Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended |
Mar. 29, 2015 | |
Entity Information | |
Entity Registrant Name | SANDISK CORP |
Entity Central Index Key | 1000180 |
Current Fiscal Year End Date | -2 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | 29-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | FALSE |
Entity Common Stock, Shares Outstanding | 207,888,232 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Common Stock [Member] | |
Entity Information | |
Common Stock, Par or Stated Value Per Share | 0.001 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Current assets: | ||
Cash and cash equivalents | $649,940,000 | $809,003,000 |
Short-term marketable securities | 1,347,541,000 | 1,455,509,000 |
Accounts receivable, net | 589,246,000 | 842,476,000 |
Inventory | 713,053,000 | 698,011,000 |
Deferred taxes | 162,298,000 | 180,134,000 |
Other current assets | 290,908,000 | 214,992,000 |
Total current assets | 3,752,986,000 | 4,200,125,000 |
Long-term marketable securities | 2,396,950,000 | 2,758,475,000 |
Property and equipment, net | 769,933,000 | 724,357,000 |
Notes receivable and investments in Flash Ventures | 989,678,000 | 962,817,000 |
Deferred taxes | 157,292,000 | 161,827,000 |
Goodwill | 831,328,000 | 831,328,000 |
Intangible assets, net | 437,858,000 | 542,351,000 |
Other non-current assets | 125,196,000 | 108,677,000 |
Total assets | 9,461,221,000 | 10,289,957,000 |
Current liabilities: | ||
Accounts payable trade | 397,617,000 | 404,237,000 |
Accounts payable to related parties | 147,870,000 | 136,051,000 |
Convertible short-term debt | 880,653,000 | 869,645,000 |
Other current accrued liabilities | 409,434,000 | 506,293,000 |
Deferred income on shipments to distributors and retailers and deferred revenue | 255,102,000 | 274,657,000 |
Total current liabilities | 2,090,676,000 | 2,190,883,000 |
Convertible long-term debt | 1,211,097,000 | 1,199,696,000 |
Non-current liabilities | 207,334,000 | 245,554,000 |
Total liabilities | 3,509,107,000 | 3,636,133,000 |
Commitments and contingencies (see Note 13) | ||
Convertible short-term debt conversion obligation | 116,067,000 | 127,143,000 |
Stockholders' equity: | ||
Common stock | 208,000 | 216,000 |
Capital in excess of par value | 5,143,973,000 | 5,236,766,000 |
Retained earnings | 876,252,000 | 1,499,149,000 |
Accumulated other comprehensive loss | -183,041,000 | -208,072,000 |
Total stockholders' equity | 5,837,392,000 | 6,528,059,000 |
Non-controlling interests | -1,345,000 | -1,378,000 |
Total equity | 5,836,047,000 | 6,526,681,000 |
Total liabilities, convertible short-term debt conversion obligation and equity | $9,461,221,000 | $10,289,957,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Revenue | $1,332,241,000 | $1,511,945,000 |
Cost of revenue | 762,483,000 | 741,039,000 |
Amortization of acquisition-related intangible assets | 24,756,000 | 19,616,000 |
Total cost of revenue | 787,239,000 | 760,655,000 |
Gross profit | 545,002,000 | 751,290,000 |
Operating expenses: | ||
Research and development | 222,726,000 | 198,829,000 |
Sales and marketing | 101,820,000 | 76,972,000 |
General and administrative | 48,047,000 | 48,669,000 |
Amortization of acquisition-related intangible assets | 13,681,000 | 1,646,000 |
Impairment of acquisition-related intangible assets | 61,000,000 | 0 |
Restructuring and other | 40,541,000 | 0 |
Total operating expenses | 487,815,000 | 326,116,000 |
Operating income | 57,187,000 | 425,174,000 |
Interest income | 11,025,000 | 13,244,000 |
Interest (expense) and other income (expense), net | -34,595,000 | -28,879,000 |
Total other income (expense), net | -23,570,000 | -15,635,000 |
Income before income taxes | 33,617,000 | 409,539,000 |
Provision for (benefit from) income taxes | -5,408,000 | 140,591,000 |
Net income | $39,025,000 | $268,948,000 |
Net income per share: | ||
Basic | $0.18 | $1.19 |
Diluted | $0.17 | $1.14 |
Shares used in computing net income per share: | ||
Basic | 211,428 | 225,845 |
Diluted | 224,049 | 234,914 |
Cash dividends declared per share | $0.30 | $0.23 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Net income | $39,025 | $268,948 |
Other comprehensive income, before tax: | ||
Unrealized holding gain on marketable securities | 5,198 | 1,625 |
Reclassification adjustment for realized gain on marketable securities included in net income | -1,997 | -570 |
Net unrealized holding gain on marketable securities | 3,201 | 1,055 |
Foreign currency translation adjustments | 12,254 | 24,482 |
Unrealized holding gain on derivatives qualifying as cash flow hedges | 849 | 13,468 |
Reclassification adjustment for realized loss on derivatives qualifying as cash flow hedges included in net income | 11,605 | 1,564 |
Net unrealized holding gain on derivatives qualifying as cash flow hedges | 12,454 | 15,032 |
Total other comprehensive income, before tax | 27,909 | 40,569 |
Income tax expense related to items of other comprehensive income | 2,878 | 4,148 |
Total other comprehensive income, net of tax | 25,031 | 36,421 |
Comprehensive income | $64,056 | $305,369 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $39,025,000 | $268,948,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred taxes | -965,000 | 6,951,000 |
Depreciation | 69,081,000 | 60,089,000 |
Amortization | 83,374,000 | 72,598,000 |
Provision for doubtful accounts | 330,000 | -547,000 |
Share-based compensation expense | 41,410,000 | 30,030,000 |
Excess tax benefit from share-based plans | -8,865,000 | -17,460,000 |
Impairment and other | 63,709,000 | 0 |
Other non-operating | -4,187,000 | 1,020,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 252,899,000 | 86,689,000 |
Inventory | -13,945,000 | -42,117,000 |
Other assets | -94,673,000 | 54,547,000 |
Accounts payable trade | -26,090,000 | -36,546,000 |
Accounts payable to related parties | 11,819,000 | 13,572,000 |
Other liabilities | -104,057,000 | -115,695,000 |
Total adjustments | 269,840,000 | 113,131,000 |
Net cash provided by operating activities | 308,865,000 | 382,079,000 |
Cash flows from investing activities: | ||
Purchases of short and long-term marketable securities | -692,656,000 | -1,266,899,000 |
Proceeds from sales of short and long-term marketable securities | 1,045,097,000 | 1,015,605,000 |
Proceeds from maturities of short and long-term marketable securities | 99,881,000 | 129,620,000 |
Acquisition of property and equipment, net | -98,287,000 | -34,517,000 |
Notes receivable issuances to Flash Ventures | -100,499,000 | -24,352,000 |
Notes receivable proceeds from Flash Ventures | 89,693,000 | 24,352,000 |
Purchased technology and other assets | -1,500,000 | -869,000 |
Acquisitions, net of cash acquired | 0 | 2,368,000 |
Net cash provided by (used in) investing activities | 341,729,000 | -154,692,000 |
Cash flows from financing activities: | ||
Repayment of debt financing | -68,000 | 0 |
Proceeds from employee stock programs | 30,844,000 | 51,882,000 |
Excess tax benefit from share-based plans | 8,865,000 | 17,460,000 |
Dividends paid | -64,503,000 | -51,560,000 |
Stock repurchases | -783,899,000 | -114,452,000 |
Net cash used in financing activities | -808,761,000 | -96,670,000 |
Effect of changes in foreign currency exchange rates on cash | -896,000 | -25,000 |
Net increase (decrease) in cash and cash equivalents | -159,063,000 | 130,692,000 |
Cash and cash equivalents at beginning of period | 809,003,000 | 986,246,000 |
Cash and cash equivalents at end of period | 649,940,000 | 1,116,938,000 |
Supplemental disclosure of cash flow information: | ||
Property and equipment, net additions not yet paid in cash | $136,584,000 | $58,331,000 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 29, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | Organization and Summary of Significant Accounting Policies |
Organization | |
These interim Condensed Consolidated Financial Statements are unaudited but reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, necessary to present fairly the financial position of SanDisk Corporation and its subsidiaries (the “Company”) as of March 29, 2015, the Condensed Consolidated Statements of Operations, the Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Cash Flows for the three months ended March 29, 2015 and March 30, 2014. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying notes included in the Company’s most recent Annual Report on Form 10‑K filed with the SEC on February 10, 2015. The results of operations for the three months ended March 29, 2015 are not necessarily indicative of the results to be expected for the entire year. | |
Basis of Presentation. The Company’s fiscal year ends on the Sunday closest to December 31 and its fiscal quarters generally consist of 13 weeks. Fiscal year 2015 will include 53 weeks with 14 weeks in the fourth fiscal quarter, while fiscal year 2014 included 52 weeks. The first quarters of fiscal years 2015 and 2014 ended on March 29, 2015 and March 30, 2014, respectively. For accounting and disclosure purposes, the exchange rates of 119.01, 120.44 and 102.69 at March 29, 2015, December 28, 2014 and March 30, 2014, respectively, were used to convert Japanese yen to the U.S. dollar. Throughout the Notes to Condensed Consolidated Financial Statements, unless otherwise indicated, references to Net income refer to Net income attributable to common stockholders, to years or annual periods are references to fiscal years, and to quarters are references to our fiscal quarters. | |
Organization and Nature of Operations. 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. | |
Principles of Consolidation. The Condensed 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 Condensed 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 Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed 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. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 29, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles | Recent Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015‑03, “Interest-Imputation of Interest,” to simplify the presentation of debt issuance costs by requiring that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts. ASU No. 2015‑03 is required to be adopted in 2016 but early adoption is allowed. The Company is currently assessing when it will adopt this ASU. The Company does not believe the adoption of this guidance will have a material impact on its Consolidated Financial Statements as the impact is classification only. | |
In April 2015, the FASB issued ASU No. 2015‑05, “Customer's Accounting for Fees Paid in a Cloud Computing Arrangement.” The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. Under application of this guidance, if a cloud computing arrangement includes a software license, the update specifies that the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. A customer should account for a cloud computing arrangement as a service contract if the arrangement does not include a software license. ASU No. 2015‑05 is effective for 2016 and early adoption is allowed. The Company is currently assessing the impact of this update and the timing of adoption. | |
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 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. The FASB has indicated that there may be certain future changes to the revenue guidance which could impact revenue relating to the licensing of IP, and on April 29, 2015, the FASB issued an exposure draft proposing the deferral of the effective date by one year. |
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 29, 2015 | ||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
March 29, | December 28, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 649,940 | $ | 809,003 | ||||||||||||||||||||||||||||
Short-term marketable securities | 1,347,541 | 1,455,509 | ||||||||||||||||||||||||||||||
Long-term marketable securities | 2,396,950 | 2,758,475 | ||||||||||||||||||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 4,394,431 | $ | 5,022,987 | ||||||||||||||||||||||||||||
For certain of the Company’s financial assets and liabilities, including cash held in banks, accounts receivable and accounts payable, the carrying amounts approximate fair value due to their short maturities, and those financial assets and liabilities are therefore excluded from the fair value tables below. | ||||||||||||||||||||||||||||||||
Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments: | ||||||||||||||||||||||||||||||||
March 29, 2015 | December 28, 2014 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Money market funds | $ | 432,433 | $ | — | $ | — | $ | 432,433 | $ | 533,133 | $ | — | $ | — | $ | 533,133 | ||||||||||||||||
Fixed income securities | 6,815 | 3,766,129 | — | 3,772,944 | 25,162 | 4,213,599 | — | 4,238,761 | ||||||||||||||||||||||||
Derivative assets | — | 3,243 | — | 3,243 | — | 4,800 | — | 4,800 | ||||||||||||||||||||||||
Total financial assets | $ | 439,248 | $ | 3,769,372 | $ | — | $ | 4,208,620 | $ | 558,295 | $ | 4,218,399 | $ | — | $ | 4,776,694 | ||||||||||||||||
Derivative liabilities | $ | — | $ | 1,448 | $ | — | $ | 1,448 | $ | — | $ | 8,224 | $ | — | $ | 8,224 | ||||||||||||||||
Total financial liabilities | $ | — | $ | 1,448 | $ | — | $ | 1,448 | $ | — | $ | 8,224 | $ | — | $ | 8,224 | ||||||||||||||||
Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented on the Condensed Consolidated Balance Sheets as follows: | ||||||||||||||||||||||||||||||||
March 29, 2015 | December 28, 2014 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Cash equivalents(1) | $ | 432,433 | $ | 28,453 | $ | — | $ | 460,886 | $ | 533,133 | $ | 24,777 | $ | — | $ | 557,910 | ||||||||||||||||
Short-term marketable securities | 1,458 | 1,346,083 | — | 1,347,541 | 3,327 | 1,452,182 | — | 1,455,509 | ||||||||||||||||||||||||
Long-term marketable securities | 5,357 | 2,391,593 | — | 2,396,950 | 21,835 | 2,736,640 | — | 2,758,475 | ||||||||||||||||||||||||
Other current assets | — | 3,243 | — | 3,243 | — | 4,800 | — | 4,800 | ||||||||||||||||||||||||
Total financial assets | $ | 439,248 | $ | 3,769,372 | $ | — | $ | 4,208,620 | $ | 558,295 | $ | 4,218,399 | $ | — | $ | 4,776,694 | ||||||||||||||||
Other current accrued liabilities | $ | — | $ | 1,448 | $ | — | $ | 1,448 | $ | — | $ | 8,224 | $ | — | $ | 8,224 | ||||||||||||||||
Total financial liabilities | $ | — | $ | 1,448 | $ | — | $ | 1,448 | $ | — | $ | 8,224 | $ | — | $ | 8,224 | ||||||||||||||||
(1) | Cash equivalents exclude cash holdings of $189.1 million and $251.1 million included in Cash and cash equivalents on the Condensed Consolidated Balance Sheets as of March 29, 2015 and December 28, 2014, respectively. | |||||||||||||||||||||||||||||||
During the three months ended March 29, 2015, the Company had no transfers of financial assets and liabilities between Level 1 and Level 2 other than the transfer from Level 2 to Level 1 of the $1.50 billion 0.5% Convertible Senior Notes due 2020 outstanding due to active market trading directly prior to the end of the first quarter of 2015. During 2014, the Company had no transfers of financial assets and liabilities between Level 1 and Level 2. | ||||||||||||||||||||||||||||||||
As of March 29, 2015 and December 28, 2014, 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: | ||||||||||||||||||||||||||||||||
March 29, 2015 | December 28, 2014 | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair | |||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 6,797 | $ | 19 | $ | (1 | ) | $ | 6,815 | $ | 25,194 | $ | — | $ | (32 | ) | $ | 25,162 | ||||||||||||||
U.S. government-sponsored agency securities | 22,414 | 21 | (11 | ) | 22,424 | 7,511 | — | (18 | ) | 7,493 | ||||||||||||||||||||||
International government securities | 58,032 | 80 | (21 | ) | 58,091 | 82,033 | — | (314 | ) | 81,719 | ||||||||||||||||||||||
Corporate notes and bonds | 635,937 | 1,340 | (411 | ) | 636,866 | 774,869 | 325 | (2,052 | ) | 773,142 | ||||||||||||||||||||||
Asset-backed securities | 138,814 | 84 | (86 | ) | 138,812 | 171,221 | 42 | (353 | ) | 170,910 | ||||||||||||||||||||||
Mortgage-backed securities | 31,253 | 63 | (108 | ) | 31,208 | 48,378 | 6 | (173 | ) | 48,211 | ||||||||||||||||||||||
Municipal notes and bonds | 2,871,130 | 8,677 | (1,079 | ) | 2,878,728 | 3,124,189 | 9,733 | (1,798 | ) | 3,132,124 | ||||||||||||||||||||||
Total available-for-sale investments | $ | 3,764,377 | $ | 10,284 | $ | (1,717 | ) | $ | 3,772,944 | $ | 4,233,395 | $ | 10,106 | $ | (4,740 | ) | $ | 4,238,761 | ||||||||||||||
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 March 29, 2015, are summarized in the following table. 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 | Gross Unrealized Loss | Fair | Gross Unrealized Loss | |||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 1,570 | $ | (1 | ) | $ | — | $ | — | |||||||||||||||||||||||
U.S. government-sponsored agency securities | 4,486 | (11 | ) | — | — | |||||||||||||||||||||||||||
International government securities | 22,853 | (21 | ) | — | — | |||||||||||||||||||||||||||
Corporate notes and bonds | 204,004 | (404 | ) | 4,413 | (7 | ) | ||||||||||||||||||||||||||
Asset-backed securities | 74,869 | (84 | ) | 1,248 | (2 | ) | ||||||||||||||||||||||||||
Mortgage-backed securities | 13,923 | (88 | ) | 4,942 | (20 | ) | ||||||||||||||||||||||||||
Municipal notes and bonds | 452,495 | (1,014 | ) | 15,042 | (65 | ) | ||||||||||||||||||||||||||
Total | $ | 774,200 | $ | (1,623 | ) | $ | 25,645 | $ | (94 | ) | ||||||||||||||||||||||
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 March 29, 2015 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: | ||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||
March 29, | March 30, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Realized gains | $ | 2,320 | $ | 1,013 | ||||||||||||||||||||||||||||
Realized losses | (323 | ) | (443 | ) | ||||||||||||||||||||||||||||
Net realized gains | $ | 1,997 | $ | 570 | ||||||||||||||||||||||||||||
Fixed income securities by contractual maturity as of March 29, 2015 are shown below. 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 | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Due in one year or less | $ | 711,897 | $ | 713,355 | ||||||||||||||||||||||||||||
After one year through five years | 2,262,309 | 2,268,567 | ||||||||||||||||||||||||||||||
After five years through ten years | 120,900 | 120,993 | ||||||||||||||||||||||||||||||
After ten years | 669,271 | 670,029 | ||||||||||||||||||||||||||||||
Total | $ | 3,764,377 | $ | 3,772,944 | ||||||||||||||||||||||||||||
For those financial instruments where the carrying amounts differ from fair value, the following table represents the related carrying values and fair values, which are based on quoted market prices. The 1.5% Convertible Senior Notes due 2017 and the 0.5% Convertible Senior Notes due 2020 were both categorized as Level 1, based on the frequency of trading of each respective convertible note directly prior to the end of the first quarter of 2015. As of December 28, 2014, the 1.5% Convertible Senior Notes due 2017 was categorized as Level 1 and the 0.5% Convertible Senior Notes due 2020 was classified as Level 2, both based on the frequency of trading of each respective convertible note directly prior to the end of 2014. See Note 7, “Financing Arrangements,” regarding details of each convertible note presented. | ||||||||||||||||||||||||||||||||
March 29, 2015 | December 28, 2014 | |||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
1.5% Convertible Senior Notes due 2017 | $ | 880,653 | $ | 1,363,792 | $ | 869,645 | $ | 1,948,721 | ||||||||||||||||||||||||
0.5% Convertible Senior Notes due 2020 | 1,211,097 | 1,537,500 | 1,199,696 | 1,789,500 | ||||||||||||||||||||||||||||
Total | $ | 2,091,750 | $ | 2,901,292 | $ | 2,069,341 | $ | 3,738,221 | ||||||||||||||||||||||||
As of March 29, 2015, and December 28, 2014, the Company has aggregate net investments under the cost method of accounting of $30.1 million and $29.3 million, respectively, and these investments consisted of privately-held equity securities without a readily determinable fair value. These privately-held equity investments are reported under Other non-current assets in the Condensed Consolidated Balance Sheet. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Derivative Instruments, Gain (Loss) | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | Derivatives and Hedging Activities | |||||||||||||||
Cash Flow Hedges. The Company uses foreign exchange forward contracts designated as cash flow hedges to hedge a portion of future forecasted wafer purchases in Japanese yen. The gain or loss on the effective portion of a cash flow hedge is initially reported as a component of accumulated other comprehensive income (“AOCI”) and subsequently reclassified into cost of revenue in the same period or periods in which the cost of revenue is 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). | ||||||||||||||||
