United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-K

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "smaller reporting"emerging growth company" in Rule 12b-2 of the Exchange Act.

The aggregate market value of the voting stock held by non-affiliates of the registrant based upon the closing price of the registrant's common stock on September 25, 201529, 2018 as reported on the NASDAQNasdaq Global Select Market was approximately $9,211,319,000.$16,875,863,000. Shares of common stock held by each executive officer and director and by each person who owns 5% or more of the outstanding common stock have been excluded in that such persons may be deemed affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.

As of April 25, 2016,26, 2019, the registrant had approximately 253,728,000253,920,000 shares of Common Stock outstanding.

Parts of the Proxy Statement for the Registrant's Annual Meeting of Stockholders to be held on August 10, 20168, 2019 are incorporated by reference into Part III of this Annual Report on Form 10-K.

 

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be found throughout this Annual Report, and particularly in Items 1. "Business" and 3. "Legal Proceedings" which containmay include discussions concerning our development efforts, strategy, new product introductions, backlog and litigation. Forward-looking statements involve numerous known and unknown risks and uncertainties and are based on current expectations that could cause actual results to differ materially and adversely from those expressed or implied. Such risks include, but are not limited to, those discussed throughout this document as well as in Item 1A.1A "Risk Factors."Factors" and elsewhere in this document. Often, forward-looking statements can be identified by the use of forward-looking words, such as "may," "will," "could," "should," "expect," "believe," "anticipate," "estimate," "continue," "plan," "would," "intend," "project" and other similar terminology, or the negative of such terms. We disclaim any responsibility to update or revise any forward-looking statement provided in this Annual Report or in any of our other communications for any reason.

Xilinx, Inc. (Xilinx, the Registrant, the Company or we) designs and develops programmable devices and associated technologies, including:

In addition to its programmable platforms, Xilinx provides design services, customer training, field engineering and technical support.

Our PLDs includeXilinx develops highly flexible and adaptive processing platforms that enable rapid innovation across a variety of technologies - from the endpoint to the edge to the cloud. Xilinx is the inventor of field programmable gate arrays (FPGAs)(FPGA), complex programmable logic devices (CPLDs) that our customers program to perform desired logic functions, andhardware programmable SoCs which combineand the Adaptive Compute Acceleration Platform (ACAP), designed to deliver the most dynamic processor technology in the industry standard ARM processor-based systems with programmable logic in a single device. We also design and develop 3D ICs, which consistenable the adaptable, intelligent and connected world of a combination of FPGAs, transceivers and a wide memory interface in a single package to exceed the capacity and bandwidth of monolithic devices.future. Our product portfolio is designed to provide high integration and quick time-to-market for electronic equipment manufacturers in end marketssub-segments such as data center, wireless, wireline, aerospace and wireless communications,defense, test and measurement, industrial, scientific and medical, aerospace and defense,automotive, audio, video and broadcast consumer, automotive and test and measurement.consumer.

We sell our products and services through independent domestic and foreign distributors and through direct sales to original equipment manufacturers (OEMs) and electronic manufacturing service providers (EMS). Sales are generated by these independent distributors, independent sales representative or our direct sales organization.

Xilinx was founded and incorporated in California in February 1984. In April 1990, the Company was reincorporated in Delaware. Our corporate facilities and executive offices are located at 2100 Logic Drive, San Jose, California 95124, and our website address is www.xilinx.com.

There are three principal types of ICs used in most digital electronic systems: processors, which generally are utilized for controlSeveral silicon architectures including microprocessors, graphics processing units (GPUs), application specific standard products (ASSPs), and computing tasks; memory devices, which are used for storing program instructions and data; and logic devices, which generally are used to manage the interchange and manipulation of digital signals within a system. Xilinx designs and develops PLDs, a type of logic device. Alternatives to PLDs may includecustom application specific integrated circuits (ASICs) are used for compute in most digital electronic systems today. Central processing units (CPUs) historically have been the most common platform used by software developers but has limitations when used for modern compute tasks ranging from real-time control to machine learning. Fixed function acceleration and application specific standard products (ASSPs). PLDs,heterogeneous systems ranging from GPUs, ASSPs, and custom ASICs meet some of these compute demands but with a limited range of flexibility.

Xilinx develops adaptable hardware platforms that enable hardware acceleration and ASSPs may be utilized in manyrapid innovation across a variety of technologies-from the endpoint to the edge to the cloud. Xilinx is the inventor of the same types of electronic systems. However, differences in unit pricing, development cost, product performance, reliability, power consumption, capacity, featuresFPGA, hardware programmable SoCs and functionality, ease of use and time-to-market determine which devices are best-suited for specific applications.

PLDs have key competitiveOther advantages over ASICs and ASSPs, including:of Xilinx adaptable platforms include:

PLDsHardware adaptable platforms are generally disadvantaged in terms of relative device size when compared to chipsdevices that are designed to perform a fixed function in a single or small set of applications. ASICs and ASSPs tend to be smaller than PLDsFPGAs, hardware programmable SoCs, and ACAPs performing the same fixed function, resulting in a lower unit cost. 

However, there is a high fixed cost associated with ASIC and ASSP development that is not applicable to PLD customers.customers of hardware programmable ICs. This fixed cost of ASIC and ASSP development is expected to significantly increase onincreases for every next generation technology nodes.node.  From a total cost of development perspective, ASICs and ASSPs have generally been more cost effective when used in high-volume production, and PLDshardware programmable platforms have generally been more cost effective when used in low- to mid-volume production.  However, we expect PLDshardware adaptable platforms to be able to address higher volume applications and gain market share from ASIC and ASSP suppliers as the fixed cost of ASIC and ASSP development increases on next generation technology nodes.

An overview of typical PLD endand market applications for our products is shown in the following table:

Our strategy for expansiongrowth is the displacement ofto displace ASICs, ASSPs and ASSPstraditional PLDs in the development of next generation electronic systems. Additionally, we focus on enabling “building the adaptable intelligent world" with an emphasis on the three major elements described below.

The costs and risks associated with application-specific devices can only be justified for high-volume or highly-specialized commodity products. Programmable platforms, alternatively, are becoming critical for our customers to meet increasingly stringent product requirements - cost, power, performance and density - in a business environment characterized by increased complexity, shrinking market windows, rapidly changing market demands, capped engineering budgets, escalating ASIC and ASSP engineering costs and increased economic and development risk.

With every new generation of FPGAs,our products, our strategy is to increase the performance, density and system-level functionality and integration, while driving down cost and power consumption at each manufacturing process node. This enables us to provide simpler, smarter programmable platforms and design methodologies allowing our customers to focus on innovation and differentiation of their products.

Our PLDsproducts now compete in the logic IC industry, anseveral areas of the semiconductor industry that is intensely competitive and characterized by rapid technological change, increasing levels of integration, product obsolescence and continuous price erosion.  We expect continued competition from our primary PLD competitors such as Intel Corporation (Intel), which acquired Altera Corporation (Altera), Lattice Semiconductor Corporation (Lattice) and Microsemi Corporation (Microsemi)(Microsemi, acquired by Microchip), and from ASSP vendors such as Broadcom Corporation (Broadcom), Marvell Technology Group, Ltd. (Marvell) and Texas Instruments Incorporated (Texas Instruments), as well as from new companies that may enter the traditional programmable logic market segment.such as NVIDIA with whom we historically have not competed. In addition, we expect continued competition from the ASIC market, which has been ongoing since the inception of FPGAs. Other competitors include manufacturers of:

We believe that important competitive factors in the logic IC industry include:

A brief overview of the silicon product offerings is listed in the table below. These products comprise the majority of our revenues. Additionally, some of our more mature product families have been excluded from the table, although they continue to generate revenues. We operate and track our results in one operating segment for financial reporting purposes.

See information under the caption "Results of Operations - Net Revenues" in Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" for information about our revenues from our product families. See also "Note 16.15. Segment Information" to our consolidated financial statements included in Item 8. "Financial Information and Supplementary Data" for information regarding segments.

These devices deliver an ASIC-class advantage, based on the UltraScale architecture and utilizing TSMC's 20SoC20nm gate density process. These devices deliver next generation routing, ASIC-like clocking, and enhancements to logic and fabric to eliminate interconnect bottlenecks while supporting consistent device utilization.

The 28nm product families are fabricated on a high-K metal gate, high performancehigh-performance and low power 28nm process technology. These product families are based on a scalable and optimized architecture, which enables design, IP portability and re-use across all families as well as provides designers the ability to achieve the appropriate combination of I/Oinput/output (I/O) support, performance, feature quantities, packaging and power consumption to address a wide range of applications. The 28nm product families include:

in applications such as industrial motor control, driver assistance and smart surveillance systems, and smart heterogeneous wireless networks.

The Virtex-6 FPGA family consists of 13 devices and is the sixth generation in the Virtex series of FPGAs. Virtex-6 FPGAs are fabricated on a high-performance 40nm process technology. There are three Virtex-6 families, and each is optimized to deliver different feature mixes to address a variety of markets.

The latest generation in the Spartan FPGA series, the Spartan-6 FPGA family, is fabricated on a low-power 45nm process technology. The Spartan-6 family is the PLD industry's only 45nm high-volume FPGA family, consisting of 11 devices in two product families.

Prior generation Virtex families include Virtex-5, Virtex-4, Virtex-II Pro, Virtex-II Virtex-E and the original Virtex family. Spartan family FPGAs include90nm Spartan-3 FPGAs, the Spartan-3E family and the Spartan-3A family. Prior generation Spartan families include Spartan-IIE, Spartan-II, Spartan XL and the original Spartan family.

CPLDs operate on the lowest end of the programmable logic density spectrum. CPLDs are single-chip, nonvolatile solutions characterized by instant-on and universal interconnect. CPLDs combine the advantages of ultra-low power consumption with the benefits of high performance and low cost. Prior generations of CPLDs include the CoolRunner and XC9500 product families.

    

EasyPath FPGAs offer customers a fast, simple method of cost-reducing FPGA designs. EasyPath FPGAs use the same production masks and fabrication process as standard FPGAs and are tested to a specific customer application to improve yield and lower costs. As a result, EasyPath FPGAs provide customers with significant cost reduction when compared to the standard FPGA devices without the conversion risk, engineering effort, or the additional time required to move to an ASIC. The latest generation of EasyPath FPGAs and EasyPath-7 FPGAs provide lower total product cost of ownership for cost-reducing high performance FPGAs.

We offer three types of programmable platforms that support our customers' designs and reduce their development efforts: FPGAs, hardware programmable SoCs, and ACAPs. All devices feature adaptable hardware that enable our customers to implement domain-specific architectures on the same physical device. With both hardware-accelerated performance and flexibility beyond what CPUs, GPUs, ASSPs, and ASICs can offer, customers can introduce new innovations to the market quickly.

The Base Platform is the delivery vehicleFPGAs feature reconfigurable hardware as well as integrated memory, digital signal processing, analog mixed signal, high-speed serial transceivers, and networking cores coupled with advanced software for a broad range of applications in all of ourXilinx’s end markets.

