||||||||||||||||
Acquired intangible assets | 1,430 | |||||||||||||||||||||||||
Decrease in gross carrying value due to impairment of finite-lived intangible assets | (19,479 | ) | ||||||||||||||||||||||||
Gross carrying value at January 25, 2015 | $ | 169,048 | ||||||||||||||||||||||||
Amortization expense related to finite-lived intangible assets is reported as “Intangible amortization” in the consolidated statements of operations. The estimated annual amount of future amortization expense for finite-lived intangible assets is expected to be as follows: | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
To be recognized in: | Core Technologies | Customer relationships | Technology licenses | Other Intangibles | Total | |||||||||||||||||||||
Fiscal year 2016 | $ | 18,641 | $ | 4,000 | $ | 50 | $ | 87 | $ | 22,778 | ||||||||||||||||
Fiscal year 2017 | 18,641 | 4,000 | 44 | — | 22,685 | |||||||||||||||||||||
Fiscal year 2018 | 18,641 | 4,000 | — | — | 22,641 | |||||||||||||||||||||
Fiscal year 2019 | 15,229 | 4,000 | — | — | 19,229 | |||||||||||||||||||||
Fiscal year 2020 | 7,398 | 550 | — | — | 7,948 | |||||||||||||||||||||
Thereafter | 2,319 | — | — | — | 2,319 | |||||||||||||||||||||
Total expected amortization expense | $ | 80,869 | $ | 16,550 | $ | 94 | $ | 87 | $ | 97,600 | ||||||||||||||||
The following table sets forth the Company’s indefinite-lived intangible assets from additions to IPR&D, acquisitions, impairments, and transfers to core technologies: | ||||||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | |||||||||||||||||||||||||
Net carrying value at January 27, 2013 | $ | 31,700 | ||||||||||||||||||||||||
In-process research and development through acquisitions | — | |||||||||||||||||||||||||
In-process research and development impairment | (2,600 | ) | ||||||||||||||||||||||||
Transfers to core technologies | (25,100 | ) | ||||||||||||||||||||||||
Net carrying value at January 26, 2014 | $ | 4,000 | ||||||||||||||||||||||||
In-process research and development through acquisitions | — | |||||||||||||||||||||||||
In-process research and development impairment | — | |||||||||||||||||||||||||
Transfers to core technologies | — | |||||||||||||||||||||||||
Net carrying value at January 25, 2015 | $ | 4,000 | ||||||||||||||||||||||||
The Company reviews indefinite-lived intangible assets for impairment as of November 30, each year, by comparing the carrying amount of the asset to the future discounted cash flows that asset is expected to generate. | ||||||||||||||||||||||||||
When performing the annual impairment assessment for fiscal year 2015, the fair value of the IPR&D project was determined using an income approach. The valuation measured the returns attributable to the IPR&D project, discounted to present value using a risk-adjusted rate of return, including, as appropriate, any tax benefits derived from amortizing the intangible asset for tax purposes. Significant factors considered in the calculation of the rate of return were the weighted-average cost of capital and return on assets, as well as the risk inherent in the development process, including the likelihood of achieving technology success and market acceptance. The key unobservable inputs utilized in the model include a discount rate of 12.0%, a market participant tax rate of 28.1%, and expected future cash flows based on current product and market data. In addition to its annual review, the Company performs a test of impairment when indicators are present. As of January 25, 2015, there were no indications of impairment in the balance of the IPR&D asset. | ||||||||||||||||||||||||||
When performing the annual impairment assessment for fiscal year 2014, the fair value of the IPR&D projects was determined using an income approach or replacement cost approach as applicable. The replacement cost approach was used for IPR&D projects that were considered long-term core investments and were not anticipated to be profitable for a period of time. IPR&D projects which were valued using an income approach, measured the returns attributable to each specific IPR&D project, discounted to present value using a risk-adjusted rate of return, including as appropriate, any tax benefits derived from amortizing the intangible assets for tax purposes. Significant factors considered in the calculation of the rate of return are the weighted average cost of capital and return on assets, as well as the risk inherent in the development process, including the likelihood of achieving technology success and market acceptance. For IPR&D projects valued using a replacement cost approach, value was estimated by developing the cost to either replace or reproduce (replicate) the IPR&D to its current state. The key unobservable inputs utilized in the model includes a discount rate of 12.0%, a market participant tax rate of 19.0%, and a probability adjusted level of future cash flows based on current product and market data. In addition to its annual review, the Company performs a test of impairment when indicators of impairment are present. As of January 26, 2014, there were no indications of impairment in the balance of IPR&D assets. In the second quarter of fiscal year 2014, the Company recorded $2.6 million of impairment as a result of its decision to cease development of certain IPR&D associated with the Sierra Monolithics, Inc. (“SMI”) acquisition that was completed in fiscal year 2010. This impairment expenses are included in “Intangible asset impairments” in the consolidated statements of operations. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Jan. 25, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Liabilities | Accrued Liabilities | |||||||
The following is a summary of accrued liabilities for fiscal years 2015 and 2014: | ||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||
Compensation | $ | 20,642 | $ | 17,875 | ||||
Equity awards accounted for as a liability | 718 | 917 | ||||||
Deferred compensation | 527 | 1,478 | ||||||
Accrued sales and marketing expenses | 5,028 | 2,227 | ||||||
Accrued professional fees | 4,019 | 3,990 | ||||||
Accrued interest expense | 93 | 287 | ||||||
Income taxes payable | 6,153 | 3,675 | ||||||
Accrued taxes | 32 | 49 | ||||||
Accrued restructuring | 282 | 2,632 | ||||||
Other | 12,260 | 11,018 | ||||||
Accrued liabilities | $ | 49,754 | $ | 44,148 | ||||
Credit_Facilities
Credit Facilities | 12 Months Ended | |||
Jan. 25, 2015 | ||||
Debt Instruments [Abstract] | ||||
Credit Facilities | Credit Facilities | |||
On March 20, 2012, the Company entered into a credit agreement with certain lenders (the “Prior Lenders”) and Jefferies Finance LLC, as administrative and collateral agent (the “Prior Credit Agreement”). In accordance with the Prior Credit Agreement, the Prior Lenders provided the Company with senior secured first lien credit facilities in an aggregate principal amount of $350.0 million (the “Prior Facilities”), consisting of term A loans in an aggregate principal amount of $100.0 million (the “Term A Loans”) and term B loans in an aggregate principal amount of $250.0 million (the “Term B Loans”). The initial carrying amounts totaled $99.5 million (net of original issue discount of $0.5 million) for the Term A Loans and $247.5 million (net of original issue discount of $2.5 million) for the Term B Loans. | ||||
On May 2, 2013 (the “Closing Date”), the Company, with each of its domestic subsidiaries as guarantors (the “Guarantors”), entered into a new credit agreement (the “New Credit Agreement”) with the lenders (the “Lenders”) and HSBC Bank USA, National Association, as administrative agent and as swing line lender and letter of credit issuer. In accordance with the New Credit Agreement, the Lenders provided Semtech with senior secured first lien credit facilities in an aggregate principal amount of $400.0 million (the “New Facilities”), consisting of term loans in an aggregate principal amount of $150.0 million (the “Term Loans”) and revolving commitments in an aggregate principal amount of $250.0 million (the “Revolving Commitments”). The Revolving Commitments can be used as follows: up to $40.0 million for letters of credit, up to $25.0 million for swing line loans (as defined below), and up to $40.0 million for revolving loans and letters of credit in certain currencies other than U.S. Dollars (“Alternative Currencies”). Swing line loans are base rate loans made in immediately available funds denominated in dollars by a swing line lender in its sole and absolute discretion. As of January 25, 2015, there were no amounts outstanding under the letters of credit, swing line loans, and Alternative Currencies. | ||||
At the Closing Date, $326.6 million of borrowings were outstanding under the New Facilities consisting of $149.3 million of Term Loans and $177.3 million of Revolving Commitments, net of $1.4 million of debt discounts resulting from amounts paid to the Lenders. As a result of debt refinancing and changes in some of the Lenders, $0.8 million of debt discounts were expensed in the second quarter of fiscal year 2014 and $0.6 million was capitalized as of May 2, 2013 and is being amortized using the effective interest method over the five year term of the New Credit Agreement. The expense is included in “Interest expense” in the consolidated statements of operations. The proceeds from the New Credit Facilities were used to repay in full the outstanding obligations of $327.5 million under the Prior Credit Facilities, which was terminated. The portion of the transaction associated with Prior Lenders was accounted for as a debt modification. | ||||
Deferred financing costs incurred in the second quarter of fiscal 2014, in connection with the New Facilities, were approximately $2.2 million, of which $1.0 million was expensed, inclusive of certain legal costs directly related to the refinancing. Of this amount $1.2 million was capitalized and is being amortized using the effective interest method over the five year term of the New Facilities. The expense is included in “Interest expense” in the consolidated statements of operations. | ||||
As a result of the debt refinancing, the Company recorded a $7.1 million loss on debt modification from unamortized deferred financing costs and original issue discount associated with the Prior Credit Facilities in the fiscal year ended January 26, 2014. The remaining $1.7 million of unamortized deferred financing costs and original issue discount associated with the Prior Credit Facilities is being amortized over the five year term of the New Facilities. The expense is included in “Interest expense” in the consolidated statements of operations. | ||||
The New Credit Agreement provides that, subject to certain conditions, Semtech may request, at any time and from time to time, the establishment of one or more additional term loan facilities and/or increases to the Revolving Commitments in an aggregate principal amount not to exceed $100 million, the proceeds of which may be used for working capital and general corporate purposes. | ||||
Interest on loans made under the New Credit Agreement in U.S. Dollars accrues, at Semtech’s option, at a rate per annum equal to (1) the Base Rate (as defined below) plus a margin ranging from 0.25% to 1.25% depending upon Semtech’s consolidated leverage ratio or (2) LIBOR (determined with respect to deposits in U.S. Dollars) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. The “Base Rate” is equal to a fluctuating rate equal to the highest of (a) the prime rate, (b) ½ of 1% above the federal funds effective rate or (c) one-month LIBOR (determined with respect to deposits in U.S. Dollars) plus 1%. Alternative Currencies, other than Canadian Dollars, accrues at a rate per annum equal to LIBOR (determined with respect to deposits in the applicable Alternative Currency) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. Interest on loans in Canadian Dollars accrues at a rate per annum equal to the CDOR Rate (as defined below) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. The “CDOR Rate” for any interest period is the rate equal to the sum of: (a) the rate determined by Administrative Agent with reference to the arithmetic average of the discount rate quotations of all institutions listed for CAD Dollar-denominated bankers’ acceptances displayed and identified on the “Reuters Screen CDOR Page” and (b) 0.10% per annum. CDOR Commitment fees on the unused portion of the Revolving Commitments accrue at a rate per annum ranging from 0.20% to 0.45% depending upon Semtech’s consolidated leverage ratio. Interest is paid monthly for a base rate loan and swing line loan and quarterly for an Euro dollar rate loan. Interest is payable on the revolving credit maturity date in the case of Revolving Commitments and the additional term maturity date in the case of additional Term Loans, respectively. As of January 25, 2015, the interest rates payable on both the Term Loans and the Revolving Commitments was 1.92%. | ||||
Scheduled maturities of current and long-term Term Loans are as follows: | ||||
(in thousands) | ||||
Fiscal Year Ending: | ||||
2016 | $ | 18,750 | ||
2017 | 18,750 | |||
2018 | 24,375 | |||
2019 | 34,000 | |||
2020 | — | |||
Total debt | $ | 95,875 | ||
There are no scheduled principal payments for the Revolving Commitments which had an outstanding balance of $158.0 million at January 25, 2015 and is due on or before May 1, 2018. The Company may, upon notice to the administrative agent, at any time or from time to time voluntarily prepay the Term Loans or Revolving Commitments in whole or in part without premium or penalty. In the second quarter of fiscal year 2015, the Company made a voluntary payment of $25.0 million against the Revolving Commitments. In the second quarter of fiscal year 2014, the Company made an early prepayment of $26.0 million against the Term Loans. | ||||
All obligations of Semtech under the New Facilities are unconditionally guaranteed by each of the Guarantors and are secured by a first priority security interest in substantially all of the assets of Semtech and the Guarantors, subject to certain customary exceptions. | ||||
The Company is subject to customary covenants, including the maintenance of a minimum interest ratio of 3.50:1.00 and a maximum total consolidated leverage ratio of 3.00:1.00. The Company was in compliance with such financial covenants as of January 25, 2015. | ||||
The New Facilities also contain customary provisions pertaining to events of default. If any event of default occurs, the principal, interest, and any other monetary obligations on all the then outstanding amounts can become due and payable immediately. |
Interest_Rate_Derivative_Agree
Interest Rate Derivative Agreement | 12 Months Ended |
Jan. 25, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Derivative Agreement | Interest Rate Derivative Agreement |
In June 2012, in connection with the Prior Credit Agreement, the Company entered into an interest rate cap agreement (“Cap Agreement”) with a $175 million notional amount and an upfront payment of $1.1 million. The Cap Agreement matures on February 22, 2016 and caps interest rates on one-month LIBOR at 1.00%. The Company did not have any interest rate derivative agreements outstanding prior to June 2012. | |
The purpose of the Cap Agreement is to hedge the Company’s exposure to fluctuations in LIBOR-indexed interest payments. Although the Prior Credit Agreement was terminated on May 2, 2013, the New Credit Agreement, in an aggregate principal amount of $400.0 million, permits the Company to elect LIBOR or Base Rate loans. See Note 10. Since the Company intends to make interest payments based on one-month LIBOR-indexed rates and will not elect interest rates based on alternative indices during the term of the Cap Agreement, the Cap Agreement was re-designated as a hedge of one month LIBOR-indexed interest payments associated with the New Credit Agreement. The effectiveness of the interest rate cap was assessed and the Cap Agreement continues to be an effective cash flow hedge of interest rate risk for the Company. No ineffectiveness was recorded during the fiscal year ended January 25, 2015. | |
The Cap Agreement is recorded at estimated fair value at the end of each reporting period. The fair value of the Cap Agreement at January 25, 2015 was determined using level 2 inputs, including observable market-based inputs such as interest rate curves and implied volatilities for similar instruments with similar contractual terms. | |
The Company has determined that the Cap Agreement is highly effective in offsetting future variable interest payments associated with the hedged portion of the Company’s New Credit Agreement. Gains or losses associated with the value of the Cap Agreement are initially reported in other comprehensive income or loss and amortized as an increase to interest expense through the maturity of the Cap Agreement. The amount of unrealized losses on the Cap Agreement recorded in other comprehensive loss at January 25, 2015 that is expected to be reclassified into interest expense in the next twelve months, if interest rates remain unchanged, is approximately $0.7 million. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||
Jan. 25, 2015 | |||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||||||||||||
Financial Statement Effects and Presentation. The following table shows total stock-based compensation expense included in the consolidated statements of operations for fiscal years 2015, 2014 and 2013: | |||||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||||||||||||
Cost of sales | $ | 1,621 | $ | 1,664 | $ | 1,218 | |||||||||||||||||
Selling, general and administrative | 17,387 | 12,071 | 14,965 | ||||||||||||||||||||
Product development and engineering | 10,621 | 10,854 | 8,345 | ||||||||||||||||||||
Stock-based compensation, pre-tax | $ | 29,629 | $ | 24,589 | $ | 24,528 | |||||||||||||||||
Net change in stock-based compensation capitalized out of (into) inventory | $ | 111 | $ | 36 | $ | (33 | ) | ||||||||||||||||
The tax benefit realized from option exercise activity for fiscal years 2015, 2014 and 2013 was $0.0 million, $12.8 million and $0.0 million, respectively. | |||||||||||||||||||||||
Share-based Payment Arrangements | |||||||||||||||||||||||
The Company has various equity award plans that provide for granting stock-based awards to employees and non-employee directors of the Company. The plans provide for the granting of several available forms of stock compensation. As of January 25, 2015, the Company has granted options and restricted stock under the plans and has also issued some stock-based compensation outside of the plans, including options and restricted stock issued as inducements to join the Company. | |||||||||||||||||||||||
Grant Date Fair Values and Underlying Assumptions; Contractual Terms | |||||||||||||||||||||||
The Company uses the Black-Scholes pricing model to value options. For awards classified as equity, stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as an expense over the employee’s or director’s requisite service period. For awards classified as liabilities, stock-based compensation cost is measured at fair value at the end of each reporting date until the date of settlement, and is recognized as an expense over the employee’s or director’s requisite service period. Expected volatilities are based on historical volatility using daily and monthly stock price observations. | |||||||||||||||||||||||
The following table summarizes the assumptions used in the Black-Scholes model to determine the fair value of options granted in fiscal years 2015, 2014 and 2013: | |||||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||||
January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||||||||||||||
Expected lives, in years | 3.0 - 4.4 | 4.1 - 4.7 | 4.4 - 4.6 | ||||||||||||||||||||
Estimated volatility | 33% - 40% | 30% - 35% | 38% - 41% | ||||||||||||||||||||
Dividend yield | — | — | — | ||||||||||||||||||||
Risk-free interest rate | 0.74% - 1.47% | 0.65% - 1.6% | 0.66% - 0.73% | ||||||||||||||||||||
Weighted average fair value on grant date | $7.18 | $8.92 | $9.52 | ||||||||||||||||||||
The estimated fair value of restricted stock awards was calculated based on the market price of the Company’s common stock on the date of grant. Some of the restricted stock units awarded in fiscal year 2015 and prior years are classified as liabilities rather than equity. For awards classified as liabilities, the value of these awards is re-measured at the end of each quarter. | |||||||||||||||||||||||
Stock Option Awards. The Company has historically granted stock option awards to both employees and non-employee directors. The grant date for these awards is equal to the measurement date. These awards were valued as of the measurement date and are amortized over the requisite vesting period (typically 3-4 years). | |||||||||||||||||||||||
A summary of the activity for stock option awards for fiscal years 2015, 2014 and 2013 is presented below: | |||||||||||||||||||||||
(in thousands, except for per share amounts) | Number | Weighted | Aggregate | Aggregate | Number of | Weighted | |||||||||||||||||
of | Average | Intrinsic | Unrecognized | Shares | Average | ||||||||||||||||||
Shares | Exercise | Value (1) | Compensation | Exercisable | Contractual | ||||||||||||||||||
Price | Term (years) | ||||||||||||||||||||||
(per share) | |||||||||||||||||||||||
Balance at January 29, 2012 | 3,690 | $ | 16.94 | $ | 44,435 | $ | 4,699 | 2,767 | |||||||||||||||
Options granted | 258 | 28.21 | |||||||||||||||||||||
Options exercised | (1,254 | ) | 15.7 | 14,508 | |||||||||||||||||||
Options cancelled/forfeited | (115 | ) | 25.3 | ||||||||||||||||||||
Balance at January 27, 2013 | 2,579 | 18.29 | 29,789 | 3,817 | 1,937 | ||||||||||||||||||
Options granted | 376 | 30.62 | |||||||||||||||||||||
Options exercised | (970 | ) | 16.61 | 16,052 | |||||||||||||||||||
Options cancelled/forfeited | (50 | ) | 26.1 | ||||||||||||||||||||
Balance at January 26, 2014 | 1,935 | 21.33 | 7,722 | 4,354 | 1,275 | ||||||||||||||||||
Options granted | 426 | 24.87 | |||||||||||||||||||||
Options exercised | (554 | ) | 16.04 | 5,446 | |||||||||||||||||||
Options cancelled/forfeited | (44 | ) | 26.69 | ||||||||||||||||||||
Balance at January 25, 2015 | 1,763 | $ | 23.7 | $ | 7,722 | $ | 4,688 | 986 | |||||||||||||||
Exercisable at January 26, 2015 | 986 | $ | 21.03 | $ | 6,582 | 2.3 | |||||||||||||||||
Vested and expected to vest after January 26, 2015 | 1,670 | $ | 23.6 | $ | 7,498 | 3.3 | |||||||||||||||||
-1 | Represents the difference between the exercise price and the value of the Company’s stock at the time of exercise, for exercised grants. For outstanding awards, represents the difference between the exercise price and the value of the Company’s stock at fiscal year end. | ||||||||||||||||||||||
The following table summarizes information about stock options outstanding at January 25, 2015: | |||||||||||||||||||||||
(number of shares in thousands) | Number | Weighted Average | Weighted Average | ||||||||||||||||||||
of | Exercise Price | Contractual Term | |||||||||||||||||||||
Shares | (per share) | (years) | |||||||||||||||||||||
Price Range Analysis - Outstanding | |||||||||||||||||||||||
$1.15 - $4.53 | 4 | $ | 4.04 | 2.6 | |||||||||||||||||||
$7.97 - $13.76 | 24 | 10.57 | 1 | ||||||||||||||||||||
$15.54 - $23.33 | 697 | 18.42 | 1.8 | ||||||||||||||||||||
$23.56 - $35.17 | 1,037 | 27.63 | 4.6 | ||||||||||||||||||||
Total outstanding | 1,762 | $ | 23.7 | 3.5 | |||||||||||||||||||
Price Range Analysis - Exercisable | |||||||||||||||||||||||
$1.15 - $4.53 | 4 | $ | 4.04 | 2.6 | |||||||||||||||||||
$7.97 - $13.76 | 24 | 10.57 | 1 | ||||||||||||||||||||
$15.54 - $23.33 | 679 | 18.31 | 1.8 | ||||||||||||||||||||
$23.56 - $35.17 | 279 | 28.8 | 3.7 | ||||||||||||||||||||
Total exercisable | 986 | $ | 21.03 | 2.3 | |||||||||||||||||||
The following table summarizes information regarding unvested stock option awards at January 25, 2015: | |||||||||||||||||||||||
(in thousands, except for per share amounts) | Number | Weighted Average | Weighted Average | Weighted Average | Total Fair Value | ||||||||||||||||||
of | Exercise Price | Grant Date | Remaining Expense | ||||||||||||||||||||
Shares | (per share) | Fair Value | Period (years) | ||||||||||||||||||||
(per share) | |||||||||||||||||||||||
Balance at January 29, 2012 | 924 | $ | 18.47 | $ | 6.99 | 1.8 | $ | 6,452 | |||||||||||||||
Options granted | 258 | 28.21 | 9.52 | 2,457 | |||||||||||||||||||
Options vested | (484 | ) | 16.42 | 6.49 | 3,144 | ||||||||||||||||||
Options forfeited | (56 | ) | 21.69 | 7.74 | 432 | ||||||||||||||||||
Balance at January 27, 2013 | 642 | 23.66 | 8.31 | 1.9 | 5,333 | ||||||||||||||||||
Options granted | 376 | 30.62 | 8.92 | 3,355 | |||||||||||||||||||
Options vested | (310 | ) | 21.58 | 7.77 | 2,406 | ||||||||||||||||||
Options forfeited | (48 | ) | 26.16 | 8.53 | 422 | ||||||||||||||||||
Balance at January 26, 2014 | 660 | 28.39 | 8.88 | 2.3 | 5,856 | ||||||||||||||||||
Options granted | 426 | 24.87 | 7.18 | 3,058 | |||||||||||||||||||
Options vested | (275 | ) | 27.03 | 8.77 | 2,414 | ||||||||||||||||||
Options forfeited | (35 | ) | 26.32 | 8.02 | 283 | ||||||||||||||||||
Balance at January 25, 2015 | 776 | $ | 27.09 | $ | 8.01 | 2.4 | $ | 6,217 | |||||||||||||||
Restricted Stock. The Company has not granted any restricted stock to employees since fiscal year 2009. The grant date for these awards is equal to the measurement date. These awards are valued as of the measurement date and recognized as compensation expense over the requisite vesting period (typically 3-4 years). | |||||||||||||||||||||||
The following table summarizes the activity for restricted stock awards for fiscal year 2013 (there was no activity in fiscal years 2015 and 2014): | |||||||||||||||||||||||
(in thousands, except for per share amounts) | Number of | Weighted Average | Aggregate | Aggregate | Weighted Average | ||||||||||||||||||
Shares | Grant Date | Intrinsic | Unrecognized | Period Over | |||||||||||||||||||
Fair Value | Value (1) | Compensation | Which Expected | ||||||||||||||||||||
(per share) | to be Recognized | ||||||||||||||||||||||
(in years) | |||||||||||||||||||||||
Balance at January 29, 2012 | 32 | $ | 14.57 | $ | 81 | 0.1 | |||||||||||||||||
Restricted stocks granted | — | ||||||||||||||||||||||
Restricted stocks vested | (32 | ) | 14.57 | $ | 902 | ||||||||||||||||||
Restricted stocks cancelled | — | ||||||||||||||||||||||
Balance at January 27, 2013 | — | $ | — | $ | — | 0 | |||||||||||||||||
-1 | Represents the value of Semtech stock on the date that the restricted stock vested. | ||||||||||||||||||||||
Performance Units. The Company grants performance-based vesting restricted stock units to select employees. These awards have a performance condition in addition to a service condition. The performance condition generally relates to the Company’s revenue and operating income measured against internal goals. Under the terms of these awards, assuming the highest level of performance with no cancellations due to forfeitures, the maximum number of shares that can be earned in the aggregate is 854,064. In this scenario, the maximum number of shares that could be issued thereunder would be 427,032 and the Company would have a liability accrued in the consolidated balance sheet equal to the value of 427,032 shares on the settlement date, which would be settled in cash. Only cash performance unit awards are classified as liabilities and the value of these awards is re-measured at each reporting date. At January 25, 2015, 0% of the units from the fiscal year 2013 grant vested and were cancelled in fiscal 2015. At January 25, 2015, the performance metrics associated with the outstanding awards issued in fiscal years 2015 and 2014, are expected to be met at a level which would result in vesting at 95% and 75% of target, respectively. | |||||||||||||||||||||||
The following table summarizes the activity for performance units during fiscal years 2015, 2014 and 2013: | |||||||||||||||||||||||
Subject to | Subject to | Weighted | Aggregate | Period Over | |||||||||||||||||||
Share Settlement | Cash Settlement | Average | Which Expected | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||||
(in thousands, except for per share amounts) | Total | Units | Units | Recorded | Fair Value | Unrecognized | to be Recognized | ||||||||||||||||
Units | Liability | (per share) | Compensation | (in years) | |||||||||||||||||||
Balance at January 29, 2012 | 360 | 180 | 180 | $ | 6,034 | $ | 16.65 | $ | 4,829 | 1 | |||||||||||||
Performance units granted | 144 | 77 | 67 | 29.3 | |||||||||||||||||||
Performance units vested | (144 | ) | (72 | ) | (72 | ) | (4,172 | ) | 11.92 | ||||||||||||||
Performance units cancelled/forfeited | (7 | ) | (4 | ) | (3 | ) | 29.35 | ||||||||||||||||
Change in liability | 2,560 | ||||||||||||||||||||||
Balance at January 27, 2013 | 353 | 181 | 172 | 4,422 | 23.5 | 4,754 | 1.1 | ||||||||||||||||
Performance units granted | 186 | 93 | 93 | 30.82 | |||||||||||||||||||
Performance units vested | (114 | ) | (57 | ) | (57 | ) | — | 16.68 | |||||||||||||||
Performance units cancelled/forfeited | (49 | ) | (25 | ) | (24 | ) | 28.82 | ||||||||||||||||
Change in liability | (3,117 | ) | |||||||||||||||||||||
Balance at January 26, 2014 | 376 | 192 | 184 | 1,305 | 28.5 | 3,893 | 1.3 | ||||||||||||||||
Performance units granted | 256 | 128 | 128 | 24.74 | |||||||||||||||||||
Performance units vested | (93 | ) | (52 | ) | (41 | ) | — | 23.83 | |||||||||||||||
Performance units cancelled/forfeited | (113 | ) | (57 | ) | (56 | ) | 28.76 | ||||||||||||||||
Change in liability | 586 | ||||||||||||||||||||||
Balance at January 25, 2015 | 426 | 211 | 215 | $ | 1,891 | $ | 27.17 | $ | 6,164 | 1.6 | |||||||||||||
The liability associated with performance units increased by $0.6 million in fiscal year 2015 due to continued employee service partially offset by vesting in the first quarter of fiscal year 2014, forfeitures, re-measurement adjustments and change in the expected performance results. | |||||||||||||||||||||||
Market Performance Restricted Stock Units. On February 26, 2014, the Company granted its CEO restricted stock units with a market performance condition. The award is eligible to vest during the period commencing February 26, 2014 and ending February 26, 2019 (the “Performance Period”) as follows: 30% of the restricted stock units covered by the award will vest if, during any consecutive 120 calendar day period that commences and ends during the Performance Period, the average per-share closing price of the Company’s common stock equals or exceeds $35.00 (“Tranche 1”) and the award will vest in full if, during any consecutive 120 calendar day period that commences and ends during the Performance Period, the average per-share closing price of the Company’s common stock equals or exceeds $40.00 (“Tranche 2”). The award will also vest if a majority change in control of the Company occurs during the Performance Period and, in connection with such event, the Company’s stockholders become entitled to receive per-share consideration having a value equal to or greater than $40.00. | |||||||||||||||||||||||
The following tables summarize the assumptions used in the Monte Carlo simulation model to determine the fair value of restricted stock units granted in fiscal year 2015 for both Tranche 1 and Tranche 2. | |||||||||||||||||||||||
Tranche 1: | |||||||||||||||||||||||
For the fiscal year ended January 25, 2015 | |||||||||||||||||||||||
Expected life, in years | 1.6 | ||||||||||||||||||||||
Estimated volatility | 34 | % | |||||||||||||||||||||
Dividend yield | — | % | |||||||||||||||||||||
Risk-free interest rate | 1.5 | % | |||||||||||||||||||||
Weighted average fair value on grant date | $ | 17.26 | |||||||||||||||||||||
Tranche 2: | |||||||||||||||||||||||
For the fiscal year ended January 25, 2015 | |||||||||||||||||||||||
