(Mark One) | ||
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, | ||
or | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Massachusetts | 04-2277512 | |
(State or other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) | |
2 Tech Drive, Suite 201, Andover, Massachusetts | 01810 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of class | Name of which registered | |
Common Stock, no par value | NASDAQ Global Select Market |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
1
Item 1. | Business |
2
3
4
5
5
6
6
• | historical customer relationships; | |
• | product quality, performance and price; | |
• | breadth of product line; |
7
• | manufacturing capabilities; and | |
• | customer service and support. |
Item 1A. | Risk Factors |
8
8
• | the timing of the receipt of orders from major customers; | |
• | shipment delays; | |
• | disruption in sources of supply; |
9
• | seasonal variations in capital spending by customers; | |
• | production capacity constraints; and | |
• | specific features requested by customers. |
• | our ability to maintain relationships with existing key customers; | |
• | our ability to attract new | |
• | our ability to introduce new products in a timely manner for existing and new customers; and | |
• | the successes of our customers in creating demand for their capital equipment products that incorporate our products. |
10
11
• | historical customer relationships; | |
• | product quality, performance and price; | |
• | breadth of product line; | |
• | manufacturing capabilities; and | |
• | customer service and support. |
• | political and economic instability; | |
• | fluctuations in the value of currencies and high levels of inflation, particularly in Asia and Europe; | |
• | changes in labor conditions and difficulties in staffing and managing foreign operations, including, but not limited to, the formation of labor unions; | |
• | reduced or less certain protection for intellectual property rights; | |
• | greater difficulty in collecting accounts receivable and longer payment cycles; | |
• | burdens and costs of compliance with a variety of foreign laws; | |
• | increases in duties and taxation; | |
• | costs associated with compliance programs for import and export regulations; | |
• | imposition of restrictions on currency conversion or the transfer of funds; | |
• | changes in export duties and limitations on imports or exports; |
12
• | expropriation of private enterprises; and | |
• | unexpected changes in foreign regulations. |
12
• | we will be able to protect our technology adequately; | |
• | competitors will not be able to develop similar technology independently; | |
• | any of our pending patent applications will be issued; | |
• | domestic and international intellectual property laws will protect our intellectual property rights; or | |
• | third parties will not assert that our products infringe patent, copyright or trade secrets of such parties. |
13
• | the potential inability to obtain an adequate supply of required components; | |
• | reduced control over pricing and timing of delivery of components; and | |
• | the potential inability of our suppliers to develop technologically advanced products to support our growth and development of new systems. |
14
• | we could be subject to fines; | |
• | our production could be suspended; or | |
• | we could be prohibited from offering particular systems in specified markets. |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Products | Lease | Products | Lease | |||||||||||||||||
Location | Sq. Ft. | Activity | Manufactured | Expires | Sq. Ft. | Activity | Manufactured | Expires | ||||||||||||
Alameda, California | 50,000 | Manufacturing and Research & Development | Electrostatic Management Programs and Systems | March 31, 2011 | ||||||||||||||||
Akishima, Japan | 26,300 | Customer Support and Service | Materials and Power Delivery Products | September 11, 2018 | 26,300 | Manufacturing, Customer Support and Service | Materials and Power Delivery Products | September 11, 2018 | ||||||||||||
Andover, Massachusetts | 118,000 | Manufacturing, Research & Development and Corporate Headquarters | Pressure Measurement and Control Products | (1) | 118,000 | Manufacturing, Research & Development and Corporate Headquarters | Pressure Measurement and Control Products | (1) | ||||||||||||
Austin, Texas | 20,880 | Manufacturing, Sales, Customer Support, Service and Research & Development | Control & Information Management Products | May 31, 2012 | 20,880 | Manufacturing, Sales, Customer Support, Service and Research & Development | Control & Information Management Products | May 31, 2012 | ||||||||||||
Berlin, Germany | 20,750 | Manufacturing, Customer Support, Service and Research & Development | Reactive Gas Generation Products | December 13, 2010 | 20,750 | Manufacturing, Customer Support, Service and Research & Development | Reactive Gas Generation Products | December 13, 2010 (2) | ||||||||||||
Boulder, Colorado | 124,000 | Manufacturing, Customer Support, Service and Research & Development | Vacuum Products | (2) | 124,000 | Manufacturing, Customer Support, Service and Research & Development | Vacuum Products | (3) | ||||||||||||
Carmiel, Israel | 11,800 | Manufacturing and Research & Development | Control & Information Management Products | December 31, 2009 | 11,800 | Manufacturing and Research & Development | Control & Information Management Products | December 31, 2012 |
15
Products | Lease | Products | Lease | |||||||||||||||||
Location | Sq. Ft. | Activity | Manufactured | Expires | Sq. Ft. | Activity | Manufactured | Expires | ||||||||||||
Cheshire, United Kingdom | 16,000 | Manufacturing, Sales, Customer Support and Service | Materials Delivery Products | November 6, 2018 | 16,000 | Manufacturing, Sales, Customer Support and Service | Materials Delivery Products | November 6, 2018 | ||||||||||||
Colorado Springs, Colorado | 24,000 | Research & Development | Not applicable | (3) | 24,000 | Research & Development | Not applicable | (4) | ||||||||||||
Filderstadt, Germany | 9,300 | Sales and Service | Not applicable | July 31, 2014 | 9,300 | Sales and Service | Not applicable | July 31, 2014 | ||||||||||||
Fukuoka, Japan | 9,300 | Customer Support and Service | Not applicable | October 19, 2010 | 9,300 | Customer Support and Service | Not applicable | October 19, 2012 | ||||||||||||
Kyunggi, Korea | 36,500 | Sales, Customer Support and Service | Not applicable | May 5, 2020 | ||||||||||||||||
Lawrence, Massachusetts | 40,000 | Manufacturing | Pressure Measurement and Control Products | (3) | 40,000 | Manufacturing | Pressure Measurement and Control Products | (4) | ||||||||||||
Lod, Israel | 10,500 | Customer Support and Research & Development | Not applicable | May 31, 2010 | 7,600 | Customer Support and Research & Development | Not applicable | May 31, 2012 | ||||||||||||
Methuen, Massachusetts | 85,000 | Manufacturing, Customer Support, Service and Research & Development | Pressure Measurement and Control Products and Materials Delivery Products | (3) | 85,000 | Manufacturing, Customer Support, Service and Research & Development | Pressure Measurement and Control Products and Materials Delivery Products | (4) | ||||||||||||
Munich, Germany | 14,000 | Manufacturing, Sales, Customer Support, Service and Research & Development | Pressure Measurement and Control Products and Materials Delivery Products | (3) | 14,000 | Manufacturing, Sales, Customer Support, Service and Research & Development | Pressure Measurement and Control Products and Materials Delivery Products | (4) | ||||||||||||
Nogales, Mexico | 67,700 | Manufacturing | Pressure Measurement and Control Products and Reactive Gas Generation Products | March 31, 2014 | 67,700 | Manufacturing | Pressure Measurement and Control Products and Reactive Gas Generation Products | March 31, 2014 | ||||||||||||
Richardson, Texas | 8,800 | Sales, Customer Support and Service | Not applicable | November 30, 2012 | 8,800 | Sales, Customer Support and Service | Not applicable | November 30, 2012 | ||||||||||||
Rochester, New York | 156,000 | Manufacturing, Sales, Customer Support, Service and Research & Development | Power Delivery Products | (3) | 156,000 | Manufacturing, Sales, Customer Support, Service and Research & Development | Power Delivery Products | (4) | ||||||||||||
San Jose, California | 32,000 | Sales, Customer Support and Service | Not applicable | April 30, 2011 | 52,400 | Sales, Customer Support and Service | Not applicable | (5) | ||||||||||||
Seoul, Korea | 18,000 | Sales, Customer Support and Service | Not applicable | May 29, 2010 | ||||||||||||||||
Shanghai, China | 6,800 | Sales, Customer Support and Service | Not applicable | February 11, 2011(2) | ||||||||||||||||
Shenzhen, China | 242,000 | Manufacturing | Power Delivery Products | May 31, 2017 | 242,000 | Manufacturing | Power Delivery Products | May 31, 2017 | ||||||||||||
Shropshire, United Kingdom | 25,000 | Manufacturing | Control & Information Management Products | October 18, 2010 | 25,000 | Manufacturing | Control & Information Management Products | June 23, 2022 | ||||||||||||
Singapore | 6,100 | Sales, Customer Support and Service | Not applicable | July 7, 2010 | 6,100 | Sales, Customer Support and Service | Not applicable | July 31, 2012 | ||||||||||||
Sunnyvale, California | 10,000 | Vacant | Not applicable | July 7, 2010 | ||||||||||||||||
Taiwan | 21,400 | Sales, Customer Support and Service | Not applicable | August 25, 2010 | 21,400 | Sales, Customer Support and Service | Not applicable | August 31, 2012 | ||||||||||||
Tianjin, China | 12,917 | Research & Development | Not applicable | August 1, 2011 | ||||||||||||||||
Tokyo, Japan | 12,600 | Sales and Customer Support | Not applicable | (4) | 8,000 | Sales and Customer Support | Not applicable | December 31, 2012 | ||||||||||||
Umea, Sweden | 7,000 | Sales, Customer Support and Research & Development | Not applicable | August 31, 2010 | 7,000 | Sales, Customer Support and Research & Development | Not applicable | August 31, 2011 | ||||||||||||
Wilmington, Massachusetts | 118,000 | Manufacturing, Sales, Customer Support, Service and Research & Development | Reactive Gas Generation Products and Power Delivery Products | (3) | 118,000 | Manufacturing, Sales, Customer Support, Service and Research & Development | Reactive Gas Generation Products and Power Delivery Products | (4) |
(1) | MKS owns one facility with 82,000 square feet of space used for manufacturing and research and development and leases 36,000 square feet of space used for its corporate headquarters with a lease term which expires January 1, 2018. | |
(2) | The lease on the Berlin, Germany facility was renewed in January 2011 and expires December 31, 2013. The lease on the Shanghai, China facility was renewed in February 2011 and expires August 11, 2011. | |
(3) | MKS leases two facilities, of which one has 39,000 square feet of space and the other has 38,000 square feet of space. Both leases expire on May 31, 2015. MKS also owns a third and fourth facility with 27,000 and 20,000 square feet of space, respectively. | |
This facility is owned by MKS. | ||
16
(5) | MKS leases two facilities, of which one has 32,000 square feet of currently vacated space and has a lease expiration of April 13, 2011 and the other has 20,400 square feet of space and has a lease expiration of January 31, 2018. |
Item 3. | Legal Proceedings |
Item 5. | Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
2009 | 2008 | 2010 | 2009 | |||||||||||||||||||||||||||||
Price Range of Common Stock | High | Low | High | Low | ||||||||||||||||||||||||||||
High | Low | High | Low | |||||||||||||||||||||||||||||
First Quarter | $ | 16.29 | $ | 11.38 | $ | 22.24 | $ | 15.90 | $ | 20.00 | $ | 15.94 | $ | 16.29 | $ | 11.38 | ||||||||||||||||
Second Quarter | 17.50 | 12.75 | 25.88 | 20.91 | 24.88 | 17.45 | 17.50 | 12.75 | ||||||||||||||||||||||||
Third Quarter | 20.60 | 13.28 | 25.00 | 19.00 | 22.26 | 16.50 | 20.60 | 13.28 | ||||||||||||||||||||||||
Fourth Quarter | 20.24 | 14.80 | 19.79 | 11.76 | 24.87 | 17.31 | 20.24 | 14.80 |
17
2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||||||||||||||||
MKS Instruments, Inc. | $ | 100.00 | $ | 96.44 | $ | 121.73 | $ | 103.18 | $ | 79.73 | $ | 93.80 | ||||||||||||||||||
Hemscott Group Index | $ | 100.00 | $ | 105.15 | $ | 118.39 | $ | 112.59 | $ | 59.90 | $ | 86.97 | ||||||||||||||||||
NASDAQ Market Index | $ | 100.00 | $ | 102.20 | $ | 112.68 | $ | 124.57 | $ | 74.71 | $ | 108.56 | ||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |||||||||||||||||||||||||
MKS Instruments, Inc. | $ | 100.00 | $ | 126.22 | $ | 106.99 | $ | 82.67 | $ | 97.26 | $ | 136.95 | ||||||||||||||||||
NASDAQ Market Index | $ | 100.00 | $ | 110.25 | $ | 121.88 | $ | 73.10 | $ | 106.22 | $ | 125.36 | ||||||||||||||||||