ACAPs are the most recent addition to the silicon portfolio and represent a new silicon offerings useddevice category. Versal (the industry’s first ACAP) combines Scalar Processing Engines, Adaptable Hardware Engines, and Intelligent Engines with leading-edge memory and interfacing technologies to developdeliver powerful heterogeneous acceleration for any application. ACAPs are ideally suited to accelerate a broad set of applications in the emerging era of big data and run customer-specificartificial intelligence. Versal ACAP's hardware and software applicationscan be programmed and optimized by software developers, data scientists, and hardware designs. Released at launch, the Base Platform is comprised of: FPGA silicon; Vivado Design Suitedevelopers alike, enabled by a host of tools, software, libraries, IP, middleware, and frameworks that enable industry-standard design environment; integration support for optional third-party synthesis, simulation and signal integrity tools; reference designs; development boards and IP.flows.

To accommodate the various design methodologies and design flows employed by the wide range of our customers' user profiles such as system designers, algorithm designers, software coders and logic designers, we provide the appropriate design environment tailored to each user profile for design creation, design implementation and design verification. In April 2012, Xilinx introduced the next-generation Vivado Design Suite designed to improve developer productivity resulting in faster design integration and implementation. The Vivado Design Suite hallmarks include an easy-to-use IP-centric design flow and significant improvement in run times. The standards-based Vivado tools include high-level synthesis to provide a more direct flow in retargeting DSPs and general purposegeneral-purpose processor designs into our FPGAs, IP Integrator to rapidly stitch together cores at higher levels of abstraction, and a new analytical place-and-route engine which significantly improves run times. The Vivado Design Suite supports Xilinx 7 series FPGAs and Zynq-7000, our programmable SoCs, as well as the Ultrascale and Ultrascale+ product generations.

Xilinx’s software development environments and embedded platforms offer a comprehensive set of familiar and powerful tools, libraries and methodologies. These environments significantly lower the customer’s development time while also allowing the customer to create custom hardware accelerators easily and on demand. In early 2015, Xilinx also introduced the SDx development environment, which willhas significantly expandexpanded the Xilinx user base to include the broad community of systems and software engineers in both existing and new markets. This innovativeThe SDAccel and SDSoC environments offer GPU-like and familiar embedded application development environment also enables end user and third party platform developers to rapidly define, integrate and verify system level solutions and provide their end customers with a customized programming environment. The SDx family includesruntime experiences for C, C++, and/or open computing language (OpenCL) development, while the SDNet environment which enables the easy creation of high-performance packet processing systems withnetworking engineers to create high level user defined specifications and compilation to highly optimized FPGAs; the SDAccel environment for OpenCL, C and C++ software designers focusing onperformance programmable data center acceleration applications; and the SDSoC environment for All Programmable SoCs and MPSoCs.

Development Boards, Kits and Configuration Products

In addition to the broad selection of legacy development boards presently offered, we have introduced a new unified board strategy that enables the creation of a standardized and coordinated set of base boards available both from Xilinx and our ecosystem vendors, all utilizing the industry-standard extensions that enable customization for market specific applications. Adopting this standard for all of our base boards enables the creation of a scalable and extensible delivery mechanism for all Xilinx programmable platforms.

We also offer comprehensive development kits including hardware, design tools, IP and reference designs that are designed to streamline and accelerate the development of domain-specific and market-specific applications.

Finally, Xilinx offers a range of configuration products including one-time programmable and in-system programmable storage devices to configure Xilinx FPGAs. These programmable read-only memory (PROM) products support all of our FPGA devices.

Third-Party Alliances

Xilinx and certain third parties have developed and continue to offer a robust ecosystem of IP, boards, tools, services and support through the Xilinx alliance program. Xilinx also works with these third parties to promote our programmable platforms through third-party tools, IP, software, boards and design services.

Xilinx engineering services provide customers with engineering resources to augment their design teams and to provide expert design-specific advice. Xilinx tailors its engineering services to the needs of its customers, ranging from hands-on training to full design creation and implementation.

Our research and development (R&D) activities are primarily directed towards the design of new ICs and the development of both new software design automation tools for hardware and embedded software and optimized software tools that expand the reach of our platforms to software developers, the design of logic IP, the adoption of advanced semiconductor manufacturing processes for ongoing cost reductions, performance and signal integrity improvements and lowering PLD power consumption.

As a result of our R&D efforts, we have introduced a number of new products during the past several years including the Virtex, Kintex, and Zynq UltraScale+, Zynq UltraScale+ RFSoCs, Virtex & Kintex UltraScale and Artix, Kintex, Virtex & Zynq 7 Series programAlveo board families. We have enhanced our IP core offerings and introduced our next generation software design suite (Vivado), which is optimized for SDSoC, SDAccel and SDNetSDSoC application development. Through process technology collaboration with our foundry suppliers along with strategic investment in EDAElectronic Design Automation tools and improved design techniques, we have beenwere the first PLD Company to ship 45nm, high-volume, 28nm, 20nm and 16nm FPGA devices.devices in high volume. Additionally, our investment in R&D has allowed us to ship the industry's first 28nm and 16nm devices with embedded ARM technology, the industry's first All Programmable SoC with integrated RF Data Converters, as well as the industry's first 3D IC devices on the 28nm and 20nm process nodes.

We sell our products to OEMs, EMS and to electronic components distributors who resell these products to OEMs and EMS. We are also developing a network of Value Added Resellers (VARs) and Integrated Solution Vendors (ISVs) for our Alveo products. We characterize distributors, VARs and ISVs as our distribution channel.

We use a dedicated global sales and marketing organization, as well asand to a lesser extent, independent sales representatives, to generate sales. In general, we focus our direct demand creation efforts on a limited number of key accounts. DistributorsOur distribution channel and independent sales

Whether Xilinx, the distributor, or the independent sales representative or the distributor identifies the sales opportunity, a local distributor will process and fulfill the majority of all customer orders. In such situations, distributors are the sellers of the products and as such they bear most legal and financial risks generally related to the sale of commercial goods, including such risks as credit loss, inventory shrinkage, theft and foreign currency fluctuations, but excluding certain indemnity and warranty liability.liabilities.

In accordance with our distribution agreements and industry practice, we have granted our authorized distributors the contractual right to return certain amounts of unsold product on a periodic basis and also receive price adjustments for unsold product in the case of a change in list prices subsequent to the initial sale. RevenueRevenues from sales to our distributors and non-distributors are recognized upon the transfer of control, which typically occurs at shipment. Our revenue recognition on shipmentspolicy changed in fiscal 2019, see "Note 2. Summary of Significant Accounting Policies and Concentrations of Risk" to distributors worldwide is deferred until the products are sold to the distributors' end customers.our consolidated financial statements, included in Item 8 "Financial Statements and Supplementary Data."

Avnet, Inc. (Avnet) distributes the substantial majority of our products worldwide. Avnet's revenue accounted for 45%, 43% and 45% of our worldwide net revenues in fiscal 2019, 2018 and 2017, respectively. As of April 2, 2016March 30, 2019 and March 28, 2015,31, 2018, Avnet accounted for 75%37% and 67%61%, respectively, of our total net accounts receivable. Resale of product through Avnet accounted for 50%, 43% and 46% ofWe expect our worldwide net revenues in fiscal 2016, 2015 and 2014, respectively.accounts receivable to fluctuate as we partner with our distributors to manage their inventory requirements. We also use other regional distributors throughout the world. We believe distributors provide a cost-effective means of reaching a broad range of customers while providing efficient logistics services. Since PLDs are standard products, they do not carry many of the inventory risks posed by ASICs. From time to time, we may add or terminate distributors in specific geographies, or move customers to a direct support or fulfillment model as we deem appropriate given our strategies, the level of distributor business activity and distributor performance and financial condition. See "Note 2. Summary of Significant Accounting Policies and Concentrations of Risk" to our consolidated financial statements, included in Item 8. "Financial Statements and Supplementary Data," for information about concentrations of credit risk and "Note 16.15. Segment Information" for information about our revenues from external customers and domestic and international operations.

No other distributor or end customer accounted for more than 10% of our net revenues in fiscal 2016, 20152019, 2018 or 2014.2017.

As a fabless semiconductor company, we do not manufacture wafers used for our IC products or PROMs. Rather, we purchase our wafers from independent foundries including TSMC, United Microelectronics Corporation (UMC) and Samsung Electronics Co., Ltd. (Samsung). TSMC manufactures the wafers for our newest products.Advanced Products.

Precise terms with respect to the volume and timing of wafer production and the pricing of wafers produced by the semiconductor foundries are determined by periodic negotiations with each wafer foundry.

Our strategy is to focus our resources on market development and creating new ICs and software design tools rather than on wafer fabrication. We continuously evaluate opportunities to enhance foundry relationships and/or obtain additional capacity from our main suppliers as well as other suppliers of wafers manufactured with leading-edge process technologies, and we adjust loadings at particular foundries to meet our business needs.

  

Wafers are sorted by the foundry or independent sort subcontractors. Sorted die are assembled by subcontractors. During the assembly process, the wafers are separated into individual die, which are then assembled into various package types. Following assembly, the packaged units are generally tested by independent test subcontractors or by Xilinx personnel. We purchase most of our assembly services from Siliconware Precision Industries LtdLtd. and most of our test services from King Yuan Electronics Company in Taiwan.

Xilinx has achieved and currently maintains quality management systemssystem certification to TL9000/ISO9001 for our facilities in San Jose, California; Longmont, Colorado; SingaporeSingapore; and Hyderabad, India. In addition, Xilinx achieved and currently maintains ISO 14001 and OHSAS 18001 environmental health and safety management system certifications in the San Jose and Singapore locations.

We have acquired various licenses from third parties to certain technologies that are implemented in IP cores or embedded in our PLDs,devices, such as processors. ThoseThese licenses support our continuing ability to make and sell these PLDs to our customers.products. We have also have acquired various licenses to certain third-party proprietary software, open-source software, and related technologies, such as compilers, for our design tools.  Continued use of such software and technology is important to the operation of the design tools upon which customers depend.

We maintain the Xilinx trade name and trademarks, including the following trademarks that are registered in the U.S. and other countries: Xilinx, the Xilinx logo, Artix, CoolRunner, ISE, Kintex, Spartan, Virtex, Vivado, and Zynq. Maintaining these

trademarks, and the goodwill associated with them, is important to our business. We have also obtained the rights to use certain trademarks owned by consortiums and other trademark owners that are related to our products and business.

We intend to continue to protect our IP rights (including, for example, patents, copyrights and trademarks)intellectual property vigorously. We believe that failure to enforce our intellectual property rights or failure to protect our trade secrets effectively could have an adverse effect on our financial condition and results of operations. We incurred, and in the future we may continue to incur, litigation expenses to defend against claims of infringement and to enforce our intellectual property rights against third parties. However, any such litigation may or may not be successful.

