Quarterly Financial Data - Unaudited | Note 20. Quarterly Financial Data – Unaudited The following tables set forth selected unaudited quarterly financial information for the years ended October 1, 2022 and October 2, 2021. As described in Note 2, the Company has restated its unaudited quarterly financial information for each of the interim periods in the years ended October 1, 2022 and October 2, 2021. This information has been prepared on the same basis as the unaudited consolidated financial statements. The adjustments to the unaudited quarterly financial information below are the same as the Investigation Adjustments and Other Adjustments discussed in Note 2. As Restated Year ended October 1, 2022 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share data) Net sales $ 1,756,326 $ 1,915,070 $ 2,023,361 $ 2,224,865 Gross profit $ 141,297 $ 146,495 $ 162,185 $ 172,229 Gross margin 8.0 % 7.6 % 8.0 % 7.7 % Operating income $ 78,241 $ 76,274 $ 91,614 $ 103,350 Operating margin 4.5 % 4.0 % 4.5 % 4.6 % Net income $ 56,177 $ 48,621 $ 77,222 $ 58,364 Basic net income per share $ 0.87 $ 0.77 $ 1.29 $ 1.01 Diluted net income per share $ 0.85 $ 0.76 $ 1.25 $ 0.98 As Restated Year ended October 2, 2021 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share data) Net sales $ 1,755,984 $ 1,678,497 $ 1,653,266 $ 1,650,609 Gross profit $ 140,351 $ 120,985 $ 135,066 $ 130,039 Gross margin 8.0 % 7.2 % 8.2 % 7.9 % Operating income $ 74,675 $ 42,610 $ 72,741 $ 65,910 Operating margin 4.3 % 2.5 % 4.4 % 4.0 % Net income $ 49,558 $ 27,868 $ 116,195 $ 55,925 Basic net income per share $ 0.76 $ 0.43 $ 1.78 $ 0.86 Diluted net income per share $ 0.74 $ 0.42 $ 1.73 $ 0.83 Consolidated Balance Sheets The following table presents the impact of the financial statement adjustments on the Company’s previously reported Consolidated Balance Sheets as of January 1, 2022, April 2, 2022 and July 2, 2022. As of January 1, 2022 April 2, 2022 July 2, 2022 Previously Investigation Other Previously Investigation Other Previously Investigation Other Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 627,717 $ — $ — $ 627,717 $ 559,893 $ — $ — $ 559,893 $ 493,305 $ — $ — $ 493,305 Accounts receivable, net of allowances 1,298,327 — 687 1,299,014 1,270,494 — 606 1,271,100 1,228,435 — 1,429 1,229,864 Contract assets 364,407 (31,772) 14,948 347,583 417,286 (33,512) 15,508 399,282 459,306 (34,918) 20,408 444,796 Inventories 1,242,440 (2,373) 13,630 1,253,697 1,437,955 (6,913) 12,579 1,443,621 1,591,111 (8,829) 7,841 1,590,123 Prepaid expenses and other current assets 59,188 — — 59,188 61,525 — — 61,525 63,827 — — 63,827 Total current assets 3,592,079 (34,145) 29,265 3,587,199 3,747,153 (40,425) 28,693 3,735,421 3,835,984 (43,747) 29,678 3,821,915 Property, plant and equipment, net 525,159 — — 525,159 525,362 — — 525,362 545,673 — — 545,673 Deferred tax assets 227,239 7,792 — 235,031 220,532 9,042 — 229,574 212,407 9,673 — 222,080 Other 157,533 — — 157,533 156,867 — — 156,867 149,608 — — 149,608 Total assets $ 4,502,010 $ (26,353) $ 29,265 $ 4,504,922 $ 4,649,914 $ (31,383) $ 28,693 $ 4,647,224 $ 4,743,672 $ (34,074) $ 29,678 $ 4,739,276 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,694,592 $ — $ 13,630 $ 1,708,222 $ 1,817,465 $ — $ 12,579 $ 1,830,044 $ 1,976,533 $ — $ 7,841 $ 1,984,374 Accrued liabilities 236,227 2,100 15,635 253,962 314,648 1,669 16,114 332,431 303,076 1,299 21,837 326,212 Accrued payroll and related benefits 115,738 — — 115,738 116,794 — — 116,794 133,319 — — 133,319 Short-term debt, including current portion of long-term debt 18,750 — — 18,750 18,750 — — 18,750 