Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jul. 29, 2018 | Aug. 24, 2018 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Jul. 29, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | SEMTECH CORP | |
Entity Central Index Key | 88,941 | |
Current Fiscal Year End Date | --01-27 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 66,222,077 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Net sales | $ 163,211 | $ 153,127 | $ 293,640 | $ 296,929 |
Cost of sales | 63,087 | 60,891 | 122,047 | 119,778 |
Gross profit | 100,124 | 92,236 | 171,593 | 177,151 |
Operating costs and expenses: | ||||
Selling, general and administrative | 33,529 | 39,237 | 74,935 | 73,252 |
Product development and engineering | 28,079 | 27,432 | 54,278 | 53,415 |
Intangible amortization | 6,480 | 6,675 | 13,441 | 12,961 |
Loss on disposition of business operations | 0 | 0 | 0 | 375 |
Changes in the fair value of contingent earn-out obligations | (900) | 0 | (900) | 0 |
Total operating costs and expenses | 67,188 | 73,344 | 141,754 | 140,003 |
Operating income | 32,936 | 18,892 | 29,839 | 37,148 |
Interest expense, net | (2,200) | (2,029) | (4,390) | (4,075) |
Non-operating income (expense), net | 542 | (204) | 732 | (836) |
Income before taxes and equity in net losses of equity method investments | 31,278 | 16,659 | 26,181 | 32,237 |
Provision for taxes | 6,082 | 4,095 | (11,428) | 7,852 |
Net income before equity in net losses of equity method investments | 25,196 | 12,564 | 37,609 | 24,385 |
Equity in net losses of equity method investments | (27) | 0 | (58) | 0 |
Net income | $ 25,169 | $ 12,564 | $ 37,551 | $ 24,385 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.38 | $ 0.19 | $ 0.57 | $ 0.37 |
Diluted (in dollars per share) | $ 0.37 | $ 0.19 | $ 0.55 | $ 0.36 |
Weighted average number of shares used in computing earnings per share: | ||||
Basic (in shares) | 66,063 | 65,763 | 66,194 | 65,801 |
Diluted (in shares) | 68,880 | 67,470 | 68,428 | 67,421 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Net income | $ 25,169 | $ 12,564 | $ 37,551 | $ 24,385 |
Other comprehensive income, net: | ||||
Unrealized gain on convertible debt | 0 | 0 | 0 | 750 |
Release of realized gain on convertible debt | 0 | (750) | 0 | (750) |
Change in employee benefit plans | (16) | 22 | (32) | 43 |
Other comprehensive (loss) income, net | (155) | (121) | (124) | 780 |
Comprehensive income | 25,014 | 12,443 | 37,427 | 25,165 |
Foreign Exchange Contract [Member] | ||||
Other comprehensive income, net: | ||||
Unrealized (loss) gain on foreign currency cash flow hedges | (164) | 810 | (117) | 993 |
Realized gain (loss) on foreign currency cash flow hedges | $ 25 | $ (203) | $ 25 | $ (256) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 29, 2018 | Jan. 28, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 311,334 | $ 307,923 |
Accounts receivable, less allowances of $2,849 and $9,089, respectively | 78,376 | 53,183 |
Inventories | 58,893 | 71,067 |
Prepaid taxes | 9,347 | 11,809 |
Other current assets | 20,346 | 17,250 |
Total current assets | 478,296 | 461,232 |
Non-current assets: | ||
Property, plant and equipment, net of accumulated depreciation of $190,149 and $179,604, respectively | 122,608 | 124,586 |
Deferred tax assets | 24,244 | 4,236 |
Goodwill | 346,731 | 341,897 |
Other intangible assets, net | 46,766 | 60,207 |
Other assets | 90,125 | 93,618 |
TOTAL ASSETS | 1,108,770 | 1,085,776 |
Current liabilities: | ||
Accounts payable | 37,717 | 37,208 |
Accrued liabilities | 55,791 | 60,832 |
Deferred revenue | 5,100 | 12,758 |
Current portion - long-term debt | 17,307 | 15,410 |
Total current liabilities | 115,915 | 126,208 |
Non-current liabilities: | ||
Deferred tax liabilities | 15,762 | 14,682 |
Long term debt, less current portion | 201,986 | 211,114 |
Other long-term liabilities | 71,819 | 68,759 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value, 250,000,000 shares authorized, 78,136,144 issued and 65,931,409 outstanding and 78,136,144 issued and 66,280,129 outstanding, respectively | 785 | 785 |
Treasury stock, at cost, 12,204,735 shares and 11,856,015 shares, respectively | (288,541) | (251,974) |
Additional paid-in capital | 442,964 | 415,056 |
Retained earnings | 549,404 | 502,346 |
Accumulated other comprehensive loss | (1,324) | (1,200) |
Total stockholders’ equity | 703,288 | 665,013 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,108,770 | $ 1,085,776 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 29, 2018 | Jan. 28, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, receivables | $ 2,849 | $ 9,089 |
Accumulated depreciation | $ 190,149 | $ 179,604 |
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 | 65,931,409 | 66,280,129 |
Treasury stock, shares | 12,204,735 | 11,856,015 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 29, 2018 | Jul. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 37,551 | $ 24,385 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 24,540 | 23,093 |
Accretion of deferred financing costs and debt discount | 269 | 289 |
Deferred income taxes | (14,870) | 380 |
Share-based compensation and warrant costs | 49,481 | 28,810 |
Loss on disposition of business operations and assets | 11 | 424 |
Earn-out liabilities | (900) | 0 |
Equity in net losses of equity method investments | 58 | 0 |
Contingencies | 0 | 45 |
Corporate owned life insurance, net | 645 | 554 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (20,653) | (9,490) |
Inventories | 13,020 | (9,423) |
Other assets | 4,190 | (1,099) |
Accounts payable | 2,626 | (9,132) |
Accrued liabilities | (6,414) | (6,541) |
Deferred revenue | (53) | 196 |
Income taxes payable | (1,697) | 1,328 |
Other liabilities | (3,437) | 2,177 |
Net cash provided by operating activities | 84,367 | 45,996 |
Cash flows from investing activities: | ||
Proceeds from sales of property, plant and equipment | 10 | 6 |
Purchase of property, plant and equipment | (9,821) | (18,952) |
Purchase of investments | (5,595) | (7,462) |
Acquisition, net of cash acquired | (7,321) | (17,619) |
Proceeds from sale of investments | 1,601 | 0 |
Net cash used in investing activities | (21,126) | (44,027) |
Cash flows from financing activities: | ||
Payments of term loans | (7,500) | (7,500) |
Payment for employee share-based compensation payroll taxes | (10,640) | (5,687) |
Proceeds from exercise of stock options | 8,048 | 2,332 |
Repurchase of outstanding common stock | (49,738) | (10,394) |
Net cash used in financing activities | (59,830) | (21,249) |
Net increase (decrease) in cash and cash equivalents | 3,411 | (19,280) |
Cash and cash equivalents at beginning of period | 307,923 | 297,134 |
Cash and cash equivalents at end of period | 311,334 | 277,854 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 2,939 | 3,078 |
Interest paid | 3,900 | 3,490 |
Non-cash items | ||
Capital expenditures in accounts payable | $ 2,314 | $ 1,902 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jul. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Nature of Business Semtech Corporation (together with its consolidated subsidiaries, the "Company" or "Semtech") is a global supplier of analog and mixed-signal semiconductors and advanced algorithms. The end customers for the Company’s products are primarily original equipment manufacturers ("OEMs") 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, 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, wireless charging, set-top boxes, digital televisions, monitors and displays, tablets, wearables, digital video recorders and other consumer equipment. Industrial: analog and digital video broadcast equipment, Video-over-IP solutions, automated meter reading, Internet of Things ("IoT"), smart grid, wireless charging, military and aerospace, medical, security systems, automotive, industrial and home automation 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 other quarters generally end on the last Sunday of April, July and October. All quarters consist of 13 weeks except for one 14 -week period in the fourth quarter of 53 -week years. The second quarter of fiscal years 2019 and 2018 each consisted of 13 weeks. Principles of Consolidation The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company, in accordance with accounting principles generally accepted in the United States ("GAAP") and on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended January 28, 2018 . In the opinion of the Company, these interim unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, the financial position of the Company for the interim periods presented. All intercompany balances have been eliminated. Certain information and footnote disclosures normally included in annual consolidated financial statements have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Because the interim unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for a complete set of consolidated financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended January 28, 2018. The results reported in these interim unaudited condensed consolidated financial statements should not be regarded as indicative of results that may be expected for any subsequent period or for the entire year. The Company’s interim unaudited condensed consolidated statements of income are referred to herein as the "Statements of Income." The Company’s interim unaudited condensed consolidated balance sheets are referred to herein as the "Balance Sheets" and interim unaudited condensed consolidated statements of cash flows as the "Statements of Cash Flows." 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 12 for further discussion). Prior to the first quarter of fiscal year 2019, the Company had four operating segments. Beginning with the first quarter of fiscal year 2019, the Company identified three operating segments that aggregate into one reportable segment, the Semiconductor Products Group. Use of Estimates The preparation of financial statements in conformity with 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. Acquisitions On May 2, 2018, the Company acquired substantially all the assets of IC Interconnect, Inc. (“ICI”) for a cash payment of approximately $7.3 million . The addition of ICI is aimed at further enhancing the Company’s U.S. research and development capabilities for its next-generation Z-Pak platform. $4.8 million was attributed to goodwill and $2.5 million was attributed to the estimated fair values of the tangible net assets acquired. The goodwill is deductible for tax purposes. The transaction was accounted for as a business combination and we are still assessing the purchase price allocation. Net revenues, earnings and pro forma results of operations have not been presented because they are not material to the Company’s consolidated financial statements. Settlements On August 1, 2018, the Company announced the settlement of a lawsuit filed against HiLight Semiconductor Limited and related individual Defendants in accordance with which Semtech is to be paid approximately $9.0 million to cover damages for claims, costs and attorneys' fees. The $6.6 million received during the second quarter of fiscal year 2019 is presented within selling, general and administrative ("SG&A"). Recent Accounting Standards Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification ("ASC") 606), which requires an entity to recognize revenue from the transfer of control 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. The Company adopted the standard, effective January 29, 2018, using the modified retrospective transition method which resulted in an adjustment to retained earnings for the cumulative effect of applying the standard to all contracts not completed as of the adoption date. The primary change associated with the adoption relates to the Company’s sales to distributors with return or price adjustment rights where the Company will no longer defer revenue until the resale by the distributor to the end customer, but rather, will record revenue at the time control transfers to the distributor. The Company estimated the effects of returns and allowances provided to these distributors. Upon adoption, including the effect of income taxes, opening retained earnings as of January 29, 2018 increased by $11.1 million net, as a result of these changes. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Asset Transfers Other Than Inventory (Topic 740). This accounting standard update is aimed at recognizing the income tax consequences of intra-entity transfers of assets other than inventory when they occur. This removes the exception to postpone the recognition of income tax consequences of intra-entity transfers until the asset has been sold to an outside party. In the first quarter of 2019, the Company adopted ASU 2016-16 using a modified retrospective transition method, resulting in a $1.8 million decrease in retained earnings, a $3.7 million net increase in deferred income tax assets, and a $5.5 million decrease in pre-paid taxes. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230). The primary purpose of this ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. Accounting Guidance Issued but Not Adopted as of July 29, 2018 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will require that substantially all leases be recognized by lessees on their balance sheets as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. Public entities are required to apply the amendments for annual periods beginning after December 15, 2018 and for interim periods within those annual periods. The Company will adopt this update beginning in the first quarter of fiscal year 2020 utilizing the modified retrospective transition method by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to elect certain practical expedients permitted under the transition guidance within the standard. The Company expects the valuation of right of use assets and lease liabilities, previously described as operating leases, to be the present value of the Company’s forecasted future lease commitments. The Company is continuing to assess the overall impacts of the new standard, including the discount rate to be applied in these valuations, and expects the amendments will have a material impact on our consolidated financial statements, primarily to the consolidated balance sheets and related disclosures. |
Revenue
Revenue | 6 Months Ended |