Expected life, in years | 2.1 | ||||||||||||||||||||||
Estimated volatility | 34 | % | |||||||||||||||||||||
Dividend yield | — | % | |||||||||||||||||||||
Risk-free interest rate | 1.5 | % | |||||||||||||||||||||
Weighted average fair value on grant date | $ | 14.88 | |||||||||||||||||||||
The following table summarizes the activity for the market performance restricted stock units for the fiscal year ended January 25, 2015: | |||||||||||||||||||||||
(in thousands, except for per share amounts) | Total Units | Weighted Average | Aggregate | Weighted Average | |||||||||||||||||||
Grant Date | Unrecognized | Period Over | |||||||||||||||||||||
Fair Value | Compensation | Which Expected | |||||||||||||||||||||
(per unit) | to be Recognized | ||||||||||||||||||||||
(in years) | |||||||||||||||||||||||
Balance at January 26, 2014 | — | $ | — | $ | — | 0 | |||||||||||||||||
Market performance units granted | 220 | 15.59 | |||||||||||||||||||||
Market performance units vested | — | — | |||||||||||||||||||||
Market performance units cancelled/forfeited | — | — | |||||||||||||||||||||
Balance at January 25, 2015 | 220 | $ | 15.59 | $ | — | 1.2 | |||||||||||||||||
Stock Units, Employees. The Company issues stock unit awards to employees which are expected to be settled with stock. The grant date for these awards is equal to the measurement date. These awards are valued as of the measurement date and amortized over the requisite vesting period (typically 4 years). | |||||||||||||||||||||||
The following table summarizes the stock unit award activity for fiscal years 2015, 2014 and 2013: | |||||||||||||||||||||||
(in thousands, except per share amount) | Number of | Weighted Average | Aggregate | Aggregate | Weighted Average | ||||||||||||||||||
Units | Grant Date | Intrinsic | Unrecognized | Period Over | |||||||||||||||||||
Fair Value | Value (1) | Compensation | Which Expected | ||||||||||||||||||||
(per unit) | to be Recognized | ||||||||||||||||||||||
(in years) | |||||||||||||||||||||||
Balance at January 29, 2012 | 1,982 | $ | 19.06 | $ | 31,472 | 2.4 | |||||||||||||||||
Stock units granted | 1,517 | 26.73 | |||||||||||||||||||||
Stock units vested | (699 | ) | 18.2 | $ | 18,438 | ||||||||||||||||||
Stock units forfeited | (242 | ) | 23.65 | ||||||||||||||||||||
Balance at January 27, 2013 | 2,558 | 23.41 | 49,374 | 2.5 | |||||||||||||||||||
Stock units granted | 891 | 30.95 | |||||||||||||||||||||
Stock units vested | (1,026 | ) | 21.34 | 31,861 | |||||||||||||||||||
Stock units forfeited | (228 | ) | 25.81 | ||||||||||||||||||||
Balance at January 26, 2014 | 2,195 | 27.18 | 49,563 | 2.5 | |||||||||||||||||||
Stock units granted | 929 | 23.9 | |||||||||||||||||||||
Stock units vested | (752 | ) | 25.55 | $ | 18,237 | ||||||||||||||||||
Stock units forfeited | (234 | ) | 26.29 | ||||||||||||||||||||
Balance at January 25, 2015 | 2,138 | $ | 26.43 | $ | 44,506 | 2.4 | |||||||||||||||||
-1 | Reflects the value of Semtech stock on the date that the stock unit vested. | ||||||||||||||||||||||
Stock Units, Non-Employee Directors. The Company grants stock unit awards to non-employee directors. These restricted stock units are accounted for as liabilities and accrued in the consolidated balance sheets because they are cash settled. These awards are vested after 1 year of service. However, because these awards are not typically settled until a non-employee director’s separation from service, the value of these awards is re-measured at the end of each reporting period until settlement. The following table summarizes the activity for stock unit awards for fiscal years 2015, 2014 and 2013: | |||||||||||||||||||||||
(in thousands, except per share amount) | Number of | Recorded | Weighted Average | Aggregate | Period Over | ||||||||||||||||||
Units | Liability | Grant Date | Unrecognized | Which Expected | |||||||||||||||||||
Fair Value | Compensation | to be Recognized | |||||||||||||||||||||
(per unit) | (in years) | ||||||||||||||||||||||
Balance at January 29, 2012 | 18 | $ | 3,873 | $ | 27.6 | $ | 216 | 0.4 | |||||||||||||||
Stock units granted | 20 | 24.46 | |||||||||||||||||||||
Stock units vested | (18 | ) | 27.6 | ||||||||||||||||||||
Stock units forfeited | — | ||||||||||||||||||||||
Change in liability | 684 | ||||||||||||||||||||||
Balance at January 27, 2013 | 20 | 4,557 | 24.46 | 253 | 0.4 | ||||||||||||||||||
Stock units granted | 18 | 35.17 | |||||||||||||||||||||
Stock units vested | (20 | ) | 24.46 | ||||||||||||||||||||
Stock units forfeited | — | ||||||||||||||||||||||
Change in liability | (576 | ) | |||||||||||||||||||||
Balance at January 26, 2014 | 18 | 3,981 | 35.17 | 177 | 0.4 | ||||||||||||||||||
Stock units granted | 24 | 26.59 | |||||||||||||||||||||
Stock units vested | (18 | ) | 35.17 | ||||||||||||||||||||
Stock units forfeited | — | ||||||||||||||||||||||
Change in liability | 1,233 | ||||||||||||||||||||||
Balance at January 25, 2015 | 24 | $ | 5,214 | $ | 26.59 | $ | 275 | 0.4 | |||||||||||||||
As of January 25, 2015, the total number of vested but unsettled stock units for Non-Employee Directors is 179,092 units which are included in the recorded liability. | |||||||||||||||||||||||
Modification of Awards | |||||||||||||||||||||||
On December 19, 2014, the Company modified the equity awards of certain executive officers by providing for the acceleration of vesting upon termination of their employment in certain circumstances in connection with a change in control of the Company. This modification impacted the stock awards of 12 executive employees and resulted in no incremental compensation cost for the fiscal year ended January 25, 2015. |
Interest_Income_and_Other_Expe
Interest Income and Other (Expense) Income, Net | 12 Months Ended | |||||||||||
Jan. 25, 2015 | ||||||||||||
Interest Income and Other Expense Disclosure [Abstract] | ||||||||||||
Interest Income and Other (Expense) Income, Net | Interest Income and Other (Expense) Income, Net | |||||||||||
Interest and other expense, net, consist of the following: | ||||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||
Interest income | 43 | 342 | 404 | |||||||||
Non-recoverable VAT tax | (323 | ) | (598 | ) | (217 | ) | ||||||
Foreign currency transaction gain (loss) | 702 | (648 | ) | (354 | ) | |||||||
Miscellaneous expense | (257 | ) | (486 | ) | (810 | ) | ||||||
Interest income and other income (expense), net | $ | 165 | $ | (1,390 | ) | $ | (977 | ) | ||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jan. 25, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The provision (benefit) for taxes consists of the following: | ||||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||
Current tax provision | ||||||||||||
Federal | $ | 749 | $ | 3,769 | $ | 7,100 | ||||||
State | — | 554 | 784 | |||||||||
Foreign | 7,810 | 14,962 | 5,745 | |||||||||
Subtotal | 8,559 | 19,285 | 13,629 | |||||||||
Deferred tax provision (benefit) | ||||||||||||
Federal | 508 | 23,938 | (15,812 | ) | ||||||||
State | (100 | ) | (1,293 | ) | (148 | ) | ||||||
Foreign | (419 | ) | (5,945 | ) | (39,359 | ) | ||||||
Subtotal | (11 | ) | 16,700 | (55,319 | ) | |||||||
Provision (benefit) for taxes | $ | 8,548 | $ | 35,985 | $ | (41,690 | ) | |||||
The provision (benefit) for taxes reconciles to the amount computed by applying the statutory federal rate to income before taxes as follows: | ||||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||
Federal income tax at statutory rate | $ | 12,775 | $ | (44,968 | ) | $ | 86 | |||||
State income taxes, net of federal benefit | (100 | ) | (1,260 | ) | (2,472 | ) | ||||||
Foreign taxes at rates less than federal rates | (11,960 | ) | (8,378 | ) | (9,655 | ) | ||||||
Tax credits generated | (5,302 | ) | (5,523 | ) | (5,328 | ) | ||||||
Changes in valuation allowance | 14,284 | 52,942 | 2,703 | |||||||||
Goodwill impairment | — | 40,840 | — | |||||||||
Changes in uncertain tax positions | (5,167 | ) | 893 | 132 | ||||||||
Deemed dividends | 2,513 | 726 | 1,101 | |||||||||
Equity compensation | 2,200 | 1,173 | 793 | |||||||||
Permanent differences | (93 | ) | 2,895 | 1,571 | ||||||||
Sales exclusion - foreign jurisdiction | — | — | (10,689 | ) | ||||||||
Dividend and U.S. tax on foreign earnings | — | — | (23,443 | ) | ||||||||
Revaluation of deferred tax assets and liabilities | (432 | ) | (12 | ) | 3,510 | |||||||
Other | (170 | ) | (3,343 | ) | 1 | |||||||
Provision (benefit) for taxes | $ | 8,548 | $ | 35,985 | $ | (41,690 | ) | |||||
The Company receives an income tax benefit from tax rate differentials due to its presence in foreign jurisdictions such as Switzerland and Canada where statutory rates are lower than US federal tax rates. This income tax benefit is reflected in the line item “Foreign taxes at rates less than federal rates.” | ||||||||||||
The Company, via its Swiss subsidiary, Semtech International AG, receives an income tax benefit in Switzerland because only a portion of its total earnings are subject to taxation in Switzerland. Specifically, in the third quarter of fiscal year 2014, the Company received a new Swiss tax ruling (“New Swiss Ruling”), with an effective date retroactive to the beginning of fiscal year 2014, which allows the Company to compute Swiss income tax using an allocated portion of its total pre-tax earnings that are attributable to the sourcing of production activities. This New Swiss Ruling superseded a Swiss tax ruling that was in effect during fiscal years 2012 and 2013 (“Previous Swiss Ruling”). The Previous Swiss Ruling required the Company to allocate each element of revenue and expense to activities sourced to Switzerland or outside Switzerland based on an analysis of where certain activities were being performed. | ||||||||||||
In prior years, the Company reflected the tax ruling benefit in the reconciliation line item “Sales exclusion - foreign jurisdiction.” As a result of the differences in the computation of how financial activity is excluded from taxation in Switzerland, the Company reflects the benefit from the New Swiss Ruling as “Foreign taxes at rates less than federal rates”. | ||||||||||||
The Company is currently not aware of any uncertainties or trends relating to the foreign tax rate differential or the New Swiss Ruling that could significantly impact the Company’s income taxes in future periods. | ||||||||||||
The deferred tax assets and deferred tax liabilities are classified in the consolidated balance sheets as follows: | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||
Deferred tax assets | ||||||||||||
Current | $ | 2,478 | $ | 2,946 | ||||||||
Non-current | 106 | 348 | ||||||||||
Subtotal | 2,584 | 3,294 | ||||||||||
Deferred tax liabilities | ||||||||||||
Current | (1,444 | ) | (930 | ) | ||||||||
Non-current | (2,477 | ) | (3,626 | ) | ||||||||
Subtotal | (3,921 | ) | (4,556 | ) | ||||||||
Net deferred tax liabilities | $ | (1,337 | ) | $ | (1,262 | ) | ||||||
The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Accounting for Income Taxes, requires that for a particular tax-paying component of an enterprise, and within a particular tax jurisdiction, (a) all current deferred tax liabilities and assets shall be offset and presented as a single amount and (b) all noncurrent deferred tax liabilities and assets shall be offset and presented as a single amount. Deferred tax liabilities and assets attributable to different tax-paying components of the enterprise or to different tax jurisdictions are not offset. | ||||||||||||
The components of the net deferred income tax assets and liabilities at January 25, 2015 and January 26, 2014 are as follows: | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||
Current deferred tax asset: | ||||||||||||
Deferred revenue | $ | 3,052 | $ | 2,773 | ||||||||
Inventory reserve | 3,156 | 3,032 | ||||||||||
Payroll and related accruals | 2,306 | 2,133 | ||||||||||
Bad debt reserve | 927 | 416 | ||||||||||
Accrued service fees | 608 | 591 | ||||||||||
Other deferred assets | 1,191 | 1,562 | ||||||||||
Valuation allowance | (8,637 | ) | (7,321 | ) | ||||||||
Total current deferred tax asset | 2,603 | 3,186 | ||||||||||
Non-current deferred tax asset: | ||||||||||||
Research and development charges | 1,323 | 2,109 | ||||||||||
Research credit carryforward | 40,819 | 39,350 | ||||||||||
NOL carryforward | 29,144 | 31,165 | ||||||||||
Payroll and related accruals | 7,148 | 6,268 | ||||||||||
Stock-based compensation | 6,176 | 5,732 | ||||||||||
Other deferred assets | 5,054 | 3,567 | ||||||||||
Valuation allowance | (66,899 | ) | (53,931 | ) | ||||||||
Total non-current deferred tax asset | 22,765 | 34,260 | ||||||||||
Current deferred tax liabilities: | ||||||||||||
Inventory reserve - foreign | (826 | ) | (430 | ) | ||||||||
Bad debt reserve - foreign | (256 | ) | (223 | ) | ||||||||
Other current deferred tax liabilities | (373 | ) | (517 | ) | ||||||||
Total current deferred tax liabilities | (1,455 | ) | (1,170 | ) | ||||||||
Non-current deferred tax liabilities: | ||||||||||||
Purchase accounting deferred tax liabilities | (20,917 | ) | (32,466 | ) | ||||||||
Depreciation and amortization | (2,956 | ) | (3,695 | ) | ||||||||
Other non-current deferred tax liabilities | (1,377 | ) | (1,377 | ) | ||||||||
Total non-current deferred tax liabilities | (25,250 | ) | (37,538 | ) | ||||||||
Net deferred tax liabilities | $ | (1,337 | ) | $ | (1,262 | ) | ||||||
As of January 25, 2015, the Company had federal and state net operating loss carryforwards of $87.0 million and $96.6 million, respectively, which, subject to certain limitations, are available to offset future taxable income through fiscal year 2034. A portion of these losses were generated by SMI prior to the Company’s purchase of SMI in fiscal year 2010 and therefore are subject to change of control provisions which limit the amount of acquired tax attributes that can be utilized in a given tax year. The Company does not expect these changes in control limitations to significantly impact its ability to utilize these attributes. | ||||||||||||
Included in the Company’s net operating loss carryforward deferred tax asset is approximately $8.4 million of deferred tax assets attributable to excess equity deductions related to stock awards that are not included on the Company’s consolidated balance sheet. Due to a provision within ASC 740, concerning when tax benefits related to excess stock option deductions can be credited to paid-in capital, the portion of the Company’s deferred tax asset related to such excess tax benefits must be excluded from the deferred tax asset balance, even if the facts and circumstances indicate that it is more likely than not that the deferred tax asset can be realized. The credit to paid-in-capital will be recorded when the benefit is reflected in our taxes payable. | ||||||||||||
As of January 25, 2015, the Company had gross federal and state research credits available of approximately $13.6 million and $13.8 million, respectively, which are available to offset taxable income. These credits will expire between fiscal years 2021 through 2035. As of January 25, 2015, the Company had federal Alternative Minimum Tax credits available of approximately $1.3 million. The Company also had Canadian research credits available of approximately $32.4 million. These credits will expire between fiscal years 2026 and 2035. | ||||||||||||
As of January 25, 2015, the Company has a full valuation allowance against its U.S. and Canadian deferred tax assets of approximately $75.5 million. The Company assessed whether a valuation allowance should be recorded against all of its deferred tax assets (“DTAs”) based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether DTAs will be realized are, (1) future reversals of existing taxable temporary differences (i.e., offset of gross deferred tax assets against gross deferred tax liabilities); (2) taxable income in prior carryback years, if carryback is permitted under the tax law; (3) tax planning strategies and (4) future taxable income exclusive of reversing temporary differences and carryforwards. | ||||||||||||
In assessing whether a valuation allowance is required, significant weight is to be given to evidence that can be objectively verified. The Company evaluated its DTAs each reporting period, including an assessment of the cumulative income or loss over the most recent three-year period, to determine if a valuation allowance was required. A significant negative factor in the assessment was the Company’s three-year cumulative loss history as of January 25, 2015 and January 26, 2014 in Canada and the U.S. | ||||||||||||
After a review of the four sources of taxable income described above and in view of its three-year cumulative losses, the Company was not able to conclude that it is more likely than not that its DTAs in Canada and the U.S. at January 25, 2015 and January 26, 2014 will be realized. As a result, the Company recorded a full valuation allowance on its DTAs in Canada and the U.S, with a corresponding charge to the income tax provision, of approximately $14.3 million in fiscal 2015 and $52.9 million in fiscal 2014. | ||||||||||||
As of January 25, 2015, the Company had approximately $499.3 million of unremitted earnings related to the Company’s wholly owned foreign subsidiaries for which income taxes have not been provided. | ||||||||||||
Uncertain Tax Positions | ||||||||||||
The Company uses a two-step approach to recognize and measure uncertain tax positions (“UTP”). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. | ||||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (before federal impact of state items) is as follows: | ||||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||
Beginning balance | $ | 14,414 | $ | 13,144 | ||||||||
Additions based on tax positions related to the current year | 526 | 1,484 | ||||||||||
Reductions for tax positions of prior years, net | (3,982 | ) | (214 | ) | ||||||||
Reductions for settlements with tax authorities, net | (1,070 | ) | — | |||||||||
Ending balance | $ | 9,888 | $ | 14,414 | ||||||||
Included in the balance of unrecognized tax benefits at January 25, 2015 and January 26, 2014, are $7.8 million and $12.3 million, respectively, of net tax benefits (after federal impact of state items) that, if recognized, would impact the effective tax rate. | ||||||||||||
The liability for UTP is reflected on the consolidated balance sheets as follows: | ||||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||
Deferred tax assets - non-current | $ | 7,522 | $ | 12,095 | ||||||||
Accrued liabilities | — | — | ||||||||||
Other long-term liabilities | 252 | 252 | ||||||||||
Total accrued taxes | $ | 7,774 | $ | 12,347 | ||||||||
The Company’s policy is to include net interest and penalties related to unrecognized tax benefits within the provision for taxes on the consolidated statements of operations. Since the Company has sufficient net operating losses and R&D credit carryforwards, there would be no cash tax liability, and therefore no additional penalties or interest accrued during fiscal year 2015. The Company had approximately $293,000 of net interest and penalties accrued at January 25, 2015 and January 26, 2014. | ||||||||||||
Tax years prior to 2012 (the Company’s fiscal year 2013) are generally not subject to examination by the Internal Revenue Service (“IRS”) except for items involving tax attributes that have been carried forward to tax years whose statute of limitations remains open. The Company is currently under IRS audit for fiscal year 2013 and expects to close those audits within the next twelve months. The Company's positions are expected to be sufficient to address matters that may arise under examination. For state returns, the Company is generally not subject to income tax examinations for years prior to 2010 (the Company’s fiscal year 2011). The Company has a significant tax presence in Switzerland for which Swiss tax filings have been examined through fiscal year 2013. The Company is also subject to routine examinations by various foreign tax jurisdictions in which it operates. | ||||||||||||
Tangible Property Regulations | ||||||||||||
On September 13, 2013, the U.S. Treasury Department released final income tax regulations on the deduction and capitalization of expenditures related to tangible property. These final regulations apply to tax years beginning on or after January 1, 2014. Several of the provisions within the regulations will require a tax accounting method change to be filed with the IRS, resulting in a cumulative effect adjustment; however, given the Company’s full valuation allowance and loss position in the United States, management does not anticipate the impact of these changes to be material to the Company’s consolidated financial position. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Jan. 25, 2015 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Commitments And Contingencies | Commitments and Contingencies | |||||||||||
Leases | ||||||||||||
The Company leases facilities and certain equipment under operating lease arrangements expiring in various years through fiscal year 2024. The aggregate minimum annual lease payments under leases in effect on January 25, 2015 are as follows: | ||||||||||||
Minimum Annual Lease Payments | ||||||||||||
(in thousands) | ||||||||||||
Fiscal Year Ending: | ||||||||||||
2016 | $ | 6,812 | ||||||||||
2017 | 4,895 | |||||||||||
2018 | 4,363 | |||||||||||
2019 | 3,501 | |||||||||||
2020 | 2,531 | |||||||||||
Thereafter | 5,614 | |||||||||||
Total minimum lease commitments | $ | 27,716 | ||||||||||
Rent expense was $8.8 million, $9.3 million and $7.9 million for fiscal years 2015, 2014 and 2013, respectively. The Company received $142,000, $140,000 and $133,000 of sub-lease income in fiscal years 2015, 2014 and 2013, respectively. | ||||||||||||
Unconditional Purchase Commitments | ||||||||||||
The following table shows the Company’s open capital commitments, other open purchase commitments, and other vendor commitments for the purchase of plant, equipment, raw material, supplies and services: | ||||||||||||
(in thousands) | Less than 1 year | 1-3 years | Total | |||||||||
Open capital purchase commitments | $ | 4,044 | $ | — | $ | 4,044 | ||||||
Other open purchase commitments | 28,064 | 3,446 | 31,510 | |||||||||
Other vendor commitments | 1,000 | — | 1,000 | |||||||||
Total purchase commitments | $ | 33,108 | $ | 3,446 | $ | 36,554 | ||||||
In addition, under the terms of the Series A-1 Convertible Preferred Stock Purchase Agreement (the “Agreement”) with Senet Inc. (“Senet”), the Company has committed to purchase an additional $1.4 million of shares of Senet convertible preferred stock based on the completion of certain milestones by Senet in fiscal year 2016. | ||||||||||||
Legal Matters | ||||||||||||
From time to time in the ordinary course of its business, the Company is involved in various claims, litigation, and other legal actions that are normal to the nature of its business, including with respect to IP, contract, product liability, employment, and environmental matters. In the opinion of management, after consulting with legal counsel, and taking into account insurance coverage, any ultimate liability related to current outstanding claims and lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on the Company’s financial statements, as a whole. | ||||||||||||
The Company’s currently pending legal matters of note are discussed below: | ||||||||||||
Environmental Matters. In 2001, the Company was notified by the California Department of Toxic Substances Control (“State”) that it may have liability associated with the clean-up of the one-third acre Davis Chemical Company site in Los Angeles, California. The Company has been included in the clean-up program because it was one of the companies that used the Davis Chemical Company site for waste recycling and/or disposal between 1949 and 1990. The Company joined with other potentially responsible parties and entered into a Consent Order with the State that required the group to perform a soils investigation at the site and submit a remediation plan. The State has approved the remediation plan, which completes the group’s obligations under the Consent Order. Although the Consent Order does not require the group to remediate the site and the State has indicated it intends to look to other parties for remediation, the State has not yet issued “no further action” letters to the group members. To date, the Company’s share of the group’s expenses has not been material and has been expensed as incurred. | ||||||||||||
The Company has used an environmental firm, specializing in hydrogeology, to perform monitoring of the groundwater at the Company’s former facility in Newbury Park, California that was leased for approximately forty years. The Company vacated the building in May 2002. Certain contaminants have been found in the local groundwater and site soils. Responsibility for soil contamination remains under investigation. The location of key soil contamination (and some related site groundwater impact associated with the soil contamination) is concentrated in and found to emanate from an area of an underground storage tank that the Company believes to have been installed and primarily used in the early 1960s by a former tenant at the site who preceded the Company’s tenancy. There are no claims pending with respect to environmental matters at the Newbury Park site. The Los Angeles Regional Water Quality Control Board (“RWQCB”) having authority over the site issued joint instructions in November 2008, ordering the Company and the current owner of the site to perform additional assessments and surveys, and to create ongoing groundwater monitoring plans before any final regulatory action for “no further action” may be approved. In September 2009, the regulatory agency issued supplemental instructions to the Company and the current site owner regarding previously ordered site assessments, surveys and groundwater monitoring. In October 2013, an order was issued including a scope of proposed additional site work, monitoring, and proposed remediation activities. The Company has filed an appeal of the October 2013 order seeking reconsideration of the removal of two other potentially responsible parties, and seeking clarification of certain other factual findings by the regulatory agency. Other parties have filed their own responses to the October 2013 order. The Company submitted a technical report to the RWQCB and has received confirmation regarding the satisfaction of tasks 1 and 2 of the order. The parties are continuing to work on compliance with the October 2013 order and anticipate working cooperatively on any ultimate proposed clean-up and abatement work. The Company has retained the services of an environmental firm which has engaged with the regulatory agency and has begun activities to comply with the order | ||||||||||||
The Company has accrued liabilities where it is probable that a loss will be incurred and the cost or amount of loss can be reasonably estimated. Based on the Company’s preliminary assessment following a November 2012 draft cleanup and abatement order, which has been reviewed under the October 2013 order pending the current appeal by the Company and other impacted parties, the Company has determined a likely range of probable loss between $2.7 million and $5.7 million. Given the yet unresolved status of the clean up and abatement order and uncertainties associated with environmental assessment and the remediation activities, the Company is unable to determine a best estimate within the range of loss. Therefore, the Company recorded the minimum amount of $2.7 million, and such reserve remains under “Other long-term liabilities” on the Company’s consolidated balance sheets. These estimates could change as a result of changes in planned remedial actions, further actions from the regulatory agency, remediation technology, and other factors. | ||||||||||||
Commercial Disputes | ||||||||||||
In November 2012, the Company terminated the services of Intrigo Systems, Inc. (“Intrigo”) for default under its agreement with the Company for consulting services pertaining to the implementation of an enterprise resource planning (“ERP”) system. On January 23, 2013, the Company received a letter from Intrigo claiming that the Company breached the agreement and demanding payment of $2.6 million. The Company responded to this letter and denied liability for the claim, based on Intrigo’s failure to perform as required under the agreement. On November 13, 2014, Intrigo filed its complaint (the “Complaint”) against Semtech in Alameda County Superior Court, seeking in excess of $2.7 million in monetary damages and alleging breach of contract, breach of the covenant of good faith and fair dealing, and fraud. On December 18, 2014, the Company answered the Complaint and filed its own cross-complaint (the “Cross-Complaint”) against Intrigo, seeking in excess of $3.7 million in monetary damages and alleging breach of contract, breach of the implied covenant of good faith and fair dealing, fraud, negligent misrepresentation, false advertising, money had and received, and unfair competition. The Cross-Complaint also seeks a declaration that the Company’s contractual agreement with Intrigo was terminated and that the Company has no remaining obligations under any contract. Discovery is proceeding. At this time, the Company is unable to express an opinion on the outcome of this case. | ||||||||||||
Product Warranties | ||||||||||||
The Company’s general warranty policy provides for repair or replacement of defective parts. In some cases, a refund of the purchase price is offered. In certain instances the Company has agreed to other warranty terms, including some indemnification provisions. | ||||||||||||
The product warranty accrual reflects the Company’s best estimate of probable liability under its product warranties. The Company accrues for known warranty issues if a loss is probable and can be reasonably estimated, and accrues for estimated incurred but unidentified issues based on historical experience. Historically, warranty expense has been immaterial to the Company’s consolidated financial statements. | ||||||||||||
Retirement Plans | ||||||||||||
The Company contributed $1.3 million, $1.4 million and $1.2 million, respectively, in fiscal years 2015, 2014 and 2013 to the 401(k) retirement plan maintained for its domestic employees. | ||||||||||||
The Company contributes to the CSEM Pension fund, a Swiss multiemployer plan, that provides pension benefits (the “Retirement Plan”). The Retirement Plan is a foundation into which several employers are affiliated. Benefits payable from the pension plan include retirement pension, death, and disability benefits. The risk of participating in this multiemployer plan is different from a single-employer plan due to the comingling of assets and related investment returns and risks and aggregation of actuarial experience and related gains or losses for allocation amongst participating employers; contributions pursuant to prescribed formulae consistent for all participating employers; and, in the event of a participating employer’s withdrawal from the Retirement Plan, retirees receiving benefits from the Retirement Plan remain within the Retirement Plan and will continue to receive future benefit payments funded by the remaining participating employers thereafter. | ||||||||||||
The Retirement Plan is administered on behalf of a labor union, which is similar to common practices found in the US involving collective bargaining agreements and labor unions. EIN/Pension plan number, Pension protection act zone status, FIP/RP status and Form 5500 are not applicable as the Retirement Plan is a Swiss plan governed by pension laws in Switzerland. The Company contributed $0.9 million, $0.8 million and $0.8 million, respectively, in fiscal years 2015, 2014 and 2013 to the Retirement Plan. At the date the Company’s financial statements were issued, the Retirement Plan’s audited financial statements were not available for the Retirement Plan year ended December 31, 2014. | ||||||||||||
