Cover Page
Cover Page - shares | 6 Months Ended | |
Oct. 02, 2021 | Oct. 28, 2021 | |
Cover [Abstract] | ||
Document Transition Report | false | |
Document Quarterly Report | true | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Entity Current Reporting Status | Yes | |
Entity Incorporation, State or Country Code | DE | |
Entity Registrant Name | Qorvo, Inc. | |
City Area Code | 336 | |
Entity Central Index Key | 0001604778 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 2, 2021 | |
Entity File Number | 001-36801 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --04-02 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 110,223,227 | |
Entity Address, Address Line One | 7628 Thorndike Road | |
Local Phone Number | 664-1233 | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Trading Symbol | QRVO | |
Security Exchange Name | NASDAQ | |
Entity Tax Identification Number | 46-5288992 | |
Entity Address, City or Town | Greensboro, | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27409-9421 | |
Document Fiscal Year Focus | 2022 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,153,172 | $ 1,397,880 |
Accounts receivable, net of allowance of $464 and $331 as of October 2, 2021 and April 3, 2021, respectively | 662,787 | 457,431 |
Inventories | 597,563 | 507,787 |
Prepaid expenses | 49,298 | 41,572 |
Other receivables | 33,841 | 27,324 |
Other current assets | 44,606 | 51,810 |
Total current assets | 2,541,267 | 2,483,804 |
Property and equipment, net of accumulated depreciation of $1,655,084 and $1,561,613 as of October 2, 2021 and April 3, 2021, respectively | 1,276,810 | 1,266,031 |
Goodwill | 2,734,116 | 2,642,708 |
Intangible assets, net | 615,486 | 611,155 |
Long-term investments | 36,908 | 35,370 |
Other non-current assets | 371,869 | 182,402 |
Total assets | 7,576,456 | 7,221,470 |
Current liabilities: | ||
Accounts payable | 521,569 | 313,868 |
Accrued liabilities | 284,689 | 255,060 |
Current portion of long-term debt | 5,545 | 5,092 |
Other current liabilities | 90,692 | 107,561 |
Total current liabilities | 902,495 | 681,581 |
Long-term debt | 1,740,552 | 1,742,550 |
Other long-term liabilities | 205,655 | 167,914 |
Total liabilities | 2,848,702 | 2,592,045 |
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 shares authorized; 110,461 and 112,557 shares issued and outstanding at October 2, 2021 and April 3, 2021, respectively | 4,158,170 | 4,244,740 |
Accumulated other comprehensive income | 23,431 | 29,649 |
Retained earnings | 546,153 | 355,036 |
Total stockholders’ equity | 4,727,754 | 4,629,425 |
Total liabilities and stockholders’ equity | $ 7,576,456 | $ 7,221,470 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 464 | $ 331 |
Property and equipment, accumulated depreciation | $ 1,655,084 | $ 1,561,613 |
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 | 110,461,000 | 112,557,000 |
Common stock, shares outstanding | 110,461,000 | 112,557,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,255,248 | $ 1,060,292 | $ 2,365,599 | $ 1,847,743 |
Cost of goods sold | 633,695 | 568,742 | 1,197,863 | 1,030,404 |
Gross profit | 621,553 | 491,550 | 1,167,736 | 817,339 |
Operating expenses: | ||||
Research and Development Expense | 158,377 | 156,342 | 310,456 | 286,413 |
Selling, general and administrative | 93,489 | 109,372 | 183,788 | 195,976 |
Other operating expense | 7,327 | 4,192 | 14,030 | 20,594 |
Total operating expenses | 259,193 | 269,906 | 508,274 | 502,983 |
Operating income | 362,360 | 221,644 | 659,462 | 314,356 |
Interest expense | (15,327) | (23,486) | (30,606) | (42,335) |
Other income, net | 4,754 | 1,920 | 21,545 | 25,057 |
Income before income taxes | 351,787 | 200,078 | 650,401 | 297,078 |
Income tax expense | (32,598) | (63,161) | (45,586) | (63,239) |
Net income | $ 319,189 | $ 136,917 | $ 604,815 | $ 233,839 |
Net income per share: | ||||
Basic | $ 2.87 | $ 1.20 | $ 5.43 | $ 2.04 |
Diluted | $ 2.84 | $ 1.18 | $ 5.35 | $ 2.01 |
Weighted average shares of common stock outstanding: | ||||
Basic | 111,035 | 114,328 | 111,476 | 114,388 |
Diluted | 112,411 | 116,177 | 113,088 | 116,395 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 319,189 | $ 136,917 | $ 604,815 | $ 233,839 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustment, including intra-entity foreign currency transactions that are of a long-term investment nature | (9,517) | 18,201 | (6,279) | 24,288 |
Reclassification adjustments, net of tax: | ||||
Amortization of pension actuarial loss | 30 | 21 | 61 | 40 |
Other comprehensive (loss) income | (9,487) | 18,222 | (6,218) | 24,328 |
Total comprehensive income | $ 309,702 | $ 155,139 | $ 598,597 | $ 258,167 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings |
Common Stock, Shares, Outstanding | 114,625 | |||
Common stock and additional paid-in capital | $ 4,290,377 | |||
Stockholders' Equity Attributable to Parent | 4,292,665 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,288 | |||
Retained Earnings (Accumulated Deficit) | 0 | |||
Net income | 233,839 | $ 0 | $ 0 | $ 233,839 |
Other Comprehensive Income (Loss), Net of Tax | 24,328 | $ 0 | 24,328 | 0 |
Exercise Of Stock Options And Vesting Of Restricted Stock Units Net Of Shares Withheld For Employee Taxes Shares | 826 | |||
Exercise Of Stock Options And Vesting Of Restricted Stock Units Net Of Shares Withheld For Employee Taxes | (32,371) | $ (32,371) | 0 | 0 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 229 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 15,758 | $ 15,758 | 0 | 0 |
Cumulative-effect adoption of ASU 2016-13 | $ (38) | $ 0 | 0 | (38) |
Stock Repurchased During Period, Shares | (1,600) | (1,569) | ||
Stock Repurchased During Period, Value | $ (180,048) | $ (58,830) | 0 | (121,218) |
Stock-based compensation | 53,053 | 53,053 | 0 | 0 |
Other Retained Earnings Adjustment | (20) | $ 0 | 0 | (20) |
Payments for Repurchase of Common Stock | 180,048 | |||
Common Stock, Shares, Outstanding | 114,354 | |||
Common stock and additional paid-in capital | 4,293,621 | |||
Stockholders' Equity Attributable to Parent | 4,351,245 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 8,394 | |||
Retained Earnings (Accumulated Deficit) | 49,230 | |||
Net income | 136,917 | $ 0 | 0 | 136,917 |
Other Comprehensive Income (Loss), Net of Tax | 18,222 | $ 0 | 18,222 | 0 |
Exercise Of Stock Options And Vesting Of Restricted Stock Units Net Of Shares Withheld For Employee Taxes Shares | 594 | |||
Exercise Of Stock Options And Vesting Of Restricted Stock Units Net Of Shares Withheld For Employee Taxes | $ 26,306 | $ 26,306 | 0 | 0 |
Stock Repurchased During Period, Shares | (800) | (837) | ||
Stock Repurchased During Period, Value | $ (105,009) | $ (31,425) | 0 | (73,584) |
Stock-based compensation | 32,097 | $ 32,097 | 0 | 0 |
Common Stock, Shares, Outstanding | 114,111 | |||
Common stock and additional paid-in capital | 4,267,987 | |||
Stockholders' Equity Attributable to Parent | 4,407,166 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 26,616 | |||
Retained Earnings (Accumulated Deficit) | $ 112,563 | |||
Common Stock, Shares, Outstanding | 112,557 | |||
Common stock and additional paid-in capital | $ 4,244,740 | |||
Stockholders' Equity Attributable to Parent | 4,629,425 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 29,649 | |||
Retained Earnings (Accumulated Deficit) | 355,036 | |||
Net income | 604,815 | $ 0 | 0 | 604,815 |