Jul. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company derives its revenue primarily from the sale of semiconductor products into various end markets. Revenue is recognized when control of these products is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for these products. Control is generally transferred when products are shipped and, to a lesser extent, when the products are delivered. Recovery of costs associated with product design and engineering services are recognized during the period in which services are performed and are 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. The Company determines revenue recognition through the following five steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company’s revenue contracts generally represent a single performance obligation to sell its products to trade customers. Net sales reflect the transaction prices for contracts, which include units shipped at selling prices reduced by variable consideration. Determination of variable consideration requires judgment by the Company. Variable consideration includes expected sales returns and other price adjustments. Variable consideration is estimated using the expected value method considering all reasonably available information, including the Company’s historical experience and its current expectations, and is reflected in the transaction price when sales are recorded. Sales returns are generally accepted at the Company’s discretion or from distributors with such rights. The Company’s contracts with trade customers do not have significant financing components or non-cash consideration. The Company records net sales excluding taxes collected on its sales to its trade customers. The Company provides an assurance type warranty which is typically not sold separately and does not represent a separate performance obligation. The Company’s payment terms are generally aligned with shipping terms. The following presents the amounts by which financial statement line items were affected in the current periods due to the adoption of ASC 606 as compared with the guidance that was in effect before the change: Three Months Ended Six Months Ended Statements of Income July 29, 2018 July 29, 2018 (in thousands, except per share amounts) Increase/(decrease) Increase/(decrease) Net sales $ 1,884 $ 6,346 Cost of sales $ 428 $ 1,444 Provision for taxes $ 306 $ 1,030 Net income $ 1,150 $ 3,873 Earnings per share: Basic 0.02 0.06 Diluted 0.02 0.06 Balance Sheets July 29, 2018 (in thousands) Increase/(decrease) Deferred revenue (17,306 ) Excludes line items that were not materially affected by the Company's adoption of ASC 606. The adoption had no impact to total net cash provided by or used in operating, investing or financing activities in the Statements of Cash Flows. Contract Modifications: If a contract is modified, which does not normally occur, changes in contract specifications and requirements must be accounted for. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company’s contract modifications are to distributor agreements for adding new goods or services that are considered distinct from the existing contract and the change in contract price reflects the standalone selling price of the distinct service. Disaggregated Revenue: The Company disaggregates revenue from contracts with customers by types of products and geography, as it believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Refer to “Note 12 : Segment Information” for further information on revenues by product line and geographic region. Contract Balances: Accounts receivable represents the Company’s unconditional right to receive consideration from its customers. Contract assets consist of the Company’s right to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditioned on something other than the passage of time. ASC 606 also requires an entity to present a revenue contract as a contract liability in instances when a customer pays consideration, or an entity has a right to an amount of consideration that is unconditional (e.g. receivable), before the entity transfers a good or service to the customer. The opening and closing contract asset and contract liability balances are not material. There were no impairment losses recognized on the Company’s accounts receivable or contract assets during the three and six months ended July 29, 2018 . There were no significant changes in the contract assets or the contract liabilities for the three and six months ended July 29, 2018 . Practical Expedients: Unsatisfied Performance Obligations: Because all of the Company’s performance obligations relate to contracts with a duration of less than one year, the Company elected to apply the optional exemption provided in ASC 606 and, therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. Contract Costs: All incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration. Significant Financing Component: The Company does not adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Sales Tax Exclusion from the Transaction Price: The Company excludes from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from the customer. Shipping and Handling Activities: The Company accounts for shipping and handling activities performed after a customer obtains control of the good as activities to fulfill the promise to transfer the good. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 29, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The computation of basic and diluted earnings per common share was as follows: Three Months Ended Six Months Ended (in thousands, except per share amounts) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Net income $ 25,169 $ 12,564 $ 37,551 $ 24,385 Weighted average common shares outstanding - basic 66,063 65,763 66,194 65,801 Dilutive effect of stock options and restricted stock units 2,817 1,707 2,234 1,620 Weighted average common shares outstanding - diluted 68,880 67,470 68,428 67,421 Basic earnings per common share $ 0.38 $ 0.19 $ 0.57 $ 0.37 Diluted earnings per common share $ 0.37 $ 0.19 $ 0.55 $ 0.36 Anti-dilutive shares not included in the above calculations 202 254 364 385 Basic earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the reporting period. Diluted earnings per common share incorporates the incremental shares issuable, calculated using the treasury stock method, upon the assumed exercise of non-qualified stock options, the vesting of restricted stock units and performance unit awards if the conditions have been met. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 29, 2018 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | Share-Based Compensation Financial Statement Effects and Presentation . The following table summarizes pre-tax share-based compensation included in the Statements of Income for the three and six months ended July 29, 2018 and July 30, 2017 . Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Revenue offset $ — $ 3,197 $ 21,501 $ 8,477 Cost of sales 306 281 633 845 Selling, general and administrative 11,378 10,055 22,840 15,611 Product development and engineering 2,282 1,992 4,507 3,877 Share-based compensation $ 13,966 $ 15,525 $ 49,481 $ 28,810 Net change in share-based compensation capitalized into inventory $ — $ — $ — $ (414 ) Warrant . On October 5, 2016, the Company issued a warrant (the "Warrant") to Comcast Cable Communications Management LLC ("Comcast") to purchase up to 1,086,957 shares (the "Warrant Shares") of the common stock of Semtech Corporation. The Warrant was issued by the Company to Comcast in connection with an agreement between the parties regarding the intended trial deployment by Comcast of a low-power wide-area network ("LPWAN") in the United States, based on the Company’s LoRa® devices and wireless radio frequency technology. The Warrant was accounted for as equity and the cost was recognized as an offset to net sales over the respective performance period. The Warrant consisted of five performance tranches. The cost associated with each tranche had been recognized based on the fair value at each reporting date until vesting which was the measurement date. On April 27, 2018, the Company accelerated the vesting of the remaining 586,956 unvested shares from the Warrant, resulting in the full recognition of the remaining costs to be recognized for the Warrant. For the six month period ended July 29, 2018 , the revenue offset reflects the cost associated with the Warrant of $21.5 million , including $15.9 million , related to the acceleration. The Warrant is now fully-vested and exercisable for a total of 869,565 shares, with no additional costs to be recognized in future periods. Performance-Based Restricted Stock Units . The Company grants performance-based restricted stock units to select employees. The performance-based restricted stock units are valued as of the measurement date and expense is recognized on a straight line basis for the awards expected to vest based on the probability of attainment of the performance condition for each separately vesting portion of the award. In the first quarter of fiscal year 2019 , the Company granted 200,442 performance-based restricted stock units that have a pre-defined market condition and a service condition that are accounted for as equity awards. The market condition is determined based upon the Company’s total stockholder return ("TSR") benchmarked against the TSR of the S&P SPDR Semiconductor ETF (NYSE:XSD) over a one , two and three year period ( one-third of the awards vesting each performance period ). The fiscal year 2019 award recipients must be employed for the entire performance period and be an active employee at the time of vesting of the awards. The Company used a Monte Carlo simulation to determine the grant-date fair value for these awards, which takes into consideration the possible outcomes pertaining to the TSR market condition. The grant-date fair value per unit of the awards granted in the first quarter of fiscal year 2019 for each one, two and three year performance period is $33.02 , $34.85 and $36.52 , respectively. Award Modifications . In the first quarter of fiscal year 2019, the Company modified the terms of 159,000 fully vested shares held by 8 employees. As a result of the modification, additional compensation cost of $2.8 million was recognized during the first quarter of fiscal year 2019. |
Investments
Investments | 6 Months Ended |
Jul. 29, 2018 | |
Investments [Abstract] | |
Investments | Investments The following table summarizes the Company’s available-for-sale securities: July 29, 2018 January 28, 2018 (in thousands) Market Value Adjusted Cost Gross Unrealized Gain Market Value Adjusted Cost Gross Unrealized Gain Convertible debt $ 2,605 $ 2,605 $ — $ 1,960 $ 1,960 $ — Total other assets $ 2,605 $ 2,605 $ — $ 1,960 $ 1,960 $ — The following table summarizes the maturities of the Company’s available-for-sale securities: July 29, 2018 January 28, 2018 (in thousands) Market Value Adjusted Cost Market Value Adjusted Cost Within 1 year $ 2,000 $ 2,000 $ 1,960 $ 1,960 After 1 year through 5 years 605 605 — — Total investments $ 2,605 $ 2,605 $ 1,960 $ 1,960 The Company's available-for-sales securities consisted of investments in convertible debt instruments issued by privately-held companies and is included in "Other current assets" within the Balance Sheets. The Company currently has a $30.0 million investment in a private entity that is accounted for at cost and included in "Other assets" within the Balance Sheets. As part of its investment, the Company received a call option that would have allowed the Company to purchase all of the outstanding equity of the entity. The Company did not exercise the call option, which expired on June 30, 2018. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Instruments Measured at Fair Value on a Recurring Basis Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented within the Company's Balance Sheets as follows: Fair Value as of July 29, 2018 Fair Value as of January 28, 2018 (in thousands) Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Financial assets: Convertible debt $ 2,605 $ — $ — $ 2,605 $ 1,960 $ — $ — $ 1,960 Total financial assets $ 2,605 $ — $ — $ 2,605 $ 1,960 $ — $ — $ 1,960 Financial liabilities: AptoVision Earn-out $ 20,100 $ — $ — $ 20,100 $ 21,000 $ — $ — $ 21,000 Cycleo Earn-out 668 — — 668 668 — — 668 Derivative financial instruments 126 — 126 — — — — — Total financial liabilities $ 20,894 $ — $ 126 $ 20,768 $ 21,668 $ — $ — $ 21,668 During the six months ended July 29, 2018 , the Company had no transfers of financial assets or liabilities between Level 1, Level 2 or Level 3. As of July 29, 2018 and January 28, 2018 , the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted. The fair values of the foreign exchange forward contracts are valued using Level 2 inputs. Foreign currency forward contracts are valued using readily available foreign currency forward and interest rate curves. The fair value of each contract is determined by comparing the contract rate to the forward rate and discounting to the present value. Contracts in a gain position are recorded in the Balance Sheets within the caption "Other current assets" and the value of contracts in a loss position are recorded within the caption "Accrued liabilities" within the Balance Sheets. Please see Note 15 for further discussion of the Company’s derivative instruments. The convertible debt is valued using probability weighted cash flows (Level 3 inputs). The AptoVision Earn-out liability is valued utilizing estimates of annual revenue, adjusted earnings and product development targets (Level 3 inputs) through July 2020. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Cycleo Earn-out liability (see Note 11 ) is valued utilizing estimates of annual revenue and operating income (Level 3 inputs) through April 2020. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Company measures contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. The Company uses a Monte Carlo valuation method as a valuation technique to determine the value of the earn-out liability. The significant unobservable inputs used in the fair value measurements are revenue projections over the earn-out period, and the probability outcome percentages assigned to each scenario. Significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability, with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liabilities will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. For the Cycleo Earn-out and AptoVision Earn-out, these companies have business profiles comparable to a start-up company. Accordingly, their respective revenue projections are subject to significant revisions. This characteristic can result in volatile changes to the measurement of fair value for a given earn-out. The Company reviews and re-assesses the estimated fair value of contingent consideration on a recurring basis, and the updated fair value could differ materially from the previous estimates. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. A reconciliation of the change in the earn-out liability during the six months ended July 29, 2018 is as follows: (in thousands) AptoVision Cycleo Total Balance at January 28, 2018 $ 21,000 $ 668 $ 21,668 Changes in the fair value of contingent earn-out obligations (900 ) — (900 ) Balance as of July 29, 2018 $ 20,100 $ 668 $ 20,768 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 including money market deposits, net receivables, certain other assets, accounts payable, 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 in Note 9 ) is $123.8 million and $131.3 million as of July 29, 2018 and January 28, 2018 , respectively. The fair value of the Company's Revolving Commitments (as defined in Note 9 ) is $97.0 million as of both July 29, 2018 and January 28, 2018 , respectively. These 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 non-marketable 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 equity investments during the first six months of fiscal year 2019 . |