In addition, the Company also contributed $1.3 million in fiscal years 2015 to a defined contribution plan for its employees in Canada. | ||||||||||||
Deferred Compensation | ||||||||||||
The Company maintains a deferred compensation plan for certain officers and key executives that allows participants to defer a portion of their compensation for future distribution at various times permitted by the plan. This plan provides for a discretionary Company match up to a defined portion of the employee’s deferral, with any match subject to a vesting period. | ||||||||||||
The following table shows the compensation expense and forfeitures under this plan for fiscal years 2015, 2014 and 2013: | ||||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||
Forfeitures | $ | (112 | ) | $ | (180 | ) | $ | — | ||||
Compensation expense | 2,449 | 2,644 | 1,839 | |||||||||
Compensation expense, net of forfeitures | $ | 2,337 | $ | 2,464 | $ | 1,839 | ||||||
The Company’s liability for the deferred compensation plan is presented below: | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||
Accrued liabilities | $ | 527 | $ | 1,478 | ||||||||
Other long-term liabilities | 19,241 | 15,565 | ||||||||||
Total deferred compensation liabilities under this plan | $ | 19,768 | $ | 17,043 | ||||||||
The Company has purchased whole life insurance on the lives of certain current deferred compensation plan participants. This Company-owned life insurance is held in a grantor trust and is intended to cover a majority of the Company’s costs of the deferred compensation plan. The cash surrender value of the Company-owned life insurance was $18.5 million and $14.4 million as of January 25, 2015 and January 26, 2014, respectively, and is included in “Other assets” on the consolidated balance sheet. | ||||||||||||
Cycleo Earn-out | ||||||||||||
Pursuant to the terms of the Amended Earn-out with the Earn-out Beneficiaries, the Company potentially may make payments totaling up to approximately $16.0 million based on the achievement of a combination of certain revenue and operating income milestones by Cycleo. For certain of the earn-out beneficiaries, payment of the earn-out liability is contingent upon continued employment and is accounted for as post-acquisition compensation expense over the service period. The portion of the earn-out liability that is not dependent on continued employment is not considered as compensation expense and is included in Selling, general and administrative expense. The Amended Earn-out replaced the original. As a result under the amended award, the Company has recorded a liability of $1.7 million as of January 25, 2015, which approximates its fair value. | ||||||||||||
Indemnification | ||||||||||||
The Company has entered into agreements with its current executive and some former officers and directors indemnifying them against certain liabilities incurred in connection with the performance of their duties. The Company’s Certificate of Incorporation and Bylaws contain comparable indemnification obligations with respect to the Company’s current directors and employees. |
Concentration_of_Risk
Concentration of Risk | 12 Months Ended | ||||||||
Jan. 25, 2015 | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
Geographic Information and Concentration of Risk | Concentration of Risk | ||||||||
Significant Customers | |||||||||
Sales to the Company’s customers are generally made on open account, subject to credit limits the Company may impose, and the receivables are subject to the risk of being uncollectible. | |||||||||
Each of the following significant customers accounted for at least 10% of net sales for at least one of the periods indicated: | |||||||||
Fiscal Year Ended | |||||||||
(percentage of net sales) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||
Samsung Electronics Co., Ltd.(and affiliates) | 11 | % | 12 | % | 12 | % | |||
Huawei Technologies Co., Ltd (and affiliates) | 5 | % | 9 | % | 10 | % | |||
The following table shows the list of customers that have an outstanding receivable balance that represents at least 10% of total net receivables for at least one of the periods indicated: | |||||||||
Balance as of | |||||||||
(percentage of net accounts receivable) | January 25, 2015 | January 26, 2014 | |||||||
Samsung Electronics Co., Ltd.(and affiliates) | 12 | % | 13 | % | |||||
Outside Subcontractors and Suppliers | |||||||||
The Company relies on a limited number of outside subcontractors and suppliers for the production of silicon wafers, packaging and certain other tasks. Disruption or termination of supply sources or subcontractors, due to natural disasters such as an earthquake or other causes, could delay shipments and could have a material adverse effect on the Company. Although there are generally alternate sources for these materials and services, qualification of the alternate sources could cause delays sufficient to have a material adverse effect on the Company. Several of the Company’s outside subcontractors and suppliers, including third-party foundries that supply silicon wafers, are located in foreign countries, including China, Taiwan, Europe and Israel. The Company’s largest source of silicon wafers is an outside foundry located in China and a significant amount of the Company’s assembly and test operations are conducted by third-party contractors in China, Malaysia, Taiwan, Thailand, Korea and the Philippines. For fiscal year 2015, approximately 37% of the Company’s silicon in terms of cost of wafers was supplied by a third-party foundry in China. For both fiscal years 2014 and 2013, approximately 38% of the Company’s silicon in terms of cost of wafers was supplied by this third-party foundry in China. | |||||||||
In fiscal year 2015, authorized distributors accounted for approximately 56% of the Company’s net sales. Generally, the Company does not have long-term contracts with its distributors and most can terminate their agreement with little or no notice. For fiscal year 2015, the Company’s two largest distributors were based in Asia. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||
Jan. 25, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Segment Information | Segment Information | ||||||||||||||||||||
Segment Information | |||||||||||||||||||||
In fiscal year 2015, the Company completed a reassessment of its operations in light of its restructuring efforts (discussed in Note 19) and recent strategic business decisions. Based on this reassessment, the Company identified four operating segments. The Company’s CEO continues to function as the CODM. The Company’s CODM makes operating decisions and assesses performance based on these operating segments. Three of the operating segments: Power and High Reliability Products Group; Protection Products, Signal Integrity Products Group; and Wireless, Sensing and Timing Products Group, all have similar economic characteristics and have been aggregated into one reportable segment identified in the table below as the “Semiconductor Products Group.” The Company concluded that the remaining operating segment, the Systems Innovation Group, could not be aggregated with the other operating segments and did not meet the thresholds for a separate reportable segment as defined by the guidance regarding segment disclosure. Therefore, the Company has classified it as “All others” in the tables below. Historically, the Company was able to include “All others” as part of the Company’s one reportable segment for fiscal years 2014 and 2013. The Company's reportable segment information has been recast for comparison purposes for these prior periods. The Company’s assets are commingled among the various reporting units and the CODM does not use that information in making operating decisions or assessing performance. Therefore, the Company has not included asset information by segment below. | |||||||||||||||||||||
The table below provides net sales activity by segment: | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||||||||||
Semiconductor Products Group | $ | 555,399 | $ | 577,312 | $ | 559,729 | |||||||||||||||
All others | 2,486 | 17,665 | 19,098 | ||||||||||||||||||
Total net sales | $ | 557,885 | $ | 594,977 | $ | 578,827 | |||||||||||||||
Income by segment and reconciliation to consolidated income before taxes: | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(in thousands) | 25-Jan-15 | 26-Jan-14 | January 27, 2013 | ||||||||||||||||||
Semiconductor Products Group operating income | $ | 136,823 | $ | 141,569 | $ | 133,854 | |||||||||||||||
All others operating loss | (10,558 | ) | (2,744 | ) | 4,995 | ||||||||||||||||
Operating Income by segment | 126,265 | 138,825 | 138,849 | ||||||||||||||||||
Items to reconcile segment operating income to consolidated income (loss) before taxes | |||||||||||||||||||||
Intangible amortization and impairments | 31,449 | 190,529 | 10,248 | ||||||||||||||||||
Stock-based compensation expense | 29,629 | 24,589 | 24,528 | ||||||||||||||||||
Write-off of deferred financing costs | — | 8,773 | — | ||||||||||||||||||
Inventory write-down | — | 2,408 | 39,406 | ||||||||||||||||||
Restructuring charges | 1,285 | 3,086 | — | ||||||||||||||||||
Other non-segment related expenses | 3,310 | 1,522 | 29,382 | ||||||||||||||||||
Amortization of fair value adjustments related to acquired PP&E | 18,335 | 16,835 | 19,696 | ||||||||||||||||||
Interest expense, net | 5,927 | 18,174 | 14,363 | ||||||||||||||||||
Non-operating (income) expense, net | (165 | ) | 1,390 | 977 | |||||||||||||||||
Income (loss) before taxes | $ | 36,495 | $ | (128,481 | ) | $ | 249 | ||||||||||||||
Information by Product Line | |||||||||||||||||||||
The Company operates exclusively in the semiconductor industry and primarily within the analog and mixed-signal sector. | |||||||||||||||||||||
The table below provides net sales activity by product line on a comparative basis for all periods. In December 2013, the Company announced that it was combining its Gennum and former Advanced Communication product groups. The combined net sales activity for these groups is reflected in the Signal Integrity product group. | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(in thousands, except percentages) | 25-Jan-15 | 26-Jan-14 | 27-Jan-13 | ||||||||||||||||||
Protection, Power and High-Reliability | $ | 255,743 | 47 | % | $ | 256,808 | 43 | % | $ | 265,293 | 46 | % | |||||||||
Signal Integrity | 219,024 | 39 | % | 254,589 | 43 | % | 228,882 | 40 | % | ||||||||||||
Wireless, Sensing and Timing | 80,632 | 14 | % | 65,947 | 11 | % | 65,598 | 11 | % | ||||||||||||
Systems Innovation | 2,486 | — | % | 17,633 | 3 | % | 19,054 | 3 | % | ||||||||||||
Total net sales | $ | 557,885 | 100 | % | $ | 594,977 | 100 | % | $ | 578,827 | 100 | % | |||||||||
Geographic Information | |||||||||||||||||||||
The Company generates virtually all of its sales from its Semiconductor Products Group through sales of analog and mixed signal devices. | |||||||||||||||||||||
Net sales activity by geographic region is as follows: | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(in thousands, except percentages) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||||||||||
Asia-Pacific | $ | 412,514 | 74 | % | $ | 432,097 | 73 | % | $ | 405,179 | 70 | % | |||||||||
North America | 85,139 | 15 | % | 94,574 | 16 | % | 98,401 | 17 | % | ||||||||||||
Europe | 60,232 | 11 | % | 68,306 | 11 | % | 75,247 | 13 | % | ||||||||||||
Total net sales | $ | 557,885 | 100 | % | $ | 594,977 | 100 | % | $ | 578,827 | 100 | % | |||||||||
The Company attributes sales to a country based on the ship-to address. The table below summarizes sales activity to countries that represented greater than 10% of total net sales for at least one of the periods indicated: | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(percentage of total sales) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||||||||||
China (including Hong Kong) | 38 | % | 34 | % | 35 | % | |||||||||||||||
United States | 12 | % | 16 | % | 17 | % | |||||||||||||||
Japan | 11 | % | 11 | % | 10 | % | |||||||||||||||
South Korea | 9 | % | 11 | % | 7 | % | |||||||||||||||
Total net sales | 70 | % | 72 | % | 69 | % | |||||||||||||||
The Company’s regional (loss) income from continuing operations before income taxes is as follows: | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||||||||||
Domestic | $ | (33,540 | ) | $ | (158,780 | ) | $ | (19,867 | ) | ||||||||||||
Foreign | 70,035 | 30,299 | 20,116 | ||||||||||||||||||
Total | $ | 36,495 | $ | (128,481 | ) | $ | 249 | ||||||||||||||
Domestic (loss) from continuing operations includes impairments in fiscal year 2015 and 2014, amortization of acquired intangible assets, litigation related expenses and higher levels of stock-based compensation compared to foreign operations. | |||||||||||||||||||||
Long-lived Assets | |||||||||||||||||||||
Long-lived assets, which consist of property, plant and equipment, net of accumulated depreciation and classified by location are summarized as follows: | |||||||||||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | |||||||||||||||||||
United States | $ | 63,449 | $ | 55,303 | |||||||||||||||||
Rest of North America | 25,139 | 28,577 | |||||||||||||||||||
Europe | 9,119 | 14,900 | |||||||||||||||||||
Asia and all others | 17,764 | 11,341 | |||||||||||||||||||
Total | $ | 115,471 | $ | 110,121 | |||||||||||||||||
Some of these assets are at locations owned or operated by the Company’s suppliers. The Company has consigned certain equipment to a foundry based in China to support its specialized processes run at the foundry. The Company has also installed its own equipment at some of its packaging and testing subcontractors in order to ensure a certain level of capacity, assuming the subcontractor has ample employees to operate the equipment. | |||||||||||||||||||||
The amount of equipment and machinery consigned to a foundry in China was $7.6 million and $8.1 million as of January 25, 2015 and January 26, 2014, respectively. |
Reorganization_Costs
Reorganization Costs | 12 Months Ended | |||
Jan. 25, 2015 | ||||
Reorganization Costs [Abstract] | ||||
Reorganization Costs | Reorganization Costs | |||
During fiscal year 2013, reorganization costs mainly represent the severance costs associated with the integration of the acquired Gennum business with the Company’s pre-existing business and the consolidation of certain operations of the combined Company. | ||||
The following table summarizes the reorganization charges incurred and liability balance included in “Accrued liabilities” on the consolidated balance sheet as January 27, 2013, January 26, 2014 and January 25, 2015. The reorganization charges below were included in “Selling, general and administrative” on the consolidated statements of operations for the respective periods. | ||||
(in thousands) | Severance and related costs | |||
Balance at January 27, 2013 | $ | 1,330 | ||
Cash payments/other | (849 | ) | ||
Balance at January 26, 2014 | 481 | |||
Cash payments/other | (237 | ) | ||
Balance at January 25, 2015 | $ | 244 | ||
Restructuring_Costs
Restructuring Costs | 12 Months Ended | |||||||||||
Jan. 25, 2015 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Restructuring Costs | Restructuring | |||||||||||
In the fourth quarter of fiscal year 2014, the Company made a strategic decision to reduce its investment in the long haul optical market, realign its product groupings, and align spending to current demand levels. As a result of these actions, the Company incurred restructuring costs, associated with the resulting workforce reductions and contract cancellations which are included in “Restructuring” on the consolidated statement of operations. | ||||||||||||
Activity under the restructuring plan is summarized in the following table: | ||||||||||||
(in thousands) | One-time employee termination benefits | Contract commitments | Total | |||||||||
Balance at January 27, 2013 | $ | — | $ | — | $ | — | ||||||
Charges | 1,841 | 1,245 | 3,086 | |||||||||
Cash payments | (454 | ) | — | (454 | ) | |||||||
Balance at January 26, 2014 | 1,387 | 1,245 | 2,632 | |||||||||
Charges | 662 | 623 | 1,285 | |||||||||
Cash payments | (1,767 | ) | (1,753 | ) | (3,520 | ) | ||||||
Reclassifications | — | (115 | ) | (115 | ) | |||||||
Balance at January 25, 2015 | $ | 282 | $ | — | $ | 282 | ||||||
These restructuring liabilities are presented in “Accrued liabilities” in the consolidated balance sheets. The restructuring actions also resulted in $4.9 million of additional contract commitment cancellation charges. Of this amount $1.7 million is included in “Cost of sales” and $3.2 million is included in “Product development and engineering” on the consolidated statements of operations. In connection with the restructuring activities, $15.0 million of inventory was determined not to be recoverable and was written off as a charge to “Cost of sales - lower of cost or market write-down” in fiscal 2014. Additionally, certain property, plant and equipment, intangible assets and goodwill were determined to be impaired. See Notes 7 and 8. In the first quarter of fiscal year 2015, the Company incurred additional costs to relocate personnel and consolidate operations. The Company completed the restructuring activities in the first quarter of fiscal 2015. | ||||||||||||
During the fiscal year ended January 25, 2015, the Company implemented a strategic decision to reduce its investment in the defense and microwave communications infrastructure market and to further reduce investment in the optical long-haul market. This decision resulted in the impairment of certain property, plant and equipment and intangible assets. See Notes 7 and 8. As a result of this strategy, the Company also recorded charges associated with contract commitment cancellations totaling $3.0 million that are included in "Cost of sales" on the consolidated statements of operations. |
Stock_Repurchase_Program_And_S
Stock Repurchase Program And Shares Withheld From Vested Restricted Shares | 12 Months Ended | ||||||||||||||||||||
Jan. 25, 2015 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Stock Repurchase Program And Shares Withheld From Vested Restricted Shares | Stock Repurchase Program and Shares Withheld from Vested Restricted Shares | ||||||||||||||||||||
The Company maintains an active stock repurchasing program which was approved by the Company’s Board of Directors in March 2008 (the “2008 program”). The 2008 program does not have an expiration date and the Board of Directors has authorized expansion of the program over the years. In November 2011 the Board of Directors authorized the Company to repurchase up to $50.0 million of shares of the Company’s common stock from time to time through negotiated or open market transactions (the “2011 Program”). On August 21, 2013, the Company announced an additional $50.0 million expansion of the 2011 Program, for a total authorized 2011 Program of $100.0 million. In November 2014, the Company announced that the Board of Directors had authorized an additional $28.4 million of repurchases under the 2011 Program, which together with the $21.6 million then remaining under the program, brought the remaining total authorization to $50.0 million, such authorization being subject to certain limitation, guidelines and conditions as directed by the Board of Directors. | |||||||||||||||||||||
The following table summarizes the stock repurchase activities and shares withheld from vested restricted shares during the periods indicated: | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||||||||||||
(in thousands, except number of shares) | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||
Shares repurchased under the 2011 program | 1,578,869 | $ | 40,906 | 1,034,491 | $ | 30,000 | 263,443 | $ | 7,500 | ||||||||||||
Shares withheld from vested restricted shares | — | — | — | — | 9,696 | 269 | |||||||||||||||
Total treasury shares acquired | 1,578,869 | $ | 40,906 | 1,034,491 | $ | 30,000 | 273,139 | $ | 7,769 | ||||||||||||
The Company currently intends to hold the repurchased and withheld shares as treasury stock. The Company typically reissues treasury shares to settle stock option exercises and restricted share grants. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Jan. 25, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize revenue from 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. The guidance addresses, in particular, contracts with more than one performance obligation, as well as the accounting for some costs to obtain or fulfill a contract with a customer, and provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. Public entities are required to apply the amendments on either a full- or modified-retrospective basis for annual periods beginning after December 15, 2016 and for interim periods within those annual periods. This update will be effective for the Company beginning in the first quarter of fiscal year 2018. Early adoption is not permitted. The Company is currently assessing the basis of adoption and evaluating the impact of the adoption of the update on its consolidated financial statements. | |
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 changes the requirements for reporting discontinued operations in FASB Accounting Standards Codification Subtopic 205-20, such that a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. ASU 2014-08 requires an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections, respectively, of the statement of financial position, as well as additional disclosures about discontinued operations. Additionally, ASU 2014-08 requires disclosures about a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements and expands the disclosures about an entity’s significant continuing involvement with a discontinued operation. The accounting update is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The Company does not believe that the adoption of this update will have a material impact on its consolidated financial statements. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||||||||
Jan. 25, 2015 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||||||||||||||||
The following tables set forth the Company’s unaudited consolidated statements of operations data for each of the eight quarterly periods ended January 25, 2015, as well as that data expressed as a percentage of the Company’s net sales for the quarters presented. The sum of quarterly per share amounts may differ from year to date amounts due to rounding. | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||||||||||||||||||
Fiscal Year 2015 | Fiscal Year 2014 | |||||||||||||||||||||||||||||||
Quarters Ended | Quarters Ended | |||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | April 27, | July 27, | October 26, | January 25, | April 28, | July 28, | October 27, | January 26, | ||||||||||||||||||||||||
2014 | 2014 | 2014 | 2015 | 2013 | 2013 | 2013 | 2014 | |||||||||||||||||||||||||
Net sales | $ | 132,859 | $ | 145,742 | $ | 148,890 | $ | 130,394 | $ | 162,407 | $ | 165,010 | $ | 141,026 | $ | 126,534 | ||||||||||||||||
Gross profit | 78,084 | 88,221 | 89,326 | 73,161 | 97,287 | 100,708 | 83,411 | 53,805 | ||||||||||||||||||||||||
Operating (loss) income | 11,149 | 22,057 | 22,810 | (13,759 | ) | 20,078 | 24,457 | 13,265 | (166,717 | ) | ||||||||||||||||||||||
Net income (loss) | $ | 7,867 | $ | 17,898 | $ | 17,623 | $ | (15,441 | ) | $ | 14,777 | $ | 19,112 | $ | 12,453 | $ | (210,808 | ) | ||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.27 | $ | 0.26 | $ | (0.23 | ) | $ | 0.22 | $ | 0.28 | $ | 0.18 | $ | (3.12 | ) | ||||||||||||||
Diluted | $ | 0.12 | $ | 0.26 | $ | 0.26 | $ | (0.23 | ) | $ | 0.22 | $ | 0.28 | $ | 0.18 | $ | (3.12 | ) | ||||||||||||||
Weighted average number of shares used in computing earnings per share: | ||||||||||||||||||||||||||||||||
Basic | 67,300 | 67,208 | 67,162 | 66,763 | 66,956 | 67,614 | 67,792 | 67,523 | ||||||||||||||||||||||||
Diluted | 67,970 | 67,850 | 67,654 | 66,763 | 68,579 | 69,090 | 68,871 | 67,523 | ||||||||||||||||||||||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Jan. 25, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On March 4, 2015, the Company announced that it had completed the acquisition of Triune Systems, LLC. a privately-held supplier of wireless charging and power management platforms targeted at high and low power, high efficiency applications. Under the terms of the purchase agreement, the Company acquired all of the outstanding equity interests of Triune Systems for an aggregate purchase price of $45.0 million consisting of $35.0 million cash paid at closing, with an additional cash consideration of $10.0 million to be paid in six months and additional contingent consideration subject to achieving certain future financial goals. In conjunction with the transaction,the Company expects to fund the aggregate purchase price using its revolving line of credit. |
Schedule_II_Valuation_And_Qual
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended | |||||||||||||||
Jan. 25, 2015 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||
THREE YEARS ENDED JANUARY 25, 2015 | ||||||||||||||||
Total of Accounts receivable and other sales allowances | Balance at | Charged (Reversal) to Costs and Expenses | Deductions | Balance at | ||||||||||||
Beginning of Year | End of Year | |||||||||||||||
Year ended January 27, 2013 | $ | 3,593,579 | $ | 1,323,491 | $ | — | $ | 4,917,070 | ||||||||
Year ended January 26, 2014 | $ | 4,917,070 | $ | (567,394 | ) | $ | (525,000 | ) | $ | 3,824,676 | ||||||
Year ended January 25, 2015 | $ | 3,824,676 | $ | 396,151 | $ | (697,679 | ) | $ | 3,523,148 | |||||||
(a)(3) | Exhibits. These exhibits are available without charge upon written request directed to the Company’s Secretary at 200 Flynn Road, Camarillo, CA 93012. Documents that are not physically filed with this report are incorporated herein by reference to the location indicated. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 25, 2015 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year |
The Company reports results on the basis of 52 and 53 week periods and ends its fiscal year on the last Sunday in January. | |
Principles of Consolidation | Principles of Consolidation |
The accompanying consolidated financial statements include the accounts of Semtech Corporation and its wholly-owned subsidiaries. All inter-company transactions and accounts have been eliminated. | |
Segment Information | Segment Information |
The Company's Chief Executive Officer (“CEO”) has been identified as the Chief Operating Decision Maker (“CODM”) as defined by guidance regarding segment disclosures (see Note 17 for further discussion). In fiscal year 2015, the Company completed the reassessment of its operations in light of its restructuring efforts (see Note 19 for further discussion) and recent strategic business decisions. Based on this reassessment, the Company has identified four operating segments in total. Three of the four operating segments aggregate into one reportable segment, the Semiconductor Products Group. The remaining operating segment, the Systems Innovation Group (shown as “All others”), could not be aggregated with the other operating segments and did not meet the criteria for a separate reportable segment as defined by the guidance regarding segment disclosure. As a result, the financial activity associated with the Systems Innovation Group is reported separately from the Company's Semiconductor Products Group. This separate reporting is included in the “All others” category. Prior to fiscal year 2015, the Company included “All others” as part of the Company’s one reportable segment. The historical activity of the reportable segment and “All others” has been recast for consistent presentation for all periods presented. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Reclassification | Reclassification |
Certain prior period footnote amounts have been re-cast to reflect the effect of the changes to the Company's identified operating segments. | |
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents and Investments |
The Company considers all highly-liquid investments with an original maturity of 90 days or less to be cash equivalents. The Company maintains cash balances and investments in highly-qualified financial institutions. At various times such amounts are in excess of insured limits. Investments consist of government and corporate obligations and bank time deposits. The Company’s investment policy restricts investments to high credit quality investments with limits on the length to maturity and the amount invested with any one issuer. These investments, especially corporate obligations, are subject to default risk. The Company designates its investments as available for sale (“AFS”). Investments designated as AFS are reported at fair value. The Company records the unrealized gains and losses, net of tax, in stockholders’ equity as a component of comprehensive income. Realized gains or losses are recorded in “Interest income and other (expense) income, net” in the consolidated statements of operations. | |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts |
Accounts receivable are recorded at net realizable value or the amount that the Company expects to collect on gross customer trade receivables. The Company evaluates the collectability of its accounts receivable based on a combination of factors. The Company generally does not require collateral on accounts receivable as the majority of the Company’s customers are large, well-established companies. Historically, bad debt provisions have been consistent with management’s expectations. If the Company becomes aware of a customer’s inability to meet its financial obligations after a sale has occurred, it records an allowance to reduce the net receivable to the amount it reasonably believes it will be able to collect from the customer. For all other customers, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment and historical experience. If the financial condition of the Company’s customers were to deteriorate or if economic conditions worsen, additional allowances may be required in the future. All of the Company’s accounts receivables are trade-related receivables. | |
Inventories | Inventories |
Inventories are stated at lower of cost or market and consist of materials, labor and overhead. The Company determines the cost of inventory by the first-in, first-out method. The Company evaluates inventories for excess quantities and obsolescence. This evaluation includes analysis of sales levels by product and projections of future demand. In order to state the inventory at lower of cost or market, the Company maintains reserves against its inventory. If future demand or market conditions are less favorable than the Company’s projections, a write-down of inventory may be required, and would be reflected in cost of goods sold in the period the revision is made. | |
Business Combinations | Business Combinations |
The Company accounts for business combinations at fair value. Goodwill is measured as the excess of consideration transferred over the acquisition date net fair values of the assets acquired and the liabilities assumed. All changes that do not qualify as measurement period adjustments are included in current period earnings. Significant judgment is required to determine the estimated fair value for assets and liabilities acquired and to assign their respective useful lives. The fair values assigned to tangible and intangible assets acquired and liabilities assumed, including contingent consideration, are based on management’s estimates and assumptions, as well as other information compiled by management, including available historical information and valuations that utilize customary valuation procedures and techniques. | |