Net Investment Hedges. To help protect certain foreign currency denominated equity method investments from adverse changes in foreign currency exchange rates, the Company may enter into foreign currency forward contracts to partially hedge the changes in the carrying amounts of these investments due to fluctuations in foreign currency exchange rates. Foreign exchange forward contracts designated as net investment hedges relate to the underlying value of the Company’s equity method investments in Japanese yen. The effective portion of a net investment hedge is initially recorded in AOCI as a part of foreign currency translation. Cumulative gains and losses including forward points associated with foreign exchange forward contracts designated as net investment hedges would be reclassified to other income (expense) from AOCI upon sale or substantial liquidation of the foreign equity method investments. The ineffective portions of net investment hedges are recognized immediately as other income (expense). | ||||||||||||||||
As of March 29, 2015, the notional amount and unrealized gain on the effective portion of the Company’s outstanding foreign exchange forward contracts to purchase Japanese yen that are designated as cash flow and sell Japanese yen that are designated as net investment hedges are shown in both Japanese yen and U.S. dollar, based upon the exchange rate at March 29, 2015, as follows: | ||||||||||||||||
Notional Amount | Unrealized Gain | |||||||||||||||
(Japanese yen, in billions) | (U.S. dollar, in thousands) | (U.S. dollar, in thousands) | ||||||||||||||
Foreign exchange forward contracts: | ||||||||||||||||
Cash flow hedges | ¥ | 9 | $ | 75,671 | $ | 580 | ||||||||||
Net investment hedges | (20.0 | ) | (167,980 | ) | 1,312 | |||||||||||
Foreign exchange forward contracts | ¥ | (11.0 | ) | $ | (92,309 | ) | $ | 1,892 | ||||||||
As of March 29, 2015, the maturities of the cash flow hedges were two months or less and the maturities of the net investment hedges were four 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 March 29, 2015 with realized and unrealized gains and losses included in other income (expense). As of March 29, 2015, the Company had foreign exchange forward contracts hedging balance sheet remeasurement 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 $226.3 million and $162.3 million in foreign currencies, respectively, based upon the exchange rates at March 29, 2015. | ||||||||||||||||
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: | ||||||||||||||||
Derivative assets reported in | ||||||||||||||||
Other Current Assets | Other Non-current Assets | |||||||||||||||
March 29, | December 28, | March 29, | December 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Foreign exchange forward contracts designated | $ | 2,643 | $ | — | $ | — | $ | — | ||||||||
Foreign exchange forward contracts not designated | 600 | 4,800 | — | — | ||||||||||||
Total derivatives | $ | 3,243 | $ | 4,800 | $ | — | $ | — | ||||||||
Derivative liabilities reported in | ||||||||||||||||
Other Current Accrued Liabilities | Non-current Liabilities | |||||||||||||||
March 29, | December 28, | March 29, | December 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Foreign exchange forward contracts designated | $ | — | $ | 1,472 | $ | — | $ | — | ||||||||
Foreign exchange forward contracts not designated | 1,448 | 6,752 | — | — | ||||||||||||
Total derivatives | $ | 1,448 | $ | 8,224 | $ | — | $ | — | ||||||||
As of March 29, 2015, the potential effect of rights of set-off associated with the above foreign exchange forward contracts would result in a net derivative asset balance of $3.1 million and a net derivative liability balance of $1.3 million. As of December 28, 2014, the potential effect of rights of set-off would result in a net derivative asset balance of $2.8 million and a net derivative liability balance of $6.3 million. | ||||||||||||||||
Effect of Foreign Exchange Forward Contracts Designated as Cash Flow and Net Investment Hedges on the Condensed Consolidated Statements of Operations. All designated cash flow and net investment hedge derivative contracts were considered effective for each of the three months ended March 29, 2015 and March 30, 2014. The impact of the effective portion of designated cash flow and net investment derivative contracts on the Company’s results of operations was as follows: | ||||||||||||||||
Three months ended | ||||||||||||||||
Amount of loss | Amount of loss reclassified | |||||||||||||||
recognized in OCI | from AOCI to earnings | |||||||||||||||
March 29, | March 30, | March 29, | March 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Foreign exchange forward contracts: | ||||||||||||||||
Cash flow hedges | $ | 849 | $ | 13,468 | $ | (11,605 | ) | $ | (1,564 | ) | ||||||
Net investment hedges | 1,312 | — | — | — | ||||||||||||
Foreign exchange forward contracts | $ | 2,161 | $ | 13,468 | $ | (11,605 | ) | $ | (1,564 | ) | ||||||
The Company expects to realize the majority of the AOCI balance related to cash flow hedges within the next 12 months. Cumulative gains and losses on net investment hedges recognized in AOCI would be reclassified to other income (expense) from AOCI upon sale or substantial liquidation of the foreign equity method investments. | ||||||||||||||||
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): | ||||||||||||||||
Three months ended | ||||||||||||||||
March 29, | March 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
(In thousands) | ||||||||||||||||
Foreign exchange forward contracts | $ | (159 | ) | $ | (458 | ) | ||||||||||
Effect of Non-Designated Derivative Contracts on the Condensed 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: | ||||||||||||||||
Three months ended | ||||||||||||||||
March 29, | March 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
(In thousands) | ||||||||||||||||
Gain (loss) on foreign exchange forward contracts including forward point income | $ | (559 | ) | $ | 2,186 | |||||||||||
Loss from revaluation of foreign currency exposures hedged by foreign exchange forward contracts | $ | (3,306 | ) | $ | (1,743 | ) |
Balance_Sheet_Information
Balance Sheet Information | 3 Months Ended | ||||||||||
Mar. 29, 2015 | |||||||||||
Balance Sheet Information [Abstract] | |||||||||||
Balance Sheet Information | Balance Sheet Information | ||||||||||
Accounts Receivable, net. Accounts receivable, net was as follows: | |||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Accounts receivable | $ | 780,504 | $ | 1,134,254 | |||||||
Allowance for doubtful accounts | (8,784 | ) | (9,622 | ) | |||||||
Promotions, price protection and other activities | (182,474 | ) | (282,156 | ) | |||||||
Total accounts receivable, net | $ | 589,246 | $ | 842,476 | |||||||
Inventory. Inventory was as follows: | |||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Raw material | $ | 366,388 | $ | 369,860 | |||||||
Work-in-process | 109,101 | 138,594 | |||||||||
Finished goods | 237,564 | 189,557 | |||||||||
Total inventory | $ | 713,053 | $ | 698,011 | |||||||
Other Current Assets. Other current assets were as follows: | |||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Income tax receivables | $ | 95,217 | $ | 18,579 | |||||||
Other tax-related receivables | 73,528 | 84,432 | |||||||||
Other non-trade receivables | 68,947 | 69,033 | |||||||||
Prepaid expenses | 20,878 | 18,579 | |||||||||
Other current assets | 32,338 | 24,369 | |||||||||
Total other current assets | $ | 290,908 | $ | 214,992 | |||||||
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: | |||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Notes receivable, Flash Partners Ltd. | $ | 28,569 | $ | 12,454 | |||||||
Notes receivable, Flash Alliance Ltd. | 297,034 | 292,677 | |||||||||
Notes receivable, Flash Forward Ltd. | 157,550 | 161,906 | |||||||||
Investment in Flash Partners Ltd. | 170,036 | 167,102 | |||||||||
Investment in Flash Alliance Ltd. | 254,652 | 249,459 | |||||||||
Investment in Flash Forward Ltd. | 81,837 | 79,219 | |||||||||
Total notes receivable and investments in Flash Ventures | $ | 989,678 | $ | 962,817 | |||||||
Equity-method investments and the Company’s maximum loss exposure related to Flash Ventures are discussed further in Note 13, “Commitments, Contingencies and Guarantees – Flash Ventures” and Note 14, “Related Parties and Strategic Investments.” | |||||||||||
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: | |||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Prepaid tax on intercompany transactions | $ | 33,179 | $ | 33,375 | |||||||
Long-term income tax receivable | 20,454 | — | |||||||||
Other non-current assets | 71,563 | 75,302 | |||||||||
Total other non-current assets | $ | 125,196 | $ | 108,677 | |||||||
Other Current Accrued Liabilities. Other current accrued liabilities were as follows: | |||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Accrued payroll and related expenses | $ | 152,663 | $ | 233,702 | |||||||
Taxes payable | 34,877 | 74,079 | |||||||||
Derivative contract payables | 1,448 | 8,224 | |||||||||
Other current accrued liabilities | 220,446 | 190,288 | |||||||||
Total other current accrued liabilities | $ | 409,434 | $ | 506,293 | |||||||
Non-current Liabilities. Non-current liabilities were as follows: | |||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Income tax liabilities | $ | 126,327 | $ | 132,320 | |||||||
Deferred revenue | 22,792 | 31,066 | |||||||||
Deferred tax liabilities | 239 | 22,360 | |||||||||
Other non-current liabilities | 57,976 | 59,808 | |||||||||
Total non-current liabilities | $ | 207,334 | $ | 245,554 | |||||||
Warranties. The liability for warranty expense is included in Other current accrued liabilities and Non-current liabilities in the Condensed Consolidated Balance Sheets, and the activity was as follows: | |||||||||||
Three months ended | |||||||||||
March 29, | March 30, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Balance, beginning of period | $ | 48,555 | $ | 43,624 | |||||||
Additions and adjustments to cost of revenue | 244 | 7,431 | |||||||||
Usage | (4,167 | ) | (3,490 | ) | |||||||
Balance, end of period | $ | 44,632 | $ | 47,565 | |||||||
Additions and adjustments to cost of revenue in the three months ended March 29, 2015 included adjustments to certain warranty assumptions, related to future potential claims, resulting in a $3.1 million reduction to the overall future warranty exposure. | |||||||||||
Comprehensive Income (Loss) Note | Accumulated Other Comprehensive Income (Loss). AOCI presented in the Condensed Consolidated Balance Sheets consists of unrealized gains and losses on available-for-sale investments, foreign currency translation and cash flow hedging activities, net of tax, for all periods presented: | ||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Accumulated net unrealized gain (loss) on: | |||||||||||
Available-for-sale investments | $ | 5,461 | $ | 3,359 | |||||||
Foreign currency translation | (186,777 | ) | (197,252 | ) | |||||||
Cash flow hedging activities | (1,725 | ) | (14,179 | ) | |||||||
Total accumulated other comprehensive loss | $ | (183,041 | ) | $ | (208,072 | ) | |||||
The amount of income tax expense allocated to the unrealized gain (loss) on available-for-sale investments and foreign currency translation activities was as follows: | |||||||||||
Three months ended | |||||||||||
March 29, | March 30, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Available-for-sale investments | $ | 1,099 | $ | 377 | |||||||
Foreign currency translation | 1,779 | 3,771 | |||||||||
Total income tax expense allocated | $ | 2,878 | $ | 4,148 | |||||||
The significant amounts reclassified out of each component of AOCI were as follows: | |||||||||||
Three months ended | |||||||||||
AOCI Component | March 29, | March 30, | Statement of Operations | ||||||||
2015 | 2014 | Line Item | |||||||||
(In thousands) | |||||||||||
Unrealized gain on available-for-sale investments | $ | 1,997 | $ | 570 | Interest (expense) and other income (expense), net | ||||||
Tax impact | (722 | ) | (195 | ) | Provision for (benefit from) income taxes | ||||||
Unrealized gain on available-for-sale investments, net of tax | 1,275 | 375 | |||||||||
Unrealized holding loss on cash flow hedging activities: | |||||||||||
Foreign exchange contracts | (11,605 | ) | (1,361 | ) | Cost of revenue | ||||||
Foreign exchange contracts | — | (203 | ) | Research and development | |||||||
Loss on cash flow hedging activities | (11,605 | ) | (1,564 | ) | |||||||
Total reclassifications for the period, net of tax | $ | (10,330 | ) | $ | (1,189 | ) |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||
Goodwill. Goodwill balances as of March 29, 2015 and December 28, 2014 were as follows: | ||||||||||||||||
Carrying | ||||||||||||||||
Amount | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance, beginning of year and end of period | $ | 831,328 | ||||||||||||||
Intangible Assets. Intangible asset balances were as follows: | ||||||||||||||||
March 29, 2015 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | |||||||||||||
(In thousands) | ||||||||||||||||
Developed product technology | $ | 451,560 | $ | (117,050 | ) | $ | — | $ | 334,510 | |||||||
Customer relationships | 64,600 | (31,459 | ) | — | 33,141 | |||||||||||
Trademarks and trade names | 62,500 | (10,626 | ) | — | 51,874 | |||||||||||
Acquisition-related intangible assets | 578,660 | (159,135 | ) | — | 419,525 | |||||||||||
Technology licenses and patents | 102,000 | (83,667 | ) | — | 18,333 | |||||||||||
Total intangible assets subject to amortization | 680,660 | (242,802 | ) | — | 437,858 | |||||||||||
Acquired in-process research and development | 61,000 | — | (61,000 | ) | — | |||||||||||
Total intangible assets | $ | 741,660 | $ | (242,802 | ) | $ | (61,000 | ) | $ | 437,858 | ||||||
December 28, 2014 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||
(In thousands) | ||||||||||||||||
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 | |||||||||
During the three months ended March 29, 2015, $61.0 million of in-process research and development (“IPR&D”) was impaired. The Company performs tests for impairment of long-lived assets whenever events or circumstances suggest that long-lived assets may be impaired. In the first quarter of 2015, due to a decline in revenue from previous forecasts and changes to the product development schedule related to an IPR&D project from the Fusion‑io, Inc. (“Fusion‑io”) acquisition, the Company performed impairment tests on the acquisition-related amortizable intangible and IPR&D assets for this acquisition. The Company reviewed the forecasts for the Fusion‑io IPR&D project and determined to cancel this project in order to reduce the number of platforms under development, resulting in no future attributable cash flows and a full impairment of the IPR&D asset of $61.0 million which was recorded in the first quarter of 2015. The project has been abandoned and resources have been redirected towards the next-generation PCIe and converged enterprise platform. In testing the recoverability of the Fusion‑io acquisition-related amortizable intangible assets, the Company determined that there was no impairment. The impairment test is based upon the lowest level for which identifiable cash flows are available related to the intangible assets. While the declines in revenue did not indicate that an impairment of the Fusion‑io acquisition-related intangible assets is required at this time, the Company will continue to monitor any events or circumstances that could indicate the acquisition-related amortizable intangible assets are impaired. As of March 29, 2015, the net book value of the Fusion‑io acquisition-related amortizable intangible assets was $313.3 million, some or all of which could be subject to impairment. In connection with the impairment analysis, the Company reduced the expected life of the acquisition-related amortizable developed technology intangible assets from the Fusion‑io acquisition from five years to four years, and will amortize the remaining net carrying amount of this developed technology intangible asset over the next 40 months. | ||||||||||||||||
The annual expected amortization expense of intangible assets subject to amortization as of March 29, 2015 was as follows: | ||||||||||||||||
Acquisition-related Intangible Assets | Technology Licenses and Patents | |||||||||||||||
(In thousands) | ||||||||||||||||
Year: | ||||||||||||||||
2015 (remaining 9 months) | $ | 126,133 | $ | 15,000 | ||||||||||||
2016 | 126,231 | 3,333 | ||||||||||||||
2017 | 107,176 | — | ||||||||||||||
2018 | 53,160 | — | ||||||||||||||
2019 | 6,825 | — | ||||||||||||||
Total intangible assets subject to amortization | $ | 419,525 | $ | 18,333 | ||||||||||||
Financing_Arrangements
Financing Arrangements | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Financing Arrangements | Financing Arrangements | |||||||
The following table reflects the carrying values of the Company’s convertible debt: | ||||||||
March 29, | December 28, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
1.5% Notes due 2017 | $ | 996,720 | $ | 996,788 | ||||
Less: Unamortized bond discount | (116,067 | ) | (127,143 | ) | ||||
Net carrying amount of 1.5% Notes due 2017 | 880,653 | 869,645 | ||||||
0.5% Notes due 2020 | 1,500,000 | 1,500,000 | ||||||
Less: Unamortized bond discount | (288,903 | ) | (300,304 | ) | ||||
Net carrying amount of 0.5% Notes due 2020 | 1,211,097 | 1,199,696 | ||||||
Total convertible debt | 2,091,750 | 2,069,341 | ||||||
Less: Convertible short-term debt | (880,653 | ) | (869,645 | ) | ||||
Convertible long-term debt | $ | 1,211,097 | $ | 1,199,696 | ||||
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 March 29, 2015, the conversion rate was adjusted for dividends paid to date to 19.5456 shares of common stock per $1,000 principal amount of notes (which represents 19.5 million shares at a conversion price of approximately $51.16 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: | ||||||||
Three months ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Contractual interest coupon | $ | 3,738 | $ | 3,750 | ||||
Amortization of bond issuance costs | 665 | 667 | ||||||
Amortization of bond discount | 10,873 | 10,192 | ||||||
Total interest cost recognized | $ | 15,276 | $ | 14,609 | ||||
The effective interest rate on the liability component of the 1.5% Notes due 2017 was 6.85% for each of the three months ended March 29, 2015 and March 30, 2014. The remaining unamortized bond discount of $116.1 million as of March 29, 2015 will be amortized over the remaining life of the 1.5% Notes due 2017, which is approximately 2.4 years. | ||||||||
As of the calendar quarter ended March 31, 2015, the 1.5% Notes due 2017 were convertible at the holders’ option through June 30, 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 March 31, 2015. 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 $116.1 million of the 1.5% Notes due 2017 was reclassified from Stockholders’ equity to Convertible short-term debt conversion obligation on the Condensed Consolidated Balance Sheet as of March 29, 2015, 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 March 29, 2015 of $64.59 for the Company’s common stock, if all of the 1.5% Notes due 2017 then outstanding were converted, 4.0 million shares would be distributed to the holders. | ||||||||
During the three months ended March 29, 2015, $68 thousand aggregate principal amount of the 1.5% Notes due 2017 (“Converted Notes”) was converted at the holders’ option, and the Company delivered cash of $68 thousand and 505 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 an immaterial loss during the quarter ended March 29, 2015 related to the extinguishment of the Converted Notes. As of March 29, 2015, after conversion of $3.3 million aggregate principal amount of the Converted Notes, the remaining aggregate principal amount of the 1.5% Notes due 2017 outstanding was $996.7 million. | ||||||||
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 March 29, 2015, unamortized deferred issuance cost was $4.5 million. | ||||||||
Concurrently with the issuance of the 1.5% Notes due 2017, the Company purchased a convertible bond hedge in which counterparties initially 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 convertible bond hedge agreement 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 March 29, 2015, the counterparties agreed to sell to the Company up to approximately 19.5 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 $51.16 per share as of March 29, 2015. 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. Through March 29, 2015, the Company had received 27,124 shares of the Company’s common stock from the exercise of a portion of the convertible bond hedge related to the conversion of $3.3 million aggregate principal amount of the 1.5% Notes due 2017. | ||||||||