Inventories
Inventories | 6 Months Ended |
Jul. 29, 2018 | |
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) July 29, 2018 January 28, 2018 Raw materials $ 2,376 $ 1,651 Work in progress 38,076 46,884 Finished goods 18,441 22,532 Inventories $ 58,893 $ 71,067 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jul. 29, 2018 | |
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 Wireless and Sensing Protection Total Balance at January 28, 2018 $ 274,085 $ 67,812 $ — $ 341,897 Additions — — 4,834 4,834 Balance at July 29, 2018 $ 274,085 $ 67,812 $ 4,834 $ 346,731 As a result of the realignment of its operating segments, during the first quarter of fiscal year 2019, the Company combined the Wireless and Sensing and the Power and High-Reliability reporting units (see Note 12 ). Goodwill of $49.4 million related to the Power and High-Reliability reporting unit which was previously a separate reporting unit is now included in the Wireless and Sensing reporting unit’s goodwill balance. The reporting units are the same as the operating segments which are part of a single reportable segment. The difference between the fair value and the carrying amount of these reporting units is one of several factors the Company will consider before reaching its conclusion about whether to perform the first step of the goodwill impairment test. Purchased Intangibles – The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions, which continue to be amortized: July 29, 2018 January 28, 2018 (in thousands) Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core technologies 5-8 years $ 164,930 $ (126,203 ) $ 38,727 $ 164,930 $ (115,628 ) $ 49,302 Customer relationships 3-10 years 34,031 (28,292 ) 5,739 34,031 (25,426 ) 8,605 Total finite-lived intangible assets $ 198,961 $ (154,495 ) $ 44,466 $ 198,961 $ (141,054 ) $ 57,907 Amortization expenses recorded in the Statements of Income for each period were as follows: Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Core technologies $ 5,047 $ 5,464 $ 10,575 $ 10,650 Customer relationships 1,433 1,211 2,866 2,311 Total amortization expense $ 6,480 $ 6,675 $ 13,441 $ 12,961 The following table sets forth the Company’s indefinite-lived intangible assets resulting from additions to IPR&D: (in thousands) Net Carrying Value Value at January 28, 2018 $ 2,300 In-process research and development through acquisitions — Value at July 29, 2018 $ 2,300 The Company reviews indefinite-lived intangible assets for impairment during the fourth quarter, each year, by comparing the carrying amount of the asset to the future discounted cash flows that asset is expected to generate. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jul. 29, 2018 | |
Debt Instruments [Abstract] | |
Long-Term Debt | Long-term debt and the current period interest rates were as follows: Balance as of (in thousands) July 29, 2018 January 28, 2018 Term loan $ 123,750 $ 131,250 Revolving credit facility 97,000 97,000 Total debt 220,750 228,250 Current portion (17,307 ) (15,410 ) Total long-term debt 203,443 212,840 Debt issuance costs (1,457 ) (1,726 ) Total long-term debt, net of debt issuance costs $ 201,986 $ 211,114 Weighted-average interest rate 3.73 % 3.19 % On November 15, 2016, the Company, with certain of its domestic subsidiaries or guarantors, entered into an amended and restated credit facility with the lenders party thereto and HSBC Bank USA, National Association, as administrative agent, swing line lender and letter of credit issuer, consisting of a $150.0 million senior secured term loan (“Term Loan”) and a $250.0 million senior secured revolving credit facility (“Revolving Credit Facility”), collectively, the “credit facilities”. The Credit Facilities are scheduled to mature on November 12, 2021. The outstanding principal balance of the Term Loans is subject to repayment in quarterly installments. No amortization is required with respect to the Revolving Credit Facility. As of July 29, 2018, we were in compliance with all financial covenants required under the credit facilities. Scheduled maturities of current and long-term Term Loans are as follows: (in thousands) Fiscal Year Ending: 2019 $ 8,438 2020 18,750 2021 19,687 2022 76,875 Total Term Loans $ 123,750 As of July 29, 2018, we had $153.0 million of unused borrowing capacity under the Revolving Credit Facility. As of July 29, 2018, there were no amounts outstanding under the letters of credit, swing line loans and alternative currency sub-facilities. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate differs from the statutory federal income tax rate of 21% primarily due to regional mix of income and a partial release of the valuation allowance in the U.S. The valuation allowance was released in the first quarter of fiscal year 2019 as a result of the Company obtaining the information necessary to evaluate the impact of the Global Intangible Low-Taxed Income (“GILTI”) provisions, enacted as part of the Tax Cuts and Jobs Act (“Tax Act”) on December 22, 2017. This item was left open under Staff Accounting Bulletin 118 (“SAB 118”) in the financial statements for the year ended January 28, 2018 and the Company has now made a reasonable estimate based on the most current information available. The Tax Act made significant changes to U.S. income tax laws, including transitioning from a worldwide tax system to a territorial tax system. This change in the U.S. international tax system included the introduction of several new tax regimes that are effective as of January 1, 2018, including the GILTI provisions. The GILTI provisions effectively tax the foreign earnings of U.S. multinational companies at 10.5% , half the current corporate tax rate. During the three months ended April 29, 2018, the Company finalized its analysis regarding the interplay of the foreign tax credits associated with this income, which are allowed against the U.S. tax liability generated as a result of the GILTI provision, and the potential impact on the related valuation allowance. As a result, the Company recorded a tax benefit of $15.8 million during the first quarter of fiscal year 2019 related to the reduction of the valuation allowance on certain U.S. deferred tax assets generated prior to fiscal year 2019. While management believes the provisional amounts recorded during the six months ended July 29, 2018 and the year ended January 28, 2018 represent reasonable estimates of the ultimate impact U.S. tax reform will have on the Company's consolidated financial statements, it is possible the Company may continue to materially adjust these amounts for related administrative guidance, notices, implementation regulations, potential legislative amendments and interpretations as the Tax Act continues to evolve. These adjustments could have an impact on the Company's Balance Sheets and Statements of Income. 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 the federal impact of state items) is as follows: (in thousands) Balance at January 28, 2018 $ 16,059 Additions based on tax positions related to the current year 855 Balance as of July 29, 2018 $ 16,914 Included in the balance of gross unrecognized tax benefits at July 29, 2018 and January 28, 2018 , are $4.7 million and $3.9 million , respectively, of net tax benefits (after federal impact of state items), that, if recognized, would impact the effective tax rate, prior to consideration of any required valuation allowance. The liability for UTP is reflected within the Balance Sheets as follows: (in thousands) July 29, 2018 January 28, 2018 Deferred tax assets - non-current $ 12,236 $ 12,135 Other long-term liabilities 4,678 3,924 Total accrued taxes $ 16,914 $ 16,059 The Company’s policy is to include net interest and penalties related to unrecognized tax benefits within the "Provision for taxes" in the Statements of Income. Tax years prior to 2013 (the Company’s fiscal year 2014) are generally not subject to examination by the U.S. Internal Revenue Service ("IRS") except for items involving tax attributes that have been carried forward to tax years whose statute of limitations remains open. For state returns, the Company is generally not subject to income tax examinations for calendar years prior to 2012 (the Company’s fiscal year 2013). The Company has a significant tax presence in Switzerland for which Swiss tax filings have been examined through fiscal year 2017. The Company is also subject to routine examinations by various foreign tax jurisdictions in which it operates. The Company believes that adequate provisions have been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with the Company's expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. The Company’s regional income from continuing operations before taxes and equity in net losses of equity method investments is as follows: Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Domestic $ (3,524 ) $ (4,863 ) $ (11,224 ) $ (9,030 ) Foreign 34,802 21,522 37,405 41,267 Total $ 31,278 $ 16,659 $ 26,181 $ 32,237 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies In accordance with accounting standards regarding loss contingencies, the Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. The Company also discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its consolidated 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. The Company evaluates, at least quarterly, developments in its legal matters that could affect the amount of liability that has been previously accrued, and makes adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount. The Company may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (i) if the damages sought are indeterminate; (ii) if the proceedings are in early stages, (iii) if there is uncertainty as to the outcome of pending appeals, motions or settlements, (iv) if there are significant factual issues to be determined or resolved, and (v) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any. Because the outcomes of litigation and other legal matters are inherently unpredictable, the Company’s evaluation of legal matters or proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. While the consequences of certain unresolved matters and proceedings are not presently determinable, and an estimate of the probable and reasonably possible loss or range of loss in excess of amounts accrued for such proceedings cannot be reasonably made, an adverse outcome from such proceedings could have a material adverse effect on the Company’s earnings in any given reporting period. However, in the opinion of management, after consulting with legal counsel, 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 consolidated financial statements, as a whole. However, legal matters are inherently unpredictable and subject to significant uncertainties, some of which are beyond the Company’s control. As such, even though the Company intends to vigorously defend itself with respect to its legal matters, there can be no assurance that the final outcome of these matters will not materially and adversely affect the Company’s business, financial condition, operating results, or cash flows. From time to time, 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, 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 consolidated financial statements, as a whole. The Company’s currently pending legal matters of note are discussed below: Environmental Matters The Company vacated a former facility in Newbury Park, California in 2002, but continues to address groundwater and soil contamination at the site. The Company’s efforts to address site conditions have been at the direction of the Los Angeles Regional Water Quality Control Board (“RWQCB”). In October 2013, an order was issued including a scope of proposed additional site work, monitoring, and proposed remediation activities. The Company filed appeals of the October 2013 order seeking reconsideration by the RWQCB and review by the State Water Resources Control Board ("SWRCB") of the removal of two other potentially responsible parties, and seeking clarification of certain other factual findings. In April 2015, the RWQCB denied the Company’s request to name the two other potentially responsible parties to the order, but did correct certain findings of fact identified by the Company in its petition for reconsideration. The SWRCB has not yet ruled on the Company’s petition for review of the RWQCB’s action as the petition was filed with a request it be held in abeyance. The Company has been complying with RWQCB orders and direction, and is implementing an approved remedial action plan (prepared by an environmental firm retained by the Company) addressing the cleanup of soil, groundwater, and soil vapor at the site. 