Other Comprehensive Income (Loss), Net of Tax | (6,218) | $ 0 | (6,218) | 0 |
Exercise Of Stock Options And Vesting Of Restricted Stock Units Net Of Shares Withheld For Employee Taxes Shares | 642 | |||
Exercise Of Stock Options And Vesting Of Restricted Stock Units Net Of Shares Withheld For Employee Taxes | (49,452) | $ (49,452) | 0 | 0 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 165 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 17,794 | $ 17,794 | 0 | 0 |
Stock Repurchased During Period, Shares | (2,900) | (2,903) | ||
Stock Repurchased During Period, Value | $ (523,373) | $ (109,675) | 0 | (413,698) |
Stock-based compensation | 54,763 | $ 54,763 | 0 | 0 |
Payments for Repurchase of Common Stock | 523,373 | |||
Common Stock, Shares, Outstanding | 111,210 | |||
Common stock and additional paid-in capital | 4,210,914 | |||
Stockholders' Equity Attributable to Parent | 4,648,394 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 32,918 | |||
Retained Earnings (Accumulated Deficit) | 404,562 | |||
Net income | 319,189 | $ 0 | 0 | 319,189 |
Other Comprehensive Income (Loss), Net of Tax | (9,487) | $ 0 | (9,487) | 0 |
Exercise Of Stock Options And Vesting Of Restricted Stock Units Net Of Shares Withheld For Employee Taxes Shares | 459 | |||
Exercise Of Stock Options And Vesting Of Restricted Stock Units Net Of Shares Withheld For Employee Taxes | $ (36,104) | $ (36,104) | 0 | 0 |
Stock Repurchased During Period, Shares | (1,200) | (1,208) | ||
Stock Repurchased During Period, Value | $ (223,356) | $ (45,758) | 0 | (177,598) |
Stock-based compensation | $ 29,118 | $ 29,118 | $ 0 | $ 0 |
Common Stock, Shares, Outstanding | 110,461 | |||
Common stock and additional paid-in capital | $ 4,158,170 | |||
Stockholders' Equity Attributable to Parent | 4,727,754 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 23,431 | |||
Retained Earnings (Accumulated Deficit) | $ 546,153 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 604,815 | $ 233,839 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 105,205 | 100,799 |
Intangible assets amortization | 74,022 | 144,470 |
Deferred income taxes | (2,230) | 36,468 |
Stock-based compensation expense | 53,929 | 51,907 |
Other, net | (6,867) | (7,496) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (203,321) | (118,008) |
Inventories | (87,137) | 41,844 |
Prepaid expenses and other assets | (157,063) | (2,366) |
Accounts payable and accrued liabilities | 242,632 | 16,230 |
Income taxes payable and receivable | (16,455) | 9,671 |
Other liabilities | (21,132) | (12,109) |
Net cash provided by operating activities | 586,398 | 495,249 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (112,560) | (73,386) |
Purchase of businesses, net of cash acquired | 166,818 | 47,520 |
Other investing activities | 11,781 | 9,581 |
Net cash used in investing activities | (267,597) | (111,325) |
Cash flows from financing activities: | ||
Payment of debt | (2,500) | (100,000) |
Proceeds from borrowings and debt issuances | 0 | 1,206,750 |
Repurchase of common stock, including transaction costs | (523,373) | (180,048) |
Proceeds from the issuance of common stock | 20,435 | 21,792 |
Tax withholding paid on behalf of employees for restricted stock units | (51,334) | (36,354) |
Other financing activities | (5,990) | (11,705) |
Net cash (used in) provided by financing activities | (562,762) | 900,435 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,087) | 936 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (245,048) | 1,285,295 |
Cash, cash equivalents and restricted cash at the beginning of the period | 1,398,309 | 715,612 |
Cash, cash equivalents and restricted cash at the end of the period | 1,153,261 | 2,000,907 |
Cash and cash equivalents | 1,153,172 | 2,000,257 |
Restricted cash included in "Other current assets" and "Other non-current assets" | 89 | 650 |
Capital expenditures included in liabilities | $ 54,507 | $ 22,124 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Oct. 02, 2021 | |
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 April 3, 2021. 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. Certain items in the fiscal 2021 financial statements have been reclassified to conform with the fiscal 2022 presentation. The Company uses a 52- or 53-week fiscal year ending on the Saturday closest to March 31 of each year. Each fiscal year, the first quarter ends on the Saturday closest to June 30, the second quarter ends on the Saturday closest to September 30 and the third quarter ends on the Saturday closest to December 31. Fiscal 2022 is a 52-week year, and fiscal 2021 was a 53-week year. The second quarter of fiscal 2022 included 13 weeks, compared to 14 weeks for the second quarter of fiscal 2021, and the first six months of fiscal 2022 included 26 weeks, compared to 27 weeks for the first six months of fiscal 2021. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Oct. 02, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update 2019-12, " Simplifying the Accounting for Income Taxes ," which eliminates certain exceptions within Accounting Standards Codification Topic 740, "Income Taxes " and clarifies and simplifies other aspects of the current accounting guidance. The Company adopted this standard in the first quarter of fiscal 2022, and it did not have a material impact on the Company's consolidated financial statements. |
Inventories
Inventories | 6 Months Ended |
Oct. 02, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The components of inventories, net of reserves, are as follows (in thousands): October 2, 2021 April 3, 2021 Raw materials $ 179,390 $ 134,959 Work in process 319,525 283,067 Finished goods 98,648 89,761 Total inventories $ 597,563 $ 507,787 |
Business Acquisition
Business Acquisition | 6 Months Ended |
Oct. 02, 2021 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | BUSINESS ACQUISITIONS NextInput, Inc. On April 5, 2021, the Company acquired all the outstanding equity interests of NextInput, Inc. ("NextInput"), a leader in microelectromechanical system ("MEMS")-based sensing solutions, for a total cash purchase price of $173.4 million. The acquisition expands the Company's offerings of MEMS-based products for mobile applications and provides sensing solutions for a broad range of applications in other markets. The purchase price was preliminarily allocated based on the estimated fair values of the assets acquired and liabilities assumed as follows (in thousands): Intangible assets $ 81,000 Goodwill 94,285 Net tangible assets (1) 8,216 Deferred tax liability, net (10,132) Total purchase price $ 173,369 (1) Includes cash acquired of $5.8 million. The more significant intangible assets acquired included developed technology of $73.0 million and customer relationships of $7.5 million. The fair value of the developed technology acquired was determined based on an income approach using the "excess earnings method" which estimated the value of the intangible asset by discounting the future projected earnings of the asset to present value as of the valuation date. The acquired developed technology asset is being amortized on a straight-line basis over its estimated useful life of seven The fair value of the customer relationships acquired was determined based on an income approach using the "with and without method" in which the value of the intangible asset is determined by the difference in discounted cash flows of the profitability of the Company "with" the asset and the profitability of the Company "without" the asset. These customer relationships are being amortized on a straight-line basis over their estimated useful life of one The Company will continue to evaluate certain assets, liabilities and tax estimates over the measurement period (up to one year from the acquisition date). The goodwill resulting from the acquisition of NextInput is attributed to synergies and other benefits that are expected to be generated from this transaction and is not deductible for income tax purposes. The operating results of NextInput were not material and have been included in the Company's condensed consolidated financial statements as of the acquisition date. During the three and six months end ed October 2, 2021, the Company recorded acquisition and integration related costs associated with the acquisition of NextInput totaling $0.5 million and $1.7 million in "Other operating expense" in the Condensed Consolidated Statements of Income. 