The Company employs the income approach to estimate the fair value of intangible assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. The fair value of acquired in-process research and development projects (“IPR&D”) was determined using an income approach or replacement cost approach as applicable. The replacement cost approach was used for IPR&D projects that were considered long-term core investments and were not anticipated to be profitable for a period of time. IPR&D projects which were valued using an income approach, measured the returns attributable to each specific IPR&D project, discounted to present value using a risk-adjusted rate of return, including as appropriate, any tax benefits derived from amortizing the intangible assets for tax purposes. Significant estimates and assumptions inherent in the valuations reflect consideration of other marketplace participants, and include the amount and timing of future cash flows (including expected growth rates and profitability), the underlying product life cycles, economic barriers to entry, a brand’s relative market position and the discount rate applied to the cash flows, among others. | |
If actual results differ from the estimates and judgments used in these estimates, the amounts recorded in the financial statements could result in a possible impairment of the intangible assets and goodwill, or require acceleration of the amortization expense of finite-lived intangible assets. | |
Property, Plant and Equipment | Property, Plant and Equipment |
Property, plant and equipment are stated at cost less depreciation and impairments. The Company’s cost basis includes certain assets acquired in business combinations that were recorded at fair value as of the date of acquisition. Depreciation is computed over the estimated useful lives of the related asset type or term of the operating lease using the straight-line method for financial statement purposes. Maintenance and repairs are charged to expense as incurred and the costs of additions and betterments that increase the useful lives of the assets are capitalized. Also, the Company reassesses the estimated remaining useful lives of any impaired assets and adjusts accordingly estimates of future depreciation expense related to these assets. | |
Impairment of Goodwill, Other Intangible and Long-Lived Assets | Impairment of Goodwill, Other Intangible and Long-Lived Assets |
Goodwill | |
Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the purchase method. Goodwill is not amortized but is tested for impairment using a two-step method. Step one is the identification of potential impairment. The Company’s operating segments represent its reporting units since segment management, who report to the CODM, regularly review operating results and make resource allocation decisions at this level. This involves comparing the fair value of each reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds the carrying amount, the goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of impairment loss, if any. The Company tests, by reporting unit, goodwill and other indefinite-lived intangible assets for impairment at November 30 or more frequently if it believes indicators of impairment exist or if it makes changes to a reporting unit with assigned goodwill. | |
For its annual impairment review, the Company primarily uses an income approach, which incorporates multi-period excess earnings present value techniques (discounted cash flows) as well as other generally accepted valuation methodologies to determine the fair value of the assets using Level 3 inputs. The Company's assumptions incorporate judgments as to the price received to sell a reporting unit as a whole in an orderly transaction between market participants at the measurement date. Considering the integration of its operations, the Company has assumed that the highest and best use of a reporting unit follows an “in-use” valuation premise. | |
Significant management judgment is required in determining the estimations of future cash flows, which is dependent on internal forecasts, the long-term rate of growth for the Company's business, the useful life over which cash flows will occur, and the weighted average cost of capital. The value of goodwill, could be impacted by future adverse changes such as: (i) any future declines in operating results, (ii) a decline in the valuation of technology company stocks, including the valuation of the Company's common stock, (iii) a significant slowdown in the worldwide economy and the semiconductor industry or (iv) any failure to meet the Company's performance projections included in its forecasts of future operating results. | |
Other Intangibles and Long-lived Assets | |
Finite-lived intangible assets resulting from business acquisitions or technology licenses purchased are amortized on a straight-line basis over their estimated useful lives. The useful lives of acquisition-related intangible assets represent the point where over 90% of realizable undiscounted cash flows for each intangible asset are recognized. The assigned useful lives are based upon the Company’s historical experience with similar technology and other intangible assets owned by the Company. The useful life of technology licenses is usually based on the term of the agreement. | |
In-process research and development is recorded at fair value as of the date of acquisition as an indefinite-lived intangible asset until the completion or abandonment of the associated research and development efforts or impairment. Upon completion of development, acquired in-process research and development assets are transferred to finite-lived intangible assets and amortized over their useful lives. | |
The Company reviews indefinite-lived intangible assets for impairment on an annual basis in conjunction with goodwill or whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability of indefinite-lived intangible assets is measured by comparing the carrying amount of the asset to the future discounted cash flows the asset is expected to generate. Also, the Company reassesses the estimated remaining useful lives of any impaired assets and adjusts accordingly estimates of future amortization expense related to these assets. | |
The Company assesses finite-lived intangibles and long-lived assets for impairment when indicators of impairment, such as reductions in demand or significant economic slowdowns in the semiconductor industry, are present. Reviews are performed to determine whether the carrying value of an asset is impaired, based on comparisons to undiscounted expected future cash flows. If this comparison indicates that there is impairment, the impaired asset is written down to fair value, which is typically calculated using: (i) quoted market prices and/or (ii) discounted expected future cash flows utilizing a discount rate. Impairment is based on the excess of the carrying amount over the fair value of those assets. | |
Cost Method Investments | Cost Method Investments |
The Company reviews its cost method investments on a regular basis to evaluate whether or not any investment has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer and its intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment's amortized cost basis. If the Company believes that an other-than-temporary decline exists in one of these investments, the Company writes down the impaired investment to fair value. Any impairment to these investments would be recorded as a non-operating expense in our Consolidated Statements of Operations. | |
Functional Currency | Functional Currency |
The Company has concluded that, with the exception of a subsidiary based in Reynosa, Mexico, the functional currency of all subsidiaries is the United States Dollar. | |
Investments | Investments that have original maturities of three months or less are accounted for as cash equivalents. This includes money market funds, time deposits and U.S. government obligations. Temporary and long-term investments consist of government, bank and corporate obligations, and bank time deposits with original maturity dates in excess of three months. Temporary investments have original maturities in excess of three months, but mature within twelve months of the balance sheet date. Long-term investments have original maturities in excess of twelve months. The Company determines the cost of securities sold based on the specific identification method. Realized gains or losses are reported in “Interest income and other (expense) income, net” on the consolidated statements of operations. |
The Company classifies its investments as available-for-sale because it may sell some securities prior to maturity. The Company’s investments are subject to market risk, primarily interest rate and credit risks. The Company’s investments are managed by a limited number of outside professional managers that operate within investment guidelines set by the Company. These guidelines include specified permissible investments, minimum credit quality ratings and maximum average duration restrictions and are intended to limit market risk by restricting the Company’s investments to high quality debt instruments with relatively short-term maturities. | |
Fair Value Measurement | Fair Value Measurements |
When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The Company uses the following three levels of inputs in determining the fair value of the Company’s assets and liabilities, focusing on the most observable inputs when available: | |
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |
Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. | |
To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement. | |
Fair Value of Financial Instruments | Available-for-sale securities included in Level 2 are valued utilizing inputs obtained from an independent third-party service (the “Service”), which uses quoted market prices for identical or comparable instruments rather than direct observations of quoted prices in active markets. The Service gathers observable inputs for all of our fixed income securities from a variety of industry data providers, for example, large custodial institutions and other third-party sources. Once the observable inputs are gathered by the Service, all data points are considered and an average price is determined. The Service’s providers utilize a variety of inputs to determine their quoted prices. The Company reviews and evaluates the values provided by the Service and agrees with the valuation methods and assumptions used in determining the fair value of investments. The Company believes this method provides a reasonable estimate for fair value. |
The fair value of the interest rate cap at January 25, 2015 is estimated as described in Note 11 and is included in “Other assets” on the consolidated balance sheet. | |
Instruments Not Recorded at Fair Value on a Recurring Basis | |
Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities include: cash and cash equivalents, receivables, net, certain other assets, accounts payable and accrued expenses, accrued personnel costs, and other current liabilities. | |
The Company’s long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes. | |
Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis | |
The Company reduces the carrying amounts of its goodwill, intangible assets, long-lived assets and non-marketable equity securities to fair value when held for sale or determined to be impaired. | |
For its investment in equity interests, the Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of its cost method investment during fiscal year 2015. | |
Interest Rate Derivative | Interest Rate Derivative |
The Company incurs interest expense through its variable rate debt. To manage its interest rate risk, the Company occasionally hedges the future cash flows of its variable rate debt, principally through interest rate contracts with major financial institutions. Interest rate contracts that meet specific criteria are accounted for as cash flow hedges. | |
The Company’s objective in using interest rate contracts is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate contracts as part of its interest rate risk management strategy. Interest rate cap contracts involve the receipts of variable amounts from a counterparty when one-month LIBOR exceeds the capped interest rate in exchange for an upfront payment from the Company, capping the Company’s one-month LIBOR floating interest payments at the strike rate on its interest rate cap contract. | |
The effective portion of changes in the fair value of derivatives designated, and that qualify, as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The upfront payment the Company paid for the interest rate cap agreement will be amortized out of accumulated other comprehensive income and recorded as interest expense according to the amortization schedule created at inception of the hedging relationship. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company records derivative instruments in the statements of cash flows to operating, investing, or financing activities consistent with the cash flows of the hedged item. | |
The assessment of effectiveness is based on the total changes in an option’s cash flows such that the assessment will include the interest rate caps entire change in fair value. The interest rate cap is considered a highly effective hedge since the key features and terms match with the hedged item at inception. Key features and terms are notional amount, cap effective date, rate threshold, index, repricing dates, payments dates, and maturity dates. | |
Revenue Recognition | Revenue Recognition |
The Company recognizes product revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. Recovery of costs associated with product design and engineering services are recognized during the period in which services are performed. The product design and engineering recovery, when recognized, will be reported as a reduction to product development and engineering expense. Historically, these recoveries have not exceeded the cost of the related development efforts. | |
The Company includes revenue related to granted technology licenses as part of “Net sales.” Historically, revenue from these arrangements has not been significant though it is part of its recurring ordinary business. In the third quarter of fiscal year 2013, the Company entered into a single licensing arrangement that resulted in the recognition of $7.5 million of revenue. | |
The Company defers revenue recognition on shipment of products to certain customers, principally distributors, under agreements which provide for limited pricing credits or return privileges, until these products are sold through to end-users or the return privileges lapse. For sales subject to certain pricing credits or return privileges, the amount of future pricing credits or inventory returns cannot be reasonably estimated given the relatively long period in which a particular product may be held by the customer. Therefore, the Company has concluded that sales to customers under these agreements are not fixed and determinable at the date of the sale and revenue recognition has been deferred. The Company estimates the deferred gross margin on these sales by applying an average gross profit margin to the actual gross sales. The average gross profit margin is calculated for each category of material using standard costs which is expected to approximate actual costs at the date of sale. The estimated deferred gross margins on these sales, where there are no outstanding receivables, are recorded on the consolidated balance sheets under the heading of “Deferred revenue.” | |
The Company records a provision for estimated sales returns in the same period as the related revenues are recorded. The Company bases these estimates on historical sales returns and other known factors. Actual returns could be different from Company estimates and current provisions for sales returns and allowances, resulting in future charges to earnings. | |
Cost of Sales | Cost of Sales |
Cost of sales includes materials, depreciation on fixed assets used in the manufacturing process, shipping costs, direct labor and overhead. | |
Sales and Marketing | Sales and Marketing |
The Company expenses sales and marketing costs, which include advertising costs, as they are incurred. | |
Product Development and Engineering | Product Development and Engineering |
Product development and engineering costs are charged to expense as incurred. Recoveries from nonrecurring engineering services are recorded as an offset to product development expense incurred in support of this effort since these activities do not represent an earnings process core to the Company’s business and serve as a mechanism to partially recover development expenditures. | |
Income Taxes | Income Taxes |
The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts and their respective tax bases. The consolidated balance sheets include current and long term prepaid taxes under “Prepaid taxes” and “Other assets” and current and long term liabilities for uncertain tax positions under “Accrued liabilities” and “Other long-term liabilities.” | |
As part of the process of preparing the Company’s consolidated financial statements, the Company estimates income taxes in each of the jurisdictions in which it operates. This process involves estimating the current tax liability together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, it must establish a valuation allowance. To the extent the Company changes its valuation allowance in a period, the change is generally recorded through the tax provision on the consolidated statements of operations. | |
The income tax effects of share-based payments are recognized for financial reporting purposes only if such awards are expected to result in a tax deduction. The Company does not recognize a deferred tax asset for an excess tax benefit (that is, a tax benefit that exceeds the tax benefit for the amount of compensation cost recognized for the award for financial reporting purposes) that has not been realized. In determining when an excess tax benefit is realized, the Company has elected to follow the ordering provision of the tax law. | |
For intra-entity differences between the tax basis of an asset in the buyer’s tax jurisdiction and their cost as reported in the consolidated financial statements, the Company does not recognize a deferred tax asset. Income taxes paid on intra-entity profits on assets remaining within the group are accounted for as prepaid taxes. | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income |
Other comprehensive income includes unrealized gains and losses on available-for-sale investments, unrealized loss on interest rate hedging activities and foreign currency translation adjustments, net of tax. This information is provided in our consolidated statements of comprehensive income. | |
Share-Based Compensation | Stock-Based Compensation |
The Company has various equity award plans (“Plans”) that provide for granting stock based awards to employees and non-employee directors of the Company. The Plans provide for the granting of several available forms of stock compensation. As of January 25, 2015, the Company has granted stock option awards (“Options”) and restricted stock unit awards (“RSU”) under the Plans and has also issued some stock-based compensation outside of any plan, including options and restricted stock issued as inducements to join the Company. | |
Share-based Payment Arrangements | |
The Company has various equity award plans that provide for granting stock-based awards to employees and non-employee directors of the Company. The plans provide for the granting of several available forms of stock compensation. As of January 25, 2015, the Company has granted options and restricted stock under the plans and has also issued some stock-based compensation outside of the plans, including options and restricted stock issued as inducements to join the Company. | |
Grant Date Fair Values and Underlying Assumptions; Contractual Terms | |
The Company uses the Black-Scholes pricing model to value options. For awards classified as equity, stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as an expense over the employee’s or director’s requisite service period. For awards classified as liabilities, stock-based compensation cost is measured at fair value at the end of each reporting date until the date of settlement, and is recognized as an expense over the employee’s or director’s requisite service period. Expected volatilities are based on historical volatility using daily and monthly stock price observations. | |
Earnings per Share | Basic earnings (loss) per common share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the reporting period. Diluted earnings (loss) per common share incorporates the incremental shares issuable, calculated using the treasury stock method, upon the assumed exercise of stock options and the vesting of restricted stock. |
Contingencies | Contingencies |
The Company accrues an undiscounted liability for contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated, and the Company discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for our financial statements not to be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. | |
Because litigation outcomes are inherently unpredictable, the Company’s evaluation of legal proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. If the assessments indicate that loss contingencies that could be material to any one of our financial statements are not probable, but are reasonably possible, or are probable, but cannot be estimated, then the Company discloses the nature of the loss contingencies, together with an estimate of the range of possible loss or a statement that such loss is not reasonably estimable. | |
The Company also records contingent earn-out liabilities which represent the Company’s requirement to make additional payments related to acquisitions based on certain performance targets achieved during the earn-out periods. For such earn-outs that do not relate to employee services, the Company estimates the fair value based on probability assessments of achieving the specified performance targets. | |
Subsequent Events | Subsequent Events |
The Company evaluates all events through the issuance date of the consolidated financial statements to determine whether any subsequent events have occurred that require recognition or disclosure. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Jan. 25, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of property, plant and equipment | The estimated service lives for property and equipment is as follows: | ||||||||||||
Estimated | |||||||||||||
Useful Lives | |||||||||||||
Buildings and leasehold improvements | 7 to 39 years | ||||||||||||
Enterprise resource planning systems | 13 years | ||||||||||||
Machinery and equipment | 5 to 8 years | ||||||||||||
Transportation vehicles | 5 years | ||||||||||||
Furniture and fixtures | 7 years | ||||||||||||
Computers and computer software | 3 years | ||||||||||||
Schedule of deferred revenue | The following table summarizes the deferred revenue balance: | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | |||||||||||
Deferred revenues | $ | 6,237 | $ | 7,179 | |||||||||
Deferred cost of revenues | (1,562 | ) | (1,698 | ) | |||||||||
Deferred revenue, net | 4,675 | 5,481 | |||||||||||
Deferred product design and engineering recoveries | 1,173 | 1,786 | |||||||||||
Total deferred revenue | $ | 5,848 | $ | 7,267 | |||||||||
Schedule of accumulated other comprehensive income (loss) | The following table summarizes the changes in accumulated other comprehensive income (loss) by component: | ||||||||||||
(in thousands) | Available for Sale Investments | Interest Rate Hedge | Cumulative Translation Adjustments | Total | |||||||||
Balance at January 29, 2012 | 37 | — | 498 | 535 | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax | (31 | ) | (353 | ) | 203 | (181 | ) | ||||||
Amounts reclassified, net of tax | (1 | ) | — | — | (1 | ) | |||||||
Net current period other comprehensive income (loss) | (32 | ) | (353 | ) | 203 | (182 | ) | ||||||
Balance at January 27, 2013 | 5 | (353 | ) | 701 | 353 | ||||||||
Other comprehensive income (loss) before reclassifications, net of tax | (5 | ) | (145 | ) | — | (150 | ) | ||||||
Amounts reclassified, net of tax | — | 50 | — | 50 | |||||||||
Net current period other comprehensive loss | (5 | ) | (95 | ) | — | (100 | ) | ||||||
Balance at January 27, 2013 | — | (448 | ) | 701 | 253 | ||||||||
Other comprehensive income (loss) before reclassifications, net of tax | — | (243 | ) | — | (243 | ) | |||||||
Amounts reclassified, net of tax | — | 153 | — | 153 | |||||||||
Net current period other comprehensive loss | — | (90 | ) | — | (90 | ) | |||||||
Balance at January 25, 2015 | — | (538 | ) | 701 | 163 | ||||||||
Schedule of earnings per share calculation, basic and diluted | The computation of basic and diluted earnings per common share was as follows: | ||||||||||||
Fiscal Year Ended | |||||||||||||
(in thousands, except per share amounts) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||
Net income (loss) | $ | 27,947 | $ | (164,466 | ) | $ | 41,939 | ||||||
Weighted average common shares outstanding - basic | 67,108 | 67,471 | 65,809 | ||||||||||
Dilutive effect of employee equity incentive plans | 577 | 0 | 1,663 | ||||||||||
Weighted average common shares outstanding - diluted | 67,685 | 67,471 | 67,472 | ||||||||||
Basic earnings (loss) per common share | $ | 0.42 | $ | (2.44 | ) | $ | 0.64 | ||||||
Diluted earnings (loss) per common share | $ | 0.41 | $ | (2.44 | ) | $ | 0.62 | ||||||
Anti-dilutive shares not included in the above calculations | 1,714 | 1,245 | 783 | ||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||
Jan. 25, 2015 | ||||
Schedule of net revenue and net loss attributable to acquired entities | For fiscal year 2013 the Company recognized the following net revenue and corresponding net income (loss) attributable to Gennum: | |||
Fiscal Year Ended | ||||
(in thousands) | 27-Jan-13 | |||
Net revenue - Gennum | $ | 129,558 | ||
Net loss - Gennum | $ | (36,546 | ) | |
Schedule of pro forma information | Unaudited Consolidated Pro forma Information: | |||
Fiscal Year Ended | ||||
27-Jan-13 | ||||
(in thousands) | (unaudited) | |||
Revenue | $ | 603,067 | ||
Net income | $ | 56,980 | ||
Gennum | ||||
Schedule of purchase price allocation | The Company’s allocation of the total purchase price as of March 20, 2012 is summarized below: | |||
(in thousands) | At March 20, 2012 | |||
Cash | $ | 19,664 | ||
Accounts receivable, less allowances | 14,032 | |||
Inventories | 62,941 | |||
Prepaid expenses | 3,832 | |||
Income taxes receivable | 1,467 | |||
Deferred tax assets - current | 8,590 | |||
Other current assets | 7,804 | |||
Property, plant and equipment | 25,702 | |||
Amortizable intangible assets | 129,863 | |||
In-process research and development | 29,100 | |||
Goodwill | 261,891 | |||
Deferred tax assets - non-current | 31,235 | |||
Other non-current assets | 8 | |||
Deferred tax liabilities | (47,077 | ) | ||
Accounts payable | (18,232 | ) | ||
Accrued liabilities | (24,274 | ) | ||
Total acquisition consideration | $ | 506,546 | ||
(in thousands) | At March 20, 2012 | |||
Amortizable intangible assets: | ||||
Developed technology | $ | 95,100 | ||
Customer relationships | 28,000 | |||
Other intangible assets | 6,763 | |||
$ | 129,863 | |||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jan. 25, 2015 | ||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||
Summary of investments | The following table summarizes the Company’s available-for-sale investments: | |||||||||||||||||||||||
January 25, 2015 | January 26, 2014 | |||||||||||||||||||||||
(in thousands) | Market Value | Adjusted | Gross | Market Value | Adjusted | Gross | ||||||||||||||||||
Cost | Unrealized | Cost | Unrealized | |||||||||||||||||||||
Gain | Gain | |||||||||||||||||||||||
Agency securities | $ | 23,271 | $ | 23,271 | $ | — | $ | 18,258 | $ | 18,257 | $ | 1 | ||||||||||||
Bank time deposits | — | — | — | — | — | — | ||||||||||||||||||
Total investments | $ | 23,271 | $ | 23,271 | $ | — | $ | 18,258 | $ | 18,257 | $ | 1 | ||||||||||||
Schedule of investments, classified by maturity period | The following table summarizes the maturities of the Company’s available-for-sale investments: | |||||||||||||||||||||||
January 25, 2015 | January 26, 2014 | |||||||||||||||||||||||
(in thousands) | Market Value | Adjusted Cost | Market Value | Adjusted Cost | ||||||||||||||||||||
Within 1 year | $ | 23,271 | $ | 23,271 | $ | 14,584 | $ | 14,584 | ||||||||||||||||
After 1 year through 5 years | — | — | 3,674 | 3,673 | ||||||||||||||||||||
Total investments | $ | 23,271 | $ | 23,271 | $ | 18,258 | $ | 18,257 | ||||||||||||||||
Summary of unrealized gains (losses) on investments | The following table summarizes net unrealized losses arising in the periods presented in addition to the tax associated with these comprehensive income items: | |||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
(in thousands) | January 25, | January 26, | January 27, | |||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||
Unrealized loss, net of tax | $ | — | $ | (5 | ) | $ | (32 | ) | ||||||||||||||||
Decrease to deferred tax liability | $ | — | $ | (2 | ) | $ | (10 | ) | ||||||||||||||||
Schedule of interest income generated from investments | The following table summarizes interest income generated from investments and cash and cash equivalents: | |||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
(in thousands) | January 25, | January 26, | January 27, | |||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||
Interest income | $ | 43 | $ | 342 | $ | 404 | ||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Jan. 25, 2015 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Financial Assets Measured At Fair Value On A Recurring Basis | Financial assets measured and recorded at fair value on a recurring basis consisted of the following types of instruments: | |||||||||||||||||||||||||||||||
Fair Value as of January 25, 2015 | Fair Value as of January 26, 2014 | |||||||||||||||||||||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Agency securities | $ | 23,271 | $ | 23,271 | $ | — | $ | — | $ | 17,258 | $ | 13,584 | $ | 3,674 | $ | — | ||||||||||||||||
Bank time deposits | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total available-for-sale securities | 23,271 | 23,271 | — | $ | — | 17,258 | 13,584 | 3,674 | $ | — | ||||||||||||||||||||||
Interest rate cap | 33 | — | 33 | — | 316 | — | 316 | — | ||||||||||||||||||||||||
Total financial assets | $ | 23,304 | $ | 23,271 | $ | 33 | $ | — | $ | 17,574 | $ | 13,584 | $ | 3,990 | $ | — | ||||||||||||||||
Financial Assets Measured At Fair Value On A Recurring Basis By Balance Sheet Grouping | Financial assets measured and recorded at fair value on a recurring basis were presented on the Company’s consolidated balance sheets as follows: | |||||||||||||||||||||||||||||||
Fair Value as of January 25, 2015 | Fair Value as of January 26, 2014 | |||||||||||||||||||||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Cash equivalents | 23,271 | 23,271 | — | — | 13,584 | 13,584 | — | — | ||||||||||||||||||||||||
Long-term investments | — | — | — | — | 3,674 | — | 3,674 | — | ||||||||||||||||||||||||
Other assets | 33 | — | 33 | — | 316 | — | 316 | — | ||||||||||||||||||||||||
Total financial assets | $ | 23,304 | $ | 23,271 | $ | 33 | $ | — | $ | 17,574 | $ | 13,584 | $ | 3,990 | $ | — | ||||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Jan. 25, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Summary of inventories | Inventories, consisting of material, material overhead, labor, and manufacturing overhead, are stated at the lower of cost (first-in, first-out) or market and consist of the following: | |||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||
