Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 29, 2018 | Oct. 25, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Qorvo, Inc. | |
Entity Central Index Key | 1,604,778 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --03-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 124,905,033 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 29, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 557,924 | $ 926,037 |
Short-term investments (Note 5) | 0 | |
Accounts receivable, less allowance of $177 and $134 as of September 29, 2018 and March 31, 2018, respectively | 491,183 | 345,957 |
Inventories (Note 3) | 474,532 | 472,292 |
Prepaid expenses | 26,313 | 23,909 |
Other receivables | 38,973 | 44,795 |
Other current assets | 30,845 | 30,815 |
Total current assets | 1,619,770 | 1,843,805 |
Property and equipment, net of accumulated depreciation of $1,130,891 at September 29, 2018 and $911,910 at March 31, 2018 | 1,401,865 | 1,374,112 |
Goodwill | 2,173,889 | 2,173,889 |
Intangible assets, net of accumulated amortization of $1,978,206 at September 29, 2018 and $1,711,520 at March 31, 2018 (Note 4) | 595,852 | 860,336 |
Long-term investments (Note 5) | 90,903 | 63,765 |
Other non-current assets | 64,782 | 65,612 |
Total assets | 5,947,061 | 6,381,519 |
Current liabilities: | ||
Accounts payable | 229,009 | 213,193 |
Accrued liabilities | 181,505 | 167,182 |
Other current liabilities | 51,869 | 60,904 |
Total current liabilities | 462,383 | 441,279 |
Long-term debt (Note 6 ) | 735,098 | 983,290 |
Deferred tax liabilities (Note 10) | 21,932 | 63,084 |
Other long-term liabilities | 95,511 | 118,302 |
Total liabilities | 1,314,924 | 1,605,955 |
Stockholders’ equity: | ||
Preferred stock, $.0001 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock and additional paid-in capital, $.0001 par value; 405,000,000 shares authorized; 125,598,000 and 126,322,000 shares issued and outstanding at June 30, 2018 and March 31, 2018, respectively | 5,089,331 | 5,237,085 |
Accumulated other comprehensive loss, net of tax | (5,008) | (2,752) |
Accumulated deficit | (452,186) | (458,769) |
Total stockholders’ equity | 4,632,137 | 4,775,564 |
Total liabilities and stockholders’ equity | $ 5,947,061 | $ 6,381,519 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 29, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 177 | $ 134 |
Property and equipment, accumulated depreciation | 1,130,891 | 911,910 |
Intangible assets, accumulated amortization | $ 1,978,206 | $ 1,711,520 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 405,000,000 | 405,000,000 |
Common stock, shares issued | 125,046,000 | 126,322,000 |
Common stock, shares outstanding | 125,046,000 | 126,322,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 884,443 | $ 821,583 | $ 1,577,113 | $ 1,462,414 |
Cost of goods sold | 530,929 | 500,561 | 986,866 | 905,015 |
Gross profit | 353,514 | 321,022 | 590,247 | 557,399 |
Operating expenses: | ||||
Research and development | 116,748 | 111,398 | 227,651 | 227,897 |
Selling, general and administrative | 139,507 | 138,867 | 275,437 | 278,298 |
Other operating expense | 6,782 | 21,193 | 15,897 | 29,469 |
Total operating expenses | 263,037 | 271,458 | 518,985 | 535,664 |
Income from operations | 90,477 | 49,564 | 71,262 | 21,735 |
Interest expense (Note 6) | (9,689) | (14,778) | (24,042) | (27,049) |
Interest income | 1,580 | 1,058 | 4,974 | 1,824 |
Other expense (Note 6) | (49,532) | (192) | (81,487) | (1,126) |
Income (loss) before income taxes | 32,836 | 35,652 | (29,293) | (4,616) |
Income tax (expense) benefit (Note 10) | (752) | 267 | 31,384 | 9,911 |
Net income | $ 32,084 | $ 35,919 | $ 2,091 | $ 5,295 |
Net income per share (Note 11): | ||||
Basic | $ 0.26 | $ 0.28 | $ 0.02 | $ 0.04 |
Diluted | $ 0.25 | $ 0.27 | $ 0.02 | $ 0.04 |
Weighted average shares of common stock outstanding (Note 11): | ||||
Basic | 125,643 | 127,257 | 125,859 | 127,109 |
Diluted | 128,550 | 130,778 | 128,977 | 131,062 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 32,084 | $ 35,919 | $ 2,091 | $ 5,295 |
Other comprehensive (loss) income: | ||||
Unrealized gain on marketable securities, net of tax | 85 | 38 | 90 | 99 |
Foreign currency translation adjustment, including intra-entity foreign currency transactions that are of a long-term investment nature | (181) | 106 | (2,394) | 722 |
Reclassification adjustments, net of tax: | ||||
Foreign currency gain included in net income | 0 | (581) | 0 | (581) |
Amortization of pension actuarial loss | 24 | 45 | 48 | 87 |
Other comprehensive (loss) income | (72) | (392) | (2,256) | 327 |
Total comprehensive income (loss) | $ 32,012 | $ 35,527 | $ (165) | $ 5,622 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 2,091 | $ 5,295 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 90,214 | 86,267 |
Intangible assets amortization (Note 4) | 266,708 | 270,546 |
Amortization of debt issuance cost and non-cash items (Note 6) | 82,539 | 464 |
Deferred income taxes | (42,962) | (17,290) |
Foreign currency adjustments | (2,020) | 1,553 |
(Income) loss on investments and other assets, net | (81) | 3,573 |
Stock-based compensation expense | 40,250 | 44,584 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (145,874) | (102,219) |
Inventories | 556 | (29,786) |
Prepaid expenses and other current and non-current assets | 1,589 | 12,157 |
Accounts payable and accrued liabilities | 23,980 | 55,620 |
Income tax (recoverable) / payable | (20,965) | (4,261) |
Other liabilities | (6,229) | (3,009) |
Net cash provided by operating activities | 289,796 | 323,494 |
Investing activities: | ||
Purchase of property and equipment | (113,666) | (192,219) |
Purchase of debt securities and other investments | (132,729) | 0 |
Proceeds from maturities of other investments | 133,132 | 0 |
Other investing activities | (19,492) | (23,028) |
Net cash used in investing activities | (132,755) | (215,247) |
Financing activities: | ||
Payment of debt (Note 6) | (954,745) | 0 |
Proceeds from debt issuances (Note 6) | 631,300 | 0 |
Repurchase of common stock, including transaction costs (Note 7) | (186,682) | (88,925) |
Proceeds from the issuance of common stock | 18,406 | 32,867 |
Tax withholding paid on behalf of employees for restricted stock units | (24,181) | (24,005) |
Other financing activities | (7,057) | 0 |
Net cash used in financing activities | (522,959) | (80,063) |
Effect of exchange rate changes on cash | (2,216) | 1,260 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (368,134) | 29,444 |
Cash, cash equivalents and restricted cash at the beginning of the period | 926,402 | 545,779 |
Cash, cash equivalents and restricted cash at the end of the period | 558,268 | 575,223 |
Capital expenditure adjustments included in accounts payable and accrued liabilities | $ 44,634 | $ 30,272 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying Condensed Consolidated Financial Statements of Qorvo, Inc. and Subsidiaries (together, the "Company" or "Qorvo") have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP"). The preparation of these financial statements requires management to make estimates and assumptions, which could differ materially from actual results. In addition, certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed, or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the financial statements include all adjustments (which are of a normal and recurring nature) necessary for the fair presentation of the results of the interim periods presented. These Condensed Consolidated Financial Statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in Qorvo’s Annual Report on Form 10-K for the fiscal year ended March 31, 2018 . The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company uses a 52- or 53-week fiscal year ending on the Saturday closest to March 31 of each year. The first fiscal quarter of each year ends on the Saturday closest to June 30, the second fiscal quarter of each year ends on the Saturday closest to September 30 and the third fiscal quarter of each year ends on the Saturday closest to December 31. Fiscal years 2019 and 2018 are 52-week years. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Sep. 29, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS The Company assesses recently issued accounting standards by the Financial Accounting Standards Board ("FASB") to determine the expected impacts on the Company's financial statements. The summary below describes impacts from newly issued standards as well as material updates to our previous assessments, if any, from Qorvo’s Annual Report on Form 10-K for the fiscal year ended March 31, 2018 . In January 2017, the FASB issued Accounting Standards Update ("ASU") 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." The new guidance clarifies the definition of a business and provides further guidance for evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. The new standard became effective for the Company in the first quarter of fiscal 2019. There was no impact to the Company's Condensed Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB’s Emerging Issues Task Force)." The new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The new standard became effective for the Company in the first quarter of fiscal 2019. The Company's historical policies were consistent with the new standard, and therefore, there was no impact to the Company's Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The new guidance requires lessees to recognize a right-of-use asset and a lease liability for all leases with a term longer than 12 months, including those previously described as operating leases. Consistent with current U.S. GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will primarily depend on its classification as a finance or operating lease. The new guidance will become effective for the Company in the first quarter of fiscal 2020. The Company expects the valuation of the right-of-use assets and lease liabilities, for leases previously described as operating leases, to be the present value of its forecasted future lease commitments, as determined by the standard. The Company is continuing to assess the overall impacts of the new standard, including the discount rate to be applied in these valuations. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The new guidance affects the accounting for equity investments, financial liabilities measured under the fair value option and presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the assessment of valuation allowances when recognizing deferred tax assets related to unrealized losses on available-for-sale debt securities. The new standard was adopted by the Company in the first quarter of fiscal 2019. There was no impact to the Company's Condensed Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," with several amendments subsequently issued. The new guidance provides an updated framework for revenue recognition, resulting in a single revenue model to be applied by reporting companies under U.S. GAAP. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted the standard in the first quarter of fiscal 2019 using the modified retrospective approach, under which the cumulative effect of adoption is recognized at the date of initial application. This standard did not have a material impact on the Company's Condensed Consolidated Financial Statements. The Company has implemented changes to its accounting policies, internal controls and disclosures to support the new standard; however, these changes were not material. See Note 8 for further disclosures resulting from the adoption of this new standard. |
Inventories
Inventories | 6 Months Ended |
Sep. 29, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The components of inventories, net of reserves, are as follows (in thousands): September 29, 2018 March 31, 2018 Raw materials $ 112,227 $ 110,389 Work in process 252,891 221,137 Finished goods 109,414 140,766 Total inventories $ 474,532 $ 472,292 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Total intangible assets decreased to $595.9 million as of September 29, 2018 , compared to $860.3 million as of March 31, 2018 . This decrease was due to amortization expense for the three and six months ended September 29, 2018 of $133.4 million and $266.7 million , respectively, primarily related to developed technology and customer relationships (which had net book values of $386.9 million and $196.8 million respectively, as of September 29, 2018 ). |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 6 Months Ended |
Sep. 29, 2018 | |
Investments and Fair Value Measurements [Abstract] | |
INVESTMENTS AND FAIR VALUE MEASUREMENTS | INVESTMENTS AND FAIR VALUE MEASUREMENTS Debt Securities The following is a summary of available-for-sale debt securities as of September 29, 2018 and March 31, 2018 (in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 29, 2018 Auction rate securities $ 1,950 $ — $ (17 ) $ 1,933 March 31, 2018 Auction rate securities $ 1,950 $ — $ (107 ) $ 1,843 The estimated fair value of available-for-sale debt securities was based on the prevailing market values on September 29, 2018 and March 31, 2018 . The Company determines the cost of an investment sold based on the specific identification method. The expected maturity distribution of available-for-sale debt securities is as follows (in thousands): September 29, 2018 March 31, 2018 Cost Estimated Fair Value Cost Estimated Fair Value Due in less than one year $ — $ — $ — $ — Due after ten years 1,950 1,933 1,950 1,843 Total $ 1,950 $ 1,933 $ 1,950 $ 1,843 Equity Investment Without a Readily Determinable Fair Value As of September 29, 2018 , the Company has invested $60.0 million to acquire preferred shares of a private limited company. This investment is classified in "Long-term investments" in the Condensed Consolidated Balance Sheets. This investment was determined to be an equity investment without a readily determinable fair value and is accounted for using the measurement alternative in accordance with ASU 2016-01. As of September 29, 2018 , there was no impairment or observable price change for this investment. Fair Value of Financial Instruments Marketable securities are measured at fair value and recorded in "Cash and cash equivalents," "Short-term investments" and "Long-term investments" in the Condensed Consolidated Balance Sheets, and the related unrealized gains and losses are included in "Accumulated other comprehensive loss," a component of stockholders’ equity, net of tax. Recurring Fair Value Measurements The fair value of the financial assets measured at fair value on a recurring basis was determined using the following levels of inputs as of September 29, 2018 and March 31, 2018 (in thousands): Total Quoted Prices In Significant Other September 29, 2018 Assets Money market funds $ — $ — $ — Auction rate securities ("ARS") (1) 1,933 — 1,933 Invested funds in deferred compensation plan (2) 16,472 16,472 — Total assets measured at fair value $ 18,405 $ 16,472 $ 1,933 Liabilities Deferred compensation plan obligation (2) $ 16,472 $ 16,472 $ — Total liabilities measured at fair value $ 16,472 $ 16,472 $ — March 31, 2018 Assets Money market funds $ 9 $ 9 $ — Auction rate securities (1) 1,843 — 1,843 Invested funds in deferred compensation plan (2) 14,284 14,284 — Total assets measured at fair value $ 16,136 $ 14,293 $ 1,843 Liabilities Deferred compensation plan obligation (2) $ 14,284 $ 14,284 $ — Total liabilities measured at fair value $ 14,284 $ 14,284 $ — (1) ARS are debt instruments with interest rates that reset through periodic short-term auctions. The Company’s Level 2 ARS are valued based on quoted prices for identical or similar instruments in markets that are not active. (2) The Company's non-qualified deferred compensation plan provides eligible employees and members of the Board of Directors with the opportunity to defer a specified percentage of their cash compensation. The Company includes the assets deferred by the participants in the “Other current assets” and “Other non-current assets” line items of its Condensed Consolidated Balance Sheets and the Company's obligation to deliver the deferred compensation in the "Other current liabilities" and “Other long-term liabilities” line items of its Condensed Consolidated Balance Sheets. As of September 29, 2018 and March 31, 2018 , the Company did not have any Level 3 assets or liabilities. Other Fair Value Disclosures The carrying values of cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate fair values because of the relatively short-term maturities of these instruments. See Note 6 for further disclosures related to the fair value of the Company's long-term debt. |