7Hugs Labs S.A.S. On October 1, 2020, the Company acquired all the outstanding equity interests of 7Hugs Labs S.A.S. ("7Hugs"), a private developer of Ultra Wideband ("UWB") software and solutions, for a total cash purchase price of $48.7 million. The acquisition supports the ongoing development and adoption of the Company's UWB products and solutions. During the six months ended October 2, 2021, the Company recognized a decrease to goodwill of approximately $0.1 million in connection with finalizing the purchase price allocation. The measurement period ended one year from the acquisition date. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the six months ended October 2, 2021, are as follows (in thousands): Mobile Products Infrastructure and Defense Products Total Balance as of April 3, 2021 (1) $ 2,034,383 $ 608,325 $ 2,642,708 Goodwill resulting from NextInput acquisition (Note 4) 94,285 — 94,285 7Hugs measurement period adjustments (97) — (97) Effect of changes in foreign currency exchange rates (2,780) — (2,780) Balance as of October 2, 2021 (1) $ 2,125,791 $ 608,325 $ 2,734,116 (1) The Company’s goodwill balance is presented net of accumulated impairment losses and write-offs of $621.6 million. The following summarizes information regarding the gross carrying amounts and accumulated amortization of intangible assets (in thousands): October 2, 2021 April 3, 2021 Gross Accumulated Gross Accumulated Developed technology $ 913,798 $ 361,564 $ 1,295,113 $ 750,044 Customer relationships 86,033 33,652 459,052 403,407 Technology licenses 2,648 2,057 2,368 2,076 Backlog — — 1,600 1,600 Trade names 1,573 1,010 1,090 636 In-process research and development 9,717 N/A 9,695 N/A Total (1) $ 1,013,769 $ 398,283 $ 1,768,918 $ 1,157,763 (1) Amounts include the impact of foreign currency translation. At the beginning of each fiscal year, the Company removes the gross asset and accumulated amortization amounts of intangible assets that have reached the end of their useful lives and have been fully amortized. Useful lives are estimated based on the expected economic benefit to be derived from the intangible assets. |
Investments and Fair Value of F
Investments and Fair Value of Financial Instruments | 6 Months Ended |
Oct. 02, 2021 | |
Investments and Fair Value Measurements [Abstract] | |
INVESTMENTS AND FAIR VALUE MEASUREMENTS | INVESTMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS Equity Method Investments The Company invests in limited partnerships and accounts for these investments using the equity method. The carrying amounts of these investments as of October 2, 2021, and April 3, 2021, were $32.4 million and $29.8 million, respectively, and are classified as “Long-term investments” in the Condensed Consolidated Balance Sheets. During the three and six months ended October 2, 2021, the Company recorded income of $1.5 million and $16.0 million, respectively, based on its share of the limited partnerships' earnings. During the three and six months ended October 3, 2020, the Company recorded $0.1 million of expense and $15.6 million of income, respectively, based on its share of the limited partnerships' earnings. These amounts are included in “Other income, net” in the Condensed Consolidated Statements of Income. During the three and six months ended October 2, 2021, the Company received cash distributions of $9.6 million and $13.5 million, respectively, which were recognized as a reduction to the carrying value of the investment and included in the cash flows from investing activities in the Condensed Consolidated Statement of Cash Flows. There were no cash distributions received during the three and six months ended October 3, 2020. Fair Value of Financial Instruments The fair value of the financial assets and liabilities measured on a recurring basis was determined using the following levels of inputs (in thousands): Total Quoted Prices In Significant Other Significant October 2, 2021 Marketable equity securities $ 1,514 $ 1,514 $ — $ — Invested funds in deferred compensation plan (1) 37,114 37,114 — — April 3, 2021 Marketable equity securities $ 3,802 $ 3,802 $ — $ — Invested funds in deferred compensation plan (1) 32,824 32,824 — — Contingent earn-out liability (2) (10,000) — — (10,000) (1) Invested funds under the Company's non-qualified deferred compensation plan are held in a rabbi trust and consist of mutual funds. The fair value of the mutual funds is calculated using the net asset value per share determined by quoted active market prices of the underlying investments. (2) The Company recorded a contingent earn-out liability in conjunction with the acquisition of Custom MMIC Design Services, Inc. which was paid during the first quarter of fiscal 2022. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | LONG-TERM DEBT Long-term debt is as follows (in thousands): October 2, 2021 April 3, 2021 Term loan $ 195,000 $ 197,500 4.375% senior notes due 2029 850,000 850,000 3.375% senior notes due 2031 700,000 700,000 Finance leases 2,493 1,617 Unamortized premium and issuance costs, net (1,396) (1,475) Less current portion of long-term debt (5,545) (5,092) Total long-term debt $ 1,740,552 $ 1,742,550 Credit Agreement On September 29, 2020, the Company and certain of its U.S. subsidiaries (the “Guarantors”) entered into a five-year unsecured senior credit facility pursuant to a credit agreement (the “2020 Credit Agreement”) with Bank of America, N.A., acting as administrative agent, and a syndicate of lenders. The 2020 Credit Agreement amended and restated the previous credit agreement dated as of December 5, 2017 (the “2017 Credit Agreement”). The 2020 Credit Agreement includes a senior term loan (the “2020 Term Loan”) of up to $200.0 million and a senior revolving line of credit (the “Revolving Facility”) of up to $300.0 million. During the three and six months ended October 2, 2021, there were no borrowings under the Revolving Facility. On the closing date of the 2020 Credit Agreement, the Company repaid the remaining principal balance of $97.5 million on the term loan under the 2017 Credit Agreement and concurrently drew $200.0 million under the 2020 Term Loan. During the three and six months ended October 2, 2021, the Company made principal payments of $1.3 million and $2.5 million, respectively. Interest paid during the three and six months ended October 2, 2021, was $0.6 million and $1.2 million, respectively. The 2020 