Raw materials | $ | 1,624 | $ | 1,971 | ||||
Work in progress | 36,759 | 45,508 | ||||||
Finished goods | 35,285 | 12,788 | ||||||
Inventories | $ | 73,668 | $ | 60,267 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||||||||||
Jan. 25, 2015 | ||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||
Schedule of property, plant and equipment | The following is a summary of property and equipment, at cost less accumulated depreciation: | |||||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||||||
Property | $ | 9,022 | $ | 9,022 | ||||||||||||
Buildings | 18,657 | 18,633 | ||||||||||||||
Leasehold improvements | 10,429 | 10,109 | ||||||||||||||
Machinery and equipment | 135,956 | 132,549 | ||||||||||||||
Enterprise resource planning systems | 26,890 | — | ||||||||||||||
Furniture and office equipment | 33,780 | 34,263 | ||||||||||||||
Construction in progress | 1,325 | 18,155 | ||||||||||||||
Property, plant and equipment, gross | 236,059 | 222,731 | ||||||||||||||
Less accumulated depreciation and amortization | (120,588 | ) | (112,610 | ) | ||||||||||||
Property, plant and equipment, net | $ | 115,471 | $ | 110,121 | ||||||||||||
Summary of impairment charges | The categorization and classification of these charges are summarized below: | |||||||||||||||
(in thousands) | Machinery and equipment | Furniture and office equipment | Leasehold improvements | Total | ||||||||||||
Cost of sales | $ | 2,799 | $ | 10 | $ | 1 | $ | 2,810 | ||||||||
Product development and engineering | 3,477 | 33 | — | 3,510 | ||||||||||||
Selling, general and administrative expenses | 5 | — | 1 | 6 | ||||||||||||
Total impairment charge | $ | 6,281 | $ | 43 | $ | 2 | $ | 6,326 | ||||||||
Details of impairment of long-lived assets held and used by asset, prior period | The categorization and classification of these charges are summarized below: | |||||||||||||||
(in thousands) | Machinery and equipment | Furniture and office equipment | Leasehold improvements | Total | ||||||||||||
Cost of sales | $ | 4,019 | $ | 5 | $ | 317 | $ | 4,341 | ||||||||
Product development and engineering | 2,173 | 12 | 2 | 2,187 | ||||||||||||
Selling, general and administrative expenses | 23 | 69 | 222 | 314 | ||||||||||||
Total impairment charge | $ | 6,215 | $ | 86 | $ | 541 | $ | 6,842 | ||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Jan. 25, 2015 | ||||||||||||||||||||||||||
Schedule of Goodwill and Intangible Assets [Line Items] | ||||||||||||||||||||||||||
Goodwill balances | Changes in the carrying amount of goodwill by applicable reporting unit were as follows: | |||||||||||||||||||||||||
(in thousands) | Signal Integrity | Gennum (1) | Advanced Communications (1) | Wireless, Sensing & Timing | Total | |||||||||||||||||||||
Balance as of January 27, 2013 | $ | — | $ | 261,891 | $ | 116,686 | $ | 15,007 | $ | 393,584 | ||||||||||||||||
Impairments | — | — | (116,686 | ) | — | (116,686 | ) | |||||||||||||||||||
Transfers | 261,891 | (261,891 | ) | — | — | — | ||||||||||||||||||||
Balance as of January 26, 2014 | $ | 261,891 | $ | — | $ | — | $ | 15,007 | $ | 276,898 | ||||||||||||||||
Acquisitions | — | — | — | 3,421 | 3,421 | |||||||||||||||||||||
Balance as of January 26, 2015 | $ | 261,891 | $ | — | $ | — | $ | 18,428 | $ | 280,319 | ||||||||||||||||
-1 | In the fourth quarter of fiscal year 2014, the Gennum and former Advanced Communications reporting units were integrated to form the new reporting unit Signal Integrity and Timing, which in the first quarter of fiscal 2015 became the new reporting unit Signal Integrity with Timing becoming a part of Wireless, Sensing and Timing. There were no transfers of goodwill associated with the fiscal 2015 realignment. | |||||||||||||||||||||||||
Schedule of discounted cash flow inputs | ||||||||||||||||||||||||||
November 30, 2013 | November 30, 2014 | |||||||||||||||||||||||||
Discount rate | 11.0% - 14.0% | 12.0% - 15.0% | ||||||||||||||||||||||||
Perpetual growth rate | 3.00% | 3.00% | ||||||||||||||||||||||||
Tax rate | 13.4% - 18.0% | 10.1% - 28.1% | ||||||||||||||||||||||||
Risk-free rate | 3.50% | 2.60% | ||||||||||||||||||||||||
Peer company beta | 1.0 - 1.5 | 1.0 - 1.8 | ||||||||||||||||||||||||
Schedule of finite-lived intangible assets | The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions and technology licenses purchased, which continue to be amortized: | |||||||||||||||||||||||||
January 25, 2015 | January 26, 2014 | |||||||||||||||||||||||||
(in thousands) | Estimated | Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||
Useful Life | Carrying | Amortization | Amount | Carrying | Amortization | Amount | ||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||
Core technologies | 6-8 years | $ | 134,155 | $ | (53,286 | ) | $ | 80,869 | $ | 146,925 | $ | (35,357 | ) | $ | 111,568 | |||||||||||
Customer relationships | 7-10 years | 28,030 | (11,480 | ) | 16,550 | 28,630 | (7,505 | ) | 21,125 | |||||||||||||||||
Technology licenses (1) | 2 years | 263 | (169 | ) | 94 | 3,842 | (367 | ) | 3,475 | |||||||||||||||||
Other intangibles assets | 1-5 years | 6,600 | (6,513 | ) | 87 | 6,600 | (5,824 | ) | 776 | |||||||||||||||||
Total finite-lived intangible assets | $ | 169,048 | $ | (71,448 | ) | $ | 97,600 | $ | 185,997 | $ | (49,053 | ) | $ | 136,944 | ||||||||||||
-1 | Technology licenses relate to licensing agreements entered into by the Company that are used in research and development activities and have alternative future uses. Amortization expense related to technology licenses is reported as “Product development and engineering” in the consolidated statements of operations. | |||||||||||||||||||||||||
Schedule of finite-lived intangible assets impairment loss | Impairment charges for these items, which resulted in a new basis for the affected intangible assets, are included in the consolidated statements of operations as follows: | |||||||||||||||||||||||||
(in thousands) | 25-Jan-15 | 26-Jan-14 | 27-Jan-13 | |||||||||||||||||||||||
Product development and engineering | $ | 3,119 | $ | 2,354 | $ | — | ||||||||||||||||||||
Intangible asset impairments | 11,636 | 29,938 | 700 | |||||||||||||||||||||||
Impairment of finite-lived intangible assets | $ | 14,755 | $ | 32,292 | $ | 700 | ||||||||||||||||||||
Additions to finite-lived intangible assets | The following table sets forth the Company’s additions to finite-lived intangible assets resulting from purchases, additions from acquisitions, and transfers from IPR&D: | |||||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | |||||||||||||||||||||||||
Gross carrying value at January 27, 2013 | $ | 228,618 | ||||||||||||||||||||||||
Purchased intangible assets | 833 | |||||||||||||||||||||||||
Reduction of finite-lived intangible assets | (501 | ) | ||||||||||||||||||||||||
Transfers from in-process research and development | 25,100 | |||||||||||||||||||||||||
Decrease in gross carrying value due to impairment of finite-lived intangible assets | (68,053 | ) | ||||||||||||||||||||||||
Gross carrying value at January 26, 2014 | 185,997 | |||||||||||||||||||||||||
Purchased intangible assets | 1,100 | |||||||||||||||||||||||||
Acquired intangible assets | 1,430 | |||||||||||||||||||||||||
Decrease in gross carrying value due to impairment of finite-lived intangible assets | (19,479 | ) | ||||||||||||||||||||||||
Gross carrying value at January 25, 2015 | $ | 169,048 | ||||||||||||||||||||||||
Future amortization expense for intangible assets | The estimated annual amount of future amortization expense for finite-lived intangible assets is expected to be as follows: | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
To be recognized in: | Core Technologies | Customer relationships | Technology licenses | Other Intangibles | Total | |||||||||||||||||||||
Fiscal year 2016 | $ | 18,641 | $ | 4,000 | $ | 50 | $ | 87 | $ | 22,778 | ||||||||||||||||
Fiscal year 2017 | 18,641 | 4,000 | 44 | — | 22,685 | |||||||||||||||||||||
Fiscal year 2018 | 18,641 | 4,000 | — | — | 22,641 | |||||||||||||||||||||
Fiscal year 2019 | 15,229 | 4,000 | — | — | 19,229 | |||||||||||||||||||||
Fiscal year 2020 | 7,398 | 550 | — | — | 7,948 | |||||||||||||||||||||
Thereafter | 2,319 | — | — | — | 2,319 | |||||||||||||||||||||
Total expected amortization expense | $ | 80,869 | $ | 16,550 | $ | 94 | $ | 87 | $ | 97,600 | ||||||||||||||||
Schedule of indefinite-lived intangible assets | The following table sets forth the Company’s indefinite-lived intangible assets from additions to IPR&D, acquisitions, impairments, and transfers to core technologies: | |||||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | |||||||||||||||||||||||||
Net carrying value at January 27, 2013 | $ | 31,700 | ||||||||||||||||||||||||
In-process research and development through acquisitions | — | |||||||||||||||||||||||||
In-process research and development impairment | (2,600 | ) | ||||||||||||||||||||||||
Transfers to core technologies | (25,100 | ) | ||||||||||||||||||||||||
Net carrying value at January 26, 2014 | $ | 4,000 | ||||||||||||||||||||||||
In-process research and development through acquisitions | — | |||||||||||||||||||||||||
In-process research and development impairment | — | |||||||||||||||||||||||||
Transfers to core technologies | — | |||||||||||||||||||||||||
Net carrying value at January 25, 2015 | $ | 4,000 | ||||||||||||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Jan. 25, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Summary of accrued liabilities | The following is a summary of accrued liabilities for fiscal years 2015 and 2014: | |||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||
Compensation | $ | 20,642 | $ | 17,875 | ||||
Equity awards accounted for as a liability | 718 | 917 | ||||||
Deferred compensation | 527 | 1,478 | ||||||
Accrued sales and marketing expenses | 5,028 | 2,227 | ||||||
Accrued professional fees | 4,019 | 3,990 | ||||||
Accrued interest expense | 93 | 287 | ||||||
Income taxes payable | 6,153 | 3,675 | ||||||
Accrued taxes | 32 | 49 | ||||||
Accrued restructuring | 282 | 2,632 | ||||||
Other | 12,260 | 11,018 | ||||||
Accrued liabilities | $ | 49,754 | $ | 44,148 | ||||
Credit_Facilities_Tables
Credit Facilities (Tables) | 12 Months Ended | |||
Jan. 25, 2015 | ||||
Debt Instruments [Abstract] | ||||
Schedule of maturities of current and long-term debt | Scheduled maturities of current and long-term Term Loans are as follows: | |||
(in thousands) | ||||
Fiscal Year Ending: | ||||
2016 | $ | 18,750 | ||
2017 | 18,750 | |||
2018 | 24,375 | |||
2019 | 34,000 | |||
2020 | — | |||
Total debt | $ | 95,875 | ||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||
Jan. 25, 2015 | |||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||
Schedule of allocation of stock-based compensation | The following table shows total stock-based compensation expense included in the consolidated statements of operations for fiscal years 2015, 2014 and 2013: | ||||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||||||||||||
Cost of sales | $ | 1,621 | $ | 1,664 | $ | 1,218 | |||||||||||||||||
Selling, general and administrative | 17,387 | 12,071 | 14,965 | ||||||||||||||||||||
Product development and engineering | 10,621 | 10,854 | 8,345 | ||||||||||||||||||||
Stock-based compensation, pre-tax | $ | 29,629 | $ | 24,589 | $ | 24,528 | |||||||||||||||||
Net change in stock-based compensation capitalized out of (into) inventory | $ | 111 | $ | 36 | $ | (33 | ) | ||||||||||||||||
Schedule of fair value assumptions | The following table summarizes the assumptions used in the Black-Scholes model to determine the fair value of options granted in fiscal years 2015, 2014 and 2013: | ||||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||||
January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||||||||||||||
Expected lives, in years | 3.0 - 4.4 | 4.1 - 4.7 | 4.4 - 4.6 | ||||||||||||||||||||
Estimated volatility | 33% - 40% | 30% - 35% | 38% - 41% | ||||||||||||||||||||
Dividend yield | — | — | — | ||||||||||||||||||||
Risk-free interest rate | 0.74% - 1.47% | 0.65% - 1.6% | 0.66% - 0.73% | ||||||||||||||||||||
Weighted average fair value on grant date | $7.18 | $8.92 | $9.52 | ||||||||||||||||||||
Schedule of summary of the activity for stock option awards | A summary of the activity for stock option awards for fiscal years 2015, 2014 and 2013 is presented below: | ||||||||||||||||||||||
(in thousands, except for per share amounts) | Number | Weighted | Aggregate | Aggregate | Number of | Weighted | |||||||||||||||||
of | Average | Intrinsic | Unrecognized | Shares | Average | ||||||||||||||||||
Shares | Exercise | Value (1) | Compensation | Exercisable | Contractual | ||||||||||||||||||
Price | Term (years) | ||||||||||||||||||||||
(per share) | |||||||||||||||||||||||
Balance at January 29, 2012 | 3,690 | $ | 16.94 | $ | 44,435 | $ | 4,699 | 2,767 | |||||||||||||||
Options granted | 258 | 28.21 | |||||||||||||||||||||
Options exercised | (1,254 | ) | 15.7 | 14,508 | |||||||||||||||||||
Options cancelled/forfeited | (115 | ) | 25.3 | ||||||||||||||||||||
Balance at January 27, 2013 | 2,579 | 18.29 | 29,789 | 3,817 | 1,937 | ||||||||||||||||||
Options granted | 376 | 30.62 | |||||||||||||||||||||
Options exercised | (970 | ) | 16.61 | 16,052 | |||||||||||||||||||
Options cancelled/forfeited | (50 | ) | 26.1 | ||||||||||||||||||||
Balance at January 26, 2014 | 1,935 | 21.33 | 7,722 | 4,354 | 1,275 | ||||||||||||||||||
Options granted | 426 | 24.87 | |||||||||||||||||||||
Options exercised | (554 | ) | 16.04 | 5,446 | |||||||||||||||||||
Options cancelled/forfeited | (44 | ) | 26.69 | ||||||||||||||||||||
Balance at January 25, 2015 | 1,763 | $ | 23.7 | $ | 7,722 | $ | 4,688 | 986 | |||||||||||||||
Exercisable at January 26, 2015 | 986 | $ | 21.03 | $ | 6,582 | 2.3 | |||||||||||||||||
Vested and expected to vest after January 26, 2015 | 1,670 | $ | 23.6 | $ | 7,498 | 3.3 | |||||||||||||||||
-1 | Represents the difference between the exercise price and the value of the Company’s stock at the time of exercise, for exercised grants. For outstanding awards, represents the difference between the exercise price and the value of the Company’s stock at fiscal year end. | ||||||||||||||||||||||
Schedule of stock option exercise price range | The following table summarizes information about stock options outstanding at January 25, 2015: | ||||||||||||||||||||||
(number of shares in thousands) | Number | Weighted Average | Weighted Average | ||||||||||||||||||||
of | Exercise Price | Contractual Term | |||||||||||||||||||||
Shares | (per share) | (years) | |||||||||||||||||||||
Price Range Analysis - Outstanding | |||||||||||||||||||||||
$1.15 - $4.53 | 4 | $ | 4.04 | 2.6 | |||||||||||||||||||
$7.97 - $13.76 | 24 | 10.57 | 1 | ||||||||||||||||||||
$15.54 - $23.33 | 697 | 18.42 | 1.8 | ||||||||||||||||||||
$23.56 - $35.17 | 1,037 | 27.63 | 4.6 | ||||||||||||||||||||
Total outstanding | 1,762 | $ | 23.7 | 3.5 | |||||||||||||||||||
Price Range Analysis - Exercisable | |||||||||||||||||||||||
$1.15 - $4.53 | 4 | $ | 4.04 | 2.6 | |||||||||||||||||||
$7.97 - $13.76 | 24 | 10.57 | 1 | ||||||||||||||||||||
$15.54 - $23.33 | 679 | 18.31 | 1.8 | ||||||||||||||||||||
$23.56 - $35.17 | 279 | 28.8 | 3.7 | ||||||||||||||||||||
Total exercisable | 986 | $ | 21.03 | 2.3 | |||||||||||||||||||
Schedule of unvested stock option awards | The following table summarizes information regarding unvested stock option awards at January 25, 2015: | ||||||||||||||||||||||
(in thousands, except for per share amounts) | Number | Weighted Average | Weighted Average | Weighted Average | Total Fair Value | ||||||||||||||||||
of | Exercise Price | Grant Date | Remaining Expense | ||||||||||||||||||||
Shares | (per share) | Fair Value | Period (years) | ||||||||||||||||||||
(per share) | |||||||||||||||||||||||
Balance at January 29, 2012 | 924 | $ | 18.47 | $ | 6.99 | 1.8 | $ | 6,452 | |||||||||||||||
Options granted | 258 | 28.21 | 9.52 | 2,457 | |||||||||||||||||||
Options vested | (484 | ) | 16.42 | 6.49 | 3,144 | ||||||||||||||||||
Options forfeited | (56 | ) | 21.69 | 7.74 | 432 | ||||||||||||||||||
Balance at January 27, 2013 | 642 | 23.66 | 8.31 | 1.9 | 5,333 | ||||||||||||||||||
Options granted | 376 | 30.62 | 8.92 | 3,355 | |||||||||||||||||||
Options vested | (310 | ) | 21.58 | 7.77 | 2,406 | ||||||||||||||||||
Options forfeited | (48 | ) | 26.16 | 8.53 | 422 | ||||||||||||||||||
Balance at January 26, 2014 | 660 | 28.39 | 8.88 | 2.3 | 5,856 | ||||||||||||||||||
Options granted | 426 | 24.87 | 7.18 | 3,058 | |||||||||||||||||||
Options vested | (275 | ) | 27.03 | 8.77 | 2,414 | ||||||||||||||||||
Options forfeited | (35 | ) | 26.32 | 8.02 | 283 | ||||||||||||||||||
Balance at January 25, 2015 | 776 | $ | 27.09 | $ | 8.01 | 2.4 | $ | 6,217 | |||||||||||||||
Schedule of summary of the activity for restricted stock awards | The following table summarizes the activity for restricted stock awards for fiscal year 2013 (there was no activity in fiscal years 2015 and 2014): | ||||||||||||||||||||||
(in thousands, except for per share amounts) | Number of | Weighted Average | Aggregate | Aggregate | Weighted Average | ||||||||||||||||||
Shares | Grant Date | Intrinsic | Unrecognized | Period Over | |||||||||||||||||||
Fair Value | Value (1) | Compensation | Which Expected | ||||||||||||||||||||
(per share) | to be Recognized | ||||||||||||||||||||||
(in years) | |||||||||||||||||||||||
Balance at January 29, 2012 | 32 | $ | 14.57 | $ | 81 | 0.1 | |||||||||||||||||
Restricted stocks granted | — | ||||||||||||||||||||||
Restricted stocks vested | (32 | ) | 14.57 | $ | 902 | ||||||||||||||||||
Restricted stocks cancelled | — | ||||||||||||||||||||||
Balance at January 27, 2013 | — | $ | — | $ | — | 0 | |||||||||||||||||
-1 | Represents the value of Semtech stock on the date that the restricted stock vested. | ||||||||||||||||||||||
Schedule of summary of the activity for performance unit awards | The following table summarizes the activity for performance units during fiscal years 2015, 2014 and 2013: | ||||||||||||||||||||||
Subject to | Subject to | Weighted | Aggregate | Period Over | |||||||||||||||||||
Share Settlement | Cash Settlement | Average | Which Expected | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||||
(in thousands, except for per share amounts) | Total | Units | Units | Recorded | Fair Value | Unrecognized | to be Recognized | ||||||||||||||||
Units | Liability | (per share) | Compensation | (in years) | |||||||||||||||||||
Balance at January 29, 2012 | 360 | 180 | 180 | $ | 6,034 | $ | 16.65 | $ | 4,829 | 1 | |||||||||||||
Performance units granted | 144 | 77 | 67 | 29.3 | |||||||||||||||||||
Performance units vested | (144 | ) | (72 | ) | (72 | ) | (4,172 | ) | 11.92 | ||||||||||||||
Performance units cancelled/forfeited | (7 | ) | (4 | ) | (3 | ) | 29.35 | ||||||||||||||||
Change in liability | 2,560 | ||||||||||||||||||||||
Balance at January 27, 2013 | 353 | 181 | 172 | 4,422 | 23.5 | 4,754 | 1.1 | ||||||||||||||||
Performance units granted | 186 | 93 | 93 | 30.82 | |||||||||||||||||||
Performance units vested | (114 | ) | (57 | ) | (57 | ) | — | 16.68 | |||||||||||||||
Performance units cancelled/forfeited | (49 | ) | (25 | ) | (24 | ) | 28.82 | ||||||||||||||||
Change in liability | (3,117 | ) | |||||||||||||||||||||
Balance at January 26, 2014 | 376 | 192 | 184 | 1,305 | 28.5 | 3,893 | 1.3 | ||||||||||||||||
Performance units granted | 256 | 128 | 128 | 24.74 | |||||||||||||||||||
Performance units vested | (93 | ) | (52 | ) | (41 | ) | — | 23.83 | |||||||||||||||
Performance units cancelled/forfeited | (113 | ) | (57 | ) | (56 | ) | 28.76 | ||||||||||||||||
Change in liability | 586 | ||||||||||||||||||||||
Balance at January 25, 2015 | 426 | 211 | 215 | $ | 1,891 | $ | 27.17 | $ | 6,164 | 1.6 | |||||||||||||
Schedule fair value assumptions - market performance units | The following tables summarize the assumptions used in the Monte Carlo simulation model to determine the fair value of restricted stock units granted in fiscal year 2015 for both Tranche 1 and Tranche 2. | ||||||||||||||||||||||
Tranche 1: | |||||||||||||||||||||||
For the fiscal year ended January 25, 2015 | |||||||||||||||||||||||
Expected life, in years | 1.6 | ||||||||||||||||||||||
Estimated volatility | 34 | % | |||||||||||||||||||||
Dividend yield | — | % | |||||||||||||||||||||
Risk-free interest rate | 1.5 | % | |||||||||||||||||||||
Weighted average fair value on grant date | $ | 17.26 | |||||||||||||||||||||
Tranche 2: | |||||||||||||||||||||||
For the fiscal year ended January 25, 2015 | |||||||||||||||||||||||
Expected life, in years | 2.1 | ||||||||||||||||||||||
Estimated volatility | 34 | % | |||||||||||||||||||||
Dividend yield | — | % | |||||||||||||||||||||
Risk-free interest rate | 1.5 | % | |||||||||||||||||||||
Weighted average fair value on grant date | $ | 14.88 | |||||||||||||||||||||
Schedule of summary of activity for market performance units | The following table summarizes the activity for the market performance restricted stock units for the fiscal year ended January 25, 2015: | ||||||||||||||||||||||
(in thousands, except for per share amounts) | Total Units | Weighted Average | Aggregate | Weighted Average | |||||||||||||||||||
Grant Date | Unrecognized | Period Over | |||||||||||||||||||||
Fair Value | Compensation | Which Expected | |||||||||||||||||||||
(per unit) | to be Recognized | ||||||||||||||||||||||
(in years) | |||||||||||||||||||||||
Balance at January 26, 2014 | — | $ | — | $ | — | 0 | |||||||||||||||||
Market performance units granted | 220 | 15.59 | |||||||||||||||||||||
Market performance units vested | — | — | |||||||||||||||||||||
Market performance units cancelled/forfeited | — | — | |||||||||||||||||||||
Balance at January 25, 2015 | 220 | $ | 15.59 | $ | — | 1.2 | |||||||||||||||||
Schedule of summary of the activity for employee stock unit awards | The following table summarizes the stock unit award activity for fiscal years 2015, 2014 and 2013: | ||||||||||||||||||||||
(in thousands, except per share amount) | Number of | Weighted Average | Aggregate | Aggregate | Weighted Average | ||||||||||||||||||
Units | Grant Date | Intrinsic | Unrecognized | Period Over | |||||||||||||||||||
Fair Value | Value (1) | Compensation | Which Expected | ||||||||||||||||||||
(per unit) | to be Recognized | ||||||||||||||||||||||
(in years) | |||||||||||||||||||||||
Balance at January 29, 2012 | 1,982 | $ | 19.06 | $ | 31,472 | 2.4 | |||||||||||||||||
Stock units granted | 1,517 | 26.73 | |||||||||||||||||||||
Stock units vested | (699 | ) | 18.2 | $ | 18,438 | ||||||||||||||||||
Stock units forfeited | (242 | ) | 23.65 | ||||||||||||||||||||
Balance at January 27, 2013 | 2,558 | 23.41 | 49,374 | 2.5 | |||||||||||||||||||
Stock units granted | 891 | 30.95 | |||||||||||||||||||||
Stock units vested | (1,026 | ) | 21.34 | 31,861 | |||||||||||||||||||
Stock units forfeited | (228 | ) | 25.81 | ||||||||||||||||||||
Balance at January 26, 2014 | 2,195 | 27.18 | 49,563 | 2.5 | |||||||||||||||||||
Stock units granted | 929 | 23.9 | |||||||||||||||||||||
Stock units vested | (752 | ) | 25.55 | $ | 18,237 | ||||||||||||||||||
Stock units forfeited | (234 | ) | 26.29 | ||||||||||||||||||||
Balance at January 25, 2015 | 2,138 | $ | 26.43 | $ | 44,506 | 2.4 | |||||||||||||||||
-1 | Reflects the value of Semtech stock on the date that the stock unit vested. | ||||||||||||||||||||||
Schedule of summary of the activity for non-employee directors stock unit awards | The following table summarizes the activity for stock unit awards for fiscal years 2015, 2014 and 2013: | ||||||||||||||||||||||
(in thousands, except per share amount) | Number of | Recorded | Weighted Average | Aggregate | Period Over | ||||||||||||||||||
Units | Liability | Grant Date | Unrecognized | Which Expected | |||||||||||||||||||
Fair Value | Compensation | to be Recognized | |||||||||||||||||||||
(per unit) | (in years) | ||||||||||||||||||||||
Balance at January 29, 2012 | 18 | $ | 3,873 | $ | 27.6 | $ | 216 | 0.4 | |||||||||||||||
Stock units granted | 20 | 24.46 | |||||||||||||||||||||
Stock units vested | (18 | ) | 27.6 | ||||||||||||||||||||
Stock units forfeited | — | ||||||||||||||||||||||
Change in liability | 684 | ||||||||||||||||||||||
Balance at January 27, 2013 | 20 | 4,557 | 24.46 | 253 | 0.4 | ||||||||||||||||||
Stock units granted | 18 | 35.17 | |||||||||||||||||||||
Stock units vested | (20 | ) | 24.46 | ||||||||||||||||||||
Stock units forfeited | — | ||||||||||||||||||||||
Change in liability | (576 | ) | |||||||||||||||||||||
Balance at January 26, 2014 | 18 | 3,981 | 35.17 | 177 | 0.4 | ||||||||||||||||||
Stock units granted | 24 | 26.59 | |||||||||||||||||||||
Stock units vested | (18 | ) | 35.17 | ||||||||||||||||||||
Stock units forfeited | — | ||||||||||||||||||||||
Change in liability | 1,233 | ||||||||||||||||||||||
Balance at January 25, 2015 | 24 | $ | 5,214 | $ | 26.59 | $ | 275 | 0.4 | |||||||||||||||
Interest_Income_and_Other_Expe1
Interest Income and Other (Expense) Income, Net (Tables) | 12 Months Ended | |||||||||||
Jan. 25, 2015 | ||||||||||||
Interest Income and Other Expense Disclosure [Abstract] | ||||||||||||
Schedule of interest income and other expense, net | Interest and other expense, net, consist of the following: | |||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||
Interest income | 43 | 342 | 404 | |||||||||
Non-recoverable VAT tax | (323 | ) | (598 | ) | (217 | ) | ||||||
Foreign currency transaction gain (loss) | 702 | (648 | ) | (354 | ) | |||||||
Miscellaneous expense | (257 | ) | (486 | ) | (810 | ) | ||||||
Interest income and other income (expense), net | $ | 165 | $ | (1,390 | ) | $ | (977 | ) | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jan. 25, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of components of income tax expense | The provision (benefit) for taxes consists of the following: | |||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||
Current tax provision | ||||||||||||
Federal | $ | 749 | $ | 3,769 | $ | 7,100 | ||||||
State | — | 554 | 784 | |||||||||
Foreign | 7,810 | 14,962 | 5,745 | |||||||||
Subtotal | 8,559 | 19,285 | 13,629 | |||||||||
Deferred tax provision (benefit) | ||||||||||||
Federal | 508 | 23,938 | (15,812 | ) | ||||||||
State | (100 | ) | (1,293 | ) | (148 | ) | ||||||
Foreign | (419 | ) | (5,945 | ) | (39,359 | ) | ||||||
Subtotal | (11 | ) | 16,700 | (55,319 | ) | |||||||
Provision (benefit) for taxes | $ | 8,548 | $ | 35,985 | $ | (41,690 | ) | |||||
Schedule of income tax reconciliation | The provision (benefit) for taxes reconciles to the amount computed by applying the statutory federal rate to income before taxes as follows: | |||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||
Federal income tax at statutory rate | $ | 12,775 | $ | (44,968 | ) | $ | 86 | |||||
State income taxes, net of federal benefit | (100 | ) | (1,260 | ) | (2,472 | ) | ||||||
Foreign taxes at rates less than federal rates | (11,960 | ) | (8,378 | ) | (9,655 | ) | ||||||
Tax credits generated | (5,302 | ) | (5,523 | ) | (5,328 | ) | ||||||
Changes in valuation allowance | 14,284 | 52,942 | 2,703 | |||||||||
Goodwill impairment | — | 40,840 | — | |||||||||
Changes in uncertain tax positions | (5,167 | ) | 893 | 132 | ||||||||
Deemed dividends | 2,513 | 726 | 1,101 | |||||||||
Equity compensation | 2,200 | 1,173 | 793 | |||||||||
Permanent differences | (93 | ) | 2,895 | 1,571 | ||||||||
Sales exclusion - foreign jurisdiction | — | — | (10,689 | ) | ||||||||
Dividend and U.S. tax on foreign earnings | — | — | (23,443 | ) | ||||||||
Revaluation of deferred tax assets and liabilities | (432 | ) | (12 | ) | 3,510 | |||||||
Other | (170 | ) | (3,343 | ) | 1 | |||||||
Provision (benefit) for taxes | $ | 8,548 | $ | 35,985 | $ | (41,690 | ) | |||||
Schedule of deferred tax assets and liabilities | The deferred tax assets and deferred tax liabilities are classified in the consolidated balance sheets as follows: | |||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||
Deferred tax assets | ||||||||||||
Current | $ | 2,478 | $ | 2,946 | ||||||||
Non-current | 106 | 348 | ||||||||||
Subtotal | 2,584 | 3,294 | ||||||||||
Deferred tax liabilities | ||||||||||||
Current | (1,444 | ) | (930 | ) | ||||||||
Non-current | (2,477 | ) | (3,626 | ) | ||||||||
Subtotal | (3,921 | ) | (4,556 | ) | ||||||||
Net deferred tax liabilities | $ | (1,337 | ) | $ | (1,262 | ) | ||||||
Schedule of components of deferred tax assets and deferred tax liabilities | The components of the net deferred income tax assets and liabilities at January 25, 2015 and January 26, 2014 are as follows: | |||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||
Current deferred tax asset: | ||||||||||||
Deferred revenue | $ | 3,052 | $ | 2,773 | ||||||||
Inventory reserve | 3,156 | 3,032 | ||||||||||
Payroll and related accruals | 2,306 | 2,133 | ||||||||||
Bad debt reserve | 927 | 416 | ||||||||||
Accrued service fees | 608 | 591 | ||||||||||
Other deferred assets | 1,191 | 1,562 | ||||||||||
Valuation allowance | (8,637 | ) | (7,321 | ) | ||||||||
Total current deferred tax asset | 2,603 | 3,186 | ||||||||||
Non-current deferred tax asset: | ||||||||||||
Research and development charges | 1,323 | 2,109 | ||||||||||
Research credit carryforward | 40,819 | 39,350 | ||||||||||
NOL carryforward | 29,144 | 31,165 | ||||||||||
Payroll and related accruals | 7,148 | 6,268 | ||||||||||
Stock-based compensation | 6,176 | 5,732 | ||||||||||
Other deferred assets | 5,054 | 3,567 | ||||||||||
Valuation allowance | (66,899 | ) | (53,931 | ) | ||||||||
Total non-current deferred tax asset | 22,765 | 34,260 | ||||||||||
Current deferred tax liabilities: | ||||||||||||
Inventory reserve - foreign | (826 | ) | (430 | ) | ||||||||
Bad debt reserve - foreign | (256 | ) | (223 | ) | ||||||||
Other current deferred tax liabilities | (373 | ) | (517 | ) | ||||||||
Total current deferred tax liabilities | (1,455 | ) | (1,170 | ) | ||||||||
Non-current deferred tax liabilities: | ||||||||||||
Purchase accounting deferred tax liabilities | (20,917 | ) | (32,466 | ) | ||||||||
Depreciation and amortization | (2,956 | ) | (3,695 | ) | ||||||||
Other non-current deferred tax liabilities | (1,377 | ) | (1,377 | ) | ||||||||
Total non-current deferred tax liabilities | (25,250 | ) | (37,538 | ) | ||||||||
Net deferred tax liabilities | $ | (1,337 | ) | $ | (1,262 | ) | ||||||
Schedule of gross unrecognized tax benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (before federal impact of state items) is as follows: | |||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||
Beginning balance | $ | 14,414 | $ | 13,144 | ||||||||
Additions based on tax positions related to the current year | 526 | 1,484 | ||||||||||
Reductions for tax positions of prior years, net | (3,982 | ) | (214 | ) | ||||||||
Reductions for settlements with tax authorities, net | (1,070 | ) | — | |||||||||
Ending balance | $ | 9,888 | $ | 14,414 | ||||||||
Schedule of liability for uncertain tax positions | The liability for UTP is reflected on the consolidated balance sheets as follows: | |||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||
Deferred tax assets - non-current | $ | 7,522 | $ | 12,095 | ||||||||
Accrued liabilities | — | — | ||||||||||
Other long-term liabilities | 252 | 252 | ||||||||||
Total accrued taxes | $ | 7,774 | $ | 12,347 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Jan. 25, 2015 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Schedule aggregate minimum operating lease payments | The aggregate minimum annual lease payments under leases in effect on January 25, 2015 are as follows: | |||||||||||
Minimum Annual Lease Payments | ||||||||||||
(in thousands) | ||||||||||||
Fiscal Year Ending: | ||||||||||||
2016 | $ | 6,812 | ||||||||||
2017 | 4,895 | |||||||||||