Debt
Debt | 6 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt as of September 29, 2018 and March 31, 2018 is as follows (in thousands): September 29, 2018 March 31, 2018 6.75% Senior Notes due 2023 $ — $ 444,464 7.00% Senior Notes due 2025 112,110 548,500 5.50% Senior Notes due 2026 630,000 — Less unamortized premium and issuance costs (7,012 ) (9,674 ) Total long-term debt $ 735,098 $ 983,290 Senior Notes due 2023 and 2025 On November 19, 2015, the Company issued $450.0 million aggregate principal amount of its 6.75% senior notes due December 1, 2023 (the "2023 Notes") and $550.0 million aggregate principal amount of its 7.00% senior notes due December 1, 2025 (the "2025 Notes"). The 2023 Notes were, and the 2025 Notes are, senior unsecured obligations of the Company and guaranteed, jointly and severally, by the Company and certain of its U.S. subsidiaries (the "Guarantors"). The 2023 Notes and the 2025 Notes were issued pursuant to an indenture dated as of November 19, 2015 (the "2015 Indenture"), by and among the Company, the Guarantors and MUFG Union Bank, N.A., as trustee. The 2015 Indenture contains customary events of default, including payment default, failure to provide certain notices and certain provisions related to bankruptcy events. In March 2018, the Company repurchased $5.5 million and $1.5 million of the 2023 Notes and the 2025 Notes, respectively, at prices equal to 107.50% of the principal amount of the 2023 Notes purchased, plus accrued and unpaid interest, and 109.50% of the principal amount of the 2025 Notes purchased, plus accrued and unpaid interest. On June 15, 2018, the Company commenced cash tender offers for any and all of the 2023 Notes (the “2023 Tender Offer”) and up to $150.0 million of the 2025 Notes (the "2025 Tender Offer"). On June 29, 2018, the Company completed the purchase of $429.2 million aggregate principal amount of the 2023 Notes at a price equal to 106.75% of the principal amount of the 2023 Notes purchased, plus accrued and unpaid interest. On July 19, 2018, the Company redeemed the remaining $15.3 million principal amount of the 2023 Notes at a redemption price equal to 100.0% of the principal amount, plus a make-whole premium and accrued and unpaid interest. On July 10, 2018, the Company increased the tender cap for the 2025 Tender Offer to $300.0 million , and on July 16, 2018, the Company completed the purchase of $300.0 million aggregate principal amount of the 2025 Notes at a price equal to 109.63% of the principal amount of the 2025 Notes purchased, plus accrued and unpaid interest. On August 14, 2018, the Company commenced a cash tender offer for up to $130.0 million of the 2025 Notes. On August 28, 2018, following an increase of the tender cap to $140.0 million , the Company completed the purchase of $136.4 million aggregate principal amount of the 2025 Notes at a price equal to 110.00% of the principal amount of the 2025 Notes purchased, plus accrued and unpaid interest. During the three and six months ended September 29, 2018 , the Company recognized a loss on debt extinguishment of $48.8 million and $82.2 million , respectively, as "Other expense" in the Company’s Condensed Consolidated Statements of Income. At any time prior to December 1, 2020, the Company may redeem all or part of the 2025 Notes, at a redemption price equal to their principal amount, plus a “make whole” premium as of the redemption date, and accrued and unpaid interest. In addition, at any time prior to December 1, 2018, the Company may redeem up to 35% of the original aggregate principal amount of the 2025 Notes with the proceeds of one or more equity offerings, at a redemption price equal to 107.00% of the principal amount of the 2025 Notes redeemed, plus accrued and unpaid interest. Furthermore, at any time on or after December 1, 2020, the Company may redeem the 2025 Notes, in whole or in part, at the redemption prices specified in the 2015 Indenture, plus accrued and unpaid interest. With respect to the 2023 Notes, interest was payable on June 1 and December 1 of each year at a rate of 6.75% per annum, and with respect to the 2025 Notes, interest is payable on June 1 and December 1 of each year at a rate of 7.00% per annum. Interest paid on the 2023 Notes and the 2025 Notes during the three and six months ended September 29, 2018 was $7.3 million and $41.5 million , respectively. Interest paid on the 2023 Notes and the 2025 Notes during the six months ended September 30, 2017 was $34.4 million . Senior Notes due 2026 On July 16, 2018, the Company completed an offering of $500.0 million aggregate principal amount of its 5.50% Senior Notes due 2026 (the “Initial 2026 Notes”). On August 28, 2018, the Company completed an offering of an additional $130.0 million aggregate principal amount of such notes (the "Additional 2026 Notes", together with the "Initial 2026 Notes", the "2026 Notes"). The 2026 Notes pay interest semi-annually on January 15 and July 15 at a rate of 5.50% per annum. The 2026 Notes will mature on July 15, 2026, unless earlier redeemed in accordance with their terms. The 2026 Notes are senior unsecured obligations of the Company and are initially guaranteed, jointly and severally, by its Guarantors. The Initial 2026 Notes were issued pursuant to an indenture, dated as of July 16, 2018 by and among the Company, the Guarantors and MUFG Union Bank, N.A., as trustee, and the Additional 2026 Notes were issued pursuant to a supplemental indenture, dated as of August 28, 2018 (together, the "2018 Indenture"). The 2018 Indenture contains customary events of default, including payment default, exchange default, failure to provide certain notices thereunder and certain provisions related to bankruptcy events and also contains customary negative covenants. The 2026 Notes were sold in a private offering to certain institutions that then resold the 2026 Notes in the United States to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Company used a portion of the net proceeds of the 2026 Notes to fund the tender offers for the 2025 Notes and to pay related fees and expenses of the offering and will use the remaining net proceeds for general corporate purposes. At any time prior to July 15, 2021, the Company may redeem all or part of the 2026 Notes, at a redemption price equal to their principal amount, plus a “make-whole” premium as of the redemption date, and accrued and unpaid interest. In addition, at any time prior to July 15, 2021, the Company may redeem up to 35% of the original aggregate principal amount of the 2026 Notes with the proceeds of one or more equity offerings, at a redemption price equal to 105.50% of the principal amount of the 2026 Notes redeemed, plus accrued and unpaid interest. Furthermore, at any time on or after July 15, 2021, the Company may redeem the 2026 Notes, in whole or in part, at the redemption prices specified in the 2018 Indenture, plus accrued and unpaid interest. The 2026 Notes have not been registered under the Securities Act, or any state securities laws, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. In connection with the offering of the 2026 Notes, the Company entered into a registration rights agreement, dated as of July 16, 2018, by and among the Company and the Guarantors, on the one hand, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative of the initial purchasers of the Initial 2026 Notes, on the other hand, and a substantially similar agreement, dated as of August 28, 2018 with respect to the Additional 2026 Notes (together, the "Registration Rights Agreements"). Under the Registration Rights Agreements, the Company and the Guarantors have agreed to use their commercially reasonable efforts to (i) file with the SEC a registration statement (the "Exchange Offer Registration Statement") relating to the registered exchange offer (the "Exchange Offer") to exchange the 2026 Notes for a new series of the Company’s exchange notes having terms substantially identical in all material respects to, and in the same aggregate principal amount as, the 2026 Notes; (ii) cause the Exchange Offer Registration Statement to be declared effective by the SEC; and (iii) cause the Exchange Offer to be consummated no later than the 360th day after July 16, 2018 (in the case of the Initial 2026 Notes) or August 28, 2018 (in the case of the Additional 2026 Notes) (or if such 360th day is not a business day, the next succeeding business day). The Company and the Guarantors have also agreed to use their commercially reasonable efforts to cause the Exchange Offer Registration Statement to be effective continuously and keep the Exchange Offer open for a period of not less than the minimum period required under applicable federal and state securities laws to consummate the Exchange Offer. Under certain circumstances, the Company and the Guarantors have agreed to use their commercially reasonable efforts to (i) file a shelf registration statement relating to the resale of the 2026 Notes as promptly as practicable, and (ii) cause the shelf registration statement to be declared effective by the SEC as promptly as practicable. The Company and the Guarantors have also agreed to use their commercially reasonable efforts to keep the shelf registration statement continuously effective until one year after its effective date (or such shorter period that will terminate when all the 2026 Notes covered thereby have been sold pursuant thereto). If the Company fails to meet any of these targets, the annual interest rate on the 2026 Notes will increase by 0.25% during the 90-day period following the default, and will increase by an additional 0.25% for each subsequent 90-day period during which the default continues, up to a maximum additional interest rate of 1.00% per year. If the Company cures the default, the interest rate on the 2026 Notes will revert to the original rate. Credit Agreement On December 5, 2017, the Company and the Guarantors entered into a five-year unsecured senior credit facility pursuant to a credit agreement with Bank of America, N.A., as administrative agent (in such capacity, the “Administrative Agent”), swing line lender and L/C issuer, and a syndicate of lenders (the "Credit Agreement"). On June 5, 2018, the Company and the Guarantors entered into the First Amendment (the "Amendment") to the Credit Agreement. The Credit Agreement includes a senior delayed draw term loan of up to $400.0 million (the "Term Loan") and a $300.0 million senior revolving line of credit (the "Revolving Facility", together with the Term Loan, the "Credit Facility"). On the closing date, $100.0 million of the Term Loan was funded (and subsequently repaid in March 2018), with the remainder available, at the discretion of the Company, in up to two draws. The Amendment, among other things, extended the delayed draw availability period from June 5, 2018 to January 3, 2019. The Revolving Facility includes a $25.0 million sublimit for the issuance of standby letters of credit and a $10.0 million sublimit for swing line loans. The Company may request that the Credit Facility be increased by up to $300.0 million , subject to securing additional funding commitments from the existing or new lenders. The Credit Facility is available to finance working capital, capital expenditures and other corporate purposes. Outstanding amounts are due in full on the maturity date of December 5, 2022 (with amounts borrowed under the swingline option due in full no later than ten business days after such loan is made), subject to scheduled amortization of the Term Loan principal as set forth in the Credit Agreement prior to the maturity date. During the six months ended September 29, 2018 , there were no borrowings under the Revolving Facility and the Company had no outstanding amounts under the Credit Facility as of September 29, 2018 . The Credit Agreement contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default. As of September 29, 2018 , the Company was in compliance with these covenants. Fair Value of Long-Term Debt The fair value of the 2025 Notes as of September 29, 2018 and March 31, 2018 was $120.0 million and $596.5 million , respectively (compared to a carrying value of $112.1 million and $548.5 million , respectively). The fair value of the 2026 Notes as of September 29, 2018 was $641.0 million (compared to a carrying value of $630.0 million ). The Company considers its long-term debt to be Level 2 in the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments. The 2025 Notes and 2026 Notes trade over the counter and their fair values were estimated based upon the value of their last trade at the end of the period. Interest Expense During the three and six months ended September 29, 2018 , the Company recognized $10.9 million and $28.0 million , respectively, of interest expense related to the 2023 Notes, 2025 Notes and the 2026 Notes, which was partially offset by $1.8 million and $5.3 million , respectively, of interest capitalized to property and equipment. During the three and six months ended September 30, 2017 , the Company recognized $17.3 million and $34.6 million , respectively, of interest expense related to the 2023 Notes and the 2025 Notes, which was partially offset by $3.2 million and $8.8 million , respectively, of interest capitalized to property and equipment. |
Stock Repurchases
Stock Repurchases | 6 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
