Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 27, 2015 | Apr. 10, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ALTERA CORP | |
Entity Central Index Key | 768251 | |
Document Type | 10-Q | |
Document Period End Date | 27-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year | 2015 | |
Document Fiscal Period | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 301,088,968 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 27, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $2,207,101 | $2,426,367 |
Short-term investments | 168,849 | 151,519 |
Total cash, cash equivalents, and short-term investments | 2,375,950 | 2,577,886 |
Accounts receivable, net | 433,690 | 377,964 |
Inventories | 155,353 | 153,387 |
Deferred income taxes — current | 62,144 | 56,048 |
Deferred compensation plan — marketable securities | 65,075 | 69,367 |
Deferred compensation plan — restricted cash equivalents | 20,226 | 14,412 |
Other current assets | 42,336 | 39,479 |
Total current assets | 3,154,774 | 3,288,543 |
Property and equipment, net | 215,309 | 194,840 |
Long-term investments | 2,139,810 | 1,942,343 |
Deferred income taxes — non-current | 20,258 | 20,077 |
Goodwill | 74,341 | 74,341 |
Acquisition-related intangible assets, net | 69,827 | 72,291 |
Other assets, net | 92,746 | 81,791 |
Total assets | 5,767,065 | 5,674,226 |
Current liabilities: | ||
Accounts payable | 46,918 | 49,140 |
Accrued liabilities | 33,727 | 28,384 |
Accrued compensation and related liabilities | 60,234 | 69,837 |
Deferred compensation plan obligations | 85,301 | 83,779 |
Deferred income and allowances on sales to distributors | 411,558 | 344,168 |
Total current liabilities | 637,738 | 575,308 |
Income taxes payable — non-current | 326,700 | 313,447 |
Long-term debt | 1,493,082 | 1,492,759 |
Other non-current liabilities | 6,798 | 6,886 |
Total liabilities | 2,464,318 | 2,388,400 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock: $.001 par value; 1,000,000 shares authorized; outstanding - 301,025 shares at March 27, 2015 and 302,430 shares at December 31, 2014 | 301 | 302 |
Capital in excess of par value | 1,170,315 | 1,165,259 |
Retained earnings | 2,108,201 | 2,110,620 |
Accumulated other comprehensive income | 23,930 | 9,645 |
Total stockholders' equity | 3,302,747 | 3,285,826 |
Total liabilities and stockholders' equity | $5,767,065 | $5,674,226 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 27, 2015 | Dec. 31, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Common Stock, par value per share | $0.00 | $0.00 |
Common Stock, shares authorized | 1,000,000 | 1,000,000 |
Common Stock, shares outstanding | 301,025 | 302,430 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 27, 2015 | Mar. 28, 2014 |
Income Statement [Abstract] | ||
Net sales | $435,485 | $461,092 |
Cost of sales | 156,263 | 151,868 |
Gross margin | 279,222 | 309,224 |
Research and development expense | 103,231 | 97,657 |
Selling, general, and administrative expense | 70,506 | 74,507 |
Amortization of acquisition-related intangible assets | 2,464 | 2,465 |
Compensation expense — deferred compensation plan | 27 | 1,454 |
Gain on deferred compensation plan securities | -27 | -1,454 |
Interest income and other | -6,596 | -5,985 |
Gain reclassified from other comprehensive income | -2,506 | -48 |
Interest expense | 10,408 | 10,488 |
Income before income taxes | 101,715 | 130,140 |
Income tax expense | 6,863 | 13,626 |
Net income | 94,852 | 116,514 |
Unrealized holding gain on investments: | ||
Unrealized holding gain on investments arising during period, net of tax of $41 and $24 | 16,785 | 12,560 |
Less: Reclassification adjustments for gain on investments included in net income, net of tax of $6 and $4 | -2,500 | -44 |
Other comprehensive income | 14,285 | 12,516 |
Comprehensive income | $109,137 | $129,030 |
Net income per share (in dollars per share): | ||
Basic (in dollars per share) | $0.31 | $0.37 |
Diluted (in dollars per share) | $0.31 | $0.37 |
Shares used in computing per share amounts (in shares): | ||
Basic (in shares) | 301,308 | 316,552 |
Diluted (in shares) | 303,285 | 318,901 |
Dividends per common share | $0.18 | $0.15 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 27, 2015 | Mar. 28, 2014 |
Income Statement [Abstract] | ||
Tax on unrealized holding gain (loss) on investments arising during period | $41 | $24 |
Tax on reclassification adjustments for gain on investments included in net income | $6 | $4 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 27, 2015 | Mar. 28, 2014 |
Cash Flows from Operating Activities: | ||
Net income | $94,852 | $116,514 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 14,453 | 14,628 |
Amortization of acquisition-related intangible assets | 2,464 | 2,465 |
Amortization of debt discount and debt issuance costs | 779 | 779 |
Stock-based compensation | 20,325 | 23,347 |
Net gain on sale of available-for-sale securities | -2,506 | -48 |
Amortization of investment discount/premium | 2,129 | 685 |
Deferred income tax benefit | -651 | -1,711 |
Tax effect of employee stock plans | 0 | -217 |
Excess tax benefit from employee stock plans | -203 | -326 |
Changes in assets and liabilities: | ||
Accounts receivable, net | -55,726 | 39,623 |
Inventories | -1,966 | 5,743 |
Other assets | -9,098 | -5,185 |
Accounts payable and other liabilities | -2,998 | -3,425 |
Deferred income and allowances on sales to distributors | 67,390 | -73,227 |
Income taxes payable and receivable, net | 5,894 | 10,111 |
Deferred compensation plan obligations | 1,495 | 674 |
Net cash provided by operating activities | 136,633 | 130,430 |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | -38,593 | -12,622 |
Purchases of deferred compensation plan securities, net | -1,495 | -674 |
Purchases of available-for-sale securities | -625,960 | -103,982 |
Proceeds from sale of available-for-sale securities | 387,985 | 35,562 |
Proceeds from maturity of available-for-sale securities | 37,472 | 41,548 |
Purchases of intangible assets | -257 | 0 |
Purchases of other investments | -2,000 | 0 |
Net cash used in investing activities | -242,848 | -40,168 |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of common stock through stock plans | 1,408 | 6,082 |
Shares withheld for employee taxes | -2,994 | -3,048 |
Payment of dividends to stockholders | -54,161 | -47,554 |
Long-term debt and credit facility issuance costs | 0 | -1,321 |
Repurchases of common stock | -57,507 | -161,794 |
Excess tax benefit from employee stock plans | 203 | 326 |
Net cash used in financing activities | -113,051 | -207,309 |
Net decrease in cash and cash equivalents | -219,266 | -117,047 |
Cash and cash equivalents at beginning of period | 2,426,367 | 2,869,158 |
Cash and cash equivalents at end of period | $2,207,101 | $2,752,111 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended |
Mar. 27, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation |
The accompanying unaudited consolidated financial statements of Altera Corporation and its subsidiaries, collectively referred to herein as “Altera”, “we”, “us”, or “our”, have been prepared by us in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. This financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the results for the periods presented. The December 31, 2014 consolidated balance sheet data was derived from our audited consolidated financial statements included in our 2014 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (“SEC”), but does not include all disclosures required by U.S. GAAP. The consolidated financial statements include our accounts as well as those of our wholly-owned subsidiaries after elimination of all significant inter-company balances and transactions. | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. | |
These consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2014 included in our Annual Report on Form 10-K. The consolidated operating results for the three months ended March 27, 2015 are not necessarily indicative of the results to be expected for any future period. | |
Certain prior year amounts in the consolidated financial statements and the notes thereto have been reclassified to conform to the current year presentation. These reclassifications did not affect the prior period total assets, total liabilities, stockholders' equity, net income or net cash provided by operating activities. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 27, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new financial accounting standard on revenue from contracts with customers, Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers". The standard outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard update is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. We are currently evaluating the impact of this accounting standard on our consolidated financial statements. | |
In February 2015, the FASB issued ASU 2015-02, "Consolidation: Amendments to the Consolidation Analysis". This standard update is intended to improve targeted areas of consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. This ASU simplifies consolidation accounting by reducing the number of consolidation models and improves current U.S. GAAP by (1) placing more emphasis on risk of loss when determining a controlling financial interest; (2) reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity; and (3) changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or variable interest entities. The amendments in this ASU are effective for reporting periods beginning after December 15, 2015, with early adoption permitted. Entities can transition to the standard either retrospectively or as a cumulative effect adjustment as of the date of adoption. The adoption of ASU 2015-02 is not expected to have an impact on our consolidated financial statements. | |
In April 2015, the FASB issued ASU 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs". This standard update requires an entity to present debt issuance costs on the balance sheet as a direct deduction from the related debt liability as opposed to an asset. Amortization of the costs will continue to be reported as interest expense. The update is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued, and the new guidance would be applied retrospectively to all prior periods presented. The adoption of this standard update is not expected to have a material impact on our consolidated financial statements. |
AcquisitionRelated_Intangible_
Acquisition-Related Intangible Assets, Net | 3 Months Ended | ||||||||||||||
Mar. 27, 2015 | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||
Acquisition-Related Intangible Assets, Net | Acquisition-Related Intangible Assets, Net | ||||||||||||||
Acquisition-related intangible assets, net were as follows: | |||||||||||||||
March 27, 2015 | |||||||||||||||
(In thousands) | Gross Assets | Accumulated Amortization | Net | Weighted-Average Amortization Period | |||||||||||
Developed technology | $ | 67,670 | $ | (13,398 | ) | $ | 54,272 | 9.4 years | |||||||
Customer relationships | 12,910 | (3,967 | ) | 8,943 | 6.8 years | ||||||||||
Trade name | 3,700 | (774 | ) | 2,926 | 8.9 years | ||||||||||
Non-competition agreements | 700 | (650 | ) | 50 | 2.0 years | ||||||||||
Other intangible assets | 930 | (794 | ) | 136 | 1.2 years | ||||||||||
Acquisition-related intangible assets, net subject to amortization | 85,910 | (19,583 | ) | 66,327 | |||||||||||
In-process research & development | 3,500 | — | 3,500 | ||||||||||||
Total acquisition-related intangible assets, net | $ | 89,410 | $ | (19,583 | ) | $ | 69,827 | ||||||||
December 31, 2014 | |||||||||||||||
(In thousands) | Gross Assets | Accumulated Amortization | Net | Weighted-Average Amortization Period | |||||||||||
Developed technology | $ | 67,670 | $ | (11,607 | ) | $ | 56,063 | 9.4 years | |||||||
Customer relationships | 12,910 | (3,493 | ) | 9,417 | 6.8 years | ||||||||||
Trade name | 3,700 | (670 | ) | 3,030 | 8.9 years | ||||||||||
Non-competition agreements | 700 | (563 | ) | 137 | 2.0 years | ||||||||||
Other intangible assets | 930 | (786 | ) | 144 | 1.2 years | ||||||||||
Acquisition-related intangible assets subject to amortization, net | 85,910 | (17,119 | ) | 68,791 | |||||||||||
In-process research & development | 3,500 | — | 3,500 | ||||||||||||
Total acquisition-related intangible assets, net | $ | 89,410 | $ | (17,119 | ) | $ | 72,291 | ||||||||
In-process research & development ("IPR&D") assets represent the fair value of incomplete research and development projects that had not reached technological feasibility as of the date of acquisition. In 2013, we capitalized IPR&D of $28.1 million related to two acquisitions. Initially, these assets are classified as indefinite-lived intangible assets that are not subject to amortization. IPR&D assets related to projects that have been completed are transferred to the developed technology intangible asset to begin amortization, while IPR&D assets related to abandoned projects are impaired and expensed to Research and development expense in the consolidated statements of comprehensive income. No projects were abandoned in 2014 or 2015. The remaining IPR&D project as of March 27, 2015 is expected to be completed in the third quarter of 2015. | |||||||||||||||
Based on the carrying value of Acquisition-related intangible assets, net as of March 27, 2015, the annual amortization expense for Acquisition-related intangible assets, net is expected to be as follows: | |||||||||||||||
Fiscal Year | Amortization Expense | ||||||||||||||
(In thousands) | |||||||||||||||
2015 (remaining nine months) | $ | 7,182 | |||||||||||||
2016 | 9,327 | ||||||||||||||
2017 | 9,151 | ||||||||||||||
2018 | 9,039 | ||||||||||||||
2019 | 8,938 | ||||||||||||||
2020 and Thereafter | 22,690 | ||||||||||||||
Total | $ | 66,327 | |||||||||||||
Financial_Instruments
Financial Instruments | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 27, 2015 | |||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments | ||||||||||||||||||||||||||||
Cash, Cash Equivalents and Marketable Securities | |||||||||||||||||||||||||||||
The following tables summarize our cash and available-for-sale securities by significant investment category. | |||||||||||||||||||||||||||||
March 27, 2015 | |||||||||||||||||||||||||||||
(In thousands) | Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
Cash | $ | 67,652 | $ | — | $ | — | $ | 67,652 | $ | 67,652 | $ | — | $ | — | |||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 2,133,747 | — | — | 2,133,747 | 2,133,747 | — | — | ||||||||||||||||||||||
U.S. treasury securities | 1,085,784 | 20,551 | (101 | ) | 1,106,234 | 5,702 | 44,690 | 1,055,842 | |||||||||||||||||||||
Subtotal | 3,219,531 | 20,551 | (101 | ) | 3,239,981 | 2,139,449 | 44,690 | 1,055,842 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
U.S. agency securities | 22,236 | 19 | — | 22,255 | — | 9,795 | 12,460 | ||||||||||||||||||||||
Non-U.S. government securities | 41,819 | 29 | (15 | ) | 41,833 | — | 11,926 | 29,907 | |||||||||||||||||||||
Municipal bonds | 2,000 | 3 | — | 2,003 | — | 2,003 | — | ||||||||||||||||||||||
Corporate debt securities | 1,138,545 | 4,039 | (548 | ) | 1,142,036 | — | 100,435 | 1,041,601 | |||||||||||||||||||||
Subtotal | 1,204,600 | 4,090 | (563 | ) | 1,208,127 | — | 124,159 | 1,083,968 | |||||||||||||||||||||
Total | $ | 4,491,783 | $ | 24,641 | $ | (664 | ) | $ | 4,515,760 | $ | 2,207,101 | $ | 168,849 | $ | 2,139,810 | ||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(In thousands) | Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