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 October 2, 2021, the Company was in compliance with these covenants. Senior Notes due 2029 On September 30, 2019, the Company issued $350.0 million aggregate principal amount of its 4.375% senior notes due 2029 (the “Initial 2029 Notes”). On December 20, 2019, and June 11, 2020, the Company issued an additional $200.0 million and $300.0 million, respectively, aggregate principal amount of such note s (together, the “Additional 2029 Notes” and together with the Initial 2029 Notes, the “2029 Notes”). The 2029 Notes will mature on October 15, 2029, unless earlier redeemed in accordance with their terms. The 2029 Notes are senior unsecured obligations of the Company and are guaranteed, jointly and severally, by the Guarantors. The Initial 2029 Notes were issued pursuant to an indenture, dated as of September 30, 2019, by and among the Company, the Guarantors and MUFG Union Bank, N.A., as trustee, and the Additional 2029 Notes were issued pursuant to supplemental indentures, dated as of December 20, 2019, and June 11, 2020 (such indenture and supplemental indentures, collectively, the “2019 Indenture”). The 2019 Indenture contains customary events of default, including payment default, failure to provide certain notices thereunder and certain provisions related to bankruptcy events and also contains customary negative covenants. Interest is payable on the 2029 Notes on April 15 and October 15 of each year. The Company paid no interest on the 2029 Notes during the three months ended October 2, 2021, and paid interest of $18.6 million on the 2029 Notes during the six months ended October 2, 2021. The Company paid no interest on the 2029 Notes during the three months ended October 3, 2020, and paid interest of $13.0 million on the 2029 Notes during the six months ended October 3, 2020. Senior Notes due 2031 On September 29, 2020, the Company issued $700.0 million aggregate principal amount of its 3.375% senior notes due 2031 (the “2031 Notes”). The 2031 Notes will mature on April 1, 2031, unless earlier redeemed in accordance with their terms. The 2031 Notes are senior unsecured obligations of the Company and are guaranteed, jointly and severally, by the Guarantors. The 2031 Notes were issued pursuant to an indenture, dated as of September 29, 2020, by and among the Company, the Guarantors and MUFG Union Bank, N.A., as trustee (the “2020 Indenture”). The 2020 Indenture contains the same customary events of default and negative covenants as the 2019 Indenture. Interest is payable on the 2031 Notes on April 1 and October 1 of each year. During the three and six months ended October 2, 2021, the company paid interest of $11.8 million on the 2031 Notes. The Company paid no interest on the 2031 Notes during the three and six months ended October 3, 2020. Fair Value of Debt The Company's debt is carried at amortized cost and is measured at fair value quarterly for disclosure purposes. The estimated fair value of the 2029 Notes and the 2031 Notes as of October 2, 2021, was $924.3 million and $739.6 million, respectively (compared to the outstanding principal amount of $850.0 million and $700.0 million, respectively). The estimated fair value of the 2029 Notes and the 2031 Notes as of April 3, 2021, was $905.3 million and $689.5 million, respectively (compared to the outstanding principal amount of $850.0 million and $700.0 million, respectively). The Company considers its debt to be Level 2 in the fair value hierarchy. Fair values are estimated based on quoted market prices for identical or similar instruments. The 2029 Notes and the 2031 Notes currently trade over-the-counter, and the fair values were estimated based upon the value of the last trade at the end of the period. The 2020 Term Loan carries a variable interest rate set at current market rates, and as such, the fair value of the 2020 Term Loan approximated carrying value as of October 2, 2021 and April 3, 2021. Interest Expense During the three and six months ended October 2, 2021, the Company recognized total interest expense of $16.2 million and $32.5 million, respectively, primarily related to the 2029 Notes and the 2031 Notes, partially offset by interest capitalized to property and equipment of $0.9 million and $1.9 million, respectively. During the three and six months ended October 3, 2020, the Company recognized total interest expense of $24.6 million and $44.6 million, respectively, primarily related to its 5.50% |
Stock Repurchases
Stock Repurchases | 6 Months Ended |
Oct. 02, 2021 | |
Equity [Abstract] | |
STOCK REPURCHASES | STOCK REPURCHASES On May 5, 2021, the Company announced that its Board of Directors authorized a new share repurchase program to repurchase up to $2.0 billion of the Company's outstanding common stock, which included approximately $236.9 million authorized under the prior program terminated concurrent with the new authorization. Under this current 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 and six months ended October 2, 2021, the Company repurchased approximately 1.2 million and 2.9 million shares, respectively, of its common stock for approximately $223.4 million and $523.4 million, respectively (including transaction costs). As of October 2, 2021, approximately $1,490.6 million remains available for repurchases under the current share repurchase program. During the three and six months ended October 3, 2020, the Company repurchased approximately 0.8 million and 1.6 million shares, respectively, of its common stock for approximately $105.0 million and $180.0 million, respectively (including transaction costs) under the prior repurchase program. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Oct. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENT LIABILITIES Purchase Obligations As of October 2, 2021, the Company's purchase obligations totaled approximately $2.4 billion, of which approximately $600.0 million is expected to be paid during the last six months of fiscal 2022 and the remaining $1.8 billion is expected to be paid ratably over fiscal years 2023 through 2026. Noncancelable purchase obligations represent payments due related to the purchase of materials and manufacturing services, a majority of which are not recorded as liabilities in the Condensed Consolidated Balance Sheet because the Company has not received the related goods or services as of October 2, 2021. In an effort to support growth amidst ongoing industry-wide supply constraints, the Company entered into a long-term capacity reservation agreement with a foundry supplier during the second quarter ended October 2, 2021. The Company agreed to pay certain fees and deposits which are recorded in "Prepaid expenses" and "Other non-current assets" in the Condensed Consolidated Balance Sheet as of October 2, 2021. Under the agreement the Company is required to purchase, and the foundry supplier is required to supply, a certain number of wafers (at predetermined sales prices) for calendar years 2022 through 2025. The Company currently estimates that it is obligated to purchase a total of approximately $1.8 billion of wafers (included in the total purchase obligations above) under the capacity reservation agreement. The Company is involved in various legal proceedings and claims that have arisen in the ordinary course of business that have not been fully adjudicated. The Company accrues a liability for legal contingencies when it believes that it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company regularly evaluates developments in its legal matters that could affect the amount of the previously accrued liability and records adjustments as appropriate. Although it is not possible to predict with certainty the outcome of the unresolved legal matters, it is the opinion of management that these matters will not, individually or in the aggregate, have a material adverse effect on the Company’s consolidated financial position or results of operations. The aggregate range of reasonably possible losses in excess of accrued liabilities, if any, associated with these unresolved legal matters is not material. |