In addition, concurrent with the issuance of the 1.5% Notes due 2017, the Company sold 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 warrant agreement 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 March 29, 2015, holders of the warrants may acquire up to approximately 19.5 million shares of the Company’s common stock at a strike price of $71.6276 per share as of March 29, 2015. 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 March 29, 2015, 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 March 29, 2015, the conversion rate was adjusted for dividends in excess of $0.225 per share paid to date to 10.8750 shares of common stock per $1,000 principal amount of notes (which represents 16.3 million shares at a conversion price of approximately $91.95 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 March 29, 2015, 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: | ||||||||
Three months ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Contractual interest coupon | $ | 1,875 | $ | 1,875 | ||||
Amortization of bond issuance costs | 627 | 659 | ||||||
Amortization of bond discount | 11,254 | 10,771 | ||||||
Total interest cost recognized | $ | 13,756 | $ | 13,305 | ||||
The effective interest rate on the liability component of the 0.5% Notes due 2020 was 4.43% for the three months ended March 29, 2015 and March 30, 2014. The remaining unamortized bond discount of $288.9 million as of March 29, 2015 will be amortized over the remaining life of the 0.5% Notes due 2020, which is approximately 5.6 years. | ||||||||
As of March 29, 2015, 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 March 29, 2015, unamortized deferred issuance cost was $10.7 million. | ||||||||
Concurrently with the issuance of the 0.5% Notes due 2020, the Company purchased a convertible bond hedge in which 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 convertible bond hedge agreement 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 March 29, 2015, the 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 issuable upon conversion of the 0.5% Notes due 2020 in full, at a price of $91.95 per share as of March 29, 2015. 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. As of March 29, 2015, the Company had not purchased any shares under this convertible bond hedge agreement. 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. | ||||||||
In addition, concurrent with the issuance of the 0.5% Notes due 2020, the Company sold 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 warrant agreement 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 March 29, 2015, holders of the warrants may acquire up to approximately 16.3 million shares of the Company’s common stock at a strike price of $122.6054 per share as of March 29, 2015. 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 March 29, 2015, 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 | 3 Months Ended |
Mar. 29, 2015 | |
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 2013. In July 2013, the Company’s Board of Directors authorized a new stock repurchase program of $2.50 billion and in January 2015, the Company’s Board of Directors increased the stock repurchase program by an additional $2.50 billion. As of March 29, 2015, $2.38 billion remained available for stock repurchases. 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 programs, from the fourth quarter of 2011 through March 29, 2015, the Company spent an aggregate $3.87 billion to repurchase 54.7 million shares. Included in the aggregate repurchase activity are 9.3 million shares that were repurchased for an aggregate amount of $750.0 million during the three months ended March 29, 2015. In addition to repurchases under the Company’s stock repurchase program, during the three months ended March 29, 2015, the Company spent $33.8 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. |
Stockholders_Equity_and_ShareB
Stockholders Equity and Share-Based Compensation | 3 Months Ended | ||||||||||||
Mar. 29, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Dividend Declaration | Dividends | ||||||||||||
During the three months ended March 29, 2015, the Company’s Board of Directors declared the following dividend: | |||||||||||||
Declaration Date | Dividend per Share | Record Date | Total Amount Declared | Payment Date | |||||||||
(In millions) | |||||||||||||
January 20, 2015 | $ | 0.3 | March 2, 2015 | $ | 65.9 | March 23, 2015 | |||||||
On April 14, 2015, the Company’s Board of Directors declared a dividend of $0.30 per share for holders of record as of May 4, 2015, which is to be paid on May 26, 2015. Future dividends are subject to declaration by the Company’s Board of Directors. | |||||||||||||
Share-Based Compensation | Share-based Benefit Plans | ||||||||||||
Share-based Plans. The Company has a share-based compensation program that provides its Board of Directors with broad discretion in creating equity incentives for employees, officers, non-employee board members and non-employee service providers. This program includes incentive and non-statutory stock option awards, stock appreciation right awards (“SARs”), RSU awards, performance-based cash bonus awards for Section 16 executive officers and an automatic grant program for non-employee board members pursuant to which such individuals will receive option grants or other stock awards at designated intervals over their period of board service. These awards are granted under various programs, all of which are stockholder approved. Stock option awards generally vest as follows: 25% of the shares vest on the first anniversary of the vesting commencement date and the remaining 75% vest proportionately each quarter over the next 12 quarters of continued service. RSU awards generally vest in equal annual installments over a four-year period. Grants to non-employee board members generally vest in one installment on the earlier of (i) the first anniversary of the grant date or (ii) the day immediately preceding the next annual meeting of the Company’s stockholders following the grant date. Additionally, the Company has an Employee Stock Purchase Plan (“ESPP”) that allows employees to purchase shares of common stock at 85% of the fair market value at the subscription date or the date of purchase, whichever is lower. | |||||||||||||
Valuation Assumptions | |||||||||||||
Option Plan Shares. The fair value of the Company’s stock options granted to employees, officers and non-employee board members was estimated using the following weighted-average assumptions: | |||||||||||||
Three months ended | |||||||||||||
March 29, | March 30, | ||||||||||||
2015 | 2014 | ||||||||||||
Dividend yield | 1.52% | 1.25% | |||||||||||
Expected volatility | 0.32 | 0.32 | |||||||||||
Risk-free interest rate | 1.18% | 1.22% | |||||||||||
Expected term | 4.2 years | 4.4 years | |||||||||||
Estimated annual forfeiture rate | 8.79% | 8.51% | |||||||||||
Weighted-average fair value at grant date | $19.56 | $18.53 | |||||||||||
RSU Plan Shares. The fair value of the Company’s RSU awards granted 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: | |||||||||||||
Three months ended | |||||||||||||
March 29, | March 30, | ||||||||||||
2015 | 2014 | ||||||||||||
Dividend yield | 1.52% | 1.25% | |||||||||||
Expected volatility | 0.36 | 0.31 | |||||||||||
Risk-free interest rate | 0.07% | 0.08% | |||||||||||
Expected term | ½ year | ½ year | |||||||||||
Weighted-average fair value at purchase date | $20.20 | $17.25 | |||||||||||
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 March 29, 2015 and changes during the three months ended March 29, 2015 are presented below: | |||||||||||||
Shares | Weighted-Average Exercise Price Per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(In thousands) | (Years) | (In thousands) | |||||||||||
Options and SARs outstanding as of December 28, 2014 | 4,090 | $51.94 | 4.5 | $ | 202,044 | ||||||||
Granted | 936 | $82.30 | |||||||||||
Exercised | (266 | ) | $41.25 | $ | 163,623 | ||||||||
Forfeited | (38 | ) | $62.41 | ||||||||||
Expired | (2 | ) | $27.02 | ||||||||||
Options and SARs outstanding as of March 29, 2015 | 4,720 | $58.49 | 4.8 | $ | 58,404 | ||||||||
Options and SARs vested and expected to vest after March 29, 2015, net of forfeitures | 4,384 | $57.35 | 4.7 | $ | 57,300 | ||||||||
Options and SARs exercisable as of March 29, 2015 | 1,853 | $44.26 | 3.4 | $ | 40,054 | ||||||||
As of March 29, 2015, the total unrecognized compensation cost related to stock options, net of estimated forfeitures, was approximately $44.1 million, and this amount is expected to be recognized over a weighted-average period of approximately 2.6 years. As of March 29, 2015, 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 months ended March 29, 2015 is presented below: | |||||||||||||
Shares | Weighted-Average Grant Date Fair Value Per Share | Aggregate Intrinsic Value | |||||||||||
(In thousands) | (In thousands) | ||||||||||||
Non-vested share units as of December 28, 2014 | 5,587 | $67.18 | $ | 375,366 | |||||||||
Granted | 2,043 | $81.98 | |||||||||||
Vested | (1,332 | ) | $59.78 | $ | 109,863 | ||||||||
Forfeited | (124 | ) | $77.21 | ||||||||||
Non-vested share units as of March 29, 2015 | 6,174 | $67.18 | $ | 453,805 | |||||||||
The number of restricted stock units vested includes shares of common stock that the Company withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. Total payments for the employees’ tax obligations to taxing authorities are reflected as a financing activity within the Condensed Consolidated Statements of Cash Flows. These net-share settlements had the effect of share repurchases by the Company as they reduced and retired the number of shares that would have otherwise been issued as a result of the vesting. See Note 8, “Stock Repurchases.” | |||||||||||||
As of March 29, 2015, the total unrecognized compensation cost related to RSUs, net of estimated forfeitures, was approximately $346.1 million, and this amount is expected to be recognized over a weighted-average period of approximately 2.9 years. | |||||||||||||
Employee Stock Purchase Plan. As of March 29, 2015, the total unrecognized compensation cost related to ESPP was approximately $5.5 million, and this amount is expected to be recognized over a period of five months. | |||||||||||||
Share-based Compensation Expense. The following tables set forth the detailed allocation of the share-based compensation expense: | |||||||||||||
Three months ended | |||||||||||||
March 29, | March 30, | ||||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Share‑based compensation expense by caption: | |||||||||||||
Cost of revenue | $ | 4,062 | $ | 2,610 | |||||||||
Research and development | 21,043 | 15,675 | |||||||||||
Sales and marketing | 9,535 | 6,257 | |||||||||||
General and administrative | 6,770 | 5,488 | |||||||||||
Total share‑based compensation expense | 41,410 | 30,030 | |||||||||||
Total tax benefit recognized | (11,069 | ) | (8,776 | ) | |||||||||
Decrease in net income | $ | 30,341 | $ | 21,254 | |||||||||
Share‑based compensation expense by type of award: | |||||||||||||
Stock options | $ | 8,028 | $ | 7,924 | |||||||||
RSUs | 30,225 | 19,465 | |||||||||||
ESPP | 3,157 | 2,641 | |||||||||||
Total share‑based compensation expense | 41,410 | 30,030 | |||||||||||
Total tax benefit recognized | (11,069 | ) | (8,776 | ) | |||||||||
Decrease in net income | $ | 30,341 | $ | 21,254 | |||||||||
Share-based compensation expense of $5.4 million and $4.3 million related to manufacturing personnel was capitalized into inventory as of March 29, 2015 and December 28, 2014, respectively. | |||||||||||||
The total grant date fair value of options and RSUs vested during the period was as follows: | |||||||||||||
Three months ended | |||||||||||||
March 29, | March 30, | ||||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Options | $ | 10,787 | $ | 10,228 | |||||||||
RSUs | 79,628 | 49,866 | |||||||||||
Total grant date fair value of options and RSUs vested during the period | $ | 90,415 | $ | 60,094 | |||||||||
Restructuring_and_Other_Relate
Restructuring and Other Related Activities | 3 Months Ended | |||||||||||
Mar. 29, 2015 | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Restructuring and Related Activities Disclosure | Restructuring and Other | |||||||||||
The Company recorded the following in Restructuring and other: | ||||||||||||
Three months ended | ||||||||||||
March 29, | ||||||||||||
2015 | ||||||||||||
(In thousands) | ||||||||||||
Restructuring costs | $ | 4,250 | ||||||||||
Other costs | 36,291 | |||||||||||
Total restructuring and other | $ | 40,541 | ||||||||||
Restructuring Costs. During 2014, the Company implemented a restructuring plan which primarily consisted of reductions in workforce in certain functions of the organization, 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. The restructuring costs under this plan for the three months ended March 29, 2015 were $4.3 million, related primarily to an excess lease obligation, and severance and benefits for involuntary terminations. All expenses, including adjustments, associated with the restructuring plan are included in Restructuring and other in the Condensed 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 March 29, 2015: | ||||||||||||
Severance and Benefits | Other | Total | ||||||||||
Charges | ||||||||||||
(In thousands) | ||||||||||||
Accrual balance at December 28, 2014 | $ | 4,771 | $ | 40 | $ | 4,811 | ||||||
Charges | 1,147 | 3,128 | 4,275 | |||||||||
Adjustments | (25 | ) | — | (25 | ) | |||||||
Cash payments | (3,868 | ) | (85 | ) | (3,952 | ) | ||||||
Non-cash items | — | (1,126 | ) | (1,126 | ) | |||||||
Accrual balance at March 29, 2015 | $ | 2,025 | $ | 1,957 | $ | 3,983 | ||||||
The Company anticipates that the remaining restructuring reserve balance will be paid out in cash through the second quarter of 2015 for employee terminations and over the remaining lease term through 2021 for the excess lease obligation. | ||||||||||||
Other Costs. During the three months ended March 29, 2015, the Company recognized other costs of $36.3 million related primarily to legal settlements and also to Fusion‑io post-merger integration expenses. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Provision for Income Taxes | Provision for (Benefit from) Income Taxes | |||||||
The following table presents the provision for income taxes and the effective tax rate: | ||||||||
Three months ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
(In thousands, except percentages) | ||||||||
Provision for (benefit from) income taxes | $ | (5,408 | ) | $ | 140,591 | |||
Tax rate | (16.1 | %) | 34.3 | % | ||||
The negative tax rate for the three months ended March 29, 2015 is primarily attributable to a discrete benefit recorded as a result of tax audit settlements and a low pre-tax profit due to an impairment charge related to an IPR&D intangible asset. The provision for income taxes for the three months ended March 29, 2015 prior to discrete items differs from the U.S. statutory tax rate of 35% due primarily to the tax impact of earnings from foreign operations, state taxes, non-deductibility of certain share-based compensation and tax-exempt interest income. Earnings and taxes resulting from foreign operations are largely attributable to the Company’s Chinese, Irish, Israeli, Japanese and Malaysian entities. Earnings in these countries where tax rates are lower than the U.S. notional rate contributed to the majority of the difference between the rate of the Company’s tax provision and the U.S. statutory tax rate. As of March 29, 2015, the Company believes that most of its deferred tax assets are more likely than not to be realized, except for certain loss and credit carry forwards in certain U.S. and foreign tax jurisdictions. | ||||||||
As of March 29, 2015, the Company had not made a provision for U.S. income taxes or foreign withholding taxes on $1.29 billion 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. | ||||||||
Unrecognized tax benefits were $120.4 million and $125.2 million as of March 29, 2015 and December 28, 2014, respectively. Unrecognized tax benefits that would impact the effective tax rate in the future were approximately $94.6 million at March 29, 2015. Income tax expense for the three months ended March 29, 2015 and March 30, 2014 included interest and penalties of ($3.2) million and $0.7 million, respectively. It is reasonably possible that the unrecognized tax benefits could decrease by approximately $33.4 million within the next 12 months as a result of the expiration of statutes of limitations and potential settlements of tax authority examinations. 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 March 29, 2015. | ||||||||
The Company is subject to U.S. federal income tax as well as income taxes in multiple state and foreign jurisdictions. In the first quarter of 2015, the Company received and signed the closing agreement with the Internal Revenue Service (“IRS”) related to the examination of the Company’s federal income tax returns for 2009 through 2011 and finalized audits with various state tax authorities. During the three months ended March 29, 2015, the Company recorded a discrete benefit of $20.9 million as a result of several audit settlements. 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 tax holidays in Malaysia that begin to expire in December 2028. The impact of the tax holidays was immaterial to all periods presented. |
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
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: | ||||||||
Three months ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
(In thousands, except per share amounts) | ||||||||
Numerator for basic net income per share: | ||||||||
Net income | $ | 39,025 | $ | 268,948 | ||||
Denominator for basic net income per share: | ||||||||
Weighted-average common shares outstanding | 211,428 | 225,845 | ||||||
Basic net income per share | $ | 0.18 | $ | 1.19 | ||||
Numerator for diluted net income per share: | ||||||||
Net income | $ | 39,025 | $ | 268,948 | ||||
Denominator for diluted net income per share: | ||||||||
Weighted-average common shares outstanding | 211,428 | 225,845 | ||||||
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 | 2,581 | 3,103 | ||||||
1.5% Notes due 2017 | 7,427 | 5,702 | ||||||
Warrants issued in conjunction with the 1.5% Notes due 2017 | 2,613 | 264 | ||||||
Shares used in computing diluted net income per share | 224,049 | 234,914 | ||||||
Diluted net income per share | $ | 0.17 | $ | 1.14 | ||||
Anti-dilutive shares excluded from net income per share calculation | 34,262 | 33,000 | ||||||
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 0.5% Notes due 2020, and warrants issued in conjunction with 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 | 3 Months Ended | ||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||
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 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 March 29, 2015, the Company had notes receivable from Flash Partners of $28.6 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 March 29, 2015 and December 28, 2014, the Company had an equity investment in Flash Partners of $170.0 million and $167.1 million, respectively, denominated in Japanese yen, adjusted by ($5.3) million and ($7.3) million, respectively, of cumulative translation adjustments recorded in AOCI. Flash Partners’ share of the Fab 3 fabrication facility is fully equipped. | |||||||||||||||||||||
Flash Alliance. Flash Alliance Ltd. (“Flash Alliance”) was formed in 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 March 29, 2015, the Company had notes receivable from Flash Alliance of $297.0 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 March 29, 2015 and December 28, 2014, the Company had an equity investment in Flash Alliance of $254.7 million and $249.5 million, respectively, denominated in Japanese yen, adjusted by ($42.5) million and ($45.5) million, respectively, of cumulative translation adjustments recorded in AOCI. Flash Alliance’s share of the Fab 4 fabrication facility is fully equipped. | |||||||||||||||||||||
Flash Forward. Flash Forward Ltd. (“Flash Forward”) was formed in 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. Phase 2 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 March 29, 2015, the Company had notes receivable from Flash Forward of $157.6 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 March 29, 2015 and December 28, 2014, the Company had an equity investment in Flash Forward of $81.8 million and $79.2 million, respectively, denominated in Japanese yen, adjusted by ($27.4) million and ($28.4) 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. | |||||||||||||||||||||