Cash | $ | 57,505 | $ | — | $ | — | $ | 57,505 | $ | 57,505 | $ | — | $ | — | |||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 2,366,799 | — | — | 2,366,799 | 2,366,799 | — | — | ||||||||||||||||||||||
U.S. treasury securities | 1,338,162 | 12,721 | (2,302 | ) | 1,348,581 | 500 | 38,938 | 1,309,143 | |||||||||||||||||||||
Subtotal | 3,704,961 | 12,721 | (2,302 | ) | 3,715,380 | 2,367,299 | 38,938 | 1,309,143 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
U.S. agency securities | 21,186 | 12 | (7 | ) | 21,191 | — | 11,748 | 9,443 | |||||||||||||||||||||
Non-U.S. government securities | 31,281 | 2 | (17 | ) | 31,266 | — | 19,459 | 11,807 | |||||||||||||||||||||
Municipal bonds | 2,000 | 2 | — | 2,002 | — | 1,001 | 1,001 | ||||||||||||||||||||||
Corporate debt securities | 693,638 | 362 | (1,115 | ) | 692,885 | 1,563 | 80,373 | 610,949 | |||||||||||||||||||||
Subtotal | 748,105 | 378 | (1,139 | ) | 747,344 | 1,563 | 112,581 | 633,200 | |||||||||||||||||||||
Total | $ | 4,510,571 | $ | 13,099 | $ | (3,441 | ) | $ | 4,520,229 | $ | 2,426,367 | $ | 151,519 | $ | 1,942,343 | ||||||||||||||
As of March 27, 2015, we had cost method investments of approximately $24.6 million. These investments are included within Other assets, net on our consolidated balance sheets. The investments are non-marketable equity investments in privately held companies in which we have less than a 20% interest and no significant influence over the investee's operations. We report these investments at cost, except when investments are found to be other-than-temporarily impaired after an impairment review. We did not recognize any impairment losses for 2015 or 2014. | |||||||||||||||||||||||||||||
The adjusted cost and estimated fair value of marketable debt securities (corporate debt securities, municipal bonds, U.S. and foreign government securities, and U.S. treasury securities) as of March 27, 2015, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. | |||||||||||||||||||||||||||||
March 27, 2015 | |||||||||||||||||||||||||||||
(In thousands) | Cost | Estimated Fair Value | |||||||||||||||||||||||||||
Due in one year or less | $ | 174,432 | $ | 174,551 | |||||||||||||||||||||||||
Due after one year through five years | 1,712,133 | 1,717,868 | |||||||||||||||||||||||||||
Due between six and ten years | 403,819 | 421,942 | |||||||||||||||||||||||||||
$ | 2,290,384 | $ | 2,314,361 | ||||||||||||||||||||||||||
As of March 27, 2015, we had 272 available-for-sale securities, or $354.9 million out of our total investment portfolio, that were in a continuous unrealized loss position for less than 12 months with a gross unrealized loss of $0.7 million. As of December 31, 2014, we had 508 available-for-sale securities, or $1.1 billion out of our total investment portfolio, that were in a continuous unrealized loss position for less than 12 months with a gross unrealized loss of $3.4 million. | |||||||||||||||||||||||||||||
We concluded that the declines in market value of our available-for-sale securities investment portfolio were temporary in nature and did not consider any of our investments to be other-than-temporarily impaired. |
Accounts_Receivable_Net_and_Si
Accounts Receivable, Net and Significant Customers | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||
Accounts Receivable, Net and Significant Customers | Accounts Receivable, Net and Significant Customers | ||||||||
Accounts receivable, net consisted of the following: | |||||||||
(In thousands) | March 27, | December 31, | |||||||
2015 | 2014 | ||||||||
Gross accounts receivable | $ | 434,190 | $ | 380,442 | |||||
Allowance for doubtful accounts | (500 | ) | (500 | ) | |||||
Allowance for sales returns | — | (1,978 | ) | ||||||
Accounts receivable, net | $ | 433,690 | $ | 377,964 | |||||
We sell our products to original equipment manufacturers ("OEMs") and to electronic components distributors who resell these products to OEMs, or their contract manufacturers. Net sales by customer type and net sales to significant customers were as follows: | |||||||||
Three Months Ended | |||||||||
(Percentage of Net Sales) | March 27, | March 28, | |||||||
2015 | 2014 | ||||||||
Sales to distributors | 73 | % | 74 | % | |||||
Sales to OEMs | 27 | % | 26 | % | |||||
100 | % | 100 | % | ||||||
Significant Distributors(1): | |||||||||
Arrow Electronics, Inc. ( “Arrow”) | 41 | % | 38 | % | |||||
Macnica, Inc. (“Macnica”) | 20 | % | 24 | % | |||||
-1 | Except as presented above, no other distributor accounted for greater than 10% of our net sales for the three months ended March 27, 2015 or March 28, 2014. | ||||||||
For the quarterly periods ended March 27, 2015 and March 28, 2014, one OEM accounted for 12% and 11%, respectively, of our net sales. No other individual OEM accounted for more than 10% of our net sales for the quarterly periods ended March 27, 2015 or March 28, 2014. | |||||||||
As of March 27, 2015, accounts receivable from Arrow and Macnica individually accounted for approximately 30% and 50%, respectively, of our total accounts receivable. As of December 31, 2014, accounts receivable from Arrow and Macnica individually accounted for approximately 34% and 47%, respectively, of our total accounts receivable. No other distributor or OEM accounted for more than 10% of our accounts receivable as of March 27, 2015 or December 31, 2014. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories | ||||||||
Inventories consisted of the following: | |||||||||
(In thousands) | March 27, | December 31, | |||||||
2015 | 2014 | ||||||||
Raw materials | $ | 6,342 | $ | 6,826 | |||||
Work in process | 107,653 | 95,675 | |||||||
Finished goods | 41,358 | 50,886 | |||||||
Total inventories | $ | 155,353 | $ | 153,387 | |||||
Property_and_Equipment_Net
Property and Equipment, Net | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment, Net | Property and Equipment, Net | ||||||||
Property and equipment, net consisted of the following: | |||||||||
(In thousands) | March 27, | December 31, | |||||||
2015 | 2014 | ||||||||
Land and land rights | $ | 23,157 | $ | 23,157 | |||||
Buildings | 161,096 | 161,070 | |||||||
Equipment and software | 317,240 | 298,069 | |||||||
Office furniture and fixtures | 24,686 | 24,601 | |||||||
Leasehold improvements | 13,015 | 12,800 | |||||||
Construction in progress | 1,806 | 9,597 | |||||||
Property and equipment, at cost | 541,000 | 529,294 | |||||||
Accumulated depreciation | (325,691 | ) | (334,454 | ) | |||||
Property and equipment, net | $ | 215,309 | $ | 194,840 | |||||
Depreciation expense was $12.8 million and $13.0 million for the three months ended March 27, 2015 and March 28, 2014, respectively. Depreciation and amortization expense as presented in our consolidated statements of cash flows includes the above amounts, together with amortization expense on our non-acquisition related intangible assets. |
Deferred_Income_and_Allowances
Deferred Income and Allowances on Sales to Distributors | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Deferred Revenue Disclosure [Abstract] | |||||||||
Deferred Income and Allowances on Sales to Distributors | Deferred Income and Allowances on Sales to Distributors | ||||||||
Deferred income and allowances on sales to distributors consisted of the following: | |||||||||
(In thousands) | March 27, | December 31, | |||||||
2015 | 2014 | ||||||||
Deferred revenue on shipment to distributors | $ | 440,453 | $ | 369,560 | |||||
Deferred cost of sales on shipment to distributors | (35,479 | ) | (32,172 | ) | |||||
Deferred income on shipment to distributors | 404,974 | 337,388 | |||||||
Other deferred revenue (1) | 6,584 | 6,780 | |||||||
Total | $ | 411,558 | $ | 344,168 | |||||
(1) Principally represents revenue deferred on our maintenance contracts, software and intellectual property licenses. | |||||||||