Morningstar Semiconductor Equipment & Materials Industry Group | $ | 100.00 | $ | 116.85 | $ | 121.73 | $ | 53.42 | $ | 88.29 | $ | 97.60 | ||||||||||||||||||
18
18
Item 6. | Selected Financial Data |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||
(In thousands, except per share data) | (In thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||
Statement of Operations Data | ||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 411,406 | $ | 646,994 | $ | 780,487 | $ | 782,801 | $ | 509,294 | $ | 853,114 | $ | 392,693 | $ | 621,380 | $ | 751,445 | $ | 747,548 | ||||||||||||||||||||
Gross profit | 138,090 | 259,943 | 331,487 | 338,122 | 200,434 | 378,638 | 130,216 | 248,238 | 316,194 | 319,155 | ||||||||||||||||||||||||||||||
Income (loss) from operations(1) | (240,499 | ) | 35,533 | 106,985 | 122,541 | 40,548 | 195,507 | (171,661 | ) | 50,874 | 109,946 | 123,179 | ||||||||||||||||||||||||||||
Net income (loss)(2) | $ | (212,659 | ) | $ | 30,117 | $ | 86,360 | $ | 94,235 | $ | 34,565 | |||||||||||||||||||||||||||||
Net income (loss) per share: | ||||||||||||||||||||||||||||||||||||||||
Basic | $ | (4.31 | ) | $ | 0.61 | $ | 1.53 | $ | 1.70 | $ | 0.64 | |||||||||||||||||||||||||||||
Diluted | $ | (4.31 | ) | $ | 0.59 | $ | 1.51 | $ | 1.68 | $ | 0.63 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations | 132,919 | (149,361 | ) | 40,010 | 88,569 | 94,745 | ||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes(2) | 9,668 | (63,298 | ) | (9,893 | ) | (2,209 | ) | (510 | ) | |||||||||||||||||||||||||||||||
Net income (loss)(3) | $ | 142,587 | $ | (212,659 | ) | $ | 30,117 | $ | 86,360 | $ | 94,235 | |||||||||||||||||||||||||||||
Basic income (loss) per share: | ||||||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 2.66 | $ | (3.03 | ) | $ | 0.81 | $ | 1.57 | $ | 1.71 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 2.85 | $ | (4.31 | ) | $ | 0.61 | $ | 1.53 | $ | 1.70 | |||||||||||||||||||||||||||||
Diluted income (loss) per share: | ||||||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 2.61 | $ | (3.03 | ) | $ | 0.79 | $ | 1.55 | $ | 1.69 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 2.80 | $ | (4.31 | ) | $ | 0.59 | $ | 1.51 | $ | 1.68 | |||||||||||||||||||||||||||||
Balance Sheet Data | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 111,009 | $ | 119,261 | $ | 223,968 | $ | 215,208 | $ | 220,573 | $ | 162,476 | $ | 111,009 | $ | 119,261 | $ | 223,968 | $ | 215,208 | ||||||||||||||||||||
Short-term investments | 160,786 | 159,608 | 99,797 | 74,749 | 72,046 | 269,457 | 160,786 | 159,608 | 99,797 | 74,749 | ||||||||||||||||||||||||||||||
Working capital | 461,581 | 452,793 | 514,235 | 461,541 | 410,060 | 643,209 | 461,581 | 452,793 | 514,235 | 461,541 | ||||||||||||||||||||||||||||||
Long-term marketable securities | 4,853 | — | — | 2,816 | 857 | |||||||||||||||||||||||||||||||||||
Long-term investments | — | 4,853 | — | — | 2,816 | |||||||||||||||||||||||||||||||||||
Total assets | 774,069 | 984,939 | 1,076,260 | 1,043,720 | 863,740 | 982,413 | 774,069 | 984,939 | 1,076,260 | 1,043,720 | ||||||||||||||||||||||||||||||
Short-term obligations | 12,885 | 18,678 | 20,203 | 23,021 | 18,886 | — | 12,885 | 18,678 | 20,203 | 23,021 | ||||||||||||||||||||||||||||||
Long-term obligations, less current portion | — | 396 | 5,871 | 6,113 | 6,152 | — | — | 396 | 5,871 | 6,113 | ||||||||||||||||||||||||||||||
Stockholders’ equity | $ | 684,933 | $ | 886,698 | $ | 954,009 | $ | 901,219 | $ | 762,843 | $ | 847,039 | $ | 684,933 | $ | 886,698 | $ | 954,009 | $ | 901,219 |
(1) | ||
(2) | ||
(3) | Net loss for 2009 includes charges, net of tax, of $202.7 million related to the write-down of goodwill, intangible and long-lived assets and $3.6 million of restructuring charges. |
19
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
20
20
21
21
22
22
23
23
24
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||
Cost of sales | 66.4 | 59.8 | 57.5 | |||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||
Product | 89.5 | % | 82.7 | % | 86.5 | % | ||||||||||||||||||
Service | 10.5 | 17.3 | 13.5 | |||||||||||||||||||||
Total net revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||
Product | 49.4 | 55.9 | 51.4 | |||||||||||||||||||||
Service | 6.2 | 10.9 | 8.7 | |||||||||||||||||||||
Total cost of revenues | 55.6 | % | 66.8 | % | 60.1 | % | ||||||||||||||||||
Gross profit | 33.6 | 40.2 | 42.5 | 44.4 | % | 33.2 | % | 39.9 | % | |||||||||||||||
Research and development | 13.0 | 12.2 | 9.6 | 7.3 | 12.8 | 11.7 | ||||||||||||||||||
Selling, general and administrative | 25.9 | 20.2 | 17.0 | 14.1 | 25.6 | 19.4 | ||||||||||||||||||
Amortization of acquired intangible assets | 1.1 | 1.4 | 2.1 | 0.2 | 0.7 | 0.6 | ||||||||||||||||||
Goodwill and asset impairment | 50.7 | 0.9 | — | — | 36.4 | — | ||||||||||||||||||
Gain on sale of asset | (0.1 | ) | — | — | ||||||||||||||||||||
Restructuring | 1.4 | — | — | — | 1.4 | — | ||||||||||||||||||
Purchase of in-process technology | — | — | 0.1 | |||||||||||||||||||||
Income (loss) from operations | (58.5 | ) | 5.5 | 13.7 | 22.9 | % | (43.7 | )% | 8.2 | % | ||||||||||||||
Interest income, net | 0.4 | 1.0 | 1.9 | 0.1 | 0.4 | 1.0 | ||||||||||||||||||
Impairment of investments | — | (0.1 | ) | (0.2 | ) | — | — | (0.2 | ) | |||||||||||||||
Income (loss) before income taxes | (58.1 | ) | 6.4 | 15.4 | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 23.0 | % | (43.3 | )% | 9.0 | % | ||||||||||||||||||
Provision (benefit) for income taxes | (6.4 | ) | 1.7 | 4.3 | 7.4 | (5.3 | ) | 2.6 | ||||||||||||||||
Income (loss) from continuing operations | 15.6 | % | (38.0 | )% | 6.4 | % | ||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 1.1 | (16.1 | ) | (1.6 | ) | |||||||||||||||||||
Net income (loss) | (51.7 | )% | 4.7 | % | 11.1 | % | 16.7 | % | (54.1 | )% | 4.8 | % | ||||||||||||
Years Ended December 31, | % Change | % Change | Years Ended December 31, | % Change | % Change | |||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | in 2009 | in 2008 | 2010 | 2009 | 2008 | in 2010 | in 2009 | |||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||
Product | $ | 342.1 | $ | 560.9 | $ | 708.5 | (39.0 | ) | (20.8 | ) | $ | 763.4 | $ | 325.0 | $ | 537.8 | 134.9 | % | (39.6 | )% | ||||||||||||||||||||
Service | 69.3 | 86.1 | 72.0 | (19.6 | ) | 19.5 | 89.7 | 67.7 | 83.6 | 32.4 | % | (19.0 | )% | |||||||||||||||||||||||||||
Total net revenues | $ | 411.4 | $ | 647.0 | $ | 780.5 | (36.4 | ) | (17.1 | ) | $ | 853.1 | $ | 392.7 | $ | 621.4 | 117.2 | % | (36.8 | )% | ||||||||||||||||||||
2425
% Points | % Points | |||||||||||||||||||||||||||||||||||||||
% Points | % Points | Years Ended December 31, | Change in | Change in | ||||||||||||||||||||||||||||||||||||
Years Ended December 31, | Change in | Change in | 2010 | 2009 | 2008 | 2010 | 2009 | |||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | (As a percentage of net revenues) | |||||||||||||||||||||||||||||||||||
Product | 32.9 | % | 40.7 | % | 43.4 | % | (7.8 | ) | (2.7 | ) | 44.8 | % | 32.4 | % | 40.6 | % | 12.4 | % | (8.2 | )% | ||||||||||||||||||||
Service | 37.0 | % | 36.5 | % | 33.5 | % | 0.5 | 3.0 | 41.2 | % | 37.0 | % | 35.8 | % | 4.2 | % | 1.2 | % | ||||||||||||||||||||||
Total gross profit percentage | 33.6 | % | 40.2 | % | 42.5 | % | (6.6 | ) | (2.3 | ) | 44.4 | % | 33.2 | % | 39.9 | % | 11.2 | % | (6.7 | )% | ||||||||||||||||||||
2526
Years Ended December 31, | % Change | % Change | ||||||||||||||||||
2009 | 2008 | 2007 | in 2009 | in 2008 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Research and development expenses | $ | 53.5 | $ | 78.5 | $ | 74.6 | (31.8 | ) | 5.2 |
Years Ended December 31, | % Change | % Change | ||||||||||||||||||
2010 | 2009 | 2008 | in 2010 | in 2009 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Research and development expenses | $ | 62.7 | $ | 50.2 | $ | 72.8 | 24.8 | % | (31.0 | )% |
Years Ended December 31, | % Change | % Change | ||||||||||||||||||
2009 | 2008 | 2007 | in 2009 | in 2008 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Selling, general and administrative expenses | $ | 106.3 | $ | 130.8 | $ | 132.8 | (18.7 | ) | (1.5 | ) |
Years Ended December 31, | % Change | % Change | ||||||||||||||||||
2010 | 2009 | 2008 | in 2010 | in 2009 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Selling, general and administrative expenses | $ | 119.8 | $ | 100.4 | $ | 120.6 | 19.3 | % | (16.7 | )% |
27
26
Years Ended December 31, | % Change | % Change | ||||||||||||||||||
2009 | 2008 | 2007 | in 2009 | in 2008 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Amortization of acquired intangible assets | $ | 4.4 | $ | 9.0 | $ | 16.2 | (51.0 | ) | (44.4 | ) |
Years Ended December 31, | % Change | % Change | ||||||||||||||||||
2010 | 2009 | 2008 | in 2010 | in 2009 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Amortization of acquired intangible assets | $ | 1.3 | $ | 2.8 | $ | 4.0 | (53.5 | )% | (30.8 | )% |
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(Dollars in millions) | ||||||||||||
Goodwill and asset impairment charges | $ | 208.5 | $ | 6.1 | $ | — |
Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Dollars in millions) | ||||||||||||
Goodwill and asset impairment charges | $ | — | $ | 143.0 | $ | — |
Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Dollars in millions) | ||||||||||||
Gain on sale of asset | $ | 0.7 | $ | — | $ | — |
28
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(Dollars in millions) | ||||||||||||
Restructuring | $ | 5.8 | $ | — | $ | — |
Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Dollars in millions) | ||||||||||||
Restructuring | $ | — | $ | 5.5 | $ | — |
27
Years Ended December 31, | % Change | % Change | ||||||||||||||||||
2009 | 2008 | 2007 | in 2009 | in 2008 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Interest income, net | $ | 1.6 | $ | 6.4 | $ | 14.5 | (74.5 | ) | (55.7 | ) |
Years Ended December 31, | % Change | % Change | ||||||||||||||||||
2010 | 2009 | 2008 | in 2010 | in 2009 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Interest income, net | $ | 0.9 | $ | 1.6 | $ | 6.4 | (44.1 | )% | (74.5 | )% |
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(Dollars in millions) | ||||||||||||
Impairment of investments | $ | — | $ | (0.9 | ) | $ | (1.5 | ) |
Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Dollars in millions) | ||||||||||||
Impairment of investments | $ | — | $ | — | $ | (0.9 | ) |
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(Dollars in millions) | ||||||||||||
Provision (benefit) for income taxes | $ | (26.2 | ) | $ | 10.9 | $ | 33.7 |
Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Dollars in millions) | ||||||||||||
Provision (benefit) for income taxes | $ | 63.5 | $ | (20.7 | ) | $ | 16.4 |
28
29
Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Dollars in millions) | ||||||||||||
Income (loss) from discontinued operations, net of taxes | $ | 9.7 | $ | (63.3 | ) | $ | (9.9 | ) |
30
29
31
30
Payment Due By Period | Payment Due By Period | |||||||||||||||||||||||||||||||||||||||||||||||
Less than | After | Less than | After | |||||||||||||||||||||||||||||||||||||||||||||
Contractual Obligations (In thousands) | Total | 1 Year | 1-3 years | 3-5 years | 5 years | Other | Total | 1 Year | 1-3 years | 3-5 years | 5 years | Other | ||||||||||||||||||||||||||||||||||||
Operating lease obligations | $ | 30,120 | $ | 7,794 | $ | 11,160 | $ | 5,928 | $ | 5,238 | $ | — | $ | 29,158 | $ | 7,447 | $ | 11,815 | $ | 6,243 | $ | 3,653 | $ | — | ||||||||||||||||||||||||
Purchase obligations(1) | 137,840 | 111,834 | 11,731 | 10,457 | 3,818 | — | 168,373 | 147,275 | 12,119 | 8,979 | — | — | ||||||||||||||||||||||||||||||||||||
Other long-term liabilities reflected on the Balance Sheet under GAAP(2) | 17,836 | 98 | 18 | — | 10,947 | 6,773 | 25,688 | 24 | 48 | 48 | 11,734 | 13,834 | ||||||||||||||||||||||||||||||||||||
Contingent purchase consideration in connection with acquisitions(3) | 5,000 | 5,000 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 190,796 | $ | 124,726 | $ | 22,909 | $ | 16,385 | $ | 20,003 | $ | 6,773 | $ | 223,219 | $ | 154,746 | $ | 23,982 | $ | 15,270 | $ | 15,387 | $ | 13,834 | ||||||||||||||||||||||||
(1) | As of December 31, 2010, we have entered into purchase commitments for certain inventory components and other equipment and services used in our normal operations. The majority of | |
(2) | The majority of this balance relates to income taxes payable and accrued compensation for certain executives related to supplemental retirement benefits. | |
32
31
33
32
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk |
34
33
3435
Item 8. | Financial Statements and Supplementary Data |
3536
December 31, | ||||||||
2009 | 2008 | |||||||
(In thousands, except share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 111,009 | $ | 119,261 | ||||