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 March 29, 2015, the total amount of the Company’s guarantee obligation of Flash Ventures’ master lease agreements, which reflects future payments and any lease adjustments, was 72.2 billion Japanese yen, or approximately $606 million, based upon the exchange rate at March 29, 2015. | |||||||||||||||||||||
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 March 29, 2015, Flash Ventures was in compliance with all of its master lease covenants, including the stockholders’ equity covenant with the Company’s stockholders’ equity at $5.84 billion as of March 29, 2015. 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 and U.S. dollar-equivalent based upon the exchange rate at March 29, 2015: | |||||||||||||||||||||
Master Lease Agreements by Execution Date | Lease Type | Lease Amounts | Expiration | ||||||||||||||||||
(Japanese yen, in billions) | (U.S. dollar, in thousands) | ||||||||||||||||||||
Flash Partners: | |||||||||||||||||||||
Mar-12 | Refinanced | ¥ | 1.6 | $ | 13,367 | 2015 | |||||||||||||||
Mar-14 | Initial | 4.4 | 36,719 | 2019 | |||||||||||||||||
Dec-14 | Initial | 3.2 | 27,255 | 2019 | |||||||||||||||||
9.2 | 77,341 | ||||||||||||||||||||
Flash Alliance: | |||||||||||||||||||||
Mar-12 | Initial | 4.8 | 40,115 | 2017 | |||||||||||||||||
Jul-12 | Refinanced | 8.9 | 74,880 | 2017 | |||||||||||||||||
Mar-14 | Initial | 4.3 | 35,799 | 2019 | |||||||||||||||||
May-14 | Initial | 5.7 | 48,041 | 2019 | |||||||||||||||||
Aug-14 | Initial | 6 | 50,859 | 2019 | |||||||||||||||||
Dec-14 | Initial | 5 | 41,916 | 2019 | |||||||||||||||||
Mar-15 | Initial | 10 | 83,956 | 2020 | |||||||||||||||||
44.7 | 375,566 | ||||||||||||||||||||
Flash Forward: | |||||||||||||||||||||
Nov-11 | Initial | 6.9 | 58,353 | 2016 | |||||||||||||||||
Mar-12 | Initial | 4.5 | 38,000 | 2017 | |||||||||||||||||
Jul-12 | Initial | 1.9 | 15,337 | 2017 | |||||||||||||||||
Dec-14 | Initial | 5 | 41,896 | 2019 | |||||||||||||||||
18.3 | 153,586 | ||||||||||||||||||||
Total guarantee obligations | ¥ | 72.2 | $ | 606,493 | |||||||||||||||||
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 March 29, 2015 in U.S. dollars based upon the Japanese yen to U.S. dollar exchange rate at March 29, 2015: | |||||||||||||||||||||
Annual Installments | Payment of Principal Amortization | Purchase Option Exercise Price at Final Lease Terms | Guarantee Amount | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Year 1 | $ | 158,063 | $ | 15,254 | $ | 173,317 | |||||||||||||||
Year 2 | 130,987 | 22,660 | 153,647 | ||||||||||||||||||
Year 3 | 83,840 | 46,528 | 130,368 | ||||||||||||||||||
Year 4 | 54,331 | 13,775 | 68,106 | ||||||||||||||||||
Year 5 | 28,927 | 36,239 | 65,166 | ||||||||||||||||||
Year 6 | 2,120 | 13,769 | 15,889 | ||||||||||||||||||
Total guarantee obligations | $ | 458,268 | $ | 148,225 | $ | 606,493 | |||||||||||||||
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 March 29, 2015 and December 28, 2014, no amounts have been accrued in the Condensed 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 March 29, 2015 and December 28, 2014, 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 March 29, 2015 and December 28, 2014, no amounts have been accrued in the Condensed 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 March 29, 2015, 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 March 29, 2015 were as follows: | |||||||||||||||||||||
Total | 1 Year (Remaining 9 months in 2015) | 2 - 3 Years (2016 and 2017) | 4 - 5 Years (2018 and 2019) | More than 5 Years (Beyond 2019) | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Facility and other operating leases | $ | 64,335 | (4) | $ | 12,202 | $ | 21,821 | $ | 15,802 | $ | 14,510 | ||||||||||
Flash Ventures and other related commitments(1) | 3,324,907 | (4)(5) | 1,000,762 | 1,296,618 | 754,370 | 273,157 | |||||||||||||||
Convertible senior notes(2) | 2,579,120 | 14,976 | 1,041,644 | 15,000 | 1,507,500 | ||||||||||||||||
Noncancelable production purchase commitments(3) | 266,366 | (4) | 257,016 | 9,350 | — | — | |||||||||||||||
Capital equipment purchase commitments | 96,602 | 96,490 | 66 | 46 | — | ||||||||||||||||
Operating expense commitments | 60,915 | 59,963 | 952 | — | — | ||||||||||||||||
Total contractual cash obligations | $ | 6,392,245 | $ | 1,441,409 | $ | 2,370,451 | $ | 785,218 | $ | 1,795,167 | |||||||||||
(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, including research and development. Funding commitments assume no additional operating lease guarantees; additional operating lease guarantees can reduce funding commitments. | ||||||||||||||||||||
(2) | Includes principal and interest on both the 1.5% Notes due 2017 and the 0.5% Notes due 2020. See Note 7, “Financing Arrangements.” | ||||||||||||||||||||
(3) | Includes production purchase commitments to Flash Ventures and other suppliers. | ||||||||||||||||||||
(4) | 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 March 29, 2015. | ||||||||||||||||||||
(5) | Excludes amounts related to the master lease agreements’ purchase option exercise price at final lease term. | ||||||||||||||||||||
The Company has excluded $126.3 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 March 29, 2015. 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: | |||||||||||||||||||||
March 29, | |||||||||||||||||||||
2015 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Guarantee of Flash Ventures equipment leases (1) | $ | 606,493 | |||||||||||||||||||
(1) | The Company’s guarantee obligation, net of cumulative lease payments, was 72.2 billion Japanese yen, or approximately $606 million based upon the exchange rate at March 29, 2015. | ||||||||||||||||||||
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 2015 through 2026. Future minimum lease payments are presented below: | |||||||||||||||||||||
Future minimum lease payments | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Year: | |||||||||||||||||||||
2015 (Remaining 9 months) | $ | 12,628 | |||||||||||||||||||
2016 | 11,986 | ||||||||||||||||||||
2017 | 9,981 | ||||||||||||||||||||
2018 | 8,791 | ||||||||||||||||||||
2019 | 7,011 | ||||||||||||||||||||
2020 and thereafter | 14,510 | ||||||||||||||||||||
Operating leases, gross | 64,907 | ||||||||||||||||||||
Sublease income to be received in the future under noncancelable subleases | (572 | ) | |||||||||||||||||||
Operating leases, net | $ | 64,335 | |||||||||||||||||||
Net rent expense was as follows: | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
March 29, | March 30, | ||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Rent expense, net | $ | 4,080 | $ | 1,624 | |||||||||||||||||
Related_Parties_and_Strategic_
Related Parties and Strategic Investments | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
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 13, “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 variable interest entities (“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 $503.8 million and $460.1 million during the three months ended March 29, 2015 and March 30, 2014, respectively. The Company received loan repayments from Flash Ventures of $89.7 million and $24.4 million during the three months ended March 29, 2015 and March 30, 2014, respectively. At March 29, 2015 and December 28, 2014, the Company had accounts payable balances due to Flash Ventures of $147.9 million and $136.1 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. 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. | ||||||||
March 29, | December 28, | |||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
Notes receivable | $ | 483 | $ | 467 | ||||
Equity investments | 507 | 496 | ||||||
Operating lease guarantees | 606 | 551 | ||||||
Maximum estimable loss exposure | $ | 1,596 | $ | 1,514 | ||||
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 Condensed 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 Condensed Consolidated Balance Sheets as of March 29, 2015 and December 28, 2014. |
Litigation
Litigation | 3 Months Ended |
Mar. 29, 2015 | |
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 sought a declaratory judgment that 12 Round Rock patents are invalid and/or not infringed by flash memory products sold by the Company. Round Rock later withdrew 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 alleged 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 was 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 were not at issue in the matters described above. | |
On March 27, 2015, the Company entered into a confidential settlement agreement with Round Rock resolving all pending litigation between the parties, which matters were subsequently dismissed with prejudice. | |
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, and the Company has filed a motion for summary judgment as to all of the plaintiffs’ asserted claims. Both motions are fully briefed and have been taken under submission by the District Court. A trial date of June 22, 2015, as previously set by the District Court, has since been vacated. | |
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. On February 13, 2015, the defendants filed a motion to dismiss, which is fully briefed and is set for hearing on May 8, 2015. The District Court has stayed discovery until after completion of the pleading stage. | |
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, which the U.S. Supreme Court subsequently denied. On February 3, 2015, the plaintiffs filed a second amended complaint in the District Court. On February 27, 2015, the defendants filed a motion to dismiss, which is fully briefed and is set for hearing on May 8, 2015. The District Court has stayed discovery until after completion of the pleading stage. | |
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 in January 2015. The former employee was convicted and, in March 2015, was sentenced to five years of imprisonment and a fine of 3 million yen. | |
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 March 26, 2015, the federal court granted the Company’s motion to remand the case to state court and denied Hynix’s motions to compel arbitration and dismiss the case on inconvenient forum grounds. | |
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 February 12, 2015, the Court granted the defendants’ motion to dismiss, with leave to amend. | |
Federal Securities Class Action Against SanDisk et al. On March 30, 2015, the Company and certain of its officers were named in a putative class action lawsuit filed in the United States District Court for the Northern District of California (Glore v. SanDisk Corp. et al.). The complaint is allegedly brought on behalf of a class of purchasers of the Company’s securities between October 16, 2014 and March 25, 2015, and alleges violations of federal securities laws arising out of alleged misstatements or omissions by the defendants during the alleged class period. The complaint seeks, among other things, compensatory damages and attorneys’ fees and costs on behalf of the putative class. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 29, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations, Policy | Organization |
These interim Condensed Consolidated Financial Statements are unaudited but reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, necessary to present fairly the financial position of SanDisk Corporation and its subsidiaries (the “Company”) as of March 29, 2015, the Condensed Consolidated Statements of Operations, the Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Cash Flows for the three months ended March 29, 2015 and March 30, 2014. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying notes included in the Company’s most recent Annual Report on Form 10‑K filed with the SEC on February 10, 2015. The results of operations for the three months ended March 29, 2015 are not necessarily indicative of the results to be expected for the entire year. | |
Organization and Nature of Operations. 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 and its fiscal quarters generally consist of 13 weeks. Fiscal year 2015 will include 53 weeks with 14 weeks in the fourth fiscal quarter, while fiscal year 2014 included 52 weeks. The first quarters of fiscal years 2015 and 2014 ended on March 29, 2015 and March 30, 2014, respectively. For accounting and disclosure purposes, the exchange rates of 119.01, 120.44 and 102.69 at March 29, 2015, December 28, 2014 and March 30, 2014, respectively, were used to convert Japanese yen to the U.S. dollar. Throughout the Notes to Condensed Consolidated Financial Statements, unless otherwise indicated, references to Net income refer to Net income attributable to common stockholders, to years or annual periods are references to fiscal years, and to quarters are references to our fiscal quarters. |
Consolidation, Policy | Principles of Consolidation. The Condensed 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 Condensed 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 Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed 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. |
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 29, 2015 | ||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||
March 29, | December 28, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 649,940 | $ | 809,003 | ||||||||||||||||||||||||||||
Short-term marketable securities | 1,347,541 | 1,455,509 | ||||||||||||||||||||||||||||||
Long-term marketable securities | 2,396,950 | 2,758,475 | ||||||||||||||||||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 4,394,431 | $ | 5,022,987 | ||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||
March 29, 2015 | December 28, 2014 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Money market funds | $ | 432,433 | $ | — | $ | — | $ | 432,433 | $ | 533,133 | $ | — | $ | — | $ | 533,133 | ||||||||||||||||
Fixed income securities | 6,815 | 3,766,129 | — | 3,772,944 | 25,162 | 4,213,599 | — | 4,238,761 | ||||||||||||||||||||||||
Derivative assets | — | 3,243 | — | 3,243 | — | 4,800 | — | 4,800 | ||||||||||||||||||||||||
Total financial assets | $ | 439,248 | $ | 3,769,372 | $ | — | $ | 4,208,620 | $ | 558,295 | $ | 4,218,399 | $ | — | $ | 4,776,694 | ||||||||||||||||
Derivative liabilities | $ | — | $ | 1,448 | $ | — | $ | 1,448 | $ | — | $ | 8,224 | $ | — | $ | 8,224 | ||||||||||||||||
Total financial liabilities | $ | — | $ | 1,448 | $ | — | $ | 1,448 | $ | — | $ | 8,224 | $ | — | $ | 8,224 | ||||||||||||||||
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 Condensed Consolidated Balance Sheets as follows: | |||||||||||||||||||||||||||||||
March 29, 2015 | December 28, 2014 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Cash equivalents(1) | $ | 432,433 | $ | 28,453 | $ | — | $ | 460,886 | $ | 533,133 | $ | 24,777 | $ | — | $ | 557,910 | ||||||||||||||||
Short-term marketable securities | 1,458 | 1,346,083 | — | 1,347,541 | 3,327 | 1,452,182 | — | 1,455,509 | ||||||||||||||||||||||||
Long-term marketable securities | 5,357 | 2,391,593 | — | 2,396,950 | 21,835 | 2,736,640 | — | 2,758,475 | ||||||||||||||||||||||||
Other current assets | — | 3,243 | — | 3,243 | — | 4,800 | — | 4,800 | ||||||||||||||||||||||||
Total financial assets | $ | 439,248 | $ | 3,769,372 | $ | — | $ | 4,208,620 | $ | 558,295 | $ | 4,218,399 | $ | — | $ | 4,776,694 | ||||||||||||||||
Other current accrued liabilities | $ | — | $ | 1,448 | $ | — | $ | 1,448 | $ | — | $ | 8,224 | $ | — | $ | 8,224 | ||||||||||||||||
Total financial liabilities | $ | — | $ | 1,448 | $ | — | $ | 1,448 | $ | — | $ | 8,224 | $ | — | $ | 8,224 | ||||||||||||||||
(1) | Cash equivalents exclude cash holdings of $189.1 million and $251.1 million included in Cash and cash equivalents on the Condensed Consolidated Balance Sheets as of March 29, 2015 and December 28, 2014, respectively. | |||||||||||||||||||||||||||||||
Available for Sale Investments | Available-for-sale investments were as follows: | |||||||||||||||||||||||||||||||
March 29, 2015 | December 28, 2014 | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair | |||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 6,797 | $ | 19 | $ | (1 | ) | $ | 6,815 | $ | 25,194 | $ | — | $ | (32 | ) | $ | 25,162 | ||||||||||||||
U.S. government-sponsored agency securities | 22,414 | 21 | (11 | ) | 22,424 | 7,511 | — | (18 | ) | 7,493 | ||||||||||||||||||||||
International government securities | 58,032 | 80 | (21 | ) | 58,091 | 82,033 | — | (314 | ) | 81,719 | ||||||||||||||||||||||
Corporate notes and bonds | 635,937 | 1,340 | (411 | ) | 636,866 | 774,869 | 325 | (2,052 | ) | 773,142 | ||||||||||||||||||||||
Asset-backed securities | 138,814 | 84 | (86 | ) | 138,812 | 171,221 | 42 | (353 | ) | 170,910 | ||||||||||||||||||||||
Mortgage-backed securities | 31,253 | 63 | (108 | ) | 31,208 | 48,378 | 6 | (173 | ) | 48,211 | ||||||||||||||||||||||
Municipal notes and bonds | 2,871,130 | 8,677 | (1,079 | ) | 2,878,728 | 3,124,189 | 9,733 | (1,798 | ) | 3,132,124 | ||||||||||||||||||||||
Total available-for-sale investments | $ | 3,764,377 | $ | 10,284 | $ | (1,717 | ) | $ | 3,772,944 | $ | 4,233,395 | $ | 10,106 | $ | (4,740 | ) | $ | 4,238,761 | ||||||||||||||
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 March 29, 2015, are summarized in the following table. 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 | Gross Unrealized Loss | Fair | Gross Unrealized Loss | |||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 1,570 | $ | (1 | ) | $ | — | $ | — | |||||||||||||||||||||||
U.S. government-sponsored agency securities | 4,486 | (11 | ) | — | — | |||||||||||||||||||||||||||
International government securities | 22,853 | (21 | ) | — | — | |||||||||||||||||||||||||||
Corporate notes and bonds | 204,004 | (404 | ) | 4,413 | (7 | ) | ||||||||||||||||||||||||||
Asset-backed securities | 74,869 | (84 | ) | 1,248 | (2 | ) | ||||||||||||||||||||||||||
Mortgage-backed securities | 13,923 | (88 | ) | 4,942 | (20 | ) | ||||||||||||||||||||||||||
Municipal notes and bonds | 452,495 | (1,014 | ) | 15,042 | (65 | ) | ||||||||||||||||||||||||||
Total | $ | 774,200 | $ | (1,623 | ) | $ | 25,645 | $ | (94 | ) | ||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||
March 29, | March 30, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Realized gains | $ | 2,320 | $ | 1,013 | ||||||||||||||||||||||||||||
Realized losses | (323 | ) | (443 | ) | ||||||||||||||||||||||||||||
Net realized gains | $ | 1,997 | $ | 570 | ||||||||||||||||||||||||||||
Fixed income securities by contractual maturity | Fixed income securities by contractual maturity as of March 29, 2015 are shown below. 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 | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Due in one year or less | $ | 711,897 | $ | 713,355 | ||||||||||||||||||||||||||||
After one year through five years | 2,262,309 | 2,268,567 | ||||||||||||||||||||||||||||||
After five years through ten years | 120,900 | 120,993 | ||||||||||||||||||||||||||||||
After ten years | 669,271 | 670,029 | ||||||||||||||||||||||||||||||
Total | $ | 3,764,377 | $ | 3,772,944 | ||||||||||||||||||||||||||||
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 represents the related carrying values and fair values, which are based on quoted market prices. The 1.5% Convertible Senior Notes due 2017 and the 0.5% Convertible Senior Notes due 2020 were both categorized as Level 1, based on the frequency of trading of each respective convertible note directly prior to the end of the first quarter of 2015. As of December 28, 2014, the 1.5% Convertible Senior Notes due 2017 was categorized as Level 1 and the 0.5% Convertible Senior Notes due 2020 was classified as Level 2, both based on the frequency of trading of each respective convertible note directly prior to the end of 2014. See Note 7, “Financing Arrangements,” regarding details of each convertible note presented. | |||||||||||||||||||||||||||||||
March 29, 2015 | December 28, 2014 | |||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
1.5% Convertible Senior Notes due 2017 | $ | 880,653 | $ | 1,363,792 | $ | 869,645 | $ | 1,948,721 | ||||||||||||||||||||||||
0.5% Convertible Senior Notes due 2020 | 1,211,097 | 1,537,500 | 1,199,696 | 1,789,500 | ||||||||||||||||||||||||||||
Total | $ | 2,091,750 | $ | 2,901,292 | $ | 2,069,341 | $ | 3,738,221 | ||||||||||||||||||||||||
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Derivative Instruments, Gain (Loss) | ||||||||||||||||