Revenue
Revenue | 6 Months Ended |
Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The following table presents the Company's revenue disaggregated by geography, based on the location of the customers' headquarters (in thousands): Three Months Ended Six Months Ended October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 China $ 418,263 $ 391,011 $ 954,200 $ 778,233 United States 560,992 459,416 880,173 707,661 Other Asia 119,488 102,548 228,766 160,645 Taiwan 92,067 53,350 177,281 106,679 Europe 64,438 53,967 125,179 94,525 Total revenue $ 1,255,248 $ 1,060,292 $ 2,365,599 $ 1,847,743 The Company also disaggregates revenue by operating segments (see Note 11). |
Operating Segment Information
Operating Segment Information | 6 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENT INFORMATION | OPERATING SEGMENT INFORMATION The Company's operating and reportable segments 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 operating income. MP is a global supplier of cellular, UWB, Wi-Fi and other solutions for a variety of applications, including smartphones, wearables, laptops, tablets and Internet of Things ("IoT"). IDP is a global supplier of RF, system-on-a-chip and power management solutions for applications in wireless infrastructure, defense, Wi-Fi, smart home, automotive and IoT. The "All other" category includes operating expenses such as stock-based compensation, amortization of intangible assets, acquisition and integration related costs, (loss) gain on assets, start-up costs, restructuring related charges 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 operating and reportable segments and a reconciliation of the “All other” category (in thousands): Three Months Ended Six Months Ended October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 Revenue: MP $ 995,697 $ 754,294 $ 1,831,835 $ 1,222,698 IDP 259,551 305,998 533,764 625,045 Total revenue $ 1,255,248 $ 1,060,292 $ 2,365,599 $ 1,847,743 Operating income (loss): MP $ 385,589 $ 262,858 $ 685,279 $ 372,841 IDP 49,829 66,495 117,168 160,250 All other (73,058) (107,709) (142,985) (218,735) Operating income 362,360 221,644 659,462 314,356 Interest expense (15,327) (23,486) (30,606) (42,335) Other income, net 4,754 1,920 21,545 25,057 Income before income taxes $ 351,787 $ 200,078 $ 650,401 $ 297,078 Three Months Ended Six Months Ended October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 Reconciliation of “All other” category: Stock-based compensation expense $ (28,691) $ (30,048) $ (53,929) $ (51,907) Amortization of intangible assets (36,577) (72,147) (73,800) (144,091) Acquisition and integration related costs (6,040) (7,259) (10,033) (19,922) Other (including (loss) gain on assets, start-up costs, restructuring related charges and other miscellaneous corporate overhead) (1,750) 1,745 (5,223) (2,815) Loss from operations for “All other” $ (73,058) $ (107,709) $ (142,985) $ (218,735) |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s income tax expense was $32.6 million and $45.6 million for the three and six months ended October 2, 2021, respectively, and $63.2 million for the three and six months ended October 3, 2020. The Company’s effective tax rate was 9.3% and 7.0% for the three and six months ended October 2, 2021, respectively, and 31.6% and 21.3% for the three and six months ended October 3, 2020, respectively. The Company's effective tax rate for the three and six months ended October 2, 2021, differed from the statutory rate primarily due to tax rate differences in foreign jurisdictions, global intangible low tax income (“GILTI”), domestic tax credits generated and discrete tax items recorded during the period. A discrete benefit of $10.3 million and $30.5 million was recorded during the three and six months ended October 2, 2021, respectively. The discrete tax benefits for the three and six months ended October 2, 2021 primarily related to stock-based compensation deductions and net tax benefits associated with other non-recurring restructuring activities, including a discrete charge associated with the intercompany restructuring of the NextInput intellectual property. The discrete tax benefit for the six months ended October 2, 2021 was also due in part to the recognition of previously unrecognized tax benefits due to the expiration of the statute of limitations. The Company's effective tax rate for the three and six months ended October 3, 2020, differed from the statutory rate primarily due to tax rate differences in foreign jurisdictions, GILTI, domestic tax credits generated and discrete tax items recorded during the period. A discrete charge of $45.2 million and $35.2 million was recorded during the three and six months ended October 3, 2020, respectively. The discrete charges for the three and six months ended October 3, 2020 primarily related to the |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) 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 October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 Numerator: Numerator for basic and diluted net income per share $ 319,189 $ 136,917 $ 604,815 $ 233,839 Denominator: Denominator for basic net income per share — weighted average shares 111,035 114,328 111,476 114,388 Effect of dilutive securities: Stock-based awards 1,376 1,849 1,612 2,007 Denominator for diluted net income per share — adjusted weighted average shares and assumed conversions 112,411 116,177 113,088 116,395 Basic net income per share $ 2.87 $ 1.20 $ 5.43 $ 2.04 Diluted net income per share $ 2.84 $ 1.18 $ 5.35 $ 2.01 An immaterial number of the Company's outstanding stock-based awards was excluded from the computation of diluted net income per share for the three and six months ended October 2, 2021 and October 3, 2020, because the effect of their inclusion would have been anti-dilutive. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Oct. 02, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENT United Silicon Carbide, Inc. Acquisition On October 19, 2021, the Company acquired all the outstanding equity interests of United Silicon Carbide, Inc., a leading manufacturer of silicon carbide (SiC) power semiconductors, for cash consideration of approximately $227.1 million and contingent cash consideration of up to $31.3 million based on the achievement of certain revenue and gross margin targets subsequent to the close date and through December 31, 2022. The acquisition expands the Company's offerings with SiC power products that deliver leading performance for applications in electric vehicles, battery charging, IT infrastructure, renewables and circuit protection. |
Long-Term Debt Fair Value of De
Long-Term Debt Fair Value of Debt (Policies) | 6 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