Short-term investments | 160,786 | 159,608 | ||||||
Trade accounts receivable, net of allowances of $2,415 and $2,148 at December 31, 2009 and 2008, respectively | 94,215 | 85,350 | ||||||
Inventories | 118,004 | 131,519 | ||||||
Income taxes receivable | 14,476 | 4,057 | ||||||
Deferred income taxes | 21,505 | 19,058 | ||||||
Other current assets | 12,886 | 9,875 | ||||||
Total current assets | 532,881 | 528,728 | ||||||
Property, plant and equipment, net | 67,196 | 82,017 | ||||||
Goodwill | 144,511 | 337,765 | ||||||
Acquired intangible assets, net | 4,963 | 21,069 | ||||||
Other assets | 24,518 | 15,360 | ||||||
Total assets | $ | 774,069 | $ | 984,939 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term borrowings | $ | 12,885 | $ | 17,808 | ||||
Current portion of capital lease obligations | — | 870 | ||||||
Accounts payable | 26,292 | 19,320 | ||||||
Accrued compensation | 10,658 | 13,768 | ||||||
Other current liabilities | 21,465 | 24,169 | ||||||
Total current liabilities | 71,300 | 75,935 | ||||||
Long-term portion of capital lease obligations | — | 396 | ||||||
Other liabilities | 17,836 | 21,910 | ||||||
Commitments and contingencies (Note 20) | ||||||||
Stockholders’ equity: | ||||||||
Preferred Stock, $0.01 par value, 2,000,000 shares authorized; none issued and outstanding | — | — | ||||||
Common Stock, no par value, 200,000,000 shares authorized; 49,514,941 and 49,275,975 shares issued and outstanding at December 31, 2009 and 2008, respectively | 113 | 113 | ||||||
Additional paid-in capital | 645,411 | 637,938 | ||||||
Retained earnings | 28,769 | 241,428 | ||||||
Accumulated other comprehensive income | 10,640 | 7,219 | ||||||
Total stockholders’ equity | 684,933 | 886,698 | ||||||
Total liabilities and stockholders’ equity | $ | 774,069 | $ | 984,939 | ||||
36
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(In thousands, except per share data) | ||||||||||||
Net Revenues: | ||||||||||||
Products | $ | 342,145 | $ | 560,888 | $ | 708,456 | ||||||
Services | 69,261 | 86,106 | 72,031 | |||||||||
Total net revenues | 411,406 | 646,994 | 780,487 | |||||||||
Cost of revenues: | ||||||||||||
Cost of products | 229,686 | 332,366 | 401,119 | |||||||||
Cost of services | 43,630 | 54,685 | 47,881 | |||||||||
Total cost of revenues | 273,316 | 387,051 | 449,000 | |||||||||
Gross profit | 138,090 | 259,943 | 331,487 | |||||||||
Research and development | 53,543 | 78,540 | 74,628 | |||||||||
Selling, general and administrative | 106,330 | 130,800 | 132,791 | |||||||||
Amortization of acquired intangible assets | 4,407 | 9,001 | 16,183 | |||||||||
Purchase of in-process technology | — | — | 900 | |||||||||
Goodwill and asset impairment charges | 208,497 | 6,069 | — | |||||||||
Restructuring | 5,812 | — | — | |||||||||
Income (loss) from operations | (240,499 | ) | 35,533 | 106,985 | ||||||||
Interest income, net | 1,641 | 6,425 | 14,488 | |||||||||
Impairment of investments | — | (906 | ) | (1,457 | ) | |||||||
Income (loss) before income taxes | (238,858 | ) | 41,052 | 120,016 | ||||||||
Provision (benefit) for income taxes | (26,199 | ) | 10,935 | 33,656 | ||||||||
Net income (loss) | $ | (212,659 | ) | $ | 30,117 | $ | 86,360 | |||||
Net income (loss) per share: | ||||||||||||
Basic | $ | (4.31 | ) | $ | 0.61 | $ | 1.53 | |||||
Diluted | $ | (4.31 | ) | $ | 0.59 | $ | 1.51 | |||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 49,318 | 49,717 | 56,349 | |||||||||
Diluted | 49,318 | 50,754 | 57,173 | |||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
(In thousands, except share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 162,476 | $ | 111,009 | ||||
Short-term investments | 269,457 | 160,786 | ||||||
Trade accounts receivable, net of allowances of $2,557 and $2,415 at December 31, 2010 and 2009, respectively | 138,181 | 94,215 | ||||||
Inventories | 156,429 | 118,004 | ||||||
Income tax receivable | — | 14,476 | ||||||
Deferred income taxes | 13,775 | 21,505 | ||||||
Other current assets | 12,577 | 12,886 | ||||||
Total current assets | 752,895 | 532,881 | ||||||
Property, plant and equipment, net | 68,976 | 67,196 | ||||||
Long-term marketable securities | — | 4,853 | ||||||
Goodwill | 140,020 | 144,511 | ||||||
Intangible assets, net | 1,743 | 4,963 | ||||||
Other assets | 18,779 | 19,665 | ||||||
Total assets | $ | 982,413 | $ | 774,069 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term borrowings | $ | — | $ | 12,885 | ||||
Accounts payable | 36,427 | 26,292 | ||||||
Accrued compensation | 29,944 | 10,658 | ||||||
Income taxes payable | 5,347 | — | ||||||
Other current liabilities | 37,968 | 21,465 | ||||||
Total current liabilities | 109,686 | 71,300 | ||||||
Other liabilities | 25,688 | 17,836 | ||||||
Commitments and contingencies (Note 23) | ||||||||
Stockholders’ equity: | ||||||||
Preferred Stock, $0.01 par value, 2,000,000 shares authorized; none issued and outstanding | — | — | ||||||
Common Stock, no par value, 200,000,000 shares authorized; 50,648,601 and 49,514,941 shares issued and outstanding at December 31, 2010 and 2009, respectively | 113 | 113 | ||||||
Additional paid-in capital | 663,792 | 645,411 | ||||||
Retained earnings | 171,356 | 28,769 | ||||||
Accumulated other comprehensive income | 11,778 | 10,640 | ||||||
Total stockholders’ equity | 847,039 | 684,933 | ||||||
Total liabilities and stockholders’ equity | $ | 982,413 | $ | 774,069 | ||||
37
For The Years Ended December 31, 2009, 2008 and 2007 | ||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Additional | Other | Total | ||||||||||||||||||||||||||
Common Stock | Paid-In | Retained | Comprehensive | Comprehensive | Stockholders’ | |||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Income (loss) | Income (loss) | Equity | ||||||||||||||||||||||
(In thousands, except share data) | ||||||||||||||||||||||||||||
Balance at December 31, 2006 | 56,671,625 | $ | 113 | $ | 680,164 | $ | 210,877 | $ | 10,065 | $ | 901,219 | |||||||||||||||||
Net issuance under stock-based plans | 2,368,954 | 45,266 | 45,266 | |||||||||||||||||||||||||
Stock-based compensation | 12,918 | 12,918 | ||||||||||||||||||||||||||
Tax benefit from stock-based plans | 5,712 | 5,712 | ||||||||||||||||||||||||||
Stock repurchases | (4,778,632 | ) | (59,165 | ) | (41,993 | ) | (101,158 | ) | ||||||||||||||||||||
Other | 570 | 570 | ||||||||||||||||||||||||||
Comprehensive income (net of tax): | ||||||||||||||||||||||||||||
Net income | 86,360 | 86,360 | 86,360 | |||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||
Changes in value of financial instruments designated as cash flow hedges and unrealized loss on investments | (622 | ) | (622 | ) | (622 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | 3,744 | 3,744 | 3,744 | |||||||||||||||||||||||||
Comprehensive income | $ | 89,482 | ||||||||||||||||||||||||||
Balance at December 31, 2007 | 54,261,947 | $ | 113 | $ | 685,465 | $ | 255,244 | $ | 13,187 | $ | 954,009 | |||||||||||||||||
Net issuance under stock-based plans | 681,493 | 8,861 | 8,861 | |||||||||||||||||||||||||
Stock-based compensation | 15,176 | 15,176 | ||||||||||||||||||||||||||
Tax benefit from stock-based plans | 226 | 226 | ||||||||||||||||||||||||||
Stock repurchases | (5,667,465 | ) | (71,790 | ) | (43,933 | ) | (115,723 | ) | ||||||||||||||||||||
Comprehensive income (net of tax): | ||||||||||||||||||||||||||||
Net income | 30,117 | 30,117 | 30,117 | |||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||
Changes in value of financial instruments designated as cash flow hedges and unrealized gain on investments | 203 | 203 | 203 | |||||||||||||||||||||||||
Foreign currency translation adjustment | (6,171 | ) | (6,171 | ) | (6,171 | ) | ||||||||||||||||||||||
Comprehensive income | $ | 24,149 | ||||||||||||||||||||||||||
Balance at December 31, 2008 | 49,275,975 | $ | 113 | $ | 637,938 | $ | 241,428 | $ | 7,219 | $ | 886,698 | |||||||||||||||||
Net issuance under stock-based plans | 238,966 | (114 | ) | (114 | ) | |||||||||||||||||||||||
Stock-based compensation | 8,845 | 8,845 | ||||||||||||||||||||||||||
Tax expense from stock-based plans | (1,258 | ) | (1,258 | ) | ||||||||||||||||||||||||
Comprehensive income (loss) (net of tax): | ||||||||||||||||||||||||||||
Net loss | (212,659 | ) | (212,659 | ) | (212,659 | ) | ||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||
Changes in value of financial instruments designated as cash flow hedges and unrealized gain on investments | 359 | 359 | 359 | |||||||||||||||||||||||||
Foreign currency translation adjustment | 3,062 | 3,062 | 3,062 | |||||||||||||||||||||||||
Comprehensive loss | $ | (209,238 | ) | |||||||||||||||||||||||||
Balance at December 31, 2009 | 49,514,941 | $ | 113 | $ | 645,411 | $ | 28,769 | $ | 10,640 | $ | 684,933 | |||||||||||||||||
Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands, except per share data) | ||||||||||||
Net Revenues | ||||||||||||
Products | $ | 763,452 | $ | 324,951 | $ | 537,759 | ||||||
Services | 89,662 | 67,742 | 83,621 | |||||||||
Total net revenues | 853,114 | 392,693 | 621,380 | |||||||||
Cost of revenues | ||||||||||||
Cost of products | 421,777 | 219,776 | 319,474 | |||||||||
Cost of service | 52,699 | 42,701 | 53,668 | |||||||||
Total cost of revenues | 474,476 | 262,477 | 373,142 | |||||||||
Gross profit | 378,638 | 130,216 | 248,238 | |||||||||
Research and development | 62,689 | 50,212 | 72,753 | |||||||||
Selling, general and administrative | 119,841 | 100,429 | 120,618 | |||||||||
Amortization of acquired intangible assets | 1,283 | 2,762 | 3,993 | |||||||||
Goodwill and asset impairment charges | — | 142,958 | — | |||||||||
Gain on sale of asset | (682 | ) | — | — | ||||||||
Restructuring | — | 5,516 | — | |||||||||
Income (loss) from operations | 195,507 | (171,661 | ) | 50,874 | ||||||||
Interest income | 1,052 | 1,703 | 7,001 | |||||||||
Interest expense | 135 | 62 | 577 | |||||||||
Impairment of investments | — | — | (906 | ) | ||||||||
Income (loss) from continuing operations before income taxes | 196,424 | (170,020 | ) | 56,392 | ||||||||
Provision (benefit) for income taxes | 63,505 | (20,659 | ) | 16,382 | ||||||||
Income (loss) from continuing operations | 132,919 | (149,361 | ) | 40,010 | ||||||||
Income (loss) from discontinued operations, net of taxes | 9,668 | (63,298 | ) | (9,893 | ) | |||||||
Net income (loss) | $ | 142,587 | $ | (212,659 | ) | $ | 30,117 | |||||
Basic income (loss) per share: | ||||||||||||
Continuing operations | $ | 2.66 | $ | (3.03 | ) | $ | 0.81 | |||||
Discontinued operations | 0.19 | (1.28 | ) | (0.20 | ) | |||||||
Net income (loss) | $ | 2.85 | $ | (4.31 | ) | $ | 0.61 | |||||
Diluted income (loss) per share: | ||||||||||||
Continuing operations | $ | 2.61 | $ | (3.03 | ) | $ | 0.79 | |||||
Discontinued operations | 0.19 | (1.28 | ) | (0.20 | ) | |||||||
Net income (loss) | $ | 2.80 | $ | (4.31 | ) | $ | 0.59 | |||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 50,077 | 49,318 | 49,717 | |||||||||
Diluted | 50,927 | 49,318 | 50,754 | |||||||||
38
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | (212,659 | ) | $ | 30,117 | $ | 86,360 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 18,759 | 23,524 | 30,644 | |||||||||
Stock-based compensation | 8,845 | 15,274 | 12,918 | |||||||||
Excess tax benefit (expense) from stock-based compensation | 2,460 | (3,250 | ) | (2,688 | ) | |||||||
Deferred income taxes | (7,202 | ) | (4,975 | ) | (10,283 | ) | ||||||
Provision for excess and obsolete inventory | 20,335 | 11,401 | 6,401 | |||||||||
Impairment of goodwill | 193,255 | — | — | |||||||||
Impairment of intangibles and other long-lived assets | 15,242 | 6,069 | — | |||||||||
Impairment of investments | — | 906 | 1,457 | |||||||||
Other | 1,003 | 394 | 888 | |||||||||
Changes in operating assets and liabilities, net of effects of businesses acquired: | ||||||||||||
Trade accounts receivable | (9,935 | ) | 23,565 | 18,263 | ||||||||
Inventories | (4,677 | ) | 7,088 | (5,195 | ) | |||||||
Income taxes receivable | (15,880 | ) | (3,047 | ) | 5,116 | |||||||
Other current assets | 2,511 | (3,730 | ) | 708 | ||||||||
Accrued expenses and other current liabilities | (10,792 | ) | (4,384 | ) | (6,615 | ) | ||||||
Accounts payable | 6,103 | (9,175 | ) | (18,855 | ) | |||||||
Net cash provided by operating activities | 7,368 | 89,777 | 119,119 | |||||||||
Cash flows from investing activities: | ||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (24,021 | ) | ||||||||
Purchases of short-term and long-termavailable-for-sale investments | (254,057 | ) | (324,375 | ) | (183,927 | ) | ||||||
Maturities and sales of short-term and long-termavailable-for-sale investments | 248,147 | 263,715 | 160,269 | |||||||||
Purchases of property, plant and equipment | (4,179 | ) | (13,457 | ) | (15,090 | ) | ||||||
Proceeds from sale of assets | 128 | 336 | 370 | |||||||||