Schedule of Derivative Instruments | As of March 29, 2015, the notional amount and unrealized gain on the effective portion of the Company’s outstanding foreign exchange forward contracts to purchase Japanese yen that are designated as cash flow and sell Japanese yen that are designated as net investment hedges are shown in both Japanese yen and U.S. dollar, based upon the exchange rate at March 29, 2015, as follows: | |||||||||||||||
Notional Amount | Unrealized Gain | |||||||||||||||
(Japanese yen, in billions) | (U.S. dollar, in thousands) | (U.S. dollar, in thousands) | ||||||||||||||
Foreign exchange forward contracts: | ||||||||||||||||
Cash flow hedges | ¥ | 9 | $ | 75,671 | $ | 580 | ||||||||||
Net investment hedges | (20.0 | ) | (167,980 | ) | 1,312 | |||||||||||
Foreign exchange forward contracts | ¥ | (11.0 | ) | $ | (92,309 | ) | $ | 1,892 | ||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Gross fair value of derivative contracts was as follows: | |||||||||||||||
Derivative assets reported in | ||||||||||||||||
Other Current Assets | Other Non-current Assets | |||||||||||||||
March 29, | December 28, | March 29, | December 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Foreign exchange forward contracts designated | $ | 2,643 | $ | — | $ | — | $ | — | ||||||||
Foreign exchange forward contracts not designated | 600 | 4,800 | — | — | ||||||||||||
Total derivatives | $ | 3,243 | $ | 4,800 | $ | — | $ | — | ||||||||
Derivative liabilities reported in | ||||||||||||||||
Other Current Accrued Liabilities | Non-current Liabilities | |||||||||||||||
March 29, | December 28, | March 29, | December 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Foreign exchange forward contracts designated | $ | — | $ | 1,472 | $ | — | $ | — | ||||||||
Foreign exchange forward contracts not designated | 1,448 | 6,752 | — | — | ||||||||||||
Total derivatives | $ | 1,448 | $ | 8,224 | $ | — | $ | — | ||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The impact of the effective portion of designated cash flow and net investment derivative contracts on the Company’s results of operations was as follows: | |||||||||||||||
Three months ended | ||||||||||||||||
Amount of loss | Amount of loss reclassified | |||||||||||||||
recognized in OCI | from AOCI to earnings | |||||||||||||||
March 29, | March 30, | March 29, | March 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Foreign exchange forward contracts: | ||||||||||||||||
Cash flow hedges | $ | 849 | $ | 13,468 | $ | (11,605 | ) | $ | (1,564 | ) | ||||||
Net investment hedges | 1,312 | — | — | — | ||||||||||||
Foreign exchange forward contracts | $ | 2,161 | $ | 13,468 | $ | (11,605 | ) | $ | (1,564 | ) | ||||||
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): | |||||||||||||||
Three months ended | ||||||||||||||||
March 29, | March 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
(In thousands) | ||||||||||||||||
Foreign exchange forward contracts | $ | (159 | ) | $ | (458 | ) | ||||||||||
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: | |||||||||||||||
Three months ended | ||||||||||||||||
March 29, | March 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
(In thousands) | ||||||||||||||||
Gain (loss) on foreign exchange forward contracts including forward point income | $ | (559 | ) | $ | 2,186 | |||||||||||
Loss from revaluation of foreign currency exposures hedged by foreign exchange forward contracts | $ | (3,306 | ) | $ | (1,743 | ) |
Balance_Sheet_Information_Tabl
Balance Sheet Information (Tables) | 3 Months Ended | ||||||||||
Mar. 29, 2015 | |||||||||||
Balance Sheet Information [Abstract] | |||||||||||
Accounts Receivable, net | Accounts receivable, net was as follows: | ||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Accounts receivable | $ | 780,504 | $ | 1,134,254 | |||||||
Allowance for doubtful accounts | (8,784 | ) | (9,622 | ) | |||||||
Promotions, price protection and other activities | (182,474 | ) | (282,156 | ) | |||||||
Total accounts receivable, net | $ | 589,246 | $ | 842,476 | |||||||
Inventory | Inventory was as follows: | ||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Raw material | $ | 366,388 | $ | 369,860 | |||||||
Work-in-process | 109,101 | 138,594 | |||||||||
Finished goods | 237,564 | 189,557 | |||||||||
Total inventory | $ | 713,053 | $ | 698,011 | |||||||
Other Current Assets | Other current assets were as follows: | ||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Income tax receivables | $ | 95,217 | $ | 18,579 | |||||||
Other tax-related receivables | 73,528 | 84,432 | |||||||||
Other non-trade receivables | 68,947 | 69,033 | |||||||||
Prepaid expenses | 20,878 | 18,579 | |||||||||
Other current assets | 32,338 | 24,369 | |||||||||
Total other current assets | $ | 290,908 | $ | 214,992 | |||||||
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: | ||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Notes receivable, Flash Partners Ltd. | $ | 28,569 | $ | 12,454 | |||||||
Notes receivable, Flash Alliance Ltd. | 297,034 | 292,677 | |||||||||
Notes receivable, Flash Forward Ltd. | 157,550 | 161,906 | |||||||||
Investment in Flash Partners Ltd. | 170,036 | 167,102 | |||||||||
Investment in Flash Alliance Ltd. | 254,652 | 249,459 | |||||||||
Investment in Flash Forward Ltd. | 81,837 | 79,219 | |||||||||
Total notes receivable and investments in Flash Ventures | $ | 989,678 | $ | 962,817 | |||||||
Other Noncurrent Assets | Other non-current assets were as follows: | ||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Prepaid tax on intercompany transactions | $ | 33,179 | $ | 33,375 | |||||||
Long-term income tax receivable | 20,454 | — | |||||||||
Other non-current assets | 71,563 | 75,302 | |||||||||
Total other non-current assets | $ | 125,196 | $ | 108,677 | |||||||
Other Current Accrued Liabilities | Other current accrued liabilities were as follows: | ||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Accrued payroll and related expenses | $ | 152,663 | $ | 233,702 | |||||||
Taxes payable | 34,877 | 74,079 | |||||||||
Derivative contract payables | 1,448 | 8,224 | |||||||||
Other current accrued liabilities | 220,446 | 190,288 | |||||||||
Total other current accrued liabilities | $ | 409,434 | $ | 506,293 | |||||||
Noncurrent liabilities | Non-current liabilities were as follows: | ||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Income tax liabilities | $ | 126,327 | $ | 132,320 | |||||||
Deferred revenue | 22,792 | 31,066 | |||||||||
Deferred tax liabilities | 239 | 22,360 | |||||||||
Other non-current liabilities | 57,976 | 59,808 | |||||||||
Total non-current liabilities | $ | 207,334 | $ | 245,554 | |||||||
Schedule of Product Warranty Liability | The liability for warranty expense is included in Other current accrued liabilities and Non-current liabilities in the Condensed Consolidated Balance Sheets, and the activity was as follows: | ||||||||||
Three months ended | |||||||||||
March 29, | March 30, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Balance, beginning of period | $ | 48,555 | $ | 43,624 | |||||||
Additions and adjustments to cost of revenue | 244 | 7,431 | |||||||||
Usage | (4,167 | ) | (3,490 | ) | |||||||
Balance, end of period | $ | 44,632 | $ | 47,565 | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCI presented in the Condensed Consolidated Balance Sheets consists of unrealized gains and losses on available-for-sale investments, foreign currency translation and cash flow hedging activities, net of tax, for all periods presented: | ||||||||||
March 29, | December 28, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Accumulated net unrealized gain (loss) on: | |||||||||||
Available-for-sale investments | $ | 5,461 | $ | 3,359 | |||||||
Foreign currency translation | (186,777 | ) | (197,252 | ) | |||||||
Cash flow hedging activities | (1,725 | ) | (14,179 | ) | |||||||
Total accumulated other comprehensive loss | $ | (183,041 | ) | $ | (208,072 | ) | |||||
Allocation Of Amount Of Income Tax Benefit Expense | The amount of income tax expense allocated to the unrealized gain (loss) on available-for-sale investments and foreign currency translation activities was as follows: | ||||||||||
Three months ended | |||||||||||
March 29, | March 30, | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Available-for-sale investments | $ | 1,099 | $ | 377 | |||||||
Foreign currency translation | 1,779 | 3,771 | |||||||||
Total income tax expense allocated | $ | 2,878 | $ | 4,148 | |||||||
Reclassification Of Accumulated Other Comprehensive Income Amounts | The significant amounts reclassified out of each component of AOCI were as follows: | ||||||||||
Three months ended | |||||||||||
AOCI Component | March 29, | March 30, | Statement of Operations | ||||||||
2015 | 2014 | Line Item | |||||||||
(In thousands) | |||||||||||
Unrealized gain on available-for-sale investments | $ | 1,997 | $ | 570 | Interest (expense) and other income (expense), net | ||||||
Tax impact | (722 | ) | (195 | ) | Provision for (benefit from) income taxes | ||||||
Unrealized gain on available-for-sale investments, net of tax | 1,275 | 375 | |||||||||
Unrealized holding loss on cash flow hedging activities: | |||||||||||
Foreign exchange contracts | (11,605 | ) | (1,361 | ) | Cost of revenue | ||||||
Foreign exchange contracts | — | (203 | ) | Research and development | |||||||
Loss on cash flow hedging activities | (11,605 | ) | (1,564 | ) | |||||||
Total reclassifications for the period, net of tax | $ | (10,330 | ) | $ | (1,189 | ) |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | Goodwill balances as of March 29, 2015 and December 28, 2014 were as follows: | |||||||||||||||
Carrying | ||||||||||||||||
Amount | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance, beginning of year and end of period | $ | 831,328 | ||||||||||||||
Intangible Assets | Intangible asset balances were as follows: | |||||||||||||||
March 29, 2015 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | |||||||||||||
(In thousands) | ||||||||||||||||
Developed product technology | $ | 451,560 | $ | (117,050 | ) | $ | — | $ | 334,510 | |||||||
Customer relationships | 64,600 | (31,459 | ) | — | 33,141 | |||||||||||
Trademarks and trade names | 62,500 | (10,626 | ) | — | 51,874 | |||||||||||
Acquisition-related intangible assets | 578,660 | (159,135 | ) | — | 419,525 | |||||||||||
Technology licenses and patents | 102,000 | (83,667 | ) | — | 18,333 | |||||||||||
Total intangible assets subject to amortization | 680,660 | (242,802 | ) | — | 437,858 | |||||||||||
Acquired in-process research and development | 61,000 | — | (61,000 | ) | — | |||||||||||
Total intangible assets | $ | 741,660 | $ | (242,802 | ) | $ | (61,000 | ) | $ | 437,858 | ||||||
December 28, 2014 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||
(In thousands) | ||||||||||||||||
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 | |||||||||
Estimated Amortization Expense of Intangible Assets | The annual expected amortization expense of intangible assets subject to amortization as of March 29, 2015 was as follows: | |||||||||||||||
Acquisition-related Intangible Assets | Technology Licenses and Patents | |||||||||||||||
(In thousands) | ||||||||||||||||
Year: | ||||||||||||||||
2015 (remaining 9 months) | $ | 126,133 | $ | 15,000 | ||||||||||||
2016 | 126,231 | 3,333 | ||||||||||||||
2017 | 107,176 | — | ||||||||||||||
2018 | 53,160 | — | ||||||||||||||
2019 | 6,825 | — | ||||||||||||||
Total intangible assets subject to amortization | $ | 419,525 | $ | 18,333 | ||||||||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Debt Instrument | ||||||||
Schedule of Long-term Debt Instruments | The following table reflects the carrying values of the Company’s convertible debt: | |||||||
March 29, | December 28, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
1.5% Notes due 2017 | $ | 996,720 | $ | 996,788 | ||||
Less: Unamortized bond discount | (116,067 | ) | (127,143 | ) | ||||
Net carrying amount of 1.5% Notes due 2017 | 880,653 | 869,645 | ||||||
0.5% Notes due 2020 | 1,500,000 | 1,500,000 | ||||||
Less: Unamortized bond discount | (288,903 | ) | (300,304 | ) | ||||
Net carrying amount of 0.5% Notes due 2020 | 1,211,097 | 1,199,696 | ||||||
Total convertible debt | 2,091,750 | 2,069,341 | ||||||
Less: Convertible short-term debt | (880,653 | ) | (869,645 | ) | ||||
Convertible long-term debt | $ | 1,211,097 | $ | 1,199,696 | ||||
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: | |||||||
Three months ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Contractual interest coupon | $ | 3,738 | $ | 3,750 | ||||
Amortization of bond issuance costs | 665 | 667 | ||||||
Amortization of bond discount | 10,873 | 10,192 | ||||||
Total interest cost recognized | $ | 15,276 | $ | 14,609 | ||||
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: | |||||||
Three months ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Contractual interest coupon | $ | 1,875 | $ | 1,875 | ||||
Amortization of bond issuance costs | 627 | 659 | ||||||
Amortization of bond discount | 11,254 | 10,771 | ||||||
Total interest cost recognized | $ | 13,756 | $ | 13,305 | ||||
Equity_and_ShareBased_Compensa
Equity and Share-Based Compensation (Tables) | 3 Months Ended | ||||||||||||
Mar. 29, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Dividends Declared | During the three months ended March 29, 2015, the Company’s Board of Directors declared the following dividend: | ||||||||||||
Declaration Date | Dividend per Share | Record Date | Total Amount Declared | Payment Date | |||||||||
(In millions) | |||||||||||||
January 20, 2015 | $ | 0.3 | March 2, 2015 | $ | 65.9 | March 23, 2015 | |||||||
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 was estimated using the following weighted-average assumptions: | ||||||||||||
Three months ended | |||||||||||||
March 29, | March 30, | ||||||||||||
2015 | 2014 | ||||||||||||
Dividend yield | 1.52% | 1.25% | |||||||||||
Expected volatility | 0.32 | 0.32 | |||||||||||
Risk-free interest rate | 1.18% | 1.22% | |||||||||||
Expected term | 4.2 years | 4.4 years | |||||||||||
Estimated annual forfeiture rate | 8.79% | 8.51% | |||||||||||
Weighted-average fair value at grant date | $19.56 | $18.53 | |||||||||||
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: | ||||||||||||
Three months ended | |||||||||||||
March 29, | March 30, | ||||||||||||
2015 | 2014 | ||||||||||||
Dividend yield | 1.52% | 1.25% | |||||||||||
Expected volatility | 0.36 | 0.31 | |||||||||||
Risk-free interest rate | 0.07% | 0.08% | |||||||||||
Expected term | ½ year | ½ year | |||||||||||
Weighted-average fair value at purchase date | $20.20 | $17.25 | |||||||||||
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 March 29, 2015 and changes during the three months ended March 29, 2015 are presented below: | ||||||||||||
Shares | Weighted-Average Exercise Price Per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(In thousands) | (Years) | (In thousands) | |||||||||||
Options and SARs outstanding as of December 28, 2014 | 4,090 | $51.94 | 4.5 | $ | 202,044 | ||||||||
Granted | 936 | $82.30 | |||||||||||
Exercised | (266 | ) | $41.25 | $ | 163,623 | ||||||||
Forfeited | (38 | ) | $62.41 | ||||||||||
Expired | (2 | ) | $27.02 | ||||||||||
Options and SARs outstanding as of March 29, 2015 | 4,720 | $58.49 | 4.8 | $ | 58,404 | ||||||||
Options and SARs vested and expected to vest after March 29, 2015, net of forfeitures | 4,384 | $57.35 | 4.7 | $ | 57,300 | ||||||||
Options and SARs exercisable as of March 29, 2015 | 1,853 | $44.26 | 3.4 | $ | 40,054 | ||||||||
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 months ended March 29, 2015 is presented below: | ||||||||||||
Shares | Weighted-Average Grant Date Fair Value Per Share | Aggregate Intrinsic Value | |||||||||||
(In thousands) | (In thousands) | ||||||||||||
Non-vested share units as of December 28, 2014 | 5,587 | $67.18 | $ | 375,366 | |||||||||
Granted | 2,043 | $81.98 | |||||||||||
Vested | (1,332 | ) | $59.78 | $ | 109,863 | ||||||||
Forfeited | (124 | ) | $77.21 | ||||||||||
Non-vested share units as of March 29, 2015 | 6,174 | $67.18 | $ | 453,805 | |||||||||
Share-based compensation expense | The following tables set forth the detailed allocation of the share-based compensation expense: | ||||||||||||
Three months ended | |||||||||||||
March 29, | March 30, | ||||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Share‑based compensation expense by caption: | |||||||||||||
Cost of revenue | $ | 4,062 | $ | 2,610 | |||||||||
Research and development | 21,043 | 15,675 | |||||||||||
Sales and marketing | 9,535 | 6,257 | |||||||||||
General and administrative | 6,770 | 5,488 | |||||||||||
Total share‑based compensation expense | 41,410 | 30,030 | |||||||||||
Total tax benefit recognized | (11,069 | ) | (8,776 | ) | |||||||||
Decrease in net income | $ | 30,341 | $ | 21,254 | |||||||||
Share‑based compensation expense by type of award: | |||||||||||||
Stock options | $ | 8,028 | $ | 7,924 | |||||||||
RSUs | 30,225 | 19,465 | |||||||||||
ESPP | 3,157 | 2,641 | |||||||||||
Total share‑based compensation expense | 41,410 | 30,030 | |||||||||||
Total tax benefit recognized | (11,069 | ) | (8,776 | ) | |||||||||
Decrease in net income | $ | 30,341 | $ | 21,254 | |||||||||
Fair value of options and RSUs | The total grant date fair value of options and RSUs vested during the period was as follows: | ||||||||||||
Three months ended | |||||||||||||
March 29, | March 30, | ||||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Options | $ | 10,787 | $ | 10,228 | |||||||||
RSUs | 79,628 | 49,866 | |||||||||||
Total grant date fair value of options and RSUs vested during the period | $ | 90,415 | $ | 60,094 | |||||||||
Restructuring_and_Other_Relate1
Restructuring and Other Related Activities (Tables) | 3 Months Ended | |||||||||||
Mar. 29, 2015 | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Restructuring and other | The Company recorded the following in Restructuring and other: | |||||||||||
Three months ended | ||||||||||||
March 29, | ||||||||||||
2015 | ||||||||||||
(In thousands) | ||||||||||||
Restructuring costs | $ | 4,250 | ||||||||||
Other costs | 36,291 | |||||||||||
Total restructuring and other | $ | 40,541 | ||||||||||
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 March 29, 2015: | |||||||||||
Severance and Benefits | Other | Total | ||||||||||
Charges | ||||||||||||
(In thousands) | ||||||||||||
Accrual balance at December 28, 2014 | $ | 4,771 | $ | 40 | $ | 4,811 | ||||||
Charges | 1,147 | 3,128 | 4,275 | |||||||||
Adjustments | (25 | ) | — | (25 | ) | |||||||
Cash payments | (3,868 | ) | (85 | ) | (3,952 | ) | ||||||
Non-cash items | — | (1,126 | ) | (1,126 | ) | |||||||
Accrual balance at March 29, 2015 | $ | 2,025 | $ | 1,957 | $ | 3,983 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Income Tax Contingency | ||||||||
Income Tax Expense and Effective Tax Rate | The following table presents the provision for income taxes and the effective tax rate: | |||||||
Three months ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
(In thousands, except percentages) | ||||||||
Provision for (benefit from) income taxes | $ | (5,408 | ) | $ | 140,591 | |||
Tax rate | (16.1 | %) | 34.3 | % |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
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: | |||||||
Three months ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
(In thousands, except per share amounts) | ||||||||
Numerator for basic net income per share: | ||||||||
Net income | $ | 39,025 | $ | 268,948 | ||||
Denominator for basic net income per share: | ||||||||
Weighted-average common shares outstanding | 211,428 | 225,845 | ||||||
Basic net income per share | $ | 0.18 | $ | 1.19 | ||||
Numerator for diluted net income per share: | ||||||||
Net income | $ | 39,025 | $ | 268,948 | ||||
Denominator for diluted net income per share: | ||||||||
Weighted-average common shares outstanding | 211,428 | 225,845 | ||||||
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 | 2,581 | 3,103 | ||||||
1.5% Notes due 2017 | 7,427 | 5,702 | ||||||
Warrants issued in conjunction with the 1.5% Notes due 2017 | 2,613 | 264 | ||||||
Shares used in computing diluted net income per share | 224,049 | 234,914 | ||||||
Diluted net income per share | $ | 0.17 | $ | 1.14 | ||||
Anti-dilutive shares excluded from net income per share calculation | 34,262 | 33,000 | ||||||
Commitments_Contingencies_and_1
Commitments Contingencies and Guarantees (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||
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 and U.S. dollar-equivalent based upon the exchange rate at March 29, 2015: | ||||||||||||||||||||
Master Lease Agreements by Execution Date | Lease Type | Lease Amounts | Expiration | ||||||||||||||||||