STOCK REPURCHASES | STOCK REPURCHASES On May 23, 2018, the Company announced that its Board of Directors authorized a share repurchase program to repurchase up to $1.0 billion of the Company's outstanding stock, which included approximately $126.3 million authorized under a prior share repurchase program which was terminated concurrent with the new authorization. Under this program, share repurchases are made in accordance with applicable securities laws on the open market or in privately negotiated transactions. The extent to which the Company repurchases its shares, the number of shares and the timing of any repurchases depends on general market conditions, regulatory requirements, alternative investment opportunities and other considerations. The program does not require the Company to repurchase a minimum number of shares, does not have a fixed term, and may be modified, suspended or terminated at any time without prior notice. During the three months ended September 29, 2018 , the Company repurchased approximately 1.1 million shares of its common stock for approximately $86.7 million under the current share repurchase program. During the six months ended September 29, 2018 , the Company repurchased approximately 2.3 million shares of its common stock for approximately $186.7 million (which included 0.4 million shares of its common stock for approximately $35.9 million under a prior share repurchase program). As of September 29, 2018 , $849.2 million remains available for repurchases under the current share repurchase program. During the three and six months ended September 30, 2017 , the Company repurchased approximately 0.8 million shares and 1.2 million shares of its common stock for approximately $57.0 million and $88.9 million , respectively, under a prior share repurchase program. |
Revenue
Revenue | 6 Months Ended |
Sep. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Change in Accounting Policy The Company adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," in the first quarter of fiscal 2019 for open contracts using the modified retrospective approach through a cumulative adjustment to "Accumulated deficit" in the Condensed Consolidated Balance Sheet for the fiscal year beginning April 1, 2018. The impact from the cumulative-effect adjustment was immaterial (less than 1% of revenue in the quarter of adoption), related to over-time revenue recognition for customer-controlled inventory and point in time revenue recognition for intellectual property with a right to use. As the adoption of ASU 2014-09 did not have a material impact, comparative financial information for prior periods has not been restated and continues to be presented under the accounting standards in effect for the respective periods. Revenue Recognition Policy The Company generates revenue primarily from the sale of semiconductor products, either directly to a customer or to a distributor, or at completion of a consignment process. Revenue is recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration it expects to be entitled in exchange for those goods or services. A majority of the Company's revenue is recognized at a point in time, either on shipment or delivery of the product, depending on individual customer terms and conditions. Revenue from sales to the Company’s distributors is recognized upon shipment of the product to the distributors (sell-in). Revenue is recognized from the Company’s consignment programs at a point in time when the products are pulled from consignment inventory by the customer. Revenue recognized for product and services over-time is immaterial (less than 2% of overall revenue). The Company applies a five-step approach as defined in the new standard in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. Sales agreements are in place with certain customers and contain terms and conditions with respect to payment, delivery, warranty and supply, but typically do not require minimum purchase commitments. In the absence of a sales agreement, the Company’s standard terms and conditions apply. The Company considers a customer's purchase order, which is governed by a sales agreement or the Company’s standard terms and conditions, to be the contract with the customer. The Company’s pricing terms are negotiated independently, on a stand-alone basis. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. Variable consideration in the form of rebate programs is offered to certain customers, including distributors. These rebates represent less than 5% of net revenue. The majority of these accruals are classified as a contra accounts receivable. The Company determines variable consideration by estimating the most likely amount of consideration it expects to receive from the customer. The Company's terms and conditions do not give its customers a right of return associated with the original sale of its products. However, the Company may authorize sales returns under certain circumstances, which include courtesy returns and like-kind exchanges. Sales returns are classified as a refund liability. The Company reduces revenue and records reserves for product returns and allowances, rebate programs and scrap allowance based on historical experience or specific identification depending on the contractual terms of the arrangement. The Company’s accounts receivable balance is from contracts with customers and represents the Company’s unconditional right to receive consideration from its customers. Payments are due within one year of completion of the performance obligation and subsequent invoicing and, therefore, do not include significant financing components. To date, there have been no material impairment losses on accounts receivable. Contract assets and contract liabilities recorded on the Condensed Consolidated Balance Sheets were immaterial in the periods presented. The Company invoices customers upon shipment and recognizes revenues in accordance with delivery terms. As of September 29, 2018 , the Company had $41.6 million in remaining unsatisfied performance obligations with an original duration greater than one year, of which the majority is expected to be recognized as income over the next twelve months. The Company includes shipping charges billed to customers in "Revenue" and includes the related shipping costs in "Cost of goods sold" in the Condensed Consolidated Statements of Income. Taxes assessed by government authorities on revenue-producing transactions, including tariffs, value-added and excise taxes, are excluded from revenue in the Condensed Consolidated Statements of Income. The Company incurs commission expense that is incremental to obtaining contracts with customers. Sales commissions (which are recorded in the "Selling, general and administrative" expense line item in the Condensed Consolidated Statements of Income) are expensed when incurred because such commissions are not owed until the performance obligation is satisfied, which coincides with the end of the contract term, and therefore no remaining period exists over which to amortize the commissions. The following table presents the Company's revenue disaggregated by geography, based on the billing addresses of its customers (in thousands): Three Months Ended Six Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Revenue: China $ 548,848 $ 430,141 $ 915,382 $ 779,772 Taiwan 160,835 169,913 316,006 260,071 United States 106,294 127,897 214,760 266,257 Other Asia 39,241 64,901 73,810 101,076 Europe 24,302 24,534 46,938 45,769 Other 4,923 4,197 10,217 9,469 Total Revenue $ 884,443 $ 821,583 $ 1,577,113 $ 1,462,414 The Company also disaggregates revenue by operating segments (see Note 9). |
Operating Segment Information
Operating Segment Information | 6 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENT INFORMATION | OPERATING SEGMENT INFORMATION The Company's operating segments as of September 29, 2018 are Mobile Products (MP) and Infrastructure and Defense Products (IDP) based on the organizational structure and information reviewed by the Company's Chief Executive Officer, who is the Company's chief operating decision maker ("CODM"), and these segments are managed separately based on the end markets and applications they support. The CODM allocates resources and assesses the performance of each operating segment primarily based on non-GAAP operating income (loss) and non-GAAP operating income (loss) as a percentage of revenue. MP is a leading global supplier of cellular radio frequency ("RF") and Wi-Fi solutions for a variety of mobile devices, including smartphones, notebook computers, wearables, tablets, and cellular-based applications for the Internet of Things ("IoT"). Mobile device manufacturers and mobile network operators are adopting new technologies to address the growing demand for data-intensive, increasingly cloud-based distributed applications and for mobile devices with smaller form factors, improved signal quality, less heat and longer talk and standby times. New wireless communications standards are being deployed, and new frequency bands are being added. Carrier aggregation is being implemented to support wider bandwidths, increase data rates and improve network performance. These trends increase the complexity of smartphones, require more RF content and place a premium on performance, integration, systems-level expertise, and product and technology portfolio breadth, all of which are MP strengths. MP offers a comprehensive product portfolio of bulk acoustic wave ("BAW") and surface acoustic wave ("SAW") filters, power amplifiers ("PAs"), low noise amplifiers ("LNAs"), switches, multimode multi-band PAs and transmit modules, RF power management integrated circuits, diversity receive modules, antenna switch modules, antenna tuning and control solutions, modules incorporating PAs and duplexers and modules incorporating switches, PAs and duplexers. IDP is a leading global supplier of RF solutions with a diverse portfolio of solutions that "connect and protect," spanning communications and defense applications. These applications include high performance defense systems such as radar, electronic warfare and communication systems, Wi-Fi customer premises equipment for home and work, high speed connectivity in Long-Term Evolution ("LTE") and 5G base stations, cloud connectivity via data center communications and telecom transport, automotive connectivity and other IoT, including smart home solutions. IDP products include high power gallium arsenide ("GaAs") and gallium nitride ("GaN") PAs, LNAs, switches, Complementary Metal Oxide Semiconductor ("CMOS") system-on-a-chip solutions, premium BAW and SAW filter solutions and various multi-chip and hybrid assemblies. The “All other” category includes operating expenses such as stock-based compensation, amortization of intangible assets, acquisition and integration related costs, restructuring charges, start-up costs, gain (loss) on assets and other miscellaneous corporate overhead expenses that the Company does not allocate to its reportable segments because these expenses are not included in the segment operating performance measures evaluated by the Company’s CODM. The CODM does not evaluate operating segments using discrete asset information. The Company’s operating segments do not record intercompany revenue. The Company does not allocate gains and losses from equity investments, interest and other income, or taxes to operating segments. Except as discussed above regarding the “All other” category, the Company’s accounting policies for segment reporting are the same as for the Company as a whole. The following tables present details of the Company’s reportable segments and a reconciliation of the “All other” category (in thousands): Three Months Ended Six Months Ended September 29, September 30, September 29, September 30, Revenue: MP $ 666,539 $ 630,397 $ 1,152,618 $ 1,086,620 IDP 217,904 190,216 424,495 373,854 All other (1) — 970 — 1,940 Total revenue $ 884,443 $ 821,583 $ 1,577,113 $ 1,462,414 Income (loss) from operations MP $ 196,948 $ 172,892 $ 286,119 $ 260,699 IDP 56,311 57,649 111,515 107,235 All other (162,782 ) (180,977 ) (326,372 ) (346,199 ) Income from operations 90,477 49,564 71,262 21,735 Interest expense (9,689 ) (14,778 ) (24,042 ) (27,049 ) Interest income 1,580 1,058 4,974 1,824 Other expense (49,532 ) (192 ) (81,487 ) (1,126 ) Income (loss) before income taxes $ 32,836 $ 35,652 $ (29,293 ) $ (4,616 ) (1) "All other" revenue relates to royalty income that is not allocated to MP or IDP for the three and six months ended September 30, 2017 . As a result of the adoption of ASU 2014-09, income related to a right-to-use license of intellectual property was recognized at a point-in-time and, therefore, was included as a transition adjustment impacting retained earnings. Three Months Ended Six Months Ended September 29, September 30, September 29, September 30, Reconciliation of “All other” category: Stock-based compensation expense $ (20,905 ) $ (23,458 ) $ (40,250 ) $ (44,584 ) Amortization of intangible assets (133,116 ) (135,639 ) (266,291 ) (270,325 ) Acquisition and integration related costs (1,098 ) (2,613 ) (2,180 ) (5,390 ) Restructuring charges (510 ) (7,453 ) (3,312 ) (7,984 ) Start-up costs (5,883 ) (7,129 ) (11,244 ) (13,753 ) Other (including gain (loss) on assets and other miscellaneous corporate overhead) (1,270 ) (4,685 ) (3,095 ) (4,163 ) Loss from operations for “All other” $ (162,782 ) $ (180,977 ) $ (326,372 ) $ (346,199 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES U.S. Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act ("Tax Act") was enacted into law. This new law includes significant changes to the U.S. corporate income tax system, including a permanent reduction in the corporate income tax rate from 35% to 21% , full expensing for investments in new and used qualified property, limitations on the deductibility of interest expense and executive compensation, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. In December 2017, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC Topic 740 - Income Taxes (“ASC 740”). The provisional tax effects recorded to date will be revised during the measurement period, possibly materially, due to further refinement of the calculations, changes in interpretations and assumptions made, and additional guidance that may be issued by the Department of the U.S. Treasury, the Internal Revenue Service, and other regulatory and standard setting bodies. The Company will complete its analysis within fiscal 2019 consistent with the guidance provided in SAB 118, and any adjustments during this measurement period will be included in net earnings from continuing operations as an adjustment to income tax expense. As described in Note 12 Income Taxes in our 2018 Annual Report on Form 10-K, we were able to reasonably estimate certain effects of the Tax Act provisions that became effective during fiscal 2018 and, therefore, recorded provisional amounts, including a $116.4 million expense related to the one-time transition tax on certain unrepatriated earnings of foreign subsidiaries (the “Transitional Repatriation Tax”) and a $39.1 million benefit from the remeasurement of U.S. deferred tax assets and liabilities. While the Company has not finalized the accounting for the tax effects of the Tax Act, for the six months ended September 29, 2018 we have made a $15.9 million measurement period adjustment to reduce the tax expense related to the previously recorded provisional amounts. This was comprised of an $11.6 million reduction in the Transitional Repatriation Tax and a $4.3 million increase in U.S. deferred tax assets. The Global Intangible Low-Taxed Income (“GILTI”) provisions create a new requirement that certain income earned by foreign subsidiaries be currently included in the gross income of the U.S. shareholder. No provisional adjustments related to the potential GILTI impact on deferred taxes has been made as the Company has not made its accounting policy choice of either: (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company's measurement of its deferred taxes (the “deferred method”). The GILTI and executive compensation limitation provisions in the Tax Act became effective for the Company in fiscal 2019 . Provisional estimates for the current year impact of these new provisions are included in the calculation of the fiscal 2019 annual effective tax rate applied to year-to-date income (loss). Income Tax Expense The Company’s provision for income taxes for the three and six months ended September 29, 2018 and September 30, 2017 has been calculated by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pre-tax income or loss excluding unusual or infrequently occurring discrete items) to year-to-date income (loss) to determine the amounts for the three and six months ended September 29, 2018 and September 30, 2017 . The Company’s income tax expense was $0.8 million and income tax benefit was $31.4 million for the three and six months ended September 29, 2018 , respectively, and the Company's income tax benefit was $0.3 million and $9.9 million for the three and six months ended September 30, 2017 , respectively. The Company’s effective tax rate was 2.3% and 107.1% for the three and six months ended September 29, 2018 , respectively, and (0.7)% and 214.7% for the three and six months ended September 30, 2017 , respectively. The Company's effective tax rate for the three and six months ended September 29, 2018 differed from the statutory rate primarily due to tax rate differences in foreign jurisdictions, foreign permanent differences, state income taxes, domestic tax credits generated, changes in unrecognized tax benefits, GILTI, a discrete tax benefit for changes in provisional estimates related to the Transitional Repatriation Tax, and a discrete tax benefit resulting from a retroactive incentive allowing previously non-deductible payments to be amortized. The Company's effective tax rate for the three and six months ended September 30, 2017 differed from the statutory rate primarily due to tax rate differences in foreign jurisdictions, state income taxes, domestic tax credits generated, changes in unrecognized tax benefits, a discrete tax benefit for excess stock compensation deductions in accordance with the new guidance for accounting for employee share-based payments ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share Based Payment Accounting" ), and a discrete tax expense, for the six months only, associated with intra-entity transfers in accordance with the new guidance for the intra-entity transfer of assets other than inventory (ASU 2016-16, "Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory" ). Deferred Taxes A valuation allowance remained against certain domestic and foreign net deferred tax assets as it is more likely than not that the related deferred tax assets will not be realized. The Company has domestic federal and state tax net operating loss ("NOL") and credit carry-forwards that expire in fiscal years 2019 to 2038 if unused. The use of the NOLs that were acquired in prior year acquisitions is subject to certain annual limitations under Internal Revenue Code Section 382 and similar state income tax provisions. Uncertain Tax Positions The Company’s gross unrecognized tax benefits increased from $122.8 million as of the end of fiscal 2018 to $134.1 million as of the end of the second quarter of fiscal 2019 , primarily due to tax positions taken with respect to the current fiscal year. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Three Months Ended Six Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Numerator: Numerator for basic and diluted net income per share — net income available to common stockholders $ 32,084 $ 35,919 $ 2,091 $ 5,295 Denominator: Denominator for basic net income per share — weighted average shares 125,643 127,257 125,859 127,109 Effect of dilutive securities: Stock-based awards 2,907 3,521 3,118 3,953 Denominator for diluted net income per share — adjusted weighted average shares and assumed conversions 128,550 130,778 128,977 131,062 Basic net income per share $ 0.26 $ 0.28 $ 0.02 $ 0.04 Diluted net income per share $ 0.25 $ 0.27 $ 0.02 $ 0.04 In the computation of diluted net income per share for the three and six months ended September 29, 2018 , outstanding options to purchase 0.3 million shares and 0.2 million shares, respectively, were excluded because the effect of their inclusion would have been anti-dilutive. In the computation of diluted net income per share for the three and six months ended September 30, 2017 , outstanding options to purchase less than 0.1 million shares were excluded because the effect of their inclusion would have been anti-dilutive. |
Consolidating Financial Informa
Consolidating Financial Information | 6 Months Ended |
Sep. 29, 2018 | |
Consolidating Financial Information [Abstract] | |
CONSOLIDATING FINANCIAL INFORMATION | CONDENSED CONSOLIDATING FINANCIAL INFORMATION In accordance with the applicable indentures governing the 2025 Notes and 2026 Notes, the Company's obligations under the 2025 Notes and 2026 Notes are fully and unconditionally guaranteed on a joint and several basis by each Guarantor, each of which is 100% owned, directly or indirectly, by Qorvo, Inc. (the "Parent Company"). A Guarantor can be released in certain customary circumstances. The following presents the condensed consolidating financial information separately for: (i) Parent Company, the issuer of the guaranteed obligations; (ii) Guarantor subsidiaries, on a combined basis, as specified in the applicable indenture; (iii) Non-guarantor subsidiaries, on a combined basis; (iv) Consolidating entries, eliminations and reclassifications representing adjustments to (a) eliminate intercompany transactions between or among the Parent Company, the Guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate intercompany profit in inventory, (c) eliminate the investments in the Company’s subsidiaries and (d) record consolidating entries; and (v) The Company, on a consolidated basis. Each entity in the condensed consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and Guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries that are eliminated upon consolidation. The financial information may not necessarily be indicative of the financial position, results of operations, comprehensive (loss) income, and cash flows, had the Parent Company, Guarantor or non-guarantor subsidiaries operated as independent entities. Condensed Consolidating Balance Sheet September 29, 2018 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 95,152 $ 462,772 $ — $ 557,924 Accounts receivable, less allowance — 50,023 441,160 — 491,183 Intercompany accounts and notes receivable — 389,857 50,428 (440,285 ) — Inventories — 214,519 280,586 (20,573 ) 474,532 Prepaid expenses — 18,699 7,614 — 26,313 Other receivables — 3,795 35,178 — 38,973 Other current assets — 29,696 1,149 — 30,845 Total current assets — 801,741 1,278,887 (460,858 ) 1,619,770 Property and equipment, net — 1,127,933 274,463 (531 ) 1,401,865 Goodwill — 1,122,629 1,051,260 — 2,173,889 Intangible assets, net — 294,900 300,952 — 595,852 Long-term investments — 4,952 85,951 — 90,903 Long-term intercompany accounts and notes receivable — 990,080 92,490 (1,082,570 ) — Investment in subsidiaries 6,272,369 2,450,260 — (8,722,629 ) — Other non-current assets 109,305 32,394 30,496 (107,413 ) 64,782 Total assets $ 6,381,674 $ 6,824,889 $ 3,114,499 $ (10,374,001 ) $ 5,947,061 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 90,561 $ 138,448 $ — $ 229,009 Intercompany accounts and notes payable — 50,428 389,857 (440,285 ) — Accrued liabilities 9,921 126,420 44,806 358 181,505 Other current liabilities — 2,989 48,880 — 51,869 Total current liabilities 9,921 270,398 621,991 (439,927 ) 462,383 Long-term debt 735,098 — — — 735,098 Deferred tax liabilities — 46,815 5,478 (30,361 ) 21,932 Long-term intercompany accounts and notes payable 1,004,518 92,490 (14,438 ) (1,082,570 ) — Other long-term liabilities — 43,784 51,727 — 95,511 Total liabilities 1,749,537 453,487 664,758 (1,552,858 ) 1,314,924 Total stockholders’ equity 4,632,137 6,371,402 2,449,741 (8,821,143 ) 4,632,137 Total liabilities and stockholders’ equity $ 6,381,674 $ 6,824,889 $ 3,114,499 $ (10,374,001 ) $ 5,947,061 Condensed Consolidating Balance Sheet March 31, 2018 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 629,314 $ 296,723 $ — $ 926,037 Accounts receivable, less allowance — 76,863 269,094 — 345,957 Intercompany accounts and notes receivable — 272,409 53,363 (325,772 ) — Inventories — 154,651 339,434 (21,793 ) 472,292 Prepaid expenses — 17,530 6,379 — 23,909 Other receivables — 5,959 38,836 — 44,795 Other current assets — 29,627 1,188 — 30,815 Total current assets — 1,186,353 1,005,017 (347,565 ) 1,843,805 Property and equipment, net — 1,085,255 289,146 (289 ) 1,374,112 Goodwill — 1,121,941 1,051,948 — 2,173,889 Intangible assets, net — 395,317 465,019 — 860,336 Long-term investments — 1,847 61,918 — 63,765 Long-term intercompany accounts and notes receivable — 543,127 116,494 (659,621 ) — Investment in subsidiaries 6,198,885 2,388,222 — (8,587,107 ) — Other non-current assets 72,122 31,011 32,516 (70,037 ) 65,612 Total assets $ 6,271,007 $ 6,753,073 $ 3,022,058 $ (9,664,619 ) $ 6,381,519 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 78,278 $ 134,915 $ — $ 213,193 Intercompany accounts and notes payable — 53,363 272,409 (325,772 ) — Accrued liabilities 23,102 101,286 43,163 (369 ) 167,182 Other current liabilities — 3,882 57,022 — 60,904 Total current liabilities 23,102 236,809 507,509 (326,141 ) 441,279 Long-term debt 983,290 — — — 983,290 Deferred tax liabilities — 83,449 16,366 (36,731 ) 63,084 Long-term intercompany accounts and notes payable 489,051 116,494 54,076 (659,621 ) — Other long-term liabilities — 62,417 55,885 — 118,302 Total liabilities 1,495,443 499,169 633,836 (1,022,493 ) 1,605,955 Total stockholders’ equity 4,775,564 6,253,904 2,388,222 (8,642,126 ) 4,775,564 Total liabilities and stockholders’ equity $ 6,271,007 $ 6,753,073 $ 3,022,058 $ (9,664,619 ) $ 6,381,519 Condensed Consolidating Statement of Income and Comprehensive Income Three Months Ended September 29, 2018 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated Revenue $ — $ 236,631 $ 825,844 $ (178,032 ) $ 884,443 Cost of goods sold — 207,221 476,256 (152,548 ) 530,929 Gross profit — 29,410 349,588 (25,484 ) 353,514 Operating expenses: Research and development 6,910 7,340 103,671 (1,173 ) 116,748 Selling, general and administrative 13,876 58,924 91,399 (24,692 ) 139,507 Other operating expense (income) 119 (2,192 ) 8,458 397 6,782 Total operating expenses 20,905 64,072 203,528 (25,468 ) 263,037 Income (loss) from operations (20,905 ) (34,662 ) 146,060 (16 ) 90,477 Interest expense (9,400 ) (522 ) (160 ) 393 (9,689 ) Interest income — 477 1,495 (392 ) 1,580 Other (expense) income (48,779 ) 798 (1,551 ) — (49,532 ) Income (loss) before income taxes (79,084 ) (33,909 ) 145,844 (15 ) 32,836 Income tax (expense) benefit 25,920 (20,470 ) (6,202 ) — (752 ) Income in subsidiaries 85,248 139,642 — (224,890 ) — Net income $ 32,084 $ 85,263 $ 139,642 $ (224,905 ) $ 32,084 Comprehensive income $ 32,012 $ 85,347 $ 139,472 $ (224,819 ) $ 32,012 Condensed Consolidating Statement of Income and Comprehensive Income Three Months Ended September 30, 2017 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated Revenue $ — $ 256,595 $ 775,682 $ (210,694 ) $ 821,583 Cost of goods sold — 196,350 480,439 (176,228 ) 500,561 Gross profit — 60,245 295,243 (34,466 ) 321,022 Operating expenses: Research and development 6,703 11,148 97,800 (4,253 ) 111,398 Selling, general and administrative 16,626 66,958 86,004 (30,721 ) 138,867 Other operating expense 129 16,800 4,288 (24 ) 21,193 Total operating expenses 23,458 94,906 188,092 (34,998 ) 271,458 Income (loss) from operations (23,458 ) (34,661 ) 107,151 532 49,564 Interest expense (14,442 ) (557 ) (434 ) 655 (14,778 ) Interest income — 331 1,382 (655 ) 1,058 Other (expense) income — 970 (3,880 ) 2,718 (192 ) Income (loss) before income taxes (37,900 ) (33,917 ) 104,219 3,250 35,652 Income tax benefit (expense) 19,527 (8,651 ) (10,609 ) — 267 Income in subsidiaries 54,292 93,610 — (147,902 ) — Net income $ 35,919 $ 51,042 $ 93,610 $ (144,652 ) $ 35,919 Comprehensive income $ 35,527 $ 51,080 $ 90,666 $ (141,746 ) $ 35,527 Condensed Consolidating Statement of Income and Comprehensive (Loss) Income Six Months Ended September 29, 2018 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ 468,570 $ 1,451,805 $ (343,262 ) $ 1,577,113 Cost of goods sold — 397,532 885,953 (296,619 ) 986,866 Gross profit — 71,038 565,852 (46,643 ) 590,247 Operating expenses: Research and development 13,311 10,619 206,119 (2,398 ) 227,651 Selling, general and administrative 26,671 116,880 177,778 (45,892 ) 275,437 Other operating expense 269 5,748 9,512 368 15,897 Total operating expenses 40,251 133,247 393,409 (47,922 ) 518,985 Income (loss) from operations (40,251 ) (62,209 ) 172,443 1,279 71,262 Interest expense (23,442 ) (1,059 ) (321 ) 780 (24,042 ) Interest income — 2,883 2,870 (779 ) 4,974 Other (expense) income (82,152 ) 1,126 (461 ) — (81,487 ) (Loss) income before income taxes (145,845 ) (59,259 ) 174,531 1,280 (29,293 ) Income tax benefit (expense) 37,374 (3,666 ) (2,324 ) — 31,384 Income in subsidiaries 110,562 172,207 — (282,769 ) — Net income $ 2,091 $ 109,282 $ 172,207 $ (281,489 ) $ 2,091 Comprehensive (loss) income $ (165 ) $ 109,371 $ 169,727 $ (279,098 ) $ (165 ) Condensed Consolidating Statement of Income and Comprehensive Income Six Months Ended September 30, 2017 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ 528,548 $ 1,356,236 $ (422,370 ) $ 1,462,414 Cost of goods sold — 380,354 873,175 (348,514 ) 905,015 Gross profit — 148,194 483,061 (73,856 ) 557,399 Operating expenses: Research and development 13,499 27,886 195,084 (8,572 ) 227,897 Selling, general and administrative 30,871 133,170 180,056 (65,799 ) 278,298 Other operating expense 214 23,860 5,298 97 29,469 Total operating expenses 44,584 184,916 380,438 (74,274 ) 535,664 Income (loss) from operations (44,584 ) (36,722 ) 102,623 418 21,735 Interest expense (26,366 ) (1,132 ) (768 ) 1,217 (27,049 ) Interest income — 825 