18,750 — — 18,750 Total current liabilities 2,065,307 2,100 29,265 2,096,672 2,267,657 1,669 28,693 2,298,019 2,431,678 1,299 29,678 2,462,655 Long-term liabilities: Long-term debt 307,160 — — 307,160 302,751 — — 302,751 298,345 — — 298,345 Other 248,326 — — 248,326 241,416 — — 241,416 209,716 — — 209,716 Total long-term liabilities 555,486 — — 555,486 544,167 — — 544,167 508,061 — — 508,061 Contingencies (Note 11) Stockholders’ equity 1,881,217 (28,453) — 1,852,764 1,838,090 (33,052) — 1,805,038 1,803,933 (35,373) — 1,768,560 Total liabilities and stockholders’ equity $ 4,502,010 $ (26,353) $ 29,265 $ 4,504,922 $ 4,649,914 $ (31,383) $ 28,693 $ 4,647,224 $ 4,743,672 $ (34,074) $ 29,678 $ 4,739,276 Consolidated Statements of Income The following table presents the impact of the financial statement adjustments on the Company’s previously reported Consolidated Statements of Income for the three months ended January 1, 2022, April 2, 2022 and July 2, 2022. Three Months Ended January 1, 2022 April 2, 2022 July 2, 2022 Previously Investigation Other Previously Investigation Other Previously Investigation Other Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated (Unaudited) (In thousands) Net sales $ 1,757,325 $ (999) $ — $ 1,756,326 $ 1,911,530 $ 3,540 $ — $ 1,915,070 $ 2,019,059 $ 4,302 $ — $ 2,023,361 Cost of sales 1,612,836 2,193 — 1,615,029 1,759,083 9,492 — 1,768,575 1,853,870 7,306 — 1,861,176 Gross profit 144,489 (3,192) — 141,297 152,447 (5,952) — 146,495 165,189 (3,004) — 162,185 Operating expenses: Selling, general and administrative 61,475 — — 61,475 61,817 — — 61,817 61,506 — — 61,506 Research and development 4,777 — — 4,777 5,472 — — 5,472 5,071 — — 5,071 Restructuring and other 1,414 — — 1,414 2,932 — — 2,932 3,994 — — 3,994 Gain on sale of long-lived assets (4,610) — — (4,610) — — — — — — Total operating expenses 63,056 — — 63,056 70,221 — — 70,221 70,571 — — 70,571 Operating income 81,433 (3,192) — 78,241 82,226 (5,952) — 76,274 94,618 (3,004) — 91,614 — Interest income 309 — — 309 349 — — 349 540 — — 540 Interest expense (4,877) — — (4,877) (4,870) — — (4,870) (5,615) — — (5,615) Other income (expense), net 2,072 — — 2,072 (1,408) — — (1,408) (7,774) — — (7,774) Interest and other, net (2,496) — — (2,496) (5,929) — — (5,929) (12,849) — — (12,849) Income before income taxes 78,937 (3,192) — 75,745 76,297 (5,952) — 70,345 81,769 (3,004) — 78,765 Provision for income taxes 20,303 (735) — 19,568 23,077 (1,353) — 21,724 2,226 (683) — 1,543 Net income $ 58,634 $ (2,457) $ — $ 56,177 $ 53,220 $ (4,599) $ — $ 48,621 $ 79,543 $ (2,321) $ — $ 77,222 Net income per share: Basic $ 0.91 $ (0.04) $ — $ 0.87 $ 0.85 $ (0.08) $ — $ 0.77 $ 1.33 $ (0.04) $ — $ 1.29 Diluted $ 0.89 $ (0.04) $ — $ 0.85 $ 0.83 $ (0.07) $ — $ 0.76 $ 1.29 $ (0.04) $ — $ 1.25 The following table presents the impact of the financial statement adjustments on the Company’s previously reported Consolidated Statements of Income for the six and nine months ended April 2, 2022 and July 2, 2022, respectively. Six Months Ended Nine Months Ended April 2, 2022 July 2, 2022 Previously Investigation Other Previously Investigation Other Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated (Unaudited) (In thousands) Net sales $ 3,668,855 $ 2,541 $ — $ 3,671,396 $ 5,687,914 $ 6,843 $ — $ 5,694,757 Cost of sales 3,371,919 11,685 — 3,383,604 5,225,789 18,991 — 5,244,780 Gross profit 296,936 (9,144) — 287,792 462,125 (12,148) — 449,977 Operating expenses: Selling, general and administrative 123,292 — — 123,292 184,798 — — 184,798 Research and development 10,249 — — 10,249 15,320 — — 15,320 