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 latest determinations by the RWQCB and the most recent actions taken pursuant to the remedial action plan, the Company continues to estimate the range of probable loss between $3.6 million and $7.2 million . Given the 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 has recorded the minimum amount of probable loss. These estimates could change as a result of changes in planned remedial actions, further actions from the regulatory agency, remediation technology, and other factors. Indemnification The Company has entered into agreements with its current and former executives 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. 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 or additional warranty terms, including 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. Earn-out Liability Pursuant to the terms of the amended earn-out arrangement ("Cycleo Earn-out") with the former shareholders of Cycleo SAS ("Cycleo Earn-out Beneficiaries"), which the Company acquired on March 7, 2012, 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 over a defined period ("Cycleo Defined Earn-out Period"). The Cycleo Defined Earn-out Period covers the period April 27, 2015 to April 26, 2020. For certain of the Cycleo 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. The Company has recorded a liability for the Cycleo Earn-out of $6.1 million and $5.5 million as of July 29, 2018 and January 28, 2018 , respectively, of which $2.2 million is expected to be paid within twelve months. Pursuant to the terms of the AptoVision Earn-out ("AptoVision Earn-out") with the former shareholders of AptoVision ("AptoVision Earn-out Beneficiaries"), which the Company acquired on July 1, 2017, the Company potentially may make payments totaling up to approximately $47.0 million based on the achievement of a combination of certain net revenue, adjusted earnings and product development targets measured from the acquisition date through July 26, 2020. A summary of earn-out liabilities, included in "Accrued liabilities" and "Other long-term liabilities", by classification follows: Balance at July 29, 2018 Balance at January 28, 2018 (in thousands) Cycleo AptoVision Total Cycleo AptoVision Total Compensation expense $ 5,432 $ — $ 5,432 $ 4,408 $ — $ 4,408 Not conditional upon continued employment 668 20,100 20,768 668 21,000 21,668 Interest expense — — — 444 — 444 Total liability $ 6,100 $ 20,100 $ 26,200 $ 5,520 $ 21,000 $ 26,520 Amount expected to be settled within twelve months $ 2,187 $ 9,500 $ 11,687 |
Segment Information
Segment Information | 6 Months Ended |
Jul. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Segment Information The Company’s CEO functions as the CODM. The Company’s CODM makes operating decisions and assesses performance based on these operating segments. As part of a realignment strategy, during the first quarter of fiscal year 2019, the Company restructured and combined the Power and High Reliability operating segment with the Wireless and Sensing operating segment to better align resources with our LoRa® initiatives. This resulted in the Company having three operating segments compared to previously having four operating segments. The three operating segments: Protection, Signal Integrity, and Wireless and Sensing, 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’s assets are commingled among the various operating segments 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. Net sales by segment are as follows: Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Semiconductor Products Group $ 163,211 $ 153,127 $ 293,640 $ 296,929 Total $ 163,211 $ 153,127 $ 293,640 $ 296,929 Income by segment and reconciliation to consolidated operating income: Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Semiconductor Products Group $ 47,110 $ 42,856 $ 87,922 $ 82,078 Operating income by segment 47,110 42,856 87,922 82,078 Items to reconcile segment operating income to consolidated income before taxes Share-based compensation 13,966 15,525 49,481 28,810 Intangible amortization 6,480 6,675 13,441 12,961 Changes in the fair value of contingent earn-out obligations (900 ) — (900 ) — Litigation cost net of recoveries (6,632 ) — (6,632 ) — Other non-segment related expenses 1,260 1,764 2,693 2,969 Amortization of fair value adjustments related to acquired property, plant and equipment — — — 190 Interest expense, net 2,200 2,029 4,390 4,075 Non-operating expense, net (542 ) 204 (732 ) 836 Income before taxes $ 31,278 $ 16,659 $ 26,181 $ 32,237 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: Three Months Ended Six Months Ended (in thousands, except percentages) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Signal Integrity $ 68,802 42 % $ 66,666 44 % $ 134,401 45 % $ 134,724 46 % Protection 45,999 28 % 45,058 29 % 86,791 30 % 87,307 29 % Wireless and Sensing 48,410 30 % 44,600 29 % 93,949 32 % 83,375 28 % Other: Warrant Shares (1) — — % (3,197 ) (2 )% (21,501 ) (7 )% (8,477 ) (3 )% Total net sales $ 163,211 100 % $ 153,127 100 % $ 293,640 100 % $ 296,929 100 % (1) The cost of the Warrant granted was recognized as an offset to net sales over the respective performance period. The Warrant is now fully-vested and exercisable for a total of 869,565 shares, with no additional costs to be recognized in future periods following the first quarter of fiscal year 2019. Information by Sales Channel Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Distributor $ 109,844 $ 100,121 $ 212,317 $ 194,643 Direct 53,367 56,203 102,824 110,763 Other: Warrant Shares — (3,197 ) (21,501 ) (8,477 ) Total net sales $ 163,211 $ 153,127 $ 293,640 $ 296,929 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: Three Months Ended Six Months Ended July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Asia-Pacific 75 % 73 % 72 % 75 % North America 19 % 21 % 28 % 21 % Europe 6 % 8 % 7 % 7 % Other: Warrant Shares — % (2 )% (7 )% (3 )% 100 % 100 % 100 % 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 presented: Three Months Ended Six Months Ended (percentage of total sales) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 China (including Hong Kong) 56 % 49 % 53 % 50 % United States 10 % 9 % 12 % 9 % |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jul. 29, 2018 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program Stock Repurchase Program The Company maintains a stock repurchase program that was initially approved by its Board of Directors in March 2008. The stock repurchase program does not have an expiration date and the Company’s Board of Directors has authorized expansion of the program over the years. The following table summarizes activity under the program for the presented periods: Three Months Ended Six Months Ended July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 (in thousands, except number of shares) Shares Value Shares Value Shares Value Shares Value Shares repurchased under the stock repurchase program 495,609 $ 24,413 12,304 $ 428 1,140,753 $ 49,738 312,304 $ 10,389 Total treasury shares required 495,609 $ 24,413 12,304 $ 428 1,140,753 $ 49,738 312,304 $ 10,389 On May 24, 2018, the Company's Board of Directors authorized the expansion of the stock repurchase program by $250.0 million . As of July 29, 2018 , the Company had repurchased $201.1 million in shares of its common stock under the program since inception and the remaining authorization under the program was $247.3 million . Under the program, the Company may repurchase its common stock at any time or from time to time, without prior notice, subject to market conditions and other considerations. The Company’s repurchases may be made through Rule 10b5-1 and/or Rule 10b-18 or other trading plans, open market purchases, privately negotiated transactions, block purchases or other transactions. The Company intends to fund repurchases under the program from cash on hand. The Company has no obligation to repurchase any shares under the program and may suspend or discontinue it at any time. |
Restructuring
Restructuring | 6 Months Ended |
Jul. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring From time to time, the Company takes steps to realign the business to focus on high-growth areas, provide customer value and make the Company more efficient. As a result, the Company has re-aligned resources and infrastructure, which resulted in restructuring expense of $0.3 million for the six months ended July 29, 2018. Restructuring related liabilities are included in "Accrued liabilities" within the Balance Sheets as of July 29, 2018 and January 28, 2018 , respectively. Restructuring charges are presented in "Selling, general and administrative" within the Statements of Income. Activity under the restructuring plans is summarized in the following table: (in thousands) One-time employee termination benefits Contract commitments Total Balance at January 28, 2018 $ 4,063 $ 686 $ 4,749 Charges 346 — 346 Cash payments and adjustments (3,342 ) (192 ) (3,534 ) Balance at July 29, 2018 $ 1,067 $ 494 $ 1,561 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jul. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivatives and Hedging Activities The Company is exposed to certain risk arising from both its business operations and economic conditions and principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company, on a routine basis and in the normal course of business, experiences expenses denominated in Swiss Franc ("CHF"), Canadian Dollar ("CAD") and Great British Pound ("GBP"). Such expenses expose the Company to exchange rate fluctuations between these foreign currencies and the U.S. Dollar ("USD"). The Company uses derivative financial instruments in the form of forward contracts to mitigate risk associated with adverse movements in these foreign currency exchange rates on a portion of foreign denominated expenses expected to be realized during the current and following fiscal year. Currency forward contracts involve fixing the exchange rate for delivery of a specified amount of foreign currency on a specified date. The Company’s accounting treatment for these instruments is based on whether or not the instruments are designated as a hedging instrument. The Company is currently applying hedge accounting to all foreign currency derivatives and has designated these hedges as cash flow hedges. At July 29, 2018 , the Company had the following outstanding foreign exchange contracts: (in thousands) Foreign Exchange Contracts Number of Instruments Sell Notional Value Buy Notional Value Sell USD/Buy CAD Forward Contract 6 $ 8,560 C$ 11,000 Total 6 These contracts met the criteria for cash flow hedges and the unrealized gains or losses, after tax, are recorded as a component of "Accumulated other comprehensive loss" within the Balance Sheet. The effective portions of cash flow hedges are recorded in accumulated other comprehensive income or loss ("AOCI") until the hedged item is recognized in SG&A expense within the Statements of Income when the underlying hedged expense is recognized. Any ineffective portions of cash flow hedges are recorded in "Non-operating expense, net" within the Company’s Statements of Income. The Company presents its derivative assets and liabilities at their gross fair values on the Balance Sheets. The Company had no outstanding foreign exchange contracts at January 28, 2018 . The table below summarizes the carrying values of derivative instruments as of July 29, 2018 : Carrying Values of Derivative Instruments as of July 29, 2018 (in thousands) Fair Value - Assets (2) Fair Value - (Liabilities) (2) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts (1) $ — $ (126 ) $ (126 ) Total derivatives $ — $ (126 ) $ (126 ) (1) Assets are included in "Other current assets" and liabilities are included in "Accrued liabilities" within the Balance Sheets. (2) The fair values of the foreign exchange forward contracts are valued using Level 2 inputs. Please refer to Note 6 . The following table summarizes the amount of income recognized from derivative instruments for the three months ended July 29, 2018 and July 30, 2017 as well as the line items within the accompanying Statements of Income where the results are recorded for cash flow hedges: Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain or Loss into Income (Effective Portion) Amount of Gain Reclassified from AOCI into Income (Effective Portion) Location of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Three Months Ended Three Months Ended Three Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Sell USD/Buy CAD Forward Contract $ (223 ) $ 1,038 SG&A $ 34 $ (90 ) SG&A $ — $ (3 ) Sell USD/Buy GBP Forward Contract — 71 SG&A — (161 ) SG&A — — $ (223 ) $ 1,109 $ 34 $ (251 ) $ — $ (3 ) The following table summarizes the amount of income recognized from derivative instruments for the six months ended July 29, 2018 and July 30, 2017 as well as the line items within the accompanying Statements of Income where the results are recorded for cash flow hedges: Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain or Loss into Income (Effective Portion) Amount of Gain Reclassified from AOCI into Income (Effective Portion) Location of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Six Months Ended Six Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Sell USD/Buy CAD Forward Contract $ (158 ) $ 1,003 SG&A $ 33 $ (90 ) SG&A $ — $ (2 ) Sell USD/Buy GBP Forward Contract — 305 SG&A — (220 ) SG&A — — $ (158 ) $ 1,308 $ 33 $ (310 ) $ — $ (2 ) The estimated net amount of the existing losses that are reported in accumulated other comprehensive income as of July 29, 2018 that is expected to be reclassified into earnings within the next twelve months was $0.2 million . |
Organization and Basis of Pre22
Organization and Basis of Presentation (Policy) | 6 Months Ended |
Jul. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [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. The other quarters generally end on the last Sunday of April, July and October. All quarters consist of 13 weeks except for one 14 -week period in the fourth quarter of 53 -week years. The second quarter of fiscal years 2019 and 2018 each consisted of 13 weeks. |