2,216 (1,217 ) 1,824 Other (expense) income — 756 (1,882 ) — (1,126 ) (Loss) income before income taxes (70,950 ) (36,273 ) 102,189 418 (4,616 ) Income tax benefit (expense) 35,773 (16,175 ) (9,687 ) — 9,911 Income in subsidiaries 40,472 92,502 — (132,974 ) — Net income $ 5,295 $ 40,054 $ 92,502 $ (132,556 ) $ 5,295 Comprehensive income $ 5,622 $ 40,153 $ 90,216 $ (130,369 ) $ 5,622 Condensed Consolidating Statement of Cash Flows Six Months Ended September 29, 2018 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated Net cash provided by (used in) operating activities $ 522,959 $ (548,315 ) $ 315,152 $ — $ 289,796 Investing activities: Purchase of property and equipment — (95,897 ) (17,769 ) — (113,666 ) Purchase of debt securities and other investments — (132,729 ) — — (132,729 ) Proceeds from maturities of other investments — 133,132 — — 133,132 Other investing activities — (1,086 ) (18,406 ) — (19,492 ) Net transactions with related parties — 110,047 — (110,047 ) — Net cash (used in) provided by investing activities — 13,467 (36,175 ) (110,047 ) (132,755 ) Financing activities: Payment of debt (954,745 ) — — — (954,745 ) Proceeds from debt issuances 631,300 — — — 631,300 Repurchase of common stock, including transaction costs (186,682 ) — — — (186,682 ) Proceeds from the issuance of common stock 18,406 — — — 18,406 Tax withholding paid on behalf of employees for restricted stock units (24,181 ) — — — (24,181 ) Other financing activities (7,057 ) — — — (7,057 ) Net transactions with related parties — 686 (110,733 ) 110,047 — Net cash (used in) provided by financing activities (522,959 ) 686 (110,733 ) 110,047 (522,959 ) Effect of exchange rate changes on cash — — (2,216 ) — (2,216 ) Net (decrease) increase in cash, cash equivalents and restricted cash — (534,162 ) 166,028 — (368,134 ) Cash, cash equivalents and restricted cash at the beginning of the period — 629,314 297,088 — 926,402 Cash, cash equivalents and restricted cash at the end of the period $ — $ 95,152 $ 463,116 $ — $ 558,268 Condensed Consolidating Statement of Cash Flows Six Months Ended September 30, 2017 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated Net cash provided by (used in) operating activities $ 80,063 $ (2,241 ) $ 245,672 $ — $ 323,494 Investing activities: Purchase of property and equipment — (159,337 ) (32,882 ) — (192,219 ) Other investing activities — 7,154 (30,182 ) — (23,028 ) Net transactions with related parties — 24,100 (24,100 ) — — Net cash used in investing activities — (128,083 ) (87,164 ) — (215,247 ) Financing activities: Repurchase of common stock, including transaction costs (88,925 ) — — — (88,925 ) Proceeds from the issuance of common stock 32,867 — — — 32,867 Tax withholding paid on behalf of employees for restricted stock units (24,005 ) — — — (24,005 ) Net transactions with related parties — 686 (686 ) — — Net cash (used in) provided by financing activities (80,063 ) 686 (686 ) — (80,063 ) Effect of exchange rate changes on cash — — 1,260 — 1,260 Net increase (decrease) in cash, cash equivalents and restricted cash — (129,638 ) 159,082 — 29,444 Cash, cash equivalents and restricted cash at the beginning of the period — 226,186 319,593 — 545,779 Cash, cash equivalents and restricted cash at the end of the period $ — $ 96,548 $ 478,675 $ — $ 575,223 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Equity Securities without Readily Determinable Fair Value [Policy Text Block] | an equity investment without a readily determinable fair value and is accounted for using the measurement alternative in accordance with ASU 2016-01. |
Revenue Recognition Policy | Revenue Recognition Policy The Company generates revenue primarily from the sale of semiconductor products, either directly to a customer or to a distributor, or at completion of a consignment process. Revenue is recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration it expects to be entitled in exchange for those goods or services. A majority of the Company's revenue is recognized at a point in time, either on shipment or delivery of the product, depending on individual customer terms and conditions. Revenue from sales to the Company’s distributors is recognized upon shipment of the product to the distributors (sell-in). Revenue is recognized from the Company’s consignment programs at a point in time when the products are pulled from consignment inventory by the customer. Revenue recognized for product and services over-time is immaterial (less than 2% of overall revenue). The Company applies a five-step approach as defined in the new standard in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. Sales agreements are in place with certain customers and contain terms and conditions with respect to payment, delivery, warranty and supply, but typically do not require minimum purchase commitments. In the absence of a sales agreement, the Company’s standard terms and conditions apply. The Company considers a customer's purchase order, which is governed by a sales agreement or the Company’s standard terms and conditions, to be the contract with the customer. The Company’s pricing terms are negotiated independently, on a stand-alone basis. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. Variable consideration in the form of rebate programs is offered to certain customers, including distributors. These rebates represent less than 5% of net revenue. The majority of these accruals are classified as a contra accounts receivable. The Company determines variable consideration by estimating the most likely amount of consideration it expects to receive from the customer. The Company's terms and conditions do not give its customers a right of return associated with the original sale of its products. However, the Company may authorize sales returns under certain circumstances, which include courtesy returns and like-kind exchanges. Sales returns are classified as a refund liability. The Company reduces revenue and records reserves for product returns and allowances, rebate programs and scrap allowance based on historical experience or specific identification depending on the contractual terms of the arrangement. The Company’s accounts receivable balance is from contracts with customers and represents the Company’s unconditional right to receive consideration from its customers. Payments are due within one year of completion of the performance obligation and subsequent invoicing and, therefore, do not include significant financing components. To date, there have been no material impairment losses on accounts receivable. Contract assets and contract liabilities recorded on the Condensed Consolidated Balance Sheets were immaterial in the periods presented. The Company invoices customers upon shipment and recognizes revenues in accordance with delivery terms. As of September 29, 2018 , the Company had $41.6 million in remaining unsatisfied performance obligations with an original duration greater than one year, of which the majority is expected to be recognized as income over the next twelve months. The Company includes shipping charges billed to customers in "Revenue" and includes the related shipping costs in "Cost of goods sold" in the Condensed Consolidated Statements of Income. Taxes assessed by government authorities on revenue-producing transactions, including tariffs, value-added and excise taxes, are excluded from revenue in the Condensed Consolidated Statements of Income. The Company incurs commission expense that is incremental to obtaining contracts with customers. Sales commissions (which are recorded in the "Selling, general and administrative" expense line item in the Condensed Consolidated Statements of Income) are expensed when incurred because such commissions are not owed until the performance obligation is satisfied, which coincides with the end of the contract term, and therefore no remaining period exists over which to amortize the commissions. |
Income Tax Policy | The Company’s provision for income taxes for the three and six months ended September 29, 2018 and September 30, 2017 has been calculated by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pre-tax income or loss excluding unusual or infrequently occurring discrete items) to year-to-date income (loss) to determine the amounts for the three and six months ended September 29, 2018 and September 30, 2017 . |
Fair Value Measurements Policy | The carrying values of cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate fair values because of the relatively short-term maturities of these instruments. |
Operating Segment Policy | The Company's operating segments as of September 29, 2018 are Mobile Products (MP) and Infrastructure and Defense Products (IDP) based on the organizational structure and information reviewed by the Company's Chief Executive Officer, who is the Company's chief operating decision maker ("CODM"), and these segments are managed separately based on the end markets and applications they support. The CODM allocates resources and assesses the performance of each operating segment primarily based on non-GAAP operating income (loss) and non-GAAP operating income (loss) as a percentage of revenue. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Marketable securities are measured at fair value and recorded in "Cash and cash equivalents," "Short-term investments" and "Long-term investments" in the Condensed Consolidated Balance Sheets, and the related unrealized gains and losses are included in "Accumulated other comprehensive loss," a component of stockholders’ equity, net of tax. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Components of inventories | The components of inventories, net of reserves, are as follows (in thousands): September 29, 2018 March 31, 2018 Raw materials $ 112,227 $ 110,389 Work in process 252,891 221,137 Finished goods 109,414 140,766 Total inventories $ 474,532 $ 472,292 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 29, 2018 | |
Investments and Fair Value Measurements [Abstract] | |
Available-for-sale debt securities | The following is a summary of available-for-sale debt securities as of September 29, 2018 and March 31, 2018 (in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 29, 2018 Auction rate securities $ 1,950 $ — $ (17 ) $ 1,933 March 31, 2018 Auction rate securities $ 1,950 $ — $ (107 ) $ 1,843 |
Expected distribution of available-for-sale debt securities | The expected maturity distribution of available-for-sale debt securities is as follows (in thousands): September 29, 2018 March 31, 2018 Cost Estimated Fair Value Cost Estimated Fair Value Due in less than one year $ — $ — $ — $ — Due after ten years 1,950 1,933 1,950 1,843 Total $ 1,950 $ 1,933 $ 1,950 $ 1,843 |
Fair value of the financial assets measured at fair value on a recurring basis | The fair value of the financial assets measured at fair value on a recurring basis was determined using the following levels of inputs as of September 29, 2018 and March 31, 2018 (in thousands): Total Quoted Prices In Significant Other September 29, 2018 Assets Money market funds $ — $ — $ — Auction rate securities ("ARS") (1) 1,933 — 1,933 Invested funds in deferred compensation plan (2) 16,472 16,472 — Total assets measured at fair value $ 18,405 $ 16,472 $ 1,933 Liabilities Deferred compensation plan obligation (2) $ 16,472 $ 16,472 $ — Total liabilities measured at fair value $ 16,472 $ 16,472 $ — March 31, 2018 Assets Money market funds $ 9 $ 9 $ — Auction rate securities (1) 1,843 — 1,843 Invested funds in deferred compensation plan (2) 14,284 14,284 — Total assets measured at fair value $ 16,136 $ 14,293 $ 1,843 Liabilities Deferred compensation plan obligation (2) $ 14,284 $ 14,284 $ — Total liabilities measured at fair value $ 14,284 $ 14,284 $ — (1) ARS are debt instruments with interest rates that reset through periodic short-term auctions. The Company’s Level 2 ARS are valued based on quoted prices for identical or similar instruments in markets that are not active. (2) The Company's non-qualified deferred compensation plan provides eligible employees and members of the Board of Directors with the opportunity to defer a specified percentage of their cash compensation. The Company includes the assets deferred by the participants in the “Other current assets” and “Other non-current assets” line items of its Condensed Consolidated Balance Sheets and the Company's obligation to deliver the deferred compensation in the "Other current liabilities" and “Other long-term liabilities” line items of its Condensed Consolidated Balance Sheets. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | ebt as of September 29, 2018 and March 31, 2018 is as follows (in thousands): September 29, 2018 March 31, 2018 6.75% Senior Notes due 2023 $ — $ 444,464 7.00% Senior Notes due 2025 112,110 548,500 5.50% Senior Notes due 2026 630,000 — Less unamortized premium and issuance costs (7,012 ) (9,674 ) Total long-term debt $ 735,098 $ 983,290 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Sep. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company's revenue disaggregated by geography, based on the billing addresses of its customers (in thousands): Three Months Ended Six Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Revenue: China $ 548,848 $ 430,141 $ 915,382 $ 779,772 Taiwan 160,835 169,913 316,006 260,071 United States 106,294 127,897 214,760 266,257 Other Asia 39,241 64,901 73,810 101,076 Europe 24,302 24,534 46,938 45,769 Other 4,923 4,197 10,217 9,469 Total Revenue $ 884,443 $ 821,583 $ 1,577,113 $ 1,462,414 The Company also disaggregates revenue by operating segments (see Note 9). |
Operating Segment Information (
Operating Segment Information (Tables) | 6 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Summary of details of reportable segments | The following tables present details of the Company’s reportable segments and a reconciliation of the “All other” category (in thousands): Three Months Ended Six Months Ended September 29, September 30, September 29, September 30, Revenue: MP $ 666,539 $ 630,397 $ 1,152,618 $ 1,086,620 IDP 217,904 190,216 424,495 373,854 All other (1) — 970 — 1,940 Total revenue $ 884,443 $ 821,583 $ 1,577,113 $ 1,462,414 Income (loss) from operations MP $ 196,948 $ 172,892 $ 286,119 $ 260,699 IDP 56,311 57,649 111,515 107,235 All other (162,782 ) (180,977 ) (326,372 ) (346,199 ) Income from operations 90,477 49,564 71,262 21,735 Interest expense (9,689 ) (14,778 ) (24,042 ) (27,049 ) Interest income 1,580 1,058 4,974 1,824 Other expense (49,532 ) (192 ) (81,487 ) (1,126 ) Income (loss) before income taxes $ 32,836 $ 35,652 $ (29,293 ) $ (4,616 ) (1) "All other" revenue relates to royalty income that is not allocated to MP or IDP for the three and six months ended September 30, 2017 . As a result of the adoption of ASU 2014-09, income related to a right-to-use license of intellectual property was recognized at a point-in-time and, therefore, was included as a transition adjustment impacting retained earnings |