Other | 333 | (273 | ) | 1,451 | ||||||||
Net cash used in investing activities | (9,628 | ) | (74,054 | ) | (60,948 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from short-term borrowings | 162,361 | 155,922 | 137,656 | |||||||||
Payments on short-term borrowings | (166,847 | ) | (160,771 | ) | (141,749 | ) | ||||||
Repurchases of common stock | — | (115,723 | ) | (101,158 | ) | |||||||
Payments on long-term debt | — | (5,000 | ) | — | ||||||||
Principal payments on capital lease obligations | (961 | ) | (1,330 | ) | (1,426 | ) | ||||||
Proceeds (payments) from exercise of stock options and employee stock purchase plan | (114 | ) | 8,861 | 45,266 | ||||||||
Excess tax benefit (expense) from stock-based compensation | (2,460 | ) | 3,250 | 2,688 | ||||||||
Net cash used in financing activities | (8,021 | ) | (114,791 | ) | (58,723 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 2,029 | (5,639 | ) | 9,312 | ||||||||
Increase (decrease) in cash and cash equivalents | (8,252 | ) | (104,707 | ) | 8,760 | |||||||
Cash and cash equivalents at beginning of year | 119,261 | 223,968 | 215,208 | |||||||||
Cash and cash equivalents at end of year | $ | 111,009 | $ | 119,261 | $ | 223,968 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid during the year: | ||||||||||||
Interest | $ | 187 | $ | 649 | $ | 830 | ||||||
Income taxes | $ | 10,038 | $ | 11,625 | $ | 27,116 | ||||||
Non-cash financing activities: | ||||||||||||
Equipment capital leases | $ | 194 | $ | 489 | $ | 1,244 |
For the Years Ended December 31, 2010, 2009 and 2008 | ||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Additional | Other | Total | ||||||||||||||||||||||||||
Common Stock | Paid-In | Retained | Comprehensive | Comprehensive | Stockholders’ | |||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Income (loss) | Income (loss) | Equity | ||||||||||||||||||||||
(In thousands, except share data) | ||||||||||||||||||||||||||||
Balance at December 31, 2007 | 54,261,947 | $ | 113 | $ | 685,465 | $ | 255,244 | $ | 13,187 | $ | 954,009 | |||||||||||||||||
Net issuance under stock-based plans | 681,493 | 8,861 | 8,861 | |||||||||||||||||||||||||
Stock-based compensation | 15,176 | 15,176 | ||||||||||||||||||||||||||
Tax benefit from stock-based plans | 226 | 226 | ||||||||||||||||||||||||||
Stock repurchases | (5,667,465 | ) | (71,790 | ) | (43,933 | ) | (115,723 | ) | ||||||||||||||||||||
Comprehensive income (net of tax): | ||||||||||||||||||||||||||||
Net income | 30,117 | 30,117 | 30,117 | |||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||
Changes in value of financial instruments designated as cash flow hedges | 390 | 390 | 390 | |||||||||||||||||||||||||
Changes in unrealized loss on investments | (187 | ) | (187 | ) | (187 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | (6,171 | ) | (6,171 | ) | (6,171 | ) | ||||||||||||||||||||||
Comprehensive income | $ | 24,149 | ||||||||||||||||||||||||||
Balance at December 31, 2008 | 49,275,975 | $ | 113 | $ | 637,938 | $ | 241,428 | $ | 7,219 | $ | 886,698 | |||||||||||||||||
Net issuance under stock-based plans | 238,966 | (114 | ) | (114 | ) | |||||||||||||||||||||||
Stock-based compensation | 8,845 | 8,845 | ||||||||||||||||||||||||||
Tax benefit from stock-based plans | (1,258 | ) | (1,258 | ) | ||||||||||||||||||||||||
Comprehensive income (loss) (net of tax): | ||||||||||||||||||||||||||||
Net loss | (212,659 | ) | (212,659 | ) | (212,659 | ) | ||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||
Changes in value of financial instruments designated as cash flow hedges | 267 | 267 | 267 | |||||||||||||||||||||||||
Changes in unrealized gain on investments | 92 | 92 | 92 | |||||||||||||||||||||||||
Foreign currency translation adjustment | 3,062 | 3,062 | 3,062 | |||||||||||||||||||||||||
Comprehensive loss | $ | (209,238 | ) | |||||||||||||||||||||||||
Balance at December 31, 2009 | 49,514,941 | $ | 113 | $ | 645,411 | $ | 28,769 | $ | 10,640 | $ | 684,933 | |||||||||||||||||
Net issuance under stock-based plans | 1,133,660 | 6,524 | 6,524 | |||||||||||||||||||||||||
Stock-based compensation | 10,604 | 10,604 | ||||||||||||||||||||||||||
Tax expense from stock-based plans | 1,253 | 1,253 | ||||||||||||||||||||||||||
Comprehensive income (net of tax): | ||||||||||||||||||||||||||||
Net income | 142,587 | 142,587 | 142,587 | |||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||
Changes in value of financial instruments designated as cash flow hedges | (2,600 | ) | (2,600 | ) | (2,600 | ) | ||||||||||||||||||||||
Changes in unrealized gain on investments | 28 | 28 | 28 | |||||||||||||||||||||||||
Foreign currency translation adjustment | 3,710 | 3,710 | 3,710 | |||||||||||||||||||||||||
Comprehensive income | $ | 143,725 | ||||||||||||||||||||||||||
Balance at December 31, 2010 | 50,648,601 | $ | 113 | $ | 663,792 | $ | 171,356 | $ | 11,778 | $ | 847,039 | |||||||||||||||||
39
Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | 142,587 | $ | (212,659 | ) | $ | 30,117 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 13,823 | 18,759 | 23,524 | |||||||||
Stock-based compensation | 10,604 | 8,845 | 15,274 | |||||||||
Provision for excess and obsolete inventory | 13,230 | 20,335 | 11,401 | |||||||||
Impairment of goodwill | — | 193,255 | — | |||||||||
Impairment of intangibles and other long-lived assets | — | 15,242 | 6,069 | |||||||||
Gain on disposal of discontinued operations | (4,432 | ) | — | — | ||||||||
Deferred income taxes | 10,097 | (3,143 | ) | (5,823 | ) | |||||||
Excess tax benefits from stock-based compensation | (2,112 | ) | (40 | ) | (280 | ) | ||||||
Other | (560 | ) | 1,003 | 1,300 | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
Trade accounts receivable | (42,540 | ) | (9,935 | ) | 23,565 | |||||||
Inventories | (52,467 | ) | (4,677 | ) | 7,088 | |||||||
Income taxes | 22,796 | (19,939 | ) | (2,199 | ) | |||||||
Other current assets | 296 | 2,511 | (3,730 | ) | ||||||||
Accrued expenses and other current liabilities | 40,928 | (10,757 | ) | (4,384 | ) | |||||||
Accounts payable | 11,220 | 6,103 | (9,175 | ) | ||||||||
Net cash provided by operating activities | 163,470 | 4,903 | 92,747 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of short-term and long-termavailable-for-sale investments | (410,551 | ) | (254,057 | ) | (324,375 | ) | ||||||
Maturities and sales of short-term and long-termavailable-for-sale investments | 306,498 | 248,147 | 263,715 | |||||||||
Purchases of property, plant and equipment | (15,819 | ) | (4,179 | ) | (13,457 | ) | ||||||
Proceeds from sale of assets | 2,318 | 128 | 336 | |||||||||
Net proceeds from sale of discontinued operations | 15,582 | — | — | |||||||||
Other | (3,651 | ) | 333 | (273 | ) | |||||||
Net cash used in investing activities | (105,623 | ) | (9,628 | ) | (74,054 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from short-term borrowings | 119,209 | 162,361 | 155,922 | |||||||||
Payments on short-term borrowings | (132,872 | ) | (166,847 | ) | (160,771 | ) | ||||||
Repurchases of common stock | — | — | (115,723 | ) | ||||||||
Payments on long-term debt | — | — | (5,000 | ) | ||||||||
Net proceeds (payments) related to employee stock awards | 6,524 | (114 | ) | 8,861 | ||||||||
Excess tax benefit from stock-based compensation | 2,112 | 40 | 280 | |||||||||
Other | — | (996 | ) | (1,330 | ) | |||||||
Net cash used in financing activities | (5,027 | ) | (5,556 | ) | (117,761 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,353 | ) | 2,029 | (5,639 | ) | |||||||
Increase (decrease) in cash and cash equivalents | 51,467 | (8,252 | ) | (104,707 | ) | |||||||
Cash and cash equivalents at beginning of year | 111,009 | 119,261 | 223,968 | |||||||||
Cash and cash equivalents at end of year | $ | 162,476 | $ | 111,009 | $ | 119,261 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 78 | $ | 187 | $ | 649 | ||||||
Income taxes | $ | 47,446 | $ | 10,038 | $ | 11,625 |
40
1) | Business Description |
2) |
Years Ended December 31, | ||||||||
2009 | 2008 | |||||||
Net cash provided by operating activities: | ||||||||
As reported | $ | 7,368 | $ | 89,777 | ||||
As adjusted | 4,903 | 92,747 | ||||||
Change | $ | (2,465 | ) | $ | 2,970 | |||
41
Years Ended December 31, | ||||||||
2009 | 2008 | |||||||
Net cash used in financing activities: | ||||||||
As reported | $ | (8,021 | ) | $ | (114,791 | ) | ||
As adjusted | (5,556 | ) | (117,761 | ) | ||||
Change | $ | 2,465 | $ | (2,970 | ) | |||
3) | Summary of Significant Accounting Policies |
40
42
41
43
42
44
43
4) | Recently Issued Accounting Pronouncements |
45
44
Cash and Cash Equivalents and Investments |
Years Ended December 31, | ||||||||
2009 | 2008 | |||||||
Federal government and government agency obligations | $ | 150,648 | $ | 137,981 | ||||
Commercial paper and corporate obligations | 5,842 | 21,627 | ||||||
Money market funds | 4,296 | — | ||||||
$ | 160,786 | $ | 159,608 | |||||
Years Ended December 31, | ||||||||
2009 | 2008 | |||||||
Federal government and government agency obligations | $ | 4,853 | $ | — | ||||
Years Ended December 31, | ||||||||
2010 | 2009 | |||||||
Money market funds and certificates of deposit | $ | 15,716 | $ | 4,296 | ||||
Equity mutual funds | 491 | 449 | ||||||
U.S. agency obligations | 230,394 | 150,648 | ||||||
Corporate obligations | 22,856 | 5,393 | ||||||
$ | 269,457 | $ | 160,786 | |||||
4546
�� | ||||||||
Years Ended December 31, | ||||||||
2010 | 2009 | |||||||
U.S. agency obligations | $ | — | $ | 4,853 | ||||
Gross | Gross | |||||||||||||||
Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||
As of December 31, 2009: | ||||||||||||||||
Federal government and government agency obligations | $ | 147,354 | $ | 75 | $ | (82 | ) | $ | 147,347 | |||||||
Commercial paper and corporate obligations | 2,142 | 1 | (200 | ) | 1,943 | |||||||||||
$ | 149,496 | $ | 76 | $ | (282 | ) | $ | 149,290 | ||||||||
As of December 31, 2008: | ||||||||||||||||
Federal government and government agency obligations | $ | 126,106 | $ | 373 | $ | (2 | ) | $ | 126,477 | |||||||
Commercial paper and corporate obligations | 2,993 | 87 | (783 | ) | 2,297 | |||||||||||
$ | 129,099 | $ | 460 | $ | (785 | ) | $ | 128,774 | ||||||||
Gross | Gross | |||||||||||||||
Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||
As of December 31, 2010: | ||||||||||||||||
Equity mutual funds | $ | 659 | $ | — | $ | (168 | ) | $ | 491 | |||||||
U.S. agency obligations | 168,713 | 35 | (28 | ) | 168,720 | |||||||||||
Corporate obligations | 27,980 | 7 | (7 | ) | 27,980 | |||||||||||
$ | 197,352 | $ | 42 | $ | (203 | ) | $ | 197,191 | ||||||||
As of December 31, 2009: | ||||||||||||||||
Equity mutual funds | $ | 649 | $ | — | $ | (200 | ) | $ | 449 | |||||||
U.S. agency obligations | 147,354 | 75 | (82 | ) | 147,347 | |||||||||||
Corporate obligations | 1,493 | 1 | — | 1,494 | ||||||||||||
$ | 149,496 | $ | 76 | $ | (282 | ) | $ | 149,290 | ||||||||
Fair Value Measurements |
47
Level 1 | Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset and liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 assets and liabilities include money market funds, debt and equity securities and derivative contracts that are traded in an active exchange market. | |
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes | |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant | |||||||||||||||
Active Markets for | Significant Other | Unobservable | ||||||||||||||
December 31, | Identical Assets | Observable Inputs | Inputs | |||||||||||||
Description | 2010 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Money market funds and certificates of deposit | $ | 22,748 | $ | 22,748 | $ | — | $ | — | ||||||||
Available-for-sale equity securities: | ||||||||||||||||
Equity mutual funds(1) | 491 | 491 | — | — | ||||||||||||
Available-for-sale debt securities: | ||||||||||||||||
U.S. agency obligations | 267,712 | 267,712 | — | — | ||||||||||||
Corporate obligations | 30,329 | 30,329 | — | — | ||||||||||||
Derivatives — currency forward contracts | 369 | — | 369 | — | ||||||||||||
Total assets | $ | 321,649 | $ | 321,280 | $ | 369 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Supplemental retirement benefits(2) | $ | 707 | $ | 707 | $ | — | $ | — | ||||||||
Derivatives — currency forward contracts | 3,463 | — | 3,463 | — | ||||||||||||
Total liabilities | $ | 4,170 | $ | 707 | $ | 3,463 | $ | — | ||||||||
4648
Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||||
Quoted Prices in | Significant | Quoted Prices in | Significant | |||||||||||||||||||||||||||||
Active Markets for | Significant Other | Unobservable | Active Markets for | Significant Other | Unobservable | |||||||||||||||||||||||||||
December 31, | Identical Assets | Observable Inputs | Inputs | December 31, | Identical Assets | Observable Inputs | Inputs | |||||||||||||||||||||||||