Xilinx places a high level of importance on corporate responsibility. Through senior-level sponsorship, regular environmental, health and safety assessments and company-wide performance targets, we strive to achieve a culture that emphasizes contribution to local and global communities through a number of key initiatives:

We strive to meet or exceed industry and regulatory standards for ethical business practices, product responsibility, and supplier management.  All of Xilinx's directors, officers and employees are required to comply not only with the letter of the laws, rules and regulations that govern the conduct of our business, but also with the spirit of those laws.

We continually monitor regulatory requirement and resource trends in order to identify, manage and are committed to setting focused targets for key resources and emissions. These targets address several parameters, including product design; chemical,control activities that have an environmental impact. We focus on the conservations of energy and water use; waste recycling; and emissions. As a company, we focus on reducing natural resource, use,reducing the solid and chemical waste of our operations, avoiding and preventing pollution and minimizing our overall environmental impact with regards to the communities around us and consistent with global climate change efforts.

We are committed to growing strategic relationships with a wide range of local organizations and programs that are designed to develop and strengthen communities located around the world. Xilinx develops local community relationships at key sites through funding and involvement that encourages active participation, teamwork, and volunteerism. Xilinx supports opportunities initiated

We provide a safe and healthy work environment where employeefor all employees. Employee diversity isand inclusion are embraced and opportunities for training, growth, and advancement are strongly encouraged.  The Xilinx Code of Social Responsibility outlines standards to ensure that working conditions at Xilinx are safe and that workers are treated with respect, fairness and dignity.

Certain information regarding the executive officers and persons chosen to become executive officers of Xilinx as of May 17, 201610, 2019 is set forth below:

There are no family relationships among the executive officers of the Company or the Board of Directors.

 

Önder served as the Vice President of Strategic Planning from July 2008 through September 2010President/General Manager and was promoted to the rank of Corporate Vice President, forGlobal Sales, Sensing and IoT at Honeywell International Inc., a diversified technology and manufacturing company that produces a variety of commercial and consumer products. From October 2009 to December 2014, he served as Vice President, Marketing and Core Markets at Analog Devices, Inc. (ADI), a global analog, mixed-signal and digital signal processing technology company. Prior to joining ADI, Mr. Önder worked at EMC Corporation and the same function. Mr. Rangasayee assumedBoston Consulting Group.

We make available, via a link through our investor relations website located at www.investor.xilinx.com, access to our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934, as amended (Exchange Act) as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission (SEC). All such filings on our investor relations website are available free of charge. Printed copies of these documents are also available to stockholders without charge, upon written request directed to Xilinx, Inc., Attn: Investor Relations, 2100 Logic Drive, San Jose, CA 95124. Further, a copy of this Annual Report on Form 10-K is located at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding our filings at http://www.sec.gov. The content on any website referred to in this filing is not incorporated by reference into this filing unless expressly noted otherwise.

The following risk factors and other information included in this Annual Report on Form 10-K should be carefully considered. The risks and uncertainties described below are not the only risks to the Company. AdditionalOur business operations or financial condition could be impaired by risks and uncertainties not presently known to the Company, or that the Company's management does not currently deems immaterial, also may impair its business operations.consider material. If any of the risks described below were to occur, our business, financial condition, operating results and cash flows could be materially adversely affected.

Our success depends in large part on our ability to develop and introduce new products that address customer requirements and compete effectively on the basis of price, density, functionality, power consumption and performance. Consolidation in our industry may increasingly mean thatresult in our competitors havehaving greater resources, or other synergies, that provide them with a competitive advantage in those regards. The success of new product introductions is dependent upon several factors, including:

Our product development efforts may not be successful, our new products may not achieve industry acceptance, andor we may not achieve the necessary volume of production that would lead to further per unit cost reductions. Revenues relating to our mature products are expected to decline in the future, which is normal for our product life cycles. As a result, we may be increasingly dependent on revenues derived from design wins for our newer products as well as anticipated cost reductions in the manufacture of our current products. We rely primarily on obtaining yield improvements and corresponding cost reductions in the manufacture of existing products, and on introducing new products that incorporate advanced features and other price/performance factors that enable us to increase revenues while maintaining consistent margins. To the extent that such cost reductions and new product

 

Most of our wafers are manufactured in Taiwan by UMCTSMC and by TSMC for our newest products. In addition, weUMC. We also have wafers manufactured in South Korea by Samsung Electronics Co., Ltd. Terms with respect to the volume and timing of wafer production and the pricing of wafers produced by the semiconductor foundries are determined bythrough periodic negotiations between Xilinx andwith these wafer foundries, which usually result in short-term agreements that do not provide for long-term supply or allocation commitments. We are dependent on these foundries to supply the substantial majority of our wafers. We rely on TSMC, UMC TSMC and our other foundries to produce wafers with competitive performance attributes. Therefore, the foundries, particularly TSMC whowhich manufactures our newest products, must be able to transition to advanced manufacturing process technologies and increased wafer sizes, produce wafers at acceptable yields and deliver them in a timely manner. Furthermore, we cannot guarantee that the foundries that supply our wafers will offer us competitive pricing terms or other commercial terms important to our business.

We cannot guarantee that our foundries will not experience manufacturing problems, including delays in the realization of advanced manufacturing process technologies or difficulties due to limitations of new and existing process technologies. Furthermore, we cannot guarantee the foundries will be able to manufacture sufficient quantities of our products or that they will continue to manufacture a product for the full life of the product. In addition, weak economic conditions may adversely impact the financial health and viability of the foundries and result in their insolvency or their inability to meet their commitments to us. For example, we may experience supply shortages due to the difficulties foundries may encounter if they must rapidly increase their production capacities from low utilization levels to high utilization levels because of an unexpected increase in demand. Furthermore, we cannot guarantee that the foundries will be able to manufacture sufficient quantities of our products or that they will continue to manufacture a given product for the full life of the product. We maycould also experience supply shortages due to very strong demand for our products, andor a surge in demand for semiconductors in general, which may lead to tightening of foundry capacity across the industry. In addition, weak economic conditions may adversely impact the financial health and viability of the foundries and result in their insolvency or their inability to meet their commitments to us. The insolvency of a foundry or any significant manufacturing problem or insufficient foundry capacity would disrupt our operations and negatively impact our financial condition and results of operations.

Our worldwide operations could be disrupted by earthquakes or other natural disasters such as typhoons, tsunamis, volcano eruptions, fires or floods, as well as disruptions in access to adequate supplies of electricity, natural gas or water. The independent foundries, upon which we rely to manufacture our products, as well as our California and Singapore facilities, are located in regions that are subject to earthquakes and other natural disasters. UMC'sTSMC's and TSMC'sUMC's foundries in Taiwan and our assembly and test partners in other regions as well as many of our operations in California are centeredlocated in areas that have been seismically active in the recent past and some of these areas have also been affected by other natural disasters such as typhoons. Disruption of operations at these foundries and our facilities could cause delays in manufacturing and shipments of our products, and could have a material adverse effect on our results of operations. Any catastrophic event in these locations willwould disrupt our operations, including our manufacturing activities, and our insurance may not cover losses resulting from such disruptions of our operations. This type of disruption could result in our inability to manufacture or ship products,operations, thereby materially adversely affecting our financial condition and results of operations. For example, as a result of the March 2011 earthquake in Japan, production at the Seiko foundryfactory at Sakata was halted temporarily, impacting production of some of our older devices. In addition, suppliers of wafers and substrates were forced to halt production temporarily. Disruption of operations at these foundries for any reason, including other natural disasters such as typhoons, tsunamis, volcano eruptions, fires or floods, as well as disruptions in access to adequate supplies of electricity, natural gas or water could cause delays in shipments of our products, and could have a material adverse effect on our results of operations. Furthermore, natural disasters can also indirectly impact us. For example, our customers' supply of other complimentary products may be disrupted by a natural disaster and may cause them to delay orders of our products. More vertically-integrated competitors may be less exposed to some or all of these and other risks.

The semiconductor industry is highly cyclical and our financial performance has been affected by downturns in the industry. Down cycles are generally characterized by price erosion and weaker demand for our products. Weaker demand for our products resulting from economic conditions in the end markets we serve and reduced capital spending by our customers can result, and in the past has resulted, in excess and obsolete inventories and corresponding inventory write-downs. We attempt to identify changes in market conditions as soon as possible; however, the dynamics of the market in which we operate make prediction of and timely reaction to such events difficult. Due to these and other factors, our past results are not reliable predictors of our future results.

In addition to the challenging market conditions we may face, we have limited visibility into the demand for our products, particularly new products, because demand for our products depends upon our products being designed into our end customers' products and those products achieving market acceptance. Due to the complexity of our customers' designs, the design to volume production process for our customers requires a substantial amount of time, frequently longer than a year. In addition, to this, other factors may affect our end customers' demand for our products, including, but not limited to, end customer program delays and the ability of end customers to secure other complimentarycomplementary products. We also are dependent upon "turns," orders received and turned for shipment in the same quarter. These factors make it difficult for us to forecast future sales and project quarterly revenues. The difficulty in forecasting future sales impairs our ability to project our inventory requirements, which could result, and in the past has resulted, in inventory write-downs or failure to meet customer product demands in a timely manner. In addition, difficulty in forecasting revenues compromises our ability to provide forward-looking revenue and earnings guidance.

Our PLDsproducts now compete in several areas of the ICsemiconductor industry, an industry that is intensely competitive continues to consolidate, and is characterized by rapid technological change, increasing levels of integration, product obsolescence and continuouscontinual price erosion.  We expect increasedcontinued competition from our primary PLD competitors Altera (part of Intel)such as Intel Corporation (Intel), Lattice Semiconductor Corporation (Lattice) and Microsemi Corporation (Microsemi, acquired by Microchip), and from new market entrants.ASSP vendors such as Broadcom Corporation (Broadcom), Marvell Technology Group, Ltd. (Marvell) and Texas Instruments Incorporated (Texas Instruments), as well as from companies such as NVIDIA with whom we historically have not competed. In addition, we expect continued competition from the ASIC market, and fromwhich has been ongoing since the ASSP market continues.inception of FPGAs. We believe that important competitive factors in the logic IC industry include:

Our strategy for expansion in the logic market includes continued introduction of new product architectures that address high-volume, low-cost and low-power applications as well as high-performance, high-density applications. However, we may not be successful in executing this strategy. In addition, we anticipate continued pressure from our customers to reduce prices, which may outpace our ability to lower the cost for established products.

Other competitors include manufacturers of:

Several companies have introduced products that compete with ours or have announced their intention to sell PLD products. To the extent that our efforts to compete are not successful, our financial condition and results of operations could be materially adversely affected.

The benefits of programmable logic have attracted a number of competitors to this segment. We recognize that different applications require different programmable technologies, and we are developing architectures, processes and products to meet these varying customer needs. Recognizing the increasing importance of standard software solutions, we have developed common software design tools that support the full range of our IC products. We believe that automation and ease of design are significant competitive factors in this segment.