Restructuring and other 4,346 — — 4,346 8,340 — — 8,340 Gain on sale of long-lived assets (4,610) — — (4,610) (4,610) — — (4,610) Total operating expenses 133,277 — — 133,277 203,848 — — 203,848 Operating income 163,659 (9,144) — 154,515 258,277 (12,148) — 246,129 Interest income 658 — — 658 1,198 — — 1,198 Interest expense (9,747) — — (9,747) (15,362) — — (15,362) Other income (expense), net 664 — — 664 (7,110) — — (7,110) Interest and other, net (8,425) — — (8,425) (21,274) — — (21,274) Income before income taxes 155,234 (9,144) — 146,090 237,003 (12,148) — 224,855 Provision for income taxes 43,380 (2,088) — 41,292 45,606 (2,771) — 42,835 Net income $ 111,854 $ (7,056) $ — $ 104,798 $ 191,397 $ (9,377) $ — $ 182,020 Net income per share: Basic $ 1.76 $ (0.11) $ — $ 1.65 $ 3.07 $ (0.15) $ — $ 2.92 Diluted $ 1.71 $ (0.11) $ — $ 1.60 $ 2.98 $ (0.15) $ — $ 2.83 Consolidated Statements of Cash Flows The following table presents the impact of the financial statement adjustments on the Company’s previously reported Consolidated Statements of Cash Flows for the periods indicated below. Three Months Ended Six Months Ended Nine Months Ended January 1, 2022 April 2, 2022 July 2, 2022 Previously Investigation Other Previously Investigation Other Previously Investigation Other Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated (Unaudited) (In thousands) CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: Net income $ 58,634 $ (2,457) $ — $ 56,177 $ 111,854 $ (7,056) $ — $ 104,798 $ 191,397 $ (9,377) $ — $ 182,020 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 27,465 — — 27,465 55,032 — — 55,032 82,097 — — 82,097 Stock-based compensation expense 9,032 — — 9,032 18,362 — — 18,362 29,045 — — 29,045 Deferred income taxes 6,707 (648) — 6,059 11,071 (1,898) — 9,173 18,522 (2,529) — 15,993 Impairment of goodwill and other assets — — — — — — — — 1,848 — — 1,848 Loss on sale of intellectual property Other, net (3,638) — — (3,638) (1,903) — — (1,903) (3,146) — — (3,146) Changes in operating assets and liabilities, net of amounts acquired: Accounts receivable (106,972) — 316 (106,656) (79,705) — 397 (79,308) (39,850) — (426) (40,276) Contract assets (15,666) 3,064 (2,791) (15,393) (68,545) 4,804 (3,351) (67,092) (110,565) 6,210 (8,251) (112,606) Inventories (207,300) 88 (6,066) (213,278) (403,396) 4,628 (5,015) (403,783) (559,118) 6,544 (277) (552,851) Prepaid expenses and other assets (2,939) — — (2,939) (11,334) — — (11,334) (13,269) — — (13,269) Accounts payable 234,525 — 6,066 240,591 357,176 — 5,015 362,191 507,632 — 277 507,909 Accrued liabilities 68,452 (47) 2,475 70,880 158,661 (478) 2,954 161,137 144,363 (848) 8,677 152,192 Cash provided by operating activities $ 68,300 $ — $ — $ 68,300 $ 147,273 $ — $ — $ 147,273 $ 248,956 $ — $ — $ 248,956 Consolidated Balance Sheets The following table presents the impact of the financial statement adjustments on the Company’s previously reported Consolidated Balance Sheets as of January 2, 2021, April 3, 2021 and July 3, 2021. As of January 2, 2021 April 3, 2021 July 3, 2021 Previously Investigation Other Previously Investigation Other Previously Investigation Other Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 516,030 $ — $ — $ 516,030 $ 575,176 $ — $ 575,176 $ 623,844 $ — $ — $ 623,844 Accounts receivable, net of allowances 1,108,472 - 4,453 1,112,925 1,122,962 - 1,876 1,124,838 1,153,813 — 1,440 1,155,253 Contract assets 350,049 (9,427) 17,367 357,989 334,957 (27,204) 14,194 321,947 345,096 (29,357) 17,699 333,438 Inventories 819,474 — — 819,474 785,406 — 785,406 892,633 — — 892,633 Prepaid expenses and other