The Deferred income and allowances on sales to distributors activity was as follows: | |||||||||
Three Months Ended | |||||||||
(In thousands) | March 27, | March 28, | |||||||
2015 | 2014 | ||||||||
Balance at beginning of period | $ | 344,168 | $ | 487,746 | |||||
Deferred revenue recognized upon shipment to distributors | 1,478,292 | 1,354,597 | |||||||
Deferred cost of sales recognized upon shipment to distributors | (70,524 | ) | (66,527 | ) | |||||
Revenue recognized upon sell-through to end customers | (249,284 | ) | (277,671 | ) | |||||
Cost of sales recognized upon sell-through to end customers | 66,651 | 66,733 | |||||||
Earned distributor price concessions (1) | (1,147,370 | ) | (1,137,745 | ) | |||||
Returns | (10,198 | ) | (11,163 | ) | |||||
Other | (177 | ) | (1,451 | ) | |||||
Balance at end of period | $ | 411,558 | $ | 414,519 | |||||
-1 | Average aggregate price concessions typically range from 70% to 85% of our list price on an annual basis, depending upon the composition of our sales, volumes and factors associated with timing of shipments to distributors. | ||||||||
We sell the majority of our products to distributors worldwide at a list price. However, distributors resell our products to end customers at a very broad range of individually negotiated prices based on a variety of factors, including customer, product, quantity, geography and competitive differentiation. The majority of our distributors' sales to their customers are priced at a discount from our list price. Under these circumstances, we remit back to the distributor a portion of its original purchase price after the resale transaction is completed, and we validate the distributor's resale information, including end customer, device, quantity and price, against the distributor price concession that we have approved in advance. To receive a price concession, a distributor must submit the price concession claim to us for approval within 60 days of the resale of the product to an end customer. It is our practice to apply these negotiated price discounts to future purchases, requiring the distributor to settle receivable balances, on a current basis, generally within 30 days, for amounts originally invoiced. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 27, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income |
Accumulated other comprehensive income on our consolidated balance sheets as of March 27, 2015 and December 31, 2014 consisted of accumulated unrealized gains on available-for-sale securities, net of tax. As of March 27, 2015 and December 31, 2014, accumulated unrecognized gains on available-for-sale securities, net of tax, was $23.9 million and $9.6 million, respectively. |
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Net Income Per Share | Net Income Per Share | ||||||||
A reconciliation of basic and diluted Net income per share is presented below: | |||||||||
Three Months Ended | |||||||||
(In thousands, except per share amounts) | March 27, | March 28, | |||||||
2015 | 2014 | ||||||||
Basic: | |||||||||
Net income | $ | 94,852 | $ | 116,514 | |||||
Basic weighted shares outstanding | 301,308 | 316,552 | |||||||
Net income per share | $ | 0.31 | $ | 0.37 | |||||
Diluted: | |||||||||
Net income | $ | 94,852 | $ | 116,514 | |||||
Weighted shares outstanding | 301,308 | 316,552 | |||||||
Effect of dilutive securities: | |||||||||
Stock options, employee stock purchase plan, and restricted stock unit shares | 1,977 | 2,349 | |||||||
Diluted weighted shares outstanding | 303,285 | 318,901 | |||||||
Net income per share | $ | 0.31 | $ | 0.37 | |||||
In applying the treasury stock method, we excluded 1.2 million and 1.9 million stock option shares and restricted stock unit (including performance-based restricted stock unit) shares for the three months ended March 27, 2015 and March 28, 2014, respectively, because their effect was anti-dilutive. While these shares have been anti-dilutive, they could be dilutive in the future. |
Credit_Facility_and_LongTerm_D
Credit Facility and Long-Term Debt | 3 Months Ended | |||||||||||||||||||||||
Mar. 27, 2015 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||
Credit Facility and Long-Term Debt | Credit Facility and Long-Term Debt | |||||||||||||||||||||||
Credit Facility | ||||||||||||||||||||||||
In 2012, we entered into a five-year $250 million unsecured revolving credit facility (the "Facility"). Under certain circumstances, upon our request and with the consent of the lenders, the commitments under the Facility may be increased up to an additional $250 million. Borrowings under the Facility will bear interest at a base rate determined in accordance with the Facility, plus an applicable margin based upon the debt rating of our non-credit enhanced, senior unsecured long-term debt. In addition, we are obligated to pay a quarterly commitment fee, payable in arrears, based on the available commitments. This Facility fee varies and is also determined based on our debt rating. The terms of the Facility require compliance with certain financial and non-financial covenants, which we had satisfied as of March 27, 2015. As of March 27, 2015, we had not borrowed any funds under the Facility. | ||||||||||||||||||||||||
Long-term Debt | ||||||||||||||||||||||||
The carrying values and associated effective interest rates for our Long-term debt were as follows: | ||||||||||||||||||||||||
(In thousands, except rates) | Effective Interest Rate | March 27, 2015 | December 31, 2014 | |||||||||||||||||||||
2013 Senior Notes due November 15, 2018 at 2.50% | 2.71% | $ | 597,717 | $ | 597,557 | |||||||||||||||||||
2013 Senior Notes due November 15, 2023 at 4.10% | 4.29% | 395,684 | 395,559 | |||||||||||||||||||||
2012 Senior Notes due May 15, 2017 at 1.75% | 1.94% | 499,681 | 499,643 | |||||||||||||||||||||
Total long-term debt | $ | 1,493,082 | $ | 1,492,759 | ||||||||||||||||||||
In 2013, we issued $600 million aggregate principal amount of 2.50% senior notes (the “2.50% Notes”) and $400 million aggregate principal amount of 4.10% senior notes (the “4.10% Notes”) for stock repurchase and general corporate purposes. We received net proceeds of $991.8 million, after deduction of a discount of $8.2 million, and we capitalized direct debt issuance costs of $5.5 million from issuance of the 2.50% Notes and the 4.10% Notes. | ||||||||||||||||||||||||
In 2012, we issued $500 million aggregate principal amount of 1.75% senior notes (the "1.75% Notes") to repay our outstanding credit facility. We received net proceeds of $499.2 million, after deduction of a discount of $0.8 million, and we capitalized direct debt issuance costs of $3.7 million from issuance of the 1.75% Notes. | ||||||||||||||||||||||||
All three of our senior notes (the “Notes”) pay a fixed rate of interest semiannually on May 15 and November 15 of each year. The Notes are governed by a base and supplemental indenture between Altera and U.S. Bank National Association, as trustee. The Notes are unsecured and unsubordinated obligations, ranking equally in right of payment to all of our existing and future unsecured and unsubordinated indebtedness and senior in right of payment to any of our future indebtedness that is expressly subordinated to the Notes. We may redeem the Notes, in whole or in part, at any time and from time to time for cash at the redemption prices described in the indentures. | ||||||||||||||||||||||||
The direct debt issuance costs associated with the Notes are recorded in Other assets, net in our consolidated balance sheets and are being amortized to Interest expense in our consolidated statements of comprehensive income over the contractual term using the effective interest method. | ||||||||||||||||||||||||