Principles of Consolidation | Principles of Consolidation The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company, in accordance with accounting principles generally accepted in the United States ("GAAP") and on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended January 28, 2018 . In the opinion of the Company, these interim unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, the financial position of the Company for the interim periods presented. All intercompany balances have been eliminated. Certain information and footnote disclosures normally included in annual consolidated financial statements have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Because the interim unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for a complete set of consolidated financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended January 28, 2018. The results reported in these interim unaudited condensed consolidated financial statements should not be regarded as indicative of results that may be expected for any subsequent period or for the entire year. The Company’s interim unaudited condensed consolidated statements of income are referred to herein as the "Statements of Income." The Company’s interim unaudited condensed consolidated balance sheets are referred to herein as the "Balance Sheets" and interim unaudited condensed consolidated statements of cash flows as the "Statements of Cash Flows. |
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 12 for further discussion). Prior to the first quarter of fiscal year 2019, the Company had four operating segments. Beginning with the first quarter of fiscal year 2019, the Company identified three operating segments that aggregate into one reportable segment, the Semiconductor Products Group. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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. |
Recent Accounting Pronouncements | Recent Accounting Standards Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification ("ASC") 606), which requires an entity to recognize revenue from the transfer of control 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. The Company adopted the standard, effective January 29, 2018, using the modified retrospective transition method which resulted in an adjustment to retained earnings for the cumulative effect of applying the standard to all contracts not completed as of the adoption date. The primary change associated with the adoption relates to the Company’s sales to distributors with return or price adjustment rights where the Company will no longer defer revenue until the resale by the distributor to the end customer, but rather, will record revenue at the time control transfers to the distributor. The Company estimated the effects of returns and allowances provided to these distributors. Upon adoption, including the effect of income taxes, opening retained earnings as of January 29, 2018 increased by $11.1 million net, as a result of these changes. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Asset Transfers Other Than Inventory (Topic 740). This accounting standard update is aimed at recognizing the income tax consequences of intra-entity transfers of assets other than inventory when they occur. This removes the exception to postpone the recognition of income tax consequences of intra-entity transfers until the asset has been sold to an outside party. In the first quarter of 2019, the Company adopted ASU 2016-16 using a modified retrospective transition method, resulting in a $1.8 million decrease in retained earnings, a $3.7 million net increase in deferred income tax assets, and a $5.5 million decrease in pre-paid taxes. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230). The primary purpose of this ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. Accounting Guidance Issued but Not Adopted as of July 29, 2018 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will require that substantially all leases be recognized by lessees on their balance sheets as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. Public entities are required to apply the amendments for annual periods beginning after December 15, 2018 and for interim periods within those annual periods. The Company will adopt this update beginning in the first quarter of fiscal year 2020 utilizing the modified retrospective transition method by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to elect certain practical expedients permitted under the transition guidance within the standard. |
Earnings Per Share | Basic earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the reporting period. Diluted earnings per common share incorporates the incremental shares issuable, calculated using the treasury stock method, upon the assumed exercise of non-qualified stock options, the vesting of restricted stock units and performance unit awards if the conditions have been met. |
Share-based Compensation, Warrant | The Warrant was issued by the Company to Comcast in connection with an agreement between the parties regarding the intended trial deployment by Comcast of a low-power wide-area network ("LPWAN") in the United States, based on the Company’s LoRa® devices and wireless radio frequency technology. The Warrant was accounted for as equity and the cost was recognized as an offset to net sales over the respective performance period. The Warrant consisted of five performance tranches. The cost associated with each tranche had been recognized based on the fair value at each reporting date until vesting which was the measurement date. |
Share-based Compensation, Performance-based RSUs | The Company grants performance-based restricted stock units to select employees. The performance-based restricted stock units are valued as of the measurement date and expense is recognized on a straight line basis for the awards expected to vest based on the probability of attainment of the performance condition for each separately vesting portion of the award. |
Fair Value of Financial Instruments | 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. 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 including money market deposits, net receivables, certain other assets, accounts payable, 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. As of July 29, 2018 and January 28, 2018 , the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted. The fair values of the foreign exchange forward contracts are valued using Level 2 inputs. Foreign currency forward contracts are valued using readily available foreign currency forward and interest rate curves. The fair value of each contract is determined by comparing the contract rate to the forward rate and discounting to the present value. Contracts in a gain position are recorded in the Balance Sheets within the caption "Other current assets" and the value of contracts in a loss position are recorded within the caption "Accrued liabilities" within the Balance Sheets. Please see Note 15 for further discussion of the Company’s derivative instruments. The convertible debt is valued using probability weighted cash flows (Level 3 inputs). The AptoVision Earn-out liability is valued utilizing estimates of annual revenue, adjusted earnings and product development targets (Level 3 inputs) through July 2020. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Cycleo Earn-out liability (see Note 11 ) is valued utilizing estimates of annual revenue and operating income (Level 3 inputs) through April 2020. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Company measures contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. The Company uses a Monte Carlo valuation method as a valuation technique to determine the value of the earn-out liability. The significant unobservable inputs used in the fair value measurements are revenue projections over the earn-out period, and the probability outcome percentages assigned to each scenario. Significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability, with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liabilities will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. For the Cycleo Earn-out and AptoVision Earn-out, these companies have business profiles comparable to a start-up company. Accordingly, their respective revenue projections are subject to significant revisions. This characteristic can result in volatile changes to the measurement of fair value for a given earn-out. The Company reviews and re-assesses the estimated fair value of contingent consideration on a recurring basis, and the updated fair value could differ materially from the previous estimates. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. |
Inventory | Inventories, consisting of material, material overhead, labor, and manufacturing overhead, are stated at the lower of cost (first-in, first-out) or market |
Interest and Penalties on Unrecognized Tax Benefits | The Company’s policy is to include net interest and penalties related to unrecognized tax benefits within the "Provision for taxes" in the Statements of Income. |
Commitments and Contingencies | In accordance with accounting standards regarding loss contingencies, the Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. The Company also discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its consolidated 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. The Company evaluates, at least quarterly, developments in its legal matters that could affect the amount of liability that has been previously accrued, and makes adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount. The Company may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (i) if the damages sought are indeterminate; (ii) if the proceedings are in early stages, (iii) if there is uncertainty as to the outcome of pending appeals, motions or settlements, (iv) if there are significant factual issues to be determined or resolved, and (v) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any. Because the outcomes of litigation and other legal matters are inherently unpredictable, the Company’s evaluation of legal matters or proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. While the consequences of certain unresolved matters and proceedings are not presently determinable, and an estimate of the probable and reasonably possible loss or range of loss in excess of amounts accrued for such proceedings cannot be reasonably made, an adverse outcome from such proceedings could have a material adverse effect on the Company’s earnings in any given reporting period. However, in the opinion of management, after consulting with legal counsel, 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 consolidated financial statements, as a whole. However, legal matters are inherently unpredictable and subject to significant uncertainties, some of which are beyond the Company’s control. |
Product Warranties | 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 or additional warranty terms, including 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. |
Derivatives | The Company’s accounting treatment for these instruments is based on whether or not the instruments are designated as a hedging instrument. The Company is currently applying hedge accounting to all foreign currency derivatives and has designated these hedges as cash flow hedges. These contracts met the criteria for cash flow hedges and the unrealized gains or losses, after tax, are recorded as a component of "Accumulated other comprehensive loss" within the Balance Sheet. The effective portions of cash flow hedges are recorded in accumulated other comprehensive income or loss ("AOCI") until the hedged item is recognized in SG&A expense within the Statements of Income when the underlying hedged expense is recognized. Any ineffective portions of cash flow hedges are recorded in "Non-operating expense, net" within the Company’s Statements of Income. The Company presents its derivative assets and liabilities at their gross fair values on the Balance Sheets. |
Revenue | The Company derives its revenue primarily from the sale of semiconductor products into various end markets. Revenue is recognized when control of these products is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for these products. Control is generally transferred when products are shipped and, to a lesser extent, when the products are delivered. Recovery of costs associated with product design and engineering services are recognized during the period in which services are performed and are 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. The Company determines revenue recognition through the following five steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company’s revenue contracts generally represent a single performance obligation to sell its products to trade customers. Net sales reflect the transaction prices for contracts, which include units shipped at selling prices reduced by variable consideration. Determination of variable consideration requires judgment by the Company. Variable consideration includes expected sales returns and other price adjustments. Variable consideration is estimated using the expected value method considering all reasonably available information, including the Company’s historical experience and its current expectations, and is reflected in the transaction price when sales are recorded. Sales returns are generally accepted at the Company’s discretion or from distributors with such rights. The Company’s contracts with trade customers do not have significant financing components or non-cash consideration. The Company records net sales excluding taxes collected on its sales to its trade customers. The Company provides an assurance type warranty which is typically not sold separately and does not represent a separate performance obligation. The Company’s payment terms are generally aligned with shipping terms. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following presents the amounts by which financial statement line items were affected in the current periods due to the adoption of ASC 606 as compared with the guidance that was in effect before the change: Three Months Ended Six Months Ended Statements of Income July 29, 2018 July 29, 2018 (in thousands, except per share amounts) Increase/(decrease) Increase/(decrease) Net sales $ 1,884 $ 6,346 Cost of sales $ 428 $ 1,444 Provision for taxes $ 306 $ 1,030 Net income $ 1,150 $ 3,873 Earnings per share: Basic 0.02 0.06 Diluted 0.02 0.06 Balance Sheets July 29, 2018 (in thousands) Increase/(decrease) Deferred revenue (17,306 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The computation of basic and diluted earnings per common share was as follows: Three Months Ended Six Months Ended (in thousands, except per share amounts) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Net income $ 25,169 $ 12,564 $ 37,551 $ 24,385 Weighted average common shares outstanding - basic 66,063 65,763 66,194 65,801 Dilutive effect of stock options and restricted stock units 2,817 1,707 2,234 1,620 Weighted average common shares outstanding - diluted 68,880 67,470 68,428 67,421 Basic earnings per common share $ 0.38 $ 0.19 $ 0.57 $ 0.37 Diluted earnings per common share $ 0.37 $ 0.19 $ 0.55 $ 0.36 Anti-dilutive shares not included in the above calculations 202 254 364 385 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Share-based Compensation [Abstract] | |
