Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 28, 2014 | Jun. 29, 2014 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SANDISK CORP | |
Entity Central Index Key | 1000180 | |
Current Fiscal Year End Date | -16 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | 28-Dec-14 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | Q4 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 213,013,780 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $20,109,794,996 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Current assets: | ||
Cash and cash equivalents | $809,003,000 | $986,246,000 |
Short-term marketable securities | 1,455,509,000 | 1,919,611,000 |
Accounts receivable, net | 842,476,000 | 682,809,000 |
Inventory | 698,011,000 | 756,975,000 |
Deferred taxes | 180,134,000 | 138,192,000 |
Other current assets | 214,992,000 | 166,885,000 |
Total current assets | 4,200,125,000 | 4,650,718,000 |
Long-term marketable securities | 2,758,475,000 | 3,179,471,000 |
Property and equipment, net | 724,357,000 | 655,794,000 |
Notes receivable and investments in Flash Ventures | 962,817,000 | 1,134,620,000 |
Deferred taxes | 161,827,000 | 134,669,000 |
Goodwill | 831,328,000 | 318,111,000 |
Intangible assets, net | 542,351,000 | 247,904,000 |
Other non-current assets | 108,677,000 | 167,430,000 |
Total assets | 10,289,957,000 | 10,488,717,000 |
Current liabilities: | ||
Accounts payable trade | 404,237,000 | 282,582,000 |
Accounts payable to related parties | 136,051,000 | 146,964,000 |
Convertible short-term debt | 869,645,000 | 0 |
Other current accrued liabilities | 506,293,000 | 509,732,000 |
Deferred income on shipments to distributors and retailers and deferred revenue | 274,657,000 | 291,302,000 |
Total current liabilities | 2,190,883,000 | 1,230,580,000 |
Convertible long-term debt | 1,199,696,000 | 1,985,363,000 |
Non-current liabilities | 245,554,000 | 307,083,000 |
Total liabilities | 3,636,133,000 | 3,523,026,000 |
Commitments and contingencies (see Note 14) | ||
Convertible short-term debt conversion obligation | 127,143,000 | 0 |
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, Authorized shares: 4,000,000, Issued and outstanding: none | 0 | 0 |
Common stock, $0.001 par value, Authorized shares: 800,000,000, Issued and outstanding: 215,743,090 in 2014 and 225,290,940 in 2013 | 216,000 | 225,000 |
Capital in excess of par value | 5,236,766,000 | 5,040,017,000 |
Retained earnings | 1,499,149,000 | 2,004,089,000 |
Accumulated other comprehensive loss | -208,072,000 | -76,459,000 |
Total stockholders’ equity | 6,528,059,000 | 6,967,872,000 |
Non-controlling interests | -1,378,000 | -2,181,000 |
Total equity | 6,526,681,000 | 6,965,691,000 |
Total liabilities, convertible short-term debt conversion obligation and equity | $10,289,957,000 | $10,488,717,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Common Stock [Member] | ||
Class of Stock | ||
Common Stock, Par Value | $0.00 | $0.00 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 215,743,090 | 225,290,940 |
Common stock, shares outstanding | 215,743,090 | 225,290,940 |
Preferred Stock [Member] | ||
Class of Stock | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Revenue | $6,627,701,000 | $6,170,003,000 | $5,052,509,000 |
Cost of revenue | 3,458,954,000 | 3,252,988,000 | 3,326,747,000 |
Amortization of acquisition-related intangible assets | 100,899,000 | 49,532,000 | 42,542,000 |
Total cost of revenue | 3,559,853,000 | 3,302,520,000 | 3,369,289,000 |
Gross profit | 3,067,848,000 | 2,867,483,000 | 1,683,220,000 |
Operating expenses: | |||
Research and development | 852,310,000 | 742,268,000 | 602,765,000 |
Sales and marketing | 383,288,000 | 276,312,000 | 224,054,000 |
General and administrative | 214,902,000 | 192,310,000 | 150,401,000 |
Amortization of acquisition-related intangible assets | 26,423,000 | 11,155,000 | 9,045,000 |
Impairment of acquisition-related intangible assets | 0 | 83,228,000 | 860,000 |
Restructuring and other | 32,991,000 | 0 | 0 |
Total operating expenses | 1,509,914,000 | 1,305,273,000 | 987,125,000 |
Operating income | 1,557,934,000 | 1,562,210,000 | 696,095,000 |
Interest income | 51,811,000 | 48,785,000 | 58,991,000 |
Gain (loss) on investments | 4,763,000 | 3,219,000 | -7,762,000 |
Interest (expense) and other income (expense), net | -125,478,000 | -98,065,000 | -120,408,000 |
Total other income (expense), net | -68,904,000 | -46,061,000 | -69,179,000 |
Income before income taxes | 1,489,030,000 | 1,516,149,000 | 626,916,000 |
Provision for income taxes | 481,584,000 | 473,492,000 | 209,512,000 |
Net income | $1,007,446,000 | $1,042,657,000 | $417,404,000 |
Net income per share: | |||
Basic | $4.52 | $4.44 | $1.72 |
Diluted | $4.23 | $4.34 | $1.70 |
Shares used in computing net income per share: | |||
Basic | 222,714 | 234,886 | 242,076 |
Diluted | 238,209 | 240,236 | 245,253 |
Cash dividends declared per share | $1.05 | $0.45 | $0 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Net income | $1,007,446 | $1,042,657 | $417,404 |
Other comprehensive loss, before tax: | |||
Unrealized holding gain (loss) on marketable securities | -3,511 | -6,448 | 11,160 |
Reclassification adjustment for realized gain on marketable securities included in net income | -7,543 | -2,375 | -2,969 |
Net unrealized holding gain (loss) on marketable securities | -11,054 | -8,823 | 8,191 |
Foreign currency translation adjustments | -153,975 | -240,835 | -169,190 |
Unrealized holding loss on derivatives qualifying as cash flow hedges | -99 | -74,834 | -38,197 |
Reclassification adjustment for realized loss on derivatives qualifying as cash flow hedges included in net income | 25,418 | 41,523 | 10,946 |
Net unrealized holding gain (loss) on derivatives qualifying as cash flow hedges | 25,319 | -33,311 | -27,251 |
Total other comprehensive loss, before tax | -139,710 | -282,969 | -188,250 |
Income tax benefit related to items of other comprehensive loss | -8,097 | -41,389 | -20,670 |
Total other comprehensive loss, net of tax | -131,613 | -241,580 | -167,580 |
Comprehensive income | $875,833 | $801,077 | $249,824 |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity (USD $) | 12 Months Ended | |||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | |
Statement of Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $6,526,681,000 | $6,965,691,000 | $7,259,600,000 | $7,060,839,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,007,446,000 | 1,042,657,000 | 417,404,000 | |
Other Comprehensive Income (Loss), Net of Tax | -131,613,000 | -241,580,000 | -167,580,000 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 803,000 | 2,207,000 | -782,000 | |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | -87,000 | |||
Stock Issued During Period, Value, New Issues | 145,669,000 | 241,324,000 | 63,316,000 | |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 35,817,000 | 24,721,000 | 22,986,000 | |
Net cash received for share repurchase contracts | 0 | 0 | 2,675,000 | |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 157,328,000 | 100,641,000 | 79,132,000 | |
Tax Effect From Share Based Plans | 45,120,000 | 583,000 | 11,691,000 | |
Dividends And Dividend Equivalents Declared On Common Stock And Restricted Stock Units | -238,170,000 | -102,896,000 | ||
Stock Repurchased and Retired During Period, Value | -1,341,476,000 | -1,589,540,000 | -230,081,000 | |
Debt Instrument Convertible Carrying Amount Of Equity Component And Adjustment To Additional Paid In Capital Debt Issuance Costs | 193,000 | 349,250,000 | ||
Adjustments to Additional Paid in Capital, Convertible Bond Hedge Purchased (Sold), net | -338,989,000 | |||
Adjustments to Additional Paid in Capital, Warrant Issued | 217,800,000 | |||
Adjustments to Additional Paid in Capital, Convertible Debt Issued (Redeemed) | -25,000 | |||
Fair Value Stock Options Restricted Stock Based Awards Assumed In Connection With Acquisitions | 7,041,000 | |||
Reclassifications of Temporary to Permanent Equity | -127,143,000 | |||
Common Stock [Member] | ||||
Statement of Equity | ||||
Common Stock, Shares, Outstanding | 215,743,000 | 225,291,000 | 241,432,000 | 242,552,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 216,000 | 225,000 | 241,000 | 243,000 |
Stock Issued During Period, Shares, New Issues | 4,706,000 | 7,934,000 | 3,846,000 | |
Stock Issued During Period, Value, New Issues | 5,000 | 8,000 | 4,000 | |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 639,000 | 624,000 | 685,000 | |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 1,000 | 1,000 | 0 | |
Stock Repurchased and Retired During Period, Shares | -14,893,000 | -24,699,000 | -5,651,000 | |
Stock Repurchased and Retired During Period, Value | -15,000 | -25,000 | -6,000 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 27,000 | |||
Stockholders' Equity, Other Shares | -27,000 | |||
Additional Paid-in Capital [Member] | ||||
Statement of Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 5,236,766,000 | 5,040,017,000 | 5,027,271,000 | 4,934,565,000 |
Stock Issued During Period, Value, New Issues | 145,664,000 | 241,316,000 | 63,312,000 | |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 35,816,000 | 24,720,000 | 22,986,000 | |
Net cash received for share repurchase contracts | 2,675,000 | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 157,328,000 | 100,641,000 | 79,132,000 | |
Tax Effect From Share Based Plans | 45,120,000 | 583,000 | 11,691,000 | |
Stock Repurchased and Retired During Period, Value | -67,245,000 | -582,575,000 | -87,090,000 | |
Debt Instrument Convertible Carrying Amount Of Equity Component And Adjustment To Additional Paid In Capital Debt Issuance Costs | 193,000 | 349,250,000 | ||
Adjustments to Additional Paid in Capital, Convertible Bond Hedge Purchased (Sold), net | -338,989,000 | |||
Adjustments to Additional Paid in Capital, Warrant Issued | 217,800,000 | |||
Adjustments to Additional Paid in Capital, Convertible Debt Issued (Redeemed) | -25,000 | |||
Fair Value Stock Options Restricted Stock Based Awards Assumed In Connection With Acquisitions | 7,041,000 | |||
Reclassifications of Temporary to Permanent Equity | -127,143,000 | |||
Retained Earnings [Member] | ||||
Statement of Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,499,149,000 | 2,004,089,000 | 2,071,268,000 | 1,796,849,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,007,446,000 | 1,042,657,000 | 417,404,000 | |
Dividends And Dividend Equivalents Declared On Common Stock And Restricted Stock Units | -238,170,000 | -102,896,000 | ||
Stock Repurchased and Retired During Period, Value | -1,274,216,000 | -1,006,940,000 | -142,985,000 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Statement of Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | -208,072,000 | -76,459,000 | 165,121,000 | 332,701,000 |
Other Comprehensive Income (Loss), Net of Tax | -131,613,000 | -241,580,000 | -167,580,000 | |
Stockholders' Equity, Total [Member] | ||||
Statement of Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 6,528,059,000 | 6,967,872,000 | 7,263,901,000 | 7,064,358,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,007,446,000 | 1,042,657,000 | 417,404,000 | |
Other Comprehensive Income (Loss), Net of Tax | -131,613,000 | -241,580,000 | -167,580,000 | |
Stock Issued During Period, Value, New Issues | 145,669,000 | 241,324,000 | 63,316,000 | |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 35,817,000 | 24,721,000 | 22,986,000 | |
Net cash received for share repurchase contracts | 2,675,000 | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 157,328,000 | 100,641,000 | 79,132,000 | |
Tax Effect From Share Based Plans | 45,120,000 | 583,000 | 11,691,000 | |
Dividends And Dividend Equivalents Declared On Common Stock And Restricted Stock Units | -238,170,000 | -102,896,000 | ||
Stock Repurchased and Retired During Period, Value | -1,341,476,000 | -1,589,540,000 | -230,081,000 | |
Debt Instrument Convertible Carrying Amount Of Equity Component And Adjustment To Additional Paid In Capital Debt Issuance Costs | 193,000 | 349,250,000 | ||
Adjustments to Additional Paid in Capital, Convertible Bond Hedge Purchased (Sold), net | -338,989,000 | |||
Adjustments to Additional Paid in Capital, Warrant Issued | 217,800,000 | |||
Adjustments to Additional Paid in Capital, Convertible Debt Issued (Redeemed) | -25,000 | |||
Fair Value Stock Options Restricted Stock Based Awards Assumed In Connection With Acquisitions | 7,041,000 | |||
Reclassifications of Temporary to Permanent Equity | -127,143,000 | |||
Noncontrolling Interest [Member] | ||||
Statement of Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | -1,378,000 | -2,181,000 | -4,301,000 | -3,519,000 |
Net Income (Loss) Attributable to Noncontrolling Interest | 803,000 | 2,207,000 | -782,000 | |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | ($87,000) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Cash flows from operating activities: | |||
Net income | $1,007,446,000 | $1,042,657,000 | $417,404,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred taxes | -7,915,000 | 527,000 | 34,368,000 |
Depreciation | 254,271,000 | 226,334,000 | 161,949,000 |
Amortization | 324,231,000 | 237,731,000 | 254,352,000 |
Provision for doubtful accounts | 857,000 | 2,167,000 | 1,452,000 |
Share‑based compensation expense | 155,313,000 | 99,756,000 | 78,443,000 |
Excess tax benefit from share-based plans | -44,919,000 | -27,198,000 | -16,015,000 |
Impairment and other | 6,790,000 | 75,561,000 | -17,350,000 |
Other non-operating | 636,000 | -792,000 | 9,424,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | -118,606,000 | -51,125,000 | -68,070,000 |
Inventory | 136,442,000 | 23,310,000 | -71,260,000 |
Other assets | 37,738,000 | 147,713,000 | -84,579,000 |
Accounts payable trade | 37,380,000 | 16,377,000 | -4,124,000 |
Accounts payable to related parties | -10,913,000 | -67,842,000 | -61,469,000 |
Other liabilities | -80,303,000 | 138,496,000 | -104,671,000 |
Total adjustments | 691,002,000 | 821,015,000 | 112,450,000 |
Net cash provided by operating activities | 1,698,448,000 | 1,863,672,000 | 529,854,000 |
Cash flows from investing activities: | |||
Purchases of short and long-term marketable securities | -4,106,494,000 | -4,925,520,000 | -3,178,660,000 |
Proceeds from sales of short and long-term marketable securities | 4,114,712,000 | 3,701,528,000 | 2,197,302,000 |
Proceeds from maturities of short and long-term marketable securities | 772,882,000 | 751,900,000 | 650,060,000 |
Acquisition of property and equipment, net | -232,786,000 | -213,415,000 | -487,973,000 |
Investment in Flash Ventures | -24,296,000 | -12,342,000 | -50,439,000 |
Notes receivable issuances to Flash Ventures | -181,481,000 | -37,099,000 | -142,316,000 |
Notes receivable proceeds from Flash Ventures | 231,409,000 | 124,765,000 | 511,289,000 |
Purchased technology and other assets | -24,837,000 | -8,377,000 | -4,000,000 |
Acquisitions, net of cash acquired | -1,063,798,000 | -304,320,000 | -69,629,000 |
Net cash used in investing activities | -514,689,000 | -922,880,000 | -574,366,000 |
Cash flows from financing activities: | |||
Proceeds from issuance of convertible senior notes, net of issuance costs | 0 | 1,483,125,000 | 0 |
Purchase of convertible bond hedge | 0 | -331,650,000 | 0 |
Proceeds from sale of warrants | 0 | 217,800,000 | 0 |
Repayment of debt financing | -3,212,000 | -928,061,000 | 0 |
Distribution to non-controlling interests | 0 | -87,000 | 0 |
Proceeds from employee stock programs | 181,486,000 | 266,044,000 | 86,302,000 |
Excess tax benefit from share-based plans | 44,919,000 | 27,198,000 | 16,015,000 |
Dividends paid | -234,565,000 | -101,191,000 | 0 |
Stock repurchases | -1,341,476,000 | -1,589,539,000 | -230,081,000 |
Net cash received for share repurchase contracts | 0 | 0 | 2,675,000 |
Net cash used in financing activities | -1,352,848,000 | -956,361,000 | -125,089,000 |
Effect of changes in foreign currency exchange rates on cash | -8,154,000 | 6,345,000 | -2,425,000 |
Net decrease in cash and cash equivalents | -177,243,000 | -9,224,000 | -172,026,000 |
Cash and cash equivalents at beginning of year | 986,246,000 | 995,470,000 | 1,167,496,000 |
Cash and cash equivalents at end of year | 809,003,000 | 986,246,000 | 995,470,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes, net of refunds | -433,959,000 | -373,183,000 | -360,688,000 |
Cash paid for interest expense | ($22,349,000) | ($20,403,000) | ($24,957,000) |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | Organization and Summary of Significant Accounting Policies |
Organization and Nature of Operations. SanDisk Corporation (together with its subsidiaries, the “Company”) was incorporated in the State of Delaware on June 1, 1988. The Company designs, develops, markets and manufactures data storage solutions in a variety of form factors using its flash memory, controller and firmware technologies. The Company operates in one segment, flash memory storage products. | |
Basis of Presentation. The Company’s fiscal year ends on the Sunday closest to December 31. Fiscal years 2014, 2013 and 2012 consisted of 52 weeks, while fiscal year 2015 will include 53 weeks with 14 weeks in the fourth fiscal quarter. Certain prior-period amounts have been reclassified in the footnotes to conform to the current-period presentation, including line items within other current and non-current assets and liabilities, and warranties in Note 5, “Balance Sheet Information.” For accounting and disclosure purposes, the exchange rate used to convert Japanese yen to the United States (“U.S.”) dollar for fiscal years ended December 28, 2014, December 29, 2013 and December 30, 2012 was 120.44, 104.94 and 85.99, respectively. Throughout the Notes to Consolidated Financial Statements, unless otherwise indicated, references to Net income refer to Net income attributable to common stockholders. | |
Principles of Consolidation. The Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated. Non-controlling interest represents the minority stockholders’ proportionate share of the net assets and results of operations of the Company’s majority-owned subsidiaries. The Consolidated Financial Statements also include the results of companies acquired by the Company from the date of each acquisition. | |
Use of Estimates. The preparation of Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. The estimates and judgments affect the reported amounts of assets, liabilities, revenue, expenses and related disclosure of contingent liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to customer programs and incentives, intellectual property (“IP”) claims, product returns, allowance for doubtful accounts, inventories and inventory valuation, valuation and impairments of marketable securities and investments, valuation and impairments of goodwill and long-lived assets, income taxes, warranty obligations, restructurings, contingencies, share‑based compensation and litigation. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. These estimates form the basis for making judgments about the carrying value of assets and liabilities when those values are not readily apparent from other sources. Actual results could materially differ from these estimates. | |
Revenue Recognition, Sales Returns and Allowances and Sales Incentive Programs. The Company recognizes revenue when the earnings process is complete, as evidenced by an agreement with the customer, transfer of title and acceptance, if applicable, pricing is fixed or determinable and collectability is reasonably assured. Revenue is generally recognized at the time of shipment or transfer of title for customers not eligible for price protection and/or a right of return. Sales made to distributors and retailers are generally under agreements allowing price protection and/or a right of return and, therefore, the revenue and related costs of these transactions are deferred until the retailers or distributors sell-through the merchandise to their end customer or their rights of return expire. Estimated sales returns are recorded as a reduction to revenue and deferred revenue and were not material for any period presented in the accompanying Consolidated Financial Statements. The cost of shipping products to customers is included in cost of revenue. The Company recognizes expenses related to sales commissions in the period in which the commissions are earned. | |
For multiple-element arrangements that include support or software elements, the Company analyzes whether tangible products containing software and non-software components function together and therefore should be excluded from industry-specific software revenue recognition guidance. The Company allocates revenue to each element, or the software elements as a group, based on the relative selling price determined in accordance with the Company’s normal pricing and discounting practices for the specific element when sold separately for all multiple-element arrangements. Multiple-element arrangements and arrangements that include software have not been significant to the Company’s revenue and operating results. | |
Revenue from patent licensing arrangements is recognized when earned, estimable and realizable. The timing of revenue recognition is dependent on the terms of each license agreement and on the timing of sales of licensed products. The Company generally recognizes royalty revenue when it is reported to the Company by its licensees, which is generally one quarter in arrears from the licensees’ sales of licensed products. For licensing fees that are not determined by the number of licensed units sold, the Company recognizes license fee revenue on a straight-line basis over the life of the license. | |
The Company records estimated reductions of revenue for customer and distributor incentive programs and offerings, including price protection, promotions, co-op advertising and other volume-based incentives and expected returns. All sales incentive programs are recorded as an offset to revenue or deferred revenue. Marketing development programs are recorded as a reduction to revenue. | |
Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable include amounts owed by geographically dispersed distributors, retailers and original equipment manufacturer (“OEM”) customers. No collateral is required. Provisions are provided for sales returns and credit losses. | |
The Company estimates the collectability of its accounts receivable based on a combination of factors including, but not limited to, customer credit ratings and historical experience. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company (e.g., bankruptcy filings or substantial downgrading of credit ratings), the Company provides allowances for bad debts against amounts due to reduce the net recognized receivable to the amount it reasonably believes will be collected. | |
Income Taxes. The Company accounts for income taxes using an asset and liability approach, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s Consolidated Financial Statements, but have not been reflected in the Company’s taxable income. The Company must evaluate the expected realization of its deferred tax assets and determine whether a valuation allowance needs to be established or released. In determining the need for and amount of a valuation allowance, the Company assesses the likelihood that it will be able to recover its deferred tax assets using historical levels of income, estimates of future income and tax planning strategies. A valuation allowance is established to the extent that the Company does not believe it is “more likely than not” that it will generate sufficient taxable income in future periods to realize the benefit of its deferred tax assets. | |
The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company recognizes the tax benefit from an uncertain tax position only if it is “more likely than not” the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. | |
Foreign Currency. The Company determines the functional currency for its parent company and each of its subsidiaries by reviewing the currencies in which their respective operating activities occur. Transaction gains and losses arising from activities in other than the applicable functional currency are calculated using average exchange rates for the applicable period and reported in net income as a non-operating item in each period. Non-monetary balance sheet items denominated in a currency other than the applicable functional currency are translated using the historical rate. The Company continuously evaluates its foreign currency exposures and may continue to enter into hedges or other risk mitigating arrangements in the future. Aggregate gross foreign currency transaction gain (loss) prior to consideration of the offsetting hedges recorded to income before taxes was $3.1 million, ($3.3) million and ($2.8) million in fiscal years 2014, 2013 and 2012, respectively. | |
Cash Equivalents, Short and Long-Term Marketable Securities. Cash equivalents consist of short-term, highly liquid financial instruments with insignificant interest rate risk that are readily convertible to cash and have maturities of three months or less from the date of purchase. Marketable securities with original maturities greater than three months from purchase date and remaining maturities less than one year are classified as short-term marketable securities. Marketable securities with remaining maturities greater than one year as of the balance sheet date are classified as long-term marketable securities. Short and long-term fixed income investments consist of U.S. Treasury securities, U.S. government-sponsored agency securities, international government securities, corporate notes and bonds, asset-backed securities, mortgage-backed securities and municipal notes and bonds. The fair market value of cash equivalents at December 28, 2014 approximated their carrying value. Cost of securities sold is based on specific identification. | |
In determining if and when a decline in market value below cost of these investments is other-than-temporary, the Company evaluates both quantitative and qualitative information including the market conditions, offering prices, trends of earnings, price multiples and other key measures. For fixed income securities, only the decline attributable to deteriorating credit of an other-than-temporary impairment is taken to the Consolidated Statement of Operations, unless the Company intends, or “more likely than not” will be required, to sell the security. | |
Property and Equipment. Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, ranging from two to twenty-five years, or the remaining lease term, whichever is shorter. | |
Variable Interest Entities. The Company evaluates its equity method investments to determine whether any investee is a variable interest entity (“VIE”). If the Company concludes that an investee is a VIE, the Company evaluates its power to direct the activities of the investee, its obligation to absorb the expected losses of the investee and its right to receive the expected residual returns of the investee to determine whether the Company is the primary beneficiary of the investee. If the Company is the primary beneficiary of a VIE, the Company consolidates such entity and reflects the non-controlling interest of other beneficiaries of that entity. If the Company concludes that an investee is not a VIE, the Company does not consolidate the investee. | |
Equity Investments. The Company accounts for investments in equity securities of other entities, including VIEs that are not consolidated, under the cost method of accounting if investments in voting equity interests of the investee are less than 20%. The equity method of accounting is used if the Company’s investment in voting stock is greater than or equal to 20% but less than a majority. In considering the accounting method for investments less than 20%, the Company also considers other factors such as its ability to exercise significant influence over operating and financial policies of the investee. If certain factors are present, the Company could account for investments for which it has less than a 20% ownership under the equity method of accounting. | |
Investments in public companies with restrictions of less than one year are classified as available-for-sale and are adjusted to their fair market value with unrealized gains and losses recorded as a component of accumulated other comprehensive income (“AOCI”). Investments in public and non-public companies are reviewed on a quarterly basis to determine if their value has been impaired and adjustments are recorded as necessary. Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. Declines in value that are judged to be other-than-temporary are reported in Interest (expense) and other income (expense), net, or Cost of revenue in the accompanying Consolidated Statements of Operations. | |
Inventories and Inventory Valuation. Inventories are stated at the lower of cost (first-in, first-out) or market. Market value is based upon an estimated average selling price reduced by estimated costs of disposal. Should actual market conditions differ from the Company’s estimates, the Company’s future results of operations could be materially affected. Reductions in inventory valuation are included in Cost of revenue in the accompanying Consolidated Statements of Operations. Inventory impairment charges, when taken, permanently establish a new cost basis and are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable. Rather, these amounts are recognized in income only if, as and when the inventory is sold. | |
The Company reduces the carrying value of its inventory to a new basis for estimated obsolescence or unmarketable inventory by an amount equal to the difference between the cost of the inventory and the estimated market value based upon assumptions about future demand and market conditions, including assumptions about changes in average selling prices. If actual market conditions are less favorable than those projected by management, additional reductions in inventory valuation may be required. | |
The Company’s finished goods inventory includes consigned inventory held at customer locations as well as at third‑party fulfillment centers and subcontractors. | |
Other Long-Lived Assets. Intangible assets with finite useful lives and other long-lived assets are tested for impairment if certain impairment indicators are identified. The Company assesses the carrying value of long-lived assets, whenever events or changes in circumstances indicate that the carrying value of these long-lived assets may not be recoverable. Factors the Company considers important which could result in an impairment review include: (1) significant under-performance relative to the historical or projected future operating results; (2) significant changes in the manner of use of assets; (3) significant negative industry or economic trends; and (4) significant changes in the Company’s market capitalization relative to net book value. Any changes in key assumptions used by the Company, including those set forth above, could result in an impairment charge and such a charge could have a material adverse effect on the Company’s consolidated results of operations. | |
Advertising Expenses. Marketing co-op development programs, where the Company receives, or will receive, an identifiable benefit (e.g., goods or services) in exchange for the amount paid to its customer and the Company can reasonably estimate the fair value of the benefit it receives for the customer incentive payment, are classified, when granted, as a marketing expense. Advertising expenses not meeting this criteria are classified as a reduction to revenue when the expense is incurred. Advertising expenses recorded as marketing expense were $27.9 million, $19.6 million and $16.2 million in fiscal years 2014, 2013 and 2012, respectively. | |
Research and Development Expenses. Research and development (“R&D”) expenditures are expensed as incurred. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 28, 2014 | |
Recent Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles | Recent Accounting Pronouncements |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014‑15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. The Company expects to adopt ASU 2014‑15 in fiscal year 2016 and the Company does not expect the adoption of ASU 2014‑15 to have a significant impact on its Consolidated Financial Statements or related disclosures. | |
In May 2014, the FASB issued ASU No. 2014‑09, “Revenue from Contracts with Customers.” Under this guidance, an entity is required to recognize revenue upon transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. As such, an entity will need to use more judgment and make more estimates than under the current guidance. This standard becomes effective and will be adopted in the first quarter of fiscal year 2017 with early adoption not permitted. Under application of the existing guidance, the Company’s sales made to distributors and retailers are generally deferred until the distributors or retailers sell the merchandise to their end customer. Under the new standard, the Company’s sales made to distributors and retailers are expected to be recognized upon transfer of inventory to the distributor or retailer resulting in earlier revenue recognition than per existing guidance with additional use of estimation. In addition, the timing of the Company’s revenue relating to the licensing of IP could materially change. The Company is currently evaluating the appropriate transition method and any further impact of this guidance on its Consolidated Financial Statements and related disclosures. | |
During the third quarter of fiscal year 2014, the Company early adopted the FASB accounting guidance ASU No. 2014‑08, “Presentation of Financial Statements and Property, Plant and Equipment,” which raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the new definition of a discontinued operation. It also allows an entity to present a discontinued operation even when it has continuing cash flows and significant continuing involvement with the disposed component. The Company determined that the adoption of this ASU did not have any impact on the Company’s Consolidated Financial Statements or related disclosures. |
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||||||||||
Investments and Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||
Investments and Fair Value Measurements | Investments and Fair Value Measurements | |||||||||||||||||||||||||||||||
The Company’s total cash, cash equivalents and marketable securities was as follows (in thousands): | ||||||||||||||||||||||||||||||||
December 28, | December 29, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 809,003 | $ | 986,246 | ||||||||||||||||||||||||||||
Short-term marketable securities | 1,455,509 | 1,919,611 | ||||||||||||||||||||||||||||||
Long-term marketable securities | 2,758,475 | 3,179,471 | ||||||||||||||||||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 5,022,987 | $ | 6,085,328 | ||||||||||||||||||||||||||||
Fair Value of Financial Instruments. For certain of the Company’s financial instruments, including cash held in banks, accounts receivable and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below. | ||||||||||||||||||||||||||||||||
The Company categorizes the fair value of its financial assets and liabilities according to the hierarchy established by the FASB, which prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are: | ||||||||||||||||||||||||||||||||
Level 1 | Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to directly access. | |||||||||||||||||||||||||||||||
Level 2 | Valuations based on quoted prices for similar assets or liabilities; valuations for interest-bearing securities based on non-daily quoted prices in active markets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. | |||||||||||||||||||||||||||||||
Level 3 | Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. | ||||||||||||||||||||||||||||||||
In circumstances in which a quoted price in an active market for the identical liability is not available, the Company is required to use the quoted price of the identical liability when traded as an asset, quoted prices for similar liabilities, or quoted prices for similar liabilities when traded as assets. If these quoted prices are not available, the Company is required to use another valuation technique, such as an income approach or a market approach. | ||||||||||||||||||||||||||||||||
The Company’s financial assets are measured at fair value on a recurring basis. Instruments that are classified within Level 1 of the fair value hierarchy generally include money market funds and U.S. Treasury securities. Level 1 securities represent quoted prices in active markets, and therefore do not require significant management judgment. | ||||||||||||||||||||||||||||||||
Instruments that are classified within Level 2 of the fair value hierarchy primarily include U.S. government-sponsored agency securities, international government securities, corporate notes and bonds, asset-backed securities, mortgage-backed securities and municipal notes and bonds. The Company’s Level 2 securities are primarily valued using quoted market prices for similar instruments and non-binding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes and other similar data, which are obtained from independent pricing vendors, quoted market prices or other sources to determine the ultimate fair value of the Company’s assets and liabilities. The inputs and fair value are reviewed for reasonableness and may be further validated by comparison to publicly available information or compared to multiple independent valuation sources. In addition, the Company reviews third‑party valuation models, independently calculates the fair value of selective financial instruments and assesses the controls at its third‑party valuation service providers in determining the overall reasonableness of the fair value of its Level 2 financial instruments. | ||||||||||||||||||||||||||||||||
Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments (in thousands): | ||||||||||||||||||||||||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Money market funds | $ | 533,133 | $ | — | $ | — | $ | 533,133 | $ | 760,363 | $ | — | $ | — | $ | 760,363 | ||||||||||||||||
Fixed income securities | 25,162 | 4,213,599 | — | 4,238,761 | 160,194 | 4,985,059 | — | 5,145,253 | ||||||||||||||||||||||||
Derivative assets | — | 4,800 | — | 4,800 | — | 777 | — | 777 | ||||||||||||||||||||||||
Total financial assets | $ | 558,295 | $ | 4,218,399 | $ | — | $ | 4,776,694 | $ | 920,557 | $ | 4,985,836 | $ | — | $ | 5,906,393 | ||||||||||||||||
Derivative liabilities | $ | — | $ | 8,224 | $ | — | $ | 8,224 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
Total financial liabilities | $ | — | $ | 8,224 | $ | — | $ | 8,224 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented on the Company’s Consolidated Balance Sheets as follows (in thousands): | ||||||||||||||||||||||||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Cash equivalents(1) | $ | 533,133 | $ | 24,777 | $ | — | $ | 557,910 | $ | 773,435 | $ | 33,099 | $ | — | $ | 806,534 | ||||||||||||||||
Short-term marketable securities | 3,327 | 1,452,182 | — | 1,455,509 | 15,090 | 1,904,521 | — | 1,919,611 | ||||||||||||||||||||||||
Long-term marketable securities | 21,835 | 2,736,640 | — | 2,758,475 | 132,032 | 3,047,439 | — | 3,179,471 | ||||||||||||||||||||||||
Other current assets | — | 4,800 | — | 4,800 | — | 777 | — | 777 | ||||||||||||||||||||||||
Total financial assets | $ | 558,295 | $ | 4,218,399 | $ | — | $ | 4,776,694 | $ | 920,557 | $ | 4,985,836 | $ | — | $ | 5,906,393 | ||||||||||||||||
Other current accrued liabilities | $ | — | $ | 8,224 | $ | — | $ | 8,224 | $ | — | $ | 45,741 | $ | — | $ | 45,741 | ||||||||||||||||
Non-current liabilities | — | — | — | — | — | 118 | — | 118 | ||||||||||||||||||||||||
Total financial liabilities | $ | — | $ | 8,224 | $ | — | $ | 8,224 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
(1) | Cash equivalents exclude cash holdings of $251.1 million and $179.7 million included in Cash and cash equivalents on the Company’s Consolidated Balance Sheets as of December 28, 2014 and December 29, 2013, respectively. | |||||||||||||||||||||||||||||||
During the fiscal year ended December 28, 2014, the Company had no transfers of financial assets or liabilities between Level 1 and Level 2. As of December 28, 2014 and December 29, 2013, the Company had no financial assets or liabilities categorized as Level 3 and had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted. | ||||||||||||||||||||||||||||||||
Available-for-Sale Investments. Available-for-sale investments were as follows (in thousands): | ||||||||||||||||||||||||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 25,194 | $ | — | $ | (32 | ) | $ | 25,162 | $ | 160,598 | $ | 21 | $ | (424 | ) | $ | 160,195 | ||||||||||||||
U.S. government-sponsored agency securities | 7,511 | — | (18 | ) | 7,493 | 8,112 | 10 | (1 | ) | 8,121 | ||||||||||||||||||||||
International government securities | 82,033 | — | (314 | ) | 81,719 | 38,492 | 1 | (224 | ) | 38,269 | ||||||||||||||||||||||
Corporate notes and bonds | 774,869 | 325 | (2,052 | ) | 773,142 | 864,331 | 1,504 | (1,565 | ) | 864,270 | ||||||||||||||||||||||
Asset-backed securities | 171,221 | 42 | (353 | ) | 170,910 | 226,620 | 114 | (170 | ) | 226,564 | ||||||||||||||||||||||
Mortgage-backed securities | 48,378 | 6 | (173 | ) | 48,211 | 86,542 | 18 | (554 | ) | 86,006 | ||||||||||||||||||||||
Municipal notes and bonds | 3,124,189 | 9,733 | (1,798 | ) | 3,132,124 | 3,744,138 | 18,931 | (1,241 | ) | 3,761,828 | ||||||||||||||||||||||
Total available-for-sale investments | $ | 4,233,395 | $ | 10,106 | $ | (4,740 | ) | $ | 4,238,761 | $ | 5,128,833 | $ | 20,599 | $ | (4,179 | ) | $ | 5,145,253 | ||||||||||||||
The fair value and gross unrealized losses on the available-for-sale securities that have been in a continuous unrealized loss position, aggregated by type of investment instrument, and the length of time that individual securities have been in a continuous unrealized loss position as of December 28, 2014, are summarized in the following table (in thousands). Available-for-sale securities that were in an unrealized gain position have been excluded from the table. | ||||||||||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | |||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 25,162 | $ | (32 | ) | $ | — | $ | — | |||||||||||||||||||||||
U.S. government-sponsored agency securities | 7,394 | (18 | ) | — | — | |||||||||||||||||||||||||||
International government securities | 81,719 | (314 | ) | — | — | |||||||||||||||||||||||||||
Corporate notes and bonds | 586,903 | (2,046 | ) | 2,494 | (6 | ) | ||||||||||||||||||||||||||
Asset-backed securities | 137,007 | (353 | ) | — | — | |||||||||||||||||||||||||||
Mortgage-backed securities | 31,954 | (132 | ) | 9,518 | (41 | ) | ||||||||||||||||||||||||||
Municipal notes and bonds | 709,505 | (1,796 | ) | 4,453 | (2 | ) | ||||||||||||||||||||||||||
Total | $ | 1,579,644 | $ | (4,691 | ) | $ | 16,465 | $ | (49 | ) | ||||||||||||||||||||||
The gross unrealized loss related to these securities was due primarily to changes in interest rates. The gross unrealized loss on all available-for-sale fixed income securities at December 28, 2014 was considered temporary in nature. Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the Company’s intent and ability to hold an investment for a period of time sufficient to allow for any anticipated recovery in market value. For debt security investments, the Company considered additional factors including the Company’s intent to sell the investments or whether it is “more likely than not” the Company will be required to sell the investments before the recovery of its amortized cost. | ||||||||||||||||||||||||||||||||
The following table shows the realized gains and (losses) on sales of available-for-sale securities (in thousands): | ||||||||||||||||||||||||||||||||
Fiscal years ended | ||||||||||||||||||||||||||||||||
December 28, | December 29, | December 30, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Realized gains | $ | 8,918 | $ | 4,724 | $ | 3,867 | ||||||||||||||||||||||||||
Realized losses | (1,375 | ) | (2,349 | ) | (898 | ) | ||||||||||||||||||||||||||
Net realized gains | $ | 7,543 | $ | 2,375 | $ | 2,969 | ||||||||||||||||||||||||||
Fixed income securities by contractual maturity as of December 28, 2014 are shown below (in thousands). Actual maturities may differ from contractual maturities because issuers of the securities may have the right to prepay obligations or the Company has the option to demand payment. | ||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||
Due in one year or less | $ | 860,203 | $ | 861,915 | ||||||||||||||||||||||||||||
After one year through five years | 2,603,444 | 2,606,289 | ||||||||||||||||||||||||||||||
After five years through ten years | 122,637 | 122,643 | ||||||||||||||||||||||||||||||
After ten years | 647,111 | 647,914 | ||||||||||||||||||||||||||||||
Total | $ | 4,233,395 | $ | 4,238,761 | ||||||||||||||||||||||||||||