The carrying values of the Notes are reflected in our consolidated balance sheets as follows: | ||||||||||||||||||||||||
2.50% Notes | 4.10% Notes | 1.75% Notes | ||||||||||||||||||||||
(In thousands) | March 27, 2015 | December 31, 2014 | March 27, 2015 | December 31, 2014 | March 27, 2015 | December 31, 2014 | ||||||||||||||||||
Principal amount | $ | 600,000 | $ | 600,000 | $ | 400,000 | $ | 400,000 | $ | 500,000 | $ | 500,000 | ||||||||||||
Unamortized discount | (2,283 | ) | (2,443 | ) | (4,316 | ) | (4,441 | ) | (319 | ) | (357 | ) | ||||||||||||
Net carrying value | $ | 597,717 | $ | 597,557 | $ | 395,684 | $ | 395,559 | $ | 499,681 | $ | 499,643 | ||||||||||||
Interest expense related to the Notes was included in Interest expense in the consolidated statements of comprehensive income as follows: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
(In thousands) | 27-Mar-15 | 28-Mar-14 | ||||||||||||||||||||||
Contractual coupon interest | $ | 9,538 | $ | 9,652 | ||||||||||||||||||||
Amortization of debt issuance costs | 456 | 456 | ||||||||||||||||||||||
Amortization of debt discount | 323 | 323 | ||||||||||||||||||||||
Total interest expense related to the Notes | $ | 10,317 | $ | 10,431 | ||||||||||||||||||||
The other component of Interest expense in our consolidated statements of comprehensive income is interest expense incurred related to bank service fees incurred in connection with our credit facility. | ||||||||||||||||||||||||
As of March 27, 2015, future principal payments for the Notes were as follows: | ||||||||||||||||||||||||
Fiscal Year | Payable | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
2015 (remaining nine months) | $ | — | ||||||||||||||||||||||
2016 | — | |||||||||||||||||||||||
2017 | 500,000 | |||||||||||||||||||||||
2018 | 600,000 | |||||||||||||||||||||||
2019 | — | |||||||||||||||||||||||
2020 and after | 400,000 | |||||||||||||||||||||||
Total | $ | 1,500,000 | ||||||||||||||||||||||
The Notes are measured at fair value on a quarterly basis for disclosure purposes. Our Notes are classified within Level 1 of the fair value hierarchy and the estimated fair value of the Notes is based on quoted market prices. The estimated fair value of the Notes is as follows: | ||||||||||||||||||||||||
2.50% Notes | 4.10% Notes | 1.75% Notes | ||||||||||||||||||||||
(In thousands) | 27-Mar-15 | 31-Dec-14 | 27-Mar-15 | 31-Dec-14 | 27-Mar-15 | 31-Dec-14 | ||||||||||||||||||
Estimated fair value | $ | 613,746 | $ | 606,564 | $ | 427,112 | $ | 417,480 | $ | 503,655 | $ | 501,460 | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 27, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Indemnification and Product Warranty | |
We indemnify certain customers, distributors, suppliers, and subcontractors for attorney's fees and damages and costs awarded against these parties in certain circumstances in which our products are alleged to infringe third party intellectual property rights, including patents, trade secrets, trademarks or copyrights. We cannot estimate the amount of potential future payments, if any, that we might be required to make as a result of these agreements. To date, we have not paid any claims nor have we been required to defend any action related to our indemnification obligations, and, accordingly, we have not accrued any amounts for such indemnification obligations. However, we may record charges in the future as a result of these indemnification obligations. | |
We generally warrant our devices for one year against defects in materials, workmanship and material non-conformance to our specifications. We accrue for known warranty issues if a loss is probable and can be reasonably estimated, and accrue for estimated but unidentified issues based on historical activity. If there is a material increase in customer claims compared with our historical experience or if the costs of servicing warranty claims are greater than expected, we may record a charge against cost of sales. Warranty expense was not significant for any period presented in our consolidated statements of comprehensive income. | |
Purchase Obligations | |
We depend entirely upon subcontractors to manufacture our silicon wafers and provide assembly and test services. Due to lengthy subcontractor lead times, we must order these materials and services from these subcontractors well in advance, and we are obligated to pay for the materials and services once they are completed. As of March 27, 2015, we had approximately $181.9 million of outstanding purchase commitments to such subcontractors. We expect to receive and pay for these materials and services over the next twelve months. | |
Operating Leases | |
We lease facilities and equipment under non-cancelable lease agreements expiring at various times through 2020 and beyond. There have been no significant changes to our operating lease obligations since December 31, 2014. | |
Other Commitments | |
As of December 31, 2014, we had $59.5 million of non-cancelable license obligations to providers of electronic design automation software and maintenance expiring at various dates through December 31, 2017. As of March 27, 2015, we had $12.8 million of outstanding non-cancelable license obligations remaining to be paid in equal quarterly installments through December 2017. | |
Legal Proceedings | |
On July 17, 2014, PLL Technologies, Inc. ("PTI") filed a patent infringement lawsuit against Altera and three additional defendants in the United States District Court for the District of Delaware seeking unspecified damages, interest, costs, and fees. On October 1, 2014, PTI amended its complaint, and on October 20, 2014, Altera answered the complaint, denying the patents are valid and denying infringement. The outcome of the above matter is not expected to have a material adverse effect on our consolidated operating results or financial position. | |
On June 20, 2014, Altera filed an action in the United States District Court for the Northern District of California against PACT XPP Technologies, AG (“PACT”), for a declaratory judgment of non-infringement and invalidity relating to several patents that PACT has asserted against us. On October 8, 2014, PACT answered the complaint and asserted counterclaims that Altera infringes various patents owned by PACT. Because the case is at a very early stage, we cannot determine at this time whether any loss has been incurred by Altera nor can we reasonably estimate any potential loss or range of potential loss. | |
We file income tax returns with the Internal Revenue Service (“IRS”) and in various United States ("U.S.") states and foreign jurisdictions. On December 8, 2011 and January 23, 2012, the IRS issued Statutory Notices of Deficiency (the “Notices”) determining, respectively, additional taxes for 2002 through 2004 of $19.8 million and additional taxes for 2005 through 2007 of $21.4 million, excluding interest. The IRS’s determinations relate primarily to inter-company transactions, computational adjustments to the R&D credit and reductions to the benefits of tax credit carry backs and carry forwards. We deposited $18.0 million as a cash bond with the IRS in 2008, and converted this amount to tax payments in March 2012. On March 6, 2012 and April 20, 2012, we filed petitions challenging the Notices in the U.S. Tax Court. The petitions request redetermination of the deficiencies produced by the IRS’s adjustments. The IRS has filed responses to our petitions, in which the IRS conceded the R&D credit adjustment for 2004. The Tax Court has consolidated the two cases and a judge has been assigned. The federal statute of limitations for the 2002 and 2003 tax years has expired, and the ongoing Tax Court litigation concerns only the 2004 through 2007 years. | |