current assets 48,851 — — 48,851 38,584 — 38,584 50,446 — — 50,446 Total current assets 2,842,876 (9,427) 21,820 2,855,269 2,857,085 (27,204) 16,070 2,845,951 3,065,832 (29,357) 19,139 3,055,614 Property, plant and equipment, net 541,188 - (14,543) 526,645 529,651 - (14,448) 515,203 550,038 — (14,353) 535,685 Deferred tax assets 269,803 2,074 (690) 271,187 259,943 6,649 — 266,592 241,069 6,991 — 248,060 Other 125,867 - 14,543 140,410 123,550 - 14,448 137,998 145,651 — 14,353 160,004 Total assets $ 3,779,734 $ (7,353) $ 21,130 $ 3,793,511 $ 3,770,229 $ (20,555) $ 16,070 $ 3,765,744 $ 4,002,590 $ (22,366) $ 19,139 $ 3,999,363 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,143,431 $ — $ — $ 1,143,431 $ 1,108,994 $ — $ — $ 1,108,994 $ 1,296,005 $ — $ — $ 1,296,005 Accrued liabilities 190,797 (136) 18,920 209,581 176,148 3,621 16,070 195,839 149,236 2,990 19,139 171,365 Accrued payroll and related benefits 120,469 — — 120,469 114,704 — — 114,704 123,365 — — 123,365 Short-term debt, including current portion of long-term debt 18,750 — — 18,750 18,750 — — 18,750 18,750 — — 18,750 Total current liabilities 1,473,447 (136) 18,920 1,492,231 1,418,596 3,621 16,070 1,438,287 1,587,356 2,990 19,139 1,609,485 Long-term liabilities: Long-term debt 324,825 — — 324,825 320,405 — — 320,405 315,987 — — 315,987 Other 303,514 — — 303,514 296,121 — — 296,121 260,132 — — 260,132 Total long-term liabilities 628,339 — — 628,339 616,526 — — 616,526 576,119 — — 576,119 Contingencies (Note 11) Stockholders’ equity 1,677,948 (7,217) 2,210 1,672,941 1,735,107 (24,176) — 1,710,931 1,839,115 (25,356) — 1,813,759 Total liabilities and stockholders’ equity $ 3,779,734 $ (7,353) $ 21,130 $ 3,793,511 $ 3,770,229 $ (20,555) $ 16,070 $ 3,765,744 $ 4,002,590 $ (22,366) $ 19,139 $ 3,999,363 Consolidated Statements of Income The following table presents the impact of the financial statement adjustments on the Company’s previously reported Consolidated Statements of Income for the periods indicated below. January 2, 2021 April 3, 2021 July 3, 2021 Previously Investigation Other Previously Investigation Other Previously Investigation Other Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated (Unaudited) (In thousands) Net sales $ 1,755,249 $ 735 $ — $ 1,755,984 $ 1,699,677 $ (21,180) $ — $ 1,678,497 $ 1,657,741 $ (4,475) $ — $ 1,653,266 Cost of sales 1,614,014 1,619 — 1,615,633 1,556,579 933 — 1,557,512 1,521,151 (2,951) — 1,518,200 Gross profit 141,235 (884) — 140,351 143,098 (22,113) — 120,985 136,590 (1,524) — 135,066 Operating expenses: Selling, general and administrative 58,967 — — 58,967 61,142 — — 61,142 57,438 — — 57,438 Research and development 4,805 — — 4,805 5,353 — — 5,353 5,269 — — 5,269 Restructuring and other 1,904 — — 1,904 11,880 — — 11,880 (382) — — (382) Total operating expenses 65,676 — — 65,676 78,375 — — 78,375 62,325 — — 62,325 Operating income 75,559 (884) — 74,675 64,723 (22,113) — 42,610 74,265 (1,524) — 72,741 Interest income 230 — — 230 244 — — 244 217 — — 217 Interest expense (4,954) — — (4,954) (4,880) — — (4,880) (4,823) — — (4,823) Other income (expense), net 1,867 — 2,900 4,767 6,143 — (2,900) 3,243 29,258 — — 29,258 Interest and other, net (2,857) — 2,900 43 1,507 — (2,900) (1,393) 24,652 — — 24,652 Income before income taxes 72,702 (884) 2,900 74,718 66,230 (22,113) (2,900) 41,217 98,917 (1,524) — 97,393 Provision for income taxes 24,681 (211) 690 25,160 19,193 (5,154) (690) 13,349 (18,458) (344) — (18,802) Net income $ 48,021 $ (673) $ 2,210 $ 49,558 $ 47,037 $ (16,959) $ (2,210) $ 27,868 $ 117,375 $ (1,180) $ — $ 116,195 Net income per share: Basic $ 0.74 $ (0.01) $ 0.03 $ 0.76 $ 0.72 $ (0.26) $ (0.03) $ 0.43 $ 1.79 $ (0.01) $ — $ 1.78 Diluted $ 0.72 $ (0.01) $ 0.03 $ 0.74 $ 0.70 $ (0.26) $ (0.03) $ 0.42 $ 1.74 $ (0.01) $ — $ 1.73 Six Months Ended Nine Months Ended April 3, 2021 July 3, 2021 Previously Investigation Other As Previously Investigation Other As Reported Adjustments Adjustments Restated Reported Adjustments Adjustments Restated (Unaudited) (In thousands) Net sales $ 3,454,926 $ (20,445) $ — $ 3,434,481 $ 5,112,667 $ (24,920) $ — $ 5,087,747 Cost of sales 3,170,593 2,552 — 3,173,145 4,691,744 (399) — 4,691,345 Gross profit 284,333 (22,997) — 261,336 420,923 (24,521) — 396,402 Operating expenses: Selling, general and administrative 120,109 — — 120,109 177,547 — — 177,547 Research and development 10,158 — — 10,158 15,427 — — 15,427 Restructuring and other 13,784 — — 13,784 13,402 — — 13,402 Total operating expenses 144,051 — — 144,051 206,376 — — 206,376 Operating income 140,282 (22,997) — 117,285 214,547 (24,521) — 190,026 Interest income 474 — — 474 691 — — 691 Interest expense (9,834) — — (9,834) (14,657) — — (14,657) Other income (expense), net 8,010 — — 8,010 37,268 — — 37,268 Interest and other, net (1,350) — — (1,350) 23,302 — — 23,302 Income before income taxes 138,932 (22,997) — 115,935 237,849 (24,521) — 213,328 Provision for income taxes 43,874 (5,365) — 38,509 25,416 (5,709) — 19,707 Net income $ 95,058 $ (17,632) $ — $ 77,426 $ 212,433 $ (18,812) $ — $ 193,621 Net income per share: Basic $ 1.46 $ (0.27) $ — $ 1.19 $ 3.25 $ (0.29) $ — $ 2.96 Diluted $ 1.42 $ (0.26) $ — $ 1.16 $ 3.17 $ (0.28) $ — $ 2.89 Consolidated Statements of Cash Flows The following table presents the impact of the financial statement adjustments on the Company’s previously reported Consolidated Statements of Cash Flows for the periods indicated below. Three Months Ended Six Months Ended Nine Months Ended January 2, 2021 April 3, 2021 July 3, 2021 Previously Investigation Other Previously Investigation Other Previously Investigation Other Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated Reported Adjustments Adjustments As Restated (Unaudited) (In thousands) CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: Net income $ 48,021 $ (673) $ 2,210 $ 49,558 $ 95,058 $ (17,632) $ — $ 77,426 $ 212,433 $ (18,812) $ — $ 193,621 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 27,635 — — 27,635 54,831 — — 54,831 82,204 — — 82,204 Stock-based compensation expense 8,208 — — 8,208 17,432 — — 17,432 26,147 — — 26,147 Deferred income taxes 3,447 (279) 690 3,858 13,641 (4,854) — 8,787 32,142 (5,196) — 26,946 Gain on sale of intellectual property — — — — — — — — (15,000) — — (15,000) Gain on liquidation of foreign entity — — — — — — — — (8,263) — — (8,263) Impairment of goodwill and other asset — — — — — — — — — — — — Other, net (99) — — (99) (19) — — (19) (633) — — (633) Changes in operating assets and liabilities, net of amounts acquired: Accounts receivable (64,217) — (2,744) (66,961) (79,166) — (167) (79,333) (108,277) — 269 (108,008) Contract assets 46,534 (15,009) (2,845) 28,680 61,626 2,768 328 64,722 51,487 4,921 (3,177) 53,231 Inventories 42,282 15,187 — 57,469 75,303 15,187 — 90,490 (22,606) 15,187 — (7,419) Prepaid expenses and other assets (9,400) 706 — (8,694) 1,359 706 — 2,065 (3,574) 706 — (2,868) Accounts payable (66,657) — — (66,657) (99,525) — — (99,525) 61,524 — — 61,524 Accrued liabilities 26,057 68 2,689 28,814 2,360 3,825 (161) 6,024 (60,963) 3,194 2,908 (54,861) Cash provided by operating activities $ 61,811 $ — $ — $ 61,811 $ 142,900 $ — $ — $ 142,900 $ 246,621 $ — $ — $ 246,621 |