Allocation Of Stock-Based Compensation | The following table summarizes pre-tax share-based compensation included in the Statements of Income for the three and six months ended July 29, 2018 and July 30, 2017 . Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Revenue offset $ — $ 3,197 $ 21,501 $ 8,477 Cost of sales 306 281 633 845 Selling, general and administrative 11,378 10,055 22,840 15,611 Product development and engineering 2,282 1,992 4,507 3,877 Share-based compensation $ 13,966 $ 15,525 $ 49,481 $ 28,810 Net change in share-based compensation capitalized into inventory $ — $ — $ — $ (414 ) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Investments [Abstract] | |
Summary Of Investments | The following table summarizes the Company’s available-for-sale securities: July 29, 2018 January 28, 2018 (in thousands) Market Value Adjusted Cost Gross Unrealized Gain Market Value Adjusted Cost Gross Unrealized Gain Convertible debt $ 2,605 $ 2,605 $ — $ 1,960 $ 1,960 $ — Total other assets $ 2,605 $ 2,605 $ — $ 1,960 $ 1,960 $ — |
Schedule Of Investments, Classified By Maturity Period | The following table summarizes the maturities of the Company’s available-for-sale securities: July 29, 2018 January 28, 2018 (in thousands) Market Value Adjusted Cost Market Value Adjusted Cost Within 1 year $ 2,000 $ 2,000 $ 1,960 $ 1,960 After 1 year through 5 years 605 605 — — Total investments $ 2,605 $ 2,605 $ 1,960 $ 1,960 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented within the Company's Balance Sheets as follows: Fair Value as of July 29, 2018 Fair Value as of January 28, 2018 (in thousands) Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Financial assets: Convertible debt $ 2,605 $ — $ — $ 2,605 $ 1,960 $ — $ — $ 1,960 Total financial assets $ 2,605 $ — $ — $ 2,605 $ 1,960 $ — $ — $ 1,960 Financial liabilities: AptoVision Earn-out $ 20,100 $ — $ — $ 20,100 $ 21,000 $ — $ — $ 21,000 Cycleo Earn-out 668 — — 668 668 — — 668 Derivative financial instruments 126 — 126 — — — — — Total financial liabilities $ 20,894 $ — $ 126 $ 20,768 $ 21,668 $ — $ — $ 21,668 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | A reconciliation of the change in the earn-out liability during the six months ended July 29, 2018 is as follows: (in thousands) AptoVision Cycleo Total Balance at January 28, 2018 $ 21,000 $ 668 $ 21,668 Changes in the fair value of contingent earn-out obligations (900 ) — (900 ) Balance as of July 29, 2018 $ 20,100 $ 668 $ 20,768 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
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) July 29, 2018 January 28, 2018 Raw materials $ 2,376 $ 1,651 Work in progress 38,076 46,884 Finished goods 18,441 22,532 Inventories $ 58,893 $ 71,067 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amounts of Goodwill | Changes in the carrying amount of goodwill by applicable reporting unit were as follows: (in thousands) Signal Integrity Wireless and Sensing Protection Total Balance at January 28, 2018 $ 274,085 $ 67,812 $ — $ 341,897 Additions — — 4,834 4,834 Balance at July 29, 2018 $ 274,085 $ 67,812 $ 4,834 $ 346,731 |
Schedule of Finite-lived Intangible Assets Acquired | The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions, which continue to be amortized: July 29, 2018 January 28, 2018 (in thousands) Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core technologies 5-8 years $ 164,930 $ (126,203 ) $ 38,727 $ 164,930 $ (115,628 ) $ 49,302 Customer relationships 3-10 years 34,031 (28,292 ) 5,739 34,031 (25,426 ) 8,605 Total finite-lived intangible assets $ 198,961 $ (154,495 ) $ 44,466 $ 198,961 $ (141,054 ) $ 57,907 Amortization expenses recorded in the Statements of Income for each period were as follows: Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Core technologies $ 5,047 $ 5,464 $ 10,575 $ 10,650 Customer relationships 1,433 1,211 2,866 2,311 Total amortization expense $ 6,480 $ 6,675 $ 13,441 $ 12,961 |
Schedule of Indefinite-Lived Intangible Assets | The following table sets forth the Company’s indefinite-lived intangible assets resulting from additions to IPR&D: (in thousands) Net Carrying Value Value at January 28, 2018 $ 2,300 In-process research and development through acquisitions — Value at July 29, 2018 $ 2,300 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt | Long-term debt and the current period interest rates were as follows: Balance as of (in thousands) July 29, 2018 January 28, 2018 Term loan $ 123,750 $ 131,250 Revolving credit facility 97,000 97,000 Total debt 220,750 228,250 Current portion (17,307 ) (15,410 ) Total long-term debt 203,443 212,840 Debt issuance costs (1,457 ) (1,726 ) Total long-term debt, net of debt issuance costs $ 201,986 $ 211,114 Weighted-average interest rate 3.73 % 3.19 % |
Schedule Maturities of Current and Long-term Term Loans | Scheduled maturities of current and long-term Term Loans are as follows: (in thousands) Fiscal Year Ending: 2019 $ 8,438 2020 18,750 2021 19,687 2022 76,875 Total Term Loans $ 123,750 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (before the federal impact of state items) is as follows: (in thousands) Balance at January 28, 2018 $ 16,059 Additions based on tax positions related to the current year 855 Balance as of July 29, 2018 $ 16,914 |
Liability For Uncertain Tax Positions | The liability for UTP is reflected within the Balance Sheets as follows: (in thousands) July 29, 2018 January 28, 2018 Deferred tax assets - non-current $ 12,236 $ 12,135 Other long-term liabilities 4,678 3,924 Total accrued taxes $ 16,914 $ 16,059 |
Regional Income (Loss) From Continuing Operations Before Income Taxes | The Company’s regional income from continuing operations before taxes and equity in net losses of equity method investments is as follows: Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Domestic $ (3,524 ) $ (4,863 ) $ (11,224 ) $ (9,030 ) Foreign 34,802 21,522 37,405 41,267 Total $ 31,278 $ 16,659 $ 26,181 $ 32,237 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Earn-out Liabilities by Classification | A summary of earn-out liabilities, included in "Accrued liabilities" and "Other long-term liabilities", by classification follows: Balance at July 29, 2018 Balance at January 28, 2018 (in thousands) Cycleo AptoVision Total Cycleo AptoVision Total Compensation expense $ 5,432 $ — $ 5,432 $ 4,408 $ — $ 4,408 Not conditional upon continued employment 668 20,100 20,768 668 21,000 21,668 Interest expense — — — 444 — 444 Total liability $ 6,100 $ 20,100 $ 26,200 $ 5,520 $ 21,000 $ 26,520 Amount expected to be settled within twelve months $ 2,187 $ 9,500 $ 11,687 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Segment Reporting Information [Line Items] | |
Net Sales by Segment | Net sales by segment are as follows: Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Semiconductor Products Group $ 163,211 $ 153,127 $ 293,640 $ 296,929 Total $ 163,211 $ 153,127 $ 293,640 $ 296,929 |
Income by Segment and Reconciliation to Consolidated Operating Income | Income by segment and reconciliation to consolidated operating income: Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Semiconductor Products Group $ 47,110 $ 42,856 $ 87,922 $ 82,078 Operating income by segment 47,110 42,856 87,922 82,078 Items to reconcile segment operating income to consolidated income before taxes Share-based compensation 13,966 15,525 49,481 28,810 Intangible amortization 6,480 6,675 13,441 12,961 Changes in the fair value of contingent earn-out obligations (900 ) — (900 ) — Litigation cost net of recoveries (6,632 ) — (6,632 ) — Other non-segment related expenses 1,260 1,764 2,693 2,969 Amortization of fair value adjustments related to acquired property, plant and equipment — — — 190 Interest expense, net 2,200 2,029 4,390 4,075 Non-operating expense, net (542 ) 204 (732 ) 836 Income before taxes $ 31,278 $ 16,659 $ 26,181 $ 32,237 |
Net Sales Activity By Product Line | The table below provides net sales activity by product line on a comparative basis: Three Months Ended Six Months Ended (in thousands, except percentages) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Signal Integrity $ 68,802 42 % $ 66,666 44 % $ 134,401 45 % $ 134,724 46 % Protection 45,999 28 % 45,058 29 % 86,791 30 % 87,307 29 % Wireless and Sensing 48,410 30 % 44,600 29 % 93,949 32 % 83,375 28 % Other: Warrant Shares (1) — — % (3,197 ) (2 )% (21,501 ) (7 )% (8,477 ) (3 )% Total net sales $ 163,211 100 % $ 153,127 100 % $ 293,640 100 % $ 296,929 100 % |
Schedule of Revenue from External Customers by Sales Channel | Three Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Distributor $ 109,844 $ 100,121 $ 212,317 $ 194,643 Direct 53,367 56,203 102,824 110,763 Other: Warrant Shares — (3,197 ) (21,501 ) (8,477 ) Total net sales $ 163,211 $ 153,127 $ 293,640 $ 296,929 |
Net Sales Activity By Geographic Region | Net sales activity by geographic region is as follows: Three Months Ended Six Months Ended July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Asia-Pacific 75 % 73 % 72 % 75 % North America 19 % 21 % 28 % 21 % Europe 6 % 8 % 7 % 7 % Other: Warrant Shares — % (2 )% (7 )% (3 )% 100 % 100 % 100 % 100 % |
Summary Of Sales Activity To Countries That Represented Greater Than 10% Of Total Net Sales | The table below summarizes sales activity to countries that represented greater than 10% of total net sales for at least one of the periods presented: Three Months Ended Six Months Ended (percentage of total sales) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 China (including Hong Kong) 56 % 49 % 53 % 50 % United States 10 % 9 % 12 % 9 % |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Equity [Abstract] | |
Class of Treasury Stock | The following table summarizes activity under the program for the presented periods: Three Months Ended Six Months Ended July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 (in thousands, except number of shares) Shares Value Shares Value Shares Value Shares Value Shares repurchased under the stock repurchase program 495,609 $ 24,413 12,304 $ 428 1,140,753 $ 49,738 312,304 $ 10,389 Total treasury shares required 495,609 $ 24,413 12,304 $ 428 1,140,753 $ 49,738 312,304 $ 10,389 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Activity under the restructuring plans is summarized in the following table: (in thousands) One-time employee termination benefits Contract commitments Total Balance at January 28, 2018 $ 4,063 $ 686 $ 4,749 Charges 346 — 346 Cash payments and adjustments (3,342 ) (192 ) (3,534 ) Balance at July 29, 2018 $ 1,067 $ 494 $ 1,561 |
Derivatives and Hedging Activ36
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jul. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Open Foreign Currency Contracts | At July 29, 2018 , the Company had the following outstanding foreign exchange contracts: (in thousands) Foreign Exchange Contracts Number of Instruments Sell Notional Value Buy Notional Value Sell USD/Buy CAD Forward Contract 6 $ 8,560 C$ 11,000 Total 6 |
Summary of the Carrying Values of Derivative Instruments | The table below summarizes the carrying values of derivative instruments as of July 29, 2018 : Carrying Values of Derivative Instruments as of July 29, 2018 (in thousands) Fair Value - Assets (2) Fair Value - (Liabilities) (2) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts (1) $ — $ (126 ) $ (126 ) Total derivatives $ — $ (126 ) $ (126 ) (1) Assets are included in "Other current assets" and liabilities are included in "Accrued liabilities" within the Balance Sheets. (2) The fair values of the foreign exchange forward contracts are valued using Level 2 inputs. Please refer to Note 6 . |
Summary of Gain (Loss) Recognized From Derivative Instruments | The following table summarizes the amount of income recognized from derivative instruments for the six months ended July 29, 2018 and July 30, 2017 as well as the line items within the accompanying Statements of Income where the results are recorded for cash flow hedges: Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain or Loss into Income (Effective Portion) Amount of Gain Reclassified from AOCI into Income (Effective Portion) Location of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Six Months Ended Six Months Ended Six Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Sell USD/Buy CAD Forward Contract $ (158 ) $ 1,003 SG&A $ 33 $ (90 ) SG&A $ — $ (2 ) Sell USD/Buy GBP Forward Contract — 305 SG&A — (220 ) SG&A — — $ (158 ) $ 1,308 $ 33 $ (310 ) $ — $ (2 ) The following table summarizes the amount of income recognized from derivative instruments for the three months ended July 29, 2018 and July 30, 2017 as well as the line items within the accompanying Statements of Income where the results are recorded for cash flow hedges: Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain or Loss into Income (Effective Portion) Amount of Gain Reclassified from AOCI into Income (Effective Portion) Location of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Three Months Ended Three Months Ended Three Months Ended (in thousands) July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 July 29, 2018 July 30, 2017 Sell USD/Buy CAD Forward Contract $ (223 ) $ 1,038 SG&A $ 34 $ (90 ) SG&A $ — $ (3 ) Sell USD/Buy GBP Forward Contract — 71 SG&A — (161 ) SG&A — — $ (223 ) $ 1,109 $ 34 $ (251 ) $ — $ (3 ) |
Organization and Basis of Pre37
Organization and Basis of Presentation (Fiscal Year) (Details) | 3 Months Ended | 6 Months Ended | |
Jul. 29, 2018weeks | Jul. 30, 2017weeks | Jul. 29, 2018weeksweek | |
52 Week Fiscal Year [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Number of weeks in the fiscal year reporting period | 52 | ||
Number of weeks in a quarter for 52 week fiscal period | 13 | 13 | 13 |
53 Week Fiscal Year [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Number of weeks in the fiscal year reporting period | 53 | ||
Number of weeks in the 4th quarter for 53 week fiscal period | week | 14 |
Organization and Basis of Pre38
Organization and Basis of Presentation (Segment Information) (Details) | 6 Months Ended | 12 Months Ended |