Summary of reconciliation of "All other" category | Three Months Ended Six Months Ended September 29, September 30, September 29, September 30, Reconciliation of “All other” category: Stock-based compensation expense $ (20,905 ) $ (23,458 ) $ (40,250 ) $ (44,584 ) Amortization of intangible assets (133,116 ) (135,639 ) (266,291 ) (270,325 ) Acquisition and integration related costs (1,098 ) (2,613 ) (2,180 ) (5,390 ) Restructuring charges (510 ) (7,453 ) (3,312 ) (7,984 ) Start-up costs (5,883 ) (7,129 ) (11,244 ) (13,753 ) Other (including gain (loss) on assets and other miscellaneous corporate overhead) (1,270 ) (4,685 ) (3,095 ) (4,163 ) Loss from operations for “All other” $ (162,782 ) $ (180,977 ) $ (326,372 ) $ (346,199 ) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of the numerators and denominators in the computation of basic and diluted net loss per share | The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Three Months Ended Six Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Numerator: Numerator for basic and diluted net income per share — net income available to common stockholders $ 32,084 $ 35,919 $ 2,091 $ 5,295 Denominator: Denominator for basic net income per share — weighted average shares 125,643 127,257 125,859 127,109 Effect of dilutive securities: Stock-based awards 2,907 3,521 3,118 3,953 Denominator for diluted net income per share — adjusted weighted average shares and assumed conversions 128,550 130,778 128,977 131,062 Basic net income per share $ 0.26 $ 0.28 $ 0.02 $ 0.04 Diluted net income per share $ 0.25 $ 0.27 $ 0.02 $ 0.04 |
Consolidating Financial Infor_2
Consolidating Financial Information Consolidating Financial Information (Tables) | 6 Months Ended |
Sep. 29, 2018 | |
Consolidating Financial Information [Abstract] | |
Condensed Balance Sheet | Condensed Consolidating Balance Sheet September 29, 2018 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 95,152 $ 462,772 $ — $ 557,924 Accounts receivable, less allowance — 50,023 441,160 — 491,183 Intercompany accounts and notes receivable — 389,857 50,428 (440,285 ) — Inventories — 214,519 280,586 (20,573 ) 474,532 Prepaid expenses — 18,699 7,614 — 26,313 Other receivables — 3,795 35,178 — 38,973 Other current assets — 29,696 1,149 — 30,845 Total current assets — 801,741 1,278,887 (460,858 ) 1,619,770 Property and equipment, net — 1,127,933 274,463 (531 ) 1,401,865 Goodwill — 1,122,629 1,051,260 — 2,173,889 Intangible assets, net — 294,900 300,952 — 595,852 Long-term investments — 4,952 85,951 — 90,903 Long-term intercompany accounts and notes receivable — 990,080 92,490 (1,082,570 ) — Investment in subsidiaries 6,272,369 2,450,260 — (8,722,629 ) — Other non-current assets 109,305 32,394 30,496 (107,413 ) 64,782 Total assets $ 6,381,674 $ 6,824,889 $ 3,114,499 $ (10,374,001 ) $ 5,947,061 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 90,561 $ 138,448 $ — $ 229,009 Intercompany accounts and notes payable — 50,428 389,857 (440,285 ) — Accrued liabilities 9,921 126,420 44,806 358 181,505 Other current liabilities — 2,989 48,880 — 51,869 Total current liabilities 9,921 270,398 621,991 (439,927 ) 462,383 Long-term debt 735,098 — — — 735,098 Deferred tax liabilities — 46,815 5,478 (30,361 ) 21,932 Long-term intercompany accounts and notes payable 1,004,518 92,490 (14,438 ) (1,082,570 ) — Other long-term liabilities — 43,784 51,727 — 95,511 Total liabilities 1,749,537 453,487 664,758 (1,552,858 ) 1,314,924 Total stockholders’ equity 4,632,137 6,371,402 2,449,741 (8,821,143 ) 4,632,137 Total liabilities and stockholders’ equity $ 6,381,674 $ 6,824,889 $ 3,114,499 $ (10,374,001 ) $ 5,947,061 Condensed Consolidating Balance Sheet March 31, 2018 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 629,314 $ 296,723 $ — $ 926,037 Accounts receivable, less allowance — 76,863 269,094 — 345,957 Intercompany accounts and notes receivable — 272,409 53,363 (325,772 ) — Inventories — 154,651 339,434 (21,793 ) 472,292 Prepaid expenses — 17,530 6,379 — 23,909 Other receivables — 5,959 38,836 — 44,795 Other current assets — 29,627 1,188 — 30,815 Total current assets — 1,186,353 1,005,017 (347,565 ) 1,843,805 Property and equipment, net — 1,085,255 289,146 (289 ) 1,374,112 Goodwill — 1,121,941 1,051,948 — 2,173,889 Intangible assets, net — 395,317 465,019 — 860,336 Long-term investments — 1,847 61,918 — 63,765 Long-term intercompany accounts and notes receivable — 543,127 116,494 (659,621 ) — Investment in subsidiaries 6,198,885 2,388,222 — (8,587,107 ) — Other non-current assets 72,122 31,011 32,516 (70,037 ) 65,612 Total assets $ 6,271,007 $ 6,753,073 $ 3,022,058 $ (9,664,619 ) $ 6,381,519 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ 78,278 $ 134,915 $ — $ 213,193 Intercompany accounts and notes payable — 53,363 272,409 (325,772 ) — Accrued liabilities 23,102 101,286 43,163 (369 ) 167,182 Other current liabilities — 3,882 57,022 — 60,904 Total current liabilities 23,102 236,809 507,509 (326,141 ) 441,279 Long-term debt 983,290 — — — 983,290 Deferred tax liabilities — 83,449 16,366 (36,731 ) 63,084 Long-term intercompany accounts and notes payable 489,051 116,494 54,076 (659,621 ) — Other long-term liabilities — 62,417 55,885 — 118,302 Total liabilities 1,495,443 499,169 633,836 (1,022,493 ) 1,605,955 Total stockholders’ equity 4,775,564 6,253,904 2,388,222 (8,642,126 ) 4,775,564 Total liabilities and stockholders’ equity $ 6,271,007 $ 6,753,073 $ 3,022,058 $ (9,664,619 ) $ 6,381,519 |
Condensed Statement of Comprehensive Income | Condensed Consolidating Statement of Income and Comprehensive Income Three Months Ended September 29, 2018 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated Revenue $ — $ 236,631 $ 825,844 $ (178,032 ) $ 884,443 Cost of goods sold — 207,221 476,256 (152,548 ) 530,929 Gross profit — 29,410 349,588 (25,484 ) 353,514 Operating expenses: Research and development 6,910 7,340 103,671 (1,173 ) 116,748 Selling, general and administrative 13,876 58,924 91,399 (24,692 ) 139,507 Other operating expense (income) 119 (2,192 ) 8,458 397 6,782 Total operating expenses 20,905 64,072 203,528 (25,468 ) 263,037 Income (loss) from operations (20,905 ) (34,662 ) 146,060 (16 ) 90,477 Interest expense (9,400 ) (522 ) (160 ) 393 (9,689 ) Interest income — 477 1,495 (392 ) 1,580 Other (expense) income (48,779 ) 798 (1,551 ) — (49,532 ) Income (loss) before income taxes (79,084 ) (33,909 ) 145,844 (15 ) 32,836 Income tax (expense) benefit 25,920 (20,470 ) (6,202 ) — (752 ) Income in subsidiaries 85,248 139,642 — (224,890 ) — Net income $ 32,084 $ 85,263 $ 139,642 $ (224,905 ) $ 32,084 Comprehensive income $ 32,012 $ 85,347 $ 139,472 $ (224,819 ) $ 32,012 Condensed Consolidating Statement of Income and Comprehensive Income Three Months Ended September 30, 2017 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated Revenue $ — $ 256,595 $ 775,682 $ (210,694 ) $ 821,583 Cost of goods sold — 196,350 480,439 (176,228 ) 500,561 Gross profit — 60,245 295,243 (34,466 ) 321,022 Operating expenses: Research and development 6,703 11,148 97,800 (4,253 ) 111,398 Selling, general and administrative 16,626 66,958 86,004 (30,721 ) 138,867 Other operating expense 129 16,800 4,288 (24 ) 21,193 Total operating expenses 23,458 94,906 188,092 (34,998 ) 271,458 Income (loss) from operations (23,458 ) (34,661 ) 107,151 532 49,564 Interest expense (14,442 ) (557 ) (434 ) 655 (14,778 ) Interest income — 331 1,382 (655 ) 1,058 Other (expense) income — 970 (3,880 ) 2,718 (192 ) Income (loss) before income taxes (37,900 ) (33,917 ) 104,219 3,250 35,652 Income tax benefit (expense) 19,527 (8,651 ) (10,609 ) — 267 Income in subsidiaries 54,292 93,610 — (147,902 ) — Net income $ 35,919 $ 51,042 $ 93,610 $ (144,652 ) $ 35,919 Comprehensive income $ 35,527 $ 51,080 $ 90,666 $ (141,746 ) $ 35,527 Condensed Consolidating Statement of Income and Comprehensive (Loss) Income Six Months Ended September 29, 2018 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ 468,570 $ 1,451,805 $ (343,262 ) $ 1,577,113 Cost of goods sold — 397,532 885,953 (296,619 ) 986,866 Gross profit — 71,038 565,852 (46,643 ) 590,247 Operating expenses: Research and development 13,311 10,619 206,119 (2,398 ) 227,651 Selling, general and administrative 26,671 116,880 177,778 (45,892 ) 275,437 Other operating expense 269 5,748 9,512 368 15,897 Total operating expenses 40,251 133,247 393,409 (47,922 ) 518,985 Income (loss) from operations (40,251 ) (62,209 ) 172,443 1,279 71,262 Interest expense (23,442 ) (1,059 ) (321 ) 780 (24,042 ) Interest income — 2,883 2,870 (779 ) 4,974 Other (expense) income (82,152 ) 1,126 (461 ) — (81,487 ) (Loss) income before income taxes (145,845 ) (59,259 ) 174,531 1,280 (29,293 ) Income tax benefit (expense) 37,374 (3,666 ) (2,324 ) — 31,384 Income in subsidiaries 110,562 172,207 — (282,769 ) — Net income $ 2,091 $ 109,282 $ 172,207 $ (281,489 ) $ 2,091 Comprehensive (loss) income $ (165 ) $ 109,371 $ 169,727 $ (279,098 ) $ (165 ) Condensed Consolidating Statement of Income and Comprehensive Income Six Months Ended September 30, 2017 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenue $ — $ 528,548 $ 1,356,236 $ (422,370 ) $ 1,462,414 Cost of goods sold — 380,354 873,175 (348,514 ) 905,015 Gross profit — 148,194 483,061 (73,856 ) 557,399 Operating expenses: Research and development 13,499 27,886 195,084 (8,572 ) 227,897 Selling, general and administrative 30,871 133,170 180,056 (65,799 ) 278,298 Other operating expense 214 23,860 5,298 97 29,469 Total operating expenses 44,584 184,916 380,438 (74,274 ) 535,664 Income (loss) from operations (44,584 ) (36,722 ) 102,623 418 21,735 Interest expense (26,366 ) (1,132 ) (768 ) 1,217 (27,049 ) Interest income — 825 2,216 (1,217 ) 1,824 Other (expense) income — 756 (1,882 ) — (1,126 ) (Loss) income before income taxes (70,950 ) (36,273 ) 102,189 418 (4,616 ) Income tax benefit (expense) 35,773 (16,175 ) (9,687 ) — 9,911 Income in subsidiaries 40,472 92,502 — (132,974 ) — Net income $ 5,295 $ 40,054 $ 92,502 $ (132,556 ) $ 5,295 Comprehensive income $ 5,622 $ 40,153 $ 90,216 $ (130,369 ) $ 5,622 |
Condensed Cash Flow Statement | Condensed Consolidating Statement of Cash Flows Six Months Ended September 29, 2018 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated Net cash provided by (used in) operating activities $ 522,959 $ (548,315 ) $ 315,152 $ — $ 289,796 Investing activities: Purchase of property and equipment — (95,897 ) (17,769 ) — (113,666 ) Purchase of debt securities and other investments — (132,729 ) — — (132,729 ) Proceeds from maturities of other investments — 133,132 — — 133,132 Other investing activities — (1,086 ) (18,406 ) — (19,492 ) Net transactions with related parties — 110,047 — (110,047 ) — Net cash (used in) provided by investing activities — 13,467 (36,175 ) (110,047 ) (132,755 ) Financing activities: Payment of debt (954,745 ) — — — (954,745 ) Proceeds from debt issuances 631,300 — — — 631,300 Repurchase of common stock, including transaction costs (186,682 ) — — — (186,682 ) Proceeds from the issuance of common stock 18,406 — — — 18,406 Tax withholding paid on behalf of employees for restricted stock units (24,181 ) — — — (24,181 ) Other financing activities (7,057 ) — — — (7,057 ) Net transactions with related parties — 686 (110,733 ) 110,047 — Net cash (used in) provided by financing activities (522,959 ) 686 (110,733 ) 110,047 (522,959 ) Effect of exchange rate changes on cash — — (2,216 ) — (2,216 ) Net (decrease) increase in cash, cash equivalents and restricted cash — (534,162 ) 166,028 — (368,134 ) Cash, cash equivalents and restricted cash at the beginning of the period — 629,314 297,088 — 926,402 Cash, cash equivalents and restricted cash at the end of the period $ — $ 95,152 $ 463,116 $ — $ 558,268 Condensed Consolidating Statement of Cash Flows Six Months Ended September 30, 2017 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Reclassifications Consolidated Net cash provided by (used in) operating activities $ 80,063 $ (2,241 ) $ 245,672 $ — $ 323,494 Investing activities: Purchase of property and equipment — (159,337 ) (32,882 ) — (192,219 ) Other investing activities — 7,154 (30,182 ) — (23,028 ) Net transactions with related parties — 24,100 (24,100 ) — — Net cash used in investing activities — (128,083 ) (87,164 ) — (215,247 ) Financing activities: Repurchase of common stock, including transaction costs (88,925 ) — — — (88,925 ) Proceeds from the issuance of common stock 32,867 — — — 32,867 Tax withholding paid on behalf of employees for restricted stock units (24,005 ) — — — (24,005 ) Net transactions with related parties — 686 (686 ) — — Net cash (used in) provided by financing activities (80,063 ) 686 (686 ) — (80,063 ) Effect of exchange rate changes on cash — — 1,260 — 1,260 Net increase (decrease) in cash, cash equivalents and restricted cash — (129,638 ) 159,082 — 29,444 Cash, cash equivalents and restricted cash at the beginning of the period — 226,186 319,593 — 545,779 Cash, cash equivalents and restricted cash at the end of the period $ — $ 96,548 $ 478,675 $ — $ 575,223 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Mar. 31, 2018 |
Components of inventories | ||
Raw materials | $ 112,227 | $ 110,389 |
Work in process | 252,891 | 221,137 |
Finished goods | 109,414 | 140,766 |
Total inventories | $ 474,532 | $ 472,292 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 29, 2018 | Sep. 29, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, net | $ 595,852 | $ 595,852 | $ 860,336 | |
Amortization expense | 133,400 | 266,708 | $ 270,546 | |
Developed Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Net | 386,900 | 386,900 | ||
Customer Relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Net | $ 196,800 | $ 196,800 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements (Details) - Auction Rate Securities [Member] - USD ($) $ in Thousands | Sep. 29, 2018 | Mar. 31, 2018 |
Available-for-sale debt securities | ||
Cost basis | $ 1,950 | $ 1,950 |
Gross unrealized losses | (17) | (107) |
Estimated fair value | $ 1,933 | $ 1,843 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements (Details 1) - Debt Securities [Member] - USD ($) $ in Thousands | Sep. 29, 2018 | Mar. 31, 2018 |
Schedule of Expected Maturities of Available-for-Sale Debt Securities[Line Items] | ||
Cost of investments in debt securities due in less than one year | $ 0 | $ 0 |
Cost of investments in debt securities due after ten years | 1,950 | 1,950 |
Cost | 1,950 | 1,950 |
Estimated fair value of investments in debt securities due in less than one year | 0 | 0 |
Estimated fair value of investments in debt securities due after ten years | 1,933 | 1,843 |
Estimated fair value | $ 1,933 | $ 1,843 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements (Details 2) - Recurring [Member] - USD ($) $ in Thousands | Sep. 29, 2018 | Mar. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Invested funds in deferred compensation plan | [1] | $ 16,472 | $ 14,284 |
Total assets measured at fair value | 18,405 | 16,136 | |
Deferred compensation plan obligation | [1] | 16,472 | 14,284 |
Total liabilities measured at fair value | 16,472 | 14,284 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Invested funds in deferred compensation plan | [1] | 16,472 | 14,284 |