For those financial instruments where the carrying amounts differ from fair value, the following table (in thousands) represents the related carrying values and fair values, which are based on quoted market prices. The 1.5% Convertible Senior Notes due 2017 were categorized as Level 1 and the 0.5% Convertible Senior Notes due 2020 were categorized as Level 2, based on the frequency of trading as of December 28, 2014 and December 29, 2013. See Note 7, “Financing Arrangements,” regarding details of each convertible note presented. | ||||||||||||||||||||||||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
1.5% Convertible Senior Notes due 2017 | $ | 869,645 | $ | 1,948,721 | $ | 829,792 | $ | 1,467,160 | ||||||||||||||||||||||||
0.5% Convertible Senior Notes due 2020 | 1,199,696 | 1,789,500 | 1,155,571 | 1,480,290 | ||||||||||||||||||||||||||||
Total | $ | 2,069,341 | $ | 3,738,221 | $ | 1,985,363 | $ | 2,947,450 | ||||||||||||||||||||||||
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | Derivatives and Hedging Activities | |||||||||||||||||||||||
The Company uses derivative instruments primarily to manage exposures to foreign currency. The Company’s primary objective in holding derivative instruments is to reduce the volatility of earnings and cash flows associated with changes in foreign currency. The program is not designated for trading or speculative purposes. The Company’s derivative instruments expose the Company to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across several major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored by the Company on an ongoing basis. | ||||||||||||||||||||||||
The Company recognizes derivative instruments as either assets or liabilities on the balance sheet at fair value and provides qualitative disclosures about objectives and strategies for using derivative instruments, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. Changes in fair value (i.e., gains or losses) of the derivatives are recorded as cost of revenue, operating expense, other income (expense), or as other comprehensive income (“OCI”). Under certain provisions and conditions within agreements with counterparties to the Company’s foreign exchange forward contracts, subject to applicable requirements, the Company has the right of set-off associated with the Company’s foreign exchange forward contracts and is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. The Company does not offset or net the fair value amounts of derivative instruments in its Consolidated Balance Sheets and separately discloses the gross fair value amounts of the derivative instruments as either assets or liabilities. | ||||||||||||||||||||||||
Cash Flow Hedges. The Company uses foreign exchange forward contracts designated as cash flow hedges to hedge a portion of future forecasted wafer purchases and R&D expenses in Japanese yen. The gain or loss on the effective portion of a cash flow hedge is initially reported as a component of AOCI and subsequently reclassified into cost of revenue or R&D expense in the same period or periods in which the cost of revenue or R&D expense are recognized, or reclassified into other income (expense) if the hedged transaction becomes probable of not occurring. Any gain or loss after a hedge is no longer designated, because it is no longer probable of occurring or related to an ineffective portion of a cash flow hedge, as well as any amount excluded from the Company’s hedge effectiveness, is recognized immediately as other income (expense). As of December 28, 2014, the notional amount and unrealized loss on the effective portion of the Company’s outstanding foreign exchange forward contracts to purchase Japanese yen that are designated as cash flow hedges are shown in both Japanese yen (in billions) and U.S. dollar (in thousands), based upon the exchange rate at December 28, 2014, as follows: | ||||||||||||||||||||||||
Notional Amount | Unrealized Loss | |||||||||||||||||||||||
(Japanese yen) | (U.S. dollar) | (U.S. dollar) | ||||||||||||||||||||||
Foreign exchange forward contracts | ¥ | 12.5 | $ | 103,826 | $ | (1,472 | ) | |||||||||||||||||
As of December 28, 2014, the maturities of these contracts were two months or less. | ||||||||||||||||||||||||
Other Derivatives. Other derivatives that are non-designated consist primarily of foreign exchange forward contracts to minimize the risk associated with the foreign exchange effects of revaluing monetary assets and liabilities. Monetary assets and liabilities denominated in foreign currencies and the associated outstanding foreign exchange forward contracts were marked-to-market at December 28, 2014 with realized and unrealized gains and losses included in other income (expense). As of December 28, 2014, the Company had foreign exchange forward contracts hedging exposures in European euros, British pounds and Japanese yen. Foreign exchange forward contracts were outstanding to buy and sell U.S. dollar-equivalents of approximately $182.4 million and $135.2 million in foreign currencies, respectively, based upon the exchange rates at December 28, 2014. | ||||||||||||||||||||||||
The amounts in the tables below include fair value adjustments related to the Company’s own credit risk and counterparty credit risk. | ||||||||||||||||||||||||
Fair Value of Derivative Contracts. Gross fair value of derivative contracts was as follows (in thousands): | ||||||||||||||||||||||||
Derivative assets reported in | ||||||||||||||||||||||||
Other Current Assets | Other Non-current Assets | |||||||||||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Foreign exchange forward contracts not designated | $ | 4,800 | $ | 777 | $ | — | $ | — | ||||||||||||||||
Derivative liabilities reported in | ||||||||||||||||||||||||
Other Current Accrued Liabilities | Non-current Liabilities | |||||||||||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Foreign exchange forward contracts designated | $ | 1,472 | $ | 38,375 | $ | — | $ | 118 | ||||||||||||||||
Foreign exchange forward contracts not designated | 6,752 | 7,366 | — | — | ||||||||||||||||||||
Total derivatives | $ | 8,224 | $ | 45,741 | $ | — | $ | 118 | ||||||||||||||||
As of December 28, 2014, the potential effect of rights of set-off associated with the above foreign exchange forward contracts would result in a $2.8 million net derivative asset balance and a net derivative liability balance of $6.3 million. As of December 29, 2013, the potential effect of rights of set-off would result in a net derivative liability balance of $45.2 million and an immaterial net derivative asset balance. | ||||||||||||||||||||||||
Effect of Foreign Exchange Forward Contracts Designated as Cash Flow Hedges on the Consolidated Statements of Operations. All designated cash flow derivative contracts were considered effective for the fiscal years ended December 28, 2014 and December 29, 2013. The impact of the effective portion of designated cash flow derivative contracts on the Company’s results of operations was as follows (in thousands): | ||||||||||||||||||||||||
Fiscal years ended | ||||||||||||||||||||||||
Amount of loss | Amount of loss reclassified | |||||||||||||||||||||||
recognized in OCI | from AOCI to earnings | |||||||||||||||||||||||
December 28, | December 29, | December 30, | December 28, | December 29, | December 30, | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Foreign exchange forward contracts | $ | (99 | ) | $ | (74,834 | ) | $ | (38,197 | ) | $ | (25,418 | ) | $ | (41,523 | ) | $ | (10,946 | ) | ||||||
Foreign exchange forward contracts designated as cash flow hedges relate to forecasted wafer purchases and R&D expenses in Japanese yen. Gains and losses associated with foreign exchange forward contracts designated as cash flow hedges are expected to be recorded in cost of revenue for wafer purchases or R&D expense when reclassified out of AOCI. The Company expects to realize the majority of the AOCI balance related to foreign exchange contracts within the next 12 months. | ||||||||||||||||||||||||
The following table presents the forward points on foreign exchange contracts excluded for the purposes of cash flow hedging designation recognized in other income (expense) (in thousands): | ||||||||||||||||||||||||
Fiscal years ended | ||||||||||||||||||||||||
December 28, | December 29, | December 30, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Foreign exchange forward contracts | $ | (1,134 | ) | $ | (1,201 | ) | $ | (6,630 | ) | |||||||||||||||
Effect of Non-Designated Derivative Contracts on the Consolidated Statements of Operations. The effect of non-designated derivative contracts on the Company’s results of operations recognized in other income (expense) was as follows (in thousands): | ||||||||||||||||||||||||
Fiscal years ended | ||||||||||||||||||||||||
December 28, | December 29, | December 30, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Gain (loss) on foreign exchange forward contracts including forward point income | $ | (5,627 | ) | $ | 1,427 | $ | 9,025 | |||||||||||||||||
Gain (loss) from revaluation of foreign currency exposures hedged by foreign exchange forward contracts | 7,998 | (4,460 | ) | (3,511 | ) | |||||||||||||||||||
Balance_Sheet_Information
Balance Sheet Information | 12 Months Ended | ||||||||||||||
Dec. 28, 2014 | |||||||||||||||
Balance Sheet Information [Abstract] | |||||||||||||||
Balance Sheet Information | Balance Sheet Information | ||||||||||||||
Accounts Receivable, net. Accounts receivable, net was as follows (in thousands): | |||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Accounts receivable | $ | 1,134,254 | $ | 904,551 | |||||||||||
Allowance for doubtful accounts | (9,622 | ) | (8,274 | ) | |||||||||||
Promotions, price protection and other activities | (282,156 | ) | (213,468 | ) | |||||||||||
Total accounts receivable, net | $ | 842,476 | $ | 682,809 | |||||||||||
Allowance for Doubtful Accounts. The activity in the allowance for doubtful accounts was as follows (in thousands): | |||||||||||||||
Fiscal years ended | |||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Balance, beginning of year | $ | 8,274 | $ | 6,627 | $ | 5,717 | |||||||||
Additions charged to costs and expenses | 857 | 2,167 | 1,452 | ||||||||||||
Allowance adjustment | 1,272 | — | — | ||||||||||||
Deductions/write-offs | (781 | ) | (520 | ) | (542 | ) | |||||||||
Balance, end of year | $ | 9,622 | $ | 8,274 | $ | 6,627 | |||||||||
Inventory. Inventory was as follows (in thousands): | |||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Raw material | $ | 369,860 | $ | 440,570 | |||||||||||
Work-in-process | 138,594 | 102,543 | |||||||||||||
Finished goods | 189,557 | 213,862 | |||||||||||||
Total inventory | $ | 698,011 | $ | 756,975 | |||||||||||
Other Current Assets. Other current assets were as follows (in thousands): | |||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Income tax receivables | $ | 18,579 | $ | 7,976 | |||||||||||
Other tax-related receivables | 84,432 | 62,784 | |||||||||||||
Other non-trade receivables | 69,033 | 37,368 | |||||||||||||
Prepaid expenses | 18,579 | 12,630 | |||||||||||||
Other current assets | 24,369 | 46,127 | |||||||||||||
Total other current assets | $ | 214,992 | $ | 166,885 | |||||||||||
Property and Equipment. Property and equipment were as follows (in thousands): | |||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Machinery and equipment | $ | 1,318,454 | $ | 1,148,150 | |||||||||||
Furniture and fixtures | 24,090 | 20,481 | |||||||||||||
Software | 191,900 | 171,733 | |||||||||||||
Buildings and building improvements | 338,412 | 261,471 | |||||||||||||
Leasehold improvements | 26,525 | 6,559 | |||||||||||||
Land | 24,427 | 24,427 | |||||||||||||
Capital land lease | 12,827 | 6,644 | |||||||||||||
Property and equipment, at cost | 1,936,635 | 1,639,465 | |||||||||||||
Accumulated depreciation and amortization | (1,212,278 | ) | (983,671 | ) | |||||||||||
Property and equipment, net | $ | 724,357 | $ | 655,794 | |||||||||||
Depreciation expense of property and equipment totaled $254.3 million, $226.3 million and $161.9 million in fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||||
Notes Receivable and Investments in Flash Ventures. Notes receivable and investments in Flash Partners Ltd., Flash Alliance Ltd. and Flash Forward Ltd. (collectively referred to as “Flash Ventures”) were as follows (in thousands): | |||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Notes receivable, Flash Partners Ltd. | $ | 12,454 | $ | 100,057 | |||||||||||
Notes receivable, Flash Alliance Ltd. | 292,677 | 323,995 | |||||||||||||
Notes receivable, Flash Forward Ltd. | 161,906 | 169,144 | |||||||||||||
Investment in Flash Partners Ltd. | 167,102 | 190,694 | |||||||||||||
Investment in Flash Alliance Ltd. | 249,459 | 283,999 | |||||||||||||
Investment in Flash Forward Ltd. | 79,219 | 66,731 | |||||||||||||
Total notes receivable and investments in Flash Ventures | $ | 962,817 | $ | 1,134,620 | |||||||||||
Equity-method investments and the Company’s maximum loss exposure related to Flash Ventures are discussed further in Note 14, “Commitments, Contingencies and Guarantees – Flash Ventures” and Note 15, “Related Parties and Strategic Investments.” | |||||||||||||||
The Company assesses financing receivable credit quality through financial and operational reviews of the borrower and creditworthiness, including credit rating agency ratings, of significant investors of the borrower, where material or known. Impairments, when required for credit worthiness, are recorded in other income (expense). The Company makes or will make long-term loans to Flash Ventures to fund new process technologies and additional wafer capacity. The Company aggregates its Flash Ventures’ notes receivable into one class of financing receivables due to the similar ownership interest and common structure in each Flash Venture entity. For all reporting periods presented, no loans were past due and no loan impairments were recorded. | |||||||||||||||
Other Non-current Assets. Other non-current assets were as follows (in thousands): | |||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Prepaid tax on intercompany transactions | $ | 33,375 | $ | 37,747 | |||||||||||
Long-term prepaid income tax | — | 66,176 | |||||||||||||
Other non-current assets | 75,302 | 63,507 | |||||||||||||
Total other non-current assets | $ | 108,677 | $ | 167,430 | |||||||||||
Other Current Accrued Liabilities. Other current accrued liabilities were as follows (in thousands): | |||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Accrued payroll and related expenses | $ | 233,702 | $ | 227,779 | |||||||||||
Taxes payable | 74,079 | 59,618 | |||||||||||||
Derivative contract payables | 8,224 | 45,741 | |||||||||||||
Other current accrued liabilities | 190,288 | 176,594 | |||||||||||||
Total other current accrued liabilities | $ | 506,293 | $ | 509,732 | |||||||||||
Non-current Liabilities. Non-current liabilities were as follows (in thousands): | |||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Income tax liabilities | $ | 132,320 | $ | 205,266 | |||||||||||
Deferred revenue | 31,066 | 35,346 | |||||||||||||
Deferred tax liabilities | 22,360 | 3,482 | |||||||||||||
Other non-current liabilities | 59,808 | 62,989 | |||||||||||||
Total non-current liabilities | $ | 245,554 | $ | 307,083 | |||||||||||
Warranties. The liability for warranty expense is included in Other current accrued liabilities and Non-current liabilities in the Consolidated Balance Sheets, and the activity was as follows (in thousands): | |||||||||||||||
Fiscal years ended | |||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Balance, beginning of year | $ | 43,624 | $ | 38,787 | $ | 26,957 | |||||||||
Additions and adjustments to cost of revenue | 21,315 | 33,400 | 33,247 | ||||||||||||
Warranty liability assumed from acquisition | 3,794 | 2,363 | — | ||||||||||||
Usage | (20,178 | ) | (30,926 | ) | (21,417 | ) | |||||||||
Balance, end of year | $ | 48,555 | $ | 43,624 | $ | 38,787 | |||||||||
The majority of the Company’s products have a warranty of five years or less, with a small number of products having a warranty ranging up to ten years or more. For warranties ten years or greater, including lifetime warranties, the Company uses the estimated useful life of the product to calculate the warranty exposure. A provision for the estimated future cost related to warranty expense is recorded at the time of customer invoice. The Company’s warranty liability is affected by customer and consumer returns, product failures, number of units sold and repair or replacement costs incurred. Should actual product failure rates, or repair or replacement costs, differ from the Company’s estimates, increases or decreases to its warranty liability would be required. Additions and adjustments to cost of revenue in the fiscal year ended December 28, 2014 included adjustments to certain warranty assumptions, related to future potential claims, resulting in a $5.7 million reduction to the overall future warranty exposure. | |||||||||||||||
Comprehensive Income (Loss) Note | Accumulated Other Comprehensive Income (Loss). AOCI presented in the Consolidated Balance Sheets consists of unrealized gains and losses on available-for-sale investments, foreign currency translation and hedging activities, net of tax, for all periods presented (in thousands): | ||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Accumulated net unrealized gain (loss) on: | |||||||||||||||
Available-for-sale investments | $ | 3,359 | $ | 10,479 | |||||||||||
Foreign currency translation | (197,252 | ) | (47,440 | ) | |||||||||||
Hedging activities | (14,179 | ) | (39,498 | ) | |||||||||||
Total accumulated other comprehensive loss | $ | (208,072 | ) | $ | (76,459 | ) | |||||||||
The amount of income tax benefit allocated to the unrealized gain (loss) on available-for-sale investments and foreign currency translation activities was as follows (in thousands): | |||||||||||||||
Fiscal years ended | |||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Available-for-sale investments | $ | (3,934 | ) | $ | (3,383 | ) | $ | 3,121 | |||||||
Foreign currency translation | (4,163 | ) | (38,006 | ) | (23,791 | ) | |||||||||
Total income tax benefit allocated | $ | (8,097 | ) | $ | (41,389 | ) | $ | (20,670 | ) | ||||||
The significant amounts reclassified out of each component of AOCI were as follows (in thousands): | |||||||||||||||
Fiscal years ended | |||||||||||||||
AOCI Component | December 28, | December 29, | December 30, | Statement of Operations | |||||||||||
2014 | 2013 | 2012 | Line Item | ||||||||||||
Unrealized gain on available-for-sale investments | $ | 7,543 | $ | 2,375 | $ | 2,969 | Interest (expense) and other income (expense), net | ||||||||
Tax impact | (2,677 | ) | (1,122 | ) | (1,051 | ) | Provision for income taxes | ||||||||
Unrealized gain on available-for-sale investments, net of tax | 4,866 | 1,253 | 1,918 | ||||||||||||
Unrealized holding loss on derivatives: | |||||||||||||||
Foreign exchange contracts | (24,142 | ) | (41,523 | ) | (10,946 | ) | Cost of revenue | ||||||||
Foreign exchange contracts | (1,276 | ) | — | — | Research and development | ||||||||||
Loss on cash flow hedging activities | (25,418 | ) | (41,523 | ) | (10,946 | ) | |||||||||
Total reclassifications for the period, net of tax | $ | (20,552 | ) | $ | (40,270 | ) | $ | (9,028 | ) |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||
Goodwill. Goodwill balances and activity were as follows (in thousands): | ||||||||||||||||
Fiscal years ended | ||||||||||||||||
December 28, | December 29, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Balance, beginning of year | $ | 318,111 | $ | 201,735 | ||||||||||||
Acquisition | 513,398 | 115,775 | ||||||||||||||
Adjustment | (181 | ) | 601 | |||||||||||||
Balance, end of year | $ | 831,328 | $ | 318,111 | ||||||||||||
During the fiscal year ended December 28, 2014, goodwill increased by $513.2 million, due primarily to the Company’s acquisition of Fusion‑io, Inc. (“Fusion‑io”) during the third quarter of fiscal year 2014. For additional information regarding the Fusion-io acquisition, see Note 17, “Business Acquisitions.” | ||||||||||||||||
Goodwill is not amortized, but is reviewed and tested for impairment at least annually, on the first day of the Company’s fourth quarter and whenever events or circumstances occur that indicate that goodwill might be impaired. Impairment of goodwill is tested at the Company’s reporting unit level. The Company has the option to first assess qualitative factors to determine whether events and circumstances indicate that it is more likely than not that the goodwill is impaired and determine whether further action is needed (“Step 0”). For the year ended December 28, 2014, the Company performed a Step 1 quantitative assessment of its goodwill and did not identify an impairment of goodwill. As such, the Company did not perform any further goodwill impairment testing. | ||||||||||||||||
Intangible Assets. Intangible asset balances were as follows (in thousands): | ||||||||||||||||
December 28, 2014 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||
Developed product technology | $ | 568,744 | $ | (209,478 | ) | $ | 359,266 | |||||||||
Customer relationships | 64,600 | (21,009 | ) | 43,591 | ||||||||||||
Trademarks and trade names | 62,500 | (7,395 | ) | 55,105 | ||||||||||||
Acquisition-related intangible assets | 695,844 | (237,882 | ) | 457,962 | ||||||||||||
Technology licenses and patents | 102,000 | (78,611 | ) | 23,389 | ||||||||||||
Total intangible assets subject to amortization | 797,844 | (316,493 | ) | 481,351 | ||||||||||||
Acquired in-process research and development | 61,000 | — | 61,000 | |||||||||||||
Total intangible assets | $ | 858,844 | $ | (316,493 | ) | $ | 542,351 | |||||||||
December 29, 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | |||||||||||||
Developed product technology | $ | 348,385 | $ | (121,304 | ) | $ | (44,216 | ) | $ | 182,865 | ||||||
Customer relationships | 20,650 | (14,426 | ) | — | 6,224 | |||||||||||
Trademarks | 14,200 | (3,634 | ) | (2,812 | ) | 7,754 | ||||||||||
Covenants not to compete | 3,100 | (2,959 | ) | — | 141 | |||||||||||
Acquisition-related intangible assets | 386,335 | (142,323 | ) | (47,028 | ) | 196,984 | ||||||||||
Technology licenses and patents | 133,909 | (89,289 | ) | — | 44,620 | |||||||||||
Total intangible assets subject to amortization | 520,244 | (231,612 | ) | (47,028 | ) | 241,604 | ||||||||||
Acquired in-process research and development | 42,500 | — | (36,200 | ) | 6,300 | |||||||||||
Total intangible assets | $ | 562,744 | $ | (231,612 | ) | $ | (83,228 | ) | $ | 247,904 | ||||||
During the fiscal year ended December 28, 2014, total intangible assets increased due primarily to the acquisition of Fusion-io. Additionally, the Company reclassified $6.3 million of in-process research and development (“IPR&D”) to developed product technology and commenced amortization during the second quarter of fiscal year 2014. | ||||||||||||||||
In fiscal year 2013, the Company performed impairment tests on the amortizable intangible and IPR&D assets from the Pliant Technology, Inc. (“Pliant”) acquisition due to the SMART Storage Systems (“SMART Storage”) acquisition. Based upon its impairment analysis, the Company recorded an impairment of certain amortizable intangible assets and IPR&D assets totaling $83.2 million in fiscal year 2013, which was included in Impairment of acquisition-related intangible assets in the Consolidated Statements of Operations. | ||||||||||||||||
Acquired IPR&D is accounted for as an indefinite-lived intangible asset. Indefinite-lived intangible assets are reviewed for impairment at least annually until technological feasibility is achieved or development is complete. Upon completion of development, the acquired IPR&D is considered an amortizable finite-lived intangible asset. Amortization expense of technology licenses and patents is recorded to cost of revenue or R&D based upon the use of the technology. | ||||||||||||||||
Amortization expense of intangible assets totaled $148.6 million, $84.3 million and $76.5 million in fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||||||
The annual expected amortization expense of intangible assets subject to amortization as of December 28, 2014 was as follows (in thousands): | ||||||||||||||||
Acquisition-related Intangible Assets | Technology Licenses and Patents | |||||||||||||||
Fiscal year: | ||||||||||||||||
2015 | $ | 152,375 | $ | 20,056 | ||||||||||||
2016 | 109,971 | 3,333 | ||||||||||||||
2017 | 90,916 | — | ||||||||||||||
2018 | 66,260 | — | ||||||||||||||
2019 | 38,440 | — | ||||||||||||||
Total intangible assets subject to amortization | $ | 457,962 | $ | 23,389 | ||||||||||||
Financing_Arrangements
Financing Arrangements | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Financing Arrangements | Financing Arrangements | |||||||||||
The following table reflects the carrying values of the Company’s convertible debt (in thousands): | ||||||||||||
December 28, | December 29, | |||||||||||
2014 | 2013 | |||||||||||
1.5% Notes due 2017 | $ | 996,788 | $ | 1,000,000 | ||||||||
Less: Unamortized bond discount | (127,143 | ) | (170,208 | ) | ||||||||
Net carrying amount of 1.5% Notes due 2017 | 869,645 | 829,792 | ||||||||||
0.5% Notes due 2020 | 1,500,000 | 1,500,000 | ||||||||||
Less: Unamortized bond discount | (300,304 | ) | (344,429 | ) | ||||||||
Net carrying amount of 0.5% Notes due 2020 | 1,199,696 | 1,155,571 | ||||||||||
Total convertible debt | 2,069,341 | 1,985,363 | ||||||||||
Less: Convertible short-term debt | (869,645 | ) | — | |||||||||
Convertible long-term debt | $ | 1,199,696 | $ | 1,985,363 | ||||||||
1% Convertible Senior Notes Due 2013. On May 15, 2013, the maturity date for the 1% Convertible Senior Notes due May 15, 2013 (“1% Notes due 2013”), the Company settled the 1% Notes due 2013 through an all-cash transaction for principal and accrued interest of $928.1 million and $4.6 million, respectively. As of the date of the redemption, the Company had no further obligations related to the 1% Notes due 2013. In connection with the maturity of the 1% Notes due 2013, the associated convertible bond hedge and warrant transactions also terminated, with no shares purchased under the convertible bond hedge agreement and no exercises of the warrants. | ||||||||||||
The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 1% Notes due 2013 that was settled upon maturity in the second quarter of fiscal year 2013 (in thousands): | ||||||||||||
Fiscal years ended | ||||||||||||
December 29, | December 30, | |||||||||||
2013 | 2012 | |||||||||||
Contractual interest coupon | $ | 3,481 | $ | 9,280 | ||||||||
Amortization of bond issuance costs | 1,013 | 2,783 | ||||||||||
Amortization of bond discount | 21,022 | 53,599 | ||||||||||
Total interest cost recognized | $ | 25,516 | $ | 65,662 | ||||||||
The effective interest rate on the liability component of the 1% Notes due 2013 was 7.4% for the fiscal years ended December 29, 2013 and December 30, 2012. | ||||||||||||
1.5% Convertible Senior Notes Due 2017. In August 2010, the Company issued and sold $1.0 billion in aggregate principal amount of 1.5% Convertible Senior Notes due August 15, 2017 (“1.5% Notes due 2017”) at par. The 1.5% Notes due 2017 may be converted, under certain circumstances described below, based on an initial conversion rate of 19.0931 shares of common stock per $1,000 principal amount of notes (which represents 19.1 million shares at an initial conversion price of approximately $52.37 per share). The 1.5% Notes due 2017 contain provisions where the conversion rate and conversion price are adjusted if the Company pays a cash dividend or makes a distribution to all or substantially all holders of its common stock. Accordingly, as of December 28, 2014, the conversion rate was adjusted for dividends paid to date to 19.4714 shares of common stock per $1,000 principal amount of notes (which represents 19.4 million shares at a conversion price of approximately $51.36 per share). The net proceeds to the Company from the sale of the 1.5% Notes due 2017 were $981.0 million. | ||||||||||||
The Company separately accounts for the liability and equity components of the 1.5% Notes due 2017. The principal amount of the liability component of $706.0 million as of the date of issuance was recognized at the present value of its cash flows using a discount rate of 6.85%, the Company’s borrowing rate at the date of the issuance for a similar debt instrument without the conversion feature. As of the date of issuance, the carrying value of the equity component was $294.0 million. | ||||||||||||
The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 1.5% Notes due 2017 (in thousands): | ||||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Contractual interest coupon | $ | 14,984 | $ | 15,000 | $ | 15,000 | ||||||
Amortization of bond issuance costs | 2,666 | 2,667 | 2,666 | |||||||||
Amortization of bond discount | 41,848 | 39,095 | 36,364 | |||||||||
Total interest cost recognized | $ | 59,498 | $ | 56,762 | $ | 54,030 | ||||||
The effective interest rate on the liability component of the 1.5% Notes due 2017 was 6.85% for each of the three fiscal years ended December 28, 2014. The remaining unamortized bond discount of $127.1 million as of December 28, 2014 will be amortized over the remaining life of the 1.5% Notes due 2017, which is approximately 2.6 years. | ||||||||||||
The 1.5% Notes due 2017 may be converted on any day prior to the close of business on the scheduled trading day immediately preceding May 15, 2017, in multiples of $1,000 principal amount at the option of the holder under any of the following circumstances: 1) during the five business-day period after any five consecutive trading-day period (the “measurement period”) in which the trading price per note for each day of such measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such day; 2) during any calendar quarter after the calendar quarter ending September 30, 2010, if the last reported sale price of the Company’s common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; or 3) upon the occurrence of specified corporate transactions. On and after May 15, 2017 until the close of business on the second scheduled trading day immediately preceding the maturity date of August 15, 2017, holders may convert their notes at any time, regardless of the foregoing circumstances. | ||||||||||||
Upon conversion, a holder will receive the conversion value of the 1.5% Notes due 2017 to be converted equal to the conversion rate multiplied by the volume-weighted-average price of the Company’s common stock during a specified period following the conversion date. The conversion value of each 1.5% Note due 2017 will be paid in: 1) cash equal to the lesser of the principal amount of the note or the conversion value, as defined, and 2) to the extent the conversion value exceeds the principal amount of the note, common stock (plus cash in lieu of any fractional shares of common stock). The conversion price will be subject to adjustment in some events but will not be adjusted for accrued interest. Upon a “fundamental change” at any time, as defined, the Company will in some cases increase the conversion rate for a holder who elects to convert its 1.5% Notes due 2017 in connection with such fundamental change. In addition, the holders may require the Company to repurchase for cash all or a portion of their notes upon a “designated event” at a price equal to 100% of the principal amount of the notes being repurchased plus accrued and unpaid interest, if any. | ||||||||||||
As of the calendar quarter ended December 31, 2014, the 1.5% Notes due 2017 were convertible at the holders’ option beginning on January 1, 2015 and ending March 31, 2015 as the last reported sales price of the Company’s stock exceeded 130% of the conversion price for more than 20 days in a period of 30 consecutive trading days prior to December 31, 2014. Accordingly, the carrying value of the 1.5% Notes due 2017 was classified as a current liability and the difference between the principal amount payable in cash upon conversion and the carrying value of the equity component of $127.1 million of the 1.5% Notes due 2017 was reclassified from Stockholders’ equity to Convertible short-term debt conversion obligation on the Company’s Consolidated Balance Sheet as of December 28, 2014, and will remain so while the notes are convertible. The determination of whether or not the 1.5% Notes due 2017 are convertible must continue to be performed on a calendar-quarter basis. Consequently, the 1.5% Notes due 2017 may be reclassified as long-term debt if the conversion threshold is not met in future quarters. Based on the last closing price of the quarter ended December 28, 2014 of $101.31 for the Company’s common stock, if all of the 1.5% Notes due 2017 then outstanding were converted, 9.6 million shares would be distributed to the holders. | ||||||||||||
During the fiscal year ended December 28, 2014, $3.2 million aggregate principal amount of the 1.5% Notes due 2017 (“Converted Notes”) was converted at the holders’ option, and the Company delivered cash of $3.2 million and 26,626 shares of the Company’s common stock with respect to any conversion value greater than the principal amount of the Converted Notes. The Company recorded a loss of $0.4 million during the quarter ended December 28, 2014 related to the extinguishment of the Converted Notes, which represents the difference between the fair market value allocated to the liability component and the net carrying amount of the liability component and unamortized debt issuance costs on settlement date. As of December 28, 2014, after conversion of $3.2 million aggregate principal amount of the Converted Notes, the remaining aggregate principal amount of the 1.5% Notes due 2017 outstanding was $996.8 million. As of January 30, 2015, the Company had received additional conversion notices for a total of $46 thousand aggregate principal amount of the 1.5% Notes due 2017, for which conversion is expected to be completed in the first quarter of fiscal year 2015. | ||||||||||||
The Company pays cash interest at an annual rate of 1.5%, payable semi-annually on February 15 and August 15 of each year, beginning February 15, 2011. Debt issuance costs were $18.7 million, of which $5.5 million was allocated to capital in excess of par value and $13.2 million was allocated to deferred issuance costs and is amortized to interest expense over the term of the 1.5% Notes due 2017. As of December 28, 2014, unamortized deferred issuance cost was $4.9 million. | ||||||||||||
Concurrently with the issuance of the 1.5% Notes due 2017, the Company purchased a convertible bond hedge and sold warrants. The convertible bond hedge transaction is structured to reduce the potential future economic dilution associated with the conversion of the 1.5% Notes due 2017 and, combined with the warrants, to increase the initial conversion price to $73.3250 per share. Each of these components is discussed separately below: | ||||||||||||
• | Convertible Bond Hedge. Counterparties agreed to sell to the Company up to approximately 19.1 million shares of the Company’s common stock, which is the number of shares initially issuable upon conversion of the 1.5% Notes due 2017 in full, at a price of $52.37 per share. The 1.5% Notes due 2017 contains provisions where the number of shares to be sold under the convertible bond hedge transaction and the conversion price will be adjusted if the Company pays a cash dividend or makes a distribution to all or substantially all holders of its common stock. Adjusting for dividends paid through December 28, 2014, the counterparties have agreed to sell to us up to approximately 19.4 million shares of the Company’s common stock, which is the number of shares issuable upon conversion of the 1.5% Notes due 2017 in full, at a price of $51.36 per share as of December 28, 2014. This convertible bond hedge transaction will be settled in net shares and will terminate upon the earlier of the maturity date of the 1.5% Notes due 2017 or the first day none of the 1.5% Notes due 2017 remain outstanding due to conversion or otherwise. Settlement of the convertible bond hedge in net shares, based on the number of shares issuable upon conversion of the 1.5% Notes due 2017, on the maturity date would result in the Company receiving net shares equivalent to the number of shares issuable by the Company upon conversion of the 1.5% Notes due 2017. Should there be an early unwind of the convertible bond hedge transaction, the number of net shares potentially received by the Company will depend upon 1) the then existing overall market conditions, 2) the Company’s stock price, 3) the volatility of the Company’s stock, and 4) the amount of time remaining before maturity of the convertible bond hedge. The convertible bond hedge transaction cost of $292.9 million has been accounted for as an equity transaction. The Company initially recorded approximately $1.7 million in stockholders’ equity from the deferred tax asset related to the convertible bond hedge at inception of the transaction. Through December 28, 2014, the Company had received 26,622 shares of the Company’s common stock from the exercise of a portion of the convertible note hedges related to the conversion of the $3.2 million aggregate principal amount of the 1.5% Notes due 2017. | |||||||||||
• | Warrants. The Company received $188.1 million from the same counterparties from the sale of warrants to purchase up to approximately 19.1 million shares of the Company’s common stock at an exercise price of $73.3250 per share. The 1.5% Notes due 2017 contains provisions whereby the number of shares to be acquired under the warrants and the strike price are adjusted if the Company pays a cash dividend or makes a distribution to all or substantially all holders of its common stock. Adjusting for dividends paid through December 28, 2014, holders of the warrants may acquire up to approximately 19.5 million shares of the Company’s common stock at a strike price of $71.9005 per share as of December 28, 2014. The warrants mature on 40 different dates from November 13, 2017 through January 10, 2018 and are exercisable at the maturity date. At each maturity date, the Company may, at its option, elect to settle the warrants on a net share basis. As of December 28, 2014, the warrants had not been exercised and remained outstanding. The value of the warrants was initially recorded in equity and continues to be classified as equity. | |||||||||||
0.5% Convertible Senior Notes Due 2020. In October 2013, the Company issued and sold $1.5 billion in aggregate principal amount of 0.5% Convertible Senior Notes due October 15, 2020 (the “0.5% Notes due 2020”) at par. The 0.5% Notes due 2020 may be converted, under certain circumstances described below, based on an initial conversion rate of 10.8470 shares of common stock per $1,000 principal amount of notes (which represents 16.3 million shares at an initial conversion price of approximately $92.19 per share). The 0.5% Notes due 2020 contain provisions where the conversion rate and conversion price are adjusted if the Company pays a cash dividend greater than a regular quarterly cash dividend of $0.225 per share or makes a distribution to all or substantially all holders of its common stock. Accordingly, as of December 28, 2014, the conversion rate was adjusted for dividends in excess of $0.225 per share paid to date to 10.8647 shares of common stock per $1,000 principal amount of notes (which represents 16.3 million shares at a conversion price of approximately $92.04 per share). The net proceeds to the Company from the sale of the 0.5% Notes due 2020 were approximately $1.48 billion. | ||||||||||||
The Company separately accounts for the liability and equity components of the 0.5% Notes due 2020. The principal amount of the liability component of $1.15 billion as of the date of issuance was recognized at the present value of its cash flows using a discount rate of 4.43%, the Company’s borrowing rate at the date of the issuance for a similar debt instrument without the conversion feature. As of December 28, 2014, the carrying value of the equity component of $352.0 million was unchanged from the date of issuance. | ||||||||||||
The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 0.5% Notes due 2020 (in thousands): | ||||||||||||
Fiscal years ended | ||||||||||||
December 28, 2014 | December 29, | |||||||||||
2013 | ||||||||||||
Contractual interest coupon | $ | 7,500 | $ | 1,271 | ||||||||
Amortization of bond issuance costs | 2,551 | 439 | ||||||||||
Amortization of bond discount | 43,527 | 7,486 | ||||||||||
Total interest cost recognized | $ | 53,578 | $ | 9,196 | ||||||||
The effective interest rate on the liability component of the 0.5% Notes due 2020 was 4.43% for the fiscal years ended December 28, 2014 and December 29, 2013. The remaining unamortized bond discount of $300.3 million as of December 28, 2014 will be amortized over the remaining life of the 0.5% Notes due 2020, which is approximately 5.8 years. | ||||||||||||
The 0.5% Notes due 2020 may be converted on any day prior to the close of business on the scheduled trading day immediately preceding July 15, 2020, in multiples of $1,000 principal amount at the option of the holder under any of the following circumstances: 1) during the five business-day period after any five consecutive trading-day period (the “measurement period”) in which the trading price per note for each day of such measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such day; 2) during any calendar quarter after the calendar quarter ending December 29, 2013, if the last reported sale price of the Company’s common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; or 3) upon the occurrence of specified corporate transactions. On and after July 15, 2020 until the close of business on the second scheduled trading day immediately preceding the maturity date of October 15, 2020, holders may convert their notes at any time, regardless of the foregoing circumstances. | ||||||||||||
Upon conversion, a holder will receive the conversion value of the 0.5% Notes due 2020 to be converted equal to the conversion rate multiplied by the volume-weighted-average price of the Company’s common stock during a specified period following the conversion date. The conversion value of each 0.5% Note due 2020 will be paid in: 1) cash equal to the lesser of the principal amount of the note or the conversion value, as defined, and 2) to the extent the conversion value exceeds the principal amount of the note, common stock (plus cash in lieu of any fractional shares of common stock). The conversion price will be subject to adjustment in some events but will not be adjusted for accrued interest. Upon a “fundamental change” at any time, as defined, the Company will in some cases increase the conversion rate for a holder who elects to convert its 0.5% Notes due 2020 in connection with such fundamental change. In addition, the holders may require the Company to repurchase for cash all or a portion of their notes upon a “designated event” at a price equal to 100% of the principal amount of the notes being repurchased plus accrued and unpaid interest, if any. As of December 28, 2014, the 0.5% Notes due 2020 were not convertible. | ||||||||||||
The Company pays cash interest at an annual rate of 0.5%, payable semi-annually on April 15 and October 15 of each year, beginning April 15, 2014. Debt issuance costs were $17.6 million, of which $4.1 million was allocated to capital in excess of par value and $13.5 million was allocated to deferred issuance costs and is amortized to interest expense over the term of the 0.5% Notes due 2020. As of December 28, 2014, unamortized deferred issuance cost was $11.2 million. | ||||||||||||
Concurrently with the issuance of the 0.5% Notes due 2020, the Company purchased a convertible bond hedge and sold warrants. The convertible bond hedge transaction is structured to reduce the potential future economic dilution associated with the conversion of the 0.5% Notes due 2020 and, combined with the warrants, to increase the initial conversion price to $122.9220 per share. Each of these components is discussed separately below: | ||||||||||||