Description | 2009 | (Level 1) | (Level 2) | (Level 3) | 2009 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 6,939 | $ | 6,939 | $ | — | $ | — | ||||||||||||||||||||||||
Available-for-sale securities | 165,639 | 165,639 | — | — | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money market funds and certificates of deposit | $ | 8,071 | $ | 8,071 | $ | — | $ | — | ||||||||||||||||||||||||
Available-for-sale equity securities: | ||||||||||||||||||||||||||||||||
Equity mutual funds(1) | 449 | 449 | — | — | ||||||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||||
U.S. agency obligations | 158,665 | 158,665 | — | — | ||||||||||||||||||||||||||||
Corporate obligations | 5,393 | 5,393 | — | — | ||||||||||||||||||||||||||||
Derivatives — currency forward contracts | 1,505 | — | 1,505 | — | 1,505 | — | 1,505 | — | ||||||||||||||||||||||||
Total assets | $ | 174,083 | $ | 172,578 | $ | 1,505 | $ | — | $ | 174,083 | $ | 172,578 | $ | 1,505 | $ | — | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Supplemental retirement benefits(2) | $ | 546 | $ | 546 | $ | — | $ | — | ||||||||||||||||||||||||
Derivatives — currency forward contracts | $ | 423 | $ | — | $ | 423 | $ | — | 423 | — | 423 | — | ||||||||||||||||||||
Total liabilities | $ | 969 | $ | 546 | $ | 423 | $ | — | ||||||||||||||||||||||||
(1) | Relates to short-term investments associated with the Company’s supplemental defined contribution retirement benefits. | |
(2) | Relates to the Company’s obligations to pay benefits under its supplemental defined contribution retirement benefits, which are included in Other liabilities. |
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant | |||||||||||||||
Active Markets for | Significant Other | Unobservable | ||||||||||||||
December 31, | Identical Assets | Observable Inputs | Inputs | |||||||||||||
Description | 2008 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 13,550 | $ | 13,550 | $ | — | $ | — | ||||||||
Available-for-sale securities | 159,608 | 159,608 | — | — | ||||||||||||
Derivatives — currency forward contracts | 2,645 | — | 2,645 | — | ||||||||||||
Total assets | $ | 175,803 | $ | 173,158 | $ | 2,645 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Derivatives — currency forward contracts | $ | 2,137 | $ | — | $ | 2,137 | $ | — | ||||||||
4749
Fair Value Measurements Using | ||||
Significant Unobservable | ||||
Inputs (Level 3) | ||||
Available-For-Sale Securities | ||||
Beginning balance at January 1, 2008 | $ | 4,275 | ||
Total losses (realized) | ||||
Included in earnings (or changes in net assets) | (1,412 | ) | ||
Settlements | (490 | ) | ||
Transfers out of Level 3 | (2,373 | ) | ||
Ending balance at December 31, 2008 | $ | — | ||
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | — | ||
Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | Quoted Prices in | Significant | |||||||||||||||||||||||||||||||||||||
Active Markets for | Significant Other | Unobservable | Active Markets for | Significant Other | Unobservable | |||||||||||||||||||||||||||||||||||
December 31, | Identical Assets | Observable Inputs | Inputs | December 31, | Identical Assets | Observable Inputs | Inputs | |||||||||||||||||||||||||||||||||
Description | 2009 | (Level 1) | (Level 2) | (Level 3) | Total Losses | 2009 | (Level 1) | (Level 2) | (Level 3) | Total Losses | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Goodwill | $ | 144,511 | $ | — | $ | — | $ | 144,511 | $ | 193,254 | $ | 144,511 | $ | — | $ | — | $ | 144,511 | $ | 193,254 | ||||||||||||||||||||
Definite-lived intangible assets | 4,963 | — | — | 4,963 | 11,699 | 4,963 | — | — | 4,963 | 11,699 | ||||||||||||||||||||||||||||||
Long-lived assets held and used | 1,297 | — | 1,297 | — | 3,544 | 1,297 | — | 1,297 | — | 3,544 | ||||||||||||||||||||||||||||||
Total assets | $ | 150,771 | $ | — | $ | 1,297 | $ | 149,474 | $ | 208,497 | $ | 150,771 | $ | — | $ | 1,297 | $ | 149,474 | $ | 208,497 | ||||||||||||||||||||
(1) | For the twelve months ended December 31, 2009, the goodwill impairment charge of $193,254,000 includes $53,840,000 of charges classified in discontinued operations in the consolidated statement of operations. | |
(2) | For the twelve months ended December 31, 2009, the definite-lived intangible asset impairment charge of $11,699,000 is classified in discontinued operations in the consolidated statement of operations. |
4850
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
Quoted Prices in | Significant | |||||||||||||||||||
Active Markets for | Significant Other | Unobservable | ||||||||||||||||||
December 31, | Identical Assets | Observable Inputs | Inputs | |||||||||||||||||
Description | 2008 | (Level 1) | (Level 2) | (Level 3) | Total Losses | |||||||||||||||
Assets | ||||||||||||||||||||
Goodwill | $ | 337,765 | $ | — | $ | — | $ | 337,765 | $ | — | ||||||||||
Definite-lived intangible assets | 21,069 | — | — | 21,069 | 6,069 | |||||||||||||||
Total assets | $ | 358,834 | $ | — | $ | — | $ | 358,834 | $ | 6,069 | ||||||||||
Derivatives |
49
December 31, 2009 | December 31, 2010 | |||||||||||||||
Gross Notional | Gross Notional | |||||||||||||||
Currency Hedged (Buy/Sell) | Value | Fair Value(1) | Value | Fair Value(1) | ||||||||||||
U.S. Dollar/Japanese Yen | $ | 28,980 | $ | 1,220 | $ | 50,104 | $ | (2,876 | ) | |||||||
U.S. Dollar/South Korean Won | 8,477 | (338 | ) | 27,574 | (563 | ) | ||||||||||
U.S. Dollar/Euro | 8,069 | 149 | 6,934 | 305 | ||||||||||||
U.S. Dollar/U.K. Pound Sterling | 3,198 | 51 | 3,054 | 40 | ||||||||||||
Total | $ | 48,724 | $ | 1,082 | $ | 87,666 | $ | (3,094 | ) | |||||||
December 31, 2008 | ||||||||
Gross Notional | ||||||||
Currency Hedged (Buy/Sell) | Value | Fair Value(1) | ||||||
U.S. Dollar/Japanese Yen | $ | 17,348 | $ | (2,137 | ) | |||
U.S. Dollar/South Korean Won | 7,607 | 1,926 | ||||||
U.S. Dollar/Euro | 4,176 | 313 | ||||||
U.S. Dollar/U.K. Pound Sterling | 1,425 | 406 | ||||||
Total | $ | 30,556 | $ | 508 | ||||
Years Ended December 31, | ||||||||
Derivatives Designated as Hedging Instruments | 2009 | 2008 | ||||||
Derivative assets | ||||||||
Forward exchange contracts | $ | 1,505 | $ | 2,645 | ||||
Derivative liabilities | ||||||||
Forward exchange contracts | 423 | 2,137 | ||||||
Total net derivative assets designated as hedging instruments(1) | $ | 1,082 | $ | 508 | ||||
5051
December 31, 2009 | ||||||||
Gross Notional | ||||||||
Currency Hedged (Buy/Sell) | Value | Fair Value(1) | ||||||
U.S. Dollar/Japanese Yen | $ | 28,980 | $ | 1,220 | ||||
U.S. Dollar/South Korean Won | 8,477 | (338 | ) | |||||
U.S. Dollar/Euro | 8,069 | 149 | ||||||
U.S. Dollar/U.K. Pound Sterling | 3,198 | 51 | ||||||
Total | $ | 48,724 | $ | 1,082 | ||||
(1) | Represents the net receivable (payable) amount included in the consolidated balance sheet. |
Years Ended December 31, | ||||||||
Derivatives Designated as Hedging Instruments | 2010 | 2009 | ||||||
Derivative assets: | ||||||||
Forward exchange contracts | $ | 369 | $ | 1,505 | ||||
Derivative liabilities: | ||||||||
Forward exchange contracts | (3,463 | ) | (423 | ) | ||||
Total net derivative asset (liability) designated as hedging instruments(1) | $ | (3,094 | ) | $ | 1,082 | |||
(1) | The derivative asset of $369,000 and derivative liability of $3,463,000 are classified in other current assets and other current liabilities, respectively, in the consolidated balance sheet as of December 31, 2010. The derivative asset of $1,505,000 and derivative liability of $423,000 are classified in other current assets and other current liabilities, respectively, in the consolidated balance sheet as of December 31, 2009. |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedging Relationships | 2009 | 2008 | 2007 | 2010 | 2009 | 2008 | ||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||||||
Forward exchange contracts: | ||||||||||||||||||||||||
Net gain (loss) recognized in OCI(1) | $ | 1,290 | $ | 465 | $ | (955 | ) | $ | (3,346 | ) | $ | 1,290 | $ | 465 | ||||||||||
Net gain (loss) reclassified from accumulated OCI into income(2) | 1,062 | (1,176 | ) | 1,312 | (957 | ) | 1,062 | (1,176 | ) | |||||||||||||||
Net gain (loss) recognized in income(3) | 313 | (223 | ) | — | — | 313 | (223 | ) |
(1) | Net change in the fair value of the effective portion classified in OCI. | |
(2) | Effective portion classified as cost of products. | |
(3) | Ineffective portion amount excluded from effectiveness testing, classified in selling, general and administrative. |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | 2009 | 2008 | 2007 | 2010 | 2009 | 2008 | ||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||||||
Forward exchange contracts: | ||||||||||||||||||||||||
Net gain recognized in income(1) | $ | 9 | $ | 2,669 | $ | — | $ | — | $ | 9 | $ | 2,669 |
(1) | Classified in selling, general and administrative. |
52
Inventories |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||
2009 | 2008 | 2010 | 2009 | |||||||||||||
Raw material | $ | 56,083 | $ | 63,696 | $ | 82,012 | $ | 56,083 | ||||||||
Work in process | 16,501 | 17,436 | 21,891 | 16,501 | ||||||||||||
Finished goods | 45,420 | 50,387 | 52,526 | 45,420 | ||||||||||||
$ | 118,004 | $ | 131,519 | $ | 156,429 | $ | 118,004 | |||||||||
51
Property, Plant and Equipment |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||
2009 | 2008 | 2010 | 2009 | |||||||||||||
Land | $ | 9,086 | $ | 12,308 | $ | 8,131 | $ | 9,086 | ||||||||
Buildings | 64,786 | 65,926 | 63,633 | 64,786 | ||||||||||||
Machinery and equipment | 92,136 | 90,215 | 97,888 | 92,136 | ||||||||||||
Furniture and fixtures and office equipment | 52,844 | 51,574 | 50,642 | 52,844 | ||||||||||||
Leasehold improvements | 18,050 | 16,016 | 18,385 | 18,050 | ||||||||||||
Construction in progress | 1,355 | 5,455 | 3,968 | 1,355 | ||||||||||||
238,257 | 241,494 | 242,647 | 238,257 | |||||||||||||
Less: accumulated depreciation and amortization | 171,061 | 159,477 | 173,671 | 171,061 | ||||||||||||
$ | 67,196 | $ | 82,017 | $ | 68,976 | $ | 67,196 | |||||||||
53
Goodwill and Intangible Assets |
52
54
2009 | 2008 | 2010 | 2009 | |||||||||||||||||||||||||||||||||||||||||||||
Gross | Accumulated | Gross | Accumulated | Gross | Accumulated | Gross | Accumulated | |||||||||||||||||||||||||||||||||||||||||
Carrying | Impairment | Carrying | Impairment | Carrying | Impairment | Carrying | Impairment | |||||||||||||||||||||||||||||||||||||||||
Amount | Loss | Net | Amount | Loss | Net | Amount | Loss | Net | Amount | Loss | Net | |||||||||||||||||||||||||||||||||||||
Beginning balance at January 1 | $ | 337,765 | $ | — | $ | 337,765 | $ | 337,473 | $ | — | $ | 337,473 | $ | 337,765 | $ | (193,254 | ) | $ | 144,511 | $ | 337,765 | $ | — | $ | 337,765 | |||||||||||||||||||||||
Adjustments to deferred tax assets | — | — | — | 292 | — | 292 | ||||||||||||||||||||||||||||||||||||||||||
Impairment losses | — | (193,254 | ) | (193,254 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Acquired goodwill | 2,292 | — | 2,292 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Sale of discontinued operations(1) | (60,623 | ) | 53,840 | (6,783 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Impairment losses(2) | — | — | — | — | (193,254 | ) | (193,254 | ) | ||||||||||||||||||||||||||||||||||||||||
Ending balance at December 31 | $ | 337,765 | $ | (193,254 | ) | $ | 144,511 | $ | 337,765 | $ | — | $ | 337,765 | $ | 279,434 | $ | (139,414 | ) | $ | 140,020 | $ | 337,765 | $ | (193,254 | ) | $ | 144,511 | |||||||||||||||||||||
(1) | In 2010, the Company sold its Ion business and assets of its YDI business and as a result charged the related net goodwill to the gain on sale of discontinued operations. | |
(2) | For the twelve months ended December 31, 2009, $53,840,000 of the goodwill impairment charge is classified in discontinued operations in the consolidated statement of operations. |
5355
Impairment | Accumulated | Accumulated | ||||||||||||||||||||||||||
For The Year Ended December 31, 2009: | Gross | Charges | Amortization | Net | ||||||||||||||||||||||||
As of December 31, 2010: | Gross(1) | Amortization(1) | Net | |||||||||||||||||||||||||
Completed technology | $ | 88,855 | $ | (3,812 | ) | $ | (82,705 | ) | $ | 2,338 | $ | 76,829 | $ | (76,230 | ) | $ | 599 | |||||||||||
Customer relationships | 21,879 | (7,113 | ) | (13,326 | ) | 1,440 | 8,940 | (8,083 | ) | 857 | ||||||||||||||||||
Patents, trademarks, trade names and other | 29,672 | (774 | ) | (27,713 | ) | 1,185 | 24,638 | (24,351 | ) | 287 | ||||||||||||||||||
$ | 140,406 | $ | (11,699 | ) | $ | (123,744 | ) | $ | 4,963 | $ | 110,407 | $ | (108,664 | ) | $ | 1,743 | ||||||||||||
Impairment | Accumulated | |||||||||||||||
For The Year Ended December 31, 2008: | Gross | Charges | Amortization | Net | ||||||||||||
Completed technology | $ | 93,204 | $ | (4,349 | ) | $ | (80,685 | ) | $ | 8,170 | ||||||