We could also face competition from our licensees. In the past we have granted limited rights to other companies with respect to certain aspects of our older technology, and we may do so in the future. Granting such rights may enable these companies to manufacture and market products that may be competitive with some of our older products.

If greater demand for wafers is not offset by an increase in foundry capacity, market demand for wafers or production and assembly materials increases, or if a supplier of our wafers or other materials ceases or suspends operations, our supply of wafers and other materials could become limited. Such shortages raise the likelihood of potential wafer price increases, wafer shortages or shortages in materials at production and test facilities, resulting in potential inability to address customer product demands in a timely manner. For example, in 2011, when certain suppliers located in Japan were forced to temporarily halt production as the result of a natural disaster, this resulted in a tightening of supply for those materials. Such shortages of wafers and materials as well as increases in wafer or materials prices could adversely affect our gross margins and would adversely affect our ability to meet customer demands and lead to reduced revenue.

Resale of product through Avnet accounted for 50%45% of our worldwide net revenues in fiscal 20162019, and, as of April 2, 2016,March 30, 2019, Avnet accounted for 75%37% of our total net accounts receivable. Any adverse change to our relationship with Avnet or our remainingother distributors could have a material impact on our business. Furthermore, if a key distributor materially defaultsdefaulted on a contract or otherwise failsfailed to perform, our business and financial results would suffer. In addition, we are subject to concentrations of credit risk in our trade accounts receivable, which includes accounts of our distributors. A significant reduction of effort by a distributor to sell our products or a material change in our relationship with one or more distributors may reduce our access to certain end customers and adversely affect our ability to sell our products.

In addition, the financial health of our distributors and our continuing relationships with them are important to our success. Unpredictable economic conditions may adversely impact the financial health of some of these distributors, particularly our smaller distributors. This could result inincrease our credit risk exposure relating to the insolvency of certain distributors, the inability of distributors to obtain credit to finance the purchase of our products, or cause distributors to delaydelayed payment of their obligations to us and increase our credit risk exposure.for such purchases. Our business could be harmed if the financial health of these distributors impairsimpaired their performance and we arewere unable to secure alternate distributors.

We are dependent on subcontractors to provide semiconductor assembly, substrate, test and shipment services. Any (i) prolonged inability to obtain wafers with competitive performance and cost attributes, adequate yields or timely delivery, any(ii) disruption in assembly, test or shipment services, (iii) delays in stabilizing manufacturing processes and ramping up volume for new products, (iv) transitions to new service providers, or any(v) other circumstance that would require us to seek alternative sources of supply, could delay shipments and have a material adverse effect on our ability to meet customer demands. In addition, unpredictable economic conditions may adversely impact the financial health and viability of these subcontractors and result in their insolvency or their inability to meet their commitments to us. These factors would result in reduced net revenues and could negatively impact our financial condition and results of operations.

A number of factors can cause our gross margins to fluctuate, including yield, wafer pricing, product mix, market acceptance of our new products, competitive pricing dynamics, licensing costs, geographic and/or market segment pricing strategies can cause our gross margins to fluctuate.strategies. In addition, forecasting our gross margins is difficult because a significant portion of our business is based on turns within the same quarter.

OurWhile our overall inventory levels have recently beenfluctuate over time, the inventory of newer product lines may be higher than historical normsother products due to weaker than anticipated sales and a planned increase in safety stock across newer technologies in anticipation of future revenue growth. In the event demand does not materialize, we may be subject to incremental obsolescence costs. In addition, future product cost reductions could have an increased impact on our inventory valuation which would then impactas well as our operating results.

The average selling prices of our products generally decline as the products mature. We seek to offset the decrease in selling prices through yield improvement, manufacturing cost reductions and increased unit sales. We also continue to develop higher value products or product features that increase the average selling prices of our products, or slow the decline of the average selling price of our products.such prices. However, there is no guarantee that our ongoing efforts will be successful or that they will keep pace with the decline in selling prices of our products, which could ultimately lead to a decline in our revenues and have a negative effect on our gross margins.

In addition to our U.S. operations, we also have significant international operations, including foreign sales offices to support our international customers and distributors, our regional headquarters in Ireland and Singapore and an R&D site in India. Our international operations have grown because we have established certain operations and administrative functions outside the U.S. Sales and operations outside of the U.S. subject us to the risks associated with conducting business in foreign economic and regulatory environments. Our financial condition and results of operations could be adversely affected by unfavorableIf weak economic conditions in countries in which we do significant business or by changes in foreign currency exchange rates affecting those countries. We derive over one-halfhappen, there may be a number of our revenues from international sales, primarily in the Asia Pacific region, Europe and Japan. Past economic weaknesses in these markets adversely affected revenues. Sales to all direct OEMs and distributors are denominated in U.S. dollars. While the recent movements of the Euro and Yen exchange rates against the U.S. dollar had no material impact tonegative effects on our business, increased volatilityincluding customers or potential customers reducing or delaying orders, the insolvency of key suppliers, potentially causing production delays, the inability of customers to obtain credit, and the insolvency of one or more customers. Any of these effects could impact our European and Japanese customers. Currency instability and volatility and disruptions in the credit and capital markets may increase credit risks for some of our customers and may impair our customers' ability to repay existing obligations. Increased currency volatility could also positively or negatively impacteffectively manage inventory levels and collect receivables and ultimately decrease our foreign-currency-denominated costs, assetsnet revenues and liabilities. In addition, any devaluation of the U.S. dollar relative to other foreign currencies may increase the operating expenses of our foreign subsidiaries adversely affecting our results of operations. Furthermore, because we are increasingly dependent on the global economy, instability in worldwide economic environments occasioned, for example, directly or indirectly by political instability, terrorist activity, U.S. or other military actions, and international sanctions or other diplomatic actions (potentially including sanctions adopted or under consideration by the U.S. or European Union with respect to Russia or Russian individuals or businesses), could adversely impact economic activity and lead to a contraction of capital spending by our customers generally or in specific regions. Any or all of these factors could adversely affect our financial condition and results of operations in the future.profitability.

In addition to international sales and support operations and development activities, we purchase our wafers from foreign foundries, have our commercial products assembled, packaged and tested by subcontractors located outside the U.S. and utilize third party warehouse operators to store and manage inventory levels for certain of our products.  All of these activities are subject to the uncertainties associated with international business operations, including global laws and regulations, trade barriers, economic sanctions, tax regulations, import and export regulations, duties and tariffs and other trade restrictions, changes in trade policies, anti-corruption laws, foreign governmental regulations, potential vulnerability of and reduced protection for IP, longer receivable collection periods and disruptions or delays in production or shipments, any of which could have a material adverse effect on our business, financial condition and/or operating results. For example, on March 8, 2016,ZTE Corporation (ZTE) has been subject to trade restrictions under two denial orders issued by the U.S. Department of Commerce added ZTE Corporationin recent years and may become subject to its "Entity List" and placed certain export restrictions on ZTE and its suppliers. While on March 24th,additional denial orders. In 2018, the U.S. Departmentand China also began to impose partial tariffs on each other's products, leading to concerns of Commerce announced a temporary relief from the sanction until June 30, 2016, the announced restrictionsan escalating

trade war, which, if were to fully materialize, could causeresult in general economic downturn or otherwise have a material adverse affecteffect on our business. In addition, the U.S. government has and may continue to focus on the business financial condition and/or operating results.practices of specific foreign companies, including large technology companies based in China, which may result in future U.S. government actions impacting our ability to do business with such companies.  Additional factors that could adversely affect us due to our international operations include rising oil prices and increased costs, or limited supply of other natural resources. Moreover,

Our cash, short-term and long-term investments represent significant assets that may be subject to fluctuating or even negative returns depending upon interest rate movements, changes in credit ratingrisk and financial market conditions. Global credit market disruptions and economic slowdown and uncertainty have in the past negatively impacted the values of various types of investment and non-investment grade securities. The global credit and capital markets may again experience significant volatility and disruption due to instability in the global financial system, uncertainty related to global economic conditions and concerns regarding sovereign financial stability.

Therefore, there is a risk that we may incur other-than-temporary impairment charges for certain types of investments should credit market conditions deteriorate or the underlying assets fail to perform as anticipated. Our future investment income may fall short of expectations due to changes in interest rates or if the decline in fair values of our debt securities iswas judged to be other than temporary. Furthermore, we may suffer losses in principal on our investments including our interest rate swap contracts if we are forced to sell securities that have declined in market value due to changes in interest rates or financial market conditions.

We rely upon patent, copyright, trade secret, mask work and trademark laws to protect our IP. We cannot provide assurance that such IP rights can be successfully asserted in the future or will not be invalidated, violated, circumvented or challenged. From time to time, third parties, including our competitors, have asserted against us patent, copyright andor other IP rights to technologies

that are important to us. Third parties may attempt to misappropriate our IP through electronic or other means or assert infringement claims against our indemnitiesus or us in the future.parties we have agreed to indemnify. Such assertions by third parties may result in costly litigation, indemnity claims or other legal actions, and we may not prevail in such matters or be able to license any valid and infringed patents from third parties on commercially reasonable terms. This could result in the loss of our ability to import and sell our products or require us to pay costly royalties to third parties in connection with sales of our products. Any infringement claim, indemnification claim, or impairment or loss of use of our IP could materially adversely affect our financial condition and results of operations.

In the design and development of new products and product enhancements, we rely on third-party intellectual property such as software development tools and hardware testing tools. Furthermore, certain product features may rely on intellectual property acquired from third parties.parties, including hardware and software tools and products. The design requirements necessary to meet future consumer demands for more features and greater functionality from semiconductor products may exceed the capabilities of the third-party intellectual property or development tools that are available to us. In addition, hardware and software tools and products procured from third parties may contain design or manufacturing defects, including flaws that could unexpectedly interfere with the operation of our products. If the third-party intellectual property that we use becomes unavailable or fails to produce designs that meet consumer demands, our business could be adversely affected.

We rely in part on various ITinformation technology (IT) systems to manage our operations, including, but not limited to, financial reporting, and we regularly evaluate these systems and make changes to improve them as necessary. Consequently, we periodically implement new, or upgrade or enhance existing, operational and IT systems, procedures and controls. Any delay in the implementation of, or disruption in the transition to, new or enhanced systems, procedures or controls, could harm our ability to record and report financial, and management, or operational information on a timely and accurate basis. In addition, hardware and software tools and products procured from third parties included in our IT systems could contain design or manufacturing defects, including flaws that could unexpectedly interfere with the operation of our IT systems. These systems are also subject to power and telecommunication outages or other general system failures. Failure of our IT systems or difficulties in managing them could result in business disruption.