• | Convertible Bond Hedge. Counterparties agreed to sell to the Company up to approximately 16.3 million shares of the Company’s common stock, which is the number of shares initially issuable upon conversion of the 0.5% Notes due 2020 in full, at a price of $92.19 per share. The 0.5% Notes due 2020 contains provisions where the number of shares to be sold under the convertible bond hedge transaction and the conversion price will be adjusted if the Company pays a cash dividend greater than a regular quarterly cash dividend of $0.225 per share or makes a distribution to all or substantially all holders of its common stock. Adjusting for dividends paid through December 28, 2014, the counterparties have agreed to sell to us up to approximately 16.3 million shares of the Company’s common stock, which is the number of shares issuable upon conversion of the 0.5% Notes due 2020 in full, at a price of $92.04 per share as of December 28, 2014. This convertible bond hedge transaction will be settled in net shares and will terminate upon the earlier of the maturity date of the 0.5% Notes due 2020 or the first day none of the 0.5% Notes due 2020 remain outstanding due to conversion or otherwise. Settlement of the convertible bond hedge in net shares, based on the number of shares issuable upon conversion of the 0.5% Notes due 2020, on the maturity date would result in the Company receiving net shares equivalent to the number of shares issuable by the Company upon conversion of the 0.5% Notes due 2020. Should there be an early unwind of the convertible bond hedge transaction, the number of net shares potentially received by the Company will depend upon 1) the then existing overall market conditions, 2) the Company’s stock price, 3) the volatility of the Company’s stock, and 4) the amount of time remaining before maturity of the convertible bond hedge. The convertible bond hedge transaction cost of $331.7 million has been accounted for as an equity transaction. The Company initially recorded approximately $119.5 million in stockholders’ equity from the deferred tax asset related to the convertible bond hedge at inception of the transaction. As of December 28, 2014, the Company had not purchased any shares under this convertible bond hedge agreement. | |||||||||||
• | Warrants. The Company received $217.8 million from the same counterparties from the sale of warrants to purchase up to approximately 16.3 million shares of the Company’s common stock at an exercise price of $122.9220 per share. The 0.5% Notes due 2020 contains provisions whereby the number of shares to be acquired under the warrants and the strike price are adjusted if the Company pays a cash dividend greater than a regular quarterly cash dividend of $0.225 per share or makes a distribution to all or substantially all holders of its common stock. Adjusting for dividends paid through December 28, 2014, holders of the warrants may acquire up to approximately 16.3 million shares of the Company’s common stock at a strike price of $122.7218 per share as of December 28, 2014. The warrants mature on 40 different dates from January 13, 2021 through March 11, 2021 and are exercisable at the maturity date. At each maturity date, the Company may, at its option, elect to settle the warrants on a net share basis. As of December 28, 2014, the warrants had not been exercised and remained outstanding. The value of the warrants was initially recorded in equity and continues to be classified as equity. |
Share_Repurchases
Share Repurchases | 12 Months Ended |
Dec. 28, 2014 | |
Share Repurchases [Abstract] | |
Treasury Stock | Stock Repurchases |
The Company’s Board of Directors authorized in October 2011 a program to repurchase up to $500.0 million of shares of the Company’s common stock. The stock repurchase program was increased by an additional $750.0 million by the Company’s Board of Directors in December 2012 and was fully expended by the end of the third quarter of fiscal year 2013. In July 2013, the Company’s Board of Directors authorized a new stock repurchase program of $2.5 billion, of which $626.7 million remained available for stock repurchases as of December 28, 2014. In January 2015, the Company’s Board of Directors increased the stock repurchase program by an additional $2.5 billion. The current stock repurchase program will remain in effect until the available funds have been expended or the Company’s Board of Directors terminates the program. | |
Under the Company’s stock repurchase program, shares repurchased are recorded as a reduction to Capital in excess of par value and Retained earnings in the Company’s Consolidated Balance Sheets. The repurchases will be made from time to time in privately negotiated or open market transactions, including under plans complying with Rule 10b5‑1 of the Securities Exchange Act, or in structured stock repurchase programs, and may be made in one or more repurchases, in compliance with Rule 10b‑18 of the Securities Exchange Act. Stock repurchases are subject to market conditions, applicable legal requirements and other factors. The stock repurchase program does not obligate the Company to acquire any specific number of common stock, or any shares at all, and may be suspended at any time at the Company’s discretion. As part of the stock repurchase program, the Company has entered into, and may continue to enter into, structured stock repurchase transactions with financial institutions. These agreements generally require that the Company make an up-front payment in exchange for the right to receive a fixed number of shares of its common stock upon execution of the agreement, with a potential increase or decrease in the number of shares at the end of the term of the agreement. | |
In the third quarter of fiscal year 2013, under the Company’s stock repurchase program, the Company entered into an accelerated share repurchase (“ASR”) agreement with a financial institution to purchase $1.0 billion of the Company’s common stock. In exchange for an up-front payment of $1.0 billion, the financial institution committed to deliver shares during the ASR’s purchase period, which ended on April 8, 2014. During the third quarter of fiscal year 2013, 14.5 million shares were initially delivered to the Company under this ASR agreement. The up-front payment of $1.0 billion was accounted for as a reduction to Stockholders’ equity in the Company’s Consolidated Balance Sheet. In April 2014, the ASR was settled and the Company received an additional 0.6 million shares from the financial institution for a total of 15.1 million shares, which resulted in a volume-weighted-average price of $66.07 per share. | |
The Company reflected the ASR as a repurchase of common stock for purposes of calculating earnings per share and as a forward contract indexed to its own common stock. The forward contract met all of the applicable criteria for equity classification, and therefore, was not accounted for as a derivative instrument. | |
Under the Company’s stock repurchase programs, since the fourth quarter of fiscal year 2011 through December 28, 2014, the Company spent an aggregate $3.12 billion to repurchase 45.3 million shares. Included in the aggregate repurchase activity are 14.3 million shares that were repurchased for an aggregate amount of $1.30 billion during the fiscal year ended December 28, 2014. In addition to repurchases under the Company’s stock repurchase program, during the fiscal year ended December 28, 2014, the Company spent $41.3 million to settle employee tax withholding obligations due upon the vesting of restricted stock units (“RSUs”) and withheld an equivalent value of shares from the shares provided to the employees upon vesting. |
Concentration_of_Risk_and_Segm
Concentration of Risk and Segment Information | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Concentration of Risk and Segment Information [Abstract] | ||||||||||||
Concentration Risk Disclosure | Concentration of Risk and Segment Information | |||||||||||
Geographic Information and Major Customers. The Company markets and sells flash memory products in the U.S. and in foreign countries through its sales personnel, dealers, distributors, retailers and subsidiaries. The Company’s Chief Operating Decision Maker, its President and Chief Executive Officer, evaluates performance of the Company and makes decisions regarding allocation of resources based on total Company results. Since the Company operates in one segment, all financial segment information can be found in the accompanying Consolidated Financial Statements. | ||||||||||||
Other than sales in the U.S., China and Taiwan, no individual country represented more than 10% of the Company’s revenue. Intercompany sales between geographic areas have been eliminated. | ||||||||||||
Revenue by geographic areas for fiscal years 2014, 2013 and 2012 were as follows (in thousands): | ||||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 1,136,284 | $ | 877,759 | $ | 714,293 | ||||||
China | 2,026,122 | 1,887,207 | 1,195,617 | |||||||||
Taiwan | 864,461 | 958,705 | 981,801 | |||||||||
Other Asia-Pacific | 1,464,720 | 1,363,927 | 1,290,291 | |||||||||
Europe, Middle East and Africa | 814,817 | 780,079 | 642,494 | |||||||||
Other foreign countries | 321,297 | 302,326 | 228,013 | |||||||||
Total | $ | 6,627,701 | $ | 6,170,003 | $ | 5,052,509 | ||||||
Product revenue from customers is designated based on the geographic location to which the product is delivered. License and royalty revenue is attributed to countries based upon the location of the headquarters of the licensee. | ||||||||||||
Long-lived assets by geographic area were as follows (in thousands): | ||||||||||||
December 28, | December 29, | |||||||||||
2014 | 2013 | |||||||||||
United States | $ | 314,578 | $ | 313,959 | ||||||||
Japan | 503,234 | 553,318 | ||||||||||
China | 283,533 | 299,704 | ||||||||||
Other foreign countries | 150,918 | 47,070 | ||||||||||
Total | $ | 1,252,263 | $ | 1,214,051 | ||||||||
Long-lived assets are attributed to the geographic location in which they are located. The Company includes in long-lived assets property and equipment, long-term equity investments in Flash Ventures and other equity investments, and attributes those investments to the location of the investee’s primary operations. | ||||||||||||
Customer and Supplier Concentrations. A limited number of customers or licensees have accounted for a substantial portion of the Company’s revenue. Revenue from the Company’s top 10 customers or licensees accounted for approximately 48%, 49% and 43% of the Company’s revenue for fiscal years 2014, 2013 and 2012, respectively. In fiscal years 2014, 2013 and 2012, Apple Inc. (“Apple”) accounted for 19%, 20% and 13% of the Company’s revenue, respectively. | ||||||||||||
All of the Company’s flash memory system products require silicon wafers for the memory and controller components. The Company’s memory wafers are currently supplied almost entirely from Flash Ventures and the controller wafers are all manufactured by third‑party subcontractors. The failure of any of these sources to deliver silicon wafers could have a material adverse effect on the Company’s business, financial condition and results of operations. Moreover, the employees of Toshiba Corporation (“Toshiba”) that produce Flash Ventures’ products are covered by collective bargaining agreements and any strike or other job action by those employees could interrupt the Company’s wafer supply from Toshiba’s Yokkaichi, Japan operations. | ||||||||||||
In addition, some key components are purchased from single source vendors for which alternative sources are currently not available. Shortages could occur in these essential materials due to an interruption of supply or increased demand in the industry. If the Company were unable to procure certain of such materials, it could reduce sales, which could have a material adverse effect upon its results of operations. The Company also relies on third‑party subcontractors to assemble and test a portion of its products. The Company does not have long-term contracts with some of these subcontractors and cannot directly control product delivery schedules or manufacturing processes. This could lead to product shortages or quality assurance problems that could increase the manufacturing costs of the Company’s products and have material adverse effects on the Company’s operating results. | ||||||||||||
Concentration of Credit Risk. The Company’s concentration of credit risk consists principally of cash, cash equivalents, short and long-term marketable securities and trade receivables. The Company’s investment policy restricts investments to high-credit quality investments and limits the amounts invested with any one issuer. The Company sells to Commercial and Retail customers in the Americas; Europe, Middle East and Africa (“EMEA”); and Asia-Pacific. The Company performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral. As of December 28, 2014 and December 29, 2013, the Company’s top 10 customers or licensees accounted for approximately 68% and 64% of the Company’s net accounts receivable, respectively. As of December 28, 2014, Apple and Best Buy Co., Inc. (“Best Buy”) accounted for 34% and 10% of the Company’s net accounts receivable, respectively. As of December 29, 2013, Apple and Best Buy accounted for 32% and 11% of the Company’s net accounts receivable, respectively. | ||||||||||||
Off-Balance Sheet Risk. The Company has off-balance sheet financial obligations. See Note 14, “Commitments, Contingencies and Guarantees.” |
Stockholders_Equity_and_ShareB
Stockholders Equity and Share-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Dividend Declaration | Dividends | ||||||||||||
During the fiscal year ended December 28, 2014, the Company’s Board of Directors declared the following dividends: | |||||||||||||
Declaration Date | Dividend per Share | Record Date | Total Amount Declared | Payment Date | |||||||||
(In millions) | |||||||||||||
January 21, 2014 | $ | 0.225 | February 3, 2014 | $ | 51.7 | February 24, 2014 | |||||||
April 15, 2014 | 0.225 | May 5, 2014 | 52 | May 27, 2014 | |||||||||
July 15, 2014 | 0.3 | August 4, 2014 | 68.5 | August 25, 2014 | |||||||||
October 15, 2014 | 0.3 | November 3, 2014 | 67.5 | November 24, 2014 | |||||||||
On January 21, 2015, the Company’s Board of Directors declared a dividend of $0.30 per share for holders of record as of March 2, 2015, which is to be paid on March 23, 2015. Future dividends are subject to declaration by the Company’s Board of Directors. | |||||||||||||
Share-Based Compensation | Share‑based Benefit Plans | ||||||||||||
2013 Incentive Plan. On June 12, 2013, the Company’s stockholders approved the 2013 Incentive Plan (“2013 Plan”). Shares of the Company’s common stock may be issued under the 2013 Plan pursuant to two separate equity incentive programs: (i) the discretionary grant program under which stock options and stock appreciation rights (“SARs”) may be granted to officers and other employees, non-employee board members and independent consultants, and (ii) the stock issuance and cash bonus program under which eligible persons may, at the discretion of the plan administrator, be issued shares of the Company’s common stock pursuant to restricted stock awards, restricted stock units (“RSUs”) or other share-based awards which vest upon the completion of a designated service period or the attainment of pre-established performance milestones, be awarded cash bonus opportunities which are earned through the attainment of pre-established performance milestones, or be issued shares of the Company’s common stock through direct purchase or as a bonus for services rendered to the Company. Options eligible for exercise may be exercised for shares of the Company’s common stock at any time prior to the expiration of the seven-year option term or any earlier termination of those options in connection with the optionee’s cessation of service with the Company. Outstanding RSU awards under the 2013 Plan have dividend equivalent rights which entitle holders of RSUs to the same dividend value per share as holders of common stock. Dividend equivalent rights are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs. Dividend equivalent rights are accumulated and paid when the underlying shares vest. A total of 20,000,000 shares of the Company’s common stock have initially been reserved for issuance under the 2013 Plan. The 2013 Plan share reserve may be increased by up to 10,000,000 shares of common stock to the extent that outstanding share-based awards under the 1995 Stock Option Plan and the 2013 Plan expire, terminate or lapse, of which 762,444 shares of common stock as of December 28, 2014 had been added to the 2013 Plan share reserve. All options granted under the 2013 Plan are granted with an exercise price equal to the fair market value of the common stock on the date of grant and will expire seven years from the date of grant. | |||||||||||||
2005 Incentive Plan. The 2005 Incentive Plan terminated on June 12, 2013 and no further share-based awards were made under this plan after that date. Share-based awards that were outstanding under this plan as of December 28, 2014 continue to be governed by their existing terms. Options eligible for exercise may be exercised for shares of the Company’s common stock at any time prior to the expiration of the seven‑year option term or any earlier termination of those options in connection with the optionee’s cessation of service with the Company. Outstanding RSU awards under this plan have dividend equivalent rights, which entitle holders of RSUs to the same dividend value per share as holders of common stock. Dividend equivalent rights are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs. | |||||||||||||
1995 Stock Option Plan. This plan terminated on May 27, 2005 and no further option grants were made under the plans after that date. Options eligible for exercise that were outstanding under these plans as of December 28, 2014 continue to be governed by their existing terms and may be exercised for shares of the Company’s common stock at any time prior to the expiration of the ten‑year option term or any earlier termination of those options in connection with the optionee’s cessation of service with the Company. | |||||||||||||
2005 Employee Stock Purchase Plan. The 2005 Employee Stock Purchase Plan (“ESPP”) was originally approved by the stockholders on May 27, 2005 and amended and restated with approval by the stockholders on June 19, 2014. The ESPP allows eligible employees to purchase shares of the Company’s common stock at the end of each six-month offering period at a purchase price equal to 85% of the lower of the fair market value per share on the start date of the offering period or the fair market value per share on the purchase date. The ESPP has 10,000,000 shares reserved for issuance, of which 3,706,401 shares were available to be issued as of December 28, 2014. In fiscal years 2014, 2013 and 2012, a total of 639,265 shares, 623,887 shares and 684,646 shares of common stock, respectively, were issued under this plan. | |||||||||||||
Acquired Plans. In connection with the Company’s acquisitions of Fusion‑io, SMART Storage, FlashSoft, Pliant, msystems Ltd. and Matrix Semiconductor, Inc., the Company adopted various equity incentive plans, which were effective upon completion of the applicable acquisition. Each of these plans was terminated as of the date of acquisition and no further grants were made under any of these plans after their termination. Any unvested option grants that were outstanding under these plans as of December 28, 2014 continue to be governed by their existing terms and may be exercised for shares of the Company’s common stock. Vested options may be exercised for shares of the Company’s common stock at any time prior to the expiration of the option term or any earlier termination of those options in connection with the optionee’s cessation of service with the Company. | |||||||||||||
Accounting for Share-based Compensation Expense | |||||||||||||
For share-based awards expected to vest, compensation cost is based on the grant-date fair value. The Company recognizes compensation expense for the fair values of these awards, which have graded vesting, on a straight-line basis over the requisite service period of each of these awards, net of estimated forfeitures. | |||||||||||||
Valuation Assumptions | |||||||||||||
The Company estimates the fair value of stock options granted and ESPP shares issued using the Black-Scholes-Merton option-pricing formula and a single-option award approach. The Company’s expected term represents the period that the Company’s share-based awards are expected to be outstanding and was determined based on historical experience for similar awards, giving consideration to the contractual terms of the share-based awards. The Company’s expected volatility is based on the implied volatility of its traded options. The Company’s dividend yield is based on the annualized dividend and the share price at each dividend declaration date. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term. | |||||||||||||
Option Plan Shares. The fair value of the Company’s stock options granted to employees, officers and non-employee board members, excluding unvested stock options assumed through acquisitions, was estimated using the following annual weighted-average assumptions: | |||||||||||||
Fiscal years ended | |||||||||||||
December 28, | December 29, | December 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividend yield | 1.14% - 1.42% | 0% - 1.65% | —% | ||||||||||
Expected volatility | 0.32 | 0.37 | 0.43 | ||||||||||
Risk-free interest rate | 1.22% | 0.74% | 0.60% | ||||||||||
Expected term | 4.4 years | 4.4 years | 4.3 years | ||||||||||
Estimated annual forfeiture rate | 8.79% | 8.51% | 8.59% | ||||||||||
Weighted-average fair value at grant date | $18.96 | $16.26 | $16.45 | ||||||||||
RSU Plan Shares. The fair value of the Company’s RSU awards granted, excluding unvested RSU awards assumed through acquisitions, was valued using the closing price of the Company’s stock price on the date of grant. | |||||||||||||
Employee Stock Purchase Plan Shares. The fair value of shares issued under the Company’s ESPP program was estimated using the following weighted-average assumptions: | |||||||||||||
Fiscal years ended | |||||||||||||
December 28, | December 29, | December 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividend yield | 1.14% - 1.25% | 0% - 1.65% | —% | ||||||||||
Expected volatility | 0.31 | 0.34 | 0.41 | ||||||||||
Risk-free interest rate | 0.07% | 0.11% | 0.15% | ||||||||||
Expected term | ½ year | ½ year | ½ year | ||||||||||
Weighted-average fair value at purchase date | $19.39 | $13.08 | $11.87 | ||||||||||
Share‑based Compensation Plan Activities | |||||||||||||
Stock Options and SARs. A summary of stock option and SARs activities under all of the Company’s share‑based compensation plans as of December 28, 2014 and changes during the three fiscal years ended December 28, 2014 are presented below (in thousands, except for weighted-average exercise price and remaining contractual term): | |||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||
Options and SARs outstanding as of January 1, 2012 | 17,559 | $ | 36.55 | 3.4 | $ | 257,251 | |||||||
Granted | 2,336 | 46.49 | |||||||||||
Exercised | (3,403 | ) | 21.32 | 81,622 | |||||||||
Forfeited | (469 | ) | 38.12 | ||||||||||
Expired | (597 | ) | 53.1 | ||||||||||
Options and SARs outstanding as of December 30, 2012 | 15,426 | 40.73 | 3.2 | 109,411 | |||||||||
Granted | 1,142 | 52.69 | |||||||||||
Exercised | (7,362 | ) | 35.53 | 163,992 | |||||||||
Forfeited | (433 | ) | 43.72 | ||||||||||
Expired | (2,363 | ) | 60.7 | ||||||||||
Options assumed through acquisition | 183 | 19.37 | |||||||||||
Options and SARs outstanding as of December 29, 2013 | 6,593 | 40.66 | 4.2 | 195,018 | |||||||||
Granted | 1,032 | 76.82 | |||||||||||
Exercised | (3,635 | ) | 40.54 | 163,623 | |||||||||
Forfeited | (318 | ) | 51.88 | ||||||||||
Expired | (9 | ) | 41.09 | ||||||||||
Options assumed through acquisition | 427 | 68.49 | |||||||||||
Options and SARs outstanding as of December 28, 2014 | 4,090 | 51.94 | 4.5 | 202,044 | |||||||||
Options and SARs vested and expected to vest after December 28, 2014, net of forfeitures | 3,864 | 51.23 | 4.4 | 193,621 | |||||||||
Options and SARs exercisable as of December 28, 2014 | 1,547 | 38.53 | 3.2 | 97,107 | |||||||||
As of December 28, 2014, the total unrecognized compensation cost related to stock options, net of estimated forfeitures, was approximately $36.2 million, and this amount is expected to be recognized over a weighted-average period of approximately 2.2 years. As of December 28, 2014, the Company had fully expensed all of its SARs awards. | |||||||||||||
Restricted Stock Units. RSUs are settled in shares of the Company’s common stock upon vesting on a one-for-one basis. Typically, vesting of RSUs is subject to the employee’s continuing service to the Company. The cost of these awards is determined using the fair value of the Company’s common stock on the date of grant, and compensation is recognized on a straight-line basis over the requisite vesting period. | |||||||||||||
A summary of the changes in RSUs outstanding under the Company’s share‑based compensation plans during the three fiscal years ended December 28, 2014 is presented below (in thousands, except for weighted-average grant date fair value): | |||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | |||||||||||
Non-vested share units as of January 1, 2012 | 2,051 | $ | 40.22 | $ | 100,913 | ||||||||
Granted | 1,840 | 45.04 | |||||||||||
Vested | (646 | ) | 47.75 | 29,479 | |||||||||
Forfeited | (227 | ) | 42.85 | ||||||||||
Assumed through acquisition | 59 | 46.63 | |||||||||||
Non-vested share units as of December 30, 2012 | 3,077 | 43.51 | 131,622 | ||||||||||
Granted | 2,665 | 53.99 | |||||||||||
Vested | (950 | ) | 41.97 | 50,268 | |||||||||
Forfeited | (338 | ) | 46.93 | ||||||||||
Non-vested share units as of December 29, 2013 | 4,454 | 49.87 | 221,457 | ||||||||||
Granted | 2,888 | 81.62 | |||||||||||
Vested | (1,594 | ) | 51.19 | 129,945 | |||||||||
Forfeited | (606 | ) | 70.81 | ||||||||||
Assumed through acquisition | 445 | 94.35 | |||||||||||
Non-vested share units as of December 28, 2014 | 5,587 | 67.18 | 375,366 | ||||||||||
As of December 28, 2014, the total unrecognized compensation cost related to RSUs, net of estimated forfeitures, was approximately $244.8 million, and this amount is expected to be recognized over a weighted-average period of approximately 2.6 years. | |||||||||||||
Employee Stock Purchase Plan. As of December 28, 2014, the total unrecognized compensation cost related to ESPP was approximately $1.5 million, and this amount is expected to be recognized over a period of two months. | |||||||||||||
Share‑based Compensation Expense. The following tables set forth the detailed allocation of the share‑based compensation expense (in thousands): | |||||||||||||
Fiscal years ended | |||||||||||||
December 28, | December 29, | December 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Share‑based compensation expense by caption: | |||||||||||||
Cost of revenue | $ | 14,720 | $ | 9,820 | $ | 7,459 | |||||||
Research and development | 74,842 | 51,521 | 41,009 | ||||||||||
Sales and marketing | 35,972 | 19,193 | 14,585 | ||||||||||
General and administrative | 29,779 | 19,222 | 15,390 | ||||||||||
Total share‑based compensation expense | 155,313 | 99,756 | 78,443 | ||||||||||
Total tax benefit recognized | (42,685 | ) | (28,183 | ) | (20,122 | ) | |||||||
Decrease in net income | $ | 112,628 | $ | 71,573 | $ | 58,321 | |||||||
Share‑based compensation expense by type of award: | |||||||||||||
Stock options | $ | 35,607 | $ | 32,803 | $ | 35,428 | |||||||
RSUs | 108,259 | 59,962 | 35,260 | ||||||||||
ESPP | 11,447 | 6,991 | 7,755 | ||||||||||
Total share‑based compensation expense | 155,313 | 99,756 | 78,443 | ||||||||||
Total tax benefit recognized | (42,685 | ) | (28,183 | ) | (20,122 | ) | |||||||
Decrease in net income | $ | 112,628 | $ | 71,573 | $ | 58,321 | |||||||
Share‑based compensation expense of $4.3 million and $2.7 million related to manufacturing personnel was capitalized into inventory as of December 28, 2014 and December 29, 2013, respectively. | |||||||||||||
In the fiscal year ended December 28, 2014, the Company recognized $10.8 million in share-based compensation expense related to acceleration of equity awards held by former Fusion-io employees. | |||||||||||||
The total grant date fair value of options and RSUs vested during the three fiscal years ended December 28, 2014 was as follows (in thousands): | |||||||||||||
Fiscal years ended | |||||||||||||
December 28, | December 29, | December 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Options | $ | 37,986 | $ | 36,703 | $ | 37,674 | |||||||
RSUs | 81,619 | 39,885 | 24,327 | ||||||||||
Total grant date fair value of vested options and RSUs | $ | 119,605 | $ | 76,588 | $ | 62,001 | |||||||
Restructuring_and_Other_Relate
Restructuring and Other Related Activities | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Restructuring and Related Activities Disclosure | Restructuring and Other | |||||||||||
During the fiscal year ended December 28, 2014, the Company recorded the following in Restructuring and other (in thousands): | ||||||||||||
Restructuring costs | $ | 12,050 | ||||||||||
Other costs | 20,941 | |||||||||||
Total restructuring and other | $ | 32,991 | ||||||||||
Restructuring Costs. During the six months ended December 28, 2014, the Company implemented a restructuring plan which primarily consisted of reductions in workforce in certain functions of the organization, primarily in the U.S. and certain foreign countries, because of redundant activities due to the Fusion‑io acquisition, as well as realignment of certain projects. A restructuring charge of $12.0 million was recorded during the fiscal year ended December 28, 2014, of which $11.4 million related to severance and benefits for involuntary termination of personnel in manufacturing operations, research and development, sales and marketing, and general and administrative functions of approximately 143 employees. The remaining $0.6 million was primarily for asset disposals and an excess lease obligation. All expenses, including adjustments, associated with the restructuring plan are included in Restructuring and other in the Company’s Consolidated Statements of Operations. | ||||||||||||
The following table sets forth an analysis of the components of the restructuring charge and payments made against the reserve as of December 28, 2014 (in thousands): | ||||||||||||
Severance and Benefits | Other | Total | ||||||||||
Charges | ||||||||||||
Accrual balance at December 29, 2013 | $ | — | $ | — | $ | — | ||||||
Charges | 11,437 | 585 | 12,022 | |||||||||
Adjustments | 33 | (5 | ) | 28 | ||||||||
Cash payments | (6,699 | ) | (25 | ) | (6,724 | ) | ||||||
Non-cash items | — | (515 | ) | (515 | ) | |||||||
Accrual balance at December 28, 2014 | $ | 4,771 | $ | 40 | $ | 4,811 | ||||||
The Company anticipates that the remaining restructuring reserve balance will be paid out in cash through the second quarter of fiscal year 2015 in connection with the Company’s employee transition program. | ||||||||||||
Other Costs. During the fiscal year ended December 28, 2014, the Company recognized other costs of $20.9 million related to its acquisition of Fusion‑io. Direct acquisition-related costs of $9.1 million primarily consisted of expenses incurred for legal, banker, accounting and tax fees. The remaining costs incurred were primarily related to certain employee change of control charges, employee retention bonus payments and litigation and integration expenses. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Provision for Income Taxes | Provision for Income Taxes | |||||||||||
The provision for income taxes consists of the following (in thousands): | ||||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 388,532 | $ | 359,012 | $ | 74,258 | ||||||
State | 12,404 | 9,972 | (824 | ) | ||||||||
Foreign | 88,563 | 103,981 | 101,710 | |||||||||
489,499 | 472,965 | 175,144 | ||||||||||
Deferred: | ||||||||||||
Federal | 10,544 | 27,328 | 45,383 | |||||||||
State | (13,250 | ) | 2,645 | 1,634 | ||||||||
Foreign | (5,209 | ) | (29,446 | ) | (12,649 | ) | ||||||
(7,915 | ) | 527 | 34,368 | |||||||||
Provision for income taxes | $ | 481,584 | $ | 473,492 | $ | 209,512 | ||||||
Income before provision for income taxes consisted of the following (in thousands): | ||||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 1,319,528 | $ | 1,436,470 | $ | 518,509 | ||||||
Foreign | 169,502 | 79,679 | 108,407 | |||||||||
Total | $ | 1,489,030 | $ | 1,516,149 | $ | 626,916 | ||||||
The Company’s provision for income taxes differs from the amount computed by applying the federal statutory rates to income before taxes as follows: | ||||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes, net of federal benefit | 0.8 | 0.6 | 0.3 | |||||||||
Non-deductible share-based compensation expense | 1 | 0.5 | 1.3 | |||||||||
Valuation allowance | 0.8 | (0.1 | ) | 0.2 | ||||||||
Tax-exempt interest income | (0.6 | ) | (0.7 | ) | (1.9 | ) | ||||||
Foreign earnings at other than U.S. rates | (2.2 | ) | (2.9 | ) | (1.2 | ) | ||||||
Settlements with tax authorities | (1.7 | ) | — | (0.6 | ) | |||||||
Other | (0.8 | ) | (1.2 | ) | 0.3 | |||||||
Effective income tax rates | 32.3 | % | 31.2 | % | 33.4 | % | ||||||
The Company’s earnings and taxes resulting from foreign operations are largely attributable to its Chinese, Irish, Israeli and Japanese entities. | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax return reporting purposes. Significant components of the Company’s net deferred tax assets were as follows (in thousands): | ||||||||||||
December 28, | December 29, | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Deferred income on shipments to distributors and retailers and deferred revenue recognized for tax purposes | $ | 65,002 | $ | 68,117 | ||||||||
Accruals and reserves not currently deductible | 98,342 | 63,236 | ||||||||||
Depreciation and amortization not currently deductible | 96,735 | 81,245 | ||||||||||
Deductible share-based compensation | 32,679 | 28,684 | ||||||||||
Unrealized loss on investments | 10,045 | 13,620 | ||||||||||
Unrealized foreign exchange loss | 10,357 | 8,061 | ||||||||||
Net operating loss carryforwards | 196,809 | 36,422 | ||||||||||
Tax credit carryforwards | 61,134 | 37,905 | ||||||||||
Other | 22,100 | 24,667 | ||||||||||
Gross deferred tax assets | 593,203 | 361,957 | ||||||||||
Valuation allowance | (96,128 | ) | (52,105 | ) | ||||||||
Deferred tax assets, net of valuation allowance | 497,075 | 309,852 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Acquired intangible assets | (146,955 | ) | (2,701 | ) | ||||||||
Unrealized gain on investments | (2,007 | ) | (5,939 | ) | ||||||||
Unrealized foreign exchange gain | — | (3,127 | ) | |||||||||
U.S. taxes provided on unremitted earnings of foreign subsidiaries | (28,844 | ) | (28,844 | ) | ||||||||
Total deferred tax liabilities | (177,806 | ) | (40,611 | ) | ||||||||
Net deferred tax assets | $ | 319,269 | $ | 269,241 | ||||||||
The Company assesses its valuation allowance recorded against deferred tax assets on a regular and periodic basis. The assessment of valuation allowance against deferred tax assets requires estimations and significant judgment. The Company continues to assess and adjust its valuation allowance based on operating results and market conditions. During fiscal years 2014, 2013 and 2012, based on weighing both the positive and negative evidence available, including but not limited to, earnings history, projected future outcomes, industry and market trends and the nature of each of the deferred tax assets, the Company determined that it is able to realize most of its deferred tax assets with the exception of certain loss and credit carryforwards. | ||||||||||||
The Company has federal and state net operating loss carryforwards of $513.2 million and $453.7 million, respectively. The net operating losses will begin to expire in fiscal year 2015 if not utilized. The Company also has Federal and California research credit carryforwards of $13.1 million and $77.3 million, respectively. Federal research credits can be carried forward 20 years, while California research credits can be carried forward to future years indefinitely. Some of these carryforwards are subject to annual limitations, including under Section 382 and Section 383 of the U.S. Internal Revenue Code of 1986, as amended, for U.S. tax purposes and similar state provisions. | ||||||||||||
As of December 28, 2014, the Company had not made a provision for U.S. income taxes or foreign withholding taxes on $969.1 million of undistributed earnings of foreign subsidiaries as the Company intends to indefinitely reinvest these earnings outside the U.S. to fund its international capital expenditures and operating requirements. The Company determined that it is not practicable to calculate the amount of unrecognized deferred tax liability related to these cumulative unremitted earnings. If these earnings were distributed to the U.S., the Company would be subject to additional U.S. income taxes and foreign withholding taxes reduced by any available foreign tax credits. | ||||||||||||
The tax benefit from share-based plans was applied to capital in excess of par value in the amount of $45.1 million, $0.6 million and $11.7 million in fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | ||||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of year | $ | 185,250 | $ | 179,522 | $ | 185,826 | ||||||
Additions: | ||||||||||||
Tax positions related to current year | 17,656 | 8,255 | 8,164 | |||||||||
Tax positions related to prior years | 14,411 | 15,938 | 942 | |||||||||
Reductions: | ||||||||||||
Tax positions related to prior years | (9,597 | ) | (1,737 | ) | (7,186 | ) | ||||||
Expiration of statute of limitations | (8,039 | ) | (7,419 | ) | (2,003 | ) | ||||||
Settlements with taxing authorities | (71,121 | ) | — | — | ||||||||
Foreign currency translation adjustment | (3,387 | ) | (9,309 | ) | (6,221 | ) | ||||||
Balance, end of year | $ | 125,173 | $ | 185,250 | $ | 179,522 | ||||||
The total amount of unrecognized tax benefits that would impact the effective tax rate, if recognized, was $100.4 million as of December 28, 2014. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. Accrued interest and penalties included in the Company’s liability related to unrecognized tax benefits as of December 28, 2014 and December 29, 2013 was $30.1 million and $32.7 million, respectively. Interest and penalties, net, included in the Company’s tax expense was ($0.2) million, $2.2 million and $2.9 million for fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||
It is reasonably possible that the unrecognized tax benefits could decrease by approximately $56.2 million within the next 12 months as a result of the expiration of statutes of limitations and the settlement of income tax audits. The Company is currently under audit by several tax authorities in which the timing of the resolution and/or closure of these audits is highly uncertain. Therefore it is not possible to estimate other changes to the amount of unrecognized tax benefits for positions existing as of December 28, 2014. | ||||||||||||
The Company is subject to U.S. federal income tax as well as income taxes in multiple state and foreign jurisdictions. In August 2014, the Company received and signed the closing agreement with the Internal Revenue Service (“IRS”) relating to its federal income tax returns for the years 2005 through 2008. In fiscal year 2014, the Company recorded a benefit of $25.2 million as a result of several audit settlements. | ||||||||||||
The IRS is currently conducting an examination of the Company’s federal income tax returns for fiscal years 2009 through 2011. Though the Company can reasonably expect the current cycle to be resolved within the next 12 months, the timing of the resolution of income tax examinations is highly uncertain as are the amounts and timing of tax payments that are part of any audit settlement process. In addition, the Company is currently under audit by various state and international tax authorities. The Company cannot reasonably estimate the outcome of these examinations, or provide assurance that the outcome of these examinations will not materially harm the Company’s financial position, results of operations or liquidity. | ||||||||||||
The Company has a tax holiday in Malaysia that expires in December 2023. The impact of the tax holiday was immaterial to income taxes and earnings per share in the Company’s Consolidated Financial Statements. |
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Income Per Share | Net Income per Share | |||||||||||
The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): | ||||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator for basic net income per share: | ||||||||||||
Net income | $ | 1,007,446 | $ | 1,042,657 | $ | 417,404 | ||||||
Denominator for basic net income per share: | ||||||||||||
Weighted-average common shares outstanding | 222,714 | 234,886 | 242,076 | |||||||||
Basic net income per share | $ | 4.52 | $ | 4.44 | $ | 1.72 | ||||||
Numerator for diluted net income per share: | ||||||||||||
Net income | $ | 1,007,446 | $ | 1,042,657 | $ | 417,404 | ||||||
Denominator for diluted net income per share: | ||||||||||||
Weighted-average common shares outstanding | 222,714 | 234,886 | 242,076 | |||||||||
Incremental common shares attributable to exercise of outstanding employee stock options, SARs and ESPP (assuming proceeds would be used to purchase common stock), and RSUs | 3,419 | 3,263 | 3,177 | |||||||||
1.5% Notes due 2017 | 8,261 | 2,087 | — | |||||||||
Warrants issued in conjunction with the 1.5% Notes due 2017 | 3,815 | — | — | |||||||||
Shares used in computing diluted net income per share | 238,209 | 240,236 | 245,253 | |||||||||
Diluted net income per share | $ | 4.23 | $ | 4.34 | $ | 1.7 | ||||||
Anti-dilutive shares excluded from net income per share calculation | 33,672 | 53,485 | 70,309 | |||||||||
Basic earnings per share exclude any dilutive effects of stock options, SARs, RSUs, warrants and convertible debt. Diluted earnings per share include the dilutive effects of stock options, SARs, RSUs, ESPP, the 1.5% Notes due 2017 and warrants issued in conjunction with the 1.5% Notes due 2017. Certain common stock issuable under stock options, RSUs, the 0.5% Notes due 2020 and warrants issued in conjunction with the 0.5% Notes due 2020, has been omitted from the current year diluted net income per share calculation because the inclusion is considered anti-dilutive. Certain common stock issuable under stock options, SARs, RSUs, the 1% Notes due 2013, the 1.5% Notes due 2017, the 0.5% Notes due 2020, and warrants issued in conjunction with the 1% Notes due 2013, the 1.5% Notes due 2017 and the 0.5% Notes due 2020, has been omitted from the prior year diluted net income per share calculation because the inclusion is considered anti-dilutive. |
Commitments_Contingencies_and_
Commitments, Contingencies and Guarantees | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Commitments Contingencies and Guarantees [Abstract] | |||||||||||||||||||||
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees | ||||||||||||||||||||
Flash Ventures | |||||||||||||||||||||
Flash Ventures, the Company’s business ventures with Toshiba, consists of three separate legal entities: Flash Partners Ltd., Flash Alliance Ltd. and Flash Forward Ltd. The Company has a 49.9% ownership interest in each of these entities and Toshiba owns 50.1% of each of these entities. Through these ventures, the Company and Toshiba have collaborated in the development and manufacture of NAND flash memory products, which are manufactured by Toshiba at its wafer fabrication facility located in Yokkaichi, Japan, using semiconductor manufacturing equipment owned or leased by Flash Ventures. The entities within Flash Ventures purchase wafers from Toshiba at cost and then resell those wafers to the Company and Toshiba at cost plus a markup. The Company accounts for its ownership position in each Flash Ventures entity under the equity method of accounting. The Company is committed to purchase its provided three-month forecast of Flash Ventures’ NAND wafer supply, which generally equals 50% of Flash Ventures’ output. The Company is not able to estimate its total wafer purchase commitment obligation beyond its rolling three-month purchase commitment because the price is determined by reference to the future cost of producing the semiconductor wafers. In addition, the Company is committed to fund 49.9% to 50% of Flash Ventures’ costs to the extent that Flash Ventures’ revenue from wafer sales to the Company and Toshiba are insufficient to cover these costs. | |||||||||||||||||||||
Flash Partners. Flash Partners Ltd. (“Flash Partners”) was formed in fiscal year 2004. NAND flash memory products provided to the Company by this venture are manufactured by Toshiba primarily at its 300-millimeter wafer fabrication facility (“Fab 3”) located in Yokkaichi, Japan. As of December 28, 2014, the Company had notes receivable from Flash Partners of $12.5 million, denominated in Japanese yen. These notes are secured by the equipment purchased by Flash Partners with the note proceeds. The Company also has guarantee obligations to Flash Partners; see “Off-Balance Sheet Liabilities.” As of December 28, 2014 and December 29, 2013, the Company had an equity investment in Flash Partners of $167.1 million and $190.7 million, respectively, denominated in Japanese yen, adjusted by ($7.3) million and $17.3 million, respectively, of cumulative translation adjustments recorded in AOCI. The Company records basis adjustments to its equity in earnings from Flash Partners that relate to the difference between the basis in the Company’s equity investment compared to the historical basis of the assets recorded by Flash Partners. In the fiscal year ended December 28, 2014, the Company recorded no basis adjustments to its equity in earnings from Flash Partners. In the fiscal years ended December 29, 2013 and December 30, 2012, the Company recorded a basis adjustment of $1.2 million and $3.0 million, respectively, to its equity earnings from Flash Partners. Flash Partners’ share of the Fab 3 fabrication facility is fully equipped. | |||||||||||||||||||||