(Japanese yen, in billions) | (U.S. dollar, in thousands) | ||||||||||||||||||||
Flash Partners: | |||||||||||||||||||||
Mar-12 | Refinanced | ¥ | 1.6 | $ | 13,367 | 2015 | |||||||||||||||
Mar-14 | Initial | 4.4 | 36,719 | 2019 | |||||||||||||||||
Dec-14 | Initial | 3.2 | 27,255 | 2019 | |||||||||||||||||
9.2 | 77,341 | ||||||||||||||||||||
Flash Alliance: | |||||||||||||||||||||
Mar-12 | Initial | 4.8 | 40,115 | 2017 | |||||||||||||||||
Jul-12 | Refinanced | 8.9 | 74,880 | 2017 | |||||||||||||||||
Mar-14 | Initial | 4.3 | 35,799 | 2019 | |||||||||||||||||
May-14 | Initial | 5.7 | 48,041 | 2019 | |||||||||||||||||
Aug-14 | Initial | 6 | 50,859 | 2019 | |||||||||||||||||
Dec-14 | Initial | 5 | 41,916 | 2019 | |||||||||||||||||
Mar-15 | Initial | 10 | 83,956 | 2020 | |||||||||||||||||
44.7 | 375,566 | ||||||||||||||||||||
Flash Forward: | |||||||||||||||||||||
Nov-11 | Initial | 6.9 | 58,353 | 2016 | |||||||||||||||||
Mar-12 | Initial | 4.5 | 38,000 | 2017 | |||||||||||||||||
Jul-12 | Initial | 1.9 | 15,337 | 2017 | |||||||||||||||||
Dec-14 | Initial | 5 | 41,896 | 2019 | |||||||||||||||||
18.3 | 153,586 | ||||||||||||||||||||
Total guarantee obligations | ¥ | 72.2 | $ | 606,493 | |||||||||||||||||
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 March 29, 2015 in U.S. dollars based upon the Japanese yen to U.S. dollar exchange rate at March 29, 2015: | ||||||||||||||||||||
Annual Installments | Payment of Principal Amortization | Purchase Option Exercise Price at Final Lease Terms | Guarantee Amount | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Year 1 | $ | 158,063 | $ | 15,254 | $ | 173,317 | |||||||||||||||
Year 2 | 130,987 | 22,660 | 153,647 | ||||||||||||||||||
Year 3 | 83,840 | 46,528 | 130,368 | ||||||||||||||||||
Year 4 | 54,331 | 13,775 | 68,106 | ||||||||||||||||||
Year 5 | 28,927 | 36,239 | 65,166 | ||||||||||||||||||
Year 6 | 2,120 | 13,769 | 15,889 | ||||||||||||||||||
Total guarantee obligations | $ | 458,268 | $ | 148,225 | $ | 606,493 | |||||||||||||||
Contractual Obligations | Contractual cash obligations and commitments as of March 29, 2015 were as follows: | ||||||||||||||||||||
Total | 1 Year (Remaining 9 months in 2015) | 2 - 3 Years (2016 and 2017) | 4 - 5 Years (2018 and 2019) | More than 5 Years (Beyond 2019) | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Facility and other operating leases | $ | 64,335 | (4) | $ | 12,202 | $ | 21,821 | $ | 15,802 | $ | 14,510 | ||||||||||
Flash Ventures and other related commitments(1) | 3,324,907 | (4)(5) | 1,000,762 | 1,296,618 | 754,370 | 273,157 | |||||||||||||||
Convertible senior notes(2) | 2,579,120 | 14,976 | 1,041,644 | 15,000 | 1,507,500 | ||||||||||||||||
Noncancelable production purchase commitments(3) | 266,366 | (4) | 257,016 | 9,350 | — | — | |||||||||||||||
Capital equipment purchase commitments | 96,602 | 96,490 | 66 | 46 | — | ||||||||||||||||
Operating expense commitments | 60,915 | 59,963 | 952 | — | — | ||||||||||||||||
Total contractual cash obligations | $ | 6,392,245 | $ | 1,441,409 | $ | 2,370,451 | $ | 785,218 | $ | 1,795,167 | |||||||||||
(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, including research and development. Funding commitments assume no additional operating lease guarantees; additional operating lease guarantees can reduce funding commitments. | ||||||||||||||||||||
(2) | Includes principal and interest on both the 1.5% Notes due 2017 and the 0.5% Notes due 2020. See Note 7, “Financing Arrangements.” | ||||||||||||||||||||
(3) | Includes production purchase commitments to Flash Ventures and other suppliers. | ||||||||||||||||||||
(4) | 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 March 29, 2015. | ||||||||||||||||||||
(5) | Excludes amounts related to the master lease agreements’ purchase option exercise price at final lease term. | ||||||||||||||||||||
Off Balance Sheet Arrangements | Off-balance sheet arrangements were as follows: | ||||||||||||||||||||
March 29, | |||||||||||||||||||||
2015 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Guarantee of Flash Ventures equipment leases (1) | $ | 606,493 | |||||||||||||||||||
(1) | The Company’s guarantee obligation, net of cumulative lease payments, was 72.2 billion Japanese yen, or approximately $606 million based upon the exchange rate at March 29, 2015. | ||||||||||||||||||||
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 2015 through 2026. Future minimum lease payments are presented below: | ||||||||||||||||||||
Future minimum lease payments | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Year: | |||||||||||||||||||||
2015 (Remaining 9 months) | $ | 12,628 | |||||||||||||||||||
2016 | 11,986 | ||||||||||||||||||||
2017 | 9,981 | ||||||||||||||||||||
2018 | 8,791 | ||||||||||||||||||||
2019 | 7,011 | ||||||||||||||||||||
2020 and thereafter | 14,510 | ||||||||||||||||||||
Operating leases, gross | 64,907 | ||||||||||||||||||||
Sublease income to be received in the future under noncancelable subleases | (572 | ) | |||||||||||||||||||
Operating leases, net | $ | 64,335 | |||||||||||||||||||
Net rent expense | Net rent expense was as follows: | ||||||||||||||||||||
Three months ended | |||||||||||||||||||||
March 29, | March 30, | ||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Rent expense, net | $ | 4,080 | $ | 1,624 | |||||||||||||||||
Related_Parties_and_Strategic_1
Related Parties and Strategic Investments (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
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. 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. | |||||||
March 29, | December 28, | |||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
Notes receivable | $ | 483 | $ | 467 | ||||
Equity investments | 507 | 496 | ||||||
Operating lease guarantees | 606 | 551 | ||||||
Maximum estimable loss exposure | $ | 1,596 | $ | 1,514 | ||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Details Textuals) | Mar. 29, 2015 | Dec. 28, 2014 | Mar. 30, 2014 |
Organization and Presentation | |||
Exchange rate used to translate Japanese yen to U.S. dollar | 119.01 | 120.44 | 102.69 |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements-Cash and Mkt Securities (Details 1) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 | Mar. 30, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||||
Cash, Cash Equivalents and Marketable Securities [Abstract] | ||||
Cash and Cash Equivalents | $649,940 | $809,003 | $1,116,938 | $986,246 |
Short-term marketable securities | 1,347,541 | 1,455,509 | ||
Long-term marketable securities | 2,396,950 | 2,758,475 | ||
Total cash, cash equivalents and marketable securities | $4,394,431 | $5,022,987 |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements-Fin Assets and Liabilities 1 (Details 2) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Financial Liabilities measured at fair value on a recurring basis | ||
Derivative liabilities | $1,448,000 | $8,224,000 |
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 | 4,208,620,000 | 4,776,694,000 |
Financial Liabilities measured at fair value on a recurring basis | ||
Total financial liabilities | 1,448,000 | 8,224,000 |
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 | 439,248,000 | 558,295,000 |
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 | 3,769,372,000 | 4,218,399,000 |
Financial Liabilities measured at fair value on a recurring basis | ||
Total financial liabilities | 1,448,000 | 8,224,000 |
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 | 1,448,000 | 8,224,000 |
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 | 1,448,000 | 8,224,000 |
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 | 432,433,000 | 533,133,000 |
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 | 432,433,000 | 533,133,000 |
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 | 3,772,944,000 | 4,238,761,000 |
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 | 6,815,000 | 25,162,000 |
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 | 3,766,129,000 | 4,213,599,000 |
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 | 3,243,000 | 4,800,000 |
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 | 3,243,000 | 4,800,000 |
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 |
Investments_and_Fair_Value_Mea4
Investments and Fair Value Measurements-Fin Assets and Liabilities 2 (Details 3) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 | ||
Financial assets measured at fair value on a recurring basis | ||||
Short-term marketable securities | $1,347,541,000 | $1,455,509,000 | ||
Long-term marketable securities | 2,396,950,000 | 2,758,475,000 | ||
Other current assets | 290,908,000 | 214,992,000 | ||
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 | 4,208,620,000 | 4,776,694,000 | ||
Financial Liabilities measured at fair value on a recurring basis | ||||
Total financial liabilities | 1,448,000 | 8,224,000 | ||
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 | 439,248,000 | 558,295,000 | ||
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 | 3,769,372,000 | 4,218,399,000 | ||
Financial Liabilities measured at fair value on a recurring basis | ||||
Total financial liabilities | 1,448,000 | 8,224,000 | ||
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 | 1,448,000 | 8,224,000 | ||
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 | 1,448,000 | 8,224,000 | ||
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 | ||
Cash equivalents [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Financial assets measured at fair value on a recurring basis | ||||
Cash equivalents(1) | 460,886,000 | [1] | 557,910,000 | [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) | 432,433,000 | [1] | 533,133,000 | [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) | 28,453,000 | [1] | 24,777,000 | [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 | 1,347,541,000 | 1,455,509,000 | ||
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 | 1,458,000 | 3,327,000 | ||
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 | 1,346,083,000 | 1,452,182,000 | ||
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 | 2,396,950,000 | 2,758,475,000 | ||
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 | 5,357,000 | 21,835,000 | ||
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 | 2,391,593,000 | 2,736,640,000 | ||
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 | 3,243,000 | 4,800,000 | ||
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 | 3,243,000 | 4,800,000 | ||
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 $189.1 million and $251.1 million included in Cash and cash equivalents on the Condensed Consolidated Balance Sheets as of MarchB 29, 2015 and DecemberB 28, 2014, respectively. |
Investments_and_Fair_Value_Mea5
Investments and Fair Value Measurements-AFS Investments (Details 4) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 29, 2015 | Dec. 28, 2014 | |
Fixed Income Securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | $3,764,377,000 | $4,233,395,000 |
Gross Unrealized Gain | 10,284,000 | 10,106,000 |
Gross Unrealized Loss | -1,717,000 | -4,740,000 |
Fair Value | 3,772,944,000 | 4,238,761,000 |
U.S. Treasury securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 6,797,000 | 25,194,000 |
Gross Unrealized Gain | 19,000 | 0 |
Gross Unrealized Loss | -1,000 | -32,000 |
Fair Value | 6,815,000 | 25,162,000 |
U.S. Government-sponsored agency securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 22,414,000 | 7,511,000 |
Gross Unrealized Gain | 21,000 | 0 |
Gross Unrealized Loss | -11,000 | -18,000 |
Fair Value | 22,424,000 | 7,493,000 |
International Government Securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 58,032,000 | 82,033,000 |
Gross Unrealized Gain | 80,000 | 0 |
Gross Unrealized Loss | -21,000 | -314,000 |
Fair Value | 58,091,000 | 81,719,000 |
Corporate notes and bonds [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 635,937,000 | 774,869,000 |
Gross Unrealized Gain | 1,340,000 | 325,000 |
Gross Unrealized Loss | -411,000 | -2,052,000 |
Fair Value | 636,866,000 | 773,142,000 |
Asset-backed securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 138,814,000 | 171,221,000 |
Gross Unrealized Gain | 84,000 | 42,000 |
Gross Unrealized Loss | -86,000 | -353,000 |
Fair Value | 138,812,000 | 170,910,000 |
Mortgage-backed securities [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 31,253,000 | 48,378,000 |
Gross Unrealized Gain | 63,000 | 6,000 |
Gross Unrealized Loss | -108,000 | -173,000 |
Fair Value | 31,208,000 | 48,211,000 |
Municipal notes and bonds [Member] | ||
Available-for-sale investments | ||
Amortized Cost | 2,871,130,000 | 3,124,189,000 |
Gross Unrealized Gain | 8,677,000 | 9,733,000 |
Gross Unrealized Loss | -1,079,000 | -1,798,000 |
Fair Value | $2,878,728,000 | $3,132,124,000 |
Investments_and_Fair_Value_Mea6
Investments and Fair Value Measurements-AFS FV and Unrealized Losses (Details 5) (USD $) | 3 Months Ended |
Mar. 29, 2015 | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | $774,200,000 |
Less than 12 months, Gross Unrealized Loss | -1,623,000 |
Greater than 12 months, Fair Value | 25,645,000 |
Greater than 12 months, Gross Unrealized Loss | -94,000 |
U.S. Treasury securities [Member] | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | 1,570,000 |
Less than 12 months, Gross Unrealized Loss | -1,000 |
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 | 4,486,000 |
Less than 12 months, Gross Unrealized Loss | -11,000 |
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 | 22,853,000 |
Less than 12 months, Gross Unrealized Loss | -21,000 |
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 | 204,004,000 |
Less than 12 months, Gross Unrealized Loss | -404,000 |
Greater than 12 months, Fair Value | 4,413,000 |
Greater than 12 months, Gross Unrealized Loss | -7,000 |
Asset-backed securities [Member] | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | 74,869,000 |
Less than 12 months, Gross Unrealized Loss | -84,000 |
Greater than 12 months, Fair Value | 1,248,000 |
Greater than 12 months, Gross Unrealized Loss | -2,000 |
Mortgage-backed Securities [Member] | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | 13,923,000 |
Less than 12 months, Gross Unrealized Loss | -88,000 |
Greater than 12 months, Fair Value | 4,942,000 |
Greater than 12 months, Gross Unrealized Loss | -20,000 |
Municipal notes and bonds [Member] | |
Available-for-sale securities that were in an unrealized gain position | |
Less than 12 months, Fair Value | 452,495,000 |
Less than 12 months, Gross Unrealized Loss | -1,014,000 |
Greater than 12 months, Fair Value | 15,042,000 |
Greater than 12 months, Gross Unrealized Loss | ($65,000) |
Investments_and_Fair_Value_Mea7
Investments and Fair Value Measurements-AFS Realized Gains and Losses (Details 6) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Gross realized gains and (losses) on sales of available-for-sale securities | ||
Realized gains | $2,320 | $1,013 |
Realized losses | -323 | -443 |
Net realized gains | $1,997 | $570 |
Investments_and_Fair_Value_Mea8
Investments and Fair Value Measurements-Fixed Income Maturities (Details 7) (Fixed Income Securities [Member], USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Fixed Income Securities [Member] | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Due in one year or less | $711,897 | |
After one year through five years | 2,262,309 | |
After five years through ten years | 120,900 | |
After ten years | 669,271 | |
Total, Amortized Cost | 3,764,377 | 4,233,395 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | 713,355 | |
After one year through five years | 2,268,567 | |
After five years through ten years | 120,993 | |
After ten years | 670,029 | |
Total, Fair Value | $3,772,944 | $4,238,761 |
Investments_and_Fair_Value_Mea9
Investments and Fair Value Measurements-Debt Instrument FV (Details 8) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Related costs and the fair values based on quoted market prices | ||
Convertible debt, carrying value | $2,091,750 | $2,069,341 |
Convertible Debt [Member] | ||
Related costs and the fair values based on quoted market prices | ||
Convertible debt, carrying value | 2,091,750 | 2,069,341 |
Convertible debt, fair value | 2,901,292 | 3,738,221 |
1.5% Sr. Convertible Notes due 2017 [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Related costs and the fair values based on quoted market prices | ||
Convertible debt, carrying value | 880,653 | 869,645 |
Convertible debt, fair value | 1,363,792 | 1,948,721 |
0.5% Sr. Convertible Notes due 2020 [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Related costs and the fair values based on quoted market prices | ||
Convertible debt, carrying value | 1,211,097 | |
Convertible debt, fair value | 1,537,500 | |
0.5% Sr. Convertible Notes due 2020 [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Related costs and the fair values based on quoted market prices | ||
Convertible debt, carrying value | 1,199,696 | |
Convertible debt, fair value | $1,789,500 |
Recovered_Sheet1
Investments and Fair Value Measurements (Details Textual) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash | $189,100,000 | $251,100,000 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 1,500,000,000 | 0 |
Cost Method Investment [Abstract] | ||
Cost-method Investments, Aggregate Carrying Amount, Not Evaluated for Impairment | 30,100,000 | 29,300,000 |
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 | $0 |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities Derivatives and Hedging Activities - Outstanding Designated Forward Contracts (Details 1) (Foreign Exchange Forward Contract [Member]) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 |
Realized within twelve months [Member] | Realized within twelve months [Member] | Wafer Purchases [Member] | Wafer Purchases [Member] | Net Investment Hedging [Member] | Net Investment Hedging [Member] | |
USD ($) | JPY (¥) | Realized within twelve months [Member] | Realized within twelve months [Member] | Realized beyond twelve months [Member] | Realized beyond twelve months [Member] | |
USD ($) | JPY (¥) | USD ($) | JPY (¥) | |||
Derivatives and Hedging Activities | ||||||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $1,892 | $580 | $1,312 | |||
Cash Flow and Investment Hedges | ||||||
Foreign exchange forward contracts | ($92,309) | ¥ (11,000,000) | ($75,671) | ¥ (9,000,000) | ($167,980) | ¥ (20,000,000) |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities - Derivative Contracts (Details 2) (Foreign Exchange Forward Contract [Member], USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Other current assets [Member] | ||
Designated cash flow hedges, assets | ||
Foreign exchange forward contracts designated | $2,643,000 | $0 |
Non-designated cash flow hedges, assets | ||
Foreign exchange forward contracts not designated | 600,000 | 4,800,000 |
Total derivatives, assets | 3,243,000 | 4,800,000 |
Other non-current assets [Member] | ||
Designated cash flow hedges, assets | ||
Foreign exchange forward contracts designated | 0 | 0 |
Non-designated cash flow hedges, assets | ||
Foreign exchange forward contracts not designated | 0 | 0 |
Total derivatives, assets | 0 | 0 |
Other current accrued liabilities [Member] | ||
Designated cash flow hedges, liabilities | ||
Foreign exchange forward contracts designated | 0 | 1,472,000 |
Non-designated cash flow hedges, liabilities | ||
Foreign exchange forward contracts not designated | 1,448,000 | 6,752,000 |
Total derivatives, liabilities | 1,448,000 | 8,224,000 |
Non-current liabilities [Member] | ||
Designated cash flow hedges, liabilities | ||
Foreign exchange forward contracts designated | 0 | 0 |
Non-designated cash flow hedges, liabilities | ||
Foreign exchange forward contracts not designated | 0 | 0 |
Total derivatives, liabilities | $0 | $0 |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities - Impact on Earnings (Details 3) (Foreign Exchange Forward Contract [Member], USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Effective portion of designated cash flow derivative contracts | ||
Amount of loss recognized in OCI | $2,161,000 | $13,468,000 |
Amount of loss reclassified from AOCI to earnings | -11,605,000 | -1,564,000 |
Cash Flow Hedging [Member] | ||
Effective portion of designated cash flow derivative contracts | ||
Amount of loss recognized in OCI | 849,000 | 13,468,000 |
Amount of loss reclassified from AOCI to earnings | -11,605,000 | -1,564,000 |
Net Investment Hedging [Member] | ||
Effective portion of designated cash flow derivative contracts | ||
Amount of loss recognized in OCI | 1,312,000 | 0 |
Amount of loss reclassified from AOCI to earnings | $0 | $0 |
Derivatives_and_Hedging_Activi5