2018 | 4,363 | |||||||||||
2019 | 3,501 | |||||||||||
2020 | 2,531 | |||||||||||
Thereafter | 5,614 | |||||||||||
Total minimum lease commitments | $ | 27,716 | ||||||||||
Schedule of purchase commitments | The following table shows the Company’s open capital commitments, other open purchase commitments, and other vendor commitments for the purchase of plant, equipment, raw material, supplies and services: | |||||||||||
(in thousands) | Less than 1 year | 1-3 years | Total | |||||||||
Open capital purchase commitments | $ | 4,044 | $ | — | $ | 4,044 | ||||||
Other open purchase commitments | 28,064 | 3,446 | 31,510 | |||||||||
Other vendor commitments | 1,000 | — | 1,000 | |||||||||
Total purchase commitments | $ | 33,108 | $ | 3,446 | $ | 36,554 | ||||||
Schedule of compensation expense and forfeitures under deferred compensation plan | The following table shows the compensation expense and forfeitures under this plan for fiscal years 2015, 2014 and 2013: | |||||||||||
Fiscal Year Ended | ||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||
Forfeitures | $ | (112 | ) | $ | (180 | ) | $ | — | ||||
Compensation expense | 2,449 | 2,644 | 1,839 | |||||||||
Compensation expense, net of forfeitures | $ | 2,337 | $ | 2,464 | $ | 1,839 | ||||||
Schedule of liability for deferred compensation | The Company’s liability for the deferred compensation plan is presented below: | |||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | ||||||||||
Accrued liabilities | $ | 527 | $ | 1,478 | ||||||||
Other long-term liabilities | 19,241 | 15,565 | ||||||||||
Total deferred compensation liabilities under this plan | $ | 19,768 | $ | 17,043 | ||||||||
Concentration_of_Risk_Tables
Concentration of Risk (Tables) | 12 Months Ended | ||||||||
Jan. 25, 2015 | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
Schedule of significant customers accounting for at least 10% of net sales during period | Each of the following significant customers accounted for at least 10% of net sales for at least one of the periods indicated: | ||||||||
Fiscal Year Ended | |||||||||
(percentage of net sales) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||
Samsung Electronics Co., Ltd.(and affiliates) | 11 | % | 12 | % | 12 | % | |||
Huawei Technologies Co., Ltd (and affiliates) | 5 | % | 9 | % | 10 | % | |||
Schedule of significant customers having an outstanding receivable balance that represents at least 10% of total net receivables during period | The following table shows the list of customers that have an outstanding receivable balance that represents at least 10% of total net receivables for at least one of the periods indicated: | ||||||||
Balance as of | |||||||||
(percentage of net accounts receivable) | January 25, 2015 | January 26, 2014 | |||||||
Samsung Electronics Co., Ltd.(and affiliates) | 12 | % | 13 | % |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Jan. 25, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Net sales by segment | The table below provides net sales activity by segment: | ||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||||||||||
Semiconductor Products Group | $ | 555,399 | $ | 577,312 | $ | 559,729 | |||||||||||||||
All others | 2,486 | 17,665 | 19,098 | ||||||||||||||||||
Total net sales | $ | 557,885 | $ | 594,977 | $ | 578,827 | |||||||||||||||
Income by segment and reconciliation to consolidated | Income by segment and reconciliation to consolidated income before taxes: | ||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(in thousands) | 25-Jan-15 | 26-Jan-14 | January 27, 2013 | ||||||||||||||||||
Semiconductor Products Group operating income | $ | 136,823 | $ | 141,569 | $ | 133,854 | |||||||||||||||
All others operating loss | (10,558 | ) | (2,744 | ) | 4,995 | ||||||||||||||||
Operating Income by segment | 126,265 | 138,825 | 138,849 | ||||||||||||||||||
Items to reconcile segment operating income to consolidated income (loss) before taxes | |||||||||||||||||||||
Intangible amortization and impairments | 31,449 | 190,529 | 10,248 | ||||||||||||||||||
Stock-based compensation expense | 29,629 | 24,589 | 24,528 | ||||||||||||||||||
Write-off of deferred financing costs | — | 8,773 | — | ||||||||||||||||||
Inventory write-down | — | 2,408 | 39,406 | ||||||||||||||||||
Restructuring charges | 1,285 | 3,086 | — | ||||||||||||||||||
Other non-segment related expenses | 3,310 | 1,522 | 29,382 | ||||||||||||||||||
Amortization of fair value adjustments related to acquired PP&E | 18,335 | 16,835 | 19,696 | ||||||||||||||||||
Interest expense, net | 5,927 | 18,174 | 14,363 | ||||||||||||||||||
Non-operating (income) expense, net | (165 | ) | 1,390 | 977 | |||||||||||||||||
Income (loss) before taxes | $ | 36,495 | $ | (128,481 | ) | $ | 249 | ||||||||||||||
Net sales by product line | The table below provides net sales activity by product line on a comparative basis for all periods. In December 2013, the Company announced that it was combining its Gennum and former Advanced Communication product groups. The combined net sales activity for these groups is reflected in the Signal Integrity product group. | ||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(in thousands, except percentages) | 25-Jan-15 | 26-Jan-14 | 27-Jan-13 | ||||||||||||||||||
Protection, Power and High-Reliability | $ | 255,743 | 47 | % | $ | 256,808 | 43 | % | $ | 265,293 | 46 | % | |||||||||
Signal Integrity | 219,024 | 39 | % | 254,589 | 43 | % | 228,882 | 40 | % | ||||||||||||
Wireless, Sensing and Timing | 80,632 | 14 | % | 65,947 | 11 | % | 65,598 | 11 | % | ||||||||||||
Systems Innovation | 2,486 | — | % | 17,633 | 3 | % | 19,054 | 3 | % | ||||||||||||
Total net sales | $ | 557,885 | 100 | % | $ | 594,977 | 100 | % | $ | 578,827 | 100 | % | |||||||||
Net sales by geographic region | Net sales activity by geographic region is as follows: | ||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(in thousands, except percentages) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||||||||||
Asia-Pacific | $ | 412,514 | 74 | % | $ | 432,097 | 73 | % | $ | 405,179 | 70 | % | |||||||||
North America | 85,139 | 15 | % | 94,574 | 16 | % | 98,401 | 17 | % | ||||||||||||
Europe | 60,232 | 11 | % | 68,306 | 11 | % | 75,247 | 13 | % | ||||||||||||
Total net sales | $ | 557,885 | 100 | % | $ | 594,977 | 100 | % | $ | 578,827 | 100 | % | |||||||||
Sales activity to countries representing greater than 10% of total sales | The Company attributes sales to a country based on the ship-to address. The table below summarizes sales activity to countries that represented greater than 10% of total net sales for at least one of the periods indicated: | ||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(percentage of total sales) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||||||||||
China (including Hong Kong) | 38 | % | 34 | % | 35 | % | |||||||||||||||
United States | 12 | % | 16 | % | 17 | % | |||||||||||||||
Japan | 11 | % | 11 | % | 10 | % | |||||||||||||||
South Korea | 9 | % | 11 | % | 7 | % | |||||||||||||||
Total net sales | 70 | % | 72 | % | 69 | % | |||||||||||||||
Pre-tax (loss) income from continuing operations by region | The Company’s regional (loss) income from continuing operations before income taxes is as follows: | ||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | January 27, 2013 | ||||||||||||||||||
Domestic | $ | (33,540 | ) | $ | (158,780 | ) | $ | (19,867 | ) | ||||||||||||
Foreign | 70,035 | 30,299 | 20,116 | ||||||||||||||||||
Total | $ | 36,495 | $ | (128,481 | ) | $ | 249 | ||||||||||||||
Long-lived assets by location | Long-lived assets, which consist of property, plant and equipment, net of accumulated depreciation and classified by location are summarized as follows: | ||||||||||||||||||||
(in thousands) | January 25, 2015 | January 26, 2014 | |||||||||||||||||||
United States | $ | 63,449 | $ | 55,303 | |||||||||||||||||
Rest of North America | 25,139 | 28,577 | |||||||||||||||||||
Europe | 9,119 | 14,900 | |||||||||||||||||||
Asia and all others | 17,764 | 11,341 | |||||||||||||||||||
Total | $ | 115,471 | $ | 110,121 | |||||||||||||||||
Reorganization_Costs_Tables
Reorganization Costs (Tables) | 12 Months Ended | |||
Jan. 25, 2015 | ||||
Reorganization Costs [Abstract] | ||||
Schedule of summary of reorganization costs | The reorganization charges below were included in “Selling, general and administrative” on the consolidated statements of operations for the respective periods. | |||
(in thousands) | Severance and related costs | |||
Balance at January 27, 2013 | $ | 1,330 | ||
Cash payments/other | (849 | ) | ||
Balance at January 26, 2014 | 481 | |||
Cash payments/other | (237 | ) | ||
Balance at January 25, 2015 | $ | 244 | ||
Restructuring_Costs_Tables
Restructuring Costs (Tables) | 12 Months Ended | |||||||||||
Jan. 25, 2015 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Schedule of restructuring reserve activity | Activity under the restructuring plan is summarized in the following table: | |||||||||||
(in thousands) | One-time employee termination benefits | Contract commitments | Total | |||||||||
Balance at January 27, 2013 | $ | — | $ | — | $ | — | ||||||
Charges | 1,841 | 1,245 | 3,086 | |||||||||
Cash payments | (454 | ) | — | (454 | ) | |||||||
Balance at January 26, 2014 | 1,387 | 1,245 | 2,632 | |||||||||
Charges | 662 | 623 | 1,285 | |||||||||
Cash payments | (1,767 | ) | (1,753 | ) | (3,520 | ) | ||||||
Reclassifications | — | (115 | ) | (115 | ) | |||||||
Balance at January 25, 2015 | $ | 282 | $ | — | $ | 282 | ||||||
Stock_Repurchase_Program_And_S1
Stock Repurchase Program And Shares Withheld From Vested Restricted Shares (Tables) | 12 Months Ended | ||||||||||||||||||||
Jan. 25, 2015 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Schedule of summary of stock repurchase activities and shares withheld from vested restricted shares during period | The following table summarizes the stock repurchase activities and shares withheld from vested restricted shares during the periods indicated: | ||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||||||
January 25, 2015 | January 26, 2014 | January 27, 2013 | |||||||||||||||||||
(in thousands, except number of shares) | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||
Shares repurchased under the 2011 program | 1,578,869 | $ | 40,906 | 1,034,491 | $ | 30,000 | 263,443 | $ | 7,500 | ||||||||||||
Shares withheld from vested restricted shares | — | — | — | — | 9,696 | 269 | |||||||||||||||
Total treasury shares acquired | 1,578,869 | $ | 40,906 | 1,034,491 | $ | 30,000 | 273,139 | $ | 7,769 | ||||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Jan. 25, 2015 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | The following tables set forth the Company’s unaudited consolidated statements of operations data for each of the eight quarterly periods ended January 25, 2015, as well as that data expressed as a percentage of the Company’s net sales for the quarters presented. The sum of quarterly per share amounts may differ from year to date amounts due to rounding. | |||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||||||||||||||||||
Fiscal Year 2015 | Fiscal Year 2014 | |||||||||||||||||||||||||||||||
Quarters Ended | Quarters Ended | |||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | April 27, | July 27, | October 26, | January 25, | April 28, | July 28, | October 27, | January 26, | ||||||||||||||||||||||||
2014 | 2014 | 2014 | 2015 | 2013 | 2013 | 2013 | 2014 | |||||||||||||||||||||||||
Net sales | $ | 132,859 | $ | 145,742 | $ | 148,890 | $ | 130,394 | $ | 162,407 | $ | 165,010 | $ | 141,026 | $ | 126,534 | ||||||||||||||||
Gross profit | 78,084 | 88,221 | 89,326 | 73,161 | 97,287 | 100,708 | 83,411 | 53,805 | ||||||||||||||||||||||||
Operating (loss) income | 11,149 | 22,057 | 22,810 | (13,759 | ) | 20,078 | 24,457 | 13,265 | (166,717 | ) | ||||||||||||||||||||||
Net income (loss) | $ | 7,867 | $ | 17,898 | $ | 17,623 | $ | (15,441 | ) | $ | 14,777 | $ | 19,112 | $ | 12,453 | $ | (210,808 | ) | ||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.27 | $ | 0.26 | $ | (0.23 | ) | $ | 0.22 | $ | 0.28 | $ | 0.18 | $ | (3.12 | ) | ||||||||||||||
Diluted | $ | 0.12 | $ | 0.26 | $ | 0.26 | $ | (0.23 | ) | $ | 0.22 | $ | 0.28 | $ | 0.18 | $ | (3.12 | ) | ||||||||||||||
Weighted average number of shares used in computing earnings per share: | ||||||||||||||||||||||||||||||||
Basic | 67,300 | 67,208 | 67,162 | 66,763 | 66,956 | 67,614 | 67,792 | 67,523 | ||||||||||||||||||||||||
Diluted | 67,970 | 67,850 | 67,654 | 66,763 | 68,579 | 69,090 | 68,871 | 67,523 | ||||||||||||||||||||||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Fiscal Year) (Details) | 12 Months Ended | ||
Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | |
Fiscal Year [Line Items] | |||
Number of weeks in reporting period | 52 | 52 | 52 |
Minimum | |||
Fiscal Year [Line Items] | |||
Number of weeks in reporting period | 52 | ||
Maximum | |||
Fiscal Year [Line Items] | |||
Number of weeks in reporting period | 53 |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Segment Information) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 27, 2014 | Jul. 27, 2014 | Jan. 25, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of operating segments | 4 | 4 | |
Number of operating segments that aggregate into one reportable segment | 3 | 3 | |
Number of reportable segments | 1 | 1 |
Significant_Accounting_Policie3
Significant Accounting Policies - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Oct. 28, 2012 | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | |
Other Intangible Assets and Long-lived Assets [Abstract] | ||||
Percent of realizable undiscounted cash flows used to determine useful life of acquired finite-lived intangible assets, minimum | 90.00% | |||
Licensing Revenue [Abstract] | ||||
License revenue from a single licensing arrangement | $7,500,000 | |||
Sales and Marketing [Abstract] | ||||
Advertising Expense | 52,000 | 118,000 | 119,000 | |
Product Development and Engineering [Abstract] | ||||
Recoveries from nonrecurring engineering services | $29,300,000 | $17,600,000 | $12,500,000 | |
Maximum | ||||
Investment maturity period | 90 days |
Significant_Accounting_Policie4
Significant Accounting Policies - Estimated Useful Lives of Property, Plant, and Equipment (Details) | 12 Months Ended |
Jan. 25, 2015 | |
Building and leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Building and leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 39 years |
Enterprise resource planning systems | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 13 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Transportation vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Computers and computer software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Significant_Accounting_Policie5
Significant Accounting Policies - Deferred Revenue (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $5,848 | $7,267 |
Deferred Revenues [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | 6,237 | 7,179 |
Deferred Cost of Revenues [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | -1,562 | -1,698 |
Deferred Gross Profit [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | 4,675 | 5,481 |
Deferred Product Design and Engineering Recoveries [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue | $1,173 | $1,786 |
Significant_Accounting_Policie6
Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Available for sale investments | |||
Accumulated other comprehensive income balance at beginning of period - Available for Sale Investments | $0 | $5 | $37 |
Other comprehensive income (loss) before reclassifications, net of tax - Available for Sale Investments | 0 | -5 | -31 |
Amounts reclassified, net of tax - Available for Sale Investments | 0 | 0 | -1 |
Net current period other comprehensive income (loss) - Available for Sale Investments | 0 | -5 | -32 |
Accumulated other comprehensive income balance at end of period - Available for Sale Investments | 0 | 5 | |
Interest rate hedge | |||
Accumulated other comprehensive income balance at beginning of period - Interest Rate Hedge | -448 | -353 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax - Interest Rate Hedge | -243 | -145 | -353 |
Amounts reclassified, net of tax - Interest Rate Hedge | 153 | 50 | 0 |
Net current period other comprehensive income (loss) - Interest Rate Hedge | -90 | -95 | -353 |
Accumulated other comprehensive income balance at end of period - Interest Rate Hedge | -538 | -448 | -353 |
Cumulative translation adjustments | |||
Accumulated other comprehensive income balance at beginning of period - Cumulative Translation Adjustments | 701 | 701 | 498 |
Other comprehensive income (loss) before reclassifications, net of tax - Translation Currency Adjustment | 0 | 0 | 203 |
Amounts reclassified, net of tax - Currency Translation Adjustment | 0 | 0 | 0 |
Net current period comprehensive income (loss) - Translation Currency Adjustment | 0 | 0 | 203 |
Accumulated other comprehensive income balance at end of period - Cumulative Translation Adjustments | 701 | 701 | 701 |
Total comprehensive income (loss) | |||
Total accumulated other comprehensive income balance at beginning of period - Total | 253 | 353 | 535 |
Other comprehensive income (loss), before reclassifications, net of tax - Total | -243 | -150 | -181 |
Amounts reclassified, net of tax - Total | 153 | 50 | -1 |
Net current period comprehensive income (loss) - Total | -90 | -100 | -182 |
Total accumulated other comprehensive income balance at end of period - Total | $163 | $253 | $353 |
Significant_Accounting_Policie7
Significant Accounting Policies - Computation of Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 25, 2015 | Oct. 26, 2014 | Jul. 27, 2014 | Apr. 27, 2014 | Jan. 26, 2014 | Oct. 27, 2013 | Jul. 28, 2013 | Apr. 28, 2013 | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Net income (loss) | ($15,441) | $17,623 | $17,898 | $7,867 | ($210,808) | $12,453 | $19,112 | $14,777 | $27,947 | ($164,466) | $41,939 |
Weighted average common shares outstanding - basic | 66,763 | 67,162 | 67,208 | 67,300 | 67,523 | 67,792 | 67,614 | 66,956 | 67,108 | 67,471 | 65,809 |
Dilutive effect of employee equity incentive plans | 577 | 0 | 1,663 | ||||||||
Weighted average common shares outstanding - diluted | 66,763 | 67,654 | 67,850 | 67,970 | 67,523 | 68,871 | 69,090 | 68,579 | 67,685 | 67,471 | 67,472 |
Basic earnings per common share (in dollars per share) | ($0.23) | $0.26 | $0.27 | $0.12 | ($3.12) | $0.18 | $0.28 | $0.22 | $0.42 | ($2.44) | $0.64 |
Diluted earnings per common share (in dollars per share) | ($0.23) | $0.26 | $0.26 | $0.12 | ($3.12) | $0.18 | $0.28 | $0.22 | $0.41 | ($2.44) | $0.62 |
Anti-dilutive shares not included in the above calculations | 1,714 | 1,245 | 783 |
Acquisitions_Narrative_Details
Acquisitions - Narrative (Details) | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 13, 2015 | Mar. 20, 2012 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 | Oct. 28, 2012 | 27-May-12 | Mar. 20, 2012 | Mar. 07, 2012 | Mar. 07, 2012 | Jan. 13, 2015 | Mar. 20, 2012 | Jan. 27, 2013 | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
USD ($) | USD ($) | USD ($) | EnVerv | Gennum | Gennum | Gennum | Gennum | Gennum | Gennum | Gennum | Cycleo | Cycleo | Developed technology | Developed technology | Selling, general and administrative expenses | Wireless, Sensing and Timing | Wireless, Sensing and Timing | Wireless, Sensing and Timing | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | USD ($) | USD ($) | EnVerv | Gennum | Gennum | USD ($) | USD ($) | USD ($) | ||||
USD ($) | USD ($) | USD ($) | |||||||||||||||||
Total acquisition consideration | $4,900,000 | $506,500,000 | $5,000,000 | ||||||||||||||||
Total acquisition consideration allocated to core technologies | 129,863,000 | 1,400,000 | 95,100,000 | ||||||||||||||||
Goodwill | 280,319,000 | 276,898,000 | 393,584,000 | 3,400,000 | 261,891,000 | 261,900,000 | 261,900,000 | 262,800,000 | 18,428,000 | 15,007,000 | 15,007,000 | ||||||||
Percentage of outstanding shares acquired | 100.00% | ||||||||||||||||||
Price paid per share | 13.55 | ||||||||||||||||||
Long-term debt | 347,000,000 | ||||||||||||||||||
Secured term loans, maturity term | 5 years | ||||||||||||||||||
Original issue discount on debt | 3,000,000 | ||||||||||||||||||
Post-acquisition compensation expense | 9,600,000 | ||||||||||||||||||
Goodwill decrease, purchase accounting adjustments | -900,000 | ||||||||||||||||||
Transaction and integration expenses | 1,700,000 | 24,800,000 | |||||||||||||||||
Settled pre-acquisition contingencies related to legal matters | 4,200,000 | ||||||||||||||||||
Deferred compensation potential cash payment | $16,000,000 |
Acquisitions_Schedule_of_Purch
Acquisitions - Schedule of Purchase Price Allocation (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Oct. 28, 2012 | Mar. 20, 2012 |
In Thousands, unless otherwise specified | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $280,319 | $276,898 | $393,584 | ||
Gennum | |||||
Business Acquisition [Line Items] | |||||
Cash | 19,664 | ||||
Accounts receivable, less allowances | 14,032 | ||||
Inventories | 62,941 | ||||
Prepaid expenses | 3,832 | ||||
Income taxes receivable | 1,467 | ||||
Deferred tax assets - current | 8,590 | ||||
Other current assets | 7,804 | ||||
Property, plant and equipment | 25,702 | ||||
Amortizable intangible assets | 129,863 | ||||
In-process research and development | 29,100 | ||||
Goodwill | 261,900 | 262,800 | 261,891 | ||
Deferred tax assets - non-current | 31,235 | ||||
Other non-current assets | 8 | ||||
Deferred tax liabilities | -47,077 | ||||
Accounts payable | -18,232 | ||||
Accrued liabilities | -24,274 | ||||
Total acquisition consideration | 506,546 | ||||
Gennum | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets | 95,100 | ||||
Gennum | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets | 28,000 | ||||
Gennum | Other intangible assets | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets | $6,763 |
Acquisitions_Narrative_Pro_for
Acquisitions - Narrative (Pro forma Information) (Details) (USD $) | 12 Months Ended | |
Jan. 27, 2013 | Mar. 20, 2012 | |
contingency | ||
Business Acquisition [Line Items] | ||
Debt instrument, face amount | $350,000,000 | |
Gennum | ||
Business Acquisition [Line Items] | ||
Pro forma adjustment, decrease in cost of goods sold | -39,400,000 | |
Pro forma adjustment, number of pre-acquisition contingencies settled | 2 | |
Pro forma adjustment, increase in operating expense due to settlement | 4,200,000 | |
Pro forma adjustment, decrease in amortization expense | -1,600,000 | |
Pro forma adjustment, decrease in income tax benefit | -23,400,000 | |
Pro forma adjustment, increase in interest expense | $1,700,000 |
Acquisitions_Net_revenue_and_n
Acquisitions - Net revenue and net loss attributable to acquired entities (Details) (Gennum, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 27, 2013 |
Gennum | |
Business Acquisition [Line Items] | |
Net revenue - Gennum | $129,558 |
Net loss - Gennum | ($36,546) |
Acquisitions_Unaudited_Consoli
Acquisitions - Unaudited Consolidated Pro Forma Information (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 27, 2013 |
Business Combinations [Abstract] | |
Revenue | $603,067 |
Net income | $56,980 |
Investments_Narrative_Details
Investments - Narrative (Details) (USD $) | 12 Months Ended | ||
Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | |
Investment [Line Items] | |||
Investment in privately traded companies, cash consideration | $7,148,000 | $2,500,000 | $2,500,000 |
Minimum | |||
Investment [Line Items] | |||
Investment maturity period | 3 months | ||
Maximum | |||
Investment [Line Items] | |||
Investment maturity period | 90 days | ||
Temporary investments | Minimum | |||
Investment [Line Items] | |||
Investment maturity period | 3 months | ||
Temporary investments | Maximum | |||
Investment [Line Items] | |||
Investment maturity period | 12 months | ||
Long-term investments | Minimum | |||
Investment [Line Items] | |||
Investment maturity period | 12 months | ||
Other assets | |||
Investment [Line Items] | |||
Total equity investment in privately traded companies | $12,100,000 | $5,000,000 |
Investments_Summary_of_Investm
Investments - Summary of Investments (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Market Value | $23,271 | $18,258 |
Adjusted Cost | 23,271 | 18,257 |
Gross Unrealized Gain | 0 | 1 |
Agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Market Value | 23,271 | 18,258 |
Adjusted Cost | 23,271 | 18,257 |
Gross Unrealized Gain | 0 | 1 |
Bank time deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Market Value | 0 | 0 |
Adjusted Cost | 0 | 0 |
Gross Unrealized Gain | $0 | $0 |
Investments_Schedule_of_Invest
Investments - Schedule of Investments, Classified by Maturity Period (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ||
Available-for-sale investments, Market Value - Within 1 year | $23,271 | $14,584 |
Available-for-sale investments, Adjusted Cost - Within 1 year | 23,271 | 14,584 |
Available-for-sale investments, Market Value - After 1 year through 5 years | 0 | 3,674 |
Available-for-sale investments, Adjusted Cost - After 1 year through 5 years | $0 | $3,673 |
Investments_Summary_of_Unreali
Investments - Summary of Unrealized Gains (Losses) on Investments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Investments [Abstract] | |||
Unrealized loss, net of tax | $0 | ($5) | ($32) |
Decrease to deferred tax liability | $0 | ($2) | ($10) |
Investments_Schedule_of_Intere
Investments - Schedule of Interest Income Generated from Investments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Investments [Abstract] | |||
Interest income | $43 | $342 | $404 |
Fair_Value_Measurements_Narrat
Fair Value Measurements - Narrative (Details) (Level 2, USD $) | Jan. 25, 2015 |
In Millions, unless otherwise specified | |
New credit facilities, Term Loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of debt | $95.90 |
Revolving Commitments | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of debt | $158 |
Fair_Value_Measurements_Financ
Fair Value Measurements - Financial Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | $23,271 | $18,258 |
Recurring | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | 23,271 | 17,258 |
Interest rate cap | 33 | 316 |
Total financial assets | 23,304 | 17,574 |
Recurring | Level 1 | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | 23,271 | 13,584 |
Interest rate cap | 0 | 0 |
Total financial assets | 23,271 | 13,584 |
Recurring | Level 2 | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 3,674 |
Interest rate cap | 33 | 316 |
Total financial assets | 33 | 3,990 |
Recurring | Level 3 | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Interest rate cap | 0 | 0 |
Total financial assets | 0 | 0 |
Recurring | Agency securities | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | 23,271 | 17,258 |
Recurring | Agency securities | Level 1 | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | 23,271 | 13,584 |
Recurring | Agency securities | Level 2 | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 3,674 |
Recurring | Agency securities | Level 3 | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Bank time deposits | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Bank time deposits | Level 1 | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Bank time deposits | Level 2 | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Bank time deposits | Level 3 | ||
Fair Value, Assets Measured On A Recurring Basis [Line Items] | ||
Available-for-sale securities | $0 | $0 |
Fair_Value_Measurements_Financ1
Fair Value Measurements - Financial Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis by Balance Sheet Line (Details) (Recurring, USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $23,271 | $13,584 |
Long-term investments | 0 | 3,674 |
Other assets | 33 | 316 |
Total financial assets | 23,304 | 17,574 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 23,271 | 13,584 |
Long-term investments | 0 | 0 |
Other assets | 0 | 0 |
Total financial assets | 23,271 | 13,584 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Long-term investments | 0 | 3,674 |
Other assets | 33 | 316 |
Total financial assets | 33 | 3,990 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Long-term investments | 0 | 0 |
Other assets | 0 | 0 |
Total financial assets | $0 | $0 |
Inventories_Narrative_Details
Inventories Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 |
Inventory [Line Items] | ||||
Inventory write-downs | $0 | $15,047 | $0 | |
Cost of sales | ||||
Inventory [Line Items] | ||||
Inventory write-downs | $15,047 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $1,624 | $1,971 |
Work in progress | 36,759 | 45,508 |
Finished goods | 35,285 | 12,788 |
Inventories | $73,668 | $60,267 |
Property_Plant_and_Equipment_N
Property, Plant and Equipment - Narrative (Details) (USD $) | 12 Months Ended | ||
Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Net book value of equipment and machinery | $115,471,000 | $110,121,000 | |
Depreciation | 21,100,000 | 21,800,000 | 17,900,000 |
Machinery and equipment | Foundry in China | |||
Property, Plant and Equipment [Line Items] | |||
Net book value of equipment and machinery | $7,600,000 | $8,100,000 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Summary of Property and Equipment (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $236,059 | $222,731 |
Less accumulated depreciation and amortization | -120,588 | -112,610 |
Property, plant and equipment, net | 115,471 | 110,121 |
Property | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,022 | 9,022 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,657 | 18,633 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,429 | 10,109 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 135,956 | 132,549 |
Enterprise resource planning systems | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 26,890 | 0 |
Furniture and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 33,780 | 34,263 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $1,325 | $18,155 |
Property_Plant_and_Equipment_S1
Property, Plant and Equipment - Summary of Impairment Charges (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | $6,326 | $6,842 |
Machinery and equipment | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 6,281 | 6,215 |
Furniture and office equipment | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 43 | 86 |
Leasehold improvements | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 2 | 541 |
Cost of sales | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 2,810 | 4,341 |
Cost of sales | Machinery and equipment | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 2,799 | 4,019 |
Cost of sales | Furniture and office equipment | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 10 | 5 |
Cost of sales | Leasehold improvements | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 1 | 317 |
Product development and engineering | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 3,510 | 2,187 |
Product development and engineering | Machinery and equipment | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 3,477 | 2,173 |
Product development and engineering | Furniture and office equipment | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 33 | 12 |
Product development and engineering | Leasehold improvements | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 0 | 2 |
Selling, general and administrative expenses | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 6 | 314 |
Selling, general and administrative expenses | Machinery and equipment | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 5 | 23 |
Selling, general and administrative expenses | Furniture and office equipment | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | 0 | 69 |