Flash Alliance. Flash Alliance Ltd. (“Flash Alliance”) was formed in fiscal year 2006. NAND flash memory products provided to the Company by this venture are manufactured by Toshiba primarily at its 300-millimeter wafer fabrication facility (“Fab 4”) located in Yokkaichi, Japan. As of December 28, 2014, the Company had notes receivable from Flash Alliance of $292.7 million, denominated in Japanese yen. These notes are secured by the equipment purchased by Flash Alliance with the note proceeds. The Company also has guarantee obligations to Flash Alliance; see “Off-Balance Sheet Liabilities.” As of December 28, 2014 and December 29, 2013, the Company had an equity investment in Flash Alliance of $249.5 million and $284.0 million, respectively, denominated in Japanese yen, adjusted by ($45.5) million and ($8.7) million, respectively, of cumulative translation adjustments recorded in AOCI. The Company records basis adjustments to its equity in earnings from Flash Alliance that relate to the difference between the basis in the Company’s equity investment compared to the historical basis of the assets recorded by Flash Alliance. In the fiscal year ended December 28, 2014, the Company recorded no basis adjustments to its equity in earnings from Flash Alliance. In the fiscal years ended December 29, 2013 and December 30, 2012, the Company recorded a basis adjustment of $6.5 million and $15.2 million, respectively, to its equity earnings from Flash Alliance. Flash Alliance’s share of the Fab 4 fabrication facility is fully equipped. | |||||||||||||||||||||
Flash Forward. Flash Forward Ltd. (“Flash Forward”) was formed in fiscal year 2010. NAND flash memory products provided to the Company by this venture are manufactured by Toshiba primarily at its 300-millimeter wafer fabrication facility (“Fab 5”) located in Yokkaichi, Japan. Fab 5 was built in two phases. Phase 1 of the building is fully equipped. The Phase 2 shell of Fab 5 is complete and has been partially equipped. The Phase 2 shell is currently intended to be used primarily for technology transition of the existing Flash Ventures wafer capacity to 1Y‑nanometer and 15‑nanometer technology nodes, the addition of a 3‑dimensional NAND (“3D NAND”) pilot line in the second half of 2015, and for the tools required for a planned increase in Flash Ventures wafer capacity of approximately 5%, with such wafer capacity increase expected to be completed by mid‑2015. As of December 28, 2014, the Company had notes receivable from Flash Forward of $161.9 million, denominated in Japanese yen. These notes are secured by the equipment purchased by Flash Forward with the note proceeds. The Company also has guarantee obligations to Flash Forward; see “Off-Balance Sheet Liabilities.” As of December 28, 2014 and December 29, 2013, the Company had an equity investment in Flash Forward of $79.2 million and $66.7 million, respectively, denominated in Japanese yen, adjusted by ($28.4) million and ($16.2) million, respectively, of cumulative translation adjustments recorded in AOCI. | |||||||||||||||||||||
In 2014, the Company entered into a non-binding memorandum of understanding with Toshiba related to the construction and operation of Toshiba’s “New Fab 2” fabrication facility, which is primarily intended to provide space to convert Flash Ventures’ current 2D NAND capacity to 3D NAND, with expected readiness for production in 2016. | |||||||||||||||||||||
Inventory Purchase Commitments with Flash Ventures. Purchase orders placed under Flash Ventures for up to three months are binding and cannot be canceled. These outstanding purchase commitments are included as part of the total “Noncancelable production purchase commitments” in the “Contractual Obligations” table. | |||||||||||||||||||||
Other Arrangements and Activities | |||||||||||||||||||||
Research and Development Activities. The Company participates in common R&D activities with Toshiba and is contractually committed to a minimum funding level. | |||||||||||||||||||||
Toshiba Foundry. In the first quarter of fiscal year 2013, the Company concluded its foundry arrangement with Toshiba. | |||||||||||||||||||||
Other Silicon Sources. The Company’s contracts with its other sources of silicon wafers generally require the Company to provide monthly purchase order commitments. The purchase orders placed under these arrangements are generally binding and cannot be canceled. These outstanding purchase commitments for other sources of silicon wafers are included as part of the total “Noncancelable production purchase commitments” in the “Contractual Obligations” table. | |||||||||||||||||||||
Subcontractors. In the normal course of business, the Company’s subcontractors periodically procure production materials based on the forecast the Company provides to them. The Company’s agreements with these subcontractors require that the Company reimburse them for materials that are purchased on the Company’s behalf in accordance with such forecast. Accordingly, the Company may be committed to certain costs over and above its open noncancelable purchase orders with these subcontractors. These commitments for production materials to subcontractors are included as part of the total “Noncancelable production purchase commitments” in the “Contractual Obligations” table. | |||||||||||||||||||||
Off-Balance Sheet Liabilities | |||||||||||||||||||||
Flash Ventures. Flash Ventures sells and leases back from a consortium of financial institutions (“lessors”) a portion of its tools and has entered into equipment master lease agreements of which the Company guarantees half of the total outstanding obligations. As of December 28, 2014, the total amount of the Company’s guarantee obligation of Flash Ventures’ master lease agreements, which reflects future payments and any lease adjustments, was 66.4 billion Japanese yen, or approximately $551 million, based upon the exchange rate at December 28, 2014. | |||||||||||||||||||||
The master lease agreements contain customary covenants for Japanese lease facilities. In addition to containing customary events of default related to Flash Ventures that could result in an acceleration of Flash Ventures’ obligations, the master lease agreements contain an acceleration clause for certain events of default related to the Company as guarantor, including, among other things, the Company’s failure to maintain a minimum stockholders’ equity of at least $1.51 billion. As of December 28, 2014, Flash Ventures was in compliance with all of its master lease covenants, including the stockholders’ equity covenant with the Company’s stockholders’ equity at $6.53 billion as of December 28, 2014. If the Company’s stockholders’ equity falls below $1.51 billion, or other events of default occur, Flash Ventures would become non-compliant under its master equipment lease agreements and would be required to negotiate a resolution to the non-compliance to avoid acceleration of the obligations under such agreements. Such resolution could include, among other things, supplementary security to be supplied by the Company, as guarantor, or increased interest rates or waiver fees, should the lessors decide they need additional collateral or financial consideration under the circumstances. If a non-compliance event were to occur and if the Company failed to reach a resolution, the Company could be required to pay a portion or the entire outstanding lease obligations covered by its guarantees under such Flash Ventures master lease agreements. | |||||||||||||||||||||
The following table details the Company’s portion of the remaining guarantee obligations under each of Flash Ventures’ master lease facilities (both initial and refinanced leases) in both Japanese yen (in billions) and U.S. dollar-equivalent (in thousands) based upon the exchange rate at December 28, 2014: | |||||||||||||||||||||
Master Lease Agreements by Execution Date | Lease Type | Lease Amounts | Expiration | ||||||||||||||||||
(Japanese yen) | (U.S. dollar) | ||||||||||||||||||||
Flash Partners: | |||||||||||||||||||||
Mar-12 | Refinanced | ¥ | 1.9 | $ | 16,074 | 2015 | |||||||||||||||
Mar-14 | Initial | 4.6 | 37,967 | 2019 | |||||||||||||||||
Dec-14 | Initial | 3.2 | 26,932 | 2019 | |||||||||||||||||
9.7 | 80,973 | ||||||||||||||||||||
Flash Alliance: | |||||||||||||||||||||
Mar-12 | Initial | 5.2 | 43,477 | 2017 | |||||||||||||||||
Jul-12 | Refinanced | 9.8 | 81,271 | 2017 | |||||||||||||||||
Mar-14 | Initial | 4.5 | 37,479 | 2019 | |||||||||||||||||
May-14 | Initial | 6.1 | 50,256 | 2019 | |||||||||||||||||
Aug-14 | Initial | 6.4 | 53,040 | 2019 | |||||||||||||||||
Dec-14 | Initial | 5 | 41,418 | 2019 | |||||||||||||||||
37 | 306,941 | ||||||||||||||||||||
Flash Forward: | |||||||||||||||||||||
Nov-11 | Initial | 7.7 | 63,604 | 2016 | |||||||||||||||||
Mar-12 | Initial | 5 | 41,447 | 2017 | |||||||||||||||||
Jul-12 | Initial | 2 | 16,600 | 2017 | |||||||||||||||||
Dec-14 | Initial | 5 | 41,399 | 2019 | |||||||||||||||||
19.7 | 163,050 | ||||||||||||||||||||
Total guarantee obligations | ¥ | 66.4 | $ | 550,964 | |||||||||||||||||
The following table details the breakdown of the Company’s remaining guarantee obligations between the principal amortization and the purchase option exercise price at the end of the term of the master lease agreements, in annual installments as of December 28, 2014 in U.S. dollars based upon the yen/dollar exchange rate at December 28, 2014 (in thousands): | |||||||||||||||||||||
Annual Installments | Payment of Principal Amortization | Purchase Option Exercise Price at Final Lease Terms | Guarantee Amount | ||||||||||||||||||
Year 1 | $ | 145,318 | $ | 15,073 | $ | 160,391 | |||||||||||||||
Year 2 | 120,164 | 10,236 | 130,400 | ||||||||||||||||||
Year 3 | 78,822 | 49,238 | 128,060 | ||||||||||||||||||
Year 4 | 45,157 | 8,892 | 54,049 | ||||||||||||||||||
Year 5 | 26,079 | 31,530 | 57,609 | ||||||||||||||||||
Year 6 | 2,564 | 17,891 | 20,455 | ||||||||||||||||||
Total guarantee obligations | $ | 418,104 | $ | 132,860 | $ | 550,964 | |||||||||||||||
Guarantees | |||||||||||||||||||||
Indemnification Agreements. The Company has agreed to indemnify suppliers and customers for alleged IP infringement. The scope of such indemnity varies, but may, in some instances, include indemnification for damages and expenses, including attorneys’ fees. The Company may periodically engage in litigation as a result of these indemnification obligations. The Company’s insurance policies exclude coverage for third‑party claims for patent infringement. Although the liability is not remote, the nature of the patent infringement indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to its suppliers and customers. Historically, the Company has not made any significant indemnification payments under any such agreements. As of December 28, 2014 and December 29, 2013, no amounts have been accrued in the Consolidated Financial Statements with respect to these indemnification guarantees. | |||||||||||||||||||||
As permitted under Delaware law and the Company’s certificate of incorporation and bylaws, the Company has agreements, or has assumed agreements in connection with its acquisitions, whereby it indemnifies certain of its officers and employees, and each of its directors for certain events or occurrences while the officer, employee or director is, or was, serving at the Company’s or the acquired company’s request in such capacity. The term of the indemnification period is for the officer’s, employee’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is generally unlimited; however, the Company has a Director and Officer insurance policy that may reduce its exposure and enable it to recover all or a portion of any future amounts paid. As a result of its insurance coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. The Company had no liabilities recorded for these agreements as of December 28, 2014 and December 29, 2013, as these liabilities are not reasonably estimable even though liabilities under these agreements are not remote. | |||||||||||||||||||||
The Company and Toshiba have agreed to mutually contribute to, and indemnify each other and Flash Ventures for, environmental remediation costs or liability resulting from Flash Ventures’ manufacturing operations in certain circumstances. The Company and Toshiba have also entered into a Patent Indemnification Agreement under which, in many cases, the Company will share in the expenses associated with the defense and cost of settlement associated with such claims. This agreement provides limited protection for the Company against third‑party claims that NAND flash memory products manufactured and sold by Flash Ventures infringe third‑party patents. The Company has not made any indemnification payments under any such agreements. As of December 28, 2014 and December 29, 2013, no amounts have been accrued in the Company’s Consolidated Financial Statements with respect to these indemnification guarantees. | |||||||||||||||||||||
Contractual Obligations and Off-Balance Sheet Arrangements | |||||||||||||||||||||
The following tables summarize the Company’s contractual cash obligations, commitments and off-balance sheet arrangements at December 28, 2014, and the effect such obligations are expected to have on its liquidity and cash flows in future periods. | |||||||||||||||||||||
Contractual Obligations. Contractual cash obligations and commitments as of December 28, 2014 were as follows (in thousands): | |||||||||||||||||||||
Total | 1 Year (Fiscal 2015) | 2 – 3 Years (Fiscal 2016 and 2017) | 4 – 5 Years (Fiscal 2018 and 2019) | More than 5 Years (Beyond Fiscal 2019) | |||||||||||||||||
Facility and other operating leases | $ | 65,416 | $ | 15,166 | $ | 21,062 | $ | 15,509 | $ | 13,679 | |||||||||||
Flash Partners(1) | 661,820 | (5)(6) | 206,713 | 256,768 | 157,159 | 41,180 | |||||||||||||||
Flash Alliance(1) | 1,656,655 | (5)(6) | 655,083 | 599,075 | 360,615 | 41,882 | |||||||||||||||
Flash Forward(1) | 905,736 | (5)(6) | 302,332 | 351,883 | 189,082 | 62,439 | |||||||||||||||
Toshiba research and development | 39,298 | (5) | 39,298 | — | — | — | |||||||||||||||
1.5% Notes due 2017 principal and interest(2) | 1,041,644 | 14,954 | 1,026,690 | — | — | ||||||||||||||||
0.5% Notes due 2020 principal and interest(3) | 1,545,000 | 7,500 | 15,000 | 15,000 | 1,507,500 | ||||||||||||||||
Noncancelable production purchase commitments(4) | 241,663 | (5) | 241,663 | — | — | — | |||||||||||||||
Capital equipment purchase commitments(7) | 125,856 | 125,744 | 112 | — | — | ||||||||||||||||
Operating expense commitments(8) | 43,251 | 42,911 | 340 | — | — | ||||||||||||||||
Total contractual cash obligations | $ | 6,326,339 | $ | 1,651,364 | $ | 2,270,930 | $ | 737,365 | $ | 1,666,680 | |||||||||||
(1) | Includes reimbursement for depreciation and lease payments on owned and committed equipment, funding commitments for loans and equity investments and reimbursement for other committed expenses. Funding commitments assume no additional operating lease guarantees; new operating lease guarantees can reduce funding commitments. | ||||||||||||||||||||
(2) | In August 2010, the Company issued and sold $1.0 billion in aggregate principal amount of 1.5% Notes due 2017. As of December 28, 2014, $3.2 million aggregate principal amount was converted and settled. As of January 30, 2015, the Company had received additional conversion notices for a total of $46 thousand aggregate principal amount of the 1.5% Notes due 2017, for which conversion is expected to be completed in the first quarter of fiscal year 2015. The Company will pay cash interest on the outstanding notes at an annual rate of 1.5%, payable semi-annually on August 15 and February 15 of each year until August 15, 2017. | ||||||||||||||||||||
(3) | In October 2013, the Company issued and sold $1.5 billion in aggregate principal amount of 0.5% Notes due 2020. The Company will pay cash interest on the outstanding notes at an annual rate of 0.5%, payable semi-annually on April 15 and October 15 of each year until October 15, 2020. | ||||||||||||||||||||
(4) | Includes Flash Ventures, related party vendors and other silicon source vendor purchase commitments. | ||||||||||||||||||||
(5) | Includes amounts denominated in a currency other than the U.S. dollar, which are subject to fluctuation in exchange rates prior to payment and have been translated using the exchange rate at December 28, 2014. | ||||||||||||||||||||
(6) | Excludes amounts related to the master lease agreements’ purchase option exercise price at final lease term. | ||||||||||||||||||||
(7) | Excludes $119.2 million in capital expenditures not yet paid in cash. | ||||||||||||||||||||
(8) | Excludes amounts in accounts payable and accrued liabilities not yet paid in cash. | ||||||||||||||||||||
The Company has excluded $132.3 million of unrecognized tax benefits (which includes penalties and interest) from the contractual obligation table above due to the uncertainty with respect to the timing of associated future cash flows at December 28, 2014. The Company is unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. | |||||||||||||||||||||
Off-Balance Sheet Arrangements. Off-balance sheet arrangements were as follows (in thousands): | |||||||||||||||||||||
December 28, | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Guarantee of Flash Ventures equipment leases (1) | $ | 550,964 | |||||||||||||||||||
Guarantee of asset purchase in Bangalore, India (2) | 25,483 | ||||||||||||||||||||
(1) | The Company’s guarantee obligation, net of cumulative lease payments, was 66.4 billion Japanese yen, or approximately $551 million based upon the exchange rate at December 28, 2014. | ||||||||||||||||||||
(2) | The Company is committed to purchase land and a building shell in Bangalore, India, if the seller is able to obtain necessary third‑party and government approvals by June 1, 2015. The Company’s purchase obligation was approximately $25 million based upon the exchange rate at December 28, 2014. The Company is currently making building improvements on the facility and has received a bank guarantee of up to approximately $17 million, based upon the exchange rate at December 28, 2014, from the seller to refund its building improvement expenditures if the purchase obligation expires unexercised. | ||||||||||||||||||||
The Company leases many of its office facilities and operating equipment for various terms under long-term, noncancelable operating lease agreements. The leases expire at various dates from fiscal year 2015 through fiscal year 2026. Future minimum lease payments are presented below (in thousands): | |||||||||||||||||||||
Future minimum lease payments | |||||||||||||||||||||
Fiscal year: | |||||||||||||||||||||
2015 | $ | 15,731 | |||||||||||||||||||
2016 | 11,404 | ||||||||||||||||||||
2017 | 9,804 | ||||||||||||||||||||
2018 | 8,708 | ||||||||||||||||||||
2019 and thereafter | 20,480 | ||||||||||||||||||||
Operating leases, gross | 66,127 | ||||||||||||||||||||
Sublease income to be received in the future under noncancelable subleases | (711 | ) | |||||||||||||||||||
Operating leases, net | $ | 65,416 | |||||||||||||||||||
Net rent expense was as follows (in thousands): | |||||||||||||||||||||
Fiscal years ended | |||||||||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Rent expense, net | $ | 13,022 | $ | 6,473 | $ | 6,366 | |||||||||||||||
Related_Parties_and_Strategic_
Related Parties and Strategic Investments | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ||||||||||||
Related Parties and Strategic Investments | Related Parties and Strategic Investments | |||||||||||
Flash Ventures with Toshiba. The Company owns 49.9% of each entity within Flash Ventures and accounts for its ownership position under the equity method of accounting. The Company’s obligations with respect to Flash Ventures’ master lease agreements, take-or-pay supply arrangements and R&D cost sharing are described in Note 14, “Commitments, Contingencies and Guarantees.” The financial and other support provided by the Company in all periods presented was either contractually required or the result of a joint decision to expand wafer capacity, transition to new technologies or refinance existing equipment lease commitments. Entities within Flash Ventures are VIEs. The Company evaluated whether it is the primary beneficiary of any of the entities within Flash Ventures for all periods presented and determined that it is not the primary beneficiary of any of the entities within Flash Ventures because it does not have a controlling financial interest in any of those entities. In determining whether the Company is the primary beneficiary, the Company analyzed the primary purpose and design of Flash Ventures, the activities that most significantly impact Flash Ventures’ economic performance, and whether the Company had the power to direct those activities. The Company concluded, based upon its 49.9% ownership, the voting structure and the manner in which the day-to-day operations are conducted for each entity within Flash Ventures, that the Company lacked the power to direct most of the activities that most significantly impact the economic performance of each entity within Flash Ventures. | ||||||||||||
The Company purchased NAND flash memory wafers from Flash Ventures and made prepayments, investments and loans to Flash Ventures, totaling $1.91 billion, $1.87 billion and $2.71 billion during the fiscal years ended December 28, 2014, December 29, 2013 and December 30, 2012, respectively. The Company received loan repayments from Flash Ventures of $231.4 million, $124.8 million and $511.3 million during the fiscal years ended December 28, 2014, December 29, 2013 and December 30, 2012, respectively. At December 28, 2014 and December 29, 2013, the Company had accounts payable balances due to Flash Ventures of $136.1 million and $146.0 million, respectively. | ||||||||||||
The Company’s maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate at each respective balance sheet date, as a result of its involvement with Flash Ventures, is presented below (in millions). Flash Ventures’ investments are denominated in Japanese yen and the maximum possible loss exposure excludes any cumulative translation adjustment due to revaluation from the Japanese yen to the U.S. dollar. | ||||||||||||
December 28, | December 29, | |||||||||||
2014 | 2013 | |||||||||||
Notes receivable | $ | 467 | $ | 593 | ||||||||
Equity investments | 496 | 541 | ||||||||||
Operating lease guarantees | 551 | 492 | ||||||||||
Prepayments | — | 5 | ||||||||||
Maximum estimable loss exposure | $ | 1,514 | $ | 1,631 | ||||||||
As of both December 28, 2014 and December 29, 2013, the Company’s retained earnings included undistributed earnings of Flash Ventures of $8.1 million. | ||||||||||||
The following summarizes the aggregated financial information for Flash Ventures, which includes both the Company and Toshiba’s portions (in millions). | ||||||||||||
December 28, | December 29, | |||||||||||
2014 | 2013 | |||||||||||
(Unaudited) | ||||||||||||
Current assets | $ | 494 | $ | 631 | ||||||||
Property, plant, equipment, net and other assets | 2,602 | 2,802 | ||||||||||
Total assets | $ | 3,096 | $ | 3,433 | ||||||||
Current liabilities | $ | 1,160 | $ | 1,144 | ||||||||
Long-term liabilities | 934 | 1,186 | ||||||||||
The following summarizes the aggregated financial information for Flash Ventures, which includes both the Company and Toshiba’s portions, for fiscal years 2014, 2013 and 2012, respectively (in millions). Flash Ventures’ year-ends are March 31, with quarters ending on March 31, June 30, September 30 and December 31. | ||||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
(Unaudited) | ||||||||||||
Net sales(1) | $ | 3,296 | $ | 3,589 | $ | 4,787 | ||||||
Gross profit | 18 | 31 | 8 | |||||||||
Net income (loss) | — | 28 | (15 | ) | ||||||||
(1) | Net sales represent sales to both the Company and Toshiba. | |||||||||||
Solid State Storage Solutions, Inc. Solid State Storage Solutions, Inc. (“S4”) is a venture with third parties to license IP. S4 qualifies as a VIE. The Company is considered the primary beneficiary of S4 and the Company consolidates S4 in its Consolidated Financial Statements for all periods presented. The Company considered multiple factors in determining it was the primary beneficiary, including its overall involvement with the venture, contributions and participation in operating activities. S4’s assets and liabilities were not material to the Company’s Consolidated Balance Sheets as of December 28, 2014 and December 29, 2013. |
Stockholders_Rights_Plan
Stockholders Rights Plan | 12 Months Ended |
Dec. 29, 2013 | |
Stockholders Rights Plan [Abstract] | |
Stockholders Rights Plan | Stockholders’ Rights Plan |
On September 15, 2003, the Company amended its existing stockholder rights plan to terminate the rights issued under that rights plan, and the Company adopted a new rights plan. Under the new rights plan, rights were distributed as a dividend at the rate of one right for each share of common stock of the Company held by stockholders of record as of the close of business on September 25, 2003. In November 2006, the Company extended the term of the rights plan, such that the rights will expire on April 28, 2017 unless redeemed or exchanged. Under the new rights agreement and after giving effect to the Company’s stock dividend effected on February 18, 2004, each right will, under the circumstances described below, entitle the registered holder to buy one (1) two-hundredths of a share of Series A Junior Participating Preferred Stock for $225.00. The rights will become exercisable only if a person or group acquires beneficial ownership of 15% or more of the Company’s common stock or commences a tender offer or exchange offer upon consummation of which such person or group would beneficially own 15% or more of the Company’s common stock. |
Business_Acquisition
Business Acquisition | 12 Months Ended | |||||
Dec. 28, 2014 | ||||||
Business Combinations [Abstract] | ||||||
Business Acquisition | Business Acquisitions | |||||
The Consolidated Financial Statements include the operating results of the acquired businesses described below from the respective dates of acquisition. Pro forma results of operations have not been presented as the prior-period financial results of the acquired businesses are not considered material to the Company. None of the goodwill was deductible for tax purposes. | ||||||
Fusion‑io, Inc. On July 23, 2014, the Company acquired 100% of Fusion‑io, a leading developer of flash-based, Peripheral Component Interconnect Express (“PCIe”) hardware and software solutions that enhance application performance in enterprise and hyperscale data centers. The Company expects this acquisition to accelerate its efforts to enable the flash-transformed data center, helping companies better manage increasingly heavy data workloads at a lower total cost of ownership. The total aggregate consideration to acquire Fusion-io was $1.26 billion and comprised of the following (in thousands): | ||||||
Purchase Price | ||||||
Cash consideration | $ | 1,256,502 | ||||
Fair value of assumed equity attributed to pre-combination service | 7,041 | |||||
Total purchase price | $ | 1,263,543 | ||||
The total aggregate consideration net of cash assumed was $1.07 billion. | ||||||
The Company assumed all of Fusion‑io’s outstanding unvested stock option awards with an exercise price less than or equal to the acquisition price of $11.25 per share and unvested RSU awards. The assumed unvested stock options converted into 427,388 options to purchase the Company’s common stock and the assumed unvested RSUs converted into 445,072 RSU awards. | ||||||
The weighted-average fair value of the assumed unvested stock option awards was $35.02 and was determined using the Black-Scholes-Merton valuation model and included the following assumptions: | ||||||
Dividend yield | 1.14% | |||||
Expected volatility | 0.32 | |||||
Risk-free interest rate | 1.00% | |||||
Weighted average expected life | 2.6 years | |||||
The fair value of the assumed unvested RSU awards was based on the Company’s acquisition-date share value of $94.35 per share. | ||||||
The fair value of the assumed unvested stock option and RSU awards attributed to post-combination services of $49.9 million was not included in the consideration transferred and will be recognized over the awards’ remaining requisite service periods. | ||||||
The following table presents the fair values of the tangible and intangible assets acquired and liabilities assumed from, and goodwill attributed to, the Fusion‑io acquisition as of July 23, 2014, and reflects adjustments made during the open measurement period to finalize the purchase accounting (in thousands): | ||||||
Cash | $ | 190,336 | ||||
Accounts receivable, net | 67,666 | |||||
Inventory | 76,780 | |||||
Deferred tax asset, net | 54,490 | |||||
Finite-lived intangible assets | 382,000 | |||||
IPR&D | 61,000 | |||||
Goodwill | 513,398 | |||||
Other assets | 30,498 | |||||
Other current liabilities | (94,016 | ) | ||||
Other non-current liabilities | (18,609 | ) | ||||
Total purchase price | $ | 1,263,543 | ||||
Goodwill in the table above was reduced by $29.3 million during the three months ended December 28, 2014 in connection with the finalization of the purchase accounting, due primarily to the recognition of deferred tax assets associated with the divestiture of the io‑Control product line of Fusion‑io. The divestiture of the product line was deemed immaterial to the Company’s Consolidated Financial Statements. | ||||||
The following table presents the fair value of the intangible assets acquired (in thousands): | ||||||
Weighted-Average | Fair Value | |||||
Useful Lives | ||||||
Intangible assets: | ||||||
Developed technology | 5 years | $ | 271,000 | |||
Customer relationships | 1.5 years | 57,000 | ||||
Trademark and trade names | 5 years | 54,000 | ||||
IPR&D | 61,000 | |||||
Total intangible assets acquired, excluding goodwill | $ | 443,000 | ||||
The initial weighted-average amortization period for the finite-lived intangible assets was 4.5 years. The intangible assets are amortized on a straight-line basis over the period which the economic benefits of the intangible assets are expected to be utilized. The goodwill resulted from expected synergies from the transaction, including complementary products that will enhance the Company’s overall product portfolio. | ||||||
In-process Research and Development. A portion of the Fusion‑io purchase price was allocated to acquired IPR&D. The value of the IPR&D project was determined by estimating the future net cash flows and by discounting them to their present values, which represents an established valuation technique in the high-technology computer industry. | ||||||
The net cash flows from the IPR&D project were based on estimates of revenues, costs of revenues, research and development expenses, including costs to complete the project, selling, marketing and administrative expenses, and income taxes from the project. The estimated net revenues and gross margins were based on projections of the project and were in line with industry averages. Estimated total net revenues from the project were expected to grow through fiscal year 2019 and to decline thereafter as other new technologies are expected to become available and the technology approaches the end of its life cycle. Estimated operating expenses included research and development expenses, which included costs to bring the project to technological feasibility and costs associated with ongoing maintenance after a product is released, as well as selling, marketing and administrative expenses based on historical and expected direct expenses. The Company believes the assumptions used in the valuation were reasonable at the time of the acquisition. | ||||||
The effective tax rate used in the analysis of the IPR&D project reflects the Company’s structural tax rate based on the Company’s historical operating model and related tax planning. A discount rate (the rate utilized to discount the net cash flows to their present values) of 17.5% was used in computing the present value of net cash flows for the project. The percentage of completion was determined using costs incurred by Fusion-io prior to the acquisition date compared to the estimated remaining research and development to be completed to bring the project to technological feasibility. | ||||||
Direct Acquisition-related Costs. Direct acquisition-related costs of $11.7 million during the fiscal year ended December 28, 2014 were related to legal, banker, accounting and tax fees, of which $2.6 million were expensed to General and administrative expense in the second quarter of fiscal year 2014, and $9.1 million were expensed to Restructuring and other expense in the second half of fiscal year 2014 in the Company’s Consolidated Statement of Operations. | ||||||
SMART Storage Systems. On August 22, 2013, the Company completed its acquisition of SMART Storage, a developer of enterprise solid state drives (“SSDs”). The Company expects this acquisition to enhance its enterprise storage product portfolio. The Company acquired 100% of the outstanding shares of SMART Storage through an all-cash transaction. The total aggregate consideration to acquire SMART Storage was $305.1 million and comprised of the following (in thousands): | ||||||
Purchase Price | ||||||
Cash consideration | $ | 304,982 | ||||
Fair value of assumed stock options attributed to pre-combination service | 136 | |||||
Total purchase price | $ | 305,118 | ||||
The Company assumed all outstanding unvested SMART Storage stock option awards, which were converted into 183,069 options to purchase the Company’s common stock. The fair value of these unvested stock options was determined using the Black-Scholes-Merton valuation model. | ||||||
The weighted-average fair value of the assumed unvested stock option awards was $41.15 and was determined using the Black-Scholes-Merton valuation model and included the following assumptions: | ||||||
Dividend yield | 1.60% | |||||
Expected volatility | 0.32 | |||||
Risk-free interest rate | 0.33% | |||||
Weighted average expected life | 1.4 years | |||||
The fair value of the assumed unvested stock option attributed to post-combination services of $6.8 million was not included in the consideration transferred and will be recognized over the awards’ remaining requisite service periods. | ||||||
The following table presents the fair values of the tangible and intangible assets acquired and liabilities assumed from, and goodwill attributed to, the SMART Storage acquisition as of August 22, 2013, and reflects adjustments made through the measurement period to finalize the purchase accounting (in thousands): | ||||||
Cash | $ | 1,423 | ||||
Accounts receivable, net | 7,827 | |||||
Inventory | 29,331 | |||||
Deferred taxes - current | 921 | |||||
Other current assets | 28,002 | |||||
Property and equipment | 5,734 | |||||
Deferred taxes - non-current | 3,338 | |||||
Finite-lived intangible assets | 162,200 | |||||
IPR&D | 6,300 | |||||
Goodwill | 115,594 | |||||
Other assets | 149 | |||||
Accounts payable | (11,746 | ) | ||||
Other current liabilities | (34,976 | ) | ||||
Other non-current liabilities | (8,979 | ) | ||||
Total purchase price | $ | 305,118 | ||||
An existing $25.5 million liability that SMART Storage owed SMART Holdings, (the “Seller”), was not settled prior to the closing of the acquisition of SMART Storage in accordance with the purchase agreement. The Seller was contractually obligated to refund $25.5 million of the purchase price for this unsettled liability. As of December 29, 2013, the purchase price refund receivable and unsettled liability were recorded gross in Other current assets and Other current liabilities of the acquired tangible assets and liabilities of SMART Storage, respectively, as the Company did not have the legal right to offset. The Company settled the liability to the Seller and the Seller refunded the Company for the same amount in the first quarter of fiscal year 2014. | ||||||
The following table presents the fair value of the intangible assets acquired (in thousands): | ||||||
Weighted-Average | Fair Value | |||||
Useful Lives | ||||||
Intangible assets: | ||||||
Developed technology | 4 years | $ | 146,100 | |||
Trademark and trade names | 4 years | 8,500 | ||||
Customer relationships | 2 years | 7,600 | ||||
IPR&D | 6,300 | |||||
Total intangible assets acquired, excluding goodwill | $ | 168,500 | ||||
The initial weighted-average amortization period for the finite-lived intangible assets was 3.9 years. The intangible assets are amortized on a straight-line basis over the period which the economic benefits of the intangible assets are expected to be utilized. The goodwill resulted from expected synergies from the transaction, including the Company’s supply of NAND flash and complementary products that will enhance the Company’s overall product portfolio. The Company did not record a deferred tax liability due to certain tax incentives awarded by the Malaysian government. | ||||||
Direct Acquisition-related Costs. Direct acquisition-related costs of $3.1 million during the fiscal year ended December 29, 2013 were related to legal, regulatory and accounting fees, and were expensed to General and administrative expense in the Consolidated Statement of Operations. |
Litigation
Litigation | 12 Months Ended |
Dec. 28, 2014 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Litigation | Litigation |
From time to time, the Company is involved in various litigation matters, including those described below, among others. The litigation proceedings in which the Company is involved from time to time may include matters such as IP, antitrust, commercial, labor, class action and insurance disputes. The semiconductor industry is characterized by significant litigation seeking to enforce patent and other IP rights. The Company has enforced, and likely will continue to enforce, its own IP rights through litigation and related proceedings. | |
In each case listed below where the Company is the defendant, the Company intends to vigorously defend the action. At this time, the Company does not believe it is reasonably possible that losses related to the litigation described below have occurred beyond the amounts, if any, which have been accrued. However, legal discovery and litigation is highly unpredictable and future legal developments may cause current estimates to change in future periods. | |
Patent Infringement and Antitrust Litigation With Round Rock Research LLC. On October 27, 2011, in response to infringement allegations by Round Rock Research LLC (“Round Rock”), the Company filed a lawsuit against Round Rock in the U.S. District Court for the Northern District of California. The lawsuit seeks a declaratory judgment that 12 Round Rock patents are invalid and/or not infringed by flash memory products sold by the Company. Round Rock has since withdrawn its infringement allegations as to eight of the patents. The parties filed several motions for summary judgment directed to various claims and defenses. On June 13, 2014, the Company won multiple summary judgment motions, which included a ruling that it did not infringe two of the remaining four patents based on patent exhaustion because its memories were purchased from an authorized licensee and other rulings limiting the potential damages from the other two patents. On July 3, 2014, Round Rock dismissed the two remaining patents in the case in order to appeal the court’s summary judgment rulings. The court entered final judgment on July 3, 2014. On July 23, 2014, Round Rock filed a notice of appeal. | |
On May 3, 2012, Round Rock filed an action in the U.S. District Court for the District of Delaware alleging that the Company infringed eleven patents, and subsequently filed an amended complaint alleging that the Company’s infringement was willful. The parties agreed to dismiss one patent from this Delaware lawsuit that was also being litigated in the California case described above. On January 16, 2015, the court commenced a jury trial on liability issues as to two of the asserted patents. On January 28, 2015, the jury found that although the Company infringed four of ten claims asserted in the two patents, all of the asserted claims in those two patents are invalid. On February 4, 2015, the court issued an order granting summary judgment that five of the six asserted claims of another asserted patent are invalid. | |
On March 19, 2014, the Company filed an action against Round Rock in the U.S. District Court for the District of Delaware for antitrust violations arising from Round Rock’s acquisition of patents from Micron Technology, Inc. (“Micron”) and demand for royalties that are not reasonable and non-discriminatory for alleged infringement of patents that Round Rock claims are standards-essential. The Company alleges that Round Rock violated the antitrust laws by conspiring with Micron and violating commitments that Micron made to the standards-setting organization, JEDEC Solid State Technology Association. The antitrust case has been stayed until after the January 2015 trial in the patent case. | |
On December 3, 2014, Round Rock filed another action in the U.S. District Court for the District of Delaware alleging that the Company infringed five patents, which patents are not at issue in the matters described above. The Company has not yet filed its response. | |
Ritz Camera Federal Antitrust Class Action. On June 25, 2010, Ritz Camera & Image, LLC (“Ritz”) filed a complaint in the U.S. District Court for the Northern District of California (the “District Court”), alleging that the Company violated federal antitrust law by conspiring to monopolize and monopolizing the market for flash memory products. The lawsuit captioned Ritz Camera & Image, LLC v. SanDisk Corporation, Inc. and Eliyahou Harari, former SanDisk Corporation Chief Executive Officer, purports to be on behalf of direct purchasers of flash memory products sold by the Company and joint ventures controlled by the Company from June 25, 2006 through the present. The complaint alleges that the Company created and maintained a monopoly by fraudulently obtaining patents and using them to restrain competition and by allegedly converting other patents for its competitive use. On February 24, 2011, the District Court issued an Order granting in part and denying in part the Company’s motion to dismiss, which resulted in Dr. Harari being dismissed as a defendant. On September 19, 2011, the Company filed a petition for permission to file an interlocutory appeal in the U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit”) for the portion of the District Court’s Order denying the Company’s motion to dismiss based on Ritz’s lack of standing to pursue Walker Process antitrust claims. On October 27, 2011, the District Court administratively closed the case pending the Federal Circuit’s ruling on the Company’s petition. On November 20, 2012, the Federal Circuit affirmed the District Court’s order denying SanDisk’s motion to dismiss. On December 2, 2012, the Federal Circuit issued its mandate returning the case to the District Court. On July 5, 2013, the District Court granted Ritz’s motion to substitute in Albert Giuliano, the Chapter 7 Trustee of the Ritz bankruptcy estate, as the plaintiff in this case. On October 1, 2013, the District Court granted the Trustee’s motion for leave to file a third amended complaint, which adds CPM Electronics Inc. and E.S.E. Electronics, Inc. as named plaintiffs. On September 19, 2014, the District Court granted the plaintiffs’ motion for leave to file a fourth amended complaint, which adds a cause of action for attempted monopolization and adds MFLASH as a named plaintiff. The plaintiffs have filed a motion for class certification, which is fully briefed and has been taken under submission by the District Court. On February 3, 2015, the Company filed a motion for summary judgment as to all of the plaintiffs’ asserted claims. Trial is scheduled to begin on June 22, 2015. | |