Derivatives and Hedging Activities - Ineffective Portion (Details 4) (Foreign Exchange Forward Contract [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Foreign Exchange Forward Contract [Member] | ||
Derivative Instruments, Gain (Loss) | ||
Foreign exchange forward contracts | ($159) | ($458) |
Derivatives_and_Hedging_Activi6
Derivatives and Hedging Activities - Effect of Non-designated Contracts (Details 5) (Foreign Exchange Forward Contract [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Foreign Exchange Forward Contract [Member] | ||
Effect of nondesignated derivative contracts | ||
Gain (loss) on foreign exchange forward contracts including forward point income | ($559) | $2,186 |
Loss from revaluation of foreign currency exposures hedged by foreign exchange forward contracts | ($3,306) | ($1,743) |
Derivatives_and_Hedging_Activi7
Derivatives and Hedging Activities Derivatives and Hedging Activities - Cash Flow Hedge (Details Textuals) (USD $) | Mar. 29, 2015 |
In Thousands, unless otherwise specified | |
Cash Flow Hedge Buy [Member] | |
Cash Flow and Investment Hedges | |
Notional amount of foreign exchange forward contracts | $226,300 |
Cash Flow Hedge Sell [Member] | |
Cash Flow and Investment Hedges | |
Notional amount of foreign exchange forward contracts | $162,300 |
Derivatives_and_Hedging_Activi8
Derivatives and Hedging Activities Derivatives and Hedging Activities - Netting Activities (Details Textuals) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Millions, unless otherwise specified | ||
Derivative, Netting Activities | ||
Derivative Asset, Subject to Netting Arrangement, Net | $3.10 | $2.80 |
Derivative Liability, Subject to Netting Arrangement, Net | $1.30 | $6.30 |
Balance_Sheet_InformationRecei
Balance Sheet Information-Receivables (Details 1) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, net | ||
Accounts receivable | $780,504 | $1,134,254 |
Allowance for doubtful accounts | -8,784 | -9,622 |
Promotions, price protection and other activities | -182,474 | -282,156 |
Total accounts receivable, net | $589,246 | $842,476 |
Balance_Sheet_InformationInven
Balance Sheet Information-Inventory (Details 2) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Inventory | ||
Raw material | $366,388 | $369,860 |
Work-in-process | 109,101 | 138,594 |
Finished goods | 237,564 | 189,557 |
Total inventory | $713,053 | $698,011 |
Balance_Sheet_InformationOther
Balance Sheet Information-Other Assets (Details 3) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Other Current Assets | ||
Income tax receivables | $95,217,000 | $18,579,000 |
Other tax-related receivables | 73,528,000 | 84,432,000 |
Other non-trade receivables | 68,947,000 | 69,033,000 |
Prepaid expenses | 20,878,000 | 18,579,000 |
Other current assets | 32,338,000 | 24,369,000 |
Total other current assets | 290,908,000 | 214,992,000 |
Other Assets, Noncurrent | ||
Prepaid tax on intercompany transactions | 33,179,000 | 33,375,000 |
Long-term income tax receivable | 20,454,000 | 0 |
Other non-current assets | 71,563,000 | 75,302,000 |
Total other non-current assets | $125,196,000 | $108,677,000 |
Balance_Sheet_InformationEquit
Balance Sheet Information-Equity Investments (Details 4) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable | ||
Related Party Transactions | $989,678 | $962,817 |
Flash Partners Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable | ||
Notes Receivable | 28,569 | 12,454 |
Investments | 170,036 | 167,102 |
Flash Alliance Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable | ||
Notes Receivable | 297,034 | 292,677 |
Investments | 254,652 | 249,459 |
Flash Forward Ltd [Member] | ||
Accounts, Notes, Loans and Financing Receivable | ||
Notes Receivable | 157,550 | 161,906 |
Investments | 81,837 | 79,219 |
Flash Ventures [Member] | ||
Accounts, Notes, Loans and Financing Receivable | ||
Related Party Transactions | $989,678 | $962,817 |
Balance_Sheet_InformationLiabi
Balance Sheet Information-Liabilities (Details 5) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Other Current Accrued Liabilities | ||
Accrued payroll and related expenses | $152,663 | $233,702 |
Taxes payable | 34,877 | 74,079 |
Derivative contract payables | 1,448 | 8,224 |
Other current accrued liabilities | 220,446 | 190,288 |
Total other current accrued liabilities | 409,434 | 506,293 |
Non-current liabilities | ||
Income tax liabilities | 126,327 | 132,320 |
Deferred revenue | 22,792 | 31,066 |
Deferred tax liabilities | 239 | 22,360 |
Other non-current liabilities | 57,976 | 59,808 |
Total non-current liabilities | $207,334 | $245,554 |
Balance_Sheet_InformationWarra
Balance Sheet Information-Warranty (Details 6) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, beginning of period | $48,555 | $43,624 |
Additions and adjustments to cost of revenue | 244 | 7,431 |
Usage | -4,167 | -3,490 |
Balance, end of period | $44,632 | $47,565 |
Balance_Sheet_InformationOCI_D
Balance Sheet Information-OCI (Details 7) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 |
Accumulated net unrealized gain (loss) on: | |||
Available-for-sale investments | $5,461 | $3,359 | |
Foreign currency translation | -186,777 | -197,252 | |
Cash flow hedging activities | -1,725 | -14,179 | |
Total accumulated other comprehensive loss | -183,041 | -208,072 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | |||
Available-for-sale investments | 1,099 | 377 | |
Foreign currency translation | 1,779 | 3,771 | |
Total income tax expense allocated | $2,878 | $4,148 |
Balance_Sheet_InformationAOCI_
Balance Sheet Information-AOCI (Details 8) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Other Comprehensive Income | ||
Cost of revenue | ($762,483,000) | ($741,039,000) |
Research and development | -222,726,000 | -198,829,000 |
Provision for (benefit from) income taxes | 5,408,000 | -140,591,000 |
Total reclassifications for the period, net of tax | -10,330,000 | -1,189,000 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Other Comprehensive Income | ||
Interest (expense) and other income (expense), net | 1,997,000 | 570,000 |
Provision for (benefit from) income taxes | -722,000 | -195,000 |
Total reclassifications for the period, net of tax | 1,275,000 | 375,000 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||
Other Comprehensive Income | ||
Cost of revenue | -11,605,000 | -1,361,000 |
Research and development | 0 | -203,000 |
Total reclassifications for the period, net of tax | ($11,605,000) | ($1,564,000) |
Balance_Sheet_Information_Deta
Balance Sheet Information (Details Textuals) (USD $) | 3 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 | |
Balance Sheet Information | |||
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | $1,500,000,000 | $0 | |
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | |
Provision for Loan and Lease Losses | 0 | 0 | |
Product Warranties Disclosures | |||
Product Warranty Accrual, Preexisting, Increase (Decrease) | ($3,100,000) |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets-Goodwill (Details 1) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets | ||
Balance, beginning of year | $831,328 | $831,328 |
Balance, end of period | $831,328 | $831,328 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets-Intangibles (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 29, 2015 | Dec. 28, 2014 | |
Intangible Assets | ||
Total intangible assets, gross | $741,660,000 | $858,844,000 |
Accumulated amortization | -242,802,000 | -316,493,000 |
Intangible asset adjustment | -61,000,000 | |
Total intangible assets, net | 437,858,000 | 542,351,000 |
Acquired in-process research and development [Member] | ||
Intangible Assets | ||
Indefinite-lived Intangible Assets Acquired | 61,000,000 | 61,000,000 |
Adjustments of indefinite lived intangible assets | -61,000,000 | |
Net carrying amount, indefinite-lived intangible assets | 0 | 61,000,000 |
Developed product technology [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 451,560,000 | 568,744,000 |
Accumulated amortization | -117,050,000 | -209,478,000 |
Adjustments of finite lived intangible assets | 0 | |
Total intangible assets subject to amortization | 334,510,000 | 359,266,000 |
Customer relationships [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 64,600,000 | 64,600,000 |
Accumulated amortization | -31,459,000 | -21,009,000 |
Adjustments of finite lived intangible assets | 0 | |
Total intangible assets subject to amortization | 33,141,000 | 43,591,000 |
Trademarks [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 62,500,000 | 62,500,000 |
Accumulated amortization | -10,626,000 | -7,395,000 |
Adjustments of finite lived intangible assets | 0 | |
Total intangible assets subject to amortization | 51,874,000 | 55,105,000 |
Technology licenses and patents [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 102,000,000 | 102,000,000 |
Accumulated amortization | -83,667,000 | -78,611,000 |
Adjustments of finite lived intangible assets | 0 | |
Total intangible assets subject to amortization | 18,333,000 | 23,389,000 |
Acquisition-related Intangible Assets [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 578,660,000 | 695,844,000 |
Accumulated amortization | -159,135,000 | -237,882,000 |
Adjustments of finite lived intangible assets | 0 | |
Total intangible assets subject to amortization | 419,525,000 | 457,962,000 |
Intangible assets subject to amortization [Member] | ||
Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 680,660,000 | 797,844,000 |
Accumulated amortization | -242,802,000 | -316,493,000 |
Adjustments of finite lived intangible assets | 0 | |
Total intangible assets subject to amortization | $437,858,000 | $481,351,000 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets-Intangible Amortization (Details 3) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Acquisition-related Intangible Assets [Member] | ||
Estimated Amortization Expense of Intangible Assets | ||
2015 (remaining 9 months) | $126,133,000 | |
2016 | 126,231,000 | |
2017 | 107,176,000 | |
2018 | 53,160,000 | |
2019 | 6,825,000 | |
Total intangible assets subject to amortization | 419,525,000 | 457,962,000 |
Technology licenses and patents [Member] | ||
Estimated Amortization Expense of Intangible Assets | ||
2015 (remaining 9 months) | 15,000,000 | |
2016 | 3,333,000 | |
2017 | 0 | |
2018 | 0 | |
2019 | 0 | |
Total intangible assets subject to amortization | $18,333,000 | $23,389,000 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 | |
Goodwill and Finite-lived Intangible Assets | |||
Impairment of acquisition-related intangible assets | $61,000,000 | $0 | |
Total intangible assets, net | 437,858,000 | 542,351,000 | |
Fusion-io Inc [Member] | |||
Goodwill and Finite-lived Intangible Assets | |||
Total intangible assets, net | 313,300,000 | ||
Acquired in-process research and development [Member] | |||
Goodwill and Finite-lived Intangible Assets | |||
Impairment of acquisition-related intangible assets | $61,000,000 |
Financing_ArrangementsCarrying
Financing Arrangements-Carrying Value and Interest (Details 1) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 | Aug. 31, 2010 | Oct. 23, 2013 |
Carrying Value of Convertible Notes | ||||
Convertible debt, carrying value | $2,091,750,000 | $2,069,341,000 | ||
Debt Summary | ||||
Convertible debt, carrying value | 2,091,750,000 | 2,069,341,000 | ||
Less: Convertible short-term debt | 880,653,000 | 869,645,000 | ||
Convertible long-term debt, carrying value | 1,211,097,000 | 1,199,696,000 | ||
1.5% Sr. Convertible Notes due 2017 [Member] | ||||
Carrying Value of Convertible Notes | ||||
Convertible debt, par value | 996,720,000 | 996,788,000 | 1,000,000,000 | |
Less: Unamortized bond discount | -116,067,000 | -127,143,000 | ||
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 | -288,903,000 | -300,304,000 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | 1.5% Sr. Convertible Notes due 2017 [Member] | ||||
Carrying Value of Convertible Notes | ||||
Convertible debt, carrying value | 880,653,000 | 869,645,000 | ||
Debt Summary | ||||
Convertible debt, carrying value | 880,653,000 | 869,645,000 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | ||||
Carrying Value of Convertible Notes | ||||
Convertible debt, carrying value | 1,211,097,000 | |||
Debt Summary | ||||
Convertible debt, carrying value | 1,211,097,000 | |||
Significant Other Observable Inputs (Level 2) [Member] | 0.5% Sr. Convertible Notes due 2020 [Member] | ||||
Carrying Value of Convertible Notes | ||||
Convertible debt, carrying value | 1,199,696,000 | |||
Debt Summary | ||||
Convertible debt, carrying value | $1,199,696,000 |
Financing_ArrangementsInterest
Financing Arrangements-Interest (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
1.5% Sr. Convertible Notes due 2017 [Member] | ||
Interest Cost Recognized For Convertible Notes | ||
Contractual interest coupon | $3,738 | $3,750 |
Amortization of bond issuance costs | 665 | 667 |
Amortization of bond discount | 10,873 | 10,192 |
Total interest cost recognized | 15,276 | 14,609 |
0.5% Sr. Convertible Notes due 2020 [Member] | ||
Interest Cost Recognized For Convertible Notes | ||
Contractual interest coupon | 1,875 | 1,875 |
Amortization of bond issuance costs | 627 | 659 |
Amortization of bond discount | 11,254 | 10,771 |
Total interest cost recognized | $13,756 | $13,305 |
Financing_Arrangements_Details
Financing Arrangements (Details Textuals) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||
Aug. 31, 2010 | Mar. 29, 2015 | Oct. 27, 2013 | Dec. 28, 2014 | Mar. 30, 2014 | Oct. 23, 2013 | |
Temporary Conversion Obligation [Abstract] | ||||||
Convertible short-term debt conversion obligation | $116,067,000 | $127,143,000 | ||||
Share Price | $64.59 | |||||
1.5% Sr. Convertible Notes due 2017 [Member] | ||||||
Debt Instrument Details | ||||||
Convertible debt, par value | 1,000,000,000 | 996,720,000 | 996,788,000 | |||
Debt Instrument, Interest Rate, Effective Percentage | 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 | 19.5456 | ||||
Conversion of notes, base conversion price | 1,000 | 1,000 | ||||
Debt Instrument, Convertible, Conversion Shares | 19,100,000 | 19,500,000 | ||||
Conversion price per share | $52.37 | $51.16 | ||||
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 | 116,067,000 | 127,143,000 | ||||
Remaining amortization period of convertible debt | 2 years 5 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 | 13,200,000 | 4,500,000 | ||||
Debt Conversion | ||||||
Debt Conversion, Converted Instrument, Shares Issued | 505 | |||||
Convertible Bond Hedge | ||||||
Bond hedge options, exercise price | $52.37 | $51.16 | ||||
Number of shares an entity can purchase from counterparties | 19,100,000 | 19,500,000 | ||||
Warrants | ||||||
Exercise price of warrants | $73.33 | $71.63 | ||||
Number of shares counterparties can purchase from entity | 19,100,000 | 19,500,000 | ||||
Number of warrants exercised | 0 | |||||
Temporary Conversion Obligation [Abstract] | ||||||
Temporary Equity, Par Value | 116,067,000 | |||||
Debt Instrument, Convertible, If-Converted Shares for Value in Excess of Principal | 4,000,000 | |||||
1.5% Sr. Convertible Notes due 2017 [Member] | Shares, Whole [Member] | ||||||
Convertible Bond Hedge | ||||||
Number of shares purchased under bond hedge | 27,124 | |||||
1.5% Sr. Convertible Notes due 2017 [Member] | Settled, Current Period [Member] | ||||||
Debt Conversion | ||||||
Extinguishment of Debt, Amount | 68,000 | |||||
1.5% Sr. Convertible Notes due 2017 [Member] | Settled, Current and Past Period [Member] | ||||||
Debt Conversion | ||||||
Extinguishment of Debt, Amount | 3,300,000 | |||||
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 | |||
Debt Instrument, Interest Rate, Effective Percentage | 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 | 10.875 | 10.847 | ||||
Conversion of notes, base conversion price | 1,000 | 1,000 | ||||
Debt Instrument, Convertible, Conversion Shares | 16,300,000 | 16,300,000 | ||||
Conversion price per share | $91.95 | $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 | |||||
Debt Instrument, Unamortized Bond Discount | 288,903,000 | 300,304,000 | ||||
Remaining amortization period of convertible debt | 5 years 7 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 | $10,700,000 | $13,500,000 | ||||
Convertible Bond Hedge | ||||||
Bond hedge options, exercise price | $91.95 | $92.19 | ||||
Number of shares an entity can purchase from counterparties | 16,300,000 | 16,300,000 | ||||
Number of shares purchased under bond hedge | 0 | |||||
Warrants | ||||||
Exercise price of warrants | $122.61 | $122.92 | ||||
Number of shares counterparties can purchase from entity | 16,300,000 | 16,300,000 | ||||
Number of warrants exercised | 0 |
Share_Repurchases_Details_Text
Share Repurchases (Details Textuals) (USD $) | 3 Months Ended | |||||
Share data in Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Jan. 21, 2015 | Jul. 31, 2013 | Dec. 20, 2012 | Oct. 27, 2011 |
Share Repurchase Program Summary | ||||||
Stock Repurchase Program, Authorized Amount | $2,500,000,000 | $2,500,000,000 | $750,000,000 | $500,000,000 | ||
Share Repurchase Program, Remaining Authorized Repurchase Amount | 2,380,000,000 | |||||
Payments for Repurchase of Common Stock During Period | 783,899,000 | 114,452,000 | ||||
Share-based Benefit Plan Repurchases | ||||||
Payments Related to Tax Withholding for Share-based Compensation | 33,800,000 | |||||
Structured Share Repurchase Program [Member] | ||||||
Share Repurchase Program Summary | ||||||
Share Repurchased and Retired During Program, Shares | 54.7 | |||||
Payments for Repurchase of Common Stock, Aggregate | 3,870,000,000 | |||||
Stock Repurchased and Retired During Period, Shares | 9.3 | |||||
Payments for Repurchase of Common Stock During Period | $750,000,000 |
Stockholders_Equity_and_ShareB1
Stockholders Equity and Share-Based Compensation Dividend Declaration (Details 1) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Dividends Payable | ||
Declaration Date | 20-Jan-15 | |
Cash dividends declared per share | $0.30 | $0.23 |
Record Date | 2-Mar-15 | |
Total Amount Declared | $65.90 | |
Payment Date | 23-Mar-15 |
Stockholders_Equity_and_ShareB2
Stockholders Equity and Share-Based Compensation Dividend Declaration (Detail Textual) (USD $) | 3 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Jun. 28, 2015 | |
Dividends Payable | |||
Declaration Date | 20-Jan-15 | ||
Record Date | 2-Mar-15 | ||
Payment Date | 23-Mar-15 | ||
Cash dividends declared per share | $0.30 | $0.23 | |
Subsequent Event [Member] | |||
Dividends Payable | |||
Declaration Date | 14-Apr-15 | ||
Record Date | 4-May-15 | ||
Payment Date | 26-May-15 | ||
Cash dividends declared per share | $0.30 |
ShareBased_CompensationValuati
Share-Based Compensation-Valuation Parameters (Details 1) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
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 | 1.52% | 1.25% |
Expected volatility | 32.00% | 32.00% |
Risk-free interest rate | 1.18% | 1.22% |
Expected term | 4 years 3 months | 4 years 5 months |
Estimated annual forfeiture rate | 8.79% | 8.51% |
Weighted-average fair value at grant date | $19.56 | $18.53 |
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 | 1.52% | 1.25% |
Expected volatility | 36.00% | 31.00% |
Risk-free interest rate | 0.07% | 0.08% |
Expected term | 0 years 6 months | 0 years 6 months |
Weighted-average fair value at grant date | $20.20 | $17.25 |
ShareBased_CompensationOption_
Share-Based Compensation-Option Rollforward (Details 2) (Employee Stock Option [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Dec. 28, 2014 |
Employee Stock Option [Member] | ||
Stock options and stock appreciation rights | ||
Options and SARs outstanding Beginning Balance, Shares | 4,090 | |
Options and SARs outstanding Beginning Balance, Weighted Average Exercise Price (per share) | $51.94 | |
Options and SARs outstanding Beginning Balance, Weighted Average Remaining Contractual Term | 4 years 10 months | 4 years 6 months |
Options and SARs outstanding Beginning Balance, Aggregate Intrinsic Value | $202,044 | |
Granted, Shares | 936 | |
Granted Weighted Average Exercise Price (per share) | $82.30 | |
Exercised, Shares | -266 | |
Exercised Weighted Average Exercise Price (per share) | $41.25 | |
Exercised Aggregate Intrinsic Value | 163,623 | |
Forfeited, Shares | -38 | |
Forfeited Weighted Average Exercise Price (per share) | $62.41 | |
Expired, Shares | -2 | |
Expired Weighted Average Exercise Price (per share) | $27.02 | |
Options and SARs outstanding Ending Balance, shares | 4,720 | 4,090 |
Options and SARs outstanding Ending Balance, Weighted Average Exercise Price (per share) | $58.49 | $51.94 |
Options and SARs outstanding Ending Balance, Weighted Average Remaining Contractual Term | 4 years 10 months | 4 years 6 months |