On January 31, 2013, the IRS conceded one of the adjustments at issue in the litigation for the 2004 through 2007 tax years. The conceded adjustment related to certain inter-company services transactions. The concession only impacted our 2007 tax year. As a result of this concession, we recognized a tax and interest benefit of $6.8 million in 2013 due to the release of certain tax reserves. Altera and the IRS have filed cross motions for partial summary judgment on the largest adjustment still at issue, which is related to the treatment of stock-based compensation in an inter-company cost-sharing transaction. As part of the partial motion for summary judgment process, both sides filed briefs on May 28, 2013, July 25, 2013 and September 9, 2013. We expect to present additional legal arguments related to certain affirmative adjustments raised by Altera in the litigation. The parties have filed a series of Joint Status Reports with the court addressing these affirmative adjustments. The parties presented oral arguments on the partial summary judgment issue to the Tax Court on July 24, 2014 and we are awaiting a ruling. We believe we have made adequate tax payments or accrued adequate amounts for our tax liabilities for 2004 through 2007 and that the outcome of the above matters will not have a material adverse effect on our consolidated operating results or financial position. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||||||||
Mar. 27, 2015 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||||
Our equity incentive program is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. The program provides stock-based incentive compensation (“awards”) to both our eligible employees and non-employee directors. Awards that may be granted under the program include non-qualified and incentive stock options, restricted stock units (“RSU”s), performance-based restricted stock units (“PRSU”s), restricted stock awards, stock appreciation rights, and stock bonus awards. To date, awards granted under the program consist of stock options, RSUs and PRSUs. The majority of stock-based awards granted under the program vest over four years. Stock options granted under the program have a maximum contractual term of ten years. | ||||||||||||||
We settle employee stock option exercises, Employee Stock Purchase Plan ("ESPP") purchases, and the vesting of RSUs and PRSUs with newly issued common shares. | ||||||||||||||
We have issued PRSUs to senior executives with vesting that is contingent on both market performance and continued service ("market-based PRSUs"). For market-based PRSUs issued in 2012, 2013, and 2014, the number of shares of Altera stock to be received at vesting will range from 0% to 200% of the target amount based on the percentage by which our total shareholder return ("TSR") exceeds or falls below the Philadelphia Semiconductor Index ("SOX") TSR during a 3-year measurement period. We estimate the fair value of market-based PRSUs using a Monte Carlo simulation model on the date of grant. The model incorporates assumptions for the risk-free interest rate, Altera and SOX price volatility, the correlation between Altera and the SOX index, and dividend yields. Compensation expense is recognized ratably over the 3-year measurement period. | ||||||||||||||
Stock-based compensation expense included in our consolidated statements of comprehensive income was as follows: | ||||||||||||||
Three Months Ended | ||||||||||||||
(In thousands) | March 27, | March 28, | ||||||||||||
2015 | 2014 | |||||||||||||
Cost of sales | $ | 407 | $ | 467 | ||||||||||
Research and development expense | 8,943 | 10,273 | ||||||||||||
Selling, general, and administrative expense | 10,975 | 12,607 | ||||||||||||
Pre-tax stock-based compensation expense | 20,325 | 23,347 | ||||||||||||
Less: income tax benefit | (5,621 | ) | (6,194 | ) | ||||||||||
Net stock-based compensation expense | $ | 14,704 | $ | 17,153 | ||||||||||
No stock-based compensation was capitalized during any period presented above. As of March 27, 2015, unrecognized stock-based compensation cost related to outstanding unvested stock options, RSUs, PRSUs and ESPP shares that are expected to vest was approximately $103.3 million. This unrecognized stock-based compensation cost is expected to be recognized over a weighted average period of approximately 2.0 years. We apply an expected forfeiture rate when amortizing stock-based compensation expense. To the extent our actual forfeiture rate is different from our estimate, stock-based compensation related to these awards will be different from our expectations. | ||||||||||||||
The assumptions used to estimate the fair value of the RSU awards granted under our stock-based compensation plans were as follows: | ||||||||||||||
Three Months Ended | ||||||||||||||
March 27, | March 28, | |||||||||||||
2015 | 2014 | |||||||||||||
RSUs: | ||||||||||||||
Risk-free interest rate | 0.7 | % | 0.6 | % | ||||||||||
Dividend yield | 2.1 | % | 1.9 | % | ||||||||||
Weighted-average estimated fair value | $ | 32.2 | $ | 30.4 | ||||||||||
We granted 303,260, 262,647 and 66,489 market-based PRSUs in 2014, 2013 and 2012, respectively, to senior executives. As of March 27, 2015, the majority of these market-based PRSUs were still outstanding, and no market-based PRSUs had vested. For market-based PRSU grants made on May 13, 2014, May 5, 2014, May 6, 2013 and July 30, 2012, the weighted average grant date fair value was $31.13, $31.23, $33.03 and $41.18, respectively. | ||||||||||||||
A summary of activity for our RSUs and PRSUs for the three months ended March 27, 2015 and information regarding RSUs and PRSUs outstanding and expected to vest as of March 27, 2015 is as follows: | ||||||||||||||
(In thousands, except per share | Number of Shares | Weighted-Average Grant-Date Fair Market Value Per Share | Weighted-Average Remaining Contractual | Aggregate Intrinsic Value (1) | ||||||||||
amounts and terms) | Term (in Years) | |||||||||||||
Outstanding, December 31, 2014 | 5,506 | $ | 34 | |||||||||||
Grants | 92 | $ | 34 | |||||||||||
Vested | (222 | ) | $ | 38.94 | ||||||||||
Forfeited/Cancelled | (79 | ) | $ | 33.88 | ||||||||||
Outstanding, March 27, 2015 | 5,297 | $ | 33.8 | 1.2 | $ | 235,136 | ||||||||
Vested and expected to vest, March 27, 2015 | 4,792 | $ | 33.8 | 1.2 | $ | 212,699 | ||||||||
-1 | Aggregate intrinsic value represents the closing price per share of our stock on March 27, 2015, multiplied by the number of RSUs and market-based PRSUs outstanding or vested and expected to vest as of March 27, 2015. | |||||||||||||
A summary of stock option activity for the three months ended March 27, 2015 and information regarding stock options outstanding, exercisable, and vested and expected to vest as of March 27, 2015 is as follows: | ||||||||||||||
(In thousands, except per share | Number of Shares | Weighted-Average Exercise Price Per Share | Weighted-Average Remaining Contractual | Aggregate Intrinsic Value (1) | ||||||||||
amounts and terms) | Term (in Years) | |||||||||||||
Outstanding, December 31, 2014 | 2,074 | $ | 32.6 | |||||||||||
Grants | — | $ | — | |||||||||||
Exercises | (104 | ) | $ | 20.4 | ||||||||||
Forfeited/Cancelled/Expired | (17 | ) | $ | 32.37 | ||||||||||
Outstanding, March 27, 2015 | 1,953 | $ | 33.26 | 5.1 | $ | 21,741 | ||||||||
Exercisable, March 27, 2015 | 1,524 | $ | 32.75 | 4.6 | $ | 17,732 | ||||||||
Vested and expected to vest, March 27, 2015 | 1,931 | $ | 33.25 | 5.1 | $ | 21,518 | ||||||||
-1 | For those stock options with an exercise price below the closing price per share on March 27, 2015, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on March 27, 2015, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of March 27, 2015. | |||||||||||||