Samsung Federal Antitrust Action Against Panasonic and SD‑3C. On July 15, 2010, Samsung Electronics Co., Ltd. (“Samsung”) filed an action in the U.S. District Court for the Northern District of California (the “District Court”) alleging various claims against Panasonic Corporation and Panasonic Corporation of North America (collectively, “Panasonic”) and SD‑3C, LLC (“SD‑3C”) under federal antitrust law pursuant to Sections 1 and 2 of the Sherman Act, and under California antitrust and unfair competition laws relating to the licensing practices and operations of SD‑3C. The complaint seeks an injunction against collection of Secure Digital (“SD”) card royalties, treble damages, restitution, pre- and post-judgment interest, costs, and attorneys’ fees, as well as a declaration that Panasonic and SD‑3C engaged in patent misuse and that the patents subject to such alleged misuse should be held unenforceable. The Company is not named as a defendant in this case, but it established SD‑3C along with Panasonic and Toshiba, and the complaint includes various factual allegations concerning the Company. As a member of SD‑3C, the Company may be responsible for a portion of any monetary award. Other requested relief, including an injunction or declaration of patent misuse, could result in a loss of revenue to the Company. The defendants filed a motion to dismiss on September 24, 2010, and Samsung filed a first amended complaint on October 14, 2010. On August 25, 2011, the District Court dismissed the patent misuse claim with prejudice but gave Samsung leave to amend its other claims. Samsung filed a second amended complaint on September 16, 2011. On January 3, 2012, the District Court granted the defendants’ motion to dismiss Samsung’s complaint without leave to amend. Samsung appealed. On April 4, 2014, the U.S. Court of Appeals for the Ninth Circuit (the “Appeals Court”) issued a decision reversing the District Court’s dismissal on statute of limitations grounds and remanding the case to the District Court for further proceedings. The Appeals Court denied the defendants’ petition for rehearing and issued its mandate to send the case back to the District Court. On November 12, 2014, the defendants filed a petition for writ of certiorari with the U.S. Supreme Court, which the U.S. Supreme Court subsequently denied. Samsung filed a third amended complaint on January 20, 2015. | |
Federal Antitrust Class Action Against SanDisk, et al. On March 15, 2011, a putative class action captioned Oliver v. SD‑3C LLC, et al was filed in the U.S. District Court for the Northern District of California (the “District Court”) on behalf of a nationwide class of indirect purchasers of SD cards alleging various claims against the Company, SD‑3C, LLC (“SD‑3C”), Panasonic Corporation, Panasonic Corporation of North America, Toshiba and Toshiba America Electronic Components, Inc. under federal antitrust law pursuant to Section 1 of the Sherman Act, California antitrust and unfair competition laws, and common law. The complaint seeks an injunction of the challenged conduct, dissolution of “the cooperation agreements, joint ventures and/or cross-licenses alleged herein,” treble damages, restitution, disgorgement, pre- and post-judgment interest, costs, and attorneys’ fees. The plaintiffs allege that the Company (along with the other members of SD‑3C) conspired to artificially inflate the royalty costs associated with manufacturing SD cards in violation of federal and California antitrust and unfair competition laws, which in turn allegedly caused the plaintiffs to pay higher prices for SD cards. The allegations are similar to, and incorporate by reference the complaint in the Samsung Electronics Co., Ltd. v. Panasonic Corporation; Panasonic Corporation of North America; and SD‑3C LLC described above. On May 21, 2012, the District Court granted the defendants’ motion to dismiss the complaint with prejudice. The plaintiffs appealed. On May 14, 2014, the appeals court issued a decision reversing the District Court’s dismissal on statute of limitations grounds and remanding the case to the District Court for further proceedings. The appeals court denied the defendants’ petition for rehearing and issued its mandate to send the case back to the District Court. On December 1, 2014, the defendants filed a petition for writ of certiorari with the U.S. Supreme Court. On February 3, 2015, the plaintiffs filed a second amended complaint in the District Court. | |
Trade Secret Litigation Against SK hynix Inc., et al. On March 13, 2014, the Company filed a civil action in Santa Clara Superior Court in California against SK hynix Inc. (“Hynix”) and certain related entities for trade secret misappropriation arising from the theft of trade secrets by a former employee of the Company and the defendants’ wrongful receipt and use of such information. The lawsuit seeks damages, an injunction and other remedies. Additionally, in March 2014, SanDisk submitted a criminal complaint to the Tokyo Metropolitan Police Department against the former employee. On April 3, 2014, the former employee was indicted by the Tokyo District Public Prosecutor’s Office for theft of trade secrets. The former employee’s criminal trial was held on January 20, 2015 and January 21, 2015, and a decision by the court is expected in March 2015. | |
In June 2014, the Company moved for a preliminary injunction requiring Hynix to stop using any of the Company’s information received from the former employee and to return stolen Company material. On July 1, 2014, the court issued a preliminary injunction prohibiting Hynix from using or disclosing trade secret information that originated from materials taken by the former employee and ordering Hynix to provide certain information to the Company’s counsel to facilitate the identification of those documents taken by the former employee that are in Hynix’s possession. The order does not preclude Hynix from continuing to sell NAND flash products that it has already qualified for commercial sale. Hynix has filed a notice of appeal of the court’s preliminary injunction and also moved to stay enforcement of the order pending the appeal. On July 16, 2014, the court denied Hynix’s motion with respect to the portion of the order prohibiting use or disclosure of the trade secret information, but granted the motion to stay with respect to the other portion of the order. On November 6, 2014, Hynix removed the case to federal court. On December 8, 2014, the Company filed a motion to remand the case to state court. | |
Federal Securities Class Action Against Fusion‑io et al. Beginning on November 19, 2013, Fusion‑io and certain of its officers were named in three putative class action lawsuits filed in the United States District Court for the Northern District of California (Denenberg v. Fusion‑io, Inc. et al.; Miami Police Relief & Pension Fund v. Fusion‑io, Inc. et al.; Marriott v. Fusion‑io, Inc. et al.). Two of the complaints are allegedly brought on behalf of a class of purchasers of Fusion‑io’s common stock between August 10, 2012 and October 23, 2013, and one is brought on behalf of a purported class of purchasers between January 25, 2012 and October 23, 2013. The complaints generally allege violations of the federal securities laws arising out of alleged misstatements or omissions by the defendants during the alleged class periods. The complaints seek, among other things, compensatory damages and attorneys’ fees and costs on behalf of the putative class. On June 10, 2014, the Court consolidated the cases, appointed a lead plaintiff, and ordered the plaintiffs to file an amended consolidated complaint. On August 6, 2014, a consolidated amended complaint was filed on behalf of a putative class of purchasers of Fusion‑io common stock between October 25, 2012 and October 23, 2013, inclusive. The consolidated complaint generally alleges violations of the federal securities laws arising out of alleged misstatements or omissions by the defendants during the alleged class period and seeks, among other things, compensatory damages and attorneys’ fees and costs on behalf of the putative class. On September 22, 2014, the defendants filed a motion to dismiss, which is fully briefed and has been taken under submission by the court. |
Supplementary_Financial_Data_N
Supplementary Financial Data (Notes) | 12 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Supplementary Financial Data [Abstract] | ||||||||||||||||
Quarterly Financial Information | Supplementary Financial Data (Unaudited) | |||||||||||||||
Fiscal quarters ended | ||||||||||||||||
March 30, | June 29, | September 28, | December 28, | |||||||||||||
2014 | 2014 | 2014 | 2014 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
2014 | ||||||||||||||||
Revenue | $ | 1,511,945 | $ | 1,634,011 | $ | 1,746,491 | $ | 1,735,254 | ||||||||
Gross profit | 751,290 | 759,650 | 817,138 | 739,770 | ||||||||||||
Operating income | 425,174 | 416,656 | 387,794 | 328,310 | ||||||||||||
Net income | 268,948 | 273,946 | 262,661 | 201,891 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 1.19 | $ | 1.21 | $ | 1.18 | $ | 0.93 | ||||||||
Diluted | $ | 1.14 | $ | 1.14 | $ | 1.09 | $ | 0.86 | ||||||||
Dividends declared per share | $ | 0.225 | $ | 0.225 | $ | 0.3 | $ | 0.3 | ||||||||
Fiscal quarters ended | ||||||||||||||||
March 31, | June 30, | September 29, | December 29, | |||||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
2013 | ||||||||||||||||
Revenue | $ | 1,340,729 | $ | 1,476,263 | $ | 1,625,153 | $ | 1,727,858 | ||||||||
Gross profit | 531,516 | 676,819 | 801,993 | 857,155 | ||||||||||||
Operating income | 253,791 | 392,558 | 408,448 | 507,413 | ||||||||||||
Net income | 166,229 | 261,789 | 276,859 | 337,780 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.69 | $ | 1.08 | $ | 1.2 | $ | 1.5 | ||||||||
Diluted | $ | 0.68 | $ | 1.06 | $ | 1.18 | $ | 1.45 | ||||||||
Dividends declared per share | $ | — | $ | — | $ | 0.225 | $ | 0.225 | ||||||||
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations, Policy | Organization and Nature of Operations. SanDisk Corporation (together with its subsidiaries, the “Company”) was incorporated in the State of Delaware on June 1, 1988. The Company designs, develops, markets and manufactures data storage solutions in a variety of form factors using its flash memory, controller and firmware technologies. The Company operates in one segment, flash memory storage products. |
Basis of Presentation, Policy | Basis of Presentation. The Company’s fiscal year ends on the Sunday closest to December 31. Fiscal years 2014, 2013 and 2012 consisted of 52 weeks, while fiscal year 2015 will include 53 weeks with 14 weeks in the fourth fiscal quarter. Certain prior-period amounts have been reclassified in the footnotes to conform to the current-period presentation, including line items within other current and non-current assets and liabilities, and warranties in Note 5, “Balance Sheet Information.” For accounting and disclosure purposes, the exchange rate used to convert Japanese yen to the United States (“U.S.”) dollar for fiscal years ended December 28, 2014, December 29, 2013 and December 30, 2012 was 120.44, 104.94 and 85.99, respectively. Throughout the Notes to Consolidated Financial Statements, unless otherwise indicated, references to Net income refer to Net income attributable to common stockholders. |
Consolidation, Policy | Principles of Consolidation. The Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated. Non-controlling interest represents the minority stockholders’ proportionate share of the net assets and results of operations of the Company’s majority-owned subsidiaries. The Consolidated Financial Statements also include the results of companies acquired by the Company from the date of each acquisition. |
Use of Estimates, Policy | Use of Estimates. The preparation of Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. The estimates and judgments affect the reported amounts of assets, liabilities, revenue, expenses and related disclosure of contingent liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to customer programs and incentives, intellectual property (“IP”) claims, product returns, allowance for doubtful accounts, inventories and inventory valuation, valuation and impairments of marketable securities and investments, valuation and impairments of goodwill and long-lived assets, income taxes, warranty obligations, restructurings, contingencies, share‑based compensation and litigation. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. These estimates form the basis for making judgments about the carrying value of assets and liabilities when those values are not readily apparent from other sources. Actual results could materially differ from these estimates. |
Revenue Recognition, Policy | Revenue Recognition, Sales Returns and Allowances and Sales Incentive Programs. The Company recognizes revenue when the earnings process is complete, as evidenced by an agreement with the customer, transfer of title and acceptance, if applicable, pricing is fixed or determinable and collectability is reasonably assured. Revenue is generally recognized at the time of shipment or transfer of title for customers not eligible for price protection and/or a right of return. Sales made to distributors and retailers are generally under agreements allowing price protection and/or a right of return and, therefore, the revenue and related costs of these transactions are deferred until the retailers or distributors sell-through the merchandise to their end customer or their rights of return expire. Estimated sales returns are recorded as a reduction to revenue and deferred revenue and were not material for any period presented in the accompanying Consolidated Financial Statements. The cost of shipping products to customers is included in cost of revenue. The Company recognizes expenses related to sales commissions in the period in which the commissions are earned. |
For multiple-element arrangements that include support or software elements, the Company analyzes whether tangible products containing software and non-software components function together and therefore should be excluded from industry-specific software revenue recognition guidance. The Company allocates revenue to each element, or the software elements as a group, based on the relative selling price determined in accordance with the Company’s normal pricing and discounting practices for the specific element when sold separately for all multiple-element arrangements. Multiple-element arrangements and arrangements that include software have not been significant to the Company’s revenue and operating results. | |
Revenue from patent licensing arrangements is recognized when earned, estimable and realizable. The timing of revenue recognition is dependent on the terms of each license agreement and on the timing of sales of licensed products. The Company generally recognizes royalty revenue when it is reported to the Company by its licensees, which is generally one quarter in arrears from the licensees’ sales of licensed products. For licensing fees that are not determined by the number of licensed units sold, the Company recognizes license fee revenue on a straight-line basis over the life of the license. | |
The Company records estimated reductions of revenue for customer and distributor incentive programs and offerings, including price protection, promotions, co-op advertising and other volume-based incentives and expected returns. All sales incentive programs are recorded as an offset to revenue or deferred revenue. Marketing development programs are recorded as a reduction to revenue. | |
Trade and Other Accounts Receivable, Policy | Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable include amounts owed by geographically dispersed distributors, retailers and original equipment manufacturer (“OEM”) customers. No collateral is required. Provisions are provided for sales returns and credit losses. |
The Company estimates the collectability of its accounts receivable based on a combination of factors including, but not limited to, customer credit ratings and historical experience. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company (e.g., bankruptcy filings or substantial downgrading of credit ratings), the Company provides allowances for bad debts against amounts due to reduce the net recognized receivable to the amount it reasonably believes will be collected. | |
Income Tax, Policy | Income Taxes. The Company accounts for income taxes using an asset and liability approach, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s Consolidated Financial Statements, but have not been reflected in the Company’s taxable income. The Company must evaluate the expected realization of its deferred tax assets and determine whether a valuation allowance needs to be established or released. In determining the need for and amount of a valuation allowance, the Company assesses the likelihood that it will be able to recover its deferred tax assets using historical levels of income, estimates of future income and tax planning strategies. A valuation allowance is established to the extent that the Company does not believe it is “more likely than not” that it will generate sufficient taxable income in future periods to realize the benefit of its deferred tax assets. |
The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company recognizes the tax benefit from an uncertain tax position only if it is “more likely than not” the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. | |
Foreign Currency Transactions and Translations Policy | Foreign Currency. The Company determines the functional currency for its parent company and each of its subsidiaries by reviewing the currencies in which their respective operating activities occur. Transaction gains and losses arising from activities in other than the applicable functional currency are calculated using average exchange rates for the applicable period and reported in net income as a non-operating item in each period. Non-monetary balance sheet items denominated in a currency other than the applicable functional currency are translated using the historical rate. The Company continuously evaluates its foreign currency exposures and may continue to enter into hedges or other risk mitigating arrangements in the future. Aggregate gross foreign currency transaction gain (loss) prior to consideration of the offsetting hedges recorded to income before taxes was $3.1 million, ($3.3) million and ($2.8) million in fiscal years 2014, 2013 and 2012, respectively. |
Cash and Cash Equivalents, Policy | Cash Equivalents, Short and Long-Term Marketable Securities. Cash equivalents consist of short-term, highly liquid financial instruments with insignificant interest rate risk that are readily convertible to cash and have maturities of three months or less from the date of purchase. Marketable securities with original maturities greater than three months from purchase date and remaining maturities less than one year are classified as short-term marketable securities. Marketable securities with remaining maturities greater than one year as of the balance sheet date are classified as long-term marketable securities. Short and long-term fixed income investments consist of U.S. Treasury securities, U.S. government-sponsored agency securities, international government securities, corporate notes and bonds, asset-backed securities, mortgage-backed securities and municipal notes and bonds. The fair market value of cash equivalents at December 28, 2014 approximated their carrying value. Cost of securities sold is based on specific identification. |
In determining if and when a decline in market value below cost of these investments is other-than-temporary, the Company evaluates both quantitative and qualitative information including the market conditions, offering prices, trends of earnings, price multiples and other key measures. For fixed income securities, only the decline attributable to deteriorating credit of an other-than-temporary impairment is taken to the Consolidated Statement of Operations, unless the Company intends, or “more likely than not” will be required, to sell the security. | |
Property, Plant and Equipment, Policy | Property and Equipment. Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, ranging from two to twenty-five years, or the remaining lease term, whichever is shorter. |
Consolidation, Variable Interest Entity, Policy | Variable Interest Entities. The Company evaluates its equity method investments to determine whether any investee is a variable interest entity (“VIE”). If the Company concludes that an investee is a VIE, the Company evaluates its power to direct the activities of the investee, its obligation to absorb the expected losses of the investee and its right to receive the expected residual returns of the investee to determine whether the Company is the primary beneficiary of the investee. If the Company is the primary beneficiary of a VIE, the Company consolidates such entity and reflects the non-controlling interest of other beneficiaries of that entity. If the Company concludes that an investee is not a VIE, the Company does not consolidate the investee. |
Equity Method Investments, Policy | Equity Investments. The Company accounts for investments in equity securities of other entities, including VIEs that are not consolidated, under the cost method of accounting if investments in voting equity interests of the investee are less than 20%. The equity method of accounting is used if the Company’s investment in voting stock is greater than or equal to 20% but less than a majority. In considering the accounting method for investments less than 20%, the Company also considers other factors such as its ability to exercise significant influence over operating and financial policies of the investee. If certain factors are present, the Company could account for investments for which it has less than a 20% ownership under the equity method of accounting. |
Investments in public companies with restrictions of less than one year are classified as available-for-sale and are adjusted to their fair market value with unrealized gains and losses recorded as a component of accumulated other comprehensive income (“AOCI”). Investments in public and non-public companies are reviewed on a quarterly basis to determine if their value has been impaired and adjustments are recorded as necessary. Upon disposition of these investments, the specific identification method is used to determine the cost basis in computing realized gains or losses. Declines in value that are judged to be other-than-temporary are reported in Interest (expense) and other income (expense), net, or Cost of revenue in the accompanying Consolidated Statements of Operations. | |
Inventory, Policy | Inventories and Inventory Valuation. Inventories are stated at the lower of cost (first-in, first-out) or market. Market value is based upon an estimated average selling price reduced by estimated costs of disposal. Should actual market conditions differ from the Company’s estimates, the Company’s future results of operations could be materially affected. Reductions in inventory valuation are included in Cost of revenue in the accompanying Consolidated Statements of Operations. Inventory impairment charges, when taken, permanently establish a new cost basis and are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable. Rather, these amounts are recognized in income only if, as and when the inventory is sold. |
The Company reduces the carrying value of its inventory to a new basis for estimated obsolescence or unmarketable inventory by an amount equal to the difference between the cost of the inventory and the estimated market value based upon assumptions about future demand and market conditions, including assumptions about changes in average selling prices. If actual market conditions are less favorable than those projected by management, additional reductions in inventory valuation may be required. | |
The Company’s finished goods inventory includes consigned inventory held at customer locations as well as at third‑party fulfillment centers and subcontractors. | |
Goodwill and Intangible Assets, Policy | Other Long-Lived Assets. Intangible assets with finite useful lives and other long-lived assets are tested for impairment if certain impairment indicators are identified. The Company assesses the carrying value of long-lived assets, whenever events or changes in circumstances indicate that the carrying value of these long-lived assets may not be recoverable. Factors the Company considers important which could result in an impairment review include: (1) significant under-performance relative to the historical or projected future operating results; (2) significant changes in the manner of use of assets; (3) significant negative industry or economic trends; and (4) significant changes in the Company’s market capitalization relative to net book value. Any changes in key assumptions used by the Company, including those set forth above, could result in an impairment charge and such a charge could have a material adverse effect on the Company’s consolidated results of operations. |
Advertising Costs, Policy | Advertising Expenses. Marketing co-op development programs, where the Company receives, or will receive, an identifiable benefit (e.g., goods or services) in exchange for the amount paid to its customer and the Company can reasonably estimate the fair value of the benefit it receives for the customer incentive payment, are classified, when granted, as a marketing expense. Advertising expenses not meeting this criteria are classified as a reduction to revenue when the expense is incurred. Advertising expenses recorded as marketing expense were $27.9 million, $19.6 million and $16.2 million in fiscal years 2014, 2013 and 2012, respectively. |
Research and Development Expense, Policy | Research and Development Expenses. Research and development (“R&D”) expenditures are expensed as incurred. |
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities Derivative and Hedging Activities (Policies) | 12 Months Ended |
Dec. 28, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |
Derivatives, Policy | The Company recognizes derivative instruments as either assets or liabilities on the balance sheet at fair value and provides qualitative disclosures about objectives and strategies for using derivative instruments, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. Changes in fair value (i.e., gains or losses) of the derivatives are recorded as cost of revenue, operating expense, other income (expense), or as other comprehensive income (“OCI”). Under certain provisions and conditions within agreements with counterparties to the Company’s foreign exchange forward contracts, subject to applicable requirements, the Company has the right of set-off associated with the Company’s foreign exchange forward contracts and is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. The Company does not offset or net the fair value amounts of derivative instruments in its Consolidated Balance Sheets and separately discloses the gross fair value amounts of the derivative instruments as either assets or liabilities. |
Balance_Sheet_Information_Bala
Balance Sheet Information Balance Sheet Information (Policies) | 12 Months Ended |
Dec. 28, 2014 | |
Accounting Policies [Abstract] | |
Concentration Risk, Credit Risk, Policy | The Company assesses financing receivable credit quality through financial and operational reviews of the borrower and creditworthiness, including credit rating agency ratings, of significant investors of the borrower, where material or known. Impairments, when required for credit worthiness, are recorded in other income (expense). |
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents and Marketable Securities | The Company’s total cash, cash equivalents and marketable securities was as follows (in thousands): | |||||||||||||||||||||||||||||||
December 28, | December 29, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 809,003 | $ | 986,246 | ||||||||||||||||||||||||||||
Short-term marketable securities | 1,455,509 | 1,919,611 | ||||||||||||||||||||||||||||||
Long-term marketable securities | 2,758,475 | 3,179,471 | ||||||||||||||||||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 5,022,987 | $ | 6,085,328 | ||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments (in thousands): | |||||||||||||||||||||||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Money market funds | $ | 533,133 | $ | — | $ | — | $ | 533,133 | $ | 760,363 | $ | — | $ | — | $ | 760,363 | ||||||||||||||||
Fixed income securities | 25,162 | 4,213,599 | — | 4,238,761 | 160,194 | 4,985,059 | — | 5,145,253 | ||||||||||||||||||||||||
Derivative assets | — | 4,800 | — | 4,800 | — | 777 | — | 777 | ||||||||||||||||||||||||
Total financial assets | $ | 558,295 | $ | 4,218,399 | $ | — | $ | 4,776,694 | $ | 920,557 | $ | 4,985,836 | $ | — | $ | 5,906,393 | ||||||||||||||||
Derivative liabilities | $ | — | $ | 8,224 | $ | — | $ | 8,224 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
Total financial liabilities | $ | — | $ | 8,224 | $ | — | $ | 8,224 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented on the Company’s Consolidated Balance Sheets as follows (in thousands): | |||||||||||||||||||||||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Cash equivalents(1) | $ | 533,133 | $ | 24,777 | $ | — | $ | 557,910 | $ | 773,435 | $ | 33,099 | $ | — | $ | 806,534 | ||||||||||||||||
Short-term marketable securities | 3,327 | 1,452,182 | — | 1,455,509 | 15,090 | 1,904,521 | — | 1,919,611 | ||||||||||||||||||||||||
Long-term marketable securities | 21,835 | 2,736,640 | — | 2,758,475 | 132,032 | 3,047,439 | — | 3,179,471 | ||||||||||||||||||||||||
Other current assets | — | 4,800 | — | 4,800 | — | 777 | — | 777 | ||||||||||||||||||||||||
Total financial assets | $ | 558,295 | $ | 4,218,399 | $ | — | $ | 4,776,694 | $ | 920,557 | $ | 4,985,836 | $ | — | $ | 5,906,393 | ||||||||||||||||
Other current accrued liabilities | $ | — | $ | 8,224 | $ | — | $ | 8,224 | $ | — | $ | 45,741 | $ | — | $ | 45,741 | ||||||||||||||||
Non-current liabilities | — | — | — | — | — | 118 | — | 118 | ||||||||||||||||||||||||
Total financial liabilities | $ | — | $ | 8,224 | $ | — | $ | 8,224 | $ | — | $ | 45,859 | $ | — | $ | 45,859 | ||||||||||||||||
(1) | Cash equivalents exclude cash holdings of $251.1 million and $179.7 million included in Cash and cash equivalents on the Company’s Consolidated Balance Sheets as of December 28, 2014 and December 29, 2013, respectively. | |||||||||||||||||||||||||||||||
Available for Sale Investments | Available-for-sale investments were as follows (in thousands): | |||||||||||||||||||||||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 25,194 | $ | — | $ | (32 | ) | $ | 25,162 | $ | 160,598 | $ | 21 | $ | (424 | ) | $ | 160,195 | ||||||||||||||
U.S. government-sponsored agency securities | 7,511 | — | (18 | ) | 7,493 | 8,112 | 10 | (1 | ) | 8,121 | ||||||||||||||||||||||
International government securities | 82,033 | — | (314 | ) | 81,719 | 38,492 | 1 | (224 | ) | 38,269 | ||||||||||||||||||||||
Corporate notes and bonds | 774,869 | 325 | (2,052 | ) | 773,142 | 864,331 | 1,504 | (1,565 | ) | 864,270 | ||||||||||||||||||||||
Asset-backed securities | 171,221 | 42 | (353 | ) | 170,910 | 226,620 | 114 | (170 | ) | 226,564 | ||||||||||||||||||||||
Mortgage-backed securities | 48,378 | 6 | (173 | ) | 48,211 | 86,542 | 18 | (554 | ) | 86,006 | ||||||||||||||||||||||
Municipal notes and bonds | 3,124,189 | 9,733 | (1,798 | ) | 3,132,124 | 3,744,138 | 18,931 | (1,241 | ) | 3,761,828 | ||||||||||||||||||||||
Total available-for-sale investments | $ | 4,233,395 | $ | 10,106 | $ | (4,740 | ) | $ | 4,238,761 | $ | 5,128,833 | $ | 20,599 | $ | (4,179 | ) | $ | 5,145,253 | ||||||||||||||
Available-for-sale securities that were in an unrealized loss position | The fair value and gross unrealized losses on the available-for-sale securities that have been in a continuous unrealized loss position, aggregated by type of investment instrument, and the length of time that individual securities have been in a continuous unrealized loss position as of December 28, 2014, are summarized in the following table (in thousands). Available-for-sale securities that were in an unrealized gain position have been excluded from the table. | |||||||||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | |||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 25,162 | $ | (32 | ) | $ | — | $ | — | |||||||||||||||||||||||
U.S. government-sponsored agency securities | 7,394 | (18 | ) | — | — | |||||||||||||||||||||||||||
International government securities | 81,719 | (314 | ) | — | — | |||||||||||||||||||||||||||
Corporate notes and bonds | 586,903 | (2,046 | ) | 2,494 | (6 | ) | ||||||||||||||||||||||||||
Asset-backed securities | 137,007 | (353 | ) | — | — | |||||||||||||||||||||||||||
Mortgage-backed securities | 31,954 | (132 | ) | 9,518 | (41 | ) | ||||||||||||||||||||||||||
Municipal notes and bonds | 709,505 | (1,796 | ) | 4,453 | (2 | ) | ||||||||||||||||||||||||||
Total | $ | 1,579,644 | $ | (4,691 | ) | $ | 16,465 | $ | (49 | ) | ||||||||||||||||||||||
Gross realized gains and (losses) on sales of available-for-sale securities | The following table shows the realized gains and (losses) on sales of available-for-sale securities (in thousands): | |||||||||||||||||||||||||||||||
Fiscal years ended | ||||||||||||||||||||||||||||||||
December 28, | December 29, | December 30, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Realized gains | $ | 8,918 | $ | 4,724 | $ | 3,867 | ||||||||||||||||||||||||||
Realized losses | (1,375 | ) | (2,349 | ) | (898 | ) | ||||||||||||||||||||||||||
Net realized gains | $ | 7,543 | $ | 2,375 | $ | 2,969 | ||||||||||||||||||||||||||
Fixed income securities by contractual maturity | Fixed income securities by contractual maturity as of December 28, 2014 are shown below (in thousands). Actual maturities may differ from contractual maturities because issuers of the securities may have the right to prepay obligations or the Company has the option to demand payment. | |||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||
Due in one year or less | $ | 860,203 | $ | 861,915 | ||||||||||||||||||||||||||||
After one year through five years | 2,603,444 | 2,606,289 | ||||||||||||||||||||||||||||||
After five years through ten years | 122,637 | 122,643 | ||||||||||||||||||||||||||||||
After ten years | 647,111 | 647,914 | ||||||||||||||||||||||||||||||
Total | $ | 4,233,395 | $ | 4,238,761 | ||||||||||||||||||||||||||||
Related costs and the fair values based on quoted market prices | For those financial instruments where the carrying amounts differ from fair value, the following table (in thousands) represents the related carrying values and fair values, which are based on quoted market prices. The 1.5% Convertible Senior Notes due 2017 were categorized as Level 1 and the 0.5% Convertible Senior Notes due 2020 were categorized as Level 2, based on the frequency of trading as of December 28, 2014 and December 29, 2013. See Note 7, “Financing Arrangements,” regarding details of each convertible note presented. | |||||||||||||||||||||||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
1.5% Convertible Senior Notes due 2017 | $ | 869,645 | $ | 1,948,721 | $ | 829,792 | $ | 1,467,160 | ||||||||||||||||||||||||
0.5% Convertible Senior Notes due 2020 | 1,199,696 | 1,789,500 | 1,155,571 | 1,480,290 | ||||||||||||||||||||||||||||
Total | $ | 2,069,341 | $ | 3,738,221 | $ | 1,985,363 | $ | 2,947,450 | ||||||||||||||||||||||||
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) | ||||||||||||||||||||||||
Schedule of Derivative Instruments | As of December 28, 2014, the notional amount and unrealized loss on the effective portion of the Company’s outstanding foreign exchange forward contracts to purchase Japanese yen that are designated as cash flow hedges are shown in both Japanese yen (in billions) and U.S. dollar (in thousands), based upon the exchange rate at December 28, 2014, as follows: | |||||||||||||||||||||||
Notional Amount | Unrealized Loss | |||||||||||||||||||||||
(Japanese yen) | (U.S. dollar) | (U.S. dollar) | ||||||||||||||||||||||
Foreign exchange forward contracts | ¥ | 12.5 | $ | 103,826 | $ | (1,472 | ) | |||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Gross fair value of derivative contracts was as follows (in thousands): | |||||||||||||||||||||||
Derivative assets reported in | ||||||||||||||||||||||||
Other Current Assets | Other Non-current Assets | |||||||||||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Foreign exchange forward contracts not designated | $ | 4,800 | $ | 777 | $ | — | $ | — | ||||||||||||||||
Derivative liabilities reported in | ||||||||||||||||||||||||
Other Current Accrued Liabilities | Non-current Liabilities | |||||||||||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Foreign exchange forward contracts designated | $ | 1,472 | $ | 38,375 | $ | — | $ | 118 | ||||||||||||||||
Foreign exchange forward contracts not designated | 6,752 | 7,366 | — | — | ||||||||||||||||||||
Total derivatives | $ | 8,224 | $ | 45,741 | $ | — | $ | 118 | ||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The impact of the effective portion of designated cash flow derivative contracts on the Company’s results of operations was as follows (in thousands): | |||||||||||||||||||||||
Fiscal years ended | ||||||||||||||||||||||||
Amount of loss | Amount of loss reclassified | |||||||||||||||||||||||
recognized in OCI | from AOCI to earnings | |||||||||||||||||||||||
December 28, | December 29, | December 30, | December 28, | December 29, | December 30, | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Foreign exchange forward contracts | $ | (99 | ) | $ | (74,834 | ) | $ | (38,197 | ) | $ | (25,418 | ) | $ | (41,523 | ) | $ | (10,946 | ) | ||||||
Derivative Instruments Gain Loss Recognized In Income Ineffective Portion And Amount Excluded From Effectiveness Testing Net | The following table presents the forward points on foreign exchange contracts excluded for the purposes of cash flow hedging designation recognized in other income (expense) (in thousands): | |||||||||||||||||||||||
Fiscal years ended | ||||||||||||||||||||||||
December 28, | December 29, | December 30, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Foreign exchange forward contracts | $ | (1,134 | ) | $ | (1,201 | ) | $ | (6,630 | ) | |||||||||||||||
Effect Of Non-designated Derivative Contracts | The effect of non-designated derivative contracts on the Company’s results of operations recognized in other income (expense) was as follows (in thousands): | |||||||||||||||||||||||
Fiscal years ended | ||||||||||||||||||||||||
December 28, | December 29, | December 30, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Gain (loss) on foreign exchange forward contracts including forward point income | $ | (5,627 | ) | $ | 1,427 | $ | 9,025 | |||||||||||||||||
Gain (loss) from revaluation of foreign currency exposures hedged by foreign exchange forward contracts | 7,998 | (4,460 | ) | (3,511 | ) | |||||||||||||||||||
Balance_Sheet_Information_Tabl
Balance Sheet Information (Tables) | 12 Months Ended | ||||||||||||||
Dec. 28, 2014 | |||||||||||||||
Balance Sheet Information [Abstract] | |||||||||||||||
Accounts Receivable, net | Accounts receivable, net was as follows (in thousands): | ||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Accounts receivable | $ | 1,134,254 | $ | 904,551 | |||||||||||
Allowance for doubtful accounts | (9,622 | ) | (8,274 | ) | |||||||||||
Promotions, price protection and other activities | (282,156 | ) | (213,468 | ) | |||||||||||
Total accounts receivable, net | $ | 842,476 | $ | 682,809 | |||||||||||
Allowance For Doubtful Accounts | The activity in the allowance for doubtful accounts was as follows (in thousands): | ||||||||||||||
Fiscal years ended | |||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Balance, beginning of year | $ | 8,274 | $ | 6,627 | $ | 5,717 | |||||||||
Additions charged to costs and expenses | 857 | 2,167 | 1,452 | ||||||||||||
Allowance adjustment | 1,272 | — | — | ||||||||||||
Deductions/write-offs | (781 | ) | (520 | ) | (542 | ) | |||||||||
Balance, end of year | $ | 9,622 | $ | 8,274 | $ | 6,627 | |||||||||
Inventory | Inventory was as follows (in thousands): | ||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Raw material | $ | 369,860 | $ | 440,570 | |||||||||||
Work-in-process | 138,594 | 102,543 | |||||||||||||
Finished goods | 189,557 | 213,862 | |||||||||||||
Total inventory | $ | 698,011 | $ | 756,975 | |||||||||||
Other Current Assets | Other current assets were as follows (in thousands): | ||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Income tax receivables | $ | 18,579 | $ | 7,976 | |||||||||||
Other tax-related receivables | 84,432 | 62,784 | |||||||||||||
Other non-trade receivables | 69,033 | 37,368 | |||||||||||||
Prepaid expenses | 18,579 | 12,630 | |||||||||||||
Other current assets | 24,369 | 46,127 | |||||||||||||
Total other current assets | $ | 214,992 | $ | 166,885 | |||||||||||
Property, Plant and Equipment | Property and equipment were as follows (in thousands): | ||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Machinery and equipment | $ | 1,318,454 | $ | 1,148,150 | |||||||||||
Furniture and fixtures | 24,090 | 20,481 | |||||||||||||
Software | 191,900 | 171,733 | |||||||||||||
Buildings and building improvements | 338,412 | 261,471 | |||||||||||||
Leasehold improvements | 26,525 | 6,559 | |||||||||||||
Land | 24,427 | 24,427 | |||||||||||||
Capital land lease | 12,827 | 6,644 | |||||||||||||
Property and equipment, at cost | 1,936,635 | 1,639,465 | |||||||||||||
Accumulated depreciation and amortization | (1,212,278 | ) | (983,671 | ) | |||||||||||
Property and equipment, net | $ | 724,357 | $ | 655,794 | |||||||||||
Notes Receivable and Investments in the Flash Ventures with Toshiba | Notes receivable and investments in Flash Partners Ltd., Flash Alliance Ltd. and Flash Forward Ltd. (collectively referred to as “Flash Ventures”) were as follows (in thousands): | ||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Notes receivable, Flash Partners Ltd. | $ | 12,454 | $ | 100,057 | |||||||||||
Notes receivable, Flash Alliance Ltd. | 292,677 | 323,995 | |||||||||||||
Notes receivable, Flash Forward Ltd. | 161,906 | 169,144 | |||||||||||||
Investment in Flash Partners Ltd. | 167,102 | 190,694 | |||||||||||||
Investment in Flash Alliance Ltd. | 249,459 | 283,999 | |||||||||||||
Investment in Flash Forward Ltd. | 79,219 | 66,731 | |||||||||||||
Total notes receivable and investments in Flash Ventures | $ | 962,817 | $ | 1,134,620 | |||||||||||
Other Noncurrent Assets | Other non-current assets were as follows (in thousands): | ||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Prepaid tax on intercompany transactions | $ | 33,375 | $ | 37,747 | |||||||||||
Long-term prepaid income tax | — | 66,176 | |||||||||||||
Other non-current assets | 75,302 | 63,507 | |||||||||||||
Total other non-current assets | $ | 108,677 | $ | 167,430 | |||||||||||
Other Current Accrued Liabilities | Other current accrued liabilities were as follows (in thousands): | ||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Accrued payroll and related expenses | $ | 233,702 | $ | 227,779 | |||||||||||
Taxes payable | 74,079 | 59,618 | |||||||||||||
Derivative contract payables | 8,224 | 45,741 | |||||||||||||
Other current accrued liabilities | 190,288 | 176,594 | |||||||||||||
Total other current accrued liabilities | $ | 506,293 | $ | 509,732 | |||||||||||
Noncurrent liabilities | Non-current liabilities were as follows (in thousands): | ||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Income tax liabilities | $ | 132,320 | $ | 205,266 | |||||||||||
Deferred revenue | 31,066 | 35,346 | |||||||||||||
Deferred tax liabilities | 22,360 | 3,482 | |||||||||||||
Other non-current liabilities | 59,808 | 62,989 | |||||||||||||
Total non-current liabilities | $ | 245,554 | $ | 307,083 | |||||||||||
Schedule of Product Warranty Liability | The liability for warranty expense is included in Other current accrued liabilities and Non-current liabilities in the Consolidated Balance Sheets, and the activity was as follows (in thousands): | ||||||||||||||
Fiscal years ended | |||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Balance, beginning of year | $ | 43,624 | $ | 38,787 | $ | 26,957 | |||||||||
Additions and adjustments to cost of revenue | 21,315 | 33,400 | 33,247 | ||||||||||||
Warranty liability assumed from acquisition | 3,794 | 2,363 | — | ||||||||||||
Usage | (20,178 | ) | (30,926 | ) | (21,417 | ) | |||||||||
Balance, end of year | $ | 48,555 | $ | 43,624 | $ | 38,787 | |||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCI presented in the Consolidated Balance Sheets consists of unrealized gains and losses on available-for-sale investments, foreign currency translation and hedging activities, net of tax, for all periods presented (in thousands): | ||||||||||||||
December 28, | December 29, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Accumulated net unrealized gain (loss) on: | |||||||||||||||
Available-for-sale investments | $ | 3,359 | $ | 10,479 | |||||||||||
Foreign currency translation | (197,252 | ) | (47,440 | ) | |||||||||||
Hedging activities | (14,179 | ) | (39,498 | ) | |||||||||||
Total accumulated other comprehensive loss | $ | (208,072 | ) | $ | (76,459 | ) | |||||||||