Security breaches, including cyber-attacks, phishing attacks or attempts to misappropriate or compromise confidential or proprietary information or sabotage enterprise IT systems, are becoming increasingly frequent and more sophisticated. We also may be subject to unauthorized access todepend on the uninterrupted operation of our IT systems through a security breach or cyber attack.to manage our operations, store and retrieve business and financial data and facilitate internal communications and communications with customers, subcontractors, suppliers and distribution partners. We experience cyber attackssecurity incidents of varying degrees on an ongoing basis. In the past there have been attempts by third parties to penetrate and/or infect our network and systems with malicious software in an effort to gain access to our network and systems. Third parties may continue to attempt to fraudulently induce employees, users, or customers to disclose sensitive information in order to gain access to our network systems. We seektake steps to detect and investigate any security incidents and prevent their recurrence, but, in some cases, we might be unaware of an incident or its magnitude and effects. Because the techniques used to obtain unauthorized access to andor sabotage ournetworks and systems change frequently, we may be unable to anticipate these techniques or to implement adequate protections. OurThese security incidents may involve unauthorized access, misuse or disclosure of intellectual property or confidential or proprietary information regarding our business could be significantly harmed, and we couldor that of our customers or business partners. We also may be subject to third party claims in the event of suchunauthorized access to our IT systems through a security breach. Our ITbreach or cyber-attack. In the past there have been attempts by third parties to penetrate and/or infect our network and systems

We have acquired technology companies whose products complement our products. We also have made a number of strategic investments in early April 2016, oneother technology companies. We may make similar acquisitions and strategic investments in the future, which present risks, including:

The occurrence of any of these risks could have a new information systemmaterial adverse effect on our business, results of operations, financial condition or cash flows, particularly in North America, and if it cannot successfully complete that implementation, our ability to record and report financial and management information onthe case of a timely and accurate basis may be compromised.  larger acquisition or several concurrent acquisitions or strategic investments.

We are subject to the ongoing internal control provisions of Section 404 of the Sarbanes-Oxley Act of 2002 (the Sarbanes-Oxley Act). Our controls necessary for continued compliance with the Sarbanes-Oxley Act may not operate effectively at all times and may result in a material weakness disclosure. The identification of material weaknesses in internal control, if any, could indicate a lack of proper controls to generate accurate financial statements and could cause investors to lose confidence and our stock price to drop.

We depend on the efforts and abilities of certain key members of management and other technical personnel. Our future success depends, in part, upon our ability to retain, develop and transition such personnel and attract and retain other highly qualified personnel, particularly product engineers. Competition for such personnel is intense and we may not be successful in hiring or retaining new or existing qualified personnel. Changes to the U.S. immigration laws may also impact the availability of qualified personnel. From time to time we have effected restructurings whichthat eliminate a number of positions. Even if such personnel are not directly affected by the restructuring effort, such terminations can have a negative impact on morale and our ability to attract and hire new qualified personnel in the future. If we loseare unable to retain or develop existing qualified personnel or are unable to hire new qualified personnel, as needed, our business, financial condition and results of operations could be seriously harmed. Further, changes to our qualified personnel, including key members of management, may be disruptive to our business, and any failure to successfully assimilate key new hires, or to successfully retain, develop and transition promoted employees, could adversely affect our business and results of operations.

We develop complex and evolving products that include both hardware and software. Despite our testing efforts and those of our subcontractors, defects may be founddiscovered in existing or new products. TheseSuch defects may cause us to incur significant warranty,

support and repair or replacement costs, divert the attention of our engineering personnel from our product development efforts and harm our relationships with customers. Subject to certain terms and conditions, we have agreed to compensate certain customers for limited specified costs they actually incur in the event our hardware products experience epidemic failure. As a result, epidemic failure and other performance problems could result in claims against us or the delay or loss of market acceptance of our products and would likely harm our business. Our customers could also seek damages from us for their losses.

In addition, we could be subject to product liability claims. A product liability claim brought against us, even if unsuccessful, would likely be time-consuming and costly to defend. Product liability risks are particularly significant with respect to aerospace, automotive and medical applications because of the risk of serious harm to users of these products. Any product liability claim, whether or not determined in our favor, could result in significant expense, divert the efforts of our technical and management personnel, and harm our business.

In preparing our financial statements in conformity with accounting principles generally accepted in the U.S., we must make estimates and judgments in applying our most critical accounting policies. Those estimates and judgments have a significant impact on the results we report in our consolidated financial statements. The most difficult estimates and subjective judgments that we make concern valuation of marketable and non-marketable securities, revenue recognition, inventories, long-lived assets including acquisition-related intangibles, goodwill, taxes and stock-based compensation. We base our estimates on historical experience, input from outside experts and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We also have other key accounting policies that are not as subjective, and therefore, their application would not require us to make estimates or judgments that are as difficult, but which nevertheless could significantly affect our financial reporting. Actual results may differ materially from these estimates. If these estimates or their related assumptions change, our operating results for the periods in which we revise our estimates or assumptions could be adversely and perhaps materially affected.

XilinxOur FPGAs and related technologies are subject to EAR, which are administered by the U.S. Department of Commerce. In addition, Xilinxwe may, from time to time, receive technical data from third parties that is subject to the ITAR, which are administered by the U.S. Department of State. EAR and ITAR govern the export and re-export of these FPGAs, the transfer of related technologies, whether in the U.S. or abroad, and the provision of services. We are required to maintain an internal compliance program and security infrastructure to meet EAR and ITAR requirements.

An inability to obtain the required export licenses, or to predict when they will be granted, increases the difficulties of forecasting shipments. In addition, security or compliance program failures that could result in penalties or a loss of export privileges, as well as stringent licensing restrictions that may make our products less attractive to overseas customers, could have a material adverse effect on our business, financial condition and/or operating results.

We market and sell our products directly to OEMs and through authorized third-party distributors which helps to ensure that products delivered to our customers are authentic and properly handled.  From time to time, customers may purchase products bearing our name from the unauthorized "gray market."   These parts may be counterfeit, salvaged or re-marked parts, or parts that have been altered, mishandled, or damaged.  Gray market products result in shadow inventory that is not visible to us, thus making it difficult to forecast supply or demand.  Also, when gray market products enter the market, we and our authorized distributors may compete with brokers of these discounted products, which can adversely affect demand for our products and negatively impact our margins.  In addition, our reputation with customers may be negatively impacted when gray market products bearing our name fail or are found to be substandard.

We are a U.S.-based multinational company subject to tax in multiple U.S. and foreign tax jurisdictions. Our income tax obligations could be affected by many factors, including but not limited to changes to our corporate operating structure, intercompany arrangements and tax planning strategies. A significant portion of our earnings are earned by our subsidiaries outside the U.S. In addition to providing for U.S. income taxes on earnings from the U.S., we provide for U.S. income taxes on the earnings of foreign subsidiaries unless the subsidiaries' earnings are considered permanently reinvested outside the U.S. While we do not anticipate changing our intention regarding permanently reinvested earnings, if certain foreign earnings previously treated as permanently reinvested are repatriated, the related U.S. tax on such repatriated earnings could negatively impact our effective tax rates, financial condition and results of operations.

Our income tax expense is computed based on tax rates at the time of the respective financial period.  Our future effective tax rates, financial condition and results from operations could be unfavorably affected by changes in the tax rates in jurisdictions where our income is earned, by changes in the tax rules and regulations or the interpretation of tax rules and regulations in the jurisdictions in which we do business or by changes in the valuation of our deferred tax assets.

In addition, we are subject to examinations of our income tax returns by the U.S. Internal Revenue Service and other domestic and foreign tax authorities.  We regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from the current examinations. There can be no assurance that the final determination of any of these examinations will not have an adverse effect on our effective tax rates, financial positioncondition and results of operations.

As of April 2, 2016March 30, 2019, we had 2.00 billion authorized common shares of common stock, of which 253.7253.9 million shares were outstanding. In addition, 30.330.0 million shares of common sharesstock were reserved for issuance pursuant to our equity incentive plans and Amended and Restated 1990 Employee Qualified Stock Purchase Plan (ESPP), 20.0 million common shares were reserved for issuance upon conversion or repurchase of the 2017 Convertible Notes and 20.5 million common shares were reserved for issuance upon exercise of warrants.. The availability of substantial amounts of our common sharesstock resulting from the exercise or settlement of equity awards outstanding under our equity incentive plans, or the conversion or repurchase of convertible debentures using common shares, which would be dilutive to existing stockholders, could adversely affect the prevailing market price of our common sharesstock and could impair our ability to raise additional capital through the sale of equity securities.

We have indebtedness that could adversely affect our financial condition and prevent us from fulfilling our debt obligations.

The aggregate amount of our consolidated indebtedness as of April 2, 2016March 30, 2019 was $1.60$1.25 billion (principal amount), which consists of $500.0 million in aggregate principal amount of our 2.125% Notes due 2019 (2019 Notes), $500.0 million in aggregate principal amount of our 3.000% Notes due 2021 (2021 Notes) and $600.0$750.0 million in aggregate principal amount of our 2017 Convertible Notes.2.950% senior notes due 2024 (2024 Notes). We also may incur additional indebtedness in the future. Our indebtedness may:

Our ability to meet our debt service obligations will depend on our future performance, which will be subject to financial, business and other factors affecting our operations, many of which are beyond our control.

The indentures governing the 20192021 Notes and 20212024 Notes contain various covenants limiting our and our subsidiaries' ability to, among other things:

A failure to comply with these covenants and other provisions in these indentures could result in events of default under the indentures, which could permit acceleration of the 20192021 Notes and the 20212024 Notes. Any required repayment as a result of such acceleration could have a material adverse effect on our business, results of operations, financial condition or cash flows.

Not applicable.

Our corporate offices, which include the administrative, sales, customer support, marketing, R&D and manufacturing and testing groups, are located in San Jose, California. This main site consists of adjacent buildings providing 588,000 square feet of space, which we own. We also own one parcel of land totaling approximately 84 acres in South San Jose near our corporate facility. At present, we do not have any plans to develop the land.

We own a 228,000 square foot facility in the metropolitan area of Dublin, Ireland, which serves as our regional headquarters in Europe. The Irish facility is primarily used for service and support for our customers in Europe, R&D, marketing and IT support.

 

We own a 222,000 square foot facility in Singapore, which serves as our Asia Pacific regional headquarters. We own the building but the land is subject to a 30-year lease expiring in November 2035. The Singapore facility is primarily used for manufacturing support and testing of our products and services for our customers in Asia Pacific/Japan, coordination and management of certain third parties in our supply chain and R&D. Excess space in the facility is leased to tenants under long-term lease agreements.

  

We own a 130,000 square foot facility in Longmont, Colorado. The Longmont facility serves as a primary location and data center for our software efforts in the areas of R&D, manufacturing and quality control. In addition, we own a 200,000 square foot facility and 40 acres of land adjacent to the Longmont facility for future expansion. The facility is partially leased to tenants under long-term lease agreements and partially used by us.