Selling, general and administrative expenses | Leasehold improvements | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total impairment charge | $1 | $222 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 28, 2013 | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill impairment | $0 | $116,686 | $0 | |
Impairment of indefinite-lived intangible assets | $2,600 | |||
In-process research and development | Income approach | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Discount rate used to value IPR&D | 12.00% | 12.00% | ||
Market participant tax rate used to value IPR&D | 28.10% | 19.00% |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Goodwill Balances (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | |
Goodwill [Roll Forward] | ||||
Beginning balance | $276,898 | $393,584 | ||
Impairments | 0 | -116,686 | 0 | |
Transfers | 0 | |||
Acquisitions | 3,421 | |||
Ending balance | 280,319 | 276,898 | 393,584 | |
Signal Integrity and Timing | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 261,891 | 0 | ||
Impairments | 0 | |||
Transfers | 261,891 | |||
Acquisitions | 0 | |||
Ending balance | 261,891 | 261,891 | ||
Gennum | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 0 | 261,891 | [1] | |
Impairments | 0 | |||
Transfers | -261,891 | [1] | ||
Acquisitions | 0 | |||
Ending balance | 0 | 0 | ||
Advanced Communications | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 0 | 116,686 | [1] | |
Impairments | -116,686 | [1] | ||
Transfers | 0 | |||
Acquisitions | 0 | |||
Ending balance | 0 | 0 | ||
Wireless, Sensing and Timing | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 15,007 | |||
Impairments | 0 | |||
Transfers | 0 | |||
Ending balance | $18,428 | $15,007 | ||
[1] | In the fourth quarter of fiscal year 2014, the Gennum and former Advanced Communications reporting units were integrated to form the new reporting unit Signal Integrity and Timing, which in the first quarter of fiscal 2015 became the new reporting unit Signal Integrity with Timing becoming a part of Wireless, Sensing and Timing. There were no transfers of goodwill associated with the fiscal 2015 realignment. |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Estimated Fair Values of Reporting Units, Discounted Cash Flow Inputs (Details) (Goodwill, Income approach) | 1 Months Ended | |
Nov. 30, 2014 | Nov. 30, 2013 | |
Discounted Cash Flow Inputs [Line Items] | ||
Perpetual growth rate | 3.00% | 3.00% |
Risk-free rate | 2.60% | 3.50% |
Minimum | ||
Discounted Cash Flow Inputs [Line Items] | ||
Discount rate | 12.00% | 11.00% |
Tax rate | 10.10% | 13.40% |
Peer company beta | 1 | 1 |
Maximum | ||
Discounted Cash Flow Inputs [Line Items] | ||
Discount rate | 15.00% | 14.00% |
Tax rate | 28.10% | 18.00% |
Peer company beta | 1.8 | 1.5 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 169,048 | $185,997 | $228,618 | ||
Accumulated Amortization | -71,448 | -49,053 | |||
Net Carrying Amount | 97,600 | 136,944 | |||
Core technologies | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 134,155 | 146,925 | |||
Accumulated Amortization | -53,286 | -35,357 | |||
Net Carrying Amount | 80,869 | 111,568 | |||
Core technologies | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 6 years | ||||
Core technologies | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 8 years | ||||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 28,030 | 28,630 | |||
Accumulated Amortization | -11,480 | -7,505 | |||
Net Carrying Amount | 16,550 | 21,125 | |||
Customer relationships | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 7 years | ||||
Customer relationships | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 10 years | ||||
Technology licenses | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 2 years | ||||
Gross Carrying Amount | 263 | [1] | 3,842 | [1] | |
Accumulated Amortization | -169 | [1] | -367 | [1] | |
Net Carrying Amount | 94 | [1] | 3,475 | [1] | |
Other intangible assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 6,600 | 6,600 | |||
Accumulated Amortization | -6,513 | -5,824 | |||
Net Carrying Amount | 87 | $776 | |||
Other intangible assets | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 1 year | ||||
Other intangible assets | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 5 years | ||||
[1] | Technology licenses relate to licensing agreements entered into by the Company that are used in research and development activities and have alternative future uses. Amortization expense related to technology licenses is reported as “Product development and engineering†in the consolidated statements of operations. |
Goodwill_and_Intangible_Assets6
Goodwill and Intangible Assets - Schedule of Finite-lived Intangible Asset Impairment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Schedule of Finite-Lived Intangible Asset Impairment Losses [Line Items] | |||
Impairment of finite-lived intangible assets | $14,755 | $32,292 | $700 |
Product development and engineering | |||
Schedule of Finite-Lived Intangible Asset Impairment Losses [Line Items] | |||
Impairment of finite-lived intangible assets | 3,119 | 2,354 | 0 |
Intangible asset impairments | |||
Schedule of Finite-Lived Intangible Asset Impairment Losses [Line Items] | |||
Impairment of finite-lived intangible assets | $11,636 | $29,938 | $700 |
Goodwill_and_Intangible_Assets7
Goodwill and Intangible Assets - Schedule of Additions to Finite-Lived Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning gross carrying amount | $185,997 | $228,618 |
Purchased intangible assets | 1,100 | 833 |
Acquired intangible assets | 1,430 | |
Reduction of finite-lived intangible assets | -501 | |
Transfers from in-process research and development | 25,100 | |
Decrease in gross carrying value of due to impairment of finite-lived intangible a | -19,479 | -68,053 |
Ending gross carrying value | $169,048 | $185,997 |
Goodwill_and_Intangible_Assets8
Goodwill and Intangible Assets - Future Amortization Expense for Intangible Assets (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 | ||
In Thousands, unless otherwise specified | ||||
Fiscal year 2016 | $22,778 | |||
Fiscal year 2017 | 22,685 | |||
Fiscal year 2018 | 22,641 | |||
Fiscal year 2019 | 19,229 | |||
Fiscal year 2020 | 7,948 | |||
Thereafter | 2,319 | |||
Net Carrying Amount | 97,600 | 136,944 | ||
Core technologies | ||||
Fiscal year 2016 | 18,641 | |||
Fiscal year 2017 | 18,641 | |||
Fiscal year 2018 | 18,641 | |||
Fiscal year 2019 | 15,229 | |||
Fiscal year 2020 | 7,398 | |||
Thereafter | 2,319 | |||
Net Carrying Amount | 80,869 | 111,568 | ||
Customer relationships | ||||
Fiscal year 2016 | 4,000 | |||
Fiscal year 2017 | 4,000 | |||
Fiscal year 2018 | 4,000 | |||
Fiscal year 2019 | 4,000 | |||
Fiscal year 2020 | 550 | |||
Thereafter | 0 | |||
Net Carrying Amount | 16,550 | 21,125 | ||
Technology licenses | ||||
Fiscal year 2016 | 50 | |||
Fiscal year 2017 | 44 | |||
Fiscal year 2018 | 0 | |||
Fiscal year 2019 | 0 | |||
Fiscal year 2020 | 0 | |||
Thereafter | 0 | |||
Net Carrying Amount | 94 | [1] | 3,475 | [1] |
Other intangible assets | ||||
Fiscal year 2016 | 87 | |||
Fiscal year 2017 | 0 | |||
Fiscal year 2018 | 0 | |||
Fiscal year 2019 | 0 | |||
Fiscal year 2020 | 0 | |||
Thereafter | 0 | |||
Net Carrying Amount | $87 | $776 | ||
[1] | Technology licenses relate to licensing agreements entered into by the Company that are used in research and development activities and have alternative future uses. Amortization expense related to technology licenses is reported as “Product development and engineering†in the consolidated statements of operations. |
Goodwill_and_Intangible_Assets9
Goodwill and Intangible Assets - Schedule of Indefinite-lived Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jul. 28, 2013 | Jan. 25, 2015 | Jan. 26, 2014 |
Indefinite-lived Intangible Assets [Roll Forward] | |||
In-process research and development impairment | $2,600 | ||
In-process research and development | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Beginning balance, gross carrying amount, indefinite-lived intangible assets | 4,000 | 31,700 | |
In-process research and development through acquisitions | 0 | 0 | |
In-process research and development impairment | 0 | -2,600 | |
Transfers to core technologies | 0 | -25,100 | |
Ending balance, gross carrying amount, indefinite-lived intangible assets | $4,000 | $4,000 |
Accrued_Liabilities_Summary_of
Accrued Liabilities (Summary of Accrued Liabilities) (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
In Thousands, unless otherwise specified | |||
Payables and Accruals [Abstract] | |||
Compensation | $20,642 | $17,875 | |
Equity awards accounted for as a liability | 718 | 917 | |
Deferred compensation | 527 | 1,478 | |
Accrued sales and marketing expenses | 5,028 | 2,227 | |
Accrued professional fees | 4,019 | 3,990 | |
Accrued interest expense | 93 | 287 | |
Income taxes payable | 6,153 | 3,675 | |
Accrued taxes | 32 | 49 | |
Accrued restructuring | 282 | 2,632 | 0 |
Other | 12,260 | 11,018 | |
Total accrued liabilities, current | $49,754 | $44,148 |
Credit_Facilities_Narrative_De
Credit Facilities - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | 6 Months Ended | ||||
Jan. 25, 2015 | 2-May-13 | Jul. 27, 2014 | Mar. 20, 2012 | Jun. 03, 2013 | Jul. 15, 2014 | Oct. 27, 2013 | |
Prior credit facilities, aggregate principal amount of term loans | $350,000,000 | ||||||
New credit facilities, maximum borrowing capacity | 400,000,000 | ||||||
New credit facilities, amount outstanding | 326,600,000 | ||||||
Prior credit facilities, repayment of outstanding obligations | 327,500,000 | ||||||
Minimum | |||||||
Interest Coverage Ratio | 3.5 | ||||||
Maximum | |||||||
Total Leverage Ratio | 3 | ||||||
Base Rate | |||||||
Description of variable rate basis | the highest of (a) the prime rate, (b) ½ of 1% above the federal funds effective rate or (c) one-month LIBOR (determined with respect to deposits in U.S. Dollars) plus 1%. | ||||||
Base Rate | Minimum | |||||||
Margin on variable rate | 0.25% | ||||||
Base Rate | Maximum | |||||||
Margin on variable rate | 1.25% | ||||||
LIBOR | |||||||
Basis spread on variable rate | 1.00% | ||||||
LIBOR | Minimum | |||||||
Margin on variable rate | 1.25% | ||||||
LIBOR | Maximum | |||||||
Margin on variable rate | 2.25% | ||||||
Federal Funds | |||||||
Basis spread on variable rate | 1.00% | ||||||
CDOR | |||||||
Description of variable rate basis | the sum of: (a) the rate determined by Administrative Agent with reference to the arithmetic average of the discount rate quotations of all institutions listed for CAD Dollar-denominated bankers’ acceptances displayed and identified on the “Reuters Screen CDOR Page†and (b) 0.10% per annum. | ||||||
Basis spread on variable rate | 0.10% | ||||||
CDOR | Minimum | |||||||
Margin on variable rate | 1.25% | ||||||
CDOR | Maximum | |||||||
Margin on variable rate | 2.25% | ||||||
Prior credit facilities, Term A Loans | |||||||
Prior credit facilities, aggregate principal amount of term loans | 100,000,000 | ||||||
Initial carrying amounts | -99,500,000 | ||||||
Original issue discount on debt | 500,000 | ||||||
Prior credit facilities, Term B Loans | |||||||
Prior credit facilities, aggregate principal amount of term loans | 250,000,000 | ||||||
Initial carrying amounts | -247,500,000 | ||||||
Original issue discount on debt | 2,500,000 | ||||||
New credit facilities, Term Loan | |||||||
New credit facilities, maximum borrowing capacity | 150,000,000 | ||||||
New credit facilities, amount outstanding | 149,300,000 | ||||||
New credit facilities, interest rate at period end | 1.92% | ||||||
New credit facilities, early term loan prepayment | 26,000,000 | ||||||
New credit facilities, Revolving Credit Facility | |||||||
New credit facilities, maximum borrowing capacity | 250,000,000 | ||||||
New credit facilities, amount outstanding | 158,000,000 | 177,300,000 | |||||
New credit facilities, interest rate at period end | 1.92% | ||||||
New credit facilities, early term loan prepayment | 25,000,000 | ||||||
New credit facilities, Revolving Credit Facility | Minimum | |||||||
New credit facilities, unused capacity, commitment fee percentage | 0.20% | ||||||
New credit facilities, Revolving Credit Facility | Maximum | |||||||
New credit facilities, unused capacity, commitment fee percentage | 0.45% | ||||||
New credit facilities | |||||||
New credit facilities, debt discount | 1,400,000 | ||||||
New credit facilities, debt discount expensed | 800,000 | ||||||
New credit facilities, debt discount capitalized | 600,000 | ||||||
New credit facilities, deferred financing costs | 2,200,000 | ||||||
New credit facilities, deferred financing costs expensed | 1,000,000 | ||||||
Deferred finance costs capitalized | 1,200,000 | ||||||
New credit facilities, contractual term | 5 years | ||||||
Prior credit facilities | |||||||
Deferred finance costs capitalized | 1,700,000 | ||||||
Prior credit facilities, gains (losses) on modification of debt | -7,100,000 | ||||||
New credit facilities, Letter of Credit | |||||||
New credit facilities, maximum borrowing capacity | 40,000,000 | ||||||
New credit facilities, amount outstanding | 0 | ||||||
New credit facilities, Swingline Loans | |||||||
New credit facilities, maximum borrowing capacity | 25,000,000 | ||||||
New credit facilities, amount outstanding | 0 | ||||||
New credit facilities, Revolving Loans and Non US Dollars LC | |||||||
New credit facilities, maximum borrowing capacity | 40,000,000 | ||||||
New credit facilities, amount outstanding | 0 | ||||||
Additional Term Loan or Increase in Revolver | Maximum | |||||||
New credit facilities, maximum borrowing capacity | 100,000,000 | ||||||
United States of America, Dollars | |||||||
Description of variable rate basis | (1) the Base Rate (as defined below) plus a margin ranging from 0.25% to 1.25% depending upon Semtech’s consolidated leverage ratio or (2) LIBOR (determined with respect to deposits in U.S. Dollars) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. | ||||||
Alternative Currencies, Except Canadian | |||||||
Description of variable rate basis | a rate per annum equal to LIBOR (determined with respect to deposits in the applicable Alternative Currency) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. | ||||||
Canada, Dollars | |||||||
Description of variable rate basis | a rate per annum equal to the CDOR Rate for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. |
Credit_Facilities_Scheduled_Ma
Credit Facilities - Scheduled Maturities of Long-term Debt (Details) (USD $) | Jan. 25, 2015 |
In Thousands, unless otherwise specified | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2016 | $18,750 |
2017 | 18,750 |
2018 | 24,375 |
2019 | 34,000 |
2020 | 0 |
Total debt | $95,875 |
Interest_Rate_Derivative_Agree1
Interest Rate Derivative Agreement - Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Jun. 20, 2012 | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | 2-May-13 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Interest rate cap, notional amount | $175,000,000 | ||||
Payment of interest rate cap | 1,100,000 | 0 | 0 | 1,100,000 | |
Description of variable rate basis | one-month LIBOR | ||||
Interest rate cap, rate | 1.00% | ||||
New credit facilities, maximum borrowing capacity | 400,000,000 | ||||
Interest rate cash flow hedge loss expected to be reclassified during next 12 months | $700,000 |
StockBased_Compensation_Narrat
Stock-Based Compensation - Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Dec. 19, 2014 | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Feb. 26, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Tax benefit realized from option exercise activity | $0 | $12,800,000 | $0 | ||
Potential per share consideration due upon change in control | $40 | ||||
Number of employees affected by modification of awards | 12 | ||||
Incremental cost related to modification of awards | 0 | ||||
Performance unit awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
The maximum number of shares earned for performance unit awards | 854,064 | ||||
Remaining value of shares which would be settled in cash | 427,032 | ||||
Percentage of units granted in fiscal year 2013 vested | 0.00% | ||||
Percentage of units granted in fiscal year 2015 vested | 95.00% | ||||
Percentage of units granted in fiscal year 2014 vested | 75.00% | ||||
Employee stock unit awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Non-employee director stock unit awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Change in liability | 1,233,000 | -576,000 | 684,000 | ||
Vested but unsettled stock units | 179,092 | ||||
Minimum | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Minimum | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Maximum | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Maximum | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Maximum | Performance unit awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
The maximum number of shares issued for performance unit awards | 427,032 | ||||
Subject to Cash Settlement | Performance unit awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Change in liability | $586,000 | ($3,117,000) | $2,560,000 | ||
Chief Executive Officer [Member] | Market Performance RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period during which the award is eligible to vest | commencing February 26, 2014 and ending February 26, 2019 | ||||
Chief Executive Officer [Member] | Tranche One | Market Performance RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of awards that will vest if market performance condition is met | 30.00% | ||||
Period used to determine market performance condition | any consecutive 120 calendar day period that commences and ends during the Performance Period | ||||
Minimum closing share price used to determine market condition | 35 | ||||
Chief Executive Officer [Member] | Tranche Two | Market Performance RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of awards that will vest if market performance condition is met | 100.00% | ||||
Period used to determine market performance condition | any consecutive 120 calendar day period that commences and ends during the Performance Period | ||||
Minimum closing share price used to determine market condition | 40 |
StockBased_Compensation_Alloca
Stock-Based Compensation - Allocation of Stock-based Compensation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation, pre-tax | $29,629 | $24,589 | $24,528 |
Net change in stock-based compensation capitalized out of (into) inventory | 111 | 36 | -33 |
Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation, pre-tax | 1,621 | 1,664 | 1,218 |
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation, pre-tax | 17,387 | 12,071 | 14,965 |
Product development and engineering | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation, pre-tax | $10,621 | $10,854 | $8,345 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Fair Value Assumptions (Details) (USD $) | 12 Months Ended | ||
Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated volatility rate, minimum | 33.00% | 30.00% | 38.00% |
Estimated volatility rate, maximum | 40.00% | 35.00% | 41.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate, minimum | 0.74% | 0.65% | 0.66% |
Risk free interest rate, maximum | 1.47% | 1.60% | 0.73% |
Weighted average fair value on grant date (in dollars per share) | $7.18 | $8.92 | $9.52 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected lives, in years | 3 years | 4 years 1 month | 4 years 4 months |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected lives, in years | 4 years 5 months | 4 years 8 months | 4 years 7 months |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of the Activity for Stock Option Awards (Details) (USD $) | 12 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 29, 2012 | |||
Number of Shares | |||||||
Beginning balance (in shares) | 1,935 | 2,579 | 3,690 | ||||
Options granted (in shares) | 426 | 376 | 258 | ||||
Options exercised (in shares) | -554 | -970 | -1,254 | ||||
Options cancelled/forfeited (in shares) | -44 | -50 | -115 | ||||
Ending balance (in shares) | 1,763 | 1,935 | 2,579 | ||||
Exercisable at end of the period (in shares) | 986 | ||||||
Options vested and expected to vest after period (in shares) | 1,670 | ||||||
Weighted Average Exercise Price (per share) | |||||||
Beginning balance (in dollars per share) | $21.33 | $18.29 | $16.94 | ||||
Options granted (in dollars per share) | $24.87 | $30.62 | $28.21 | ||||
Options exercised (in dollars per share) | $16.04 | $16.61 | $15.70 | ||||
Options forfeited (in dollars per share) | $26.69 | $26.10 | $25.30 | ||||
Ending balance (in dollars per share) | $23.70 | $21.33 | $18.29 | ||||
Exercisable at end of the period (in dollars per share) | $21.03 | ||||||
Options vested and expected to vest after January 27, 2013 (in dollars per share) | $23.60 | ||||||
Aggregate Intrinsic Value | |||||||
Beginning balance | $7,722 | [1] | $29,789 | [1] | $44,435 | [1] | |
Options exercised | 5,446 | [1] | 16,052 | [1] | 14,508 | [1] | |
Ending balance | 7,722 | [1] | 7,722 | [1] | 29,789 | [1] | |
Exercisable at end of the period | 6,582 | [1] | |||||
Vested and expected to vest after period end | 7,498 | [1] | |||||
Number of Shares Exercisable | |||||||
Beginning balance | 1,275 | 1,937 | 2,767 | ||||
Ending balance | 986 | 1,275 | 1,937 | ||||
Weighted Average Contractual Term | |||||||
Exercisable at end of the period | 2 years 4 months | ||||||
Vested and expected to vest after period end | 3 years 4 months | ||||||
Stock options | |||||||
Aggregate Unrecognized Compensation | |||||||
Beginning balance | 4,699 | ||||||
Ending balance | $4,688 | $4,354 | $3,817 | $4,699 | |||
[1] | Represents the difference between the exercise price and the value of the Company’s stock at the time of exercise, for exercised grants. For outstanding awards, represents the difference between the exercise price and the value of the Company’s stock at fiscal year end. |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summarized Information of Stock Options Outstanding (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 29, 2012 |
Price Range Analysis - Outstanding | ||||
Number of shares | 1,762 | |||
Weighted average exercise price (in dollars per share) | $23.70 | |||
Weighted average contractual term | 3 years 6 months | |||
Price Range Analysis - Exercisable | ||||
Number of Shares | 986 | 1,275 | 1,937 | 2,767 |
Weighted Average Exercise Price (in dollars per share) | $21.03 | |||
Weighted Average Contractual Term | 2 years 3 months | |||
$1.15 - $4.53 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price range - lower range limit (in dollars per share) | $1.15 | |||
Exercise price range - upper range limit (in dollars per share) | $4.53 | |||
Price Range Analysis - Outstanding | ||||
Number of shares | 4 | |||
Weighted average exercise price (in dollars per share) | $4.04 | |||
Weighted average contractual term | 2 years 7 months | |||
Price Range Analysis - Exercisable | ||||
Number of Shares | 4 | |||
Weighted Average Exercise Price (in dollars per share) | $4.04 | |||
Weighted Average Contractual Term | 2 years 7 months | |||
$7.97 - $13.76 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price range - lower range limit (in dollars per share) | $7.97 | |||
Exercise price range - upper range limit (in dollars per share) | $13.76 | |||
Price Range Analysis - Outstanding | ||||
Number of shares | 24 | |||
Weighted average exercise price (in dollars per share) | $10.57 | |||
Weighted average contractual term | 1 year | |||
Price Range Analysis - Exercisable | ||||
Number of Shares | 24 | |||
Weighted Average Exercise Price (in dollars per share) | $10.57 | |||
Weighted Average Contractual Term | 1 year | |||
$15.54 - $23.33 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price range - lower range limit (in dollars per share) | $15.54 | |||
Exercise price range - upper range limit (in dollars per share) | $23.33 | |||
Price Range Analysis - Outstanding | ||||
Number of shares | 697 | |||
Weighted average exercise price (in dollars per share) | $18.42 | |||
Weighted average contractual term | 1 year 9 months | |||
Price Range Analysis - Exercisable | ||||
Number of Shares | 679 | |||
Weighted Average Exercise Price (in dollars per share) | $18.31 | |||
Weighted Average Contractual Term | 1 year 9 months | |||
$23.56 - $35.17 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price range - lower range limit (in dollars per share) | $23.56 | |||
Exercise price range - upper range limit (in dollars per share) | $35.17 | |||
Price Range Analysis - Outstanding | ||||
Number of shares | 1,037 | |||
Weighted average exercise price (in dollars per share) | $27.63 | |||
Weighted average contractual term | 4 years 7 months | |||
Price Range Analysis - Exercisable | ||||
Number of Shares | 279 | |||
Weighted Average Exercise Price (in dollars per share) | $28.80 | |||
Weighted Average Contractual Term | 3 years 8 months |
StockBased_Compensation_Summar3
Stock-Based Compensation - Summary of the Activity for Nonvested Stock Option Awards (Details) (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 29, 2012 | Jan. 25, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Options granted (in shares) | 426 | 376 | 258 | ||
Weighted Average Exercise Price (per share) | |||||
Beginning balance (in dollars per share) | $21.33 | $18.29 | $16.94 | ||
Options granted (in dollars per share) | $24.87 | $30.62 | $28.21 | ||
Options forfeited (in dollars per share) | $26.69 | $26.10 | $25.30 | ||
Ending balance (in dollars per share) | $23.70 | $21.33 | $18.29 | ||
Weighted Average Grant Date Fair Value (per share) | |||||
Options granted (in dollars per share) | $7.18 | $8.92 | $9.52 | ||
Unvested Stock Options Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Beginning balance (in shares) | 660 | 642 | 924 | ||
Options granted (in shares) | 426 | 376 | 258 | ||
Options vested (in shares) | -275 | -310 | -484 | ||
Options forfeited (in shares) | -35 | -48 | -56 | ||
Ending balance (in shares) | 776 | 660 | 642 | 924 | |
Weighted Average Exercise Price (per share) | |||||
Beginning balance (in dollars per share) | $28.39 | $23.66 | $18.47 | ||
Options granted (in dollars per share) | $24.87 | $30.62 | $28.21 | ||
Options vested (in dollars per share) | $27.03 | $21.58 | $16.42 | ||
Options forfeited (in dollars per share) | $26.32 | $26.16 | $21.69 | ||
Ending balance (in dollars per share) | $27.09 | $28.39 | $23.66 | $18.47 | |
Weighted Average Grant Date Fair Value (per share) | |||||
Beginning balance (in dollars per share) | $8.88 | $8.31 | $6.99 | $8.01 | |
Options granted (in dollars per share) | $7.18 | $8.92 | $9.52 | ||
Options vested (in dollars per share) | $8.77 | $7.77 | $6.49 | ||
Options forfeited (in dollars per share) | $8.02 | $8.53 | $7.74 | ||
Weighted Average Remaining Expense Period (years) | |||||
Ending Balance | 2 years 5 months | 2 years 3 months | 1 year 10 months 24 days | 1 year 10 months | |
Total Fair Value | |||||
Beginning balance | $5,856 | $5,333 | $6,452 | ||
Options granted | 3,058 | 3,355 | 2,457 | ||
Options vested | 2,414 | 2,406 | 3,144 | ||
Options forfeited | 283 | 422 | 432 | ||
Ending balance | $6,217 | $5,856 | $5,333 | $6,452 |
StockBased_Compensation_Summar4
Stock-Based Compensation - Summary of the Activity for Restricted Stock Awards (Details) (Restricted stock, USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jan. 25, 2015 | Jan. 27, 2013 | Jan. 29, 2012 | |
Restricted stock | ||||
Number of Shares | ||||
Beginning balance (in shares) | 32 | |||
Restricted stocks granted (in shares) | 0 | |||
Restricted stocks vested (in shares) | -32 | |||
Restricted stocks cancelled (in shares) | 0 | |||
Ending balance (in shares) | 0 | 32 | ||
Weighted Average Grant Date Fair Value (per share) | ||||
Beginning balance (in dollars per share) | $14.57 | |||
Restricted stocks vested (in dollars per share) | $14.57 | |||
Restricted stocks cancelled (in dollars per share) | ||||
Ending balance (in dollars per share) | $0 | $14.57 | ||
Aggregate Intrinsic Value | ||||
Restricted stocks vested | $902 | [1] | ||
Aggregate Unrecognized Compensation | ||||
Beginning balance | 81 | |||
Ending balance | $0 | $81 | ||
Weighted Average Remaining Expense Period (in years) | ||||
Ending Balance | 0 years | 0 years | 0 years 1 month 6 days | |
[1] | Represents the value of Semtech stock on the date that the restricted stock vested. |
StockBased_Compensation_Summar5
Stock-Based Compensation - Summary of the Activity for Performance Unit Awards (Details) (Performance unit awards, USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 29, 2012 |
Units | ||||
Beginning balance (in shares) | 376 | 353 | 360 | |
Performance units granted (in shares) | 256 | 186 | 144 | |
Stock units vested (in shares) | -93 | -114 | -144 | |
Stock units forfeited (in shares) | -113 | -49 | -7 | |
Ending balance (in shares) | 426 | 376 | 353 | 360 |
Weighted Average Grant Date Fair Value (per share) | ||||
Beginning balance (in dollars per share) | $28.50 | $23.50 | $16.65 | |
Weighted average fair value units granted (in dollars per share) | $24.74 | $30.82 | $29.30 | |
Performance units vested (in dollars per share) | $23.83 | $16.68 | $11.92 | |
Performance units forfeited (in dollars per share) | $28.76 | $28.82 | $29.35 | |
Ending balance (in dollars per share) | $27.17 | $28.50 | $23.50 | $16.65 |
Aggregate Unrecognized Compensation | ||||
Beginning balance | $3,893 | $4,754 | $4,829 | |
Ending balance | 6,164 | 3,893 | 4,754 | 4,829 |
Weighted Average Remaining Expense Period (in years) | ||||
Ending Balance | 1 year 7 months | 1 year 4 months | 1 year 1 month 6 days | 1 year |
Subject to Share Settlement | ||||
Units | ||||
Beginning balance (in shares) | 192 | 181 | 180 | |
Performance units granted (in shares) | 128 | 93 | 77 | |
Stock units vested (in shares) | -52 | -57 | -72 | |
Stock units forfeited (in shares) | -57 | -25 | -4 | |
Ending balance (in shares) | 211 | 192 | 181 | |
Subject to Cash Settlement | ||||
Units | ||||
Beginning balance (in shares) | 184 | 172 | 180 | |
Performance units granted (in shares) | 128 | 93 | 67 | |
Stock units vested (in shares) | -41 | -57 | -72 | |
Stock units forfeited (in shares) | -56 | -24 | -3 | |
Ending balance (in shares) | 215 | 184 | 172 | |
Recorded Liability | ||||
Beginning balance | 1,305 | 4,422 | 6,034 | |
Performance unit vested | 0 | 0 | 4,172 | |
Change in liability | 586 | -3,117 | 2,560 | |
Ending balance | $1,891 | $1,305 | $4,422 |
StockBased_Compensation_Summar6
Stock-Based Compensation - Summary of Fair Value Assumptions, Market Performance Units (Details) (Market Performance RSUs, USD $) | 12 Months Ended |
Jan. 25, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average fair value units granted (in dollars per share) | $15.59 |
Chief Executive Officer [Member] | Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected lives, in years | 1 year 7 months |
Estimated volatility | 34.00% |
Dividend yield | $0 |
Risk-free interest rate | 1.50% |
Weighted average fair value units granted (in dollars per share) | $17.26 |
Chief Executive Officer [Member] | Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected lives, in years | 2 years 1 month |
Estimated volatility | 34.00% |
Dividend yield | $0 |
Risk-free interest rate | 1.50% |
Weighted average fair value units granted (in dollars per share) | $14.88 |
StockBased_Compensation_Summar7
Stock-Based Compensation - Summary of Activity for Market Performance Units (Details) (Market Performance RSUs, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 |
Market Performance RSUs | ||
Number of Units | ||
Beginning balance (in shares) | 0 | |
Stock units granted (in shares) | 220 | |
Stock units vested (in shares) | 0 | |
Stock units forfeited (in shares) | 0 | |
Ending balance (in shares) | 220 | 0 |
Weighted Average Grant Date Fair Value (per share) | ||
Beginning balance (in dollars per share) | $0 | |
Weighted average fair value units granted (in dollars per share) | $15.59 | |