Jul. 29, 2018reportable_segmentoperating_segment | Jan. 28, 2018operating_segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of operating segments | operating_segment | 3 | 4 |
Number of reportable segments | reportable_segment | 1 |
Organization and Basis of Pre39
Organization and Basis of Presentation (Acquisitions) (Details) - USD ($) $ in Thousands | May 02, 2018 | Jul. 29, 2018 | Jan. 28, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 346,731 | $ 341,897 | |
IC Interconnect, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Cash paid to to acquire business | $ 7,300 | ||
Goodwill | 4,800 | ||
Intangibles acquired | $ 2,500 |
Organization and Basis of Pre40
Organization and Basis of Presentation (Legal Settlement) (Details) - USD ($) $ in Millions | Aug. 01, 2018 | Jul. 29, 2018 |
Subsequent Event | ||
Loss Contingencies [Line Items] | ||
Litigation settlement | $ 9 | |
Selling, General and Administrative Expenses [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation settlement | $ 6.6 |
Organization and Basis of Pre41
Organization and Basis of Presentation (Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Document Fiscal Year Focus | 2,019 | ||
Retained earnings | $ 549,404 | $ 502,346 | |
Prepaid taxes | $ 9,347 | $ 11,809 | |
Accounting Standards Update 2014-09 | Restatement Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 11,100 | ||
Accounting Standards Update 2016-16 | Restatement Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | 1,800 | ||
Deferred tax assets | 3,700 | ||
Prepaid taxes | $ 5,500 |
Revenue (Effect of Adoption on
Revenue (Effect of Adoption on Financial Statements) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | Jan. 28, 2018 | |
Statements of Income | |||||
Net sales | $ 163,211 | $ 153,127 | $ 293,640 | $ 296,929 | |
Cost of sales | 63,087 | 60,891 | 122,047 | 119,778 | |
Provision for taxes | 6,082 | 4,095 | (11,428) | 7,852 | |
Net income | $ 25,169 | $ 12,564 | $ 37,551 | $ 24,385 | |
Basic (in dollars per share) | $ 0.38 | $ 0.19 | $ 0.57 | $ 0.37 | |
Diluted (in dollars per share) | $ 0.37 | $ 0.19 | $ 0.55 | $ 0.36 | |
Balance Sheets | |||||
Other current assets | $ 20,346 | $ 20,346 | $ 17,250 | ||
Accrued liabilities | 55,791 | 55,791 | 60,832 | ||
Deferred revenue | $ 5,100 | $ 5,100 | $ 12,758 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 25,169 | $ 12,564 | $ 37,551 | $ 24,385 |
Weighted average common shares outstanding - basic | 66,063 | 65,763 | 66,194 | 65,801 |
Dilutive effect of options and restricted stock units | 2,817 | 1,707 | 2,234 | 1,620 |
Weighted average common shares outstanding - diluted | 68,880 | 67,470 | 68,428 | 67,421 |
Basic earnings per common share (in dollars per share) | $ 0.38 | $ 0.19 | $ 0.57 | $ 0.37 |
Diluted earnings per common share (in dollars per share) | $ 0.37 | $ 0.19 | $ 0.55 | $ 0.36 |
Anti-dilutive shares not included in the above calculations | 202 | 254 | 364 | 385 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | Apr. 27, 2018shares | Oct. 05, 2016shares | Apr. 29, 2018USD ($)employee$ / sharesshares | Jul. 29, 2018USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares subject to purchase under warrants | 1,086,957 | |||
Warrants vested (in shares) | 586,956 | |||
Warrant vesting costs | $ | $ 21.5 | |||
Warrant vesting costs due to acceleration | $ | $ 15.9 | |||
Number of securities called by warrants (in shares) | 869,565 | |||
Document Fiscal Year Focus | 2,019 | |||
Number of shares affected (in shares) | 159,000 | |||
Number of employees affected | employee | 8 | |||
Additional compensation cost | $ | $ 2.8 | |||
Market Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity awards granted | 200,442 | |||
Description of award vesting rights | one-third of the awards vesting each performance period | |||
Performance Period One | Market Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 1 year | |||
Grant date fair value per unit | $ / shares | $ 33.02 | |||
Performance Period Two | Market Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 2 years | |||
Grant date fair value per unit | $ / shares | $ 34.85 | |||
Performance Period Three | Market Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 3 years | |||
Grant date fair value per unit | $ / shares | $ 36.52 |
Share-Based Compensation - Allo
Share-Based Compensation - Allocation of Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 13,966 | $ 15,525 | $ 49,481 | $ 28,810 |
Inventories [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Net change in share-based compensation capitalized into inventory | 0 | 0 | 0 | (414) |
Revenue Offset [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 0 | 3,197 | 21,501 | 8,477 |
Cost of Sales [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 306 | 281 | 633 | 845 |
Selling, General and Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 11,378 | 10,055 | 22,840 | 15,611 |
Product Development And Engineering [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 2,282 | $ 1,992 | $ 4,507 | $ 3,877 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | Jul. 29, 2018USD ($) |
Other Assets [Member] | |
Investment [Line Items] | |
Total investment in a private entity | $ 30 |
Investments - Summary Of Invest
Investments - Summary Of Investments (Details) - USD ($) $ in Thousands | Jul. 29, 2018 | Jan. 28, 2018 |
Investment [Line Items] | ||
Available-for-sale securities, market value | $ 2,605 | $ 1,960 |
Available-for-sale securities, adjusted cost | 2,605 | 1,960 |
Available-for-sale securities, gross unrealized gain | 0 | 0 |
Convertible debt | ||
Investment [Line Items] | ||
Available-for-sale securities, market value | 2,605 | 1,960 |
Available-for-sale securities, adjusted cost | 2,605 | 1,960 |
Available-for-sale securities, gross unrealized gain | $ 0 | $ 0 |
Investments - Summary of Maturi
Investments - Summary of Maturities of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Jul. 29, 2018 | Jan. 28, 2018 |
Investment [Line Items] | ||
Available-for-sale securities, market value | $ 2,605 | $ 1,960 |
Available-for-sale securities, adjusted cost | 2,605 | 1,960 |
Within 1 Year [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, market value | 2,000 | 1,960 |
Available-for-sale securities, adjusted cost | 2,000 | 1,960 |
After 1 Year Through 5 Years [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, market value | 605 | 0 |
Available-for-sale securities, adjusted cost | $ 605 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Jul. 29, 2018 | Jan. 28, 2018 |
Term Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 123,750 | |
Level 2 [Member] | Term Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 131,300 | |
Level 2 [Member] | Revolving Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 97,000 | $ 97,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jul. 29, 2018 | Jan. 28, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total financial assets | $ 2,605 | $ 1,960 |
Derivative financial instruments | 126 | 0 |
Total financial liabilities | 20,894 | 21,668 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Derivative financial instruments | 126 | 0 |
Total financial liabilities | 126 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total financial assets | 2,605 | 1,960 |
Derivative financial instruments | 0 | 0 |
Total financial liabilities | 20,768 | 21,668 |
Convertible debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 2,605 | 1,960 |
Convertible debt | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Convertible debt | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Convertible debt | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 2,605 | 1,960 |
AptoVision Technologies Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 20,100 | 21,000 |
AptoVision Technologies Inc. | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 0 | 0 |
AptoVision Technologies Inc. | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 0 | 0 |
AptoVision Technologies Inc. | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 20,100 | 21,000 |
Cycleo | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 668 | 668 |
Cycleo | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 0 | 0 |
Cycleo | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 0 | 0 |
Cycleo | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | $ 668 | $ 668 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Reconciliation of the Earn-out Liability (Details) $ in Thousands | 6 Months Ended |
Jul. 29, 2018USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 21,668 |
Changes in the fair value of contingent earn-out obligations | (900) |
Ending balance | 20,768 |
AptoVision Technologies Inc. | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 21,000 |
Changes in the fair value of contingent earn-out obligations | (900) |
Ending balance | 20,100 |
Cycleo | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 668 |
Changes in the fair value of contingent earn-out obligations | 0 |
Ending balance | $ 668 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Jul. 29, 2018 | Jan. 28, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,376 | $ 1,651 |
Work in progress | 38,076 | 46,884 |
Finished goods | 18,441 | 22,532 |
Inventories | $ 58,893 | $ 71,067 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets - Narrative (Details) $ in Millions | 6 Months Ended |
Jul. 29, 2018USD ($) | |
Wireless and Sensing [Member] | |
Goodwill [Line Items] | |
Goodwill, Transferred from Other Product Group | $ 49.4 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets - Changes in Carrying Amounts of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jul. 29, 2018USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 341,897 |
Additions | 4,834 |
Ending balance | 346,731 |
Signal Integrity [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 274,085 |
Additions | 0 |
Ending balance | 274,085 |
Wireless and Sensing [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 67,812 |
Additions | 0 |
Ending balance | 67,812 |
Protection [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 0 |
Additions | 4,834 |
Ending balance | $ 4,834 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 29, 2018 | Jan. 28, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 198,961 | $ 198,961 |
Accumulated amortization | (154,495) | (141,054) |
Net carrying amount | 44,466 | 57,907 |
Core Technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 164,930 | 164,930 |
Accumulated amortization | (126,203) | (115,628) |
Net carrying amount | $ 38,727 | 49,302 |
Core Technologies [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 5 years | |
Core Technologies [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 8 years | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 34,031 | 34,031 |
Accumulated amortization | (28,292) | (25,426) |
Net carrying amount | $ 5,739 | $ 8,605 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 3 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 10 years |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets - Schedule of Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Goodwill [Line Items] | ||||
Intangible amortization | $ 6,480 | $ 6,675 | $ 13,441 | $ 12,961 |
Core Technologies [Member] | ||||
Goodwill [Line Items] | ||||
Intangible amortization | 5,047 | 5,464 | 10,575 | 10,650 |
Customer Relationships [Member] | ||||
Goodwill [Line Items] | ||||
Intangible amortization | $ 1,433 | $ 1,211 | $ 2,866 | $ 2,311 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets - Schedule of Indefinite-lived Intangible Assets Resulting From Additions to IPR&D (Details) $ in Thousands | 6 Months Ended |
Jul. 29, 2018USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning balance, net carrying amount | $ 2,300 |
In-process research and development through acquisitions | 0 |
Ending balance, net carrying amount | $ 2,300 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jul. 29, 2018 | Jan. 28, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 220,750 | $ 228,250 |
Current portion | (17,307) | (15,410) |
Total long-term debt | 203,443 | 212,840 |
Debt issuance costs | (1,457) | (1,726) |
Total long-term debt, net of debt issuance costs | $ 201,986 | $ 211,114 |
Weighted-average interest rate | 3.73% | 3.19% |
Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 123,750 | $ 131,250 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 97,000 | $ 97,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Jul. 29, 2018 | Nov. 15, 2016 |
Term Loans [Member] | ||
Facilities, maximum borrowing capacity | $ 150,000,000 | |
Revolving Credit Facility [Member] | ||
Facilities, maximum borrowing capacity | $ 250,000,000 | |
Undrawn revolving commitments | $ 153,000,000 | |
Swingline Loans [Member] | ||
Amounts outstanding | 0 | |
Foreign Line of Credit [Member] | ||
Amounts outstanding | $ 0 |
Long-Term Debt - Scheduled Matu
Long-Term Debt - Scheduled Maturities of Term Loans (Details) - Term Loans [Member] $ in Thousands | Jul. 29, 2018USD ($) |
Debt Instrument [Line Items] | |
2,019 | $ 8,438 |
2,020 | 18,750 |
2,021 | 19,687 |
2,022 | 76,875 |
Total debt | $ 123,750 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 29, 2018 | Jan. 28, 2018 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate | 21.00% | |
Increase (decrease) In global tax rate, percent | 10.50% | |
Income tax benefit | $ 15.8 | |
Percentage of uncertain tax positions evaluating criteria | 50.00% | |
Net tax benefits, if recognized, would impact the effective tax rate | $ 4.7 | $ 3.9 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Contingencies (Details) $ in Thousands | 6 Months Ended |
Jul. 29, 2018USD ($) | |
Income Tax Contingency [Line Items] | |
Beginning balance | $ 16,059 |
Additions based on tax positions related to the current year | 855 |
Ending balance | $ 16,914 |
Income Taxes - Liability For Un
Income Taxes - Liability For Uncertain Tax Positions (Details) - USD ($) $ in Thousands | Jul. 29, 2018 | Jan. 28, 2018 |
Income Tax Contingency [Line Items] | ||
Liability for UTP | $ 16,914 | $ 16,059 |
Non-current deferred tax asset [Member] | ||
Income Tax Contingency [Line Items] | ||
Liability for UTP | 12,236 | 12,135 |
Other long-term liabilities [Member] | ||
Income Tax Contingency [Line Items] | ||
Liability for UTP | $ 4,678 | $ 3,924 |
Income Taxes - Regional Income
Income Taxes - Regional Income (Loss) From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Domestic | $ (3,524) | $ (4,863) | $ (11,224) | $ (9,030) |