Customer relationships | 23,542 | (1,663 | ) | (12,152 | ) | 9,727 | ||||||||||
Patents, trademarks, trade names and other | 29,729 | (57 | ) | (26,500 | ) | 3,172 | ||||||||||
$ | 146,475 | $ | (6,069 | ) | $ | (119,337 | ) | $ | 21,069 | |||||||
(1) | Excludes $18,299,000 and $16,603,000 from gross and accumulated amortization, respectively, as a result of the Company’s sale of its Ion business and assets of its YDI business. |
Impairment | Accumulated | |||||||||||||||
As of December 31, 2009: | Gross | Charges(1) | Amortization | Net | ||||||||||||
Completed technology | $ | 88,855 | $ | (3,812 | ) | $ | (82,705 | ) | $ | 2,338 | ||||||
Customer relationships | 21,879 | (7,113 | ) | (13,326 | ) | 1,440 | ||||||||||
Patents, trademarks, trade names and other | 29,672 | (774 | ) | (27,713 | ) | 1,185 | ||||||||||
$ | 140,406 | $ | (11,699 | ) | $ | (123,744 | ) | $ | 4,963 | |||||||
(1) | For the twelve months ended December 31, 2009, the intangible asset impairment charge of $11,699,000 is classified in discontinued operations in the consolidated statement of operations. |
Year | Amount | Amount | ||||||
2010 | $ | 2,134 | ||||||
2011 | 1,588 | $ | 988 | |||||
2012 | 634 | 389 | ||||||
2013 | 607 | 366 |
Other |
Years Ended December 31, | ||||||||
2009 | 2008 | |||||||
Other Assets: | ||||||||
Deferred tax assets, net | $ | 17,373 | $ | 12,743 | ||||
Long-term marketable securities | 4,853 | — | ||||||
Other | 2,292 | 2,617 | ||||||
Total other assets | $ | 24,518 | $ | 15,360 | ||||
Other Current Liabilities: | ||||||||
Product warranties | $ | 6,560 | $ | 8,334 | ||||
Deferred revenue | 4,101 | 4,631 | ||||||
Other | 10,804 | 11,204 | ||||||
Total other current liabilities | $ | 21,465 | $ | 24,169 | ||||
Other Liabilities: | ||||||||
Income taxes payable | $ | 6,773 | $ | 11,756 | ||||
Accrued compensation | 10,424 | 9,567 | ||||||
Other | 639 | 587 | ||||||
Total other liabilities | $ | 17,836 | $ | 21,910 | ||||
Years Ended December 31, | ||||||||
2010 | 2009 | |||||||
Other Assets: | ||||||||
Deferred tax assets, net | $ | 15,076 | $ | 17,373 | ||||
Other | 3,703 | 2,292 | ||||||
Total other assets | $ | 18,779 | $ | 19,665 | ||||
5456
12) | Other Liabilities |
Years Ended December 31, | ||||||||
2010 | 2009 | |||||||
Other Current Liabilities: | ||||||||
Product warranties | $ | 9,865 | $ | 6,560 | ||||
Deferred revenue | 4,970 | 4,101 | ||||||
Non-income taxes | 5,715 | 2,479 | ||||||
Other | 17,418 | 8,325 | ||||||
Total other current liabilities | $ | 37,968 | $ | 21,465 | ||||
Other Liabilities: | ||||||||
Long-term income tax payable | $ | 13,688 | $ | 6,773 | ||||
Accrued compensation | 11,064 | 10,424 | ||||||
Other | 936 | 639 | ||||||
Total other liabilities | $ | 25,688 | $ | 17,836 | ||||
Product Warranties |
Years Ended December 31, | ||||||||
2009 | 2008 | |||||||
Balance at beginning of year | $ | 8,334 | $ | 9,497 | ||||
Provisions for product warranties | 2,520 | 5,345 | ||||||
Direct charges to the warranty liability | (4,294 | ) | (6,508 | ) | ||||
Balance at end of year | $ | 6,560 | $ | 8,334 | ||||
Years Ended December 31, | ||||||||
2010 | 2009 | |||||||
Beginning balance | $ | 6,560 | $ | 8,334 | ||||
Provisions for product warranties | 9,518 | 2,520 | ||||||
Direct charges to warranty liability | (6,213 | ) | (4,294 | ) | ||||
Ending balance | $ | 9,865 | $ | 6,560 | ||||
Restructuring |
Year Ended | ||||
December 31, | ||||
2009 | ||||
Beginning balance | $ | — | ||
Severance and employee related costs | 5,812 | |||
Payments | (5,592 | ) | ||
Ending balance | $ | 220 | ||
5557
Years Ended December 31, | ||||||||
2010 | 2009 | |||||||
Beginning balance | $ | 220 | $ | — | ||||
Severance and employee related costs(1) | — | 5,812 | ||||||
Payments | (220 | ) | (5,592 | ) | ||||
Ending balance | $ | — | $ | 220 | ||||
(1) | For the twelve months ended December 31, 2009, restructuring charges of $296,000 are classified in discontinued operations in the consolidated statement of operations. |
15) | Debt |
Income Taxes |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
U.S. Federal income tax statutory rate | (35.0 | )% | 35.0 | % | 35.0 | % | 35.0 | % | (35.0 | )% | 35.0 | % | ||||||||||||
Federal and state tax credits | (1.6 | ) | (5.5 | ) | (4.3 | ) | (1.1 | ) | (2.2 | ) | (4.0 | ) | ||||||||||||
State income taxes, net of federal benefit | (0.6 | ) | 1.3 | 1.7 | 1.0 | (0.6 | ) | 1.6 | ||||||||||||||||
Effect of foreign operations taxed at various rates | (1.4 | ) | (11.0 | ) | (4.9 | ) | (2.4 | ) | (2.2 | ) | (8.4 | ) | ||||||||||||
Extraterritorial income and qualified production activity tax benefit | (0.4 | ) | (3.9 | ) | (0.7 | ) | ||||||||||||||||||
Qualified production activity tax benefit | (0.8 | ) | (0.6 | ) | (2.8 | ) | ||||||||||||||||||
Non-deductible goodwill | 27.9 | — | — | — | 27.2 | — | ||||||||||||||||||
Deferred tax asset valuation allowance | 0.2 | 8.4 | — | (0.1 | ) | 0.3 | 6.1 | |||||||||||||||||
Other | (0.1 | ) | 2.3 | 1.2 | 0.7 | 0.9 | 1.6 | |||||||||||||||||
(11.0 | )% | 26.6 | % | 28.0 | % | 32.3 | % | (12.2 | )% | 29.1 | % | |||||||||||||
5658
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Income (loss) before income taxes: | ||||||||||||||||||||||||
United States | $ | (263,078 | ) | $ | (8,201 | ) | $ | 64,228 | $ | 110,779 | $ | (193,341 | ) | $ | 6,665 | |||||||||
Foreign | 24,220 | 49,253 | 55,788 | 85,645 | 23,321 | 49,727 | ||||||||||||||||||
$ | (238,858 | ) | $ | 41,052 | $ | 120,016 | $ | 196,424 | $ | (170,020 | ) | $ | 56,392 | |||||||||||
Current taxes (benefit): | ||||||||||||||||||||||||
United States Federal | $ | (26,216 | ) | $ | 7,098 | $ | 29,663 | $ | 27,789 | $ | (24,606 | ) | $ | 9,454 | ||||||||||
State | (261 | ) | 1,367 | 1,682 | 3,323 | (175 | ) | 1,488 | ||||||||||||||||
Foreign | 7,687 | 11,529 | 12,594 | 22,296 | 7,265 | 11,263 | ||||||||||||||||||
(18,790 | ) | 19,994 | 43,939 | 53,408 | (17,516 | ) | 22,205 | |||||||||||||||||
Deferred taxes: | ||||||||||||||||||||||||
United States Federal | (4,333 | ) | (11,304 | ) | (7,741 | ) | 10,021 | (394 | ) | (8,330 | ) | |||||||||||||
State and Foreign | (3,076 | ) | 2,245 | (2,542 | ) | 76 | (2,749 | ) | 2,507 | |||||||||||||||
(7,409 | ) | (9,059 | ) | (10,283 | ) | 10,097 | (3,143 | ) | (5,823 | ) | ||||||||||||||
Provision (benefit) for income taxes | $ | (26,199 | ) | $ | 10,935 | $ | 33,656 | $ | 63,505 | $ | (20,659 | ) | $ | 16,382 | ||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||
2009 | 2008 | 2010 | 2009 | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Net operating losses and credits | $ | 8,131 | $ | 7,465 | ||||||||||||
Loss carryforwards and credits | $ | 27,604 | $ | 8,131 | ||||||||||||
Inventory and warranty reserves | 19,611 | 17,440 | 17,116 | 19,611 | ||||||||||||
Accounts receivable and other accruals | 2,568 | 2,358 | 2,794 | 2,568 | ||||||||||||
Depreciation and amortization | 6,370 | 5,798 | — | 6,370 | ||||||||||||
Stock-based compensation | 6,602 | 8,976 | 5,692 | 6,602 | ||||||||||||
Executive supplemental retirement benefits | 3,305 | 2,952 | 4,584 | 3,305 | ||||||||||||
Other | 2,547 | 2,297 | 3,824 | 2,547 | ||||||||||||
Total deferred tax assets | $ | 49,134 | $ | 47,286 | $ | 61,614 | $ | 49,134 | ||||||||
Deferred tax liabilities: | ||||||||||||||||
Acquired intangible assets | (5,015 | ) | (10,717 | ) | (3,927 | ) | (5,015 | ) | ||||||||
Depreciation and amortization | (1,621 | ) | — | |||||||||||||
Other | (40 | ) | (115 | ) | (1,950 | ) | (40 | ) | ||||||||
Total deferred tax liabilities | (5,055 | ) | (10,832 | ) | (7,498 | ) | (5,055 | ) | ||||||||
Valuation allowance | (5,201 | ) | (4,653 | ) | (25,267 | ) | (5,201 | ) | ||||||||
Net deferred tax assets | $ | 38,878 | $ | 31,801 | $ | 28,849 | $ | 38,878 | ||||||||
5759
Years Ended December 31, | ||||||||||||||||||||
2009 | 2008 | 2010 | 2009 | 2008 | ||||||||||||||||
Balance at beginning of year | $ | 14,678 | $ | 16,123 | $ | 9,085 | $ | 14,678 | $ | 16,123 | ||||||||||
Increase (decrease) for prior years | (41 | ) | 49 | (6 | ) | (41 | ) | 49 | ||||||||||||
Increases for the current year | 1,693 | 1,680 | 6,795 | 1,693 | 1,680 | |||||||||||||||
Reductions related to settlements with taxing authorities | (7,245 | ) | (1,533 | ) | — | (7,245 | ) | (1,533 | ) | |||||||||||
Reductions related to expiration of statute of limitations | — | (1,641 | ) | (604 | ) | — | (1,641 | ) | ||||||||||||
Balance at end of year | $ | 9,085 | $ | 14,678 | $ | 15,270 | $ | 9,085 | $ | 14,678 | ||||||||||
5860
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Net income (loss) | $ | (212,659 | ) | $ | 30,117 | $ | 86,360 | |||||
Shares used in net income (loss) per common share — basic | 49,318,000 | 49,717,000 | 56,349,000 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options, restricted stock and employee stock purchase plan | — | 1,037,000 | 824,000 | |||||||||
Shares used in net income (loss) per common share — diluted | 49,318,000 | 50,754,000 | 57,173,000 | |||||||||
Net income (loss) per common share — basic | $ | (4.31 | ) | $ | 0.61 | $ | 1.53 | |||||
Net income (loss) per common share — diluted | $ | (4.31 | ) | $ | 0.59 | $ | 1.51 | |||||
Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Net revenues | $ | 11,974 | $ | 18,713 | $ | 25,614 | ||||||
Income (loss) from discontinued operations before income taxes | $ | 2,320 | $ | (68,837 | ) | $ | (15,340 | ) | ||||
Gain from disposal of discontinued operations before income taxes | 4,432 | — | — | |||||||||
Income tax (benefit) | (2,916 | ) | (5,539 | ) | (5,447 | ) | ||||||
Income (loss) from discontinued operations | $ | 9,668 | $ | (63,298 | ) | $ | (9,893 | ) | ||||
59
Stockholders’ Equity |
61
60
62
Years Ended December 31, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Weighted | Weighted | |||||||||||||||
Non-vested | Average Grant | Non-vested | Average Grant | |||||||||||||
RSUs | Date Fair Value | RSUs | Date Fair Value | |||||||||||||
Non-vested RSUs — beginning of period | 1,581,883 | $ | 19.77 | 1,824,990 | $ | 21.87 | ||||||||||
Granted | 555,995 | $ | 19.63 | 682,156 | $ | 15.27 | ||||||||||
Vested | (706,224 | ) | $ | 20.65 | (666,247 | ) | $ | 21.91 | ||||||||
Forfeited or expired | (104,348 | ) | $ | 18.32 | (259,016 | ) | $ | 17.25 | ||||||||
Non-vested RSUs — end of period | 1,327,306 | $ | 18.34 | 1,581,883 | $ | 19.77 | ||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||||
Options | Price | Options | Price | Options | Price | |||||||||||||||||||
Outstanding — beginning of period | 2,514,822 | $ | 21.67 | 4,558,838 | $ | 23.44 | 5,123,056 | $ | 22.74 | |||||||||||||||
Exercised | (568,464 | ) | $ | 16.49 | (134,118 | ) | $ | 14.54 | (425,256 | ) | $ | 14.32 | ||||||||||||
Forfeited or expired | (153,144 | ) | $ | 32.51 | (1,909,898 | ) | $ | 26.18 | (138,962 | ) | $ | 25.58 | ||||||||||||
Outstanding — end of period | 1,793,214 | $ | 22.38 | 2,514,822 | $ | 21.67 | 4,558,838 | $ | 23.44 | |||||||||||||||
Exercisable at end of period | 1,793,214 | $ | 22.38 | 2,514,197 | $ | 21.67 | 4,535,282 | $ | 23.46 | |||||||||||||||
6163
Years Ended December 31, | ||||||||||||||||
2009 | 2008 | |||||||||||||||
Non-vested | Weighted | Non-vested | Weighted | |||||||||||||
Restricted | Average Grant | Restricted | Average Grant | |||||||||||||
Stock | Date Fair Value | Stock | Date Fair Value | |||||||||||||
Non-vested restricted stock — beginning of period | 1,824,990 | $ | 21.87 | 1,349,350 | $ | 21.98 | ||||||||||
Granted | 682,156 | $ | 15.27 | 709,313 | $ | 21.51 | ||||||||||
Vested | (666,247 | ) | $ | 21.91 | (110,640 | ) | $ | 22.45 | ||||||||
Forfeited or expired | (259,016 | ) | $ | 17.25 | (123,033 | ) | $ | 20.43 | ||||||||
Non-vested restricted stock — end of period | 1,581,883 | $ | 19.77 | 1,824,990 | $ | 21.87 | ||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||||
Options | Price | Options | Price | Options | Price | |||||||||||||||||||
Outstanding — beginning of period | 4,558,838 | $ | 23.44 | 5,123,056 | $ | 22.74 | 7,614,655 | $ | 21.62 | |||||||||||||||
Exercised | (134,118 | ) | $ | 14.54 | (425,256 | ) | $ | 14.32 | (2,233,303 | ) | $ | 18.58 | ||||||||||||
Forfeited or expired | (1,909,898 | ) | $ | 26.18 | (138,962 | ) | $ | 25.58 | (258,296 | ) | $ | 25.59 | ||||||||||||
Outstanding — end of period | 2,514,822 | $ | 21.67 | 4,558,838 | $ | 23.44 | 5,123,056 | $ | 22.74 | |||||||||||||||
Exercisable at end of period | 2,514,197 | $ | 21.67 | 4,535,282 | $ | 23.46 | 4,810,516 | $ | 23.22 | |||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||
Weighted | Remaining | Aggregate | Weighted | Aggregate | ||||||||||||||||||||||||
Average | Contractual | Intrinsic | Average | Intrinsic | ||||||||||||||||||||||||
Number of | Exercise | Life (In | Value (In | Number of | Exercise | Value (In | ||||||||||||||||||||||
Shares | Price | Years) | Thousands) | Shares | Price | Thousands) | ||||||||||||||||||||||