We lease office facilities for our engineering design centers in Hyderabad, India; Portland, Oregon; Albuquerque, New Mexico; Edinburgh, Scotland; Ottawa, Canada; Beijing, China; Belfast, Northern Ireland; Cork, IrelandIndia and Gothenberg, Sweden. We also lease salessmaller offices in various locations throughout North America, which include the metropolitan areas of Chicago, Dallas, Detroit, Montreal, Nashua, Raleigh, San Diego and Toronto as well as international sales offices located in the metropolitan areas of Bangalore, Beijing, Chengdu, Brussels, Helsinki, Hong Kong, London, Milan, Munich, Nanjing, Osaka, Paris, Seoul, Shanghai, Shenzhen, Stockholm, Taichung, Taipei, Tel Aviv, Tokyo and Xi'an.other regions.

For information regarding our legal proceedings, see "Note 17.16. Litigation Settlements and Contingencies" to our consolidated financial statements, included in Item 8. "Financial Statements and Supplementary Data", which is incorporated herein by reference.

Not applicable.

Our common stock trades on the NASDAQNasdaq Global Select Market under the symbol XLNX. As of May 6, 2016,3, 2019, there were approximately 500480 stockholders of record. Since many holders' shares are listed under theirrecord, which does not include beneficial owner of stock held in street name (i.e., through a brokerage firms' names, the actual number of stockholders is estimated by us to be approximately 150,000.

On April 26, 2016,18, 2019, our Board of Directors declared a cash dividend of $0.33$0.37 per common share for the first quarter of fiscal 2017.2020. The dividend is payable on June 8, 20163, 2019 to stockholders of record as of May 18, 2016.16, 2019.

See "Equity Compensation Plan Information," included in Item 12. "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" in Part III of this Form 10-K for information regarding our equity compensation plans.

See "Note 14.13. Stockholders' Equity" to our consolidated financial statements, included in Item 8. "Financial Statements and Supplementary Data" for information regarding our stock repurchase plans.

The following graph shows a comparison of cumulative total return for our common stock, the Standard & Poor's 500 Stock Index (S&P 500 Index), and the Standard & Poor's 500 Semiconductors Index (S&P 500 Semiconductors Index). The graph covers the period from April 1, 2011,March 28, 2014, the last trading day before our fiscal 2011,2014, to April 1, 2016,March 29, 2019, the last trading day of our fiscal 2016.2019. The graph and table assume that $100 was invested on April 1, 2011March 28, 2014 in our common stock, the S&P 500 Index and the S&P 500 Semiconductors Index and that all dividends were reinvested.

Consolidated Statement of Income Data

Consolidated Balance Sheet Data

This discussion and analysis of financial condition and results of operations should be read in conjunction with our consolidated financial statements and accompanying notes included in Item 8. "Financial Statements and Supplementary Data."

We design, develop and developmarket programmable devices and associated technologies, including advanced ICs in the form of PLDs, boards, software design tools and predefined system functions delivered as IP. In addition to our programmable platforms, we provide design services, customer training, field engineering and technical support. Our PLDs include FPGAs, CPLDs and programmable SoCs. These devices are standard products that our customers program to perform desired logic functions. Our products are designed to provide high integration and quick time-to-market for electronic equipment manufacturers in end markets such as wirelineCommunication & Data Center, Industrial, Aerospace & Defense, and wireless communications, aerospace and defense, industrial, scientific and medical, audio, video and broadcast, and automotive.Automotive, Broadcast & Consumer. We sell our products globally through an independent domestic and foreign distributorsdistributor channel and through direct sales to OEMs by selected independent sales representative firms and by a direct sales management organization.

The methods, estimates and judgments we use in applying our most critical accounting policies have a significant impact on the results we report in our consolidated financial statements. The SEC has defined critical accounting policies as those that are most important to the portrayal of our financial condition and results of operations and require us to make our most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, our critical accounting policies include: valuation of marketable securities, which impacts losses on debt and equity securities when we record impairments; revenue recognition, which impacts the recording of revenues; and valuation of inventories, which impacts cost of revenues and gross margin. Our critical accounting policies also include: the assessment of impairment of long-lived assets which impacts their valuation; the assessment of the recoverability of goodwill, which impacts goodwill impairment; accounting for income taxes, which impacts the provision or benefit recognized for income taxes, as well as, the valuation of deferred tax assets recorded on our consolidated balance sheet;sheet and valuation and recognition of stock-based compensation,accounting for business combinations, which impacts gross margin, R&D expenses,the valuation of tangible and selling, generalintangible assets recognized and administrative (SG&A) expenses.liabilities assumed. Below, we discuss these policies further, as well as the estimates and judgments involved. We also have other key accounting policies that are not as subjective, and therefore, their application would not require us to make estimates or judgments that are as difficult, but which nevertheless could significantly affect our financial reporting.

Our short-term and long-term investments includeconsist of primarily marketable debt, and to a lesser extent, equity securities. As of April 2, 2016,March 30, 2019, we had marketable debt and equity securities with a fair value of $3.26$2.74 billion.

We determine the fair values for marketable debt and equity securities using industry standard pricing services, data providers and other third-party sources and by internally performing valuation testing and analyses. See "Note 3. Fair Value Measurements" to our consolidated financial statements, included in Item 8. "Financial Statements and Supplementary Data," for details of the valuation methodologies. In determining if and when a decline in value below the adjusted cost of marketable debt and equity securities is other than temporary, we evaluate on an ongoing basis the market conditions, trends of earnings, financial condition, credit ratings, any underlying collateral and other key measures for our investments. We did not record any other-than-temporary impairment for marketable debt or equity securities in fiscal 2016, 20152019, 2018 or 2014.2017. Marketable equity securities are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded through the consolidated statements of income beginning in fiscal 2019 after the adoption of Accounting Standards Update (ASU) 2016-01.

SalesRevenue from sales to our distributors are made under agreements providingis recognized upon the transfer of control, which typically occurs at shipment, and is reduced by estimated allowances for distributor price adjustments and rights of return under certain circumstances. Revenuereturn. The distributor price adjustments are estimated using the expected value method based on an analysis of actual and costs relatingforecasted ship and debit claims, at the distributor and part level to distributor sales are deferred until products are sold by the distributors to the distributors' end customers.account for current pricing and business trends. For fiscal 2016,2019, approximately 60%54% of our net revenues were from products sold to distributors primarily for subsequent resale to OEMs or their subcontract manufacturers. Revenue recognition depends on notification from the distributor that product has been sold to the distributor's end customer. Also reported by the distributor are product resale price, quantity and end customer shipment information, as well as inventory on hand. Reported distributor inventory on hand is reconciled to deferred revenue balances monthly. We maintain system controls to validate distributor data and to verify that the reported information is accurate. Deferred income on shipments to distributors reflects the estimated effects of distributor price adjustments and the estimated amount of gross margin expected to be realized when distributors sell through product purchased from us. Accounts receivable from distributors are recognized and inventory is relieved when title to inventories transfers, typically upon shipment from Xilinx at which point we have a legally enforceable right to collection under normal payment terms.

Revenue from sales to our directnon-distributor customers is recognized net of sales incentives (if any) upon shipment provided that persuasive evidencetransfer of control to the customer, which typically occurs at shipment. Sales returns and allowances on product sales are recorded as a sales arrangement exists, the price is fixed, title has transferred, collectionreduction of resulting receivables is reasonably assured, and there are no customer acceptance requirements and no remaining significant obligations. For each of the periods presented, there were no significant formal acceptance provisions with our direct customers.revenue.

Revenue from software licenseslicense agreements and renewals is deferred and recognized as revenue over the term of the licenses of one year.at commencement date. Revenue from support services is recognized when the service is performed. Revenue from Support Products, which includes software licenses and support services sales, waswere less than 5%2% of net revenues for all of the periods presented.

Inventories are stated at the lower of actual cost (determined using the first-in, first-out method) or market (estimated net realizable value). The valuation of inventory requires us to estimate excess or obsolete inventory as well as inventory that is not of salable quality. We review and set standard costs quarterly to approximate current actual manufacturing costs. Our manufacturing overhead standards for product costs are calculated assuming full absorption of actual spending over actual volumes. Given the cyclicality of the market, the obsolescence of technology and product lifecycles, we write down inventory based on forecasted demand and technological obsolescence. These forecasts are developed based on inputs from our customers, including bookings and extended but uncommitted demand forecasts, and internal analyses such as customer historical purchasing trends and actual and anticipated design wins, as well as market and economic conditions, technology changes, new product introductions and changes in strategic direction. These factors require estimates that may include uncertain elements. The estimates of future demand that we use in the valuation of inventory are the basis for our published revenue forecasts, which are also consistent with our short-term manufacturing plans. The differences between our demand forecast and the actual demand in the recent past have not resulted in any material write down in our inventory. If our demand forecast for specific products is greater than actual demand and we fail to reduce manufacturing output accordingly, we could be required to write down additional inventory, which would have a negative impact on our gross margin.

Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment if indicators of potential impairment exist. Impairment indicators are reviewed on a quarterly basis. When indicators of impairment exist and assets are held for use, we estimate future undiscounted cash flows attributable to the assets. In the event such cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their estimated fair values based on the expected discounted future cash flows attributable to the assets or based on appraisals. Factors affecting impairment of assets held for use include the ability of the specific assets to generate separately identifiable positive cash flows.

Long-lived assets such as other intangible assets and property, plant and equipment are considered non-financial assets, and are only measured at fair value when indicators of impairment exist.

Goodwill is not amortized but is subject to impairment tests on an annual basis, or more frequently if indicators of potential impairment exist, and goodwill is written down when it is determined to be impaired. We perform an annual impairment review in the fourth quarter of each fiscal year and compare the fair value of the reporting unit in which the goodwill resides to its carrying value. If the carrying value exceeds the fair value, the goodwill of the reporting unit is potentially impaired. For purposes of impairment testing, Xilinx operates as a single reporting unit. We use the quoted market price method to determine the fair value of the reporting unit. Based on the impairment review performed during the fourth quarter of fiscal 2016,2019, there was no impairment of goodwill in fiscal 2016.2019. Unless there are indicators of impairment, our next impairment review for goodwill will be performed and completed in the fourth quarter of fiscal 2017.2020. To date, no impairment indicators have been identified.

Xilinx is a multinational corporation operating in multiple tax jurisdictions. We must determine the allocation of income to each of these jurisdictions based on estimates and assumptions and apply the appropriate tax rates for these jurisdictions. We undergo routine audits by taxing authorities regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. Tax audits often require an extended period of time to resolve and may result in income tax adjustments if changes to the allocation are required between jurisdictions with different tax rates.

In determining income for financial statement purposes, we must make certain estimates and judgments. These estimates and judgments occur in the calculation of certain tax liabilities and in the determination of the recoverability of certain deferred tax assets, which arise from temporary differences between the tax and financial statement recognition of revenue and expense. Additionally, we must estimate the amount and likelihood of potential losses arising from audits or deficiency notices issued by taxing authorities. The taxing authorities' positions and our assessment can change over time resulting in a material effect on the provision for income taxes in periods when these changes occur.