Fair value of debt [Policy Text Block] | The Company's debt is carried at amortized cost and is measured at fair value quarterly for disclosure purposes. The estimated fair value of the 2029 Notes and the 2031 Notes as of October 2, 2021, was $924.3 million and $739.6 million, respectively (compared to the outstanding principal amount of $850.0 million and $700.0 million, respectively). The estimated fair value of the 2029 Notes and the 2031 Notes as of April 3, 2021, was $905.3 million and $689.5 million, respectively (compared to the outstanding principal amount of $850.0 million and $700.0 million, respectively). The Company considers its debt to be Level 2 in the fair value hierarchy. Fair values are estimated based on quoted market prices for identical or similar instruments. The 2029 Notes and the 2031 Notes currently trade over-the-counter, and the fair values were estimated based upon the value of the last trade at the end of the period.The 2020 Term Loan carries a variable interest rate set at current market rates, and as such, the fair value of the 2020 Term Loan approximated carrying value as of October 2, 2021 and April 3, 2021. |
Operating Segment Information S
Operating Segment Information Segment Policy (Policies) | 6 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | The Company's operating and reportable segments 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 operating income. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Components of inventories | The components of inventories, net of reserves, are as follows (in thousands): October 2, 2021 April 3, 2021 Raw materials $ 179,390 $ 134,959 Work in process 319,525 283,067 Finished goods 98,648 89,761 Total inventories $ 597,563 $ 507,787 |
Business Combinations and Asset
Business Combinations and Asset Acquisitions (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
NextInput Purchase Price Allocation | The purchase price was preliminarily allocated based on the estimated fair values of the assets acquired and liabilities assumed as follows (in thousands): Intangible assets $ 81,000 Goodwill 94,285 Net tangible assets (1) 8,216 Deferred tax liability, net (10,132) Total purchase price $ 173,369 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the six months ended October 2, 2021, are as follows (in thousands): Mobile Products Infrastructure and Defense Products Total Balance as of April 3, 2021 (1) $ 2,034,383 $ 608,325 $ 2,642,708 Goodwill resulting from NextInput acquisition (Note 4) 94,285 — 94,285 7Hugs measurement period adjustments (97) — (97) Effect of changes in foreign currency exchange rates (2,780) — (2,780) Balance as of October 2, 2021 (1) $ 2,125,791 $ 608,325 $ 2,734,116 (1) The Company’s goodwill balance is presented net of accumulated impairment losses and write-offs of $621.6 million. |
Schedule of finite-lived and indefinite-lived intangible assets [Table Text Block] | The following summarizes information regarding the gross carrying amounts and accumulated amortization of intangible assets (in thousands): October 2, 2021 April 3, 2021 Gross Accumulated Gross Accumulated Developed technology $ 913,798 $ 361,564 $ 1,295,113 $ 750,044 Customer relationships 86,033 33,652 459,052 403,407 Technology licenses 2,648 2,057 2,368 2,076 Backlog — — 1,600 1,600 Trade names 1,573 1,010 1,090 636 In-process research and development 9,717 N/A 9,695 N/A Total (1) $ 1,013,769 $ 398,283 $ 1,768,918 $ 1,157,763 |
Investments and Fair Value of_2
Investments and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Investments and Fair Value Measurements [Abstract] | |
Fair value of the financial assets measured at fair value on a recurring basis | The fair value of the financial assets and liabilities measured on a recurring basis was determined using the following levels of inputs (in thousands): Total Quoted Prices In Significant Other Significant October 2, 2021 Marketable equity securities $ 1,514 $ 1,514 $ — $ — Invested funds in deferred compensation plan (1) 37,114 37,114 — — April 3, 2021 Marketable equity securities $ 3,802 $ 3,802 $ — $ — Invested funds in deferred compensation plan (1) 32,824 32,824 — — Contingent earn-out liability (2) (10,000) — — (10,000) (1) Invested funds under the Company's non-qualified deferred compensation plan are held in a rabbi trust and consist of mutual funds. The fair value of the mutual funds is calculated using the net asset value per share determined by quoted active market prices of the underlying investments. (2) The Company recorded a contingent earn-out liability in conjunction with the acquisition of Custom MMIC Design Services, Inc. which was paid during the first quarter of fiscal 2022. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt is as follows (in thousands): October 2, 2021 April 3, 2021 Term loan $ 195,000 $ 197,500 4.375% senior notes due 2029 850,000 850,000 3.375% senior notes due 2031 700,000 700,000 Finance leases 2,493 1,617 Unamortized premium and issuance costs, net (1,396) (1,475) Less current portion of long-term debt (5,545) (5,092) Total long-term debt $ 1,740,552 $ 1,742,550 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company's revenue disaggregated by geography, based on the location of the customers' headquarters (in thousands): Three Months Ended Six Months Ended October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 China $ 418,263 $ 391,011 $ 954,200 $ 778,233 United States 560,992 459,416 880,173 707,661 Other Asia 119,488 102,548 228,766 160,645 Taiwan 92,067 53,350 177,281 106,679 Europe 64,438 53,967 125,179 94,525 Total revenue $ 1,255,248 $ 1,060,292 $ 2,365,599 $ 1,847,743 |
Operating Segment Information (
Operating Segment Information (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
Summary of details of reportable segments | The following tables present details of the Company’s operating and reportable segments and a reconciliation of the “All other” category (in thousands): Three Months Ended Six Months Ended October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 Revenue: MP $ 995,697 $ 754,294 $ 1,831,835 $ 1,222,698 IDP 259,551 305,998 533,764 625,045 Total revenue $ 1,255,248 $ 1,060,292 $ 2,365,599 $ 1,847,743 Operating income (loss): MP $ 385,589 $ 262,858 $ 685,279 $ 372,841 IDP 49,829 66,495 117,168 160,250 All other (73,058) (107,709) (142,985) (218,735) Operating income 362,360 221,644 659,462 314,356 Interest expense (15,327) (23,486) (30,606) (42,335) Other income, net 4,754 1,920 21,545 25,057 Income before income taxes $ 351,787 $ 200,078 $ 650,401 $ 297,078 |
Summary of reconciliation of "All other" category | Three Months Ended Six Months Ended October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 Reconciliation of “All other” category: Stock-based compensation expense $ (28,691) $ (30,048) $ (53,929) $ (51,907) Amortization of intangible assets (36,577) (72,147) (73,800) (144,091) Acquisition and integration related costs (6,040) (7,259) (10,033) (19,922) Other (including (loss) gain on assets, start-up costs, restructuring related charges and other miscellaneous corporate overhead) (1,750) 1,745 (5,223) (2,815) Loss from operations for “All other” $ (73,058) $ (107,709) $ (142,985) $ (218,735) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