Allocation Of Amount Of Income Tax Benefit Expense | The amount of income tax benefit allocated to the unrealized gain (loss) on available-for-sale investments and foreign currency translation activities was as follows (in thousands): | ||||||||||||||
Fiscal years ended | |||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Available-for-sale investments | $ | (3,934 | ) | $ | (3,383 | ) | $ | 3,121 | |||||||
Foreign currency translation | (4,163 | ) | (38,006 | ) | (23,791 | ) | |||||||||
Total income tax benefit allocated | $ | (8,097 | ) | $ | (41,389 | ) | $ | (20,670 | ) | ||||||
Reclassification Of Accumulated Other Comprehensive Income Amounts | The significant amounts reclassified out of each component of AOCI were as follows (in thousands): | ||||||||||||||
Fiscal years ended | |||||||||||||||
AOCI Component | December 28, | December 29, | December 30, | Statement of Operations | |||||||||||
2014 | 2013 | 2012 | Line Item | ||||||||||||
Unrealized gain on available-for-sale investments | $ | 7,543 | $ | 2,375 | $ | 2,969 | Interest (expense) and other income (expense), net | ||||||||
Tax impact | (2,677 | ) | (1,122 | ) | (1,051 | ) | Provision for income taxes | ||||||||
Unrealized gain on available-for-sale investments, net of tax | 4,866 | 1,253 | 1,918 | ||||||||||||
Unrealized holding loss on derivatives: | |||||||||||||||
Foreign exchange contracts | (24,142 | ) | (41,523 | ) | (10,946 | ) | Cost of revenue | ||||||||
Foreign exchange contracts | (1,276 | ) | — | — | Research and development | ||||||||||
Loss on cash flow hedging activities | (25,418 | ) | (41,523 | ) | (10,946 | ) | |||||||||
Total reclassifications for the period, net of tax | $ | (20,552 | ) | $ | (40,270 | ) | $ | (9,028 | ) |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | Goodwill balances and activity were as follows (in thousands): | |||||||||||||||
Fiscal years ended | ||||||||||||||||
December 28, | December 29, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Balance, beginning of year | $ | 318,111 | $ | 201,735 | ||||||||||||
Acquisition | 513,398 | 115,775 | ||||||||||||||
Adjustment | (181 | ) | 601 | |||||||||||||
Balance, end of year | $ | 831,328 | $ | 318,111 | ||||||||||||
Intangible Assets | Intangible asset balances were as follows (in thousands): | |||||||||||||||
December 28, 2014 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||
Developed product technology | $ | 568,744 | $ | (209,478 | ) | $ | 359,266 | |||||||||
Customer relationships | 64,600 | (21,009 | ) | 43,591 | ||||||||||||
Trademarks and trade names | 62,500 | (7,395 | ) | 55,105 | ||||||||||||
Acquisition-related intangible assets | 695,844 | (237,882 | ) | 457,962 | ||||||||||||
Technology licenses and patents | 102,000 | (78,611 | ) | 23,389 | ||||||||||||
Total intangible assets subject to amortization | 797,844 | (316,493 | ) | 481,351 | ||||||||||||
Acquired in-process research and development | 61,000 | — | 61,000 | |||||||||||||
Total intangible assets | $ | 858,844 | $ | (316,493 | ) | $ | 542,351 | |||||||||
December 29, 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | |||||||||||||
Developed product technology | $ | 348,385 | $ | (121,304 | ) | $ | (44,216 | ) | $ | 182,865 | ||||||
Customer relationships | 20,650 | (14,426 | ) | — | 6,224 | |||||||||||
Trademarks | 14,200 | (3,634 | ) | (2,812 | ) | 7,754 | ||||||||||
Covenants not to compete | 3,100 | (2,959 | ) | — | 141 | |||||||||||
Acquisition-related intangible assets | 386,335 | (142,323 | ) | (47,028 | ) | 196,984 | ||||||||||
Technology licenses and patents | 133,909 | (89,289 | ) | — | 44,620 | |||||||||||
Total intangible assets subject to amortization | 520,244 | (231,612 | ) | (47,028 | ) | 241,604 | ||||||||||
Acquired in-process research and development | 42,500 | — | (36,200 | ) | 6,300 | |||||||||||
Total intangible assets | $ | 562,744 | $ | (231,612 | ) | $ | (83,228 | ) | $ | 247,904 | ||||||
Estimated Amortization Expense of Intangible Assets | The annual expected amortization expense of intangible assets subject to amortization as of December 28, 2014 was as follows (in thousands): | |||||||||||||||
Acquisition-related Intangible Assets | Technology Licenses and Patents | |||||||||||||||
Fiscal year: | ||||||||||||||||
2015 | $ | 152,375 | $ | 20,056 | ||||||||||||
2016 | 109,971 | 3,333 | ||||||||||||||
2017 | 90,916 | — | ||||||||||||||
2018 | 66,260 | — | ||||||||||||||
2019 | 38,440 | — | ||||||||||||||
Total intangible assets subject to amortization | $ | 457,962 | $ | 23,389 | ||||||||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Debt Instrument | ||||||||||||
Schedule of Long-term Debt Instruments | The following table reflects the carrying values of the Company’s convertible debt (in thousands): | |||||||||||
December 28, | December 29, | |||||||||||
2014 | 2013 | |||||||||||
1.5% Notes due 2017 | $ | 996,788 | $ | 1,000,000 | ||||||||
Less: Unamortized bond discount | (127,143 | ) | (170,208 | ) | ||||||||
Net carrying amount of 1.5% Notes due 2017 | 869,645 | 829,792 | ||||||||||
0.5% Notes due 2020 | 1,500,000 | 1,500,000 | ||||||||||
Less: Unamortized bond discount | (300,304 | ) | (344,429 | ) | ||||||||
Net carrying amount of 0.5% Notes due 2020 | 1,199,696 | 1,155,571 | ||||||||||
Total convertible debt | 2,069,341 | 1,985,363 | ||||||||||
Less: Convertible short-term debt | (869,645 | ) | — | |||||||||
Convertible long-term debt | $ | 1,199,696 | $ | 1,985,363 | ||||||||
1% Sr. Convertible Notes due 2013 [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Interest cost recognized for Convertible notes | The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 1% Notes due 2013 that was settled upon maturity in the second quarter of fiscal year 2013 (in thousands): | |||||||||||
Fiscal years ended | ||||||||||||
December 29, | December 30, | |||||||||||
2013 | 2012 | |||||||||||
Contractual interest coupon | $ | 3,481 | $ | 9,280 | ||||||||
Amortization of bond issuance costs | 1,013 | 2,783 | ||||||||||
Amortization of bond discount | 21,022 | 53,599 | ||||||||||
Total interest cost recognized | $ | 25,516 | $ | 65,662 | ||||||||
1.5% Sr. Convertible Notes due 2017 [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Interest cost recognized for Convertible notes | The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 1.5% Notes due 2017 (in thousands): | |||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Contractual interest coupon | $ | 14,984 | $ | 15,000 | $ | 15,000 | ||||||
Amortization of bond issuance costs | 2,666 | 2,667 | 2,666 | |||||||||
Amortization of bond discount | 41,848 | 39,095 | 36,364 | |||||||||
Total interest cost recognized | $ | 59,498 | $ | 56,762 | $ | 54,030 | ||||||
0.5% Sr. Convertible Notes due 2020 [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Interest cost recognized for Convertible notes | The following table presents the amount of interest cost recognized relating to the contractual interest coupon, amortization of bond issuance costs and amortization of the bond discount on the liability component of the 0.5% Notes due 2020 (in thousands): | |||||||||||
Fiscal years ended | ||||||||||||
December 28, 2014 | December 29, | |||||||||||
2013 | ||||||||||||
Contractual interest coupon | $ | 7,500 | $ | 1,271 | ||||||||
Amortization of bond issuance costs | 2,551 | 439 | ||||||||||
Amortization of bond discount | 43,527 | 7,486 | ||||||||||
Total interest cost recognized | $ | 53,578 | $ | 9,196 | ||||||||
Concentration_of_Risk_and_Segm1
Concentration of Risk and Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Revenues from External Customers and Long-Lived Assets | ||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Revenue by geographic areas for fiscal years 2014, 2013 and 2012 were as follows (in thousands): | |||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 1,136,284 | $ | 877,759 | $ | 714,293 | ||||||
China | 2,026,122 | 1,887,207 | 1,195,617 | |||||||||
Taiwan | 864,461 | 958,705 | 981,801 | |||||||||
Other Asia-Pacific | 1,464,720 | 1,363,927 | 1,290,291 | |||||||||
Europe, Middle East and Africa | 814,817 | 780,079 | 642,494 | |||||||||
Other foreign countries | 321,297 | 302,326 | 228,013 | |||||||||
Total | $ | 6,627,701 | $ | 6,170,003 | $ | 5,052,509 | ||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Long-lived assets by geographic area were as follows (in thousands): | |||||||||||
December 28, | December 29, | |||||||||||
2014 | 2013 | |||||||||||
United States | $ | 314,578 | $ | 313,959 | ||||||||
Japan | 503,234 | 553,318 | ||||||||||
China | 283,533 | 299,704 | ||||||||||
Other foreign countries | 150,918 | 47,070 | ||||||||||
Total | $ | 1,252,263 | $ | 1,214,051 | ||||||||
Equity_and_ShareBased_Compensa
Equity and Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Dividends Declared | During the fiscal year ended December 28, 2014, the Company’s Board of Directors declared the following dividends: | ||||||||||||
Declaration Date | Dividend per Share | Record Date | Total Amount Declared | Payment Date | |||||||||
(In millions) | |||||||||||||
January 21, 2014 | $ | 0.225 | February 3, 2014 | $ | 51.7 | February 24, 2014 | |||||||
April 15, 2014 | 0.225 | May 5, 2014 | 52 | May 27, 2014 | |||||||||
July 15, 2014 | 0.3 | August 4, 2014 | 68.5 | August 25, 2014 | |||||||||
October 15, 2014 | 0.3 | November 3, 2014 | 67.5 | November 24, 2014 | |||||||||
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | The fair value of the Company’s stock options granted to employees, officers and non-employee board members, excluding unvested stock options assumed through acquisitions, was estimated using the following annual weighted-average assumptions: | ||||||||||||
Fiscal years ended | |||||||||||||
December 28, | December 29, | December 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividend yield | 1.14% - 1.42% | 0% - 1.65% | —% | ||||||||||
Expected volatility | 0.32 | 0.37 | 0.43 | ||||||||||
Risk-free interest rate | 1.22% | 0.74% | 0.60% | ||||||||||
Expected term | 4.4 years | 4.4 years | 4.3 years | ||||||||||
Estimated annual forfeiture rate | 8.79% | 8.51% | 8.59% | ||||||||||
Weighted-average fair value at grant date | $18.96 | $16.26 | $16.45 | ||||||||||
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The fair value of shares issued under the Company’s ESPP program was estimated using the following weighted-average assumptions: | ||||||||||||
Fiscal years ended | |||||||||||||
December 28, | December 29, | December 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividend yield | 1.14% - 1.25% | 0% - 1.65% | —% | ||||||||||
Expected volatility | 0.31 | 0.34 | 0.41 | ||||||||||
Risk-free interest rate | 0.07% | 0.11% | 0.15% | ||||||||||
Expected term | ½ year | ½ year | ½ year | ||||||||||
Weighted-average fair value at purchase date | $19.39 | $13.08 | $11.87 | ||||||||||
Stock options and stock appreciation rights | A summary of stock option and SARs activities under all of the Company’s share‑based compensation plans as of December 28, 2014 and changes during the three fiscal years ended December 28, 2014 are presented below (in thousands, except for weighted-average exercise price and remaining contractual term): | ||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||
Options and SARs outstanding as of January 1, 2012 | 17,559 | $ | 36.55 | 3.4 | $ | 257,251 | |||||||
Granted | 2,336 | 46.49 | |||||||||||
Exercised | (3,403 | ) | 21.32 | 81,622 | |||||||||
Forfeited | (469 | ) | 38.12 | ||||||||||
Expired | (597 | ) | 53.1 | ||||||||||
Options and SARs outstanding as of December 30, 2012 | 15,426 | 40.73 | 3.2 | 109,411 | |||||||||
Granted | 1,142 | 52.69 | |||||||||||
Exercised | (7,362 | ) | 35.53 | 163,992 | |||||||||
Forfeited | (433 | ) | 43.72 | ||||||||||
Expired | (2,363 | ) | 60.7 | ||||||||||
Options assumed through acquisition | 183 | 19.37 | |||||||||||
Options and SARs outstanding as of December 29, 2013 | 6,593 | 40.66 | 4.2 | 195,018 | |||||||||
Granted | 1,032 | 76.82 | |||||||||||
Exercised | (3,635 | ) | 40.54 | 163,623 | |||||||||
Forfeited | (318 | ) | 51.88 | ||||||||||
Expired | (9 | ) | 41.09 | ||||||||||
Options assumed through acquisition | 427 | 68.49 | |||||||||||
Options and SARs outstanding as of December 28, 2014 | 4,090 | 51.94 | 4.5 | 202,044 | |||||||||
Options and SARs vested and expected to vest after December 28, 2014, net of forfeitures | 3,864 | 51.23 | 4.4 | 193,621 | |||||||||
Options and SARs exercisable as of December 28, 2014 | 1,547 | 38.53 | 3.2 | 97,107 | |||||||||
Summary of the changes in RSUs outstanding | A summary of the changes in RSUs outstanding under the Company’s share‑based compensation plans during the three fiscal years ended December 28, 2014 is presented below (in thousands, except for weighted-average grant date fair value): | ||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | |||||||||||
Non-vested share units as of January 1, 2012 | 2,051 | $ | 40.22 | $ | 100,913 | ||||||||
Granted | 1,840 | 45.04 | |||||||||||
Vested | (646 | ) | 47.75 | 29,479 | |||||||||
Forfeited | (227 | ) | 42.85 | ||||||||||
Assumed through acquisition | 59 | 46.63 | |||||||||||
Non-vested share units as of December 30, 2012 | 3,077 | 43.51 | 131,622 | ||||||||||
Granted | 2,665 | 53.99 | |||||||||||
Vested | (950 | ) | 41.97 | 50,268 | |||||||||
Forfeited | (338 | ) | 46.93 | ||||||||||
Non-vested share units as of December 29, 2013 | 4,454 | 49.87 | 221,457 | ||||||||||
Granted | 2,888 | 81.62 | |||||||||||
Vested | (1,594 | ) | 51.19 | 129,945 | |||||||||
Forfeited | (606 | ) | 70.81 | ||||||||||
Assumed through acquisition | 445 | 94.35 | |||||||||||
Non-vested share units as of December 28, 2014 | 5,587 | 67.18 | 375,366 | ||||||||||
Share-based compensation expense | The following tables set forth the detailed allocation of the share‑based compensation expense (in thousands): | ||||||||||||
Fiscal years ended | |||||||||||||
December 28, | December 29, | December 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Share‑based compensation expense by caption: | |||||||||||||
Cost of revenue | $ | 14,720 | $ | 9,820 | $ | 7,459 | |||||||
Research and development | 74,842 | 51,521 | 41,009 | ||||||||||
Sales and marketing | 35,972 | 19,193 | 14,585 | ||||||||||
General and administrative | 29,779 | 19,222 | 15,390 | ||||||||||
Total share‑based compensation expense | 155,313 | 99,756 | 78,443 | ||||||||||
Total tax benefit recognized | (42,685 | ) | (28,183 | ) | (20,122 | ) | |||||||
Decrease in net income | $ | 112,628 | $ | 71,573 | $ | 58,321 | |||||||
Share‑based compensation expense by type of award: | |||||||||||||
Stock options | $ | 35,607 | $ | 32,803 | $ | 35,428 | |||||||
RSUs | 108,259 | 59,962 | 35,260 | ||||||||||
ESPP | 11,447 | 6,991 | 7,755 | ||||||||||
Total share‑based compensation expense | 155,313 | 99,756 | 78,443 | ||||||||||
Total tax benefit recognized | (42,685 | ) | (28,183 | ) | (20,122 | ) | |||||||
Decrease in net income | $ | 112,628 | $ | 71,573 | $ | 58,321 | |||||||
Fair value of options and RSUs | The total grant date fair value of options and RSUs vested during the three fiscal years ended December 28, 2014 was as follows (in thousands): | ||||||||||||
Fiscal years ended | |||||||||||||
December 28, | December 29, | December 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Options | $ | 37,986 | $ | 36,703 | $ | 37,674 | |||||||
RSUs | 81,619 | 39,885 | 24,327 | ||||||||||
Total grant date fair value of vested options and RSUs | $ | 119,605 | $ | 76,588 | $ | 62,001 | |||||||
Restructuring_and_Other_Relate1
Restructuring and Other Related Activities (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Restructuring and other | During the fiscal year ended December 28, 2014, the Company recorded the following in Restructuring and other (in thousands): | |||||||||||
Restructuring costs | $ | 12,050 | ||||||||||
Other costs | 20,941 | |||||||||||
Total restructuring and other | $ | 32,991 | ||||||||||
Restructuring and Related Costs | The following table sets forth an analysis of the components of the restructuring charge and payments made against the reserve as of December 28, 2014 (in thousands): | |||||||||||
Severance and Benefits | Other | Total | ||||||||||
Charges | ||||||||||||
Accrual balance at December 29, 2013 | $ | — | $ | — | $ | — | ||||||
Charges | 11,437 | 585 | 12,022 | |||||||||
Adjustments | 33 | (5 | ) | 28 | ||||||||
Cash payments | (6,699 | ) | (25 | ) | (6,724 | ) | ||||||
Non-cash items | — | (515 | ) | (515 | ) | |||||||
Accrual balance at December 28, 2014 | $ | 4,771 | $ | 40 | $ | 4,811 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Income Tax Contingency | ||||||||||||
Income Tax Expense Benefit Continuing Operations Text Block | The provision for income taxes consists of the following (in thousands): | |||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 388,532 | $ | 359,012 | $ | 74,258 | ||||||
State | 12,404 | 9,972 | (824 | ) | ||||||||
Foreign | 88,563 | 103,981 | 101,710 | |||||||||
489,499 | 472,965 | 175,144 | ||||||||||
Deferred: | ||||||||||||
Federal | 10,544 | 27,328 | 45,383 | |||||||||
State | (13,250 | ) | 2,645 | 1,634 | ||||||||
Foreign | (5,209 | ) | (29,446 | ) | (12,649 | ) | ||||||
(7,915 | ) | 527 | 34,368 | |||||||||
Provision for income taxes | $ | 481,584 | $ | 473,492 | $ | 209,512 | ||||||
Income Loss Before Provision For Income Taxes Text Block | Income before provision for income taxes consisted of the following (in thousands): | |||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 1,319,528 | $ | 1,436,470 | $ | 518,509 | ||||||
Foreign | 169,502 | 79,679 | 108,407 | |||||||||
Total | $ | 1,489,030 | $ | 1,516,149 | $ | 626,916 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | |||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of year | $ | 185,250 | $ | 179,522 | $ | 185,826 | ||||||
Additions: | ||||||||||||
Tax positions related to current year | 17,656 | 8,255 | 8,164 | |||||||||
Tax positions related to prior years | 14,411 | 15,938 | 942 | |||||||||
Reductions: | ||||||||||||
Tax positions related to prior years | (9,597 | ) | (1,737 | ) | (7,186 | ) | ||||||
Expiration of statute of limitations | (8,039 | ) | (7,419 | ) | (2,003 | ) | ||||||
Settlements with taxing authorities | (71,121 | ) | — | — | ||||||||
Foreign currency translation adjustment | (3,387 | ) | (9,309 | ) | (6,221 | ) | ||||||
Balance, end of year | $ | 125,173 | $ | 185,250 | $ | 179,522 | ||||||
Income Tax Expense and Effective Tax Rate | The Company’s provision for income taxes differs from the amount computed by applying the federal statutory rates to income before taxes as follows: | |||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes, net of federal benefit | 0.8 | 0.6 | 0.3 | |||||||||
Non-deductible share-based compensation expense | 1 | 0.5 | 1.3 | |||||||||
Valuation allowance | 0.8 | (0.1 | ) | 0.2 | ||||||||
Tax-exempt interest income | (0.6 | ) | (0.7 | ) | (1.9 | ) | ||||||
Foreign earnings at other than U.S. rates | (2.2 | ) | (2.9 | ) | (1.2 | ) | ||||||
Settlements with tax authorities | (1.7 | ) | — | (0.6 | ) | |||||||
Other | (0.8 | ) | (1.2 | ) | 0.3 | |||||||
Effective income tax rates | 32.3 | % | 31.2 | % | 33.4 | % | ||||||
Deferred Tax Assets Liabilities Net Text Block | Significant components of the Company’s net deferred tax assets were as follows (in thousands): | |||||||||||
December 28, | December 29, | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Deferred income on shipments to distributors and retailers and deferred revenue recognized for tax purposes | $ | 65,002 | $ | 68,117 | ||||||||
Accruals and reserves not currently deductible | 98,342 | 63,236 | ||||||||||
Depreciation and amortization not currently deductible | 96,735 | 81,245 | ||||||||||
Deductible share-based compensation | 32,679 | 28,684 | ||||||||||
Unrealized loss on investments | 10,045 | 13,620 | ||||||||||
Unrealized foreign exchange loss | 10,357 | 8,061 | ||||||||||
Net operating loss carryforwards | 196,809 | 36,422 | ||||||||||
Tax credit carryforwards | 61,134 | 37,905 | ||||||||||
Other | 22,100 | 24,667 | ||||||||||
Gross deferred tax assets | 593,203 | 361,957 | ||||||||||
Valuation allowance | (96,128 | ) | (52,105 | ) | ||||||||
Deferred tax assets, net of valuation allowance | 497,075 | 309,852 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Acquired intangible assets | (146,955 | ) | (2,701 | ) | ||||||||
Unrealized gain on investments | (2,007 | ) | (5,939 | ) | ||||||||
Unrealized foreign exchange gain | — | (3,127 | ) | |||||||||
U.S. taxes provided on unremitted earnings of foreign subsidiaries | (28,844 | ) | (28,844 | ) | ||||||||
Total deferred tax liabilities | (177,806 | ) | (40,611 | ) | ||||||||
Net deferred tax assets | $ | 319,269 | $ | 269,241 | ||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Computation of basic and diluted net income (loss) per share | The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): | |||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator for basic net income per share: | ||||||||||||
Net income | $ | 1,007,446 | $ | 1,042,657 | $ | 417,404 | ||||||
Denominator for basic net income per share: | ||||||||||||
Weighted-average common shares outstanding | 222,714 | 234,886 | 242,076 | |||||||||
Basic net income per share | $ | 4.52 | $ | 4.44 | $ | 1.72 | ||||||
Numerator for diluted net income per share: | ||||||||||||
Net income | $ | 1,007,446 | $ | 1,042,657 | $ | 417,404 | ||||||
Denominator for diluted net income per share: | ||||||||||||
Weighted-average common shares outstanding | 222,714 | 234,886 | 242,076 | |||||||||
Incremental common shares attributable to exercise of outstanding employee stock options, SARs and ESPP (assuming proceeds would be used to purchase common stock), and RSUs | 3,419 | 3,263 | 3,177 | |||||||||
1.5% Notes due 2017 | 8,261 | 2,087 | — | |||||||||
Warrants issued in conjunction with the 1.5% Notes due 2017 | 3,815 | — | — | |||||||||
Shares used in computing diluted net income per share | 238,209 | 240,236 | 245,253 | |||||||||
Diluted net income per share | $ | 4.23 | $ | 4.34 | $ | 1.7 | ||||||
Anti-dilutive shares excluded from net income per share calculation | 33,672 | 53,485 | 70,309 | |||||||||
Commitments_Contingencies_and_1
Commitments Contingencies and Guarantees (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Commitments Contingencies and Guarantees [Abstract] | |||||||||||||||||||||
Company's portion of the remaining guarantee obligations under each of Flash Ventures' master lease facilities | The following table details the Company’s portion of the remaining guarantee obligations under each of Flash Ventures’ master lease facilities (both initial and refinanced leases) in both Japanese yen (in billions) and U.S. dollar-equivalent (in thousands) based upon the exchange rate at December 28, 2014: | ||||||||||||||||||||
Master Lease Agreements by Execution Date | Lease Type | Lease Amounts | Expiration | ||||||||||||||||||
(Japanese yen) | (U.S. dollar) | ||||||||||||||||||||
Flash Partners: | |||||||||||||||||||||
Mar-12 | Refinanced | ¥ | 1.9 | $ | 16,074 | 2015 | |||||||||||||||
Mar-14 | Initial | 4.6 | 37,967 | 2019 | |||||||||||||||||
Dec-14 | Initial | 3.2 | 26,932 | 2019 | |||||||||||||||||
9.7 | 80,973 | ||||||||||||||||||||
Flash Alliance: | |||||||||||||||||||||
Mar-12 | Initial | 5.2 | 43,477 | 2017 | |||||||||||||||||
Jul-12 | Refinanced | 9.8 | 81,271 | 2017 | |||||||||||||||||
Mar-14 | Initial | 4.5 | 37,479 | 2019 | |||||||||||||||||
May-14 | Initial | 6.1 | 50,256 | 2019 | |||||||||||||||||
Aug-14 | Initial | 6.4 | 53,040 | 2019 | |||||||||||||||||
Dec-14 | Initial | 5 | 41,418 | 2019 | |||||||||||||||||
37 | 306,941 | ||||||||||||||||||||
Flash Forward: | |||||||||||||||||||||
Nov-11 | Initial | 7.7 | 63,604 | 2016 | |||||||||||||||||
Mar-12 | Initial | 5 | 41,447 | 2017 | |||||||||||||||||
Jul-12 | Initial | 2 | 16,600 | 2017 | |||||||||||||||||
Dec-14 | Initial | 5 | 41,399 | 2019 | |||||||||||||||||
19.7 | 163,050 | ||||||||||||||||||||
Total guarantee obligations | ¥ | 66.4 | $ | 550,964 | |||||||||||||||||
Remaining guarantee obligations by year | The following table details the breakdown of the Company’s remaining guarantee obligations between the principal amortization and the purchase option exercise price at the end of the term of the master lease agreements, in annual installments as of December 28, 2014 in U.S. dollars based upon the yen/dollar exchange rate at December 28, 2014 (in thousands): | ||||||||||||||||||||
Annual Installments | Payment of Principal Amortization | Purchase Option Exercise Price at Final Lease Terms | Guarantee Amount | ||||||||||||||||||
Year 1 | $ | 145,318 | $ | 15,073 | $ | 160,391 | |||||||||||||||
Year 2 | 120,164 | 10,236 | 130,400 | ||||||||||||||||||
Year 3 | 78,822 | 49,238 | 128,060 | ||||||||||||||||||
Year 4 | 45,157 | 8,892 | 54,049 | ||||||||||||||||||
Year 5 | 26,079 | 31,530 | 57,609 | ||||||||||||||||||
Year 6 | 2,564 | 17,891 | 20,455 | ||||||||||||||||||
Total guarantee obligations | $ | 418,104 | $ | 132,860 | $ | 550,964 | |||||||||||||||
Contractual Obligations | Contractual cash obligations and commitments as of December 28, 2014 were as follows (in thousands): | ||||||||||||||||||||
Total | 1 Year (Fiscal 2015) | 2 – 3 Years (Fiscal 2016 and 2017) | 4 – 5 Years (Fiscal 2018 and 2019) | More than 5 Years (Beyond Fiscal 2019) | |||||||||||||||||
Facility and other operating leases | $ | 65,416 | $ | 15,166 | $ | 21,062 | $ | 15,509 | $ | 13,679 | |||||||||||
Flash Partners(1) | 661,820 | (5)(6) | 206,713 | 256,768 | 157,159 | 41,180 | |||||||||||||||
Flash Alliance(1) | 1,656,655 | (5)(6) | 655,083 | 599,075 | 360,615 | 41,882 | |||||||||||||||
Flash Forward(1) | 905,736 | (5)(6) | 302,332 | 351,883 | 189,082 | 62,439 | |||||||||||||||
Toshiba research and development | 39,298 | (5) | 39,298 | — | — | — | |||||||||||||||
1.5% Notes due 2017 principal and interest(2) | 1,041,644 | 14,954 | 1,026,690 | — | — | ||||||||||||||||
0.5% Notes due 2020 principal and interest(3) | 1,545,000 | 7,500 | 15,000 | 15,000 | 1,507,500 | ||||||||||||||||
Noncancelable production purchase commitments(4) | 241,663 | (5) | 241,663 | — | — | — | |||||||||||||||
Capital equipment purchase commitments(7) | 125,856 | 125,744 | 112 | — | — | ||||||||||||||||
Operating expense commitments(8) | 43,251 | 42,911 | 340 | — | — | ||||||||||||||||
Total contractual cash obligations | $ | 6,326,339 | $ | 1,651,364 | $ | 2,270,930 | $ | 737,365 | $ | 1,666,680 | |||||||||||
(1) | Includes reimbursement for depreciation and lease payments on owned and committed equipment, funding commitments for loans and equity investments and reimbursement for other committed expenses. Funding commitments assume no additional operating lease guarantees; new operating lease guarantees can reduce funding commitments. | ||||||||||||||||||||
(2) | In August 2010, the Company issued and sold $1.0 billion in aggregate principal amount of 1.5% Notes due 2017. As of December 28, 2014, $3.2 million aggregate principal amount was converted and settled. As of January 30, 2015, the Company had received additional conversion notices for a total of $46 thousand aggregate principal amount of the 1.5% Notes due 2017, for which conversion is expected to be completed in the first quarter of fiscal year 2015. The Company will pay cash interest on the outstanding notes at an annual rate of 1.5%, payable semi-annually on August 15 and February 15 of each year until August 15, 2017. | ||||||||||||||||||||
(3) | In October 2013, the Company issued and sold $1.5 billion in aggregate principal amount of 0.5% Notes due 2020. The Company will pay cash interest on the outstanding notes at an annual rate of 0.5%, payable semi-annually on April 15 and October 15 of each year until October 15, 2020. | ||||||||||||||||||||
(4) | Includes Flash Ventures, related party vendors and other silicon source vendor purchase commitments. | ||||||||||||||||||||
(5) | Includes amounts denominated in a currency other than the U.S. dollar, which are subject to fluctuation in exchange rates prior to payment and have been translated using the exchange rate at December 28, 2014. | ||||||||||||||||||||
(6) | Excludes amounts related to the master lease agreements’ purchase option exercise price at final lease term. | ||||||||||||||||||||
(7) | Excludes $119.2 million in capital expenditures not yet paid in cash. | ||||||||||||||||||||
(8) | Excludes amounts in accounts payable and accrued liabilities not yet paid in cash. | ||||||||||||||||||||
Off Balance Sheet Arrangements | Off-balance sheet arrangements were as follows (in thousands): | ||||||||||||||||||||
December 28, | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Guarantee of Flash Ventures equipment leases (1) | $ | 550,964 | |||||||||||||||||||
Guarantee of asset purchase in Bangalore, India (2) | 25,483 | ||||||||||||||||||||
(1) | The Company’s guarantee obligation, net of cumulative lease payments, was 66.4 billion Japanese yen, or approximately $551 million based upon the exchange rate at December 28, 2014. | ||||||||||||||||||||
(2) | The Company is committed to purchase land and a building shell in Bangalore, India, if the seller is able to obtain necessary third‑party and government approvals by June 1, 2015. The Company’s purchase obligation was approximately $25 million based upon the exchange rate at December 28, 2014. The Company is currently making building improvements on the facility and has received a bank guarantee of up to approximately $17 million, based upon the exchange rate at December 28, 2014, from the seller to refund its building improvement expenditures if the purchase obligation expires unexercised. | ||||||||||||||||||||
Operating leases future minimum payments | The Company leases many of its office facilities and operating equipment for various terms under long-term, noncancelable operating lease agreements. The leases expire at various dates from fiscal year 2015 through fiscal year 2026. Future minimum lease payments are presented below (in thousands): | ||||||||||||||||||||
Future minimum lease payments | |||||||||||||||||||||
Fiscal year: | |||||||||||||||||||||
2015 | $ | 15,731 | |||||||||||||||||||
2016 | 11,404 | ||||||||||||||||||||
2017 | 9,804 | ||||||||||||||||||||
2018 | 8,708 | ||||||||||||||||||||
2019 and thereafter | 20,480 | ||||||||||||||||||||
Operating leases, gross | 66,127 | ||||||||||||||||||||
Sublease income to be received in the future under noncancelable subleases | (711 | ) | |||||||||||||||||||
Operating leases, net | $ | 65,416 | |||||||||||||||||||
Net rent expense | Net rent expense was as follows (in thousands): | ||||||||||||||||||||
Fiscal years ended | |||||||||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Rent expense, net | $ | 13,022 | $ | 6,473 | $ | 6,366 | |||||||||||||||
Related_Parties_and_Strategic_1
Related Parties and Strategic Investments (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ||||||||||||
Maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate | The Company’s maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate at each respective balance sheet date, as a result of its involvement with Flash Ventures, is presented below (in millions). Flash Ventures’ investments are denominated in Japanese yen and the maximum possible loss exposure excludes any cumulative translation adjustment due to revaluation from the Japanese yen to the U.S. dollar. | |||||||||||
December 28, | December 29, | |||||||||||
2014 | 2013 | |||||||||||
Notes receivable | $ | 467 | $ | 593 | ||||||||
Equity investments | 496 | 541 | ||||||||||
Operating lease guarantees | 551 | 492 | ||||||||||
Prepayments | — | 5 | ||||||||||
Maximum estimable loss exposure | $ | 1,514 | $ | 1,631 | ||||||||
Summarized Aggregate Balance Sheet Information For Joint Venture | The following summarizes the aggregated financial information for Flash Ventures, which includes both the Company and Toshiba’s portions (in millions). | |||||||||||
December 28, | December 29, | |||||||||||
2014 | 2013 | |||||||||||
(Unaudited) | ||||||||||||
Current assets | $ | 494 | $ | 631 | ||||||||
Property, plant, equipment, net and other assets | 2,602 | 2,802 | ||||||||||
Total assets | $ | 3,096 | $ | 3,433 | ||||||||
Current liabilities | $ | 1,160 | $ | 1,144 | ||||||||
Long-term liabilities | 934 | 1,186 | ||||||||||
Summarized Aggregate Income Statement Information For Joint Venture | The following summarizes the aggregated financial information for Flash Ventures, which includes both the Company and Toshiba’s portions, for fiscal years 2014, 2013 and 2012, respectively (in millions). Flash Ventures’ year-ends are March 31, with quarters ending on March 31, June 30, September 30 and December 31. | |||||||||||
Fiscal years ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
(Unaudited) | ||||||||||||
Net sales(1) | $ | 3,296 | $ | 3,589 | $ | 4,787 | ||||||
Gross profit | 18 | 31 | 8 | |||||||||
Net income (loss) | — | 28 | (15 | ) | ||||||||
(1) | Net sales represent sales to both the Company and Toshiba. |
Business_Acquisition_Tables
Business Acquisition (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||||||||
Business Combinations [Abstract] | ||||||||||||
Schedule of Business Acquisition Purchase Price | The total aggregate consideration to acquire Fusion-io was $1.26 billion and comprised of the following (in thousands): | The total aggregate consideration to acquire SMART Storage was $305.1 million and comprised of the following (in thousands): | ||||||||||
Purchase Price | Purchase Price | |||||||||||
Cash consideration | $ | 1,256,502 | Cash consideration | $ | 304,982 | |||||||
Fair value of assumed equity attributed to pre-combination service | 7,041 | Fair value of assumed stock options attributed to pre-combination service | 136 | |||||||||
Total purchase price | $ | 1,263,543 | Total purchase price | $ | 305,118 | |||||||
Fair Value Inputs of Assumed Equity Awards | The weighted-average fair value of the assumed unvested stock option awards was $35.02 and was determined using the Black-Scholes-Merton valuation model and included the following assumptions: | The weighted-average fair value of the assumed unvested stock option awards was $41.15 and was determined using the Black-Scholes-Merton valuation model and included the following assumptions: | ||||||||||
Dividend yield | 1.14% | Dividend yield | 1.60% | |||||||||
Expected volatility | 0.32 | Expected volatility | 0.32 | |||||||||
Risk-free interest rate | 1.00% | Risk-free interest rate | 0.33% | |||||||||
Weighted average expected life | 2.6 years | Weighted average expected life | 1.4 years | |||||||||
Allocation of purchase price to tangible assets acquired and liabilities assumed | The following table presents the fair values of the tangible and intangible assets acquired and liabilities assumed from, and goodwill attributed to, the Fusion‑io acquisition as of July 23, 2014, and reflects adjustments made during the open measurement period to finalize the purchase accounting (in thousands): | The following table presents the fair values of the tangible and intangible assets acquired and liabilities assumed from, and goodwill attributed to, the SMART Storage acquisition as of August 22, 2013, and reflects adjustments made through the measurement period to finalize the purchase accounting (in thousands): | ||||||||||
Cash | $ | 190,336 | Cash | $ | 1,423 | |||||||
Accounts receivable, net | 67,666 | Accounts receivable, net | 7,827 | |||||||||
Inventory | 76,780 | Inventory | 29,331 | |||||||||
Deferred tax asset, net | 54,490 | Deferred taxes - current | 921 | |||||||||
Finite-lived intangible assets | 382,000 | Other current assets | 28,002 | |||||||||
IPR&D | 61,000 | Property and equipment | 5,734 | |||||||||
Goodwill | 513,398 | Deferred taxes - non-current | 3,338 | |||||||||
Other assets | 30,498 | Finite-lived intangible assets | 162,200 | |||||||||
Other current liabilities | (94,016 | ) | IPR&D | 6,300 | ||||||||
Other non-current liabilities | (18,609 | ) | ||||||||||
Total purchase price | $ | 1,263,543 | Goodwill | 115,594 | ||||||||
Other assets | 149 | |||||||||||
Accounts payable | (11,746 | ) | ||||||||||
Other current liabilities | (34,976 | ) | ||||||||||
Other non-current liabilities | (8,979 | ) | ||||||||||
Total purchase price | $ | 305,118 | ||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table presents the fair value of the intangible assets acquired (in thousands): | The following table presents the fair value of the intangible assets acquired (in thousands): | ||||||||||
Weighted-Average | Fair Value | Weighted-Average | Fair Value | |||||||||
Useful Lives | Useful Lives | |||||||||||
Intangible assets: | Intangible assets: | |||||||||||
Developed technology | 5 years | $ | 271,000 | Developed technology | 4 years | $ | 146,100 | |||||
Customer relationships | 1.5 years | 57,000 | Trademark and trade names | 4 years | 8,500 | |||||||
Trademark and trade names | 5 years | 54,000 | Customer relationships | 2 years | 7,600 | |||||||
IPR&D | 61,000 | IPR&D | 6,300 | |||||||||
Total intangible assets acquired, excluding goodwill | $ | 443,000 | Total intangible assets acquired, excluding goodwill | $ | 168,500 | |||||||
Supplementary_Financial_Data_T
Supplementary Financial Data (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 28, 2014 | Dec. 29, 2013 | |||||||||||||||||||||||||||||||
Supplementary Financial Data [Abstract] | ||||||||||||||||||||||||||||||||
Additional Supplementary Financial Data | ||||||||||||||||||||||||||||||||
Fiscal quarters ended | Fiscal quarters ended | |||||||||||||||||||||||||||||||
March 30, | June 29, | September 28, | December 28, | March 31, | June 30, | September 29, | December 29, | |||||||||||||||||||||||||
2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||||||||||||
(In thousands, except per share data) | (In thousands, except per share data) | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Revenue | $ | 1,511,945 | $ | 1,634,011 | $ | 1,746,491 | $ | 1,735,254 | Revenue | $ | 1,340,729 | $ | 1,476,263 | $ | 1,625,153 | $ | 1,727,858 | |||||||||||||||
Gross profit | 751,290 | 759,650 | 817,138 | 739,770 | Gross profit | 531,516 | 676,819 | 801,993 | 857,155 | |||||||||||||||||||||||
Operating income | 425,174 | 416,656 | 387,794 | 328,310 | Operating income | 253,791 | 392,558 | 408,448 | 507,413 | |||||||||||||||||||||||
Net income | 268,948 | 273,946 | 262,661 | 201,891 | Net income | 166,229 | 261,789 | 276,859 | 337,780 | |||||||||||||||||||||||
Net income per share: | Net income per share: | |||||||||||||||||||||||||||||||
Basic | $ | 1.19 | $ | 1.21 | $ | 1.18 | $ | 0.93 | Basic | $ | 0.69 | $ | 1.08 | $ | 1.2 | $ | 1.5 | |||||||||||||||
Diluted | $ | 1.14 | $ | 1.14 | $ | 1.09 | $ | 0.86 | Diluted | $ | 0.68 | $ | 1.06 | $ | 1.18 | $ | 1.45 | |||||||||||||||
Dividends declared per share | $ | 0.225 | $ | 0.225 | $ | 0.3 | $ | 0.3 | Dividends declared per share | $ | — | $ | — | $ | 0.225 | $ | 0.225 | |||||||||||||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Details Textuals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Organization and Presentation | |||
Exchange rate used to translate Japanese yen to U.S. dollar | 120.44 | 104.94 | 85.99 |
Foreign Currency Transaction Gain (Loss), before Tax | $3.10 | ($3.30) | ($2.80) |
Advertising Expense | $27.90 | $19.60 | $16.20 |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements-Cash and Mkt Securities (Details 1) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
In Thousands, unless otherwise specified | ||||
Cash, Cash Equivalents and Marketable Securities [Abstract] | ||||
Cash and Cash Equivalents | $809,003 | $986,246 | $995,470 | $1,167,496 |
Short-term marketable securities | 1,455,509 | 1,919,611 | ||
Long-term marketable securities | 2,758,475 | 3,179,471 | ||
Total cash, cash equivalents and marketable securities | $5,022,987 | $6,085,328 |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements-Fin Assets and Liabilities 1 (Details 2) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Financial Liabilities measured at fair value on a recurring basis | ||
Derivative liabilities | $8,224,000 | $45,741,000 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Total financial assets | 0 | 0 |
Financial Liabilities measured at fair value on a recurring basis | ||
Total financial liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Total financial assets | 4,776,694,000 | 5,906,393,000 |
Financial Liabilities measured at fair value on a recurring basis | ||
Total financial liabilities | 8,224,000 | 45,859,000 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Total financial assets | 558,295,000 | 920,557,000 |
Financial Liabilities measured at fair value on a recurring basis | ||
Total financial liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Total financial assets | 4,218,399,000 | 4,985,836,000 |
Financial Liabilities measured at fair value on a recurring basis | ||
Total financial liabilities | 8,224,000 | 45,859,000 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Total financial assets | 0 | 0 |
Financial Liabilities measured at fair value on a recurring basis | ||
Total financial liabilities | 0 | 0 |
Derivative Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Liabilities measured at fair value on a recurring basis | ||
Derivative liabilities | 8,224,000 | 45,859,000 |
Derivative Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial Liabilities measured at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Derivative Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Liabilities measured at fair value on a recurring basis | ||
Derivative liabilities | 8,224,000 | 45,859,000 |
Derivative Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial Liabilities measured at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Money market funds | 533,133,000 | 760,363,000 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Money market funds | 533,133,000 | 760,363,000 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Money market funds | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Money market funds | 0 | 0 |
Fixed Income Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Fixed income securities | 4,238,761,000 | 5,145,253,000 |
Fixed Income Securities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Fixed income securities | 25,162,000 | 160,194,000 |
Fixed Income Securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Fixed income securities | 4,213,599,000 | 4,985,059,000 |
Fixed Income Securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Fixed income securities | 0 | 0 |
Derivative Assets [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Derivative assets | 4,800,000 | 777,000 |
Derivative Assets [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Derivative Assets [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Derivative assets | 4,800,000 | 777,000 |
Derivative Assets [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets measured at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Non-current liabilities [Member] | Foreign Exchange Forward Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total derivatives | $0 | $118,000 |
Investments_and_Fair_Value_Mea4
Investments and Fair Value Measurements-Fin Assets and Liabilities 2 (Details 3) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 | ||
Financial assets measured at fair value on a recurring basis | ||||
Short-term marketable securities | $1,455,509,000 | $1,919,611,000 | ||
Long-term marketable securities | 2,758,475,000 | 3,179,471,000 | ||
Other current assets | 214,992,000 | 166,885,000 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Total financial assets | 0 | 0 | ||
Financial Liabilities measured at fair value on a recurring basis | ||||
Total financial liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Total financial assets | 4,776,694,000 | 5,906,393,000 | ||
Financial Liabilities measured at fair value on a recurring basis | ||||
Total financial liabilities | 8,224,000 | 45,859,000 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Total financial assets | 558,295,000 | 920,557,000 | ||
Financial Liabilities measured at fair value on a recurring basis | ||||
Total financial liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Total financial assets | 4,218,399,000 | 4,985,836,000 | ||
Financial Liabilities measured at fair value on a recurring basis | ||||
Total financial liabilities | 8,224,000 | 45,859,000 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Total financial assets | 0 | 0 | ||
Financial Liabilities measured at fair value on a recurring basis | ||||
Total financial liabilities | 0 | 0 | ||
Other current accrued liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Financial Liabilities measured at fair value on a recurring basis | ||||
Other current accrued liabilities | 8,224,000 | 45,741,000 | ||
Other current accrued liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Financial Liabilities measured at fair value on a recurring basis | ||||
Other current accrued liabilities | 0 | 0 | ||
Other current accrued liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Financial Liabilities measured at fair value on a recurring basis | ||||