We must also assess the likelihood that we will be able to recover our deferred tax assets. If recovery is not likely, we must increase our provision for taxes by recording a reserve in the form of a valuation allowance for the deferred tax assets that we estimate will not ultimately be recoverable.

We perform a two-step approach to recognize and measure uncertain tax positions relating to accounting for income taxes. 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 ultimately realized. See "Note 15. Income Taxes" to our consolidated financial statements included in Item 8. "Financial Statements and Supplementary Data."

DeterminingWe use the appropriate fair-value modelacquisition method of accounting and calculatingallocate the fair value of stock-based awards atpurchase consideration to the dateassets acquired and liabilities assumed from the acquiree based on their respective fair values as of grant requires judgment. We use the Black-Scholes option-pricing model to estimateacquisition date. The excess of the fair value of rightspurchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, we make significant estimates and assumptions, especially with respect to purchase shares under our ESPP. Option pricing models, including the Black-Scholes model, also require the useintangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of input assumptions, includingfuture growth and margins, future changes in technology, expected stock price volatility, expected life, expected dividend rate, expected forfeiture ratecost and expected risk-free rate of return. We use implied volatilitytime to develop in-process research and development, brand awareness and discount rates. Fair value estimates are based on traded options in the open market asassumptions that we believe implied volatility is more reflective ofa market conditions and a better indicator of expected volatility than historical volatility. We will continue to review our input assumptions and make changes as deemed appropriate depending on new information that becomes available. Higher volatility and expected lives resultparticipant would use in a proportional increase to stock-based compensation determined atpricing the date of grant. The expected dividend rate and expected risk-free rate of return do not have as significant an effect on the calculation of fair value.

The following table sets forth statement of income data as a percentage of net revenues for the fiscal years indicated:indicated. Prior year balances have been restated to reflect the retrospective application of the new revenue recognition accounting standard. Please refer to "Note 2. Summary of Significant Accounting Policies and Concentrations of Risk." to our consolidated financial statements, included in Item 8. “Financial Statements and Supplementary Data,” for additional information.

Net revenues in fiscal 20162019 were $2.21$3.06 billion, a decreasean increase of 7%24% as compared to fiscal 2015. New Product revenues2018. Revenues from Advanced Products increased 20%43% in fiscal 2016 but were offset by declines2019 while revenues from our Mainstream and Base Products.Core Products remained relatively stable. The increase in NewAdvanced Products was due to higher NewAdvanced Products sales across all end markets, primarilyparticularly in Industrial, Aerospace & Defense and Communications & Data Center.Communications. Net revenues in fiscal 20152018 were flat$2.47 billion, an increase of 5% as compared to fiscal 2014. New Product revenues2017. Revenues from Advanced Products increased 43%20% in fiscal 20152018 but were partially offset by declines from our Mainstream, Base and SupportCore Products. The increase in NewAdvanced Products was due to higher sales across all end markets, primarilyespecially in Communications & Data Center and Industrial, Aerospace & Defense.TME. See also "Net Revenues by Product" and "Net Revenues by End Markets" below for more information on our product and end market categories.

We sell our products to global manufacturers of electronic products in end markets such as wirelineCommunication & Data Center, Industrial, Aerospace & Defense, and wireless communications, aerospace and defense, industrial, scientific and medical and audio, video and broadcast.Automotive, Broadcast & Consumer. The vast majority of our net revenues are generated byfrom sales of our semiconductor products, but we also generate sales from support products. We classify our product offerings into fourtwo categories: New, Mainstream, BaseAdvanced Products and Support Products. The composition of each product category is as follows:Core Products:

These product categories except for Support Products, are modified on a periodic basis to better reflect the maturity of the products and advances in technology. The most recent modification was made on March 29, 2015,April 3, 2016, which was the beginning of our fiscal 2016. The amounts for2017, whereby we reclassified our product categories to be consistent with how these categories are analyzed and reviewed internally. Specifically, we have grouped the prior periods presented have been reclassified to conform toproducts manufactured at the new categorization. New28nm, 20nm and 16nm nodes into a category named Advanced Products include our most recent product offerings andwhile all other products are typically designed into our customers' latest generation of electronic systems. Mainstream Products are generally several years old and designed into customer programs that are currently shippingincluded in full production. Base Products are older than Mainstream Products with demand generated generally by the customers' oldest systems still in production. Support Products are generally products or services sold in conjunction with our semiconductor devices to aid customers in the design process.a category named Core Products.

Net revenues by product categories for the fiscal years indicated were as follows:

 

Net revenues from NewAdvanced Products increased significantly in fiscal 2016 as a result of2019 driven by sales growth in 28nm, 20nm and, in particular, 16nm product families. Sales from our 16nm products were over $500.0 million, while sales from our 20nm and 28nm products exceeded $400.0 million and 20nm product families.$900.0 million, respectively, during fiscal 2019. In fiscal 2018, growth across all nodes of our Advanced Products families contributed to the strong revenue growth versus the comparable prior year period. Sales from our 28nm products were more than $650.0approximately $900.0 million, while sales from our 20nm and 16nm products exceeded $90.0$300.0 million and $100.0 million, respectively, during fiscal 2016.2018. We expect sales of NewAdvanced Products to continue to grow as more customer programs enter into volume production with our 28nm and 20nm16nm products. In fiscal 2015, strong market acceptance of our 28nm product family contributed to the majority of the revenue growth versus the comparable prior year period.

Net revenues from MainstreamCore Products were flat in fiscal 2019, while they decreased in both fiscal 2016 and fiscal 20152018 from the comparable prior year periods. The decreasesIn fiscal 2019 the increase in both periods weresales from Spartan-6 product was offset by declines in sales from our Virtex-6 and Virtex-5 product families, while the decrease in fiscal 2018 was largely due to the decline in sales from our Virtex-5, product family,Virtex-6 and to a lesser extent due to the decline in sales from our Virtex-6 product family.

Our end market revenue data is derived from our understanding of our end customers'customers’ primary markets. In the beginning of fiscal 2016,markets, which is based on reports provided by distributors and our internal records. To provide additional visibility, starting April 1, 2018, we modifiedclassify our end markets into businesses with similar market categories by combining the Other category, which was previously a stand-alone category, into the Communications &drivers: Data Center category. Amounts for prior periods presented have been reclassified accordingly. As such, net revenues by end markets were reclassified into the following three categories: Communications & Data Center;TME; Automotive, Broadcast & Consumer; Communications; and Industrial, Aerospace & Defense;Defense. Additionally, we classify revenue recognized from shipments to distributors, but not yet subsequently sold to the end markets, and Broadcast, Consumer & Automotive.not identifiable to an end market, as Channel revenue. The Channel revenue represents the difference between the shipments to distributors and what the distributors subsequently sold to the end customers within the given period. The percentage change calculation in the table below represents the year-to-year dollar change in each end market.

Net revenues by end markets for fiscal years indicated were as follows:

Net revenues from Communications & Data Center decreased& TME increased, in terms of absolute dollars, in both fiscal 20162019 and 20152018 from the comparable prior year periods. The decreases wereincrease in fiscal 2019 was primarily due to lowerhigher sales from wireless communications,Data Center. The increase in fiscal 2018 from the comparable prior year period was due to higher sales from TME, and to a lesser extent, wireline communications.Data Center.

Net revenues from Industrial, Aerospace & Defense decreased slightly in fiscal 2016increased, in terms of absolute dollars, in both fiscal 2019 and 2018 from the comparable prior year period.periods. The decrease in fiscal 2016 was primarily due to a decline in sales from certain key programs within aerospace and defense, partially offset by increases in both test & measurementfiscal 2019 and industrial, scientific & medical. Net revenues from Industrial, Aerospace & Defense increased in fiscal 2015 compared to the prior year period due to higher sales across all applications, with industrial, scientific, and medical applications driving most of the growth.

Channel revenue was a decline in audio, video and broadcast. Net revenues from Broadcast, Consumer & Automotive decreasedpositive amount in fiscal 2015. The decrease2019, because shipments to distributors exceeded what the distributors subsequently shipped to their customers during such period. In fiscal 2018, Channel revenue was duea negative amount because shipments to a decline in sales from consumer applications thatdistributors was partially offset by increases in sales from automotive as well as audio, video and broadcast applications.lower than what the distributors subsequently shipped to their customers during such period.

Geographic revenue information reflects the geographic location of the distributors, OEMs or contract manufacturers who purchased our products. This may differ from the geographic location of the end customers. Net revenues by geography for the fiscal years indicated were as follows:

 

Net revenues in North America decreasedincreased in both fiscal 20162019 and 2018 from the comparable prior year period.periods. The decreaseincrease in fiscal 2019 was primarily due to a decline inhigher sales from certain key programs within aerospaceData Center and defense;Wireline, and to a lesser extent from wireless communications as well. Net revenues in North America increasedthe increase in fiscal 2015 from the comparable prior year period. The increase2018 was primarily due to strongerhigher sales from certain key programs within Industrial, Aerospace & Defense, which more than offset lower sales from Broadcast, Consumer & Automotive and Other.Defense.

Net revenues in Asia Pacific decreasedincreased in both fiscal 20162019 and 2018 from the comparable prior year period.periods. The decreaseincrease in fiscal 20162019 was primarily due to a decrease inhigher sales from Communications & Data Center. Net revenues in Asia Pacific decreased slightlyWireless, and to a lesser extent, from Industrial, Scientific and Medical, while the increase in fiscal 2015 from the comparable prior year period, which2018 was primarily driven by lowerhigher sales from consumer applications, partially offset by increases in salesConsumer, and to a lesser extent from wireless applicationsIndustrial, Scientific and all applications within Industrial, Aerospace & Defense.Medical.

Net revenues in Europe decreasedincreased in both fiscal 20162019 and 2018 from the comparable prior year period. The decreaseperiods. In fiscal 2019, the increase was primarily due to weakerhigher sales from wireless communications, whichAutomotive, while in fiscal 2018 the increase was driven by revenue growth from TME, partially offset by increases in saleslower revenues from test and measurement and automotive applications. Net revenues in Europe decreased in fiscal 2015 from the comparable prior year period as sales decreased in all end markets with the exception of Broadcast, Consumer & Automotive; wireless and aerospace and defense applications drove much of the decline.

Net revenues in Japan decreasedincreased in both fiscal 20162019 and 2018 from the comparable prior year period. The decrease inperiods. In fiscal 20162019, the increase was primarily driven by lowerhigher sales in Communications & Data Center, which more than offsetTME and Audio, Video and Broadcast, while in fiscal 2018 the increase in sales from automotive. The increase in fiscal 2015 net revenues in Japan, as compared to the prior year period, was primarily driven by increasedhigher sales in TME and Industrial, Aerospace & DefenseScientific and Broadcast, Consumer & Automotive.Medical.