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 October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020 Numerator: Numerator for basic and diluted net income per share $ 319,189 $ 136,917 $ 604,815 $ 233,839 Denominator: Denominator for basic net income per share — weighted average shares 111,035 114,328 111,476 114,388 Effect of dilutive securities: Stock-based awards 1,376 1,849 1,612 2,007 Denominator for diluted net income per share — adjusted weighted average shares and assumed conversions 112,411 116,177 113,088 116,395 Basic net income per share $ 2.87 $ 1.20 $ 5.43 $ 2.04 Diluted net income per share $ 2.84 $ 1.18 $ 5.35 $ 2.01 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Components of inventories | ||
Raw materials | $ 179,390 | $ 134,959 |
Work in process | 319,525 | 283,067 |
Finished goods | 98,648 | 89,761 |
Total inventories | $ 597,563 | $ 507,787 |
Business Acquisition Narrative
Business Acquisition Narrative (Details) - USD ($) $ in Thousands | Apr. 05, 2021 | Oct. 01, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | Apr. 03, 2021 |
Business Acquisition [Line Items] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 166,818 | $ 47,520 | |||||
Intangible assets amortization | $ 36,600 | $ 72,400 | 74,022 | $ 144,470 | |||
Goodwill | 2,734,116 | 2,734,116 | $ 2,642,708 | ||||
7Hugs [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | $ 48,700 | ||||||
Goodwill, Purchase Accounting Adjustments | (97) | ||||||
NextInput | |||||||
Business Acquisition [Line Items] | |||||||
Payments to Acquire Businesses, Gross | $ 173,369 | ||||||
Business Combination, Consideration Transferred | 173,400 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 5,800 | ||||||
Goodwill | 94,285 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 81,000 | ||||||
Business Combination, Net Tangible Assets Acquired | 8,216 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | (10,132) | ||||||
NextInput | Other operating expense | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition and integration related costs | 500 | 1,700 | |||||
Developed Technology | NextInput | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 73,000 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||||
Customer Relationships | NextInput | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 7,500 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | ||||||
Infrastructure and Defense Products | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 608,325 | 608,325 | 608,325 | ||||
Infrastructure and Defense Products | 7Hugs [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill, Purchase Accounting Adjustments | 0 | ||||||
Mobile Products | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 2,125,791 | 2,125,791 | $ 2,034,383 | ||||
Mobile Products | 7Hugs [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill, Purchase Accounting Adjustments | $ (97) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | Apr. 05, 2021 | Apr. 03, 2021 | |
Goodwill and Intangible Assets [Line Items] | ||||||
Intangible assets amortization | $ 36,600 | $ 72,400 | $ 74,022 | $ 144,470 | ||
Goodwill | 2,734,116 | 2,734,116 | $ 2,642,708 | |||
Goodwill, Accumulated impairment losses and write-offs | 621,600 | 621,600 | ||||
Accumulated Amortization | 398,283 | 398,283 | 1,157,763 | |||
Goodwill, Foreign Currency Translation Gain (Loss) | (2,780) | |||||
Gross Carrying Amount | 1,013,769 | 1,013,769 | 1,768,918 | |||
Technology licenses | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 2,648 | 2,648 | 2,368 | |||
Accumulated Amortization | 2,057 | 2,057 | 2,076 | |||
Order or Production Backlog [Member] | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 0 | 0 | 1,600 | |||
Accumulated Amortization | 0 | 0 | 1,600 | |||
Trade Names | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 1,573 | 1,573 | 1,090 | |||
Accumulated Amortization | 1,010 | 1,010 | 636 | |||
Developed Technology | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 913,798 | 913,798 | 1,295,113 | |||
Accumulated Amortization | 361,564 | 361,564 | 750,044 | |||
Customer Relationships | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 86,033 | 86,033 | 459,052 | |||
Accumulated Amortization | 33,652 | 33,652 | 403,407 | |||
In-process research and development | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
IPRD | 9,717 | 9,717 | 9,695 | |||
Mobile Products | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill | 2,125,791 | 2,125,791 | 2,034,383 | |||
Goodwill, Foreign Currency Translation Gain (Loss) | (2,780) | |||||
Infrastructure and Defense Products | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill | $ 608,325 | 608,325 | $ 608,325 | |||
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | |||||
7Hugs [Member] | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill, Purchase Accounting Adjustments | (97) | |||||
7Hugs [Member] | Mobile Products | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill, Purchase Accounting Adjustments | (97) | |||||
7Hugs [Member] | Infrastructure and Defense Products | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill, Purchase Accounting Adjustments | 0 | |||||
NextInput | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill | $ 94,285 | |||||
Goodwill, Acquired During Period | 94,285 | |||||
NextInput | Mobile Products | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill, Acquired During Period | 94,285 | |||||
NextInput | Infrastructure and Defense Products | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill, Acquired During Period | $ 0 |
Investments and Fair Value of_3
Investments and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | Apr. 03, 2021 | |
Investments and Fair Value of Financial Instruments | |||||
Document Period End Date | Oct. 2, 2021 | ||||
Equity Method Investments | $ 32,400 | $ 32,400 | $ 29,800 | ||
Equity Securities, FV-NI, Unrealized Gain (Loss) | 1,500 | $ 100 | 16,000 | $ 15,600 | |
Proceeds from Limited Partnership Investments | 9,600 | $ 0 | 13,500 | $ 0 | |
Fair Value, Recurring [Member] | |||||
Investments and Fair Value of Financial Instruments | |||||
Business Combination, Contingent Consideration, Liability, Noncurrent | (10,000) | ||||
Deferred Compensation Plan Assets | 37,114 | 37,114 | 32,824 | ||
Fair Value, Recurring [Member] | Equity Securities | |||||
Investments and Fair Value of Financial Instruments | |||||
Marketable Securities | 1,514 | 1,514 | 3,802 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Fair Value, Recurring [Member] | |||||
Investments and Fair Value of Financial Instruments | |||||
Business Combination, Contingent Consideration, Liability, Noncurrent | 0 | ||||
Deferred Compensation Plan Assets | 37,114 | 37,114 | 32,824 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Fair Value, Recurring [Member] | Equity Securities | |||||
Investments and Fair Value of Financial Instruments | |||||
Marketable Securities | 1,514 | 1,514 | 3,802 | ||
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring [Member] | |||||
Investments and Fair Value of Financial Instruments | |||||
Business Combination, Contingent Consideration, Liability, Noncurrent | 0 | ||||
Deferred Compensation Plan Assets | 0 | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring [Member] | Equity Securities | |||||
Investments and Fair Value of Financial Instruments | |||||
Marketable Securities | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |||||
Investments and Fair Value of Financial Instruments | |||||