Other current accrued liabilities | 8,224,000 | 45,741,000 | ||
Other current accrued liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Financial Liabilities measured at fair value on a recurring basis | ||||
Other current accrued liabilities | 0 | 0 | ||
Non-current liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Financial Liabilities measured at fair value on a recurring basis | ||||
Non-current liabilities | 0 | 118,000 | ||
Non-current liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Financial Liabilities measured at fair value on a recurring basis | ||||
Non-current liabilities | 0 | 0 | ||
Non-current liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Financial Liabilities measured at fair value on a recurring basis | ||||
Non-current liabilities | 0 | 118,000 | ||
Non-current liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Financial Liabilities measured at fair value on a recurring basis | ||||
Non-current liabilities | 0 | 0 | ||
Cash equivalents [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Cash equivalents(1) | 557,910,000 | [1] | 806,534,000 | [1] |
Cash equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Cash equivalents(1) | 533,133,000 | [1] | 773,435,000 | [1] |
Cash equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Cash equivalents(1) | 24,777,000 | [1] | 33,099,000 | [1] |
Cash equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Cash equivalents(1) | 0 | [1] | 0 | [1] |
Short-term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Short-term marketable securities | 1,455,509,000 | 1,919,611,000 | ||
Short-term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Short-term marketable securities | 3,327,000 | 15,090,000 | ||
Short-term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Short-term marketable securities | 1,452,182,000 | 1,904,521,000 | ||
Short-term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Short-term marketable securities | 0 | 0 | ||
Long term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Long-term marketable securities | 2,758,475,000 | 3,179,471,000 | ||
Long term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Long-term marketable securities | 21,835,000 | 132,032,000 | ||
Long term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Long-term marketable securities | 2,736,640,000 | 3,047,439,000 | ||
Long term marketable securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Long-term marketable securities | 0 | 0 | ||
Other current assets [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Other current assets | 4,800,000 | 777,000 | ||
Other current assets [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Other current assets | 0 | 0 | ||
Other current assets [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Other current assets | 4,800,000 | 777,000 | ||
Other current assets [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Other current assets | $0 | $0 | ||
[1] | Cash equivalents exclude cash holdings of $251.1 million and $179.7 million included in Cash and cash equivalents on the Companybs Consolidated Balance Sheets as of DecemberB 28, 2014 and DecemberB 29, 2013, respectively. |
Investments_and_Fair_Value_Mea5
Investments and Fair Value Measurements-AFS Investments (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Fixed Income Securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | $4,233,395 | $5,128,833 |
Gross Unrealized Gain | 10,106 | 20,599 |
Gross Unrealized Loss | -4,740 | -4,179 |
Fair Value | 4,238,761 | 5,145,253 |
U.S. Treasury securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 25,194 | 160,598 |
Gross Unrealized Gain | 0 | 21 |
Gross Unrealized Loss | -32 | -424 |
Fair Value | 25,162 | 160,195 |
U.S. Government-sponsored agency securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 7,511 | 8,112 |
Gross Unrealized Gain | 0 | 10 |
Gross Unrealized Loss | -18 | -1 |
Fair Value | 7,493 | 8,121 |
International Government Securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 82,033 | 38,492 |
Gross Unrealized Gain | 0 | 1 |
Gross Unrealized Loss | -314 | -224 |
Fair Value | 81,719 | 38,269 |
Corporate notes and bonds [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 774,869 | 864,331 |
Gross Unrealized Gain | 325 | 1,504 |
Gross Unrealized Loss | -2,052 | -1,565 |
Fair Value | 773,142 | 864,270 |
Asset-backed securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 171,221 | 226,620 |
Gross Unrealized Gain | 42 | 114 |
Gross Unrealized Loss | -353 | -170 |
Fair Value | 170,910 | 226,564 |
Mortgage-backed securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 48,378 | 86,542 |
Gross Unrealized Gain | 6 | 18 |
Gross Unrealized Loss | -173 | -554 |
Fair Value | 48,211 | 86,006 |
Municipal notes and bonds [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 3,124,189 | 3,744,138 |
Gross Unrealized Gain | 9,733 | 18,931 |
Gross Unrealized Loss | -1,798 | -1,241 |
Fair Value | $3,132,124 | $3,761,828 |
Investments_and_Fair_Value_Mea6
Investments and Fair Value Measurements-AFS FV and Unrealized Losses (Details 5) (USD $) | 12 Months Ended |
Dec. 28, 2014 | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | $1,579,644,000 |
Less than 12 months, Gross Unrealized Loss | -4,691,000 |
Greater than 12 months, Fair Value | 16,465,000 |
Greater than 12 months, Gross Unrealized Loss | -49,000 |
U.S. Treasury securities [Member] | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | 25,162,000 |
Less than 12 months, Gross Unrealized Loss | -32,000 |
Greater than 12 months, Fair Value | 0 |
Greater than 12 months, Gross Unrealized Loss | 0 |
U.S. Government-sponsored agency securities [Member] | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | 7,394,000 |
Less than 12 months, Gross Unrealized Loss | -18,000 |
Greater than 12 months, Fair Value | 0 |
Greater than 12 months, Gross Unrealized Loss | 0 |
International Government Securities [Member] | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | 81,719,000 |
Less than 12 months, Gross Unrealized Loss | -314,000 |
Greater than 12 months, Fair Value | 0 |
Greater than 12 months, Gross Unrealized Loss | 0 |
Corporate notes and bonds [Member] | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | 586,903,000 |
Less than 12 months, Gross Unrealized Loss | -2,046,000 |
Greater than 12 months, Fair Value | 2,494,000 |
Greater than 12 months, Gross Unrealized Loss | -6,000 |
Asset-backed securities [Member] | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | 137,007,000 |
Less than 12 months, Gross Unrealized Loss | -353,000 |
Greater than 12 months, Fair Value | 0 |
Greater than 12 months, Gross Unrealized Loss | 0 |
Mortgage-backed Securities [Member] | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | 31,954,000 |
Less than 12 months, Gross Unrealized Loss | -132,000 |
Greater than 12 months, Fair Value | 9,518,000 |
Greater than 12 months, Gross Unrealized Loss | -41,000 |
Municipal notes and bonds [Member] | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | 709,505,000 |
Less than 12 months, Gross Unrealized Loss | -1,796,000 |
Greater than 12 months, Fair Value | 4,453,000 |
Greater than 12 months, Gross Unrealized Loss | ($2,000) |
Investments_and_Fair_Value_Mea7
Investments and Fair Value Measurements-AFS Realized Gains and Losses (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Gross realized gains and (losses) on sales of available-for-sale securities | |||
Realized gains | $8,918 | $4,724 | $3,867 |
Realized losses | -1,375 | -2,349 | -898 |
Net realized gains | $7,543 | $2,375 | $2,969 |
Investments_and_Fair_Value_Mea8
Investments and Fair Value Measurements-Fixed Income Maturities (Details 7) (Fixed Income Securities [Member], USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Fixed Income Securities [Member] | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Due in one year or less | $860,203 | |
After one year through five years | 2,603,444 | |
After five years through ten years | 122,637 | |
After ten years | 647,111 | |
Total, Amortized Cost | 4,233,395 | 5,128,833 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | 861,915 | |
After one year through five years | 2,606,289 | |
After five years through ten years | 122,643 | |
After ten years | 647,914 | |
Total, Fair Value | $4,238,761 | $5,145,253 |
Investments_and_Fair_Value_Mea9
Investments and Fair Value Measurements-Debt Instrument FV (Details 8) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Related costs and the fair values based on quoted market prices | ||
Convertible debt, carrying value | $2,069,341 | $1,985,363 |
Convertible Debt [Member] | ||
Related costs and the fair values based on quoted market prices | ||
Convertible debt, carrying value | 2,069,341 | 1,985,363 |
Convertible debt, fair value | 3,738,221 | 2,947,450 |
1.5% Sr. Convertible Notes due 2017 [Member] | ||
Related costs and the fair values based on quoted market prices | ||
Convertible debt, carrying value | 869,645 | 829,792 |
Convertible debt, fair value | 1,948,721 | 1,467,160 |
0.5% Sr. Convertible Notes due 2020 [Member] | ||
Related costs and the fair values based on quoted market prices | ||
Convertible debt, carrying value | 1,199,696 | 1,155,571 |
Convertible debt, fair value | $1,789,500 | $1,480,290 |
Recovered_Sheet1
Investments and Fair Value Measurements (Details Textual) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash | $251,100,000 | $179,700,000 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | $0 | $0 |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities Derivatives and Hedging Activities - Outstanding Designated Forward Contracts (Details 1) (Realized within twelve months [Member], Foreign Exchange Forward Contract [Member]) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 28, 2014 |
USD ($) | JPY (¥) | |
Derivatives and Hedging Activities | ||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | ($1,472) | |
Cash Flow Hedge | ||
Foreign exchange forward contracts | $103,826 | ¥ 12,500,000 |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities - Derivative Contracts (Details 2) (Foreign Exchange Forward Contract [Member], USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Other current assets [Member] | ||
Non-designated cash flow hedges, assets | ||
Foreign exchange forward contracts not designated | $4,800,000 | $777,000 |
Other non-current assets [Member] | ||
Non-designated cash flow hedges, assets | ||
Foreign exchange forward contracts not designated | 0 | 0 |
Other current accrued liabilities [Member] | ||
Designated cash flow hedges, liabilities | ||
Foreign exchange forward contracts designated | 1,472,000 | 38,375,000 |
Non-designated cash flow hedges, liabilities | ||
Foreign exchange forward contracts not designated | 6,752,000 | 7,366,000 |
Total derivatives, liabilities | 8,224,000 | 45,741,000 |
Non-current liabilities [Member] | ||
Designated cash flow hedges, liabilities | ||
Foreign exchange forward contracts designated | 0 | 118,000 |
Non-designated cash flow hedges, liabilities | ||
Foreign exchange forward contracts not designated | 0 | 0 |
Total derivatives, liabilities | $0 | $118,000 |
Derivatives_and_Hedging_Activi5
Derivatives and Hedging Activities - Impact on Earnings (Details 3) (Foreign Exchange Forward Contract [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Foreign Exchange Forward Contract [Member] | |||
Effective portion of designated cash flow derivative contracts | |||
Amount of loss recognized in OCI | ($99) | ($74,834) | ($38,197) |
Amount of loss reclassified from AOCI to earnings | ($25,418) | ($41,523) | ($10,946) |
Derivatives_and_Hedging_Activi6
Derivatives and Hedging Activities - Ineffective Portion (Details 4) (Foreign Exchange Forward Contract [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Foreign Exchange Forward Contract [Member] | |||
Derivative Instruments, Gain (Loss) | |||
Foreign exchange forward contracts | ($1,134) | ($1,201) | ($6,630) |
Derivatives_and_Hedging_Activi7
Derivatives and Hedging Activities - Effect of Non-designated Contracts (Details 5) (Foreign Exchange Forward Contract [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Foreign Exchange Forward Contract [Member] | |||
Effect of nondesignated derivative contracts | |||
Gain (loss) on foreign exchange forward contracts including forward point income | ($5,627) | $1,427 | $9,025 |
Gain (loss) from revaluation of foreign currency exposures hedged by foreign exchange forward contracts | $7,998 | ($4,460) | ($3,511) |
Derivatives_and_Hedging_Activi8
Derivatives and Hedging Activities Derivatives and Hedging Activities - Cash Flow Hedge (Details Textuals) (USD $) | Dec. 28, 2014 |
In Thousands, unless otherwise specified | |
Cash Flow Hedge Buy [Member] | |
Cash Flow Hedge | |
Notional amount of foreign exchange forward contracts | $182,400 |
Cash Flow Hedge Sell [Member] | |
Cash Flow Hedge | |
Notional amount of foreign exchange forward contracts | $135,200 |
Derivatives_and_Hedging_Activi9
Derivatives and Hedging Activities Derivatives and Hedging Activities - Gains (Losses) and Netting Activities (Details Textuals) (USD $) | 12 Months Ended | |
Dec. 28, 2014 | Dec. 29, 2013 | |
Derivative, Netting Activities | ||
Derivative Asset, Subject to Netting Arrangement, Net | $2,800,000 | |
Derivative Liability, Subject to Netting Arrangement, Net | 6,300,000 | 45,200,000 |
Realized within twelve months [Member] | Foreign Exchange Forward Contract [Member] | ||
Derivatives and Hedging Activities | ||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | ($1,472,000) |
Balance_Sheet_InformationRecei
Balance Sheet Information-Receivables (Details 1) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
In Thousands, unless otherwise specified | ||||
Accounts Receivable, net | ||||
Accounts receivable | $1,134,254 | $904,551 | ||
Allowance for doubtful accounts | -9,622 | -8,274 | -6,627 | -5,717 |
Promotions, price protection and other activities | -282,156 | -213,468 | ||
Total accounts receivable, net | $842,476 | $682,809 |
Balance_Sheet_InformationAR_Al
Balance Sheet Information-AR Allowance (Details 1A) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Accounts, Notes, Loans and Financing Receivable | |||
Balance, beginning of year | $8,274,000 | $6,627,000 | $5,717,000 |
Additions charged to costs and expenses | 857,000 | 2,167,000 | 1,452,000 |
Allowance adjustment | 1,272,000 | 0 | 0 |
Deductions/write-offs | -781,000 | -520,000 | -542,000 |
Balance, end of year | $9,622,000 | $8,274,000 | $6,627,000 |
Balance_Sheet_InformationInven
Balance Sheet Information-Inventory (Details 2) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Inventory | ||
Raw material | $369,860 | $440,570 |
Work-in-process | 138,594 | 102,543 |
Finished goods | 189,557 | 213,862 |
Total inventory | $698,011 | $756,975 |
Balance_Sheet_InformationOther
Balance Sheet Information-Other Assets (Details 3) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Other Current Assets | ||
Income tax receivables | $18,579,000 | $7,976,000 |
Other tax-related receivables | 84,432,000 | 62,784,000 |
Other non-trade receivables | 69,033,000 | 37,368,000 |
Prepaid expenses | 18,579,000 | 12,630,000 |
Other current assets | 24,369,000 | 46,127,000 |
Total other current assets | 214,992,000 | 166,885,000 |
Other Assets, Noncurrent | ||
Prepaid tax on intercompany transactions | 33,375,000 | 37,747,000 |
Long-term prepaid income tax | 0 | 66,176,000 |
Other non-current assets | 75,302,000 | 63,507,000 |
Total other non-current assets | $108,677,000 | $167,430,000 |
Balance_Sheet_InformationPPE_D
Balance Sheet Information-PPE (Details 3A) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment | ||
Machinery and equipment | $1,318,454 | $1,148,150 |
Furniture and fixtures | 24,090 | 20,481 |
Software | 191,900 | 171,733 |
Buildings and building improvements | 338,412 | 261,471 |
Leasehold improvements | 26,525 | 6,559 |
Land | 24,427 | 24,427 |
Capital land lease | 12,827 | 6,644 |
Property and equipment, at cost | 1,936,635 | 1,639,465 |
Accumulated depreciation and amortization | -1,212,278 | -983,671 |
Property and equipment, net | $724,357 | $655,794 |
Balance_Sheet_InformationEquit
Balance Sheet Information-Equity Investments (Details 4) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable | ||
Related Party Transactions | $962,817 | $1,134,620 |
Flash Partners Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable | ||
Notes Receivable | 12,454 | 100,057 |
Investments | 167,102 | 190,694 |
Flash Alliance Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable | ||
Notes Receivable | 292,677 | 323,995 |
Investments | 249,459 | 283,999 |
Flash Forward Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable | ||
Notes Receivable | 161,906 | 169,144 |
Investments | 79,219 | 66,731 |
Flash Ventures [Member] | ||
Accounts, Notes, Loans and Financing Receivable | ||
Related Party Transactions | $962,817 | $1,134,620 |
Balance_Sheet_InformationLiabi
Balance Sheet Information-Liabilities (Details 5) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Accrued Liabilities | ||
Accrued payroll and related expenses | $233,702 | $227,779 |
Taxes payable | 74,079 | 59,618 |
Derivative contract payables | 8,224 | 45,741 |
Other current accrued liabilities | 190,288 | 176,594 |
Total other current accrued liabilities | 506,293 | 509,732 |
Non-current liabilities | ||
Income tax liabilities | 132,320 | 205,266 |
Deferred revenue | 31,066 | 35,346 |
Deferred tax liabilities | 22,360 | 3,482 |
Other non-current liabilities | 59,808 | 62,989 |
Total non-current liabilities | $245,554 | $307,083 |
Balance_Sheet_InformationWarra
Balance Sheet Information-Warranty (Details 6) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance, beginning of year | $43,624,000 | $38,787,000 | $26,957,000 |
Additions and adjustments to cost of revenue | 21,315,000 | 33,400,000 | 33,247,000 |
Warranty liability assumed from acquisition | 3,794,000 | 2,363,000 | 0 |
Usage | -20,178,000 | -30,926,000 | -21,417,000 |
Balance, end of year | $48,555,000 | $43,624,000 | $38,787,000 |
Balance_Sheet_InformationOCI_D
Balance Sheet Information-OCI (Details 7) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Accumulated net unrealized gain (loss) on: | |||
Available-for-sale investments | $3,359 | $10,479 | |
Foreign currency translation | -197,252 | -47,440 | |
Hedging activities | -14,179 | -39,498 | |
Total accumulated other comprehensive loss | -208,072 | -76,459 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | |||
Available-for-sale investments | -3,934 | -3,383 | 3,121 |
Foreign currency translation | -4,163 | -38,006 | -23,791 |
Total income tax benefit allocated | ($8,097) | ($41,389) | ($20,670) |
Balance_Sheet_InformationAOCI_
Balance Sheet Information-AOCI (Details 8) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Other Comprehensive Income | |||
Cost of revenue | ($3,458,954,000) | ($3,252,988,000) | ($3,326,747,000) |
Research and development | -852,310,000 | -742,268,000 | -602,765,000 |
Provision for income taxes | -481,584,000 | -473,492,000 | -209,512,000 |
Total reclassifications for the period, net of tax | -20,552,000 | -40,270,000 | -9,028,000 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Other Comprehensive Income | |||
Interest (expense) and other income (expense), net | 7,543,000 | 2,375,000 | 2,969,000 |
Provision for income taxes | -2,677,000 | -1,122,000 | -1,051,000 |
Total reclassifications for the period, net of tax | 4,866,000 | 1,253,000 | 1,918,000 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Other Comprehensive Income | |||
Cost of revenue | -24,142,000 | -41,523,000 | -10,946,000 |
Research and development | -1,276,000 | 0 | 0 |
Total reclassifications for the period, net of tax | ($25,418,000) | ($41,523,000) | ($10,946,000) |
Balance_Sheet_Information_Deta
Balance Sheet Information (Details Textuals) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Balance Sheet Information | |||
Accumulated Depreciation Amortization And Depletion Expense Property and Equipment, Current Charge | $254,300,000 | $226,300,000 | $161,900,000 |
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | |
Provision for Loan and Lease Losses | 0 | 0 | 0 |
Product Warranties Disclosures [Abstract] | |||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $5,700,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets-Goodwill (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Goodwill and Intangible Assets | ||
Balance, beginning of year | $318,111 | $201,735 |
Acquisition | 513,398 | 115,775 |
Adjustment | -181 | 601 |
Balance, end of year | $831,328 | $318,111 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets-Intangibles (Details 2) (USD $) | 12 Months Ended | |
Dec. 28, 2014 | Dec. 29, 2013 | |
Intangible Assets | ||
Total intangible assets, gross | $858,844,000 | $562,744,000 |
Accumulated amortization | -316,493,000 | -231,612,000 |
Intangible asset adjustment | -83,228,000 | |
Total intangible assets, net | 542,351,000 | 247,904,000 |
Acquired in-process research and development [Member] | ||
Intangible Assets | ||
Indefinite-lived Intangible Assets Acquired | 61,000,000 | 42,500,000 |
Adjustments of indefinite lived intangible assets | -36,200,000 | |
Net carrying amount, indefinite-lived intangible assets | 61,000,000 | 6,300,000 |
Developed product technology [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 568,744,000 | 348,385,000 |
Accumulated amortization | -209,478,000 | -121,304,000 |
Adjustments of finite lived intangible assets | -44,216,000 | |
Total intangible assets subject to amortization | 359,266,000 | 182,865,000 |
Customer relationships [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 64,600,000 | 20,650,000 |
Accumulated amortization | -21,009,000 | -14,426,000 |
Adjustments of finite lived intangible assets | 0 | |
Total intangible assets subject to amortization | 43,591,000 | 6,224,000 |
Trademarks [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 62,500,000 | 14,200,000 |
Accumulated amortization | -7,395,000 | -3,634,000 |
Adjustments of finite lived intangible assets | -2,812,000 | |
Total intangible assets subject to amortization | 55,105,000 | 7,754,000 |
Covenants not to compete [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 3,100,000 | |
Accumulated amortization | -2,959,000 | |
Adjustments of finite lived intangible assets | 0 | |
Total intangible assets subject to amortization | 141,000 | |
Technology licenses and patents [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 102,000,000 | 133,909,000 |
Accumulated amortization | -78,611,000 | -89,289,000 |
Adjustments of finite lived intangible assets | 0 | |
Total intangible assets subject to amortization | 23,389,000 | 44,620,000 |
Acquisition-related Intangible Assets [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 695,844,000 | 386,335,000 |
Accumulated amortization | -237,882,000 | -142,323,000 |
Adjustments of finite lived intangible assets | -47,028,000 | |
Total intangible assets subject to amortization | 457,962,000 | 196,984,000 |
Intangible assets subject to amortization [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 797,844,000 | 520,244,000 |
Accumulated amortization | -316,493,000 | -231,612,000 |
Adjustments of finite lived intangible assets | -47,028,000 | |
Total intangible assets subject to amortization | $481,351,000 | $241,604,000 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets-Intangible Amortization (Details 3) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Acquisition-related Intangible Assets [Member] | ||
Estimated Amortization Expense of Intangible Assets | ||
2015 | $152,375,000 | |
2016 | 109,971,000 | |
2017 | 90,916,000 | |
2018 | 66,260,000 | |
2019 | 38,440,000 | |
Total intangible assets subject to amortization | 457,962,000 | 196,984,000 |
Technology licenses and patents [Member] | ||
Estimated Amortization Expense of Intangible Assets | ||
2015 | 20,056,000 | |
2016 | 3,333,000 | |
2017 | 0 | |
2018 | 0 | |
2019 | 0 | |
Total intangible assets subject to amortization | $23,389,000 | $44,620,000 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jun. 29, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Goodwill and Finite-lived Intangible Assets | ||||
Goodwill, Period Increase (Decrease) | $513,200,000 | |||
In-process Research and Development Reclassified to Developed Product Technology | 6,300,000 | |||
Impairment of acquisition-related intangible assets | 0 | 83,228,000 | 860,000 | |
Amortization of Intangible Assets | 148,600,000 | 84,300,000 | 76,500,000 | |
Pliant Technology Inc. [Member] | ||||
Goodwill and Finite-lived Intangible Assets | ||||
Impairment of acquisition-related intangible assets | $83,200,000 |
Financing_ArrangementsCarrying
Financing Arrangements-Carrying Value and Interest (Details 1) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 | Aug. 31, 2010 | Oct. 23, 2013 |
Carrying Value of Convertible Notes | ||||
Convertible debt, carrying value | $2,069,341,000 | $1,985,363,000 | ||
Debt Summary | ||||
Convertible debt, carrying value | 2,069,341,000 | 1,985,363,000 | ||
Less: Convertible short-term debt | 869,645,000 | 0 | ||
Convertible long-term debt, carrying value | 1,199,696,000 | 1,985,363,000 | ||
1.5% Sr. Convertible Notes due 2017 [Member] | ||||
Carrying Value of Convertible Notes | ||||
Convertible debt, par value | 996,788,000 | 1,000,000,000 | 1,000,000,000 | |
Less: Unamortized bond discount | -127,143,000 | -170,208,000 | ||
Convertible debt, carrying value | 869,645,000 | 829,792,000 | ||
Debt Summary | ||||
Convertible debt, carrying value | 869,645,000 | 829,792,000 | ||
0.5% Sr. Convertible Notes due 2020 [Member] | ||||
Carrying Value of Convertible Notes | ||||
Convertible debt, par value | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | |
Less: Unamortized bond discount | -300,304,000 | -344,429,000 | ||
Convertible debt, carrying value | 1,199,696,000 | 1,155,571,000 | ||
Debt Summary | ||||
Convertible debt, carrying value | $1,199,696,000 | $1,155,571,000 |
Financing_ArrangementsInterest
Financing Arrangements-Interest (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
1% Sr. Convertible Notes due 2013 [Member] | |||
Interest Cost Recognized For Convertible Notes | |||
Contractual interest coupon | $3,481 | $9,280 | |
Amortization of bond issuance costs | 1,013 | 2,783 | |
Amortization of bond discount | 21,022 | 53,599 | |
Total interest cost recognized | 25,516 | 65,662 | |
1.5% Sr. Convertible Notes due 2017 [Member] | |||
Interest Cost Recognized For Convertible Notes | |||
Contractual interest coupon | 14,984 | 15,000 | 15,000 |
Amortization of bond issuance costs | 2,666 | 2,667 | 2,666 |
Amortization of bond discount | 41,848 | 39,095 | 36,364 |
Total interest cost recognized | 59,498 | 56,762 | 54,030 |
0.5% Sr. Convertible Notes due 2020 [Member] | |||
Interest Cost Recognized For Convertible Notes | |||
Contractual interest coupon | 7,500 | 1,271 | |
Amortization of bond issuance costs | 2,551 | 439 | |
Amortization of bond discount | 43,527 | 7,486 | |
Total interest cost recognized | $53,578 | $9,196 |
Financing_Arrangements_Details
Financing Arrangements (Details Textuals) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | 31-May-13 | Aug. 31, 2010 | Dec. 28, 2014 | Oct. 27, 2013 | Jul. 23, 2014 | Oct. 23, 2013 | |
Convertible Bond Hedge | |||||||||
Transaction cost of convertible bond hedge accounted for equity transaction | $0 | $331,650,000 | $0 | ||||||
Warrants | |||||||||
Proceeds from sale of warrants | 0 | 217,800,000 | 0 | ||||||
Temporary Conversion Obligation [Abstract] | |||||||||
Convertible short-term debt conversion obligation | 127,143,000 | 0 | 127,143,000 | ||||||
Share Price | $101.31 | $101.31 | $94.35 | ||||||
1% Sr. Convertible Notes due 2013 [Member] | |||||||||
Debt Instrument Details | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.40% | 7.40% | |||||||
Convertible Senior Notes, due date | 15-May-13 | ||||||||
Debt Conversion | |||||||||
Extinguishment of Debt, Amount | 928,100,000 | ||||||||
Interest Payable | 4,600,000 | ||||||||
Warrants | |||||||||
Number of warrants exercised | 0 | ||||||||
1.5% Sr. Convertible Notes due 2017 [Member] | |||||||||
Debt Instrument Details | |||||||||
Convertible debt, par value | 996,788,000 | 1,000,000,000 | 1,000,000,000 | 996,788,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 6.85% | 6.85% | 6.85% | 6.85% | 6.85% | ||||
Convertible Senior Notes, issuance date | 20-Aug-10 | ||||||||
Convertible Senior Notes, due date | 15-Aug-17 | ||||||||
Convertible senior notes, interest rate | 1.50% | ||||||||
Conversion rate, number of share converted | 19.0931 | 19.4714 | |||||||
Conversion of notes, base conversion price | 1,000 | 1,000 | |||||||
Debt Instrument, Convertible, Conversion Shares | 19,400,000 | 19,100,000 | 19,400,000 | ||||||
Conversion price per share | $51.36 | $52.37 | $51.36 | ||||||
Debt Carrying Value Information | |||||||||
Net proceeds from the offering of the Notes due | 981,000,000 | ||||||||
Principal amount of the liability component | 706,000,000 | ||||||||
Carrying value of the equity component | 294,000,000 | ||||||||
Debt Instrument, Unamortized Bond Discount | 127,143,000 | 170,208,000 | 127,143,000 | ||||||
Remaining amortization period of convertible debt | 2 years 8 months | ||||||||
Debt Issuance Costs | |||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 18,700,000 | ||||||||
Adjustment To Additional Paid In Capital Debt Issuance Cost | 5,500,000 | ||||||||
Convertible note issuance costs | 4,900,000 | 13,200,000 | 4,900,000 | ||||||
Debt Conversion | |||||||||
Debt Conversion, Converted Instrument, Shares Issued | 26,626 | ||||||||
Total loss on early extinguishment of debt before tax | 400,000 | ||||||||
Convertible Bond Hedge | |||||||||
Bond hedge options, exercise price | $51.36 | $52.37 | |||||||
Number of shares an entity can purchase from counterparties | 19,400,000 | 19,100,000 | |||||||
Transaction cost of convertible bond hedge accounted for equity transaction | 292,900,000 | ||||||||
Tax benefit from deferred tax asset related to convertible bond hedge | 1,700,000 | ||||||||
Warrants | |||||||||
Exercise price of warrants | $71.90 | $73.33 | $71.90 | ||||||
Number of shares counterparties can purchase from entity | 19,500,000 | 19,100,000 | |||||||
Proceeds from sale of warrants | 188,100,000 | ||||||||
Number of warrants exercised | 0 | 0 | |||||||
Temporary Conversion Obligation [Abstract] | |||||||||
Temporary Equity, Par Value | -127,100,000 | -127,100,000 | |||||||
Debt Instrument, Convertible, If-Converted Shares for Value in Excess of Principal | 9,600,000 | 9,600,000 | |||||||
1.5% Sr. Convertible Notes due 2017 [Member] | Shares, Whole [Member] | |||||||||
Convertible Bond Hedge | |||||||||
Number of shares purchased under bond hedge | 26,622 | 26,622 | |||||||
1.5% Sr. Convertible Notes due 2017 [Member] | Settled, Current and Past Period [Member] | |||||||||
Debt Conversion | |||||||||
Conversion of Debt Amount | -3,212,000 | -3,212,000 | |||||||
Extinguishment of Debt, Amount | 3,200,000 | ||||||||
1.5% Sr. Convertible Notes due 2017 [Member] | Settled, Future Period [Member] | |||||||||
Debt Conversion | |||||||||
Conversion of Debt Amount | 46,000 | 46,000 | |||||||
0.5% Sr. Convertible Notes due 2020 [Member] | |||||||||
Debt Instrument Details | |||||||||
Convertible debt, par value | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 4.43% | 4.43% | 4.43% | 4.43% | |||||
Convertible Senior Notes, issuance date | 29-Oct-13 | ||||||||
Convertible Senior Notes, due date | 15-Oct-20 | ||||||||
Convertible senior notes, interest rate | 0.50% | ||||||||
Conversion rate, number of share converted | 10.8647 | 10.847 | |||||||
Conversion of notes, base conversion price | 1,000 | 1,000 | |||||||
Debt Instrument, Convertible, Conversion Shares | 16,300,000 | 16,300,000 | 16,300,000 | ||||||
Conversion price per share | $92.04 | $92.04 | $92.19 | ||||||
Debt Carrying Value Information | |||||||||
Net proceeds from the offering of the Notes due | 1,480,000,000 | ||||||||
Principal amount of the liability component | 1,150,000,000 | ||||||||
Carrying value of the equity component | 352,000,000 | 352,000,000 | |||||||
Debt Instrument, Unamortized Bond Discount | 300,304,000 | 344,429,000 | 300,304,000 | ||||||
Remaining amortization period of convertible debt | 5 years 10 months | ||||||||
Debt Issuance Costs | |||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 17,600,000 | ||||||||
Adjustment To Additional Paid In Capital Debt Issuance Cost | 4,100,000 | ||||||||
Convertible note issuance costs | 11,200,000 | 11,200,000 | 13,500,000 | ||||||
Convertible Bond Hedge | |||||||||
Bond hedge options, exercise price | $92.04 | $92.19 | |||||||
Number of shares an entity can purchase from counterparties | 16,300,000 | 16,300,000 | |||||||
Transaction cost of convertible bond hedge accounted for equity transaction | 331,700,000 | ||||||||
Tax benefit from deferred tax asset related to convertible bond hedge | 119,500,000 | ||||||||
Number of shares purchased under bond hedge | 0 | 0 | |||||||
Warrants | |||||||||
Exercise price of warrants | $122.72 | $122.72 | $122.92 | ||||||
Number of shares counterparties can purchase from entity | 16,300,000 | 16,300,000 | |||||||
Proceeds from sale of warrants | $217,800,000 | ||||||||
Number of warrants exercised | 0 | 0 |
Share_Repurchases_Details_Text
Share Repurchases (Details Textuals) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Apr. 08, 2014 | Dec. 29, 2013 | Jul. 31, 2013 | Jan. 01, 2012 | |
Share Repurchase Program Summary | |||||||
Stock Repurchase Program, Authorized Amount | $2,500,000,000 | ||||||
Share Repurchase Program, Remaining Authorized Repurchase Amount | 626,700,000 | ||||||
Payments for Repurchase of Common Stock During Period | 1,341,476,000 | 1,589,539,000 | 230,081,000 | ||||
Share-based Benefit Plan Repurchases | |||||||
Payments Related to Tax Withholding for Share-based Compensation | 41,300,000 | ||||||
10b-5 Repurchase Program [Member] | |||||||
Share Repurchase Program Summary | |||||||
Stock Repurchase Program, Authorized Amount | 750,000,000 | 500,000,000 | |||||
Structured Share Repurchase Program [Member] | |||||||
Share Repurchase Program Summary | |||||||
Share Repurchased and Retired During Program, Shares | 45,300,000 | ||||||
Payments for Repurchase of Common Stock, Aggregate | 3,120,000,000 | ||||||
Stock Repurchased and Retired During Period, Shares | 14,300,000 | ||||||
Payments for Repurchase of Common Stock During Period | 1,300,000,000 | ||||||
Accelerated Share Repurchase Program [Member] | |||||||
Share Repurchase Program Summary | |||||||
Share Repurchased and Retired During Program, Shares | 15,100,000 | ||||||
Stock Repurchased and Retired During Period, Shares | 600,000 | 14,500,000 | |||||
Accelerated Share Repurchase Program | |||||||
Upfront Payment Under Accelerated Share Repurchase Program | 1,000,000,000 | ||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $66.07 | ||||||
Program End Date | 8-Apr-14 | ||||||
Subsequent Event [Member] | |||||||
Share Repurchase Program Summary | |||||||
Stock Repurchase Program, Authorized Amount | $2,500,000,000 |
Concentration_of_Risk_and_Segm2
Concentration of Risk and Segment Information (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Revenues from External Customers and Long-Lived Assets | |||
Revenue | $6,627,701 | $6,170,003 | $5,052,509 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenue | 1,136,284 | 877,759 | 714,293 |
China [Member] | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenue | 2,026,122 | 1,887,207 | 1,195,617 |
Taiwan [Member] | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenue | 864,461 | 958,705 | 981,801 |
Other Asia-Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenue | 1,464,720 | 1,363,927 | 1,290,291 |
Europe, Middle East and Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenue | 814,817 | 780,079 | 642,494 |
Other foreign countries [Member] | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenue | $321,297 | $302,326 | $228,013 |
Concentration_of_Risk_and_Segm3
Concentration of Risk and Segment Information (Details 2) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | $1,252,263 | $1,214,051 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 314,578 | 313,959 |
China [Member] | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 283,533 | 299,704 |
Japan [Member] | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 503,234 | 553,318 |
Other foreign countries [Member] | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | $150,918 | $47,070 |
Concentration_of_Risk_and_Segm4
Concentration of Risk and Segment Information (Details Textual) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Customer Concentration Risk [Member] | |||
Geographic Areas, Revenues from External Customers | |||
Percentage Of Revenue From Major Customers Or Licensees | 48.00% | 49.00% | 43.00% |
Accounts Receivable, Net [Abstract] | |||
Percentage of Accounts Receivable from Major Customers | 68.00% | 64.00% | |
Apple Inc. [Member] | |||
Geographic Areas, Revenues from External Customers | |||
Percentage Of Revenue From Major Customers Or Licensees | 19.00% | 20.00% | 13.00% |
Accounts Receivable, Net [Abstract] | |||
Percentage of Accounts Receivable from Major Customers | 34.00% | 32.00% | |
Best Buy Co., Inc. [Member] | |||
Accounts Receivable, Net [Abstract] | |||
Percentage of Accounts Receivable from Major Customers | 10.00% | 11.00% |
Stockholders_Equity_and_ShareB1
Stockholders Equity and Share-Based Compensation Dividend Declaration (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Dividends Payable | |||||||
Declaration Date | 15-Oct-14 | 15-Jul-14 | 15-Apr-14 | 21-Jan-14 | |||
Cash dividends declared per share | $0.30 | $0.30 | $0.23 | $0.23 | $1.05 | $0.45 | $0 |
Record Date | 3-Nov-14 | 4-Aug-14 | 5-May-14 | 3-Feb-14 | |||
Total Amount Declared | $67.50 | $68.50 | $52 | $51.70 | |||
Payment Date | 24-Nov-14 | 25-Aug-14 | 27-May-14 | 24-Feb-14 |
Stockholders_Equity_and_ShareB2
Stockholders Equity and Share-Based Compensation Dividend Declaration (Detail Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Dividends Payable | |||||||
Declaration Date | 15-Oct-14 | 15-Jul-14 | 15-Apr-14 | 21-Jan-14 | |||
Record Date | 3-Nov-14 | 4-Aug-14 | 5-May-14 | 3-Feb-14 | |||
Payment Date | 24-Nov-14 | 25-Aug-14 | 27-May-14 | 24-Feb-14 | |||
Cash dividends declared per share | $0.30 | $0.30 | $0.23 | $0.23 | $1.05 | $0.45 | $0 |
Subsequent Event [Member] | |||||||
Dividends Payable | |||||||
Declaration Date | 21-Jan-15 | ||||||
Record Date | 2-Mar-15 | ||||||
Payment Date | 23-Mar-15 | ||||||
Cash dividends declared per share | $0.30 |
ShareBased_CompensationValuati
Share-Based Compensation-Valuation Parameters (Details 1) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Employee Stock Option [Member] | |||
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | |||
Dividend yield | 0.00% | ||
Expected volatility | 32.00% | 37.00% | 43.00% |
Risk-free interest rate | 1.22% | 0.74% | 0.60% |
Expected term | 4 years 5 months | 4 years 5 months | 4 years 5 months |
Estimated annual forfeiture rate | 8.79% | 8.51% | 8.59% |
Weighted-average fair value at grant date | $18.96 | $16.26 | $16.45 |
Employee Stock Purchase Plan Shares [Member] | |||
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | |||
Dividend yield | 0.00% | ||
Expected volatility | 31.00% | 34.00% | 41.00% |
Risk-free interest rate | 0.07% | 0.11% | 0.15% |
Expected term | 0 years 6 months | 0 years 6 months | 0 years 6 months |
Weighted-average fair value at grant date | $19.39 | $13.08 | $11.87 |
Maximum [Member] | Employee Stock Option [Member] | |||
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | |||
Dividend yield | 1.42% | 1.65% | |
Maximum [Member] | Employee Stock Purchase Plan Shares [Member] | |||
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | |||
Dividend yield | 1.25% | 1.65% | |
Minimum [Member] | Employee Stock Option [Member] | |||
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | |||
Dividend yield | 1.14% | 0.00% | |
Minimum [Member] | Employee Stock Purchase Plan Shares [Member] | |||
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees | |||
Dividend yield | 1.14% | 0.00% |
ShareBased_CompensationOption_
Share-Based Compensation-Option Rollforward (Details 2) (Employee Stock Option [Member], USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Employee Stock Option [Member] | ||||
Stock options and stock appreciation rights | ||||
Options and SARs outstanding Beginning Balance, Shares | 6,593,000 | 15,426,000 | 17,559,000 | |
Options and SARs outstanding Beginning Balance, Weighted Average Exercise Price (per share) | $40.66 | $40.73 | $36.55 | |
Options and SARs outstanding Beginning Balance, Weighted Average Remaining Contractual Term | 4 years 6 months | 4 years 2 months | 3 years 2 months | 3 years 5 months |
Options and SARs outstanding Beginning Balance, Aggregate Intrinsic Value | $195,018 | $109,411 | $257,251 | |
Granted, Shares | 1,032,000 | 1,142,000 | 2,336,000 | |
Granted Weighted Average Exercise Price (per share) | $76.82 | $52.69 | $46.49 | |
Exercised, Shares | -3,635,000 | -7,362,000 | -3,403,000 | |
Exercised Weighted Average Exercise Price (per share) | $40.54 | $35.53 | $21.32 | |
Exercised Aggregate Intrinsic Value | 163,623 | 163,992 | 81,622 | |
Forfeited, Shares | -318,000 | -433,000 | -469,000 | |
Forfeited Weighted Average Exercise Price (per share) | $51.88 | $43.72 | $38.12 | |
Expired, Shares | -9,000 | -2,363,000 | -597,000 | |
Expired Weighted Average Exercise Price (per share) | $41.09 | $60.70 | $53.10 | |
Assumed through acquisition, shares | 427,000 | 183,000 | ||
Assumed through acquisition, Weighted Average Fair Value (per share) | $68.49 | $19.37 | ||
Options and SARs outstanding Ending Balance, shares | 4,090,000 | 6,593,000 | 15,426,000 | 17,559,000 |
Options and SARs outstanding Ending Balance, Weighted Average Exercise Price (per share) | $51.94 | $40.66 | $40.73 | $36.55 |
Options and SARs outstanding Ending Balance, Weighted Average Remaining Contractual Term | 4 years 6 months | 4 years 2 months | 3 years 2 months | 3 years 5 months |
Options and SARs outstanding Ending Balance, Aggregate Intrinsic Value | 202,044 | 195,018 | 109,411 | 257,251 |
Stock options and stock appreciation rights, expected to vest | ||||
Options and SARs vested and expected to vest, net of forfeitures, Shares | 3,864,000 | |||
Options and SARs vested and expected to vest, net of forfeitures, Weighted Average Exercise Price (per share) | $51.23 | |||
Options and SARs vested and expected to vest, net of forfeitures, Weighted Average Remaining Contractual Term | 4 years 5 months | |||
Options and SARs vested and expected to vest, net of forfeitures, Aggregate Intrinsic Value | 193,621 | |||
Stock options and stock appreciation rights, exercisable | ||||
Options and SARs, Exercisable, shares | 1,547,000 | |||
Options and SARs, Exercisable, Weighted Average Exercise Price | $38.53 | |||
Options and SARs, Exercisable, Weighted Average Remaining Contractual Term | 3 years 2 months | |||
Options and SARs, Exercisable, Intrinsic Value | $97,107 |
ShareBased_CompensationRSU_Rol
Share-Based Compensation-RSU Rollforward (Details 3) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Restricted Stock Units (RSUs) [Member] | |||
Summary of the changes in RSUs outstanding | |||
Beginning Balance, Non-vested share units | 4,454,000 | 3,077,000 | 2,051,000 |
Beginning Balance, Non-vested share units Weighted Average Grant Date Fair Value (per share) | $49.87 | $43.51 | $40.22 |
Beginning Balance, Non-vested share units Aggregate Intrinsic Value | $221,457 | $131,622 | $100,913 |
Granted, Shares | 2,888,000 | 2,665,000 | 1,840,000 |
Granted Weighted Average Grant Date Fair Value (per share) | $81.62 | $53.99 | $45.04 |
Vested, Shares | -1,594,000 | -950,000 | -646,000 |
Vested Weighted Average Grant Date Fair Value (per share) | $51.19 | $41.97 | $47.75 |
Vested Aggregate Intrinsic Value | 129,945 | 50,268 | 29,479 |
Forfeited, Shares | -606,000 | -338,000 | -227,000 |
Forfeited Weighted Average Grant Date Fair Value (per share) | $70.81 | $46.93 | $42.85 |
Assumed through acquisition, shares | 445,000 | 59,000 | |
Assumed through Acquisition Grant Date Fair Value (per share) | $94.35 | $46.63 | |
Ending Balance, Non-vested share units | 5,587,000 | 4,454,000 | 3,077,000 |
Ending Balance, Non-vested share units Weighted Average Grant Date Fair Value (per share) | $67.18 | $49.87 | $43.51 |
Ending Balance, Non-vested share units Aggregate Intrinsic Value | $375,366 | $221,457 | $131,622 |
ShareBased_CompensationExpense
Share-Based Compensation-Expense Recognition (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Allocated Share-based Compensation Expense | $155,313 | $99,756 | $78,443 |
Total tax benefit recognized | -42,685 | -28,183 | -20,122 |
Decrease in net income | 112,628 | 71,573 | 58,321 |
Stock options and SARs [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Allocated Share-based Compensation Expense | 35,607 | 32,803 | 35,428 |
Restricted Stock Units (RSUs) [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Allocated Share-based Compensation Expense | 108,259 | 59,962 | 35,260 |