Foreign | 34,802 | 21,522 | 37,405 | 41,267 |
Income before taxes and equity in net losses of equity method investments | $ 31,278 | $ 16,659 | $ 26,181 | $ 32,237 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Jul. 29, 2018 | Jan. 28, 2018 | Jul. 01, 2017 |
Commitments and Contingencies [Line Items] | |||
Earn-out liability booked | $ 26,200 | $ 26,520 | |
Amount expected to be settled within twelve months | 11,687 | ||
Cycleo | |||
Commitments and Contingencies [Line Items] | |||
Potential payments under earn-out arrangements, high estimate | 16,000 | ||
Earn-out liability booked | 6,100 | 5,520 | |
Amount expected to be settled within twelve months | 2,187 | ||
AptoVision Technologies Inc. | |||
Commitments and Contingencies [Line Items] | |||
Earn-out liability booked | 20,100 | $ 21,000 | |
Amount expected to be settled within twelve months | 9,500 | ||
Minimum [Member] | Environmental Issue | |||
Commitments and Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | 3,600 | ||
Maximum [Member] | AptoVision Technologies Inc. | |||
Commitments and Contingencies [Line Items] | |||
Potential payments under earn-out arrangements, high estimate | $ 47,000 | ||
Maximum [Member] | Environmental Issue | |||
Commitments and Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ 7,200 |
Commitments and Contingencies66
Commitments and Contingencies - Summary of Earn-out Liability (Details) - USD ($) $ in Thousands | Jul. 29, 2018 | Jan. 28, 2018 |
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | $ 26,200 | $ 26,520 |
Amount expected to be settled within twelve months | 11,687 | |
Compensation Expense [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | 5,432 | 4,408 |
Not Conditional Upon Continued Employment [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | 20,768 | 21,668 |
Interest Expense [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | 0 | 444 |
Cycleo | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | 6,100 | 5,520 |
Amount expected to be settled within twelve months | 2,187 | |
Cycleo | Compensation Expense [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | 5,432 | 4,408 |
Cycleo | Not Conditional Upon Continued Employment [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | 668 | 668 |
Cycleo | Interest Expense [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | 0 | 444 |
AptoVision Technologies Inc. | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | 20,100 | 21,000 |
Amount expected to be settled within twelve months | 9,500 | |
AptoVision Technologies Inc. | Compensation Expense [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | 0 | 0 |
AptoVision Technologies Inc. | Not Conditional Upon Continued Employment [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | 20,100 | 21,000 |
AptoVision Technologies Inc. | Interest Expense [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Earn-out liability booked | $ 0 | $ 0 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Jul. 29, 2018reportable_segmentoperating_segment | Jan. 28, 2018operating_segment | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | operating_segment | 3 | 4 |
Number of reportable segments | reportable_segment | 1 | |
Net sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Minimum concentration risk threshold | 10.00% |
Segment Information - Net Sales
Segment Information - Net Sales Activity by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 163,211 | $ 153,127 | $ 293,640 | $ 296,929 |
Semiconductor Products Group [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 163,211 | $ 153,127 | $ 293,640 | $ 296,929 |
Segment Information - Income by
Segment Information - Income by Segment and Reconciliation to Income Before Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 32,936 | $ 18,892 | $ 29,839 | $ 37,148 |
Items to reconcile segment operating income to consolidated income before taxes | ||||
Share-based compensation | 13,966 | 15,525 | 49,481 | 28,810 |
Intangible amortization | 6,480 | 6,675 | 13,441 | 12,961 |
Changes in the fair value of contingent earn-out obligations | (900) | 0 | (900) | 0 |
Interest expense, net | 2,200 | 2,029 | 4,390 | 4,075 |
Non-operating expense, net | (542) | 204 | (732) | 836 |
Income before taxes and equity in net losses of equity method investments | 31,278 | 16,659 | 26,181 | 32,237 |
Corporate, Non-Segment [Member] | ||||
Items to reconcile segment operating income to consolidated income before taxes | ||||
Share-based compensation | 13,966 | 15,525 | 49,481 | 28,810 |
Intangible amortization | 6,480 | 6,675 | 13,441 | 12,961 |
Changes in the fair value of contingent earn-out obligations | (900) | 0 | (900) | 0 |
Litigation cost net of recoveries | (6,632) | 0 | (6,632) | 0 |
Other non-segment related expenses | 1,260 | 1,764 | 2,693 | 2,969 |
Amortization of fair value adjustments related to acquired property, plant and equipment | 0 | 0 | 0 | 190 |
Interest expense, net | 2,200 | 2,029 | 4,390 | 4,075 |
Non-operating expense, net | (542) | 204 | (732) | 836 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 47,110 | 42,856 | 87,922 | 82,078 |
Semiconductor Products Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 47,110 | $ 42,856 | $ 87,922 | $ 82,078 |
Segment Information - Revenue b
Segment Information - Revenue by Product Line (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 163,211,000 | $ 153,127,000 | $ 293,640,000 | $ 296,929,000 |
Signal Integrity [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 68,802,000 | 66,666,000 | 134,401,000 | 134,724,000 |
Protection [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 45,999,000 | 45,058,000 | 86,791,000 | 87,307,000 |
Wireless and Sensing [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 48,410,000 | 44,600,000 | 93,949,000 | 83,375,000 |
Other: Warrant Shares | ||||
Revenue from External Customer [Line Items] | ||||
Net sales offset | $ 0 | $ (3,197,000) | $ (21,501,000) | $ (8,477,000) |
Net sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Net sales [Member] | Signal Integrity [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 42.00% | 44.00% | 45.00% | 46.00% |
Net sales [Member] | Protection [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 28.00% | 29.00% | 30.00% | 29.00% |
Net sales [Member] | Wireless and Sensing [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 30.00% | 29.00% | 32.00% | 28.00% |
Net sales [Member] | Other: Warrant Shares | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | (0.00%) | (2.00%) | (7.00%) | (3.00%) |
Segment Information - Revenue71
Segment Information - Revenue by Sales Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 163,211 | $ 153,127 | $ 293,640 | $ 296,929 |
Sales Channel, Through Intermediary | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 109,844 | 100,121 | 212,317 | 194,643 |
Sales Channel, Directly to Consumer | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 53,367 | 56,203 | 102,824 | 110,763 |
Other: Warrant Shares | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue offset | $ 0 | $ (3,197) | $ (21,501) | $ (8,477) |
Segment Information - Net Sal72
Segment Information - Net Sales Activity by Geographic Region (Details) - Net sales [Member] | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Asia-Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 75.00% | 73.00% | 72.00% | 75.00% |
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 19.00% | 21.00% | 28.00% | 21.00% |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 6.00% | 8.00% | 7.00% | 7.00% |
Other: Warrant Shares | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | (0.00%) | (2.00%) | (7.00%) | (3.00%) |
Segment Information - Summary o
Segment Information - Summary of Sales Activity to Countries that Represented Greater than 10% of Total Net Sales (Details) - Net sales [Member] | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Geographic Concentration Risk [Member] | China Including Hong Kong [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 56.00% | 49.00% | 53.00% | 50.00% |
Geographic Concentration Risk [Member] | United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 10.00% | 9.00% | 12.00% | 9.00% |
Stock Repurchase Program - Narr
Stock Repurchase Program - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 124 Months Ended | |||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | May 24, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Additional stock repurchase amount authorized | $ 250,000,000 | |||||
Shares repurchased under the stock repurchase program, value | $ 24,413,000 | $ 428,000 | $ 49,738,000 | $ 10,389,000 | $ 201,100,000 | |
Remaining authorization under stock repurchase program | $ 247,300,000 | $ 247,300,000 | $ 247,300,000 |
Stock Repurchase Program - Summ
Stock Repurchase Program - Summary of Stock Repurchases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 124 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased under the stock repurchase program, shares | 495,609 | 12,304 | 1,140,753 | 312,304 | |
Shares repurchased under the stock repurchase program, value | $ 24,413 | $ 428 | $ 49,738 | $ 10,389 | $ 201,100 |
Stock Repurchase Program WIth No Expiration Date [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased under the stock repurchase program, shares | 495,609 | 12,304 | 1,140,753 | 312,304 | |
Shares repurchased under the stock repurchase program, value | $ 24,413 | $ 428 | $ 49,738 | $ 10,389 |
Restructuring - Activity (Detai
Restructuring - Activity (Details) $ in Thousands | 6 Months Ended |
Jul. 29, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at January 28, 2018 | $ 4,749 |
Charges | 346 |
Cash payments and adjustments | (3,534) |
Balance at July 29, 2018 | 1,561 |
One-time employee termination benefits | |
Restructuring Reserve [Roll Forward] | |
Balance at January 28, 2018 | 4,063 |
Charges | 346 |
Cash payments and adjustments | (3,342) |
Balance at July 29, 2018 | 1,067 |
Contract commitments | |
Restructuring Reserve [Roll Forward] | |
Balance at January 28, 2018 | 686 |
Charges | 0 |
Cash payments and adjustments | (192) |
Balance at July 29, 2018 | $ 494 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Thousands | 6 Months Ended |
Jul. 29, 2018USD ($) | |
Restructuring and Related Activities [Abstract] | |
Restructuring expense | $ 346 |
Derivatives and Hedging Activ78
Derivatives and Hedging Activities - Narrative (Details) $ in Millions | 6 Months Ended |
Jul. 29, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Objectives for using derivative instruments | The Company is exposed to certain risk arising from both its business operations and economic conditions and principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company, on a routine basis and in the normal course of business, experiences expenses denominated in Swiss Franc ("CHF"), Canadian Dollar ("CAD") and Great British Pound ("GBP"). Such expenses expose the Company to exchange rate fluctuations between these foreign currencies and the U.S. Dollar ("USD"). The Company uses derivative financial instruments in the form of forward contracts to mitigate risk associated with adverse movements in these foreign currency exchange rates on a portion of foreign denominated expenses expected to be realized during the current and following fiscal year. |
Period over which any gains or losses under foreign exchange contracts are expected to be realized | 12 months |
Cash flow hedge losses expected to be reclassified into earnings within twelve months | $ 0.2 |
Derivatives and Hedging Activ79
Derivatives and Hedging Activities - Summary of Open Foreign Currency Contracts (Details) $ in Thousands, $ in Thousands | Jul. 29, 2018USD ($) | Jul. 29, 2018CAD ($) |
Derivative [Line Items] | ||
Number of Instruments | 6 | 6 |
Sell USD/Buy CAD Forward Contract [Member] | ||
Derivative [Line Items] | ||
Number of Instruments | 6 | 6 |
Short [Member] | Sell USD/Buy CAD Forward Contract [Member] | ||
Derivative [Line Items] | ||
Notional Value | $ 8,560 | |
Long [Member] | Sell USD/Buy CAD Forward Contract [Member] | ||
Derivative [Line Items] | ||
Notional Value | $ 11,000 |
Derivatives and Hedging Activ80
Derivatives and Hedging Activities - Summary of the Carrying Values of Derivative Instruments (Details) - USD ($) | Jul. 29, 2018 | Jan. 28, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Fair Value - Assets | [1],[2] | $ 0 | |
Fair Value - (Liabilities) | [1],[2] | (126,000) | |
Derivative Net Carrying Value | (126,000) | ||
Foreign Exchange Contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Net Carrying Value | [1] | (126,000) | $ 0 |
Level 2 [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value - Assets | [1],[2] | 0 | |
Level 2 [Member] | Foreign Exchange Contract [Member] | Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value - (Liabilities) | [1],[2] | $ (126,000) | |
[1] | Assets are included in "Other current assets" and liabilities are included in "Accrued liabilities" within the Balance Sheets. | ||
[2] | The fair values of the foreign exchange forward contracts are valued using Level 2 inputs. Please refer to Note 6. |
Derivatives and Hedging Activ81
Derivatives and Hedging Activities - Summary of Gain (Loss) Recognized From Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2018 | Jul. 30, 2017 | Jul. 29, 2018 | Jul. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ (223) | $ 1,109 | $ (158) | $ 1,308 |
SG&A | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (gain) loss reclassified from AOCI into income (effective portion) | 34 | (251) | 33 | (310) |
Amount of gain (loss) recognized into income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | (3) | 0 | (2) |
Sell USD/Buy CAD Forward Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | (223) | 1,038 | (158) | 1,003 |
Sell USD/Buy CAD Forward Contract [Member] | SG&A | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (gain) loss reclassified from AOCI into income (effective portion) | 34 | (90) | 33 | (90) |
Amount of gain (loss) recognized into income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | (3) | 0 | (2) |
Sell USD/Buy GBP Forward Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 0 | 71 | 0 | 305 |
Sell USD/Buy GBP Forward Contract [Member] | SG&A | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (gain) loss reclassified from AOCI into income (effective portion) | 0 | (161) | 0 | (220) |
Amount of gain (loss) recognized into income on derivative (ineffective portion and amount excluded from effectiveness testing) | $ 0 | $ 0 | $ 0 | $ 0 |