Options and SARs outstanding Ending Balance, Aggregate Intrinsic Value | 58,404 | 202,044 |
Stock options and stock appreciation rights, expected to vest | ||
Options and SARs vested and expected to vest, net of forfeitures, Shares | 4,384 | |
Options and SARs vested and expected to vest, net of forfeitures, Weighted Average Exercise Price (per share) | $57.35 | |
Options and SARs vested and expected to vest, net of forfeitures, Weighted Average Remaining Contractual Term | 4 years 8 months | |
Options and SARs vested and expected to vest, net of forfeitures, Aggregate Intrinsic Value | 57,300 | |
Stock options and stock appreciation rights, exercisable | ||
Options and SARs, Exercisable, shares | 1,853 | |
Options and SARs, Exercisable, Weighted Average Exercise Price | $44.26 | |
Options and SARs, Exercisable, Weighted Average Remaining Contractual Term | 3 years 5 months | |
Options and SARs, Exercisable, Intrinsic Value | $40,054 |
ShareBased_CompensationRSU_Rol
Share-Based Compensation-RSU Rollforward (Details 3) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 |
Restricted Stock Units (RSUs) [Member] | |
Summary of the changes in RSUs outstanding | |
Beginning Balance, Non-vested share units | 5,587 |
Beginning Balance, Non-vested share units Weighted Average Grant Date Fair Value (per share) | $67.18 |
Beginning Balance, Non-vested share units Aggregate Intrinsic Value | $375,366 |
Granted, Shares | 2,043 |
Granted Weighted Average Grant Date Fair Value (per share) | $81.98 |
Vested, Shares | -1,332 |
Vested Weighted Average Grant Date Fair Value (per share) | $59.78 |
Vested Aggregate Intrinsic Value | 109,863 |
Forfeited, Shares | -124 |
Forfeited Weighted Average Grant Date Fair Value (per share) | $77.21 |
Ending Balance, Non-vested share units | 6,174 |
Ending Balance, Non-vested share units Weighted Average Grant Date Fair Value (per share) | $67.18 |
Ending Balance, Non-vested share units Aggregate Intrinsic Value | $453,805 |
ShareBased_CompensationExpense
Share-Based Compensation-Expense Recognition (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Allocated Share-based Compensation Expense | $41,410 | $30,030 |
Total tax benefit recognized | -11,069 | -8,776 |
Decrease in net income | 30,341 | 21,254 |
Stock options and SARs [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Allocated Share-based Compensation Expense | 8,028 | 7,924 |
Restricted Stock Units (RSUs) [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Allocated Share-based Compensation Expense | 30,225 | 19,465 |
Employee Stock Purchase Plan Shares [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Allocated Share-based Compensation Expense | 3,157 | 2,641 |
Cost of revenue [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Allocated Share-based Compensation Expense | 4,062 | 2,610 |
Research and Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Allocated Share-based Compensation Expense | 21,043 | 15,675 |
Sales and marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Allocated Share-based Compensation Expense | 9,535 | 6,257 |
General and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Allocated Share-based Compensation Expense | $6,770 | $5,488 |
ShareBased_CompensationFair_Va
Share-Based Compensation-Fair Value of Vested Awards (Details 5) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Fair value of options and RSUs vested | ||
Options | $10,787 | $10,228 |
RSUs | 79,628 | 49,866 |
Total grant date fair value of vested options and RSUs | $90,415 | $60,094 |
ShareBased_CompensationActivit
Share-Based Compensation-Activity (Details Textuals 1) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2015 | Dec. 28, 2014 |
Compensation and Benefits | ||
Share-based compensation expense capitalized in inventory | $5.40 | $4.30 |
Employee Stock Option [Member] | ||
Compensation and Benefits | ||
Total unrecognized compensation cost, net of forfeitures, related to awards granted to employees | 44.1 | |
Employee service, Nonvested awards, Total Compensation Cost not yet Recognized, Period for Recognition | 2 years 7 months | |
Restricted Stock Units (RSUs) [Member] | ||
Compensation and Benefits | ||
Total unrecognized compensation cost, net of forfeitures, related to awards granted to employees | 346.1 | |
Employee service, Nonvested awards, Total Compensation Cost not yet Recognized, Period for Recognition | 2 years 11 months | |
Employee Stock Purchase Plan Shares [Member] | ||
Compensation and Benefits | ||
Total unrecognized compensation expense for ESPP | $5.50 | |
Employee service, Nonvested awards, Total Compensation Cost not yet Recognized, Period for Recognition | 0 years 5 months |
Restructuring_and_Other_Relate2
Restructuring and Other Related Activities Restructuring and Other Related Activities - Expense (Details 1) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Restructuring Cost and Reserve | ||
Restructuring costs | $4,250,000 | |
Other costs | 36,291,000 | |
Total restructuring and other | $40,541,000 | $0 |
Restructuring_and_Other_Relate3
Restructuring and Other Related Activities - Accrual (Details 2) (USD $) | 3 Months Ended |
Mar. 29, 2015 | |
Restructuring Cost and Reserve | |
Accrual balance at beginning of period | $4,811,000 |
Charges | 4,275,000 |
Adjustments | -25,000 |
Cash payments | -3,952,000 |
Non-cash items | -1,126,000 |
Accrual balance at end of period | 3,983,000 |
Employee Severance [Member] | |
Restructuring Cost and Reserve | |
Accrual balance at beginning of period | 4,771,000 |
Charges | 1,147,000 |
Adjustments | -25,000 |
Cash payments | -3,868,000 |
Non-cash items | 0 |
Accrual balance at end of period | 2,025,000 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve | |
Accrual balance at beginning of period | 40,000 |
Charges | 3,128,000 |
Adjustments | 0 |
Cash payments | -85,000 |
Non-cash items | -1,126,000 |
Accrual balance at end of period | $1,957,000 |
Restructuring_and_Other_Relate4
Restructuring and Other Related Activities (Details Textuals) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2015 |
Restructuring Cost and Reserve | |
Restructuring and Related Cost, Incurred Cost | $4,250 |
Restructuring Reserve, Period Increase (Decrease) | 4,275 |
Other costs | 36,291 |
Employee Severance [Member] | |
Restructuring Cost and Reserve | |
Restructuring Reserve, Period Increase (Decrease) | 1,147 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve | |
Restructuring Reserve, Period Increase (Decrease) | $3,128 |
Income_Taxes_Income_Taxes_Prov
Income Taxes Income Taxes - Provision (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Income Tax Contingency | ||
Provision for (benefit from) income taxes | ($5,408) | $140,591 |
Tax rate | -16.10% | 34.30% |
Income_Taxes_Details_Textuals
Income Taxes (Details Textuals) (USD $) | 3 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 | |
Income Tax Contingency | |||
Undistributed Earnings of Foreign Subsidiaries | $1,290,000,000 | ||
Provision For Income Taxes | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 120,400,000 | 125,200,000 | |
Unrecognized tax benefits that would impact the effective tax rate | 94,600,000 | ||
Unrecognized tax benefits income tax penalties and interest expense or income | -3,200,000 | 700,000 | |
Expected decrease in unrecognized tax benefits within the next twelve months | 33,400,000 | ||
Tax Adjustments, Settlements, and Unusual Provisions | $20,900,000 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Numerator for basic net income per share: | ||
Net income | $39,025 | $268,948 |
Denominator for basic net income per share: | ||
Weighted-average common shares outstanding | 211,428 | 225,845 |
Basic net income per share | $0.18 | $1.19 |
Numerator for diluted net income per share: | ||
Net income | $39,025 | $268,948 |
Denominator for diluted net income per share: | ||
Weighted-average common shares outstanding | 211,428 | 225,845 |
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 | 2,581 | 3,103 |
1.5% Notes due 2017 | 7,427 | 5,702 |
Warrants issued in conjunction with the 1.5% Notes due 2017 | 2,613 | 264 |
Shares used in computing diluted net income per share | 224,049 | 234,914 |
Diluted net income per share | $0.17 | $1.14 |
Antidilutive Shares | ||
Anti-dilutive shares excluded from net income per share calculation | 34,262 | 33,000 |
Commitments_Contingencies_and_2
Commitments, Contingencies and Guarantees-JV Leases (Details 1) | Mar. 29, 2015 | Dec. 28, 2014 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Ventures [Member] | Flash Ventures [Member] | |
USD ($) | 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] | Master Lease Agreement March Two Thousand Fifteen FAL [Member] | Master Lease Agreement March Two Thousand Fifteen FAL [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 (¥) | 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) | $606,493 | [1] | $551,000 | $375,566 | ¥ 44,700,000 | $40,115 | ¥ 4,800,000 | $74,880 | ¥ 8,900,000 | $35,799 | ¥ 4,300,000 | $48,041 | ¥ 5,700,000 | $50,859 | ¥ 6,000,000 | $41,916 | ¥ 5,000,000 | $83,956 | ¥ 10,000,000 | $77,341 | ¥ 9,200,000 | $13,367 | ¥ 1,600,000 | $36,719 | ¥ 4,400,000 | $27,255 | ¥ 3,200,000 | $153,586 | ¥ 18,300,000 | $58,353 | ¥ 6,900,000 | $38,000 | ¥ 4,500,000 | $15,337 | ¥ 1,900,000 | $41,896 | ¥ 5,000,000 | $606,493 | ¥ 72,200,000 |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 72.2B billion Japanese yen, or approximately $606B million based upon the exchange rate at MarchB 29, 2015. |
Commitments_Contingencies_and_3
Commitments, Contingencies and Guarantees-JV Lease Amounts (Details 2) | Mar. 29, 2015 | Dec. 28, 2014 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | |
In Thousands, unless otherwise specified | USD ($) | 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 | $173,317 | $158,063 | $15,254 | ||||
Year 2 | 153,647 | 130,987 | 22,660 | ||||
Year 3 | 130,368 | 83,840 | 46,528 | ||||
Year 4 | 68,106 | 54,331 | 13,775 | ||||
Year 5 | 65,166 | 28,927 | 36,239 | ||||
Year 6 | 15,889 | 2,120 | 13,769 | ||||
Guarantee of Flash Ventures equipment leases | $606,493 | [1] | $551,000 | $606,493 | ¥ 72,200,000 | $458,268 | $148,225 |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 72.2B billion Japanese yen, or approximately $606B million based upon the exchange rate at MarchB 29, 2015. |
Commitments_Contingencies_and_4
Commitments, Contingencies and Guarantees-Commitment Tbl (Details 3) (USD $) | Mar. 29, 2015 | |
Contractual Obligations | ||
Facility and other operating leases | $64,335,000 | |
Reimbursement for certain Flash Venture fixed costs | 3,324,907,000 | [1],[2],[3] |
Convertible senior notes principal and interest | 2,579,120,000 | [4] |
Contractual Obligation | 6,392,245,000 | |
1 Year (Remaining 9 months in 2015) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 1,000,762,000 | [1],[2],[3] |
Convertible senior notes principal and interest | 14,976,000 | [4] |
Contractual Obligation | 1,441,409,000 | |
2 - 3 Years (2016 and 2017) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 1,296,618,000 | [1],[2],[3] |
Convertible senior notes principal and interest | 1,041,644,000 | [4] |
Contractual Obligation | 2,370,451,000 | |
4 - 5 Years (2018 and 2019) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 754,370,000 | [1],[2],[3] |
Convertible senior notes principal and interest | 15,000,000 | [4] |
Contractual Obligation | 785,218,000 | |
More than 5 Years (Beyond 2019) | ||
Contractual Obligations | ||
Reimbursement for certain Flash Venture fixed costs | 273,157,000 | [1],[2],[3] |
Convertible senior notes principal and interest | 1,507,500,000 | [4] |
Contractual Obligation | 1,795,167,000 | |
Operating Lease Expense [Member] | ||
Contractual Obligations | ||
Facility and other operating leases | 64,335,000 | [1] |
Operating Lease Expense [Member] | 1 Year (Remaining 9 months in 2015) | ||
Contractual Obligations | ||
Facility and other operating leases | 12,202,000 | [1] |
Operating Lease Expense [Member] | 2 - 3 Years (2016 and 2017) | ||
Contractual Obligations | ||
Facility and other operating leases | 21,821,000 | [1] |
Operating Lease Expense [Member] | 4 - 5 Years (2018 and 2019) | ||
Contractual Obligations | ||
Facility and other operating leases | 15,802,000 | [1] |
Operating Lease Expense [Member] | More than 5 Years (Beyond 2019) | ||
Contractual Obligations | ||
Facility and other operating leases | 14,510,000 | [1] |
Capital Equipment Purchase Commitments [Member] | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 96,602,000 | |
Capital Equipment Purchase Commitments [Member] | 1 Year (Remaining 9 months in 2015) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 96,490,000 | |
Capital Equipment Purchase Commitments [Member] | 2 - 3 Years (2016 and 2017) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 66,000 | |
Capital Equipment Purchase Commitments [Member] | 4 - 5 Years (2018 and 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 46,000 | |
Capital Equipment Purchase Commitments [Member] | More than 5 Years (Beyond 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 0 | |
Operating Expense Commitments [Member] | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 60,915,000 | |
Operating Expense Commitments [Member] | 1 Year (Remaining 9 months in 2015) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 59,963,000 | |
Operating Expense Commitments [Member] | 2 - 3 Years (2016 and 2017) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 952,000 | |
Operating Expense Commitments [Member] | 4 - 5 Years (2018 and 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 0 | |
Operating Expense Commitments [Member] | More than 5 Years (Beyond 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 0 | |
Noncancelable Production Purchase Commitments [Member] | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 266,366,000 | [1],[5] |
Noncancelable Production Purchase Commitments [Member] | 1 Year (Remaining 9 months in 2015) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 257,016,000 | [1],[5] |
Noncancelable Production Purchase Commitments [Member] | 2 - 3 Years (2016 and 2017) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 9,350,000 | [1],[5] |
Noncancelable Production Purchase Commitments [Member] | 4 - 5 Years (2018 and 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | 0 | [1],[5] |
Noncancelable Production Purchase Commitments [Member] | More than 5 Years (Beyond 2019) | ||
Contractual Obligations | ||
Unrecorded Unconditional Purchase Obligation | $0 | [1],[5] |
[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 MarchB 29, 2015. | |
[2] | 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, including research and development. Funding commitments assume no additional operating lease guarantees; additional operating lease guarantees can reduce funding commitments. | |
[3] | Excludes amounts related to the master lease agreementsb purchase option exercise price at final lease term. | |
[4] | Includes principal and interest on both the 1.5%B Notes due 2017 and the 0.5%B Notes due 2020. | |
[5] | Includes production purchase commitments to Flash Ventures and other suppliers. |
Commitments_Contingencies_and_5
Commitments, Contingencies and Guarantees-Off-Balance Sheet Tbl (Details 4) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 | |
In Thousands, unless otherwise specified | |||
Guarantor Obligations | |||
Guarantee of Flash Ventures equipment leases (1) | $606,493 | [1] | $551,000 |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 72.2B billion Japanese yen, or approximately $606B million based upon the exchange rate at MarchB 29, 2015. |
Commitments_Contingencies_and_6
Commitments, Contingencies and Guarantees-Future Lease Obligation (Details 5) (USD $) | Mar. 29, 2015 |
In Thousands, unless otherwise specified | |
Operating leases future minimum payments | |
2015 (Remaining 9 months) | $12,628 |
2016 | 11,986 |
2017 | 9,981 |
2018 | 8,791 |
2019 | 7,011 |
2020 and thereafter | 14,510 |
Operating leases, gross | 64,907 |
Sublease income to be received in the future under noncancelable subleases | -572 |
Operating leases, net | $64,335 |
Commitments_Contingencies_and_7
Commitments, Contingencies and Guarantees-Rent Expense (Details 6) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Net rent expense | ||
Rent expense, net | $4,080 | $1,624 |
Commitments_Contingencies_and_8
Commitments, Contingencies and Guarantees-JV (Details Textual 1) | Mar. 29, 2015 | Dec. 28, 2014 | Mar. 29, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Mar. 29, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Mar. 29, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | |
USD ($) | USD ($) | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Partners Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Alliance Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Forward Ltd [Member] | Flash Ventures [Member] | Flash Ventures [Member] | Flash Ventures [Member] | Flash Ventures [Member] | ||
USD ($) | JPY (¥) | USD ($) | USD ($) | JPY (¥) | USD ($) | USD ($) | 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 | 10-Sep-04 | 7-Jul-06 | 7-Jul-06 | 13-Jul-10 | 13-Jul-10 | ||||||||||
Equity Investments | ||||||||||||||||
Notes Receivable, Related Parties, Noncurrent | $28,600,000 | $297,000,000 | $157,600,000 | |||||||||||||
Equity investment in business venture | 170,000,000 | 167,100,000 | 254,700,000 | 249,500,000 | 81,800,000 | 79,200,000 | ||||||||||
Cumulative translation adjustments | -186,777,000 | -197,252,000 | -5,300,000 | -7,300,000 | -42,500,000 | -45,500,000 | -27,400,000 | -28,400,000 | ||||||||
Master Lease Agreements | ||||||||||||||||
Guarantee of Flash Ventures equipment leases (1) | 606,493,000 | [1] | 551,000,000 | 77,341,000 | 9,200,000,000 | 375,566,000 | 44,700,000,000 | 153,586,000 | 18,300,000,000 | 606,493,000 | 72,200,000,000 | |||||
Master Lease Covenants | ||||||||||||||||
Joint Venture Master Equipment Lease Agreement Guarantor Equity Covenant | 1,510,000,000 | |||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $5,836,047,000 | $6,526,681,000 | ||||||||||||||
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 72.2B billion Japanese yen, or approximately $606B million based upon the exchange rate at MarchB 29, 2015. |
Commitments_Contingencies_and_9
Commitments, Contingencies and Guarantees-Indemnity (Details Textual 3) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
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 $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2015 |
Tax Commitment [Abstract] | |
Unrecognized Tax Benefits From Contractual Obligation | $126.30 |
Recovered_Sheet3
Commitments, Contingencies and Guarantees Commitments, Contingencies and Guarantees-Off-balance Sheet Arrangements (Details Textuals 5) | Mar. 29, 2015 | Dec. 28, 2014 | Mar. 29, 2015 | Mar. 29, 2015 | |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Flash Ventures [Member] | Flash Ventures [Member] | |
USD ($) | JPY (¥) | ||||
Master Lease Agreements | |||||
Guarantee of Flash Ventures equipment leases (1) | $606,493 | [1] | $551,000 | $606,493 | ¥ 72,200,000 |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 72.2B billion Japanese yen, or approximately $606B million based upon the exchange rate at MarchB 29, 2015. |
Related_Parties_and_Strategic_2
Related Parties and Strategic Investments (Details 1) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 | |
Maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate | |||
Guarantee of Flash Ventures equipment leases (1) | $606,493,000 | [1] | $551,000,000 |
Maximum estimable loss exposure | 1,596,000,000 | 1,514,000,000 | |
Notes Receivable [Member] | |||
Maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate | |||
Maximum estimable loss exposure | 483,000,000 | 467,000,000 | |
Equity Method Investments [Member] | |||
Maximum reasonably estimable loss exposure (excluding lost profits), based upon the exchange rate | |||
Maximum estimable loss exposure | $507,000,000 | $496,000,000 | |
[1] | The Companybs guarantee obligation, net of cumulative lease payments, was 72.2B billion Japanese yen, or approximately $606B million based upon the exchange rate at MarchB 29, 2015. |
Related_Parties_and_Strategic_3
Related Parties and Strategic Investments (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 | |
Related Parties and Strategic Investments | |||
Accounts payable balances due to related party | $147,870,000 | $136,051,000 | |
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 | 503,800,000 | 460,100,000 | |
Repayment of loan from Flash Ventures | 89,700,000 | 24,400,000 | |
Accounts payable balances due to related party | $147,900,000 | $136,100,000 | |
Flash Ventures [Member] | SanDisk Corporation [Member] | |||
Related Parties and Strategic Investments | |||
Percentage of ownership with Related party | 49.90% |