$12.59 – $13.87 | 17,547 | $ | 13.32 | 2.48 | $ | 72 | 17,547 | $ | 13.32 | $ | 72 | |||||||||||||||||
$14.09 – $18.73 | 1,084,869 | $ | 16.23 | 3.48 | 1,344 | 1,084,244 | $ | 16.23 | 1,344 | |||||||||||||||||||
$20.02 – $29.00 | 1,189,246 | $ | 24.50 | 2.73 | — | 1,189,246 | $ | 24.50 | — | |||||||||||||||||||
$29.93 – $50.81 | 223,160 | $ | 33.66 | 1.79 | — | 223,160 | $ | 33.66 | — | |||||||||||||||||||
2,514,822 | $ | 21.67 | 2.97 | $ | 1,416 | 2,514,197 | $ | 21.67 | $ | 1,416 | ||||||||||||||||||
Options Outstanding and Exercisable | ||||||||||||||||
Weighted | Weighted Average | |||||||||||||||
Average | Remaining | Aggregate Intrinsic | ||||||||||||||
Number of | Exercise | Contractual Life | Value | |||||||||||||
Shares | Price | (In Years) | (In thousands) | |||||||||||||
$13.54 – $18.44 | 549,306 | $ | 16.07 | 2.86 | $ | 4,628 | ||||||||||
$20.02 – $27.77 | 1,121,798 | $ | 24.47 | 1.68 | 637 | |||||||||||
$29.00 – $38.30 | 122,110 | $ | 31.51 | 2.18 | — | |||||||||||
1,793,214 | $ | 5,265 | ||||||||||||||
62
Financial | Financial | |||||||||||||||||||||||||||||||
Instruments | Unrealized | Accumulated | Instruments | Unrealized | Accumulated | |||||||||||||||||||||||||||
Cumulative | Designated as | Gain | Other | Cumulative | Designated as | Gain | Other | |||||||||||||||||||||||||
Translation | Cash Flow | (Loss) on | Comprehensive | Translation | Cash Flow | (Loss) on | Comprehensive | |||||||||||||||||||||||||
Adjustments | Hedges | Investments | Income (Loss) | Adjustments | Hedges | Investments | Income (Loss) | |||||||||||||||||||||||||
Balance at December 31, 2007 | $ | 13,210 | $ | (87 | ) | $ | 64 | $ | 13,187 | |||||||||||||||||||||||
Foreign currency translation adjustment, net of taxes of $0 | (6,171 | ) | — | — | (6,171 | ) | ||||||||||||||||||||||||||
Changes in value of financial instruments designated as cash flow hedges, net of tax of $299 | — | 390 | — | 390 | ||||||||||||||||||||||||||||
Change in unrealized (loss) on investments, net of tax benefit of $143 | — | — | (187 | ) | (187 | ) | ||||||||||||||||||||||||||
Balance at December 31, 2008 | $ | 7,039 | $ | 303 | $ | (123 | ) | $ | 7,219 | $ | 7,039 | $ | 303 | $ | (123 | ) | $ | 7,219 | ||||||||||||||
Foreign currency translation adjustment, net of taxes of $0 | 3,062 | — | — | 3,062 | 3,062 | — | — | 3,062 | ||||||||||||||||||||||||
Changes in value of financial instruments designated as cash flow hedges, net of tax of $83 | — | 267 | — | 267 | — | 267 | — | 267 | ||||||||||||||||||||||||
Change in unrealized gain on investments, net of tax benefit of $29 - | — | — | 92 | 92 | ||||||||||||||||||||||||||||
Change in unrealized gain on investments, net of tax of $29 | — | — | 92 | 92 | ||||||||||||||||||||||||||||
Balance at December 31, 2009 | $ | 10,101 | $ | 570 | $ | (31 | ) | $ | 10,640 | $ | 10,101 | $ | 570 | $ | (31 | ) | $ | 10,640 | ||||||||||||||
Foreign currency translation adjustment, net of taxes of $0 | 3,710 | — | — | 3,710 | ||||||||||||||||||||||||||||
Changes in value of financial instruments designated as cash flow hedges, net of tax benefit of $1,576 | — | (2,600 | ) | — | (2,600 | ) | ||||||||||||||||||||||||||
Change in unrealized gain on investments, net of tax of $17 | — | — | 28 | 28 | ||||||||||||||||||||||||||||
Balance at December 31, 2010 | $ | 13,811 | $ | (2,030 | ) | $ | (3 | ) | $ | 11,778 | ||||||||||||||||||||||
6364
19) | Stock-Based Compensation |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Stock-based compensation expense by type of award: | ||||||||||||||||||||||||
Employee stock options | $ | 158 | $ | 1,936 | $ | 3,516 | $ | — | $ | 158 | $ | 1,936 | ||||||||||||
Restricted stock | 8,218 | 12,210 | 8,481 | 10,026 | 8,218 | 12,210 | ||||||||||||||||||
Employee stock purchase plan | 469 | 1,128 | 921 | 578 | 469 | 1,128 | ||||||||||||||||||
Total stock-based compensation | 8,845 | 15,274 | 12,918 | 10,604 | 8,845 | 15,274 | ||||||||||||||||||
Tax effect on stock-based compensation | 1,258 | (226 | ) | (5,712 | ) | (1,253 | ) | 1,258 | (226 | ) | ||||||||||||||
Net effect on net income or net loss | $ | 10,103 | $ | 15,048 | $ | 7,206 | $ | 9,351 | $ | 10,103 | $ | 15,048 | ||||||||||||
Effect on earnings or loss per share: | ||||||||||||||||||||||||
Effect on net earnings or loss per share: | ||||||||||||||||||||||||
Basic | $ | 0.20 | $ | 0.30 | $ | 0.13 | $ | 0.19 | $ | 0.20 | $ | 0.30 | ||||||||||||
Diluted | $ | 0.20 | $ | 0.30 | $ | 0.13 | $ | 0.18 | $ | 0.20 | $ | 0.30 | ||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Cost of sales | $ | 1,298 | $ | 2,272 | $ | 1,564 | $ | 1,452 | $ | 1,298 | $ | 2,272 | ||||||||||||
Research and development expense | 2,026 | 3,698 | 3,275 | 2,391 | 2,026 | 3,698 | ||||||||||||||||||
Selling, general and administrative expense | 5,521 | 9,304 | 8,079 | 6,761 | 5,521 | 9,304 | ||||||||||||||||||
Total pre-tax stock-based compensation expense | $ | 8,845 | $ | 15,274 | $ | 12,918 | $ | 10,604 | $ | 8,845 | $ | 15,274 | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Employee stock purchase rights: | ||||||||||||
Expected life (years) | 0.5 | 0.5 | 0.5 | |||||||||
Risk-free interest rate | 0.5 | % | 2.6 | % | 5.0 | % | ||||||
Expected volatility | 68.0 | % | 47.3 | % | 33.0 | % | ||||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % |
6465
Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Employee stock purchase rights: | ||||||||||||
Expected life (years) | 0.5 | 0.5 | 0.5 | |||||||||
Risk-free interest rate | 0.2 | % | 0.5 | % | 2.6 | % | ||||||
Expected volatility | 48.7 | % | 68.0 | % | 47.3 | % | ||||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % |
Employee Benefit Plans |
66
Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Numerator: | ||||||||||||
Income (loss) from continuing operations | $ | 132,919 | $ | (149,361 | ) | $ | 40,010 | |||||
Income (loss) from discontinued operations, net of tax | 9,668 | (63,298 | ) | (9,893 | ) | |||||||
Net income (loss) | $ | 142,587 | $ | (212,659 | ) | $ | 30,117 | |||||
Denominator: | ||||||||||||
Shares used in net income (loss) per common share — basic | 50,077,000 | 49,318,000 | 49,717,000 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options, restricted stock and employee stock purchase plan | 850,000 | — | 1,037,000 | |||||||||
Shares used in net income (loss) per common share — diluted | 50,927,000 | 49,318,000 | 50,754,000 | |||||||||
Basic income (loss) per common share: | ||||||||||||
Continuing operations | $ | 2.66 | $ | (3.03 | ) | $ | 0.81 | |||||
Discontinued operations | 0.19 | (1.28 | ) | (0.20 | ) | |||||||
Net income (loss) | $ | 2.85 | $ | (4.31 | ) | $ | 0.61 | |||||
Diluted income (loss) per common share: | ||||||||||||
Continuing operations | $ | 2.61 | $ | (3.03 | ) | $ | 0.79 | |||||
Discontinued operations | 0.19 | (1.28 | ) | (0.20 | ) | |||||||
Net income (loss) | $ | 2.80 | $ | (4.31 | ) | $ | 0.59 | |||||
22) | Geographic, Product and Significant Customer Information |
67
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Geographic net sales | ||||||||||||||||||||||||
United States | $ | 222,910 | $ | 365,657 | $ | 477,801 | $ | 484,139 | $ | 212,639 | $ | 346,402 | ||||||||||||
Japan | 49,394 | 94,843 | 103,474 | 118,537 | 47,704 | 92,657 | ||||||||||||||||||
Europe | 65,858 | 95,673 | 88,279 | 96,545 | 63,876 | 95,360 | ||||||||||||||||||
Asia | 73,244 | 90,821 | 110,933 | 153,893 | 68,474 | 86,961 | ||||||||||||||||||
$ | 411,406 | $ | 646,994 | $ | 780,487 | $ | 853,114 | $ | 392,693 | $ | 621,380 | |||||||||||||
65
Years Ended December 31, | ||||||||
2010 | 2009 | |||||||
Long — lived assets(1) | ||||||||
United States | $ | 54,840 | $ | 52,143 | ||||
Japan | 4,273 | 5,886 | ||||||
Europe | 4,970 | 3,621 | ||||||
Asia | 8,597 | 7,838 | ||||||
$ | 72,680 | $ | 69,488 | |||||
Years Ended December 31, | ||||||||
2009 | 2008 | |||||||
Long — lived assets | ||||||||
United States | $ | 52,143 | $ | 60,942 | ||||
Japan | 5,886 | 11,527 | ||||||
Europe | 3,621 | 3,353 | ||||||
Asia | 7,838 | 8,812 | ||||||
$ | 69,488 | $ | 84,634 | |||||
(1) | Long-lived assets include property, plant and equipment, net and other assets. |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Instruments and Control Systems | $ | 224,590 | $ | 336,340 | $ | 377,992 | $ | 430,468 | $ | 205,877 | $ | 313,702 | ||||||||||||
Power and Reactive Gas Products | 148,191 | 246,107 | 319,403 | 343,827 | 148,191 | 243,789 | ||||||||||||||||||
Vacuum and Other Products | 38,625 | 64,547 | 83,092 | 78,819 | 38,625 | 63,889 | ||||||||||||||||||
$ | 411,406 | $ | 646,994 | $ | 780,487 | $ | 853,114 | $ | 392,693 | $ | 621,380 | |||||||||||||
Current assets | $ | 693 | ||
Intangible assets | 9,010 | |||
Other assets | 4,039 | |||
Goodwill | 15,407 | |||
Total assets acquired | 29,149 | |||
Current liabilities | (844 | ) | ||
Deferred tax liabilities | (3,632 | ) | ||
Total liabilities assumed | (4,476 | ) | ||
Total purchase price including acquisition costs | $ | 24,673 | ||
6668
Customer relationships | $ | 2,300 | 8 year useful life | |||
Completed technology | 5,500 | 6 year useful life | ||||
Others | 310 | 2-5 year useful life | ||||
In-process research and development | 900 | |||||
$ | 9,010 | |||||
Operating Leases | Operating Leases | |||||||
Year ending December 31, | ||||||||
2010 | $ | 7,794 | ||||||
2011 | 6,005 | $ | 7,447 | |||||
2012 | 5,155 | 6,633 | ||||||
2013 | 3,190 | 5,182 | ||||||
2014 | 2,738 | 3,483 | ||||||
2015 | 2,760 | |||||||
Thereafter | 5,238 | 3,653 | ||||||
Total minimum lease payments | $ | 30,120 | $ | 29,158 | ||||
67
69
24) | Subsequent Event |
6870
Quarter Ended | ||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||||
(Table in thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
2009 | ||||||||||||||||
Statement of Operations Data | ||||||||||||||||
Net sales | $ | 76,719 | $ | 79,155 | $ | 106,262 | $ | 149,270 | ||||||||
Gross profit | 10,591 | 25,528 | 39,479 | 62,734 | ||||||||||||
Income (loss) from operations(1) | (40,609 | ) | (222,242 | ) | 1,941 | 20,411 | ||||||||||
Net income (loss)(2) | $ | (16,499 | ) | $ | (207,134 | ) | $ | (3,973 | ) | $ | 14,947 | |||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | (0.34 | ) | $ | (4.20 | ) | $ | (0.08 | ) | $ | 0.30 | |||||
Diluted | $ | (0.34 | ) | $ | (4.20 | ) | $ | (0.08 | ) | $ | 0.30 | |||||
2008 | ||||||||||||||||
Statement of Operations Data | ||||||||||||||||
Net sales | $ | 193,448 | $ | 171,002 | $ | 157,364 | $ | 125,180 | ||||||||
Gross profit | 81,907 | 70,488 | 62,939 | 44,609 | ||||||||||||
Income (loss) from operations(3) | 27,844 | 12,905 | 7,988 | (13,204 | ) | |||||||||||
Net income (loss)(4)(5) | $ | 20,382 | $ | 9,234 | $ | 6,791 | $ | (6,290 | ) | |||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.39 | $ | 0.19 | $ | 0.14 | $ | (0.13 | ) | |||||||
Diluted | $ | 0.39 | $ | 0.18 | $ | 0.14 | $ | (0.13 | ) |
Quarter Ended | ||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||||
(Table in thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
2010 | ||||||||||||||||
Statement of Operations Data | ||||||||||||||||
Net sales | $ | 192,166 | $ | 220,647 | $ | 221,323 | $ | 218,978 | ||||||||
Gross profit | 85,495 | 97,319 | 98,503 | 97,321 | ||||||||||||
Income from continuing operations | 28,998 | 33,144 | 36,601 | 34,176 | ||||||||||||
Income from discontinued operations, net of taxes(1) | 227 | 5,633 | 2,035 | 1,773 | ||||||||||||
Net income | $ | 29,225 | $ | 38,777 | $ | 38,636 | $ | 35,949 | ||||||||
Basic income per share: | ||||||||||||||||
Continuing operations | $ | 0.58 | $ | 0.66 | $ | 0.73 | $ | 0.68 | ||||||||
Net income | $ | 0.59 | $ | 0.77 | $ | 0.77 | $ | 0.71 | ||||||||
Diluted income per share: | ||||||||||||||||
Continuing operations | $ | 0.57 | $ | 0.65 | $ | 0.72 | $ | 0.67 | ||||||||
Net income | $ | 0.58 | $ | 0.76 | $ | 0.76 | $ | 0.70 | ||||||||
2009 | ||||||||||||||||
Statement of Operations Data | ||||||||||||||||
Net sales | $ | 72,265 | $ | 75,623 | $ | 102,028 | $ | 142,777 | ||||||||
Gross profit | 8,518 | 24,250 | 37,874 | 59,574 | ||||||||||||
Income (loss) from continuing operations(2) | (14,973 | ) | (146,348 | ) | (2,446 | ) | 14,406 | |||||||||
Income (loss) from discontinued operations, net of taxes(3) | (1,526 | ) | (60,786 | ) | (1,527 | ) | 541 | |||||||||
Net income (loss)(4) | $ | (16,499 | ) | $ | (207,134 | ) | $ | (3,973 | ) | $ | 14,947 | |||||
Basic income (loss) per share: | ||||||||||||||||
Continuing operations | $ | (0.31 | ) | $ | (2.97 | ) | $ | (0.05 | ) | $ | 0.29 | |||||
Net income (loss) | $ | (0.34 | ) | $ | (4.20 | ) | $ | (0.08 | ) | $ | 0.30 | |||||
Diluted income (loss) per share: | ||||||||||||||||
Continuing operations | $ | (0.31 | ) | $ | (2.97 | ) | $ | (0.05 | ) | $ | 0.29 | |||||
Net income (loss) | $ | (0.34 | ) | $ | (4.20 | ) | $ | (0.08 | ) | $ | 0.30 |
(1) | Income | |
(2) | Loss from operations for the quarter ended March 31, 2009 includes | |