Stock units vested (in dollars per share) | $0 | |
Stock units forfeited (in dollars per share) | $0 | |
Ending balance (in dollars per share) | $15.59 | $0 |
Aggregate Unrecognized Compensation | ||
Beginning balance | $0 | |
Ending balance | $0 | $0 |
Weighted Average Remaining Expense Period (in years) | ||
Ending Balance | 1 year 2 months | 0 years |
StockBased_Compensation_Summar8
Stock-Based Compensation - Summary of the Activity for Employee Stock Unit Awards (Details) (Employee stock unit awards, USD $) | 12 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 29, 2012 | |||
Employee stock unit awards | |||||||
Number of Units | |||||||
Beginning balance (in shares) | 2,195 | 2,558 | 1,982 | ||||
Stock units granted (in shares) | 929 | 891 | 1,517 | ||||
Stock units vested (in shares) | -752 | -1,026 | -699 | ||||
Stock units forfeited (in shares) | -234 | -228 | -242 | ||||
Ending balance (in shares) | 2,138 | 2,195 | 2,558 | 1,982 | |||
Weighted Averaged Grant Date Fair Value (per unit) | |||||||
Beginning balance (in dollars per share) | $27.18 | $23.41 | $19.06 | ||||
Weighted average fair value units granted (in dollars per share) | $23.90 | $30.95 | $26.73 | ||||
Stock units vested (in dollars per share) | $25.55 | $21.34 | $18.20 | ||||
Stock units forfeited (in dollars per share) | $26.29 | $25.81 | $23.65 | ||||
Ending balance (in dollars per share) | $26.43 | $27.18 | $23.41 | $19.06 | |||
Aggregate Intrinsic Value | |||||||
Aggregate intrinsic value of stock units vested | $18,237 | [1] | $31,861 | [1] | $18,438 | [1] | |
Aggregate Unrecognized Compensation | |||||||
Beginning balance | 49,563 | 49,374 | 31,472 | ||||
Ending balance | $44,506 | $49,563 | $49,374 | $31,472 | |||
Weighted Average Remaining Expense Period (in years) | |||||||
Ending Balance | 2 years 5 months | 2 years 6 months | 2 years 6 months | 2 years 5 months | |||
[1] | Reflects the value of Semtech stock on the date that the stock unit vested. |
StockBased_Compensation_Summar9
Stock-Based Compensation - Summary of the Activity for Non-Employee Directors Stock Unit Awards (Details) (Non-employee director stock unit awards, USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 29, 2012 |
Non-employee director stock unit awards | ||||
Number of Units | ||||
Beginning balance (in shares) | 18 | 20 | 18 | |
Stock units granted (in shares) | 24 | 18 | 20 | |
Stock units vested (in shares) | -18 | -20 | -18 | |
Stock units forfeited (in shares) | 0 | 0 | 0 | |
Ending balance (in shares) | 24 | 18 | 20 | 18 |
Recorded Liability | ||||
Beginning balance | $3,981 | $4,557 | $3,873 | |
Change in liability | 1,233 | -576 | 684 | |
Ending balance | 5,214 | 3,981 | 4,557 | 3,873 |
Weighted Averaged Grant Date Fair Value (per unit) | ||||
Beginning balance (in dollars per share) | $35.17 | $24.46 | $27.60 | |
Weighted average fair value units granted (in dollars per share) | $26.59 | $35.17 | $24.46 | |
Stock units vested (in dollars per share) | $35.17 | $24.46 | $27.60 | |
Ending balance (in dollars per share) | $26.59 | $35.17 | $24.46 | $27.60 |
Aggregate Unrecognized Compensation | ||||
Beginning balance | 177 | 253 | 216 | |
Ending balance | $275 | $177 | $253 | $216 |
Period Over Which Expected to be Recognized (in years) | ||||
Ending Balance | 0 years 4 months 24 days | 0 years 4 months 24 days | 0 years 4 months 24 days | 0 years 4 months 24 days |
Interest_Income_and_Other_Expe2
Interest Income and Other (Expense) Income, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Interest Income and Other Expense Disclosure [Abstract] | |||
Interest income | $43 | $342 | $404 |
Non-recoverable VAT tax | -323 | -598 | -217 |
Foreign currency transaction gain (loss) | 702 | -648 | -354 |
Miscellaneous expense | -257 | -486 | -810 |
Interest income and other income (expense), net | $165 | ($1,390) | ($977) |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 12 Months Ended | |
Jan. 25, 2015 | Jan. 26, 2014 | |
Income Tax [Line Items] | ||
Net operating loss carryforward deferred tax asset attributed to excess equity deductions | $8,400,000 | |
Unremitted earnings related to foreign subsidiaries | 499,300,000 | |
Percentage of uncertain tax positions evaluating criteria | 50.00% | |
Net tax benefits, if recognized, would impact the effective tax rate | 7,800,000 | 12,300,000 |
Unrecognized tax benefits, interest and penalties | 293,000 | 293,000 |
Deferred Tax Assets, Valuation Allowance | 75,500,000 | |
Valuation Allowance, Methodologies and Assumptions | The Company assessed whether a valuation allowance should be recorded against all of its deferred tax assets (“DTAsâ€) based on the consideration of all available evidence, using a “more likely than not†realization standard. The four sources of taxable income that must be considered in determining whether DTAs will be realized are, (1) future reversals of existing taxable temporary differences (i.e., offset of gross deferred tax assets against gross deferred tax liabilities); (2) taxable income in prior carryback years, if carryback is permitted under the tax law; (3) tax planning strategies and (4) future taxable income exclusive of reversing temporary differences and carryforwards. In assessing whether a valuation allowance is required, significant weight is to be given to evidence that can be objectively verified. The Company evaluated its DTAs each reporting period, including an assessment of the cumulative income or loss over the most recent three-year period, to determine if a valuation allowance was required. A significant negative factor in the assessment was the Company’s three-year cumulative loss history as of January 25, 2015 and January 26, 2014 in Canada and the U.S. After a review of the four sources of taxable income described above and in view of its three-year cumulative losses, the Company was not able to conclude that it is more likely than not that its DTAs in Canada and the U.S. at January 25, 2015 and January 26, 2014 will be realized. | |
Domestic Tax Authority [Member] | ||
Income Tax [Line Items] | ||
Operating loss carryforwards | 87,000,000 | |
Research credits available to offset taxable income | 13,600,000 | |
Internal Revenue Service (IRS) | ||
Income Tax [Line Items] | ||
Alternative minimum tax credits available | 1,300,000 | |
State and local jurisdiction | ||
Income Tax [Line Items] | ||
Operating loss carryforwards | 96,600,000 | |
Research credits available to offset taxable income | 13,800,000 | |
Foreign Tax Authority [Member] | ||
Income Tax [Line Items] | ||
Research credits available to offset taxable income | 32,400,000 | |
Valuation Allowance of Deferred Tax Assets [Member] | ||
Income Tax [Line Items] | ||
Charged (Reversal) to Costs and Expenses | $14,300,000 | $52,900,000 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Current tax provision | |||
Federal | $749 | $3,769 | $7,100 |
State | 0 | 554 | 784 |
Foreign | 7,810 | 14,962 | 5,745 |
Subtotal | 8,559 | 19,285 | 13,629 |
Deferred tax provision (benefit) | |||
Federal | 508 | 23,938 | -15,812 |
State | -100 | -1,293 | -148 |
Foreign | -419 | -5,945 | -39,359 |
Subtotal | -11 | 16,700 | -55,319 |
Provision (benefit) for taxes | $8,548 | $35,985 | ($41,690) |
Income_Taxes_Income_Tax_Reconc
Income Taxes - Income Tax Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Federal income tax at statutory rate | $12,775 | ($44,968) | $86 |
State income taxes, net of federal benefit | -100 | -1,260 | -2,472 |
Foreign taxes at rates less than federal rates | -11,960 | -8,378 | -9,655 |
Tax credits generated | -5,302 | -5,523 | -5,328 |
Changes in valuation allowance | 14,284 | 52,942 | 2,703 |
Goodwill impairment | 0 | 40,840 | 0 |
Changes in uncertain tax positions | -5,167 | 893 | 132 |
Deemed dividends | 2,513 | 726 | 1,101 |
Equity compensation | 2,200 | 1,173 | 793 |
Permanent differences | -93 | 2,895 | 1,571 |
Sales exclusion - foreign jurisdiction | 0 | 0 | 10,689 |
Dividend and U.S. tax on foreign earnings | 0 | 0 | -23,443 |
Revaluation of deferred tax assets and liabilities | -432 | -12 | 3,510 |
Other | -170 | -3,343 | 1 |
Provision (benefit) for taxes | $8,548 | $35,985 | ($41,690) |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Assets and Deferred Tax Liabilities (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Current | $2,478 | $2,946 |
Non-current | 106 | 348 |
Subtotal | 2,584 | 3,294 |
Deferred tax liabilities | ||
Current | -1,444 | -930 |
Non-current | -2,477 | -3,626 |
Subtotal | -3,921 | -4,556 |
Net deferred tax liabilities | ($1,337) | ($1,262) |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Total current deferred tax liabilities | $1,444 | $930 |
Net deferred tax liabilities | -1,337 | -1,262 |
Current Deferred Tax Asset [Member] | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred revenue | 3,052 | 2,773 |
Inventory reserve | 3,156 | 3,032 |
Payroll and related accruals | 2,306 | 2,133 |
Bad debt reserve | 927 | 416 |
Accrued service fees | 608 | 591 |
Other deferred assets | 1,191 | 1,562 |
Valuation allowance | -8,637 | -7,321 |
Total current deferred tax asset | 2,603 | 3,186 |
Noncurrent Deferred Tax Asset [Member] | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Payroll and related accruals | 7,148 | 6,268 |
Other deferred assets | 5,054 | 3,567 |
Research and development charges | 1,323 | 2,109 |
Research credit carryforward | 40,819 | 39,350 |
NOL carryforward | 29,144 | 31,165 |
Stock-based compensation | 6,176 | 5,732 |
Valuation allowance | -66,899 | -53,931 |
Total non-current deferred tax asset | 22,765 | 34,260 |
Current Deferred Tax Liability [Member] | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Inventory reserve - foreign | -826 | -430 |
Payroll and related accruals | -256 | -223 |
Other deferred tax liabilities | -373 | -517 |
Total current deferred tax liabilities | -1,455 | -1,170 |
Noncurrent Deferred Tax Liability [Member] | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Other deferred tax liabilities | 1,377 | 1,377 |
Purchase accounting deferred tax liabilities | -20,917 | -32,466 |
Depreciation and amortization | -2,956 | -3,695 |
Total non-current deferred tax liabilities | ($25,250) | ($37,538) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Gross Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Beginning balance | $14,414 | $13,144 |
Additions based on tax positions related to the current year | 526 | 1,484 |
Reductions for tax positions of prior years, net | -3,982 | -214 |
Reductions from settlements with taxing authorities, net | -1,070 | 0 |
Ending balance | $9,888 | $14,414 |
Income_Taxes_Liability_for_Unc
Income Taxes - Liability for Uncertain Tax Positions (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Income Tax Contingency [Line Items] | ||
Total accrued taxes | $7,774 | $12,347 |
Accrued liabilities | ||
Income Tax Contingency [Line Items] | ||
Liability for uncertain tax positions - current | 0 | 0 |
Noncurrent Deferred Tax Asset [Member] | ||
Income Tax Contingency [Line Items] | ||
Liability for uncertain tax positions - noncurrent | 7,522 | 12,095 |
Other Liabilities [Member] | ||
Income Tax Contingency [Line Items] | ||
Liability for uncertain tax positions - noncurrent | $252 | $252 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Dec. 17, 2014 | Nov. 13, 2014 | Jan. 23, 2013 | |
Commitments And Contingencies [Line Items] | ||||||
Rent expense | $8,800,000 | $9,300,000 | $7,900,000 | |||
Sublease income | 142,000 | 140,000 | 133,000 | |||
Purchase obligation | 36,554,000 | |||||
Payments for Restructuring | -3,520,000 | -454,000 | ||||
Employer contribution to defined benefit plan | 900,000 | 800,000 | 800,000 | |||
Maximum potential payment under earn-out arrangement | 16,000,000 | |||||
Earn-out arrangement with Cycleo, earn-out liability | 1,700,000 | |||||
Convertible Preferred Stock | ||||||
Commitments And Contingencies [Line Items] | ||||||
Purchase obligation | 1,400,000 | |||||
Other assets | ||||||
Commitments And Contingencies [Line Items] | ||||||
Cash surrender value of life insurance | 18,500,000 | 14,400,000 | ||||
Environmental Issue [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Lease duration | 40 years | |||||
Range of possible loss, minimum | 2,700,000 | |||||
Range of possible loss, maximum | 5,700,000 | |||||
Environmental Issue [Member] | Other long-term liabilities | ||||||
Commitments And Contingencies [Line Items] | ||||||
Loss contingency accrual | 2,700,000 | |||||
Commercial Dispute [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Loss contingency, name of plaintiff | Semtech | Intrigo Systems, Inc. | Intrigo Systems, Inc. | |||
Loss contingency, damages sought by plaintiff | 3,700,000 | 2,700,000 | 2,600,000 | |||
One-time employee termination benefits | ||||||
Commitments And Contingencies [Line Items] | ||||||
Payments for Restructuring | 1,767,000 | 454,000 | ||||
United States Postretirement Benefit Plan of US Entity [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Employer contribution to defined contribution plan | 1,300,000 | 1,400,000 | 1,200,000 | |||
Foreign Postretirement Benefit Plan [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Employer contribution to defined contribution plan | $1,300,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Aggregate Minimum Annual Lease Payments (Details) (USD $) | Jan. 25, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $6,812 |
2017 | 4,895 |
2018 | 4,363 |
2019 | 3,501 |
2020 | 2,531 |
Thereafter | 5,614 |
Total minimum lease commitments | $27,716 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule of Purchase Commitments (Details) (USD $) | Jan. 25, 2015 |
In Thousands, unless otherwise specified | |
Purchase Commitments [Line Items] | |
Purchase obligation due within one year | $33,108 |
Purchase obligations due in second and third year | 3,446 |
Total | 36,554 |
Open capital purchase commitments | |
Purchase Commitments [Line Items] | |
Purchase obligation due within one year | 4,044 |
Purchase obligations due in second and third year | 0 |
Total | 4,044 |
Other open purchase commitments | |
Purchase Commitments [Line Items] | |
Purchase obligation due within one year | 28,064 |
Purchase obligations due in second and third year | 3,446 |
Total | 31,510 |
Other vendor commitments | |
Purchase Commitments [Line Items] | |
Purchase obligation due within one year | 1,000 |
Purchase obligations due in second and third year | 0 |
Total | $1,000 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Schedule of Compensation Expense and Forfeitures Under Deferred Compensation Plan (Details) (Deferred Compensation Plan For Officers And Executives, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Deferred Compensation Plan For Officers And Executives | |||
Schedule of compensation expense and forfeitures under deferred compensation plan [Line Items] | |||
Forfeitures | ($112) | ($180) | $0 |
Compensation expense, excluding forfeitures | 2,449 | 2,644 | 1,839 |
Compensation expense, net of forfeitures | $2,337 | $2,464 | $1,839 |
Commitments_and_Contingencies_5
Commitments and Contingencies - Schedule of Liability for Deferred Compensation (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of liability for Deferred Compensation [Line Items] | ||
Deferred compensation liability, current | $527 | $1,478 |
Deferred Compensation Plan For Officers And Executives | ||
Schedule of liability for Deferred Compensation [Line Items] | ||
Total deferred compensation liabilities under this plan | 19,768 | 17,043 |
Accrued liabilities | Deferred Compensation Plan For Officers And Executives | ||
Schedule of liability for Deferred Compensation [Line Items] | ||
Deferred compensation liability, current | 527 | 1,478 |
Other long-term liabilities | Deferred Compensation Plan For Officers And Executives | ||
Schedule of liability for Deferred Compensation [Line Items] | ||
Deferred compensation liability, noncurrent | $19,241 | $15,565 |
Concentration_of_Risk_Narrativ
Concentration of Risk - Narrative (Details) | 12 Months Ended | ||
Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | |
Accounts receivable | |||
Minimum concentration risk threshold | 10.00% | ||
Net sales revenue | |||
Minimum concentration risk threshold | 10.00% | ||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
Authorized distributors [Member] | Net sales revenue | |||
Concentration risk, percentage | 56.00% | ||
Supplier concentration risk [Member] | Cost of silicon wafers [Member] | |||
Concentration risk, percentage | 37.00% | 38.00% | 38.00% |
Concentration_of_Risk_Schedule
Concentration of Risk - Schedule of Significant Customers Accounting for at Least 10% of Net Sales (Details) (Net sales revenue) | 12 Months Ended | ||
Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | |
Geographic Information And Concentration Of Risk [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
Minimum concentration risk threshold | 10.00% | ||
Samsung Electronics Co., Ltd.(and affiliates) | |||
Geographic Information And Concentration Of Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 12.00% | 12.00% |
Huawei Technologies (and affiliates) | |||
Geographic Information And Concentration Of Risk [Line Items] | |||
Concentration risk, percentage | 5.00% | 9.00% | 10.00% |
Concentration_of_Risk_Schedule1
Concentration of Risk - Schedule of Significant Customers Having an Outstanding Receivable Balance that Represents at Least 10% of Total Net Receivables (Details) (Accounts receivable) | 12 Months Ended | |
Jan. 25, 2015 | Jan. 26, 2014 | |
Geographic Information And Concentration Of Risk [Line Items] | ||
Minimum concentration risk threshold | 10.00% | |
Samsung Electronics Co., Ltd.(and affiliates) | ||
Geographic Information And Concentration Of Risk [Line Items] | ||
Concentration risk, percentage | 12.00% | 13.00% |
Segment_Information_Narrative_
Segment Information Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 27, 2014 | Jul. 27, 2014 | Jan. 25, 2015 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 4 | 4 | |
Number of operating segments that aggregate into one reportable segment | 3 | 3 | |
Number of reportable segments | 1 | 1 |
Segment_Information_Net_Sales_
Segment Information Net Sales Activity by Segment (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Oct. 26, 2014 | Jul. 27, 2014 | Apr. 27, 2014 | Jan. 26, 2014 | Oct. 27, 2013 | Jul. 28, 2013 | Apr. 28, 2013 | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $130,394 | $148,890 | $145,742 | $132,859 | $126,534 | $141,026 | $165,010 | $162,407 | $557,885 | $594,977 | $578,827 |
Semiconductor Products Group [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 555,399 | 577,312 | 559,729 | ||||||||
All Other Segments [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $2,486 | $17,665 | $19,098 |
Segment_Information_Income_Los
Segment Information Income (Loss) by Segment and Reconciliation to Income Before Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Oct. 26, 2014 | Jul. 27, 2014 | Apr. 27, 2014 | Jan. 26, 2014 | Oct. 27, 2013 | Jul. 28, 2013 | Apr. 28, 2013 | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Operating income (loss) | ($13,759) | $22,810 | $22,057 | $11,149 | ($166,717) | $13,265 | $24,457 | $20,078 | $42,257 | ($108,917) | $15,589 |
Stock-based compensation, pre-tax | 29,629 | 24,589 | 24,528 | ||||||||
Write-off of deferred financing costs and debt discount | 0 | 7,093 | 0 | ||||||||
Inventory write-downs | 0 | 15,047 | 0 | ||||||||
Amortization of fair value adjustments related to acquired PP&E | -929 | 2,529 | 37,693 | ||||||||
Interest expense, net | 5,927 | 18,174 | 14,363 | ||||||||
Interest income and other (expense) income, net | 165 | -1,390 | -977 | ||||||||
(Loss) income before taxes | 36,495 | -128,481 | 249 | ||||||||
Semiconductor Products Group [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Operating income (loss) | 136,823 | 141,569 | 133,854 | ||||||||
All Other Segments [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Operating income (loss) | -10,558 | -2,744 | 4,995 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Operating income (loss) | 126,265 | 138,825 | 138,849 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Intangible amortization and impairments | 31,449 | 190,529 | 10,248 | ||||||||
Stock-based compensation, pre-tax | 29,629 | 24,589 | 24,528 | ||||||||
Write-off of deferred financing costs and debt discount | 0 | 8,773 | 0 | ||||||||
Inventory write-downs | 0 | 2,408 | 39,406 | ||||||||
Restructuring charges | 1,285 | 3,086 | 0 | ||||||||
Other non-segment related expenses | 3,310 | 1,522 | 29,382 | ||||||||
Amortization of fair value adjustments related to acquired PP&E | 18,335 | 16,835 | 19,696 | ||||||||
Interest expense, net | 5,927 | 18,174 | 14,363 | ||||||||
Interest income and other (expense) income, net | ($165) | $1,390 | $977 |
Segment_Information_Revenue_by
Segment Information Revenue by Product Line (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Oct. 26, 2014 | Jul. 27, 2014 | Apr. 27, 2014 | Jan. 26, 2014 | Oct. 27, 2013 | Jul. 28, 2013 | Apr. 28, 2013 | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $130,394 | $148,890 | $145,742 | $132,859 | $126,534 | $141,026 | $165,010 | $162,407 | $557,885 | $594,977 | $578,827 |
Signal Integrity and Timing Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 255,743 | 256,808 | 265,293 | ||||||||
Protection Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 219,024 | 254,589 | 228,882 | ||||||||
Power Management and High Reliability Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 80,632 | 65,947 | 65,598 | ||||||||
Wireless and Sensing Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $2,486 | $17,633 | $19,054 | ||||||||
Sales Revenue, Goods, Net [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | ||||||||
Sales Revenue, Goods, Net [Member] | Signal Integrity and Timing Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Concentration risk, percentage | 47.00% | 43.00% | 46.00% | ||||||||
Sales Revenue, Goods, Net [Member] | Protection Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Concentration risk, percentage | 39.00% | 43.00% | 40.00% | ||||||||
Sales Revenue, Goods, Net [Member] | Power Management and High Reliability Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Concentration risk, percentage | 14.00% | 11.00% | 11.00% | ||||||||
Sales Revenue, Goods, Net [Member] | Wireless and Sensing Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Concentration risk, percentage | 0.00% | 3.00% | 3.00% |
Segment_Information_Revenue_by1
Segment Information Revenue by Geographic Region (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Oct. 26, 2014 | Jul. 27, 2014 | Apr. 27, 2014 | Jan. 26, 2014 | Oct. 27, 2013 | Jul. 28, 2013 | Apr. 28, 2013 | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Geographic Information And Concentration Of Risk [Line Items] | |||||||||||
Net sales | $130,394 | $148,890 | $145,742 | $132,859 | $126,534 | $141,026 | $165,010 | $162,407 | $557,885 | $594,977 | $578,827 |
Asia-Pacific | |||||||||||
Geographic Information And Concentration Of Risk [Line Items] | |||||||||||
Net sales | 412,514 | 432,097 | 405,179 | ||||||||
North America | |||||||||||
Geographic Information And Concentration Of Risk [Line Items] | |||||||||||
Net sales | 85,139 | 94,574 | 98,401 | ||||||||
Europe | |||||||||||
Geographic Information And Concentration Of Risk [Line Items] | |||||||||||
Net sales | $60,232 | $68,306 | $75,247 | ||||||||
Net sales revenue | |||||||||||
Geographic Information And Concentration Of Risk [Line Items] | |||||||||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | ||||||||
Net sales revenue | Asia-Pacific | |||||||||||
Geographic Information And Concentration Of Risk [Line Items] | |||||||||||
Concentration risk, percentage | 74.00% | 73.00% | 70.00% | ||||||||
Net sales revenue | North America | |||||||||||
Geographic Information And Concentration Of Risk [Line Items] | |||||||||||
Concentration risk, percentage | 15.00% | 16.00% | 17.00% | ||||||||
Net sales revenue | Europe | |||||||||||
Geographic Information And Concentration Of Risk [Line Items] | |||||||||||
Concentration risk, percentage | 11.00% | 11.00% | 13.00% |
Segment_Information_Revenue_by2
Segment Information Revenue by Country (Details) (Net sales revenue) | 12 Months Ended | ||
Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | |
Geographic Information And Concentration Of Risk [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
Geographic Concentration Risk [Member] | |||
Geographic Information And Concentration Of Risk [Line Items] | |||
Concentration risk, percentage | 70.00% | 72.00% | 69.00% |
China Including Hong Kong [Member] | Geographic Concentration Risk [Member] | |||
Geographic Information And Concentration Of Risk [Line Items] | |||
Concentration risk, percentage | 38.00% | 34.00% | 35.00% |
United States | Geographic Concentration Risk [Member] | |||
Geographic Information And Concentration Of Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | 16.00% | 17.00% |
Japan | Geographic Concentration Risk [Member] | |||
Geographic Information And Concentration Of Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 11.00% | 10.00% |
South Korea | Geographic Concentration Risk [Member] | |||
Geographic Information And Concentration Of Risk [Line Items] | |||
Concentration risk, percentage | 9.00% | 11.00% | 7.00% |
Segment_Information_Income_Los1
Segment Information Income (Loss) by Region (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Segment Reporting [Abstract] | |||
Domestic | ($33,540) | ($158,780) | ($19,867) |
Foreign | 70,035 | 30,299 | 20,116 |
(Loss) income before taxes | $36,495 | ($128,481) | $249 |
Segment_Information_Longlived_
Segment Information Long-lived Assets by Region (Details) (USD $) | Jan. 25, 2015 | Jan. 26, 2014 |
In Thousands, unless otherwise specified | ||
Geographic Information And Concentration Of Risk [Line Items] | ||
Long-lived assets | $115,471 | $110,121 |
United States | ||
Geographic Information And Concentration Of Risk [Line Items] | ||
Long-lived assets | 63,449 | 55,303 |
Rest of North America [Member] | ||
Geographic Information And Concentration Of Risk [Line Items] | ||
Long-lived assets | 25,139 | 28,577 |
Europe | ||
Geographic Information And Concentration Of Risk [Line Items] | ||
Long-lived assets | 9,119 | 14,900 |
Asia and All Others | ||
Geographic Information And Concentration Of Risk [Line Items] | ||
Long-lived assets | $17,764 | $11,341 |
Reorganization_Costs_Details
Reorganization Costs (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 |
Reorganization Costs [Roll Forward] | ||
Beginning balance | $481 | $1,330 |
Cash payments | -237 | -849 |
Ending balance | $244 | $481 |
Restructuring_Costs_Narrative_
Restructuring Costs - Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Inventory write-downs | $0 | $15,047,000 | $0 | |
Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory write-downs | 15,047,000 | |||
Contract termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional contract commitment cancellation charges | 4,900,000 | |||
Contract termination | Product development and engineering | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional contract commitment cancellation charges | 3,200,000 | |||
Contract termination | Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional contract commitment cancellation charges | $3,000,000 | $1,700,000 |
Restructuring_Costs_Restructur
Restructuring Costs - Restructuring Reserve Rollforward (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $2,632 | $0 | |
Restructuring charges | 1,285 | 3,086 | 0 |
Cash payments | 3,520 | 454 | |
Ending balance | 282 | 2,632 | 0 |
Restructuring Reserve, Translation and Other Adjustment | -115 | ||
One-time employee termination benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1,387 | 0 | |
Restructuring charges | 662 | 1,841 | |
Cash payments | -1,767 | -454 | |
Ending balance | 282 | 1,387 | |
Restructuring Reserve, Translation and Other Adjustment | 0 | ||
Contract commitments | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1,245 | 0 | |
Restructuring charges | 623 | 1,245 | |
Cash payments | 1,753 | 0 | |
Ending balance | 0 | 1,245 | |
Restructuring Reserve, Translation and Other Adjustment | ($115) |
Stock_Repurchase_Program_And_S2
Stock Repurchase Program And Shares Withheld From Vested Restricted Shares - Narrative (Details) (USD $) | 0 Months Ended | 1 Months Ended | ||
Aug. 21, 2013 | Nov. 30, 2014 | Dec. 01, 2014 | Nov. 30, 2012 | |
Equity [Abstract] | ||||
Share repurchase program, authorized amount | $100,000,000 | $50,000,000 | $50,000,000 | |
Share repurchase program, additional amount authorized | 50,000,000 | 28,400,000 | ||
Stock repurchase program, remaining authorized repurchase amount | $21,600,000 |
Stock_Repurchase_Program_And_S3
Stock Repurchase Program And Shares Withheld From Vested Restricted Shares - (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Equity, Class of Treasury Stock [Line Items] | |||
Repurchases, shares | 1,578,869 | 1,034,491 | 273,139 |
Repurchases, value | $40,906 | $30,000 | $7,769 |
Shares repurchased under the 2011 program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchases, shares | 1,578,869 | 1,034,491 | 263,443 |
Repurchases, value | 40,906 | 30,000 | 7,500 |
Shares withheld from vested restricted shares | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchases, shares | 0 | 0 | 9,696 |
Repurchases, value | $0 | $0 | $269 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) - (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 25, 2015 | Oct. 26, 2014 | Jul. 27, 2014 | Apr. 27, 2014 | Jan. 26, 2014 | Oct. 27, 2013 | Jul. 28, 2013 | Apr. 28, 2013 | Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 |
Selected Quarterly Financial Data (in Dollars) [Abstract] | |||||||||||
Net sales | $130,394 | $148,890 | $145,742 | $132,859 | $126,534 | $141,026 | $165,010 | $162,407 | $557,885 | $594,977 | $578,827 |
Gross profit | 73,161 | 89,326 | 88,221 | 78,084 | 53,805 | 83,411 | 100,708 | 97,287 | 328,792 | 335,211 | 314,612 |
Operating (loss) income | -13,759 | 22,810 | 22,057 | 11,149 | -166,717 | 13,265 | 24,457 | 20,078 | 42,257 | -108,917 | 15,589 |
Net income (loss) | ($15,441) | $17,623 | $17,898 | $7,867 | ($210,808) | $12,453 | $19,112 | $14,777 | $27,947 | ($164,466) | $41,939 |
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Basic (in dollars per share) | ($0.23) | $0.26 | $0.27 | $0.12 | ($3.12) | $0.18 | $0.28 | $0.22 | $0.42 | ($2.44) | $0.64 |
Diluted (in dollars per share) | ($0.23) | $0.26 | $0.26 | $0.12 | ($3.12) | $0.18 | $0.28 | $0.22 | $0.41 | ($2.44) | $0.62 |
Weighted average number of shares used in computing earnings per share: | |||||||||||
Basic (in shares) | 66,763 | 67,162 | 67,208 | 67,300 | 67,523 | 67,792 | 67,614 | 66,956 | 67,108 | 67,471 | 65,809 |
Diluted (in shares) | 66,763 | 67,654 | 67,850 | 67,970 | 67,523 | 68,871 | 69,090 | 68,579 | 67,685 | 67,471 | 67,472 |
Subsequent_Event_Details
Subsequent Event (Details) (Triune Systems [Member], Business Acquisition [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Mar. 04, 2015 |
Triune Systems [Member] | Business Acquisition [Member] | |
Subsequent Event [Line Items] | |
Aggregate purchase price to acquire business | $45 |
Cash paid at closing to acquire businesses | 35 |
Additional cash to be paid in six months to acquire business | $10 |
Schedule_II_Valuation_And_Qual1
Schedule II - Valuation And Qualifying Accounts (Details) (Allowance for doubtful accounts and other sales allowances, USD $) | 12 Months Ended | ||
Jan. 25, 2015 | Jan. 26, 2014 | Jan. 27, 2013 | |
Allowance for doubtful accounts and other sales allowances | |||
Change in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $3,824,676 | $4,917,070 | $3,593,579 |
Charged (Reversal) to Costs and Expenses | 396,151 | -567,394 | 1,323,491 |
Deductions | -697,679 | -525,000 | 0 |
Balance at End of Year | $3,523,148 | $3,824,676 | $4,917,070 |