Total assets measured at fair value | 16,472 | 14,293 | |
Deferred compensation plan obligation | [1] | 16,472 | 14,284 |
Total liabilities measured at fair value | 16,472 | 14,284 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Invested funds in deferred compensation plan | [1] | 0 | 0 |
Total assets measured at fair value | 1,933 | 1,843 | |
Auction Rate Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale securities | [2] | 1,933 | 1,843 |
Auction Rate Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale securities | [2] | 1,933 | 1,843 |
Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Money Market Funds | 0 | 9 | |
Money Market Funds [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Money Market Funds | $ 0 | $ 9 | |
[1] | The Company's non-qualified deferred compensation plan provides eligible employees and members of the Board of Directors with the opportunity to defer a specified percentage of their cash compensation. The Company includes the assets deferred by the participants in the “Other current assets” and “Other non-current assets” line items of its Condensed Consolidated Balance Sheets and the Company's obligation to deliver the deferred compensation in the "Other current liabilities" and “Other long-term liabilities” line items of its Condensed Consolidated Balance Sheets. | ||
[2] | ARS are debt instruments with interest rates that reset through periodic short-term auctions. The Company’s Level 2 ARS are valued based on quoted prices for identical or similar instruments in markets that are not active. |
Investments and Fair Value Me_6
Investments and Fair Value Measurements (Details Textual) $ in Millions | Sep. 29, 2018USD ($) |
Investments and Fair Value Measurements [Abstract] | |
Equity Securities without Readily Determinable Fair Value, Amount | $ 60 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 29, 2018 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||
Document Period End Date | Sep. 29, 2018 | |
Long-term debt | $ 735,098 | $ 983,290 |
Unamortized Debt Issuance Expense | 7,012 | 9,674 |
6.75% Senior Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 444,464 |
7.00% Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 112,110 | 548,500 |
5.5% Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 630,000 | $ 0 |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Thousands | Aug. 28, 2018 | Jul. 19, 2018 | Jul. 16, 2018 | Jun. 29, 2018 | Dec. 05, 2017 | Mar. 31, 2018 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Aug. 14, 2018 | Jul. 10, 2018 | Jun. 15, 2018 | Nov. 19, 2015 |
Debt Instrument [Line Items] | ||||||||||||||
Document Period End Date | Sep. 29, 2018 | |||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 48,800 | $ 82,200 | ||||||||||||
Proceeds from debt issuances (Note 6) | 631,300 | $ 0 | ||||||||||||
Long-term debt | $ 983,290 | $ 735,098 | $ 735,098 | |||||||||||
6.75% Senior Notes due 2023 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 450,000 | |||||||||||||
Stated Interest Rate | 6.75% | 6.75% | ||||||||||||
Repayments of Senior Debt | $ 15,300 | $ 429,200 | $ 5,500 | |||||||||||
Senior notes, redemption percentage, actual | 100.00% | 106.75% | 107.50% | |||||||||||
Long-term debt | $ 444,464 | $ 0 | $ 0 | |||||||||||
7.00% Senior Notes due 2025 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 550,000 | |||||||||||||
Stated Interest Rate | 7.00% | 7.00% | ||||||||||||
Repayments of Senior Debt | $ 136,400 | $ 300,000 | $ 1,500 | |||||||||||
Senior notes, redemption percentage, actual | 110.00% | 109.63% | 109.50% | |||||||||||
Tender Offer Cap | $ 140,000 | $ 130,000 | $ 300,000 | $ 150,000 | ||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||||||||||||
Debt Instrument, Redemption Price, Percentage | 107.00% | |||||||||||||
Long-term Debt, Fair Value | $ 596,500 | $ 120,000 | $ 120,000 | |||||||||||
Long-term debt | 548,500 | 112,110 | 112,110 | |||||||||||
Senior notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest Expense, Borrowings | 10,900 | $ 17,300 | 28,000 | 34,600 | ||||||||||
Interest Costs Capitalized | 1,800 | $ 3,200 | 5,300 | 8,800 | ||||||||||
Interest Paid | 7,300 | 41,500 | $ 34,400 | |||||||||||
5.5% Senior Notes due 2026 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 500,000 | |||||||||||||
Stated Interest Rate | 5.50% | |||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||||||||||||
Debt Instrument, Redemption Price, Percentage | 105.50% | |||||||||||||
Long-term Debt, Fair Value | 641,025 | 641,025 | ||||||||||||
Long-term debt | $ 0 | 630,000 | 630,000 | |||||||||||
Bank of America Syndicate [Member] | Senior Delayed Draw Term Loan [Member] | Credit Agreement [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior Delayed Draw Term Loan, Maximum Amount | $ 400,000 | |||||||||||||
Proceeds from debt issuances (Note 6) | 100,000 | |||||||||||||
Bank of America Syndicate [Member] | Revolving Credit Facility [Member] | Credit Agreement [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Proceeds from Lines of Credit | 0 | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000 | |||||||||||||
Line of Credit Facility, Maximum amount of increase that may be requested | 300,000 | |||||||||||||
Long-term debt | $ 0 | $ 0 | ||||||||||||
Bank of America Syndicate [Member] | Standby Letters of Credit [Member] | Credit Agreement [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 25,000 | |||||||||||||
Bank of America Syndicate [Member] | Swingline Loan [Member] | Credit Agreement [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000 | |||||||||||||
Minimum [Member] | 5.5% Senior Notes due 2026 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt, Interest Rate, Default Increase, Percentage | 0.25% | |||||||||||||
Each additional 90-day period | 5.5% Senior Notes due 2026 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt, Interest Rate, Default Increase, Percentage | 0.25% | |||||||||||||
Maximum [Member] | 5.5% Senior Notes due 2026 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt, Interest Rate, Default Increase, Percentage | 1.00% |
Stock Repurchases (Details)
Stock Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | May 23, 2018 | |
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 849.2 | $ 849.2 | |||
Stock Repurchased During Period, Shares | 0.8 | 2.3 | 1.2 | ||
Stock Repurchased During Period, Value | $ 57 | $ 186.7 | $ 88.9 | ||
November 2016 Program | |||||
Class of Stock [Line Items] | |||||
Stock Repurchased During Period, Shares | 0.4 | ||||
Stock Repurchased During Period, Value | $ 35.9 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 126.3 | ||||
May 2018 Program | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | ||||
Stock Repurchased During Period, Shares | 1.1 | ||||
Stock Repurchased During Period, Value | $ 86.7 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue | ||||
Revenue | $ 884,443 | $ 821,583 | $ 1,577,113 | $ 1,462,414 |
China | ||||
Disaggregation of Revenue | ||||
Revenue | 548,848 | 430,141 | 915,382 | 779,772 |
Taiwan | ||||
Disaggregation of Revenue | ||||
Revenue | 160,835 | 169,913 | 316,006 | 260,071 |
United States | ||||
Disaggregation of Revenue | ||||
Revenue | 106,294 | 127,897 | 214,760 | 266,257 |
Other Asia | ||||
Disaggregation of Revenue | ||||
Revenue | 39,241 | 64,901 | 73,810 | 101,076 |
Europe | ||||
Disaggregation of Revenue | ||||
Revenue | 24,302 | 24,534 | 46,938 | 45,769 |
Other Countries | ||||
Disaggregation of Revenue | ||||
Revenue | $ 4,923 | $ 4,197 | $ 10,217 | $ 9,469 |
Revenue (Details textual)
Revenue (Details textual) $ in Millions | 6 Months Ended |
Sep. 29, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue for product and services over time as a percent of total revenue (less than) | 2.00% |
Cumulative effect of adoption as a percentage of revenue (less than) | 1.00% |
Rebates as percentage of sales (less than) | 5.00% |
Remaining unsatisfied performance obligations with an original duration of greater than one year | $ 41.6 |
Operating Segment Information_2
Operating Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | ||
Revenue: | |||||
Revenue | $ 884,443 | $ 821,583 | $ 1,577,113 | $ 1,462,414 | |
Income from operations: | |||||
Income (loss) from operations | 90,477 | 49,564 | 71,262 | 21,735 | |
Interest expense (Note 6) | (9,689) | (14,778) | (24,042) | (27,049) | |
Interest income | 1,580 | 1,058 | 4,974 | 1,824 | |
Other expense (Note 6) | (49,532) | (192) | (81,487) | (1,126) | |
Income (loss) before income taxes | 32,836 | 35,652 | (29,293) | (4,616) | |
Operating Segments | MP | |||||
Revenue: | |||||
Revenue | 666,539 | 630,397 | 1,152,618 | 1,086,620 | |
Income from operations: | |||||
Income (loss) from operations | 196,948 | 172,892 | 286,119 | 260,699 | |
Operating Segments | IDP | |||||
Revenue: | |||||
Revenue | 217,904 | 190,216 | 424,495 | 373,854 | |
Income from operations: | |||||
Income (loss) from operations | 56,311 | 57,649 | 111,515 | 107,235 | |
All other | |||||
Revenue: | |||||
Revenue | [1] | 0 | 970 | 0 | 1,940 |
Income from operations: | |||||
Income (loss) from operations | $ (162,782) | $ (180,977) | $ (326,372) | $ (346,199) | |
[1] | "All other" revenue relates to royalty income that is not allocated to MP or IDP for the three and six months ended September 30, 2017. As a result of the adoption of ASU 2014-09, income related to a right-to-use license of intellectual property was recognized at a point-in-time and, therefore, was included as a transition adjustment impacting retained earnings |
Operating Segment Information_3
Operating Segment Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Reconciliation of "All other" category: | ||||
Stock-based compensation expense | $ (40,250) | $ (44,584) | ||
Amortization of intangible assets | $ (133,400) | (266,708) | (270,546) | |
Loss from operations for “All other” | 90,477 | $ 49,564 | 71,262 | 21,735 |
All other | ||||
Reconciliation of "All other" category: | ||||
Stock-based compensation expense | (20,905) | (23,458) | (40,250) | (44,584) |
Amortization of intangible assets | (133,116) | (135,639) | (266,291) | (270,325) |
Acquisition and integration related costs | (1,098) | (2,613) | (2,180) | (5,390) |
Restructuring charges | (510) | (7,453) | (3,312) | (7,984) |
Start-up costs | (5,883) | (7,129) | (11,244) | (13,753) |
Other (including gain (loss) on assets and other miscellaneous corporate overhead) | (1,270) | (4,685) | (3,095) | (4,163) |
Loss from operations for “All other” | $ (162,782) | $ (180,977) | $ (326,372) | $ (346,199) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ 752 | $ (267) | $ (31,384) | $ (9,911) | |
Effective tax rate | 2.30% | (0.70%) | 107.10% | 214.70% | |
Gross unrecognized tax benefits | $ 134,100 | $ 134,100 | $ 122,800 |
Income Taxes (US Tax Reform) (D
Income Taxes (US Tax Reform) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
U.S. Tax Cuts and Jobs Act [Line Items] | |||||
Income tax expense (benefit) | $ 752 | $ (267) | $ (31,384) | $ (9,911) | |
Estimated deferred tax benefit | 42,962 | $ 17,290 | |||
U.S. Tax Cuts and Jobs Act, Effective 2018 [Member] | |||||
U.S. Tax Cuts and Jobs Act [Line Items] | |||||
Estimated repatriation tax expense | $ 116,400 | ||||
Estimated deferred tax benefit | $ 39,100 | ||||
Measurement period adjustment, income tax expense (benefit) | (15,900) | ||||
Increase (decrease) in Transitional Repatriation Tax liability | (11,600) | ||||
Increase (decrease) in deferred tax assets | $ 4,300 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Numerator for basic and diluted net income per share — net income available to common stockholders | $ 32,084 | $ 35,919 | $ 2,091 | $ 5,295 |
Denominator: | ||||
Denominator for basic net income per share — weighted average shares | 125,643 | 127,257 | 125,859 | 127,109 |
Effect of dilutive securities: | ||||
Stock-based awards | 2,907 | 3,521 | 3,118 | 3,953 |
Denominator for diluted net income per share — adjusted weighted average shares and assumed conversions | 128,550 | 130,778 | 128,977 | 131,062 |
Basic net loss per share (in dollars per share) | $ 0.26 | $ 0.28 | $ 0.02 | $ 0.04 |
Diluted net loss per share (in dollars per share) | $ 0.25 | $ 0.27 | $ 0.02 | $ 0.04 |
Net Income Per Share (Details T
Net Income Per Share (Details Textual) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | ||||
Antidilutive shares excluded from the computation of diluted shares outstanding | 0.3 | 0.1 | 0.2 | 0.1 |
Consolidating Financial Infor_3
Consolidating Financial Information Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Mar. 31, 2018 |
Cash and cash equivalents | $ 557,924 | $ 926,037 |
Short-term investments (Note 5) | 0 | |
Accounts receivable, less allowance | 491,183 | 345,957 |
Intercompany accounts and notes receivable | 0 | 0 |
Inventories | 474,532 | 472,292 |
Prepaid expenses | 26,313 | 23,909 |
Other receivables | 38,973 | 44,795 |
Other current assets | 30,845 | 30,815 |
Total current assets | 1,619,770 | 1,843,805 |
Property and equipment, net | 1,401,865 | 1,374,112 |
Goodwill | 2,173,889 | 2,173,889 |
Intangible assets, net | 595,852 | 860,336 |
Long-term Investments | 90,903 | 63,765 |
Long-term intercompany accounts and notes receivable | 0 | 0 |
Investment in subsidiaries | 0 | 0 |
Other non-current assets | 64,782 | 65,612 |
Total assets | 5,947,061 | 6,381,519 |
Accounts payable | 229,009 | 213,193 |
Intercompany accounts and notes payable | 0 | 0 |
Accrued liabilities | 181,505 | 167,182 |
Other current liabilities | 51,869 | 60,904 |
Total current liabilities | 462,383 | 441,279 |
Long-term debt | 735,098 | 983,290 |
Deferred tax liabilities | 21,932 | 63,084 |
Long-term intercompany accounts and notes payable | 0 | 0 |
Other long-term liabilities | 95,511 | 118,302 |
Total liabilities | 1,314,924 | 1,605,955 |
Total stockholders’ equity | 4,632,137 | 4,775,564 |
Total liabilities and stockholders’ equity | 5,947,061 | 6,381,519 |
Guarantor Subsidiaries | ||
Cash and cash equivalents | 95,152 | 629,314 |
Short-term investments (Note 5) | 0 | |
Accounts receivable, less allowance | 50,023 | 76,863 |
Intercompany accounts and notes receivable | 389,857 | 272,409 |
Inventories | 214,519 | 154,651 |
Prepaid expenses | 18,699 | 17,530 |
Other receivables | 3,795 | 5,959 |
Other current assets | 29,696 | 29,627 |
Total current assets | 801,741 | 1,186,353 |
Property and equipment, net | 1,127,933 | 1,085,255 |
Goodwill | 1,122,629 | 1,121,941 |
Intangible assets, net | 294,900 | 395,317 |
Long-term Investments | 4,952 | 1,847 |
Long-term intercompany accounts and notes receivable | 990,080 | 543,127 |
Investment in subsidiaries | 2,450,260 | 2,388,222 |
Other non-current assets | 32,394 | 31,011 |
Total assets | 6,824,889 | 6,753,073 |
Accounts payable | 90,561 | 78,278 |
Intercompany accounts and notes payable | 50,428 | 53,363 |
Accrued liabilities | 126,420 | 101,286 |
Other current liabilities | 2,989 | 3,882 |
Total current liabilities | 270,398 | 236,809 |
Long-term debt | 0 | 0 |
Deferred tax liabilities | 46,815 | 83,449 |
Long-term intercompany accounts and notes payable | 92,490 | 116,494 |