Employee Stock Purchase Plan Shares [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Allocated Share-based Compensation Expense | 11,447 | 6,991 | 7,755 |
Cost of revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Allocated Share-based Compensation Expense | 14,720 | 9,820 | 7,459 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Allocated Share-based Compensation Expense | 74,842 | 51,521 | 41,009 |
Sales and marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Allocated Share-based Compensation Expense | 35,972 | 19,193 | 14,585 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Allocated Share-based Compensation Expense | $29,779 | $19,222 | $15,390 |
ShareBased_CompensationGrant_D
Share-Based Compensation-Grant Date Fair Value of Vested Awards (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Grant date fair value of options and RSUs vested | |||
Options | $37,986 | $36,703 | $37,674 |
RSUs | 81,619 | 39,885 | 24,327 |
Total grant date fair value of vested options and RSUs | $119,605 | $76,588 | $62,001 |
ShareBased_CompensationActivit
Share-Based Compensation-Activity (Details Textuals 1) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Compensation and Benefits | ||
Share-based compensation expense capitalized in inventory | $4.30 | $2.70 |
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | 10.8 | |
Employee Stock Option [Member] | ||
Compensation and Benefits | ||
Total unrecognized compensation cost, net of forfeitures, related to awards granted to employees | 36.2 | |
Employee service, Nonvested awards, Total Compensation Cost not yet Recognized, Period for Recognition | 2 years 2 months | |
Restricted Stock Units (RSUs) [Member] | ||
Compensation and Benefits | ||
Total unrecognized compensation cost, net of forfeitures, related to awards granted to employees | 244.8 | |
Employee service, Nonvested awards, Total Compensation Cost not yet Recognized, Period for Recognition | 2 years 7 months | |
Employee Stock Purchase Plan Shares [Member] | ||
Compensation and Benefits | ||
Total unrecognized compensation expense for ESPP | $1.50 | |
Employee service, Nonvested awards, Total Compensation Cost not yet Recognized, Period for Recognition | 0 years 2 months |
ShareBased_CompensationPlan_In
Share-Based Compensation-Plan Info (Details Textuals 2) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | 10.8 | ||
2013 Incentive Plan [Member] | |||
Stock Plan Summary | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 20,000,000 | ||
Additional Common Stock Added to Reserve Kept for Incentive Plan | 762,444 | ||
Maximum number of shares by which share reserve can be increased for issuance under incentive plan | 10,000,000 | ||
Share-based Award Vesting Term | P7Y | ||
2005 Incentive Plan [Member] | |||
Stock Plan Summary | |||
Stock Plan Termination Date | 12-Jun-13 | ||
Share-based Award Vesting Term | P7Y | ||
1995 Incentive Plan [Member] | |||
Stock Plan Summary | |||
Stock Plan Termination Date | 27-May-05 | ||
Share-based Award Vesting Term | P10Y | ||
2005 Employee Stock Purchase Plan [Member] | |||
Stock Plan Summary | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 10,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,706,401 | ||
Stock Purchase Plan Activity | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 639,265 | 623,887 | 684,646 |
Purchase price of common stock under Employee stock purchase plan as a percentage of fair market value of share | 85.00% |
Restructuring_and_Other_Relate2
Restructuring and Other Related Activities Restructuring and Other Related Activities - Expense (Details 1) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Restructuring Cost and Reserve | |||
Restructuring costs | $12,050,000 | ||
Other costs | 20,941,000 | ||
Total restructuring and other | $32,991,000 | $0 | $0 |
Restructuring_and_Other_Relate3
Restructuring and Other Related Activities - Accrual (Details 2) (USD $) | 12 Months Ended |
Dec. 28, 2014 | |
Restructuring Cost and Reserve | |
Accrual balance at December 29, 2013 | $0 |
Charges | 12,022,000 |
Adjustments | 28,000 |
Cash payments | -6,724,000 |
Non-cash items | -515,000 |
Accrual balance at December 28, 2014 | 4,811,000 |
Employee Severance [Member] | |
Restructuring Cost and Reserve | |
Accrual balance at December 29, 2013 | 0 |
Charges | 11,437,000 |
Adjustments | 33,000 |
Cash payments | -6,699,000 |
Non-cash items | 0 |
Accrual balance at December 28, 2014 | 4,771,000 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve | |
Accrual balance at December 29, 2013 | 0 |
Charges | 585,000 |
Adjustments | -5,000 |
Cash payments | -25,000 |
Non-cash items | -515,000 |
Accrual balance at December 28, 2014 | $40,000 |
Restructuring_and_Other_Relate4
Restructuring and Other Related Activities (Details Textuals) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 28, 2014 | Jun. 29, 2014 | Dec. 28, 2014 |
Employee | ||||
Restructuring Cost and Reserve | ||||
Restructuring Reserve, Period Increase (Decrease) | $12,022 | |||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 143 | |||
Other costs | 20,941 | |||
Fusion-io Inc [Member] | ||||
Restructuring Cost and Reserve | ||||
Other costs | 9,100 | |||
Fusion-io Inc [Member] | Direct Acquisition Cost [Member] | ||||
Restructuring Cost and Reserve | ||||
Other costs | 11,700 | 2,600 | 9,100 | |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring Reserve, Period Increase (Decrease) | 11,437 | |||
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring Reserve, Period Increase (Decrease) | $585 |
Income_Taxes_Income_Taxes_Prov
Income Taxes Income Taxes - Provision (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Current Income Tax Expense (Benefit) | |||
Federal | $388,532 | $359,012 | $74,258 |
State | 12,404 | 9,972 | -824 |
Foreign | 88,563 | 103,981 | 101,710 |
Current Income Tax Expense (Benefit) | 489,499 | 472,965 | 175,144 |
Deferred Income Tax Expense (Benefit) | |||
Federal | 10,544 | 27,328 | 45,383 |
State | -13,250 | 2,645 | 1,634 |
Foreign | -5,209 | -29,446 | -12,649 |
Deferred Income Tax Expense (Benefit) | -7,915 | 527 | 34,368 |
Provision for income taxes | $481,584 | $473,492 | $209,512 |
Income_Taxes_Income_Taxes_Prov1
Income Taxes Income Taxes - Provision by Country (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Income Loss Before Provision For Income Taxes | |||
United States | $1,319,528 | $1,436,470 | $518,509 |
Foreign | 169,502 | 79,679 | 108,407 |
Income before income taxes | $1,489,030 | $1,516,149 | $626,916 |
Income_Taxes_Income_Taxes_Reco
Income Taxes Income Taxes - Reconciliation (Details 3) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 0.80% | 0.60% | 0.30% |
Non-deductible share-based compensation expense | 1.00% | 0.50% | 1.30% |
Valuation allowance | 0.80% | -0.10% | 0.20% |
Tax-exempt interest income | -0.60% | -0.70% | -1.90% |
Foreign earnings at other than U.S. rates | -2.20% | -2.90% | -1.20% |
Settlements with tax authorities | -1.70% | 0.00% | -0.60% |
Other | -0.80% | -1.20% | 0.30% |
Effective income tax rates | 32.30% | 31.20% | 33.40% |
Income_Taxes_Income_Taxes_Defe
Income Taxes Income Taxes - Deferred Tax Assets (Liabilities) (Details 4) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Deferred tax assets: | ||
Deferred income on shipments to distributors and retailers and deferred revenue recognized for tax purposes | $65,002,000 | $68,117,000 |
Accruals and reserves not currently deductible | 98,342,000 | 63,236,000 |
Depreciation and amortization not currently deductible | 96,735,000 | 81,245,000 |
Deductible share-based compensation | 32,679,000 | 28,684,000 |
Unrealized loss on investments | 10,045,000 | 13,620,000 |
Unrealized foreign exchange loss | 10,357,000 | 8,061,000 |
Net operating loss carryforwards | 196,809,000 | 36,422,000 |
Tax credit carryforwards | 61,134,000 | 37,905,000 |
Other | 22,100,000 | 24,667,000 |
Gross deferred tax assets | 593,203,000 | 361,957,000 |
Valuation allowance | -96,128,000 | -52,105,000 |
Deferred tax assets, net of valuation allowance | 497,075,000 | 309,852,000 |
Deferred tax liabilities: | ||
Acquired intangible assets | -146,955,000 | -2,701,000 |
Unrealized gain on investments | -2,007,000 | -5,939,000 |
Unrealized foreign exchange gain | 0 | -3,127,000 |
U.S. taxes provided on unremitted earnings of foreign subsidiaries | -28,844,000 | -28,844,000 |
Total deferred tax liabilities | -177,806,000 | -40,611,000 |
Net deferred tax assets | $319,269,000 | $269,241,000 |
Income_Taxes_Income_Taxes_Unre
Income Taxes Income Taxes - Unrecognized Tax Benefit Reconciliation (Details 5) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $185,250,000 | $179,522,000 | $185,826,000 |
Additions: | |||
Tax positions related to current year | 17,656,000 | 8,255,000 | 8,164,000 |
Tax positions related to prior years | 14,411,000 | 15,938,000 | 942,000 |
Reductions: | |||
Tax positions related to prior years | -9,597,000 | -1,737,000 | -7,186,000 |
Expiration of statute of limitations | -8,039,000 | -7,419,000 | -2,003,000 |
Settlements with taxing authorities | -71,121,000 | 0 | 0 |
Foreign currency translation adjustment | -3,387,000 | -9,309,000 | -6,221,000 |
Balance, end of year | $125,173,000 | $185,250,000 | $179,522,000 |
Income_Taxes_Details_Textuals
Income Taxes (Details Textuals) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Income Tax Contingency | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $513,200,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 453,700,000 | ||
Undistributed Earnings of Foreign Subsidiaries | 969,100,000 | ||
Tax Effect From Share Based Plans | 45,120,000 | 583,000 | 11,691,000 |
Provision For Income Taxes | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 30,100,000 | 32,700,000 | |
Unrecognized tax benefits that would impact the effective tax rate | 100,400,000 | ||
Unrecognized tax benefits income tax penalties and interest expense or income | -200,000 | 2,200,000 | 2,900,000 |
Tax Adjustments, Settlements, and Unusual Provisions | 25,200,000 | ||
Scenario, Forecast [Member] | |||
Provision For Income Taxes | |||
Expected decrease in unrecognized tax benefits within the next twelve months | 56,200,000 | ||
Internal Revenue Service (IRS) [Member] | |||
Income Tax Contingency | |||
Tax Credit Carryforward, Amount | 13,100,000 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Contingency | |||
Tax Credit Carryforward, Amount | $77,300,000 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Numerator for basic net income per share: | |||
Net income | $1,007,446 | $1,042,657 | $417,404 |
Denominator for basic net income per share: | |||
Weighted-average common shares outstanding | 222,714,000 | 234,886,000 | 242,076,000 |
Basic net income per share | $4.52 | $4.44 | $1.72 |
Numerator for diluted net income per share: | |||
Net income | $1,007,446 | $1,042,657 | $417,404 |
Denominator for diluted net income per share: | |||
Weighted-average common shares outstanding | 222,714,000 | 234,886,000 | 242,076,000 |
Incremental common shares attributable to exercise of outstanding employee stock options, SARs and ESPP (assuming proceeds would be used to purchase common stock), and RSUs | 3,419,000 | 3,263,000 | 3,177,000 |
1.5% Notes due 2017 | 8,261,000 | 2,087,000 | 0 |
Warrants issued in conjunction with the 1.5% Notes due 2017 | 3,815,000 | 0 | 0 |
Shares used in computing diluted net income per share | 238,209,000 | 240,236,000 | 245,253,000 |
Diluted net income per share | $4.23 | $4.34 | $1.70 |
Antidilutive Shares | |||
Anti-dilutive shares excluded from net income per share calculation | 33,672,000 | 53,485,000 | 70,309,000 |
Commitments_Contingencies_and_2
Commitments, Contingencies and Guarantees-JV Leases (Details 1) | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Ventures [Member] | Flash Ventures [Member] | |
USD ($) | JPY (¥) | FAL Master Lease Agreement, 2012-03 [Member] | FAL Master Lease Agreement, 2012-03 [Member] | FAL Master Lease Agreement, 2012-07 [Member] | FAL Master Lease Agreement, 2012-07 [Member] | FAL Master Lease Agreement, 2014-03 [Member] | FAL Master Lease Agreement, 2014-03 [Member] | FAL Master Lease Agreement, 2014-05 [Member] | FAL Master Lease Agreement, 2014-05 [Member] | FAL Master Lease Agreement, 2014-08 [Member] | FAL Master Lease Agreement, 2014-08 [Member] | FAL Master Lease Agreement, 2014-12 [Member] | FAL Master Lease Agreement, 2014-12 [Member] | USD ($) | JPY (¥) | FPL Master Lease Agreement, 2012-03 [Member] | FPL Master Lease Agreement, 2012-03 [Member] | FPL Master Lease Agreement, 2014-03 [Member] | FPL Master Lease Agreement, 2014-03 [Member] | FFL Master Lease Agreement, 2014-12 [Member] | FFL Master Lease Agreement, 2014-12 [Member] | USD ($) | JPY (¥) | FFL Master Lease Agreement, 2011-11 [Member] | FFL Master Lease Agreement, 2011-11 [Member] | FFL Master Lease Agreement, 2012-03 [Member] | FFL Master Lease Agreement, 2012-03 [Member] | FFL Master Lease Agreement, 2012-07 [Member] | FFL Master Lease Agreement, 2012-07 [Member] | FFL Master Lease Agreement, 2014-12 [Member] | FFL Master Lease Agreement, 2014-12 [Member] | USD ($) | JPY (¥) | ||||
USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | ||||||||||||
Company's portion of the remaining guarantee obligations under each of Flash Ventures' master lease facilities | |||||||||||||||||||||||||||||||||||||
Guarantee of Flash Ventures equipment leases (1) | $550,964 | [1] | $492,000 | $306,941 | ¥ 37,000,000 | $43,477 | ¥ 5,200,000 | $81,271 | ¥ 9,800,000 | $37,479 | ¥ 4,500,000 | $50,256 | ¥ 6,100,000 | $53,040 | ¥ 6,400,000 | $41,418 | ¥ 5,000,000 | $80,973 | ¥ 9,700,000 | $16,074 | ¥ 1,900,000 | $37,967 | ¥ 4,600,000 | $26,932 | ¥ 3,200,000 | $163,050 | ¥ 19,700,000 | $63,604 | ¥ 7,700,000 | $41,447 | ¥ 5,000,000 | $16,600 | ¥ 2,000,000 | $41,399 | ¥ 5,000,000 | $550,964 | ¥ 66,400,000 |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 66.4B billion Japanese yen, or approximately $551B million based upon the exchange rate at DecemberB 28, 2014. |
Commitments_Contingencies_and_3
Commitments, Contingencies and Guarantees-JV Lease Amounts (Details 2) | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Flash Ventures [Member] | Flash Ventures [Member] | Payment of Principal Amortization [Member] | Purchase Option Exercise Price at Final Lease Terms [Member] | |
USD ($) | JPY (¥) | Flash Ventures [Member] | Flash Ventures [Member] | ||||
USD ($) | USD ($) | ||||||
Remaining guarantee obligations | |||||||
Year 1 | $160,391 | $145,318 | $15,073 | ||||
Year 2 | 130,400 | 120,164 | 10,236 | ||||
Year 3 | 128,060 | 78,822 | 49,238 | ||||
Year 4 | 54,049 | 45,157 | 8,892 | ||||
Year 5 | 57,609 | 26,079 | 31,530 | ||||
Year 6 | 20,455 | 2,564 | 17,891 | ||||
Guarantee of Flash Ventures equipment leases | $550,964 | [1] | $492,000 | $550,964 | ¥ 66,400,000 | $418,104 | $132,860 |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 66.4B billion Japanese yen, or approximately $551B million based upon the exchange rate at DecemberB 28, 2014. |
Commitments_Contingencies_and_4
Commitments, Contingencies and Guarantees-Commitment Tbl (Details 3) (USD $) | Dec. 28, 2014 | |
Contractual Obligations | ||
Facility and other operating leases | $65,416,000 | |
Contractual Obligation | 6,326,339,000 | |
1 Year (Fiscal 2015) | ||
Contractual Obligations | ||
Contractual Obligation | 1,651,364,000 | |
2 b 3 Years (Fiscal 2016 and 2017) | ||
Contractual Obligations | ||
Contractual Obligation | 2,270,930,000 | |
4 b 5 Years (Fiscal 2018 and 2019) | ||
Contractual Obligations | ||
Contractual Obligation | 737,365,000 | |
More than 5 Years (Beyond Fiscal 2019) | ||
Contractual Obligations | ||
Contractual Obligation | 1,666,680,000 | |
Operating Lease Expense [Member] | ||
Contractual Obligations | ||
Facility and other operating leases | 65,416,000 | [1] |
Operating Lease Expense [Member] | 1 Year (Fiscal 2015) | ||
Contractual Obligations | ||
Facility and other operating leases | 15,166,000 | [1] |
Operating Lease Expense [Member] | 2 b 3 Years (Fiscal 2016 and 2017) | ||
Contractual Obligations | ||
Facility and other operating leases | 21,062,000 | [1] |
Operating Lease Expense [Member] | 4 b 5 Years (Fiscal 2018 and 2019) | ||
Contractual Obligations | ||
Facility and other operating leases | 15,509,000 | [1] |
Operating Lease Expense [Member] | More than 5 Years (Beyond Fiscal 2019) | ||
Contractual Obligations | ||
Facility and other operating leases | 13,679,000 | [1] |
Toshiba Corporation [Member] | ||
Contractual Obligations | ||
Toshiba research and development | 39,298,000 | [1] |
Toshiba Corporation [Member] | 1 Year (Fiscal 2015) | ||
Contractual Obligations | ||
Toshiba research and development | 39,298,000 | [1] |
Toshiba Corporation [Member] | 2 b 3 Years (Fiscal 2016 and 2017) | ||
Contractual Obligations | ||
Toshiba research and development | 0 | [1] |
Toshiba Corporation [Member] | 4 b 5 Years (Fiscal 2018 and 2019) | ||
Contractual Obligations | ||
Toshiba research and development | 0 | [1] |
Toshiba Corporation [Member] | More than 5 Years (Beyond Fiscal 2019) | ||
Contractual Obligations | ||
Toshiba research and development | 0 | [1] |
Capital Equipment Purchase Commitments [Member] | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 125,856,000 | [2] |
Capital Equipment Purchase Commitments [Member] | 1 Year (Fiscal 2015) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 125,744,000 | [2] |
Capital Equipment Purchase Commitments [Member] | 2 b 3 Years (Fiscal 2016 and 2017) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 112,000 | [2] |
Capital Equipment Purchase Commitments [Member] | 4 b 5 Years (Fiscal 2018 and 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 0 | [2] |
Capital Equipment Purchase Commitments [Member] | More than 5 Years (Beyond Fiscal 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 0 | [2] |
Operating Expense Commitments [Member] | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 43,251,000 | [3] |
Operating Expense Commitments [Member] | 1 Year (Fiscal 2015) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 42,911,000 | [3] |
Operating Expense Commitments [Member] | 2 b 3 Years (Fiscal 2016 and 2017) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 340,000 | [3] |
Operating Expense Commitments [Member] | 4 b 5 Years (Fiscal 2018 and 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 0 | [3] |
Operating Expense Commitments [Member] | More than 5 Years (Beyond Fiscal 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 0 | [3] |
Noncancelable Production Purchase Commitments [Member] | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 241,663,000 | [1],[4] |
Noncancelable Production Purchase Commitments [Member] | 1 Year (Fiscal 2015) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 241,663,000 | [1],[4] |
Noncancelable Production Purchase Commitments [Member] | 2 b 3 Years (Fiscal 2016 and 2017) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 0 | [1],[4] |
Noncancelable Production Purchase Commitments [Member] | 4 b 5 Years (Fiscal 2018 and 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 0 | [1],[4] |
Noncancelable Production Purchase Commitments [Member] | More than 5 Years (Beyond Fiscal 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 0 | [1],[4] |
1.5% Sr. Convertible Notes due 2017 [Member] | ||
Contractual Obligations | ||
Convertible senior notes principal and interest | 1,041,644,000 | [5] |
1.5% Sr. Convertible Notes due 2017 [Member] | 1 Year (Fiscal 2015) | ||
Contractual Obligations | ||
Convertible senior notes principal and interest | 14,954,000 | [5] |
1.5% Sr. Convertible Notes due 2017 [Member] | 2 b 3 Years (Fiscal 2016 and 2017) | ||
Contractual Obligations | ||
Convertible senior notes principal and interest | 1,026,690,000 | [5] |
1.5% Sr. Convertible Notes due 2017 [Member] | 4 b 5 Years (Fiscal 2018 and 2019) | ||
Contractual Obligations | ||
Convertible senior notes principal and interest | 0 | [5] |
1.5% Sr. Convertible Notes due 2017 [Member] | More than 5 Years (Beyond Fiscal 2019) | ||
Contractual Obligations | ||
Convertible senior notes principal and interest | 0 | [5] |
0.5% Sr. Convertible Notes due 2020 [Member] | ||
Contractual Obligations | ||
Convertible senior notes principal and interest | 1,545,000,000 | [6] |
0.5% Sr. Convertible Notes due 2020 [Member] | 1 Year (Fiscal 2015) | ||
Contractual Obligations | ||
Convertible senior notes principal and interest | 7,500,000 | [6] |
0.5% Sr. Convertible Notes due 2020 [Member] | 2 b 3 Years (Fiscal 2016 and 2017) | ||
Contractual Obligations | ||
Convertible senior notes principal and interest | 15,000,000 | [6] |
0.5% Sr. Convertible Notes due 2020 [Member] | 4 b 5 Years (Fiscal 2018 and 2019) | ||
Contractual Obligations | ||
Convertible senior notes principal and interest | 15,000,000 | [6] |
0.5% Sr. Convertible Notes due 2020 [Member] | More than 5 Years (Beyond Fiscal 2019) | ||
Contractual Obligations | ||
Convertible senior notes principal and interest | 1,507,500,000 | [6] |
Flash Partners Ltd [Member] | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 661,820,000 | [1],[7],[8] |
Flash Partners Ltd [Member] | 1 Year (Fiscal 2015) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 206,713,000 | [1],[7],[8] |
Flash Partners Ltd [Member] | 2 b 3 Years (Fiscal 2016 and 2017) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 256,768,000 | [1],[7],[8] |
Flash Partners Ltd [Member] | 4 b 5 Years (Fiscal 2018 and 2019) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 157,159,000 | [1],[7],[8] |
Flash Partners Ltd [Member] | More than 5 Years (Beyond Fiscal 2019) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 41,180,000 | [1],[7],[8] |
Flash Alliance Ltd [Member] | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 1,656,655,000 | [1],[7],[8] |
Flash Alliance Ltd [Member] | 1 Year (Fiscal 2015) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 655,083,000 | [1],[7],[8] |
Flash Alliance Ltd [Member] | 2 b 3 Years (Fiscal 2016 and 2017) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 599,075,000 | [1],[7],[8] |
Flash Alliance Ltd [Member] | 4 b 5 Years (Fiscal 2018 and 2019) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 360,615,000 | [1],[7],[8] |
Flash Alliance Ltd [Member] | More than 5 Years (Beyond Fiscal 2019) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 41,882,000 | [1],[7],[8] |
Flash Forward Ltd [Member] | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 905,736,000 | [1],[7],[8] |
Flash Forward Ltd [Member] | 1 Year (Fiscal 2015) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 302,332,000 | [1],[7],[8] |
Flash Forward Ltd [Member] | 2 b 3 Years (Fiscal 2016 and 2017) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 351,883,000 | [1],[7],[8] |
Flash Forward Ltd [Member] | 4 b 5 Years (Fiscal 2018 and 2019) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 189,082,000 | [1],[7],[8] |
Flash Forward Ltd [Member] | More than 5 Years (Beyond Fiscal 2019) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | $62,439,000 | [1],[7],[8] |
[1] | Includes amounts denominated in a currency other than the U.S. dollar, which are subject to fluctuation in exchange rates prior to payment and have been translated using the exchange rate at DecemberB 28, 2014. | |
[2] | Excludes $119.2B million in capital expenditures not yet paid in cash. | |
[3] | Excludes amounts in accounts payable and accrued liabilities not yet paid in cash. | |
[4] | Includes Flash Ventures, related party vendors and other silicon source vendor purchase commitments. | |
[5] | In August 2010, the Company issued and sold $1.0B billion in aggregate principal amount of 1.5%B Notes due 2017. As of DecemberB 28, 2014, $3.2B million aggregate principal amount was converted and settled. As of JanuaryB 30, 2015, the Company had received additional conversion notices for a total of $46B thousand aggregate principal amount of the 1.5%B Notes due 2017, for which conversion is expected to be completed in the first quarter of fiscal year 2015. The Company will pay cash interest on the outstanding notes at an annual rate of 1.5%, payable semi-annually on August 15 and February 15 of each year until AugustB 15, 2017. | |
[6] | In October 2013, the Company issued and sold $1.5B billion in aggregate principal amount of 0.5%B Notes due 2020. The Company will pay cash interest on the outstanding notes at an annual rate of 0.5%, payable semi-annually on April 15 and October 15 of each year until OctoberB 15, 2020. | |
[7] | Includes reimbursement for depreciation and lease payments on owned and committed equipment, funding commitments for loans and equity investments and reimbursement for other committed expenses. Funding commitments assume no additional operating lease guarantees; new operating lease guarantees can reduce funding commitments. | |
[8] | Excludes amounts related to the master lease agreementsb purchase option exercise price at final lease term. |
Commitments_Contingencies_and_5
Commitments, Contingencies and Guarantees-Off-Balance Sheet Tbl (Details 4) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 | |
In Thousands, unless otherwise specified | |||
Guarantor Obligations | |||
Guarantee of Flash Ventures equipment leases (1) | $550,964 | [1] | $492,000 |
Guarantee of asset purchase in Bangalore, India (2) | $25,483 | [2] | |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 66.4B billion Japanese yen, or approximately $551B million based upon the exchange rate at DecemberB 28, 2014. | ||
[2] | The Company is committed to purchase land and a building shell in Bangalore, India, if the seller is able to obtain necessary thirdbparty and government approvals by JuneB 1, 2015. The Companybs purchase obligation was approximately $25B million based upon the exchange rate at DecemberB 28, 2014. The Company is currently making building improvements on the facility and has received a bank guarantee of up to approximately $17B million, based upon the exchange rate at DecemberB 28, 2014, from the seller to refund its building improvement expenditures if the purchase obligation expires unexercised. |
Commitments_Contingencies_and_6
Commitments, Contingencies and Guarantees-Future Lease Obligation (Details 5) (USD $) | Dec. 28, 2014 |
In Thousands, unless otherwise specified | |
Operating leases future minimum payments | |
2015 | $15,731 |
2016 | 11,404 |
2017 | 9,804 |
2018 | 8,708 |
2019 and thereafter | 20,480 |
Operating leases, gross | 66,127 |
Sublease income to be received in the future under noncancelable subleases | -711 |
Operating leases, net | $65,416 |
Commitments_Contingencies_and_7
Commitments, Contingencies and Guarantees-Rent Expense (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Net rent expense | |||
Rent expense, net | $13,022 | $6,473 | $6,366 |
Commitments_Contingencies_and_8
Commitments, Contingencies and Guarantees-JV (Details Textual 1) | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | |
USD ($) | USD ($) | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Ventures [Member] | Flash Ventures [Member] | Flash Ventures [Member] | Flash Ventures [Member] | ||
USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | USD ($) | JPY (¥) | SanDisk Corporation [Member] | Toshiba Corporation [Member] | ||||
Venture Ownership | ||||||||||||||||||
Firm's ownership in business venture | 49.90% | |||||||||||||||||
Partner's ownership in venture business | 50.10% | |||||||||||||||||
Venture Origination Year | 10-Sep-04 | 7-Jul-06 | 13-Jul-10 | 13-Jul-10 | ||||||||||||||
Equity Investments | ||||||||||||||||||
Notes Receivable, Related Parties, Noncurrent | $12,500,000 | $292,700,000 | $161,900,000 | |||||||||||||||
Equity investment in business venture | 167,100,000 | 190,700,000 | 249,500,000 | 284,000,000 | 79,200,000 | 66,700,000 | ||||||||||||
Cumulative translation adjustments | -197,252,000 | -47,440,000 | -7,300,000 | 17,300,000 | -45,500,000 | -8,700,000 | -28,400,000 | -16,200,000 | ||||||||||
Equity Method Investment Difference Between Carrying Amount And Underlying Equity (Basis Adjustment) | 0 | 1,200,000 | 3,000,000 | 0 | 6,500,000 | 15,200,000 | ||||||||||||
Master Lease Agreements | ||||||||||||||||||
Guarantee of Flash Ventures equipment leases (1) | 550,964,000 | [1] | 492,000,000 | 80,973,000 | 9,700,000,000 | 306,941,000 | 37,000,000,000 | 163,050,000 | 19,700,000,000 | 550,964,000 | 66,400,000,000 | |||||||
Master Lease Covenants | ||||||||||||||||||
Joint Venture Master Equipment Lease Agreement Guarantor Equity Covenant | $1,510,000,000 | |||||||||||||||||
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 66.4B billion Japanese yen, or approximately $551B million based upon the exchange rate at DecemberB 28, 2014. |
Commitments_Contingencies_and_9
Commitments, Contingencies and Guarantees-Indemnity (Details Textual 3) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Supplier and Customer [Member] | ||
Indemnification | ||
Indemnification Accrual At Carrying Value | $0 | $0 |
Officers, Employees and Directors [Member] | ||
Indemnification | ||
Indemnification Accrual At Carrying Value | 0 | 0 |
Environmental Cost [Member] | ||
Indemnification | ||
Indemnification Accrual At Carrying Value | $0 | $0 |
Recovered_Sheet2
Commitments, Contingencies and Guarantees-Contractual Obligation Table (Details Textual 4) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 28, 2014 | Aug. 31, 2010 | Oct. 27, 2013 | Dec. 29, 2013 | Oct. 23, 2013 | |
Tax Commitment [Abstract] | |||||
Unrecognized Tax Benefits From Contractual Obligation | $132,300,000 | ||||
Incurred But Not Paid [Abstract] | |||||
Capital Expenditures Incurred but Not yet Paid | 119,200,000 | ||||
1.5% Sr. Convertible Notes due 2017 [Member] | |||||
Debt Instruments | |||||
Aggregate principal amount of convertible notes, issued and sold | 996,788,000 | 1,000,000,000 | 1,000,000,000 | ||
Debt Instrument, Issuance Date | 20-Aug-10 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||||
Debt Instrument, Maturity Date | 15-Aug-17 | ||||
0.5% Sr. Convertible Notes due 2020 [Member] | |||||
Debt Instruments | |||||
Aggregate principal amount of convertible notes, issued and sold | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | ||
Debt Instrument, Issuance Date | 29-Oct-13 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | ||||
Debt Instrument, Maturity Date | 15-Oct-20 | ||||
Settled, Current and Past Period [Member] | 1.5% Sr. Convertible Notes due 2017 [Member] | |||||
Debt Instruments | |||||
Conversion of Debt Amount | -3,212,000 | ||||
Settled, Future Period [Member] | 1.5% Sr. Convertible Notes due 2017 [Member] | |||||
Debt Instruments | |||||
Conversion of Debt Amount | $46,000 |
Recovered_Sheet3
Commitments, Contingencies and Guarantees Commitments, Contingencies and Guarantees-Off-balance Sheet Arrangements (Details Textuals 5) | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 28, 2014 | |
USD ($) | USD ($) | Flash Ventures [Member] | Flash Ventures [Member] | ||
USD ($) | JPY (¥) | ||||
Master Lease Agreements | |||||
Guarantee of Flash Ventures equipment leases (1) | $550,964,000 | [1] | $492,000,000 | $550,964,000 | ¥ 66,400,000,000 |
Other Off-balance Sheet Disclosures [Abstract] | |||||
Guarantee of asset purchase in Bangalore, India (2) | 25,483,000 | [2] | |||
Financial Institution Reimbursement Guarantee | $17,000,000 | ||||
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 66.4B billion Japanese yen, or approximately $551B million based upon the exchange rate at DecemberB 28, 2014. | ||||
[2] | The Company is committed to purchase land and a building shell in Bangalore, India, if the seller is able to obtain necessary thirdbparty and government approvals by JuneB 1, 2015. The Companybs purchase obligation was approximately $25B million based upon the exchange rate at DecemberB 28, 2014. The Company is currently making building improvements on the facility and has received a bank guarantee of up to approximately $17B million, based upon the exchange rate at DecemberB 28, 2014, from the seller to refund its building improvement expenditures if the purchase obligation expires unexercised. |
Related_Parties_and_Strategic_2
Related Parties and Strategic Investments (Details 1) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 | |
Maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate | |||
Guarantee of Flash Ventures equipment leases (1) | $550,964,000 | [1] | $492,000,000 |
Prepayments | 0 | 5,000,000 | |
Maximum estimable loss exposure | 1,514,000,000 | 1,631,000,000 | |
Notes Receivable [Member] | |||
Maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate | |||
Maximum estimable loss exposure | 467,000,000 | 593,000,000 | |
Equity Method Investments [Member] | |||
Maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate | |||
Maximum estimable loss exposure | $496,000,000 | $541,000,000 | |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 66.4B billion Japanese yen, or approximately $551B million based upon the exchange rate at DecemberB 28, 2014. |
Related_Parties_and_Strategic_3
Related Parties and Strategic Investments (Details 2) (Flash Ventures [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Flash Ventures [Member] | |||
ASSETS | |||
Current assets | $494 | $631 | |
Property, plant, equipment, net and other assets | 2,602 | 2,802 | |
Total assets | 3,096 | 3,433 | |
LIABILITIES | |||
Current liabilities | 1,160 | 1,144 | |
Long-term liabilities | 934 | 1,186 | |
Summarized Financial Information, Income Statement | |||
Net sales(1) | 3,296 | 3,589 | 4,787 |
Gross profit | 18 | 31 | 8 |
Net income (loss) | $0 | $28 | ($15) |
Related_Parties_and_Strategic_4
Related Parties and Strategic Investments (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Related Parties and Strategic Investments | |||
Accounts payable balances due to related party | $136,051,000 | $146,964,000 | |
Flash Ventures [Member] | |||
Related Parties and Strategic Investments | |||
The Company purchased NAND flash memory wafers from Flash Ventures and made prepayments, investments and loans to Flash Ventures | 1,910,000,000 | 1,870,000,000 | 2,710,000,000 |
Repayment of loan from Flash Ventures | 231,400,000 | 124,800,000 | 511,300,000 |
Accounts payable balances due to related party | 136,100,000 | 146,000,000 | |
Undistributed earnings (deficit) of equity method investments | $8,100,000 | $8,100,000 | |
Flash Ventures [Member] | SanDisk Corporation [Member] | |||
Related Parties and Strategic Investments | |||
Percentage of ownership with Related party | 49.90% |
Stockholders_Rights_Plan_Detai
Stockholders Rights Plan (Details Textuals) (Stockholders Rights Plan [Member], USD $) | 12 Months Ended |
Dec. 28, 2014 | |
Stockholders Rights Plan [Member] | |
Stockholders Rights Plan | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1 |
Preferred Shares Purchased Under Stockholders Rights Plan | 0.005 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $225 |
Minimum Percentage Of Ownership Required To Exercise Stock Rights Plan | 15.00% |
Business_Acquisition_Purchase_
Business Acquisition - Purchase Price (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Fusion-io Inc [Member] | ||
Business Acquisition | ||
Cash consideration | $1,256,502 | |
Fair value of assumed equity attributed to pre-combination service | 7,041 | |
Total purchase price | 1,263,543 | |
SMART Storage Systems [Member] | ||
Business Acquisition | ||
Cash consideration | 304,982 | |
Fair value of assumed equity attributed to pre-combination service | 136 | |
Total purchase price | $305,118 |
Business_Acquisition_Business_
Business Acquisition Business Acquisition - Equity Valuation Assumptions (Details 2) | 12 Months Ended | |
Dec. 28, 2014 | Dec. 29, 2013 | |
Fusion-io Inc [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Dividend yield | 1.14% | |
Expected volatility | 32.00% | |
Risk-free interest rate | 1.00% | |
Expected term | 2 years 7 months | |
SMART Storage Systems [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Dividend yield | 1.60% | |
Expected volatility | 32.00% | |
Risk-free interest rate | 0.33% | |
Expected term | 1 year 4 months |
Business_Acquisition_Fair_Valu
Business Acquisition - Fair Values (Details 3) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | |||
Business Acquisition | |||
Goodwill | $831,328 | $318,111 | $201,735 |
Fusion-io Inc [Member] | |||
Business Acquisition | |||
Cash | 190,336 | ||
Accounts receivable, net | 67,666 | ||
Inventory | 76,780 | ||
Deferred tax asset, net | 54,490 | ||
Finite-lived intangible assets | 382,000 | ||
IPR&D | 61,000 | ||
Goodwill | 513,398 | ||
Other non-current assets | 30,498 | ||
Other current liabilities | -94,016 | ||
Other non-current liabilities | -18,609 | ||
Total purchase price | 1,263,543 | ||
SMART Storage Systems [Member] | |||
Business Acquisition | |||
Cash | 1,423 | ||
Accounts receivable, net | 7,827 | ||
Inventory | 29,331 | ||
Deferred taxes - current | 921 | ||
Other current assets | 28,002 | ||
Property and equipment | 5,734 | ||
Deferred tax asset, non-current | 3,338 | ||
Finite-lived intangible assets | 162,200 | ||
IPR&D | 6,300 | ||
Goodwill | 115,594 | ||
Other non-current assets | 149 | ||
Accounts payable | -11,746 | ||
Other current liabilities | -34,976 | ||
Other non-current liabilities | -8,979 | ||
Total purchase price | $305,118 |
Business_Acquisition_Business_1
Business Acquisition Business Acquisition - Fair Value of Intangible Assets (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Unclassified Indefinite-lived Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets | ||
Acquired Indefinite-lived Intangible Assets | $61,000 | $42,500 |
SMART Storage Systems [Member] | ||
Acquired Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years 10 months | |
IPR&D | 6,300 | |
Business Combination, Finite-lived and Infinite-lived Intangible Assets Acquired | 168,500 | |
SMART Storage Systems [Member] | Unclassified Indefinite-lived Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets | ||
Acquired Indefinite-lived Intangible Assets | 6,300 | |
SMART Storage Systems [Member] | Developed product technology [Member] | ||
Acquired Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 0 months | |
Finite-lived Intangible Assets Acquired | 146,100 | |
SMART Storage Systems [Member] | Trademarks and Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 0 months | |
Finite-lived Intangible Assets Acquired | 8,500 | |
SMART Storage Systems [Member] | Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 0 months | |
Finite-lived Intangible Assets Acquired | 7,600 | |
Fusion-io Inc [Member] | ||
Acquired Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 6 months | |
IPR&D | 61,000 | |
Business Combination, Finite-lived and Infinite-lived Intangible Assets Acquired | 443,000 | |
Fusion-io Inc [Member] | Unclassified Indefinite-lived Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets | ||
Acquired Indefinite-lived Intangible Assets | 61,000 | |
Fusion-io Inc [Member] | Developed product technology [Member] | ||
Acquired Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 0 months | |
Finite-lived Intangible Assets Acquired | 271,000 | |
Fusion-io Inc [Member] | Trademarks and Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 0 months | |
Finite-lived Intangible Assets Acquired | 54,000 | |
Fusion-io Inc [Member] | Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year 6 months | |
Finite-lived Intangible Assets Acquired | $57,000 |
Business_Acquisition_Details_T
Business Acquisition (Details Textuals) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 28, 2014 | Jun. 29, 2014 | Dec. 28, 2014 | Sep. 29, 2013 | Jul. 23, 2014 | |
Business Acquisition | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $1,063,798,000 | $304,320,000 | $69,629,000 | |||||
Share Price | $101.31 | $101.31 | $101.31 | $94.35 | ||||
Goodwill, Purchase Accounting Adjustments | 181,000 | -601,000 | ||||||
Business Acquisition, Transaction Costs | ||||||||
Business Acquisition, Transaction Costs | 20,941,000 | |||||||
Employee Stock Option [Member] | ||||||||
Business Acquisition | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 427,000 | 183,000 | ||||||
Weighted Average Grant Date Fair Value | $18.96 | $16.26 | $16.45 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Business Acquisition | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 445,000 | 59,000 | ||||||
Fusion-io Inc [Member] | ||||||||
Business Acquisition | ||||||||
Name of acquired entity | Fusionbio, Inc. | |||||||
Effective date of acquisition agreement | 23-Jul-14 | |||||||
Percentage acquired in business combination | 100.00% | 100.00% | 100.00% | |||||
Description of acquired entity | a leading developer of flash-based, Peripheral Component Interconnect Express (bPCIeb) hardware and software solutions that enhance application performance in enterprise and hyperscale data centers | |||||||
Description of primary reason for business combination | The Company expects this acquisition to accelerate its efforts to enable the flash-transformed data center, helping companies better manage increasingly heavy data workloads at a lower total cost of ownership. | |||||||
Business Combination, Consideration Transferred | 1,263,543,000 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 1,070,000,000 | |||||||
Business Acquisition, Share Price | $11.25 | $11.25 | $11.25 | |||||
Weighted Average Grant Date Fair Value | $35.02 | |||||||
Equity Issued in Business Combination, Fair Value Disclosure | 49,900,000 | 49,900,000 | 49,900,000 | |||||
Weighted-Average amortization period of intangible assets (in years) | 4 years 6 months | |||||||
Goodwill, Purchase Accounting Adjustments | 29,300,000 | |||||||
Business Acquisition, Acquired In-process Research and Development [Abstract] | ||||||||
Fair Value Inputs, Discount Rate | 17.50% | |||||||
Business Acquisition, Transaction Costs | ||||||||
Business Acquisition, Transaction Costs | 9,100,000 | |||||||
Fusion-io Inc [Member] | Direct Acquisition Cost [Member] | ||||||||
Business Acquisition, Transaction Costs | ||||||||
Business Acquisition, Transaction Costs | 11,700,000 | 2,600,000 | 9,100,000 | |||||
Fusion-io Inc [Member] | Employee Stock Option [Member] | ||||||||
Business Acquisition | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 427,388 | |||||||
Fusion-io Inc [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Business Acquisition | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 445,072 | |||||||
SMART Storage Systems [Member] | ||||||||
Business Acquisition | ||||||||
Name of acquired entity | SMART Storage Systems | |||||||
Effective date of acquisition agreement | 22-Aug-13 | |||||||
Percentage acquired in business combination | 100.00% | |||||||
Description of acquired entity | a developer of enterprise solid state drives (bSSDsb) | |||||||
Description of primary reason for business combination | The Company expects this acquisition to enhance its enterprise storage product portfolio. | |||||||
Business Combination, Consideration Transferred | 305,118,000 | |||||||
Equity Issued in Business Combination, Fair Value Disclosure | 6,800,000 | |||||||
Weighted-Average amortization period of intangible assets (in years) | 3 years 10 months | |||||||
Business Acquisition, Other | ||||||||
Business acquisition seller refund | 25,500,000 | |||||||
Business acquisition unsettled liability | 25,500,000 | |||||||
SMART Storage Systems [Member] | Direct Acquisition Cost [Member] | ||||||||
Business Acquisition, Transaction Costs | ||||||||
Business Acquisition, Transaction Costs | $3,100,000 | |||||||
SMART Storage Systems [Member] | Employee Stock Option [Member] | ||||||||
Business Acquisition | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 183,069 | |||||||
Weighted Average Grant Date Fair Value | $41.15 |
Supplementary_Financial_Data_D
Supplementary Financial Data (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
Revenue | |||||||||||
Revenue | $6,627,701 | $6,170,003 | $5,052,509 | ||||||||
Gross profit | 3,067,848 | 2,867,483 | 1,683,220 | ||||||||
Operating income | 1,557,934 | 1,562,210 | 696,095 | ||||||||
Net income | 1,007,446 | 1,042,657 | 417,404 | ||||||||
Net income per share: | |||||||||||
Basic | $4.52 | $4.44 | $1.72 | ||||||||
Diluted | $4.23 | $4.34 | $1.70 | ||||||||
Cash dividends declared per share | $0.30 | $0.30 | $0.23 | $0.23 | $1.05 | $0.45 | $0 | ||||
Current Fiscal Year [Member] | |||||||||||
Revenue | |||||||||||
Revenue | 1,735,254 | 1,746,491 | 1,634,011 | 1,511,945 | |||||||
Gross profit | 739,770 | 817,138 | 759,650 | 751,290 | |||||||
Operating income | 328,310 | 387,794 | 416,656 | 425,174 | |||||||
Net income | 201,891 | 262,661 | 273,946 | 268,948 | |||||||
Net income per share: | |||||||||||
Basic | $0.93 | $1.18 | $1.21 | $1.19 | |||||||
Diluted | $0.86 | $1.09 | $1.14 | $1.14 | |||||||
Cash dividends declared per share | $0.30 | $0.30 | $0.23 | $0.23 | |||||||
Prior Fiscal Year [Member] | |||||||||||
Revenue | |||||||||||
Revenue | 1,727,858 | 1,625,153 | 1,476,263 | 1,340,729 | |||||||
Gross profit | 857,155 | 801,993 | 676,819 | 531,516 | |||||||
Operating income | 507,413 | 408,448 | 392,558 | 253,791 | |||||||
Net income | $337,780 | $276,859 | $261,789 | $166,229 | |||||||
Net income per share: | |||||||||||
Basic | $1.50 | $1.20 | $1.08 | $0.69 | |||||||
Diluted | $1.45 | $1.18 | $1.06 | $0.68 | |||||||
Cash dividends declared per share | $0.23 | $0.23 | $0 | $0 |