For the three months ended March 27, 2015, 0.1 million non-qualified stock option shares were exercised. The total intrinsic value of stock options exercised for the three months ended March 27, 2015 was $1.7 million. The aggregate intrinsic value represents the difference between the exercise price and the selling price received by option holders upon the exercise of stock options during the period. The total consideration recorded as a result of stock option exercises during the three months ended March 27, 2015 was $2.1 million. | ||||||||||||||
As of March 27, 2015, our 2005 Equity Incentive Plan had a total of 25.7 million shares reserved for future issuance, of which 17.8 million shares were available for future grants. | ||||||||||||||
ESPP | ||||||||||||||
Our ESPP has two consecutive, overlapping twelve-month offering periods, with a new period commencing on the first trading day on or after May 1 and November 1 of each year and terminating on the last trading day on or before April 30 and October 31. Each twelve-month offering period generally includes two six-month purchase periods. The purchase price at which shares are sold under the ESPP is 85% of the lower of the fair market value of a share of our common stock on (1) the first day of the offering period, or (2) the last trading day of the purchase period. If the fair market value at the end of any purchase period is less than the fair market value at the beginning of the offering period, each participant is automatically withdrawn from the current offering period following the purchase of shares on the purchase date and is automatically re-enrolled in the immediately following offering period. | ||||||||||||||
There were no shares sold to employees under the ESPP during the three months ended March 27, 2015 or March 28, 2014. As of March 27, 2015, 3.4 million shares were available for future issuance under the ESPP. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Mar. 27, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity |
We repurchase shares under our stock repurchase program announced on July 15, 1996, which has no specified expiration. No existing repurchase plans or programs have expired, nor have we decided to terminate any repurchase plans or programs prior to expiration. There were 233.0 million shares authorized for repurchase with approximately 16.0 million shares remaining for further repurchases under our stock repurchase program as of March 27, 2015. Since the inception of the stock repurchase program through March 27, 2015, we have repurchased a total of 217.0 million shares of our common stock for an aggregate cost of $5.0 billion. | |
During the three months ended March 27, 2015, we repurchased 1.6 million shares of our common stock for a total of $57.5 million under our stock repurchase program at an average price per share of $34.95. During the three months ended March 28, 2014, we repurchased 4.6 million shares of our common stock for a total of $161.8 million under our stock repurchase program at an average price per share of $35.16. All shares were retired upon acquisition and have been recorded as a reduction of Common stock, Capital in excess of par value and Retained earnings, as applicable. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
We file income tax returns with the IRS and in various U.S. states and foreign jurisdictions. On December 8, 2011 and January 23, 2012, the IRS issued Statutory Notices of Deficiency (the “Notices”) determining, respectively, additional taxes for 2002 through 2004 of $19.8 million and additional taxes for 2005 through 2007 of $21.4 million, excluding interest. The IRS’s determinations relate primarily to inter-company transactions, computational adjustments to the R&D credit and reductions to the benefits of tax credit carry backs and carry forwards. We deposited $18.0 million as a cash bond with the IRS in 2008, and converted this amount to tax payments in March 2012. On March 6, 2012 and April 20, 2012, we filed petitions challenging the Notices in the U.S. Tax Court. The petitions request redetermination of the deficiencies produced by the IRS’s adjustments. The IRS has filed responses to our petitions, in which the IRS conceded the R&D credit adjustment for 2004. The Tax Court has consolidated the two cases and a judge has been assigned. The federal statute of limitations for the 2002 and 2003 tax years has expired, and the ongoing Tax Court litigation concerns only the 2004 through 2007 years. | |
On January 31, 2013, the IRS conceded one of the adjustments at issue in the litigation for the 2004 through 2007 tax years. The conceded adjustment related to certain inter-company services transactions. The concession only impacted our 2007 tax year. As a result of this concession, we recognized a tax and interest benefit of $6.8 million in 2013 due to the release of certain tax reserves. Altera and the IRS have filed cross motions for partial summary judgment on the largest adjustment still at issue, which is related to the treatment of stock-based compensation in an inter-company cost-sharing transaction. As part of the partial motion for summary judgment process, both sides filed briefs on May 28, 2013, July 25, 2013 and September 9, 2013. We expect to present additional legal arguments related to certain affirmative adjustments raised by Altera in the litigation. The parties have filed a series of Joint Status Reports with the court addressing these affirmative adjustments. The parties presented oral arguments on the partial summary judgment issue to the Tax Court on July 24, 2014 and we are awaiting a ruling. We believe we have made adequate tax payments or accrued adequate amounts for our tax liabilities for 2004 through 2007 and that the outcome of the above matters will not have a material adverse effect on our consolidated operating results or financial position. | |
On April 19, 2013, the IRS notified us that we would be audited for each of the 2010 and 2011 tax years. We believe we have made adequate tax payments or accrued adequate amounts for our tax liabilities for 2010 and 2011 and that the outcome of the audit will not have a material adverse effect on our consolidated operating results or financial position. | |
Other significant jurisdictions in which we are or may be subject to examination for fiscal years 2002 forward include China (including Hong Kong), Denmark, Ireland, Malaysia, Japan, Canada, United Kingdom and the state of California. We believe we have made adequate tax payments and/or accrued adequate amounts such that the outcome of these audits will have no material adverse effect on our consolidated operating results. Due to the potential resolution of various tax examinations, and the expiration of various statutes of limitations, it is possible that our gross unrecognized tax benefits may change within the next twelve months. However, given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of potential adjustments to the balance of gross unrecognized tax benefits. | |
Our effective tax rate reflects the impact of a significant amount of our earnings being taxed in foreign jurisdictions at rates substantially below the U.S. statutory tax rate of 35%. The fluctuations in our effective tax rate in a given year are also impacted by the recognition of net tax benefits associated with the reversal of unrecognized tax benefits and related interest resulting from the expiration of statutes of limitations in federal and foreign jurisdictions and the resolution of certain issues with the IRS. Our effective tax rate for the three months ended March 27, 2015 was 6.7% compared with 10.5% for the three months ended March 28, 2014. The decrease in our effective tax rate was primarily due to higher one-time tax benefits in 2015 compared with the same period in 2014. During the three months ended March 27, 2015, we recognized a net benefit of $7.1 million related to foreign tax credits earned in excess of a foreign dividend. During the three months ended March 28, 2014, we reversed $4.0 million of liabilities and the related interest for uncertain tax positions upon the expiration of domestic statutes of limitation, which was offset by $0.9 million of true-up adjustments resulting from the filing of tax returns in foreign jurisdictions. | |