Other long-term liabilities | 43,784 | 62,417 |
Total liabilities | 453,487 | 499,169 |
Total stockholders’ equity | 6,371,402 | 6,253,904 |
Total liabilities and stockholders’ equity | 6,824,889 | 6,753,073 |
Non-Guarantor Subsidiaries | ||
Cash and cash equivalents | 462,772 | 296,723 |
Short-term investments (Note 5) | 0 | |
Accounts receivable, less allowance | 441,160 | 269,094 |
Intercompany accounts and notes receivable | 50,428 | 53,363 |
Inventories | 280,586 | 339,434 |
Prepaid expenses | 7,614 | 6,379 |
Other receivables | 35,178 | 38,836 |
Other current assets | 1,149 | 1,188 |
Total current assets | 1,278,887 | 1,005,017 |
Property and equipment, net | 274,463 | 289,146 |
Goodwill | 1,051,260 | 1,051,948 |
Intangible assets, net | 300,952 | 465,019 |
Long-term Investments | 85,951 | 61,918 |
Long-term intercompany accounts and notes receivable | 92,490 | 116,494 |
Investment in subsidiaries | 0 | 0 |
Other non-current assets | 30,496 | 32,516 |
Total assets | 3,114,499 | 3,022,058 |
Accounts payable | 138,448 | 134,915 |
Intercompany accounts and notes payable | 389,857 | 272,409 |
Accrued liabilities | 44,806 | 43,163 |
Other current liabilities | 48,880 | 57,022 |
Total current liabilities | 621,991 | 507,509 |
Long-term debt | 0 | 0 |
Deferred tax liabilities | 5,478 | 16,366 |
Long-term intercompany accounts and notes payable | (14,438) | 54,076 |
Other long-term liabilities | 51,727 | 55,885 |
Total liabilities | 664,758 | 633,836 |
Total stockholders’ equity | 2,449,741 | 2,388,222 |
Total liabilities and stockholders’ equity | 3,114,499 | 3,022,058 |
Parent Company | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments (Note 5) | 0 | |
Accounts receivable, less allowance | 0 | 0 |
Intercompany accounts and notes receivable | 0 | 0 |
Inventories | 0 | 0 |
Prepaid expenses | 0 | 0 |
Other receivables | 0 | 0 |
Other current assets | 0 | 0 |
Total current assets | 0 | 0 |
Property and equipment, net | 0 | 0 |
Goodwill | 0 | 0 |
Intangible assets, net | 0 | 0 |
Long-term Investments | 0 | 0 |
Long-term intercompany accounts and notes receivable | 0 | 0 |
Investment in subsidiaries | 6,272,369 | 6,198,885 |
Other non-current assets | 109,305 | 72,122 |
Total assets | 6,381,674 | 6,271,007 |
Accounts payable | 0 | 0 |
Intercompany accounts and notes payable | 0 | 0 |
Accrued liabilities | 9,921 | 23,102 |
Other current liabilities | 0 | 0 |
Total current liabilities | 9,921 | 23,102 |
Long-term debt | 735,098 | 983,290 |
Deferred tax liabilities | 0 | 0 |
Long-term intercompany accounts and notes payable | 1,004,518 | 489,051 |
Other long-term liabilities | 0 | 0 |
Total liabilities | 1,749,537 | 1,495,443 |
Total stockholders’ equity | 4,632,137 | 4,775,564 |
Total liabilities and stockholders’ equity | 6,381,674 | 6,271,007 |
Eliminations and Reclassifications | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments (Note 5) | 0 | |
Accounts receivable, less allowance | 0 | 0 |
Intercompany accounts and notes receivable | (440,285) | (325,772) |
Inventories | (20,573) | (21,793) |
Prepaid expenses | 0 | 0 |
Other receivables | 0 | 0 |
Other current assets | 0 | 0 |
Total current assets | (460,858) | (347,565) |
Property and equipment, net | (531) | (289) |
Goodwill | 0 | 0 |
Intangible assets, net | 0 | 0 |
Long-term Investments | 0 | 0 |
Long-term intercompany accounts and notes receivable | (1,082,570) | (659,621) |
Investment in subsidiaries | (8,722,629) | (8,587,107) |
Other non-current assets | (107,413) | (70,037) |
Total assets | (10,374,001) | (9,664,619) |
Accounts payable | 0 | 0 |
Intercompany accounts and notes payable | (440,285) | (325,772) |
Accrued liabilities | 358 | (369) |
Other current liabilities | 0 | 0 |
Total current liabilities | (439,927) | (326,141) |
Long-term debt | 0 | 0 |
Deferred tax liabilities | (30,361) | (36,731) |
Long-term intercompany accounts and notes payable | (1,082,570) | (659,621) |
Other long-term liabilities | 0 | 0 |
Total liabilities | (1,552,858) | (1,022,493) |
Total stockholders’ equity | (8,821,143) | (8,642,126) |
Total liabilities and stockholders’ equity | $ (10,374,001) | $ (9,664,619) |
Consolidating Financial Infor_4
Consolidating Financial Information Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Revenue | $ 884,443 | $ 821,583 | $ 1,577,113 | $ 1,462,414 |
Cost of goods sold | 530,929 | 500,561 | 986,866 | 905,015 |
Gross profit | 353,514 | 321,022 | 590,247 | 557,399 |
Research and development | 116,748 | 111,398 | 227,651 | 227,897 |
Selling, general and administrative | 139,507 | 138,867 | 275,437 | 278,298 |
Other operating expense | 6,782 | 21,193 | 15,897 | 29,469 |
Total operating expenses | 263,037 | 271,458 | 518,985 | 535,664 |
Income (loss) from operations | 90,477 | 49,564 | 71,262 | 21,735 |
Interest expense | (9,689) | (14,778) | (24,042) | (27,049) |
Interest income | 1,580 | 1,058 | 4,974 | 1,824 |
Other expense (income) | (49,532) | (192) | (81,487) | (1,126) |
Income (loss) before income taxes | 32,836 | 35,652 | (29,293) | (4,616) |
Income tax (expense) benefit (Note 10) | (752) | 267 | 31,384 | 9,911 |
Income in subsidiaries | 0 | 0 | 0 | 0 |
Net income | 32,084 | 35,919 | 2,091 | 5,295 |
Comprehensive income (loss) | 32,012 | 35,527 | (165) | 5,622 |
Parent Company | ||||
Revenue | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Research and development | 6,910 | 6,703 | 13,311 | 13,499 |
Selling, general and administrative | 13,876 | 16,626 | 26,671 | 30,871 |
Other operating expense | 119 | 129 | 269 | 214 |
Total operating expenses | 20,905 | 23,458 | 40,251 | 44,584 |
Income (loss) from operations | (20,905) | (23,458) | (40,251) | (44,584) |
Interest expense | (9,400) | (14,442) | (23,442) | (26,366) |
Interest income | 0 | 0 | 0 | 0 |
Other expense (income) | (48,779) | 0 | (82,152) | 0 |
Income (loss) before income taxes | (79,084) | (37,900) | (145,845) | (70,950) |
Income tax (expense) benefit (Note 10) | 25,920 | 19,527 | 37,374 | 35,773 |
Income in subsidiaries | 85,248 | 54,292 | 110,562 | 40,472 |
Net income | 32,084 | 35,919 | 2,091 | 5,295 |
Comprehensive income (loss) | 32,012 | 35,527 | (165) | 5,622 |
Guarantor Subsidiaries | ||||
Revenue | 236,631 | 256,595 | 468,570 | 528,548 |
Cost of goods sold | 207,221 | 196,350 | 397,532 | 380,354 |
Gross profit | 29,410 | 60,245 | 71,038 | 148,194 |
Research and development | 7,340 | 11,148 | 10,619 | 27,886 |
Selling, general and administrative | 58,924 | 66,958 | 116,880 | 133,170 |
Other operating expense | (2,192) | 16,800 | 5,748 | 23,860 |
Total operating expenses | 64,072 | 94,906 | 133,247 | 184,916 |
Income (loss) from operations | (34,662) | (34,661) | (62,209) | (36,722) |
Interest expense | (522) | (557) | (1,059) | (1,132) |
Interest income | 477 | 331 | 2,883 | 825 |
Other expense (income) | 798 | 970 | 1,126 | 756 |
Income (loss) before income taxes | (33,909) | (33,917) | (59,259) | (36,273) |
Income tax (expense) benefit (Note 10) | (20,470) | (8,651) | (3,666) | (16,175) |
Income in subsidiaries | 139,642 | 93,610 | 172,207 | 92,502 |
Net income | 85,263 | 51,042 | 109,282 | 40,054 |
Comprehensive income (loss) | 85,347 | 51,080 | 109,371 | 40,153 |
Non-Guarantor Subsidiaries | ||||
Revenue | 825,844 | 775,682 | 1,451,805 | 1,356,236 |
Cost of goods sold | 476,256 | 480,439 | 885,953 | 873,175 |
Gross profit | 349,588 | 295,243 | 565,852 | 483,061 |
Research and development | 103,671 | 97,800 | 206,119 | 195,084 |
Selling, general and administrative | 91,399 | 86,004 | 177,778 | 180,056 |
Other operating expense | 8,458 | 4,288 | 9,512 | 5,298 |
Total operating expenses | 203,528 | 188,092 | 393,409 | 380,438 |
Income (loss) from operations | 146,060 | 107,151 | 172,443 | 102,623 |
Interest expense | (160) | (434) | (321) | (768) |
Interest income | 1,495 | 1,382 | 2,870 | 2,216 |
Other expense (income) | (1,551) | (3,880) | (461) | (1,882) |
Income (loss) before income taxes | 145,844 | 104,219 | 174,531 | 102,189 |
Income tax (expense) benefit (Note 10) | (6,202) | (10,609) | (2,324) | (9,687) |
Income in subsidiaries | 0 | 0 | 0 | 0 |
Net income | 139,642 | 93,610 | 172,207 | 92,502 |
Comprehensive income (loss) | 139,472 | 90,666 | 169,727 | 90,216 |
Eliminations and Reclassifications | ||||
Revenue | (178,032) | (210,694) | (343,262) | (422,370) |
Cost of goods sold | (152,548) | (176,228) | (296,619) | (348,514) |
Gross profit | (25,484) | (34,466) | (46,643) | (73,856) |
Research and development | (1,173) | (4,253) | (2,398) | (8,572) |
Selling, general and administrative | (24,692) | (30,721) | (45,892) | (65,799) |
Other operating expense | 397 | (24) | 368 | 97 |
Total operating expenses | (25,468) | (34,998) | (47,922) | (74,274) |
Income (loss) from operations | (16) | 532 | 1,279 | 418 |
Interest expense | 393 | 655 | 780 | 1,217 |
Interest income | (392) | (655) | (779) | (1,217) |
Other expense (income) | 0 | 2,718 | 0 | 0 |
Income (loss) before income taxes | (15) | 3,250 | 1,280 | 418 |
Income tax (expense) benefit (Note 10) | 0 | 0 | 0 | 0 |
Income in subsidiaries | (224,890) | (147,902) | (282,769) | (132,974) |
Net income | (224,905) | (144,652) | (281,489) | (132,556) |
Comprehensive income (loss) | $ (224,819) | $ (141,746) | $ (279,098) | $ (130,369) |
Consolidating Financial Infor_5
Consolidating Financial Information Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Net Cash Provided by (Used in) Operating Activities | $ 289,796 | $ 323,494 |
Payments to Acquire Property, Plant, and Equipment | (113,666) | (192,219) |
Purchase of debt securities and other investments | (132,729) | 0 |
Proceeds from maturities of other investments | 133,132 | 0 |
Other investing activities | (19,492) | (23,028) |
Net transactions with related parties, investing | 0 | 0 |
Net cash used in investing activities | (132,755) | (215,247) |
Payment of debt (Note 6) | (954,745) | 0 |
Proceeds from debt issuances (Note 6) | 631,300 | 0 |
Repurchase of common stock, including transaction costs (Note 7) | (186,682) | (88,925) |
Proceeds from the issuance of common stock | 18,406 | 32,867 |
Tax withholding paid on behalf of employees for restricted stock units | (24,181) | (24,005) |
Other financing activities | (7,057) | 0 |
Net transactions with related parties | 0 | 0 |
Net cash used in financing activities | (522,959) | (80,063) |
Effect of Exchange Rate on Cash and Cash Equivalents | (2,216) | 1,260 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (368,134) | 29,444 |
Cash, cash equivalents and restricted cash at the beginning of the period | 926,402 | 545,779 |
Cash, cash equivalents and restricted cash at the end of the period | 558,268 | 575,223 |
Parent Company | ||
Net Cash Provided by (Used in) Operating Activities | 522,959 | 80,063 |
Payments to Acquire Property, Plant, and Equipment | 0 | 0 |
Purchase of debt securities and other investments | 0 | |
Proceeds from maturities of other investments | 0 | |
Other investing activities | 0 | 0 |
Net transactions with related parties, investing | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Payment of debt (Note 6) | (954,745) | |
Proceeds from debt issuances (Note 6) | 631,300 | |
Repurchase of common stock, including transaction costs (Note 7) | (186,682) | (88,925) |
Proceeds from the issuance of common stock | 18,406 | 32,867 |
Tax withholding paid on behalf of employees for restricted stock units | (24,181) | (24,005) |
Other financing activities | (7,057) | |
Net transactions with related parties | 0 | 0 |
Net cash used in financing activities | (522,959) | (80,063) |
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at the beginning of the period | 0 | 0 |
Cash, cash equivalents and restricted cash at the end of the period | 0 | 0 |
Guarantor Subsidiaries | ||
Net Cash Provided by (Used in) Operating Activities | (548,315) | (2,241) |
Payments to Acquire Property, Plant, and Equipment | (95,897) | (159,337) |
Purchase of debt securities and other investments | (132,729) | |
Proceeds from maturities of other investments | 133,132 | |
Other investing activities | (1,086) | 7,154 |
Net transactions with related parties, investing | 110,047 | 24,100 |
Net cash used in investing activities | 13,467 | (128,083) |
Payment of debt (Note 6) | 0 | |
Proceeds from debt issuances (Note 6) | 0 | |
Repurchase of common stock, including transaction costs (Note 7) | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 |
Tax withholding paid on behalf of employees for restricted stock units | 0 | 0 |
Other financing activities | 0 | |
Net transactions with related parties | 686 | 686 |
Net cash used in financing activities | 686 | 686 |
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (534,162) | (129,638) |
Cash, cash equivalents and restricted cash at the beginning of the period | 629,314 | 226,186 |
Cash, cash equivalents and restricted cash at the end of the period | 95,152 | 96,548 |
Non-Guarantor Subsidiaries | ||
Net Cash Provided by (Used in) Operating Activities | 315,152 | 245,672 |
Payments to Acquire Property, Plant, and Equipment | (17,769) | (32,882) |
Purchase of debt securities and other investments | 0 | |
Proceeds from maturities of other investments | 0 | |
Other investing activities | (18,406) | (30,182) |
Net transactions with related parties, investing | 0 | (24,100) |
Net cash used in investing activities | (36,175) | (87,164) |
Payment of debt (Note 6) | 0 | |
Proceeds from debt issuances (Note 6) | 0 | |
Repurchase of common stock, including transaction costs (Note 7) | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 |
Tax withholding paid on behalf of employees for restricted stock units | 0 | 0 |
Other financing activities | 0 | |
Net transactions with related parties | (110,733) | (686) |
Net cash used in financing activities | (110,733) | (686) |
Effect of Exchange Rate on Cash and Cash Equivalents | (2,216) | 1,260 |
Net (decrease) increase in cash, cash equivalents and restricted cash | 166,028 | 159,082 |
Cash, cash equivalents and restricted cash at the beginning of the period | 297,088 | 319,593 |
Cash, cash equivalents and restricted cash at the end of the period | 463,116 | 478,675 |
Eliminations and Reclassifications | ||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 |
Payments to Acquire Property, Plant, and Equipment | 0 | 0 |
Purchase of debt securities and other investments | 0 | |
Proceeds from maturities of other investments | 0 | |
Other investing activities | 0 | 0 |
Net transactions with related parties, investing | (110,047) | 0 |
Net cash used in investing activities | (110,047) | 0 |
Payment of debt (Note 6) | 0 | |
Proceeds from debt issuances (Note 6) | 0 | |
Repurchase of common stock, including transaction costs (Note 7) | 0 | 0 |
Proceeds from the issuance of common stock | 0 | 0 |
Tax withholding paid on behalf of employees for restricted stock units | 0 | 0 |
Other financing activities | 0 | |
Net transactions with related parties | 110,047 | 0 |
Net cash used in financing activities | 110,047 | 0 |
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at the beginning of the period | 0 | 0 |
Cash, cash equivalents and restricted cash at the end of the period | $ 0 | $ 0 |