Business Combination, Contingent Consideration, Liability, Noncurrent | (10,000) | ||||
Deferred Compensation Plan Assets | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Equity Securities | |||||
Investments and Fair Value of Financial Instruments | |||||
Marketable Securities | $ 0 | $ 0 | $ 0 |
Debt (Details)
Debt (Details) - USD ($) | Sep. 29, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | Apr. 03, 2021 | Jun. 11, 2020 | Dec. 20, 2019 | Sep. 30, 2019 |
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 1,740,552,000 | $ 1,740,552,000 | $ 1,742,550,000 | ||||||
Unamortized premium and issuance costs, net | (1,396,000) | (1,396,000) | (1,475,000) | ||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 13,000,000 | ||||||||
Interest Expense, Borrowings | 16,200,000 | $ 24,600,000 | 32,500,000 | $ 44,600,000 | |||||
Repayments of Debt | 1,300,000 | 2,500,000 | |||||||
Proceeds from borrowings and debt issuances | 0 | 1,206,750,000 | |||||||
Current portion of long-term debt | 5,545,000 | 5,545,000 | 5,092,000 | ||||||
Interest expense | 15,327,000 | 23,486,000 | 30,606,000 | 42,335,000 | |||||
Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 195,000,000 | 195,000,000 | 197,500,000 | ||||||
Proceeds from borrowings and debt issuances | $ 200,000,000 | ||||||||
4.375% senior notes due 2029 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | 850,000,000 | 850,000,000 | 850,000,000 | $ 300,000,000 | $ 200,000,000 | $ 350,000,000 | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 0 | 0 | 18,600,000 | ||||||
Long-term Debt, Fair Value | 924,300,000 | 924,300,000 | 905,300,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.375% | ||||||||
3.375% Senior Notes due 2031 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 700,000,000 | 700,000,000 | 700,000,000 | 700,000,000 | |||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 11,800,000 | 0 | 11,800,000 | 0 | |||||
Long-term Debt, Fair Value | 739,600,000 | 739,600,000 | 689,500,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.375% | ||||||||
Finance leases [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 2,493,000 | 2,493,000 | $ 1,617,000 | ||||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest Costs Capitalized | 900,000 | $ 1,100,000 | 1,900,000 | $ 2,300,000 | |||||
Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 600,000 | 1,200,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | ||||||||
Repayments of Debt | 97,500,000 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000,000 | ||||||||
Proceeds from Lines of Credit | $ 0 |
Stock Repurchases (Details)
Stock Repurchases (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | May 05, 2021 | |
Class of Stock [Line Items] | |||||
Stock Repurchased During Period, Shares | 1.2 | 0.8 | 2.9 | 1.6 | |
Stock Repurchased During Period, Value | $ 223,356 | $ 105,009 | $ 523,373 | $ 180,048 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,490,600 | $ 1,490,600 | |||
Document Period End Date | Oct. 2, 2021 | ||||
May 2021 Program | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 2,000,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 236,900 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Millions | Oct. 02, 2021USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase Obligation | $ 2,400 |
Purchase Obligation, to be Paid, Remainder of Fiscal Year | 600 |
Purchase obligation, to be paid next four fiscal years | 1,800 |
Capacity reservation agreement with foundry supplier | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase Obligation | $ 1,800 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Disaggregation of Revenue | ||||
Revenue | $ 1,255,248 | $ 1,060,292 | $ 2,365,599 | $ 1,847,743 |
China | ||||
Disaggregation of Revenue | ||||
Revenue | 418,263 | 391,011 | 954,200 | 778,233 |
Taiwan | ||||
Disaggregation of Revenue | ||||
Revenue | 92,067 | 53,350 | 177,281 | 106,679 |
United States | ||||
Disaggregation of Revenue | ||||
Revenue | 560,992 | 459,416 | 880,173 | 707,661 |
Europe | ||||
Disaggregation of Revenue | ||||
Revenue | 64,438 | 53,967 | 125,179 | 94,525 |
Other Asia | ||||
Disaggregation of Revenue | ||||
Revenue | $ 119,488 | $ 102,548 | $ 228,766 | $ 160,645 |
Operating Segment Information_2
Operating Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Document Period End Date | Oct. 2, 2021 | |||
Revenue: | ||||
Revenues | $ 1,255,248 | $ 1,060,292 | $ 2,365,599 | $ 1,847,743 |
Income from operations: | ||||
Operating income | 362,360 | 221,644 | 659,462 | 314,356 |
Interest expense | 15,327 | 23,486 | 30,606 | 42,335 |
Other income (expense), net | 4,754 | 1,920 | 21,545 | 25,057 |
Income before income taxes | 351,787 | 200,078 | 650,401 | 297,078 |
Stock-based compensation expense | (53,929) | (51,907) | ||
Amortization of intangible assets | (36,600) | (72,400) | (74,022) | (144,470) |
Operating Segments | Mobile Products | ||||
Revenue: | ||||
Revenues | 995,697 | 754,294 | 1,831,835 | 1,222,698 |
Income from operations: | ||||
Operating income | 385,589 | 262,858 | 685,279 | 372,841 |
Operating Segments | Infrastructure and Defense Products | ||||
Revenue: | ||||
Revenues | 259,551 | 305,998 | 533,764 | 625,045 |
Income from operations: | ||||
Operating income | 49,829 | 66,495 | 117,168 | 160,250 |
All other | ||||
Income from operations: | ||||
Operating income | (73,058) | (107,709) | (142,985) | (218,735) |
Stock-based compensation expense | (28,691) | (30,048) | (53,929) | (51,907) |
Amortization of intangible assets | (36,577) | (72,147) | (73,800) | (144,091) |
Acquisition and integration related costs | (6,040) | (7,259) | (10,033) | (19,922) |
Other (including (loss) gain on assets, start-up costs, restructuring related charges and other miscellaneous corporate overhead) | $ (1,750) | $ 1,745 | $ (5,223) | $ (2,815) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income Tax Expense (Benefit) | $ 32,598 | $ 63,161 | $ 45,586 | $ 63,239 |
Effective tax rate | 9.30% | 31.60% | 7.00% | 21.30% |
Discrete tax expense (benefit) | $ 10,300 | $ (45,200) | $ 30,500 | $ (35,200) |
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 | ||
Oct. 02, 2021 | Oct. 03, 2020 | Oct. 02, 2021 | Oct. 03, 2020 | |
Earnings Per Share [Abstract] | ||||
Document Period End Date | Oct. 2, 2021 | |||
Numerator: | ||||
Numerator for basic and diluted net income (loss) per share — net income (loss) available to common stockholders | $ 319,189 | $ 136,917 | $ 604,815 | $ 233,839 |
EPS Line Items | ||||
Denominator for basic net income (loss) per share — weighted average shares | 111,035 | 114,328 | 111,476 | 114,388 |
Stock-based awards | 1,376 | 1,849 | 1,612 | 2,007 |
Denominator for diluted net income (loss) per share — adjusted weighted average shares and assumed conversions | 112,411 | 116,177 | 113,088 | 116,395 |
Basic net income (loss) per share (in dollars per share) | $ 2.87 | $ 1.20 | $ 5.43 | $ 2.04 |
Diluted net income (loss) per share (in dollars per share) | $ 2.84 | $ 1.18 | $ 5.35 | $ 2.01 |
Subsequent Events (Details)
Subsequent Events (Details) - United Silicon Carbide - Subsequent Event [Member] $ in Millions | Oct. 19, 2021USD ($) |
Subsequent Events [Abstract] | |
Business Combination, Consideration Transferred | $ 227.1 |
Business Combination, Contingent Consideration, Liability | 31.3 |
Subsequent Event [Line Items] | |
Business Combination, Contingent Consideration, Liability | 31.3 |
Business Combination, Consideration Transferred | $ 227.1 |