Loss from discontinued operations, net of taxes for the quarter ended June 30, 2009 includes charges related to the discontinued product lines of $53.8 million for the goodwill impairment and $7.3 million for the intangible asset impairment. | ||
(4) | Net (loss) for the quarter ended March 31, 2009 includes a benefit of $6.4 million attributable to the reversal of reserve items for uncertain tax positions, as a result of a U.S. federal tax audit close. | |
6971
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
• | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; | |
• | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and | |
• | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
7072
Item 9B. | Other Information |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
7173
Item 13. | Certain Relationships and Related Transactions and Director Independence |
Item 14. | Principal Accountant Fees and Services |
Item 15. | Exhibits and Financial Statement Schedules |
Financial Statements: | ||||
Exhibit No. | Title | |||
+3 | .1(1) | Restated Articles of Organization | ||
+3 | .2(2) | Articles of Amendment, as filed with the Secretary of State of Massachusetts on May 18, 2001 | ||
+3 | .3(3) | Articles of Amendment, as filed with the Secretary of State of Massachusetts on May 16, 2002 | ||
+3 | .4(4) | Amended and Restated By-Laws | ||
+4 | .1(4) | Specimen certificate representing the common stock | ||
+10 | .1(5)* | Second Amended and Restated 1997 Director Stock Option Plan, and forms of option agreements thereto | ||
2004 Stock Incentive Plan, as amended (the “2004 Plan”) | ||||
7274
Exhibit No. | Title | |||
+10 | .5(9)* | Form of Restricted Stock Award under the 2004 Plan | ||
+10 | .6(10)* | Form of Restricted Stock Unit Agreement (cliff vesting) under the 2004 Plan | ||
+10 | .7(11)* | Form of Restricted Stock Unit Agreement for Initial Grant to Non-Employee Directors under the 2004 Plan | ||
+10 | .8(11)* | Form of Restricted Stock Unit Agreement for Annual Grant to Non-Employee Directors under the 2004 Plan | ||
+10 | .9(11)* | Form of Performance-Based Restricted Stock Unit Agreement under the 2004 Plan | ||
+10 | .10(11)* | Form of Time-Based Restricted Stock Unit Agreement under the 2004 Plan | ||
+10 | .11(15)* | Form of Restricted Stock Unit Agreement under the 2004 Plan | ||
+10 | .12(12)* | Second Restated 1995 Stock Incentive Plan (the “1995 Plan”) | ||
+10 | .13(13)* | Form of Nonstatutory Stock Option Agreement under the 1995 Plan | ||
+10 | .14(8)* | Form of Performance Stock Award under Registrant’s 1995 Plan | ||
+10 | .15(13)* | Fourth Restated 1999 Employee Stock Purchase Plan | ||
+10 | .16(13)* | Third Restated International Employee Stock Purchase Plan | ||
+10 | .17(14)* | Employment Agreement dated as of July 1, 2005 between John Bertucci and the Registrant | ||
+10 | .18(15)* | Employment Agreement dated July 1, 2005 between Leo Berlinghieri and the Registrant, as amended on November 13, 2007 | ||
+10 | .19(21)* | Amendment, dated November 10, 2008, to Employment Agreement between Leo Berlinghieri and the Registrant, dated July 1, 2005, as amended on November 13, 2007 (the “Amended Berlinghieri Employee Agreement”) | ||
+10 | .20(20)* | Amendment, dated October 19, 2009, to the Amended Berlinghieri Employment Agreement | ||
+10 | .21(14)* | Employment Agreement dated as of July 1, 2005 between Ronald C. Weigner and the Registrant (the “Weigner Employment Agreement”) | ||
+10 | .22(21)* | Amendment, dated November 10, 2008, to the Weigner Employment Agreement | ||
+10 | .23(14)* | Employment Agreement dated as of July 1, 2005 between William D. Stewart and the Registrant | ||
+10 | .24(13)* | Employment Agreement dated as of July 30, 2004 between John Smith and the Registrant (the “Smith Employment Agreement”) | ||
+10 | .25(21)* | Amendment, dated November 10, 2008, to the Smith Employment Agreement | ||
+10 | .26(16)* | Employment Agreement dated as of April 25, 2005 between Gerald Colella and the Registrant | ||
+10 | .27(20)* | Amendment, dated November 10, 2008, to Employment Agreement between Gerald Colella and the Registrant, dated April 25, 2005 (the “Amended Colella Employment Agreement”) | ||
+10 | .28(21)* | Amendment, dated October 19, 2009, to the Amended Colella Employment Agreement | ||
+10 | .29(17)* | Summary of 2010 Salaries of Named Executive Officers | ||
+10 | .30(17)* | Summary of 2010 Management Incentive Bonus Plans for Named Executive Officers | ||
+10 | .31(17)* | Summary of Equity Compensation with Non-Employee Directors | ||
+10 | .32(20)* | Summary of Cash Compensation to Non-Employee Directors | ||
+10 | .33(18) | Global Supply Agreement dated April 12, 2005 by and between the Registrant and Applied Materials, Inc. | ||
+10 | .34(19) | Settlement Agreement dated as of October 3, 2005 by and between the Registrant, Applied Science and Technology, Inc. and Advanced Energy, Inc. | ||
21 | .1 | Subsidiaries of the Registrant | ||
23 | .1 | Consent of PricewaterhouseCoopers LLP | ||
31 | .1 | Certification of Principal Executive Officer pursuant toRule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended | ||
31 | .2 | Certification of Principal Financial Officer pursuant toRule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended |
73
Exhibit No. | Title | |||
32 | .1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
Exhibit No. | Title | |||
+10 | .3(6)* | Form of Nonstatutory Stock Option Agreement to be granted under the 2004 Plan | ||
+10 | .4(7)* | Form of Restricted Stock Unit Agreement for Initial Grant to Non-Employee Directors under the 2004 Plan | ||
+10 | .5(7)* | Form of Restricted Stock Unit Agreement for Annual Grant to Non-Employee Directors under the 2004 Plan | ||
+10 | .6(7)* | Form of Performance-Based Restricted Stock Unit Agreement under the 2004 Plan | ||
+10 | .7(7)* | Form of Time-Based Restricted Stock Unit Agreement under the 2004 Plan | ||
10 | .8* | Form of Time-Based Restricted Stock Unit Agreement and Form of Performance-Based Restricted Stock Unit Agreement under the 2004 Plan (grants beginning in 2011) | ||
+10 | .9(8)* | Second Restated 1995 Stock Incentive Plan (the “1995 Plan”) | ||
+10 | .10(9)* | Form of Nonstatutory Stock Option Agreement under the 1995 Plan | ||
+10 | .11(9)* | Employment Agreement dated as of July 30, 2004 between John Smith and the Registrant (the “Smith Employment Agreement”) | ||
+10 | .12(10)* | Employment Agreement dated as of July 1, 2005 between John Bertucci and the Registrant | ||
+10 | .13(10)* | Employment Agreement dated as of July 1, 2005 between William D. Stewart and the Registrant | ||
+10 | .14(11)* | Employment Agreement dated July 1, 2005 between Leo Berlinghieri and the Registrant, as amended on November 13, 2007 | ||
+10 | .15(12)* | Employment Agreement dated as of April 25, 2005 between Gerald Colella and the Registrant | ||
+10 | .16(13)* | 2010 Management Incentive Bonus Plans for Named Executive Officers | ||
+10 | .17(14) | Global Supply Agreement dated April 12, 2005 by and between the Registrant and Applied Materials, Inc. | ||
+10 | .18(15)* | Amendment, dated October 19, 2009, to the Amended Berlinghieri Employment Agreement | ||
+10 | .19(15)* | Amendment, dated October 19, 2009, to the Amended Colella Employment Agreement | ||
+10 | .20(16)* | Amendment, dated November 10, 2008, to Employment Agreement between Leo Berlinghieri and the Registrant, dated July 1, 2005, as amended on November 13, 2007 (the “Amended Berlinghieri Employee Agreement”) | ||
+10 | .21(16)* | Amendment, dated November 10, 2008, to the Smith Employment Agreement | ||
+10 | .22(16)* | Amendment, dated November 10, 2008, to Employment Agreement between Gerald Colella and the Registrant, dated April 25, 2005 (the “Amended Colella Employment Agreement”) | ||
10 | .23* | Employment Agreement dated as of January 6, 2006 between Seth Bagshaw and the Registrant | ||
21 | .1 | Subsidiaries of the Registrant | ||
23 | .1 | Consent of PricewaterhouseCoopers LLP | ||
31 | .1 | Certification of Principal Executive Officer pursuant toRule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended | ||
31 | .2 | Certification of Principal Financial Officer pursuant toRule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended | ||
32 | .1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
101 | The following materials from MKS Instruments, Inc.’s Annual Report onForm 10-K for the year ended December 31, 2010, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Stockholders’ Equity, (iv) the Consolidated Statements of Cash Flows, (v) Notes to Consolidated Financial Statements, and (vi) Schedule II – Valuation and Qualifying Accounts, tagged as blocks of text |
+ | Previously filed | |
* | Management contract or compensatory plan arrangement filed as an Exhibit to thisForm10-K pursuant to Item 15(b) of this report. |
75
(1) | Incorporated by reference to the Registration Statement onForm S-4 (FileNo.333-49738) filed with the Securities and Exchange Commission on November 13, 2000. | |
(2) | Incorporated by reference to the Registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2001. | |
(3) | Incorporated by reference to the Registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2002. | |
(4) | Incorporated by reference to the Registration Statement onForm S-1 filed with the Securities and Exchange Commission on March 2, 1999. | |
(5) | Incorporated by reference to the Registrant’s Annual Report on Form | |
(6) | ||
Incorporated by reference to the Registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 2004. | ||
Incorporated by reference to the Registrant’s Annual Report on Form | ||
Incorporated by reference to the Registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 2002. | ||
Incorporated by reference to the Registrant’s Current Report on Form | ||
Incorporated by reference to the Registrant’s Current Report on Form | ||
Incorporated by reference to the Registrant’s Annual Report on Form | ||
Incorporated by reference to the Registrant’s Current Report on Form | ||
Incorporated by reference to the Registrant’s Current Report on Form | ||
Incorporated by reference to the Registrant’s Current Report on Form | ||
Incorporated by reference to the Registrant’s Current Report on Form | ||
Incorporated by reference to the Registrant’s Annual Report on Form |
74
76
Additions | Additions | |||||||||||||||||||||||||||||||||||||||
Balance at | Charged to | Charged to | Balance at | Charged to | ||||||||||||||||||||||||||||||||||||
Beginning of | Costs and | Other | Deductions & | Balance at | Beginning of | Costs and | Charged to | Deductions & | Balance at | |||||||||||||||||||||||||||||||
Description | Year | Expenses | Accounts | Write-offs | End of Year | Year | Expenses | Other Accounts | Write-offs | End of Year | ||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Accounts receivable allowance | ||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2010 | $ | 2,415 | $ | 3,637 | $ | — | $ | 3,495 | $ | 2,557 | ||||||||||||||||||||||||||||||
2009 | $ | 2,148 | $ | 3,655 | $ | — | $ | 3,388 | $ | 2,415 | $ | 2,148 | $ | 3,655 | $ | — | $ | 3,388 | $ | 2,415 | ||||||||||||||||||||
2008 | $ | 2,379 | $ | 4,612 | $ | — | $ | 4,843 | $ | 2,148 | $ | 2,379 | $ | 4,612 | $ | — | $ | 4,843 | $ | 2,148 | ||||||||||||||||||||
2007 | $ | 4,533 | $ | 1,721 | $ | — | $ | 3,875 | $ | 2,379 |
Additions | ||||||||||||||||||||
Balance at | Charged to | |||||||||||||||||||
Beginning of | Costs and | Charged to | Balance at | |||||||||||||||||
Description | Year | Expenses | Other Accounts | Deductions | End of Year | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Valuation allowance on deferred tax asset | ||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||
2010 | $ | 5,201 | $ | — | $ | 20,833 | $ | 767 | $ | 25,267 | ||||||||||
2009 | $ | 4,653 | $ | — | $ | 548 | $ | — | $ | 5,201 | ||||||||||
2008 | $ | 534 | $ | 4,119 | $ | — | $ | — | $ | 4,653 |
7577
By: | /s/ Leo Berlinghieri |
/s/ John R. Bertucci John R. Bertucci | Chairman of the Board of Directors | February | ||||
/s/ Leo Berlinghieri Leo Berlinghieri | Chief Executive Officer, President and Director (Principal Executive Officer) | February | ||||
/s/ Seth H. Bagshaw Seth H. Bagshaw | Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | February | ||||
/s/ Cristina H. Amon Cristina H. Amon | Director | February | ||||
/s/ Robert R. Anderson Robert R. Anderson | Director | February | ||||
/s/ Gregory R. Beecher Gregory R. Beecher | Director | February | ||||
/s/ Richard S. Chute Richard S. Chute | Director | February | ||||
/s/ Peter R. Hanley Peter R. Hanley | Director | February | ||||
/s/ Hans-Jochen Kahl Hans-Jochen Kahl | Director | February | ||||
/s/ Louis P. Valente Louis P. Valente | Director | February 22, |
7678