Gross margin was 0.5lower by 1.1 percentage points lower in fiscal 20162019, while remaining flat in 2018, from the comparable prior year period.periods. The decrease in gross margin in fiscal 2019 was primarily due to end-market mix, as the percentage of revenue derived from Wireless (which has relatively lower gross margin) has increased manufacturing overhead expenses from the ramp of New Products.

Gross margin may be affected in the future due to multiple factors, including but not limited to, those set forth above in "Risk Factors," included in Part I of this Form 10-K, shifts in the mix of customers and products, competitive-pricing pressure, manufacturing-yield issues and wafer pricing. WeWhile we expect to mitigate any adverse impacts from these factors by continuing to improve yields on our NewAdvanced Products, improve manufacturing efficiencies and improve average selling price management.management, continuing growth in Wireless driven by both the continued deployment of 4G Long Term Evolution (LTE) networks and the ramp up global deployment of 5G wireless networks would negatively impact gross margin in the future.

In order to compete effectively, we pass manufacturing cost reductions to our customers in the form of reduced prices to the extent that we can maintain acceptable margins. Price erosion is common in the semiconductor industry, as advances in both product architecture and manufacturing process technology permit continual reductions in unit cost. We have historically been able to offset much of this revenue decline in our mature products with increased revenues from newer products.

R&D spending increased $8.2by $103.2 million or 2%,16% during fiscal 20162019, and by $38.4 million or 6% during fiscal 2018, from the comparable prior year period.periods. The increase wasincreases were primarily attributable to higher employee compensation (including stock-based compensation) related, as we increased headcount to our next generation productsupport the development of new products. For fiscal 2018, the increase was partially offset by a decrease inlower mask and wafer spending due to timing.spending.

SG&A expenses decreased $22.0increased by $36.1 million or 6%10% during fiscal 20162019, and by $27.1 million or 8% during fiscal 2018, from the comparable prior year period as we incurred lowerperiods. The increase in fiscal 2019 was primarily due to higher variable spending (dueassociated with higher revenue and operating margin such as sales commission and incentive compensation expense, as well as expenses related to lower revenues)merger and acquisition activities. In fiscal 2018, the increase was largely due to higher employee compensation in fiscal 2016 (primarily due(including stock-based compensation) from increased headcount relating to restructuring measures that we implemented duringrevenue growth.

During the fourth quarter of fiscal 2015). SG&A2018, we announced the transition of our President and Chief Executive Officer position, whereby Moshe Gavrielov resigned from those roles and Victor Peng assumed these roles. Additionally, we also implemented restructuring measures to realign resources and drive overall operating efficiencies, which impacted approximately 60 positions in various geographies and functions worldwide. We recorded total transition charges of $33.4 million in the fourth quarter of fiscal 2018, primarily related to severance pay expenses decreased $24.9 million or 7% duringand other benefits. As of the end of fiscal 2015 from2019, the comparable prior year period as we incurred lower variable spendingremaining accrual for severance and legal expenses in fiscal 2015.other benefits was immaterial.

(Deephi Tech) acquisition in the second quarter of fiscal 2019 (See "Note 20. Business Combination" to our consolidated financial statements included in Item 8. "Financial Information and Supplementary Data" for more information). The amortization expense decreased in fiscal 2018 as compared to prior year period as certain intangibles were fully amortized in fiscal 20152017 and during fiscal 2016, the amortization expense decreased during fiscal 2016 as compared to the prior year period. Amortization expense during fiscal 2015 was relatively flat from the comparable prior year period as there was no significant change in the acquisition-related intangible assets.2018.

OurIn fiscal 2019 we had net interest and other expense increased by $18.1income of $11.5 million as compared to net interest and other income of $5.4 million in fiscal 2016 from the comparable prior year period.2018. The increase was primarily due to a smaller gain on the sale of securities in our investment portfolio, partially offset by higher interest income from the investment portfolio. DuringIn fiscal 20152018, we also had a gain on salenet interest and other income of land, which we did not have in fiscal 2016.

The difference between the U.S. federal statutory tax rate of 35%21% and our effective tax rate in all periods isfiscal 2019 was primarily due to the favorable impact of income earned in lower tax rate jurisdictions, which was partially offset by the new tax on GILTI.

The decrease in the effective tax rate for which nofiscal 2019 from the comparable prior year period was primarily due to the U.S. federal one-time transition tax of $590.2 million recognized in fiscal 2018, partially offset by the reversal of deferred tax liabilities related

to U.S. federal income tax hason a portion of unremitted foreign earnings that had been provided, as we intend to permanently reinvest these earnings outsideaccrued through fiscal 2017 in the amount of the U.S.$381.7 million.

The increase in the effective tax rate in fiscal 20162018 compared with fiscal 20152017 was primarily due to the U.S. federal one-time transition tax of $590.2 million recognized in fiscal 2018, partially offset by the reversal of deferred tax liabilities related to U.S. federal income tax on a decreaseportion of unremitted foreign earnings that had been accrued through fiscal 2017 in the amount of permanently reinvested foreign earnings for which no U.S. taxes were provided. This was partially offset by a decrease to the rate due to a shift in geographic mix of earnings with less earnings subject to U.S. tax.$381.7 million.

We have historically used a combination of cash flows from operations and equity and debt financing to support ongoing business activities, acquire or invest in critical or complementary technologies, purchase facilities and capital equipment, repurchase our common stock and debentures under our repurchase program, pay dividends and finance working capital. Additionally, our investments in debt securities are liquid and available for future business needs.

As of April 2, 2016,March 30, 2019, we had $2.24$1.80 billion of cash, cash equivalents and short-term investments held by our non-U.S. jurisdictions. Fromentities. The recent TCJA that was signed into law on December 22, 2017, subjects U.S. companies to a financial statement perspective, approximately $992.2 millionone-time transition tax on total post-1986 earnings and profits of the $2.24their foreign subsidiaries. The TCJA also generally allows companies to repatriate these accumulated foreign earnings without incurring additional U.S. federal taxes beginning after December 31, 2017.  Accordingly, substantially all $1.80 billion of cash, cash equivalents and short-term investments held by our non-U.S. jurisdictions wasentities will be available for use in the U.S. without incurring additional U.S. federal income taxestaxes. The one-time transition tax liability is payable in excesseight annual installments, as outlined in "Contractual Obligations" below. The first installment was paid in the second quarter of the amounts already accrued infiscal 2019. The second installment is classified as a current income tax payable. See “Note 14. Income Taxes” to our consolidated financial statements, as of April 2, 2016. The remaining amount of non-U.S. cash, cash equivalentsincluded in Item 8. "Financial Statements and short-term investments was permanently reinvested and, therefore, no U.S. current or deferred taxes accrued on this amount, which is intendedSupplementary Data," for investment in our operations outsideadditional information about the U.S. We believe our U.S. sources of cash and liquidity are sufficient to meet our business needs in the U.S. and do not expect that we will need to repatriate the funds we have designated as permanently reinvested outside the U.S. Under current tax laws, should our plans change and we were to choose to repatriate some or all of the funds we have designated as permanently reinvested outside the U.S., such amounts would be subject to U.S. income taxes and applicable non-U.S. income and withholding taxes.one-time transition tax.

Net cash used in investing activities was $423.9$690.5 million during fiscal 2016,2019 as compared to net cash provided by investing activities of $13.0$948.2 million in fiscal 2015.2018. Net cash used in investing activities during fiscal 20162019 consisted of $380.0$312.5 million of net purchases of available-for-sale securities, $34.0$234.1 million forof net cash paid in connection with the Deephi Tech acquisition, $89.0 million of purchases of property, plant and equipment and $10.0other intangibles and $54.8 million of other investing activities.

Net cash used in financing activities was $694.9$1.04 billion in fiscal 2019, as compared to $555.6 million in fiscal 2016, as compared to $884.8 million in fiscal 2015.2018. Net cash used in financing activities during fiscal 20162019 consisted of $443.2$500.0 million of cash payment to repurchase common stock and $319.0for settlement of our $500.0 million principal amount of 2.125% Notes issued in March 2014 (2019 Notes), $364.2 million of dividend payments to stockholders and $161.6 million of payment to repurchase common stock, which waswere partially offset by $51.1$48.7 million of net proceeds from issuance of common stock under employee stock plans and $16.2 million for excess tax benefits from stock-based compensation.plans.

Accounts receivable increaseddecreased by $60.8$47.1 million and days sales outstanding (DSO) increaseddecreased to 52 days at April 2, 2016 from 3840 days at March 28, 2015.30, 2019 from 56 days at March 31, 2018. The increasedecrease was primarily due to strong collections during the year as well as timing of shipments and collections.customer shipments. Our accounts receivable were primarily current.

Inventories decreasedincreased to $178.6 million as of April 2, 2016 from $231.3$315.4 million as of March 28, 2015,30, 2019 from $236.1 million as of March 31, 2018, while combined inventory days at Xilinx and distribution decreasedincreased to 109 days at April 2, 2016 from 130120 days at March 28, 2015.30, 2019 from 116 days at March 31, 2018. We attempt to maintain sufficient levels of inventory in various product, package and speed configurations in order to keep lead times short and to meet forecasted customer demand as well as address potential supply constraints. Conversely, we also attempt to minimize the handling costs associated with maintaining higher inventory levels and to fully realize the opportunities for cost reductions associated with architecture and manufacturing process advancements. We continually strive to balance these two objectives to provide excellent customer response at a competitive cost.

During fiscal 2016,2019, we invested $34.0$89.0 million in property, plant and equipment and other intangibles, as compared to $29.6$49.9 million in fiscal 2015.2018. Primary investments in fiscal 20162019 were for machinery and equipment, building improvements, computer equipment and equipment related to the support of our new products development and infrastructures.

Current liabilities decreased to $946.1$475.0 million at the end of fiscal 20162019 from $963.2$911.9 million at the end of fiscal 2015.2018. The change waschanges were primarily due to a $500.0 million payment of our 2019 Notes, as well as a decrease of $19.6 million in other accrued liabilities, $14.3 million in deferred income on shipments to distributors and $13.4 million inour income taxes payable. These decreases were partially offset by increases of $21.4$40.9 million in accrued payroll and related liabilities, $21.9 million in other accrued liabilities and $18.5 million in accounts payable and $11.1 million in current portion of long-term debt.payable.

Temporary and stockholders'Stockholders' equity decreased $32.8increased $501.2 million to $2.86 billion during fiscal 20162019 from $2.64$2.36 billion in fiscal 2015 to $2.60 billion in fiscal 2016.2018. The decreaseincrease was primarily due to $889.8 million in net income for fiscal 2019 and $147.9 million of stock-based compensation, partially offset by repurchase of common stock of approximately $443.2$161.6 million and $319.0$364.2 million of payment of dividends to stockholders. These decreases were partially offset by $550.9 million in net income for fiscal 2016, $112.0 million of stock-based compensation, and $51.1 million of net issuance of common stock under employee stock plans, $11.4 million for net excess tax benefits from stock-based compensation and $4.5 million decrease of other comprehensive loss.