As of March 27, 2015, we had total gross unrecognized tax benefits of $348.9 million which, if recognized, would potentially impact our effective tax rate. On December 31, 2014, we had total gross unrecognized tax benefits of $341.1 million. We are unable to make a reasonable estimate as to if and when cash settlements with the relevant taxing authorities may occur. | |
We recognize interest and penalties related to uncertain tax positions in our income tax provision. We have accrued approximately $47.3 million and $45.8 million for interest and penalties related to uncertain tax positions as of March 27, 2015 and December 31, 2014, respectively. | |
During the fourth quarter of fiscal 2013, we recorded a deferred charge for the deferral of income tax expense on intercompany profits that resulted from the sale of our newly acquired intellectual property rights from one of our U.S. subsidiaries to one of our foreign subsidiaries. The deferred charge is included in Other current assets and Other assets, net on our consolidated balance sheets. As of March 27, 2015, the deferred charge balance in Other current assets was $2.2 million, and $16.4 million in Other assets, net. The deferred charge will be amortized on a straight-line basis as a component of income tax expense over ten years, based on the economic life of the intellectual property and is not expected to have a material impact on our effective tax rate. | |
In connection with one of our acquisitions in 2013, we are indemnified by the selling company for certain potential tax obligations arising prior to the acquisition. We have recognized a tax indemnification receivable of $6.5 million in Other assets, net on our consolidated balance sheets. We do not expect any significant effect on earnings or cash flows related to these potential tax obligations. |
NonQualified_Deferred_Compensa
Non-Qualified Deferred Compensation Plan | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Non Qualified Deferred Compensation Plan [Abstract] | |||||||||
Non-Qualified Deferred Compensation Plan | Non-Qualified Deferred Compensation Plan | ||||||||
We allow our U.S.-based officers and director-level employees to defer a portion of their compensation under the Altera Corporation Non-Qualified Deferred Compensation Plan (the “NQDC Plan”). Our Retirement Plans Committee administers the NQDC Plan. As of March 27, 2015, there were 122 participants in the NQDC Plan who self-direct their investments, subject to certain limitations. In the event we become insolvent, the NQDC Plan assets are subject to the claims of our general creditors. Since the inception of the NQDC Plan, we have not made any contributions to the NQDC Plan, and we have no commitments to do so in the future. There are no NQDC Plan provisions that provide for any guarantees or minimum return on investments. NQDC Plan participants are prohibited from investing NQDC Plan contributions in Altera common stock. The balance of the NQDC Plan assets and related obligations was $85.3 million and $83.8 million as of March 27, 2015 and December 31, 2014, respectively. | |||||||||
Investment income or loss from the NQDC Plan are recorded as Gain on deferred compensation plan securities in our consolidated statements of comprehensive income. The investment (gain)/loss also represents an (increase)/decrease in the future payout to participants and is recorded as Compensation expense — deferred compensation plan in our consolidated statements of comprehensive income. Compensation expense/(benefit) associated with our NQDC Plan obligations is offset by the (gain)/loss from the related securities. The net effect of investment income or loss and related compensation expense or benefit has no impact on our income before income taxes, net income or cash balances. | |||||||||
The following tables summarize the fair value of our NQDC Plan assets by significant investment category: | |||||||||
(In thousands) | March 27, 2015 | December 31, 2014 | |||||||
Deferred compensation plan assets: (1) | |||||||||
Level 1: | |||||||||
Restricted cash equivalents | $ | 20,226 | $ | 14,412 | |||||
Equity securities | 30,314 | 33,521 | |||||||
Mutual funds | 32,881 | 33,764 | |||||||
Subtotal | 83,421 | 81,697 | |||||||
Level 2: | |||||||||
Fixed income securities | 1,880 | 2,082 | |||||||
Total | $ | 85,301 | $ | 83,779 | |||||
(1) Included in Deferred compensation plan—marketable securities and Deferred compensation plan—restricted cash equivalents in the accompanying consolidated balance sheets as of March 27, 2015 and December 31, 2014. |
Declaration_of_Dividend_Subseq
Declaration of Dividend Subsequent to March 27, 2015 | 3 Months Ended |
Mar. 27, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Declaration of Dividend Subsequent to March 27, 2015 |
On April 20, 2015, our board of directors declared a cash dividend of $0.18 per common share payable on June 1, 2015 to stockholders of record on May 11, 2015. |
AcquisitionRelated_Intangible_1
Acquisition-Related Intangible Assets, Net (Tables) | 3 Months Ended | ||||||||||||||
Mar. 27, 2015 | |||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||
Schedule of Acquired Intangible Asset by Major Class | Acquisition-related intangible assets, net were as follows: | ||||||||||||||
March 27, 2015 | |||||||||||||||
(In thousands) | Gross Assets | Accumulated Amortization | Net | Weighted-Average Amortization Period | |||||||||||
Developed technology | $ | 67,670 | $ | (13,398 | ) | $ | 54,272 | 9.4 years | |||||||
Customer relationships | 12,910 | (3,967 | ) | 8,943 | 6.8 years | ||||||||||
Trade name | 3,700 | (774 | ) | 2,926 | 8.9 years | ||||||||||
Non-competition agreements | 700 | (650 | ) | 50 | 2.0 years | ||||||||||
Other intangible assets | 930 | (794 | ) | 136 | 1.2 years | ||||||||||
Acquisition-related intangible assets, net subject to amortization | 85,910 | (19,583 | ) | 66,327 | |||||||||||
In-process research & development | 3,500 | — | 3,500 | ||||||||||||
Total acquisition-related intangible assets, net | $ | 89,410 | $ | (19,583 | ) | $ | 69,827 | ||||||||
December 31, 2014 | |||||||||||||||
(In thousands) | Gross Assets | Accumulated Amortization | Net | Weighted-Average Amortization Period | |||||||||||
Developed technology | $ | 67,670 | $ | (11,607 | ) | $ | 56,063 | 9.4 years | |||||||
Customer relationships | 12,910 | (3,493 | ) | 9,417 | 6.8 years | ||||||||||
Trade name | 3,700 | (670 | ) | 3,030 | 8.9 years | ||||||||||
Non-competition agreements | 700 | (563 | ) | 137 | 2.0 years | ||||||||||
Other intangible assets | 930 | (786 | ) | 144 | 1.2 years | ||||||||||
Acquisition-related intangible assets subject to amortization, net | 85,910 | (17,119 | ) | 68,791 | |||||||||||
In-process research & development | 3,500 | — | 3,500 | ||||||||||||
Total acquisition-related intangible assets, net | $ | 89,410 | $ | (17,119 | ) | $ | 72,291 | ||||||||
Acquisition-Related Intangible Assets Amortization Schedule | Based on the carrying value of Acquisition-related intangible assets, net as of March 27, 2015, the annual amortization expense for Acquisition-related intangible assets, net is expected to be as follows: | ||||||||||||||
Fiscal Year | Amortization Expense | ||||||||||||||
(In thousands) | |||||||||||||||
2015 (remaining nine months) | $ | 7,182 | |||||||||||||
2016 | 9,327 | ||||||||||||||
2017 | 9,151 | ||||||||||||||
2018 | 9,039 | ||||||||||||||
2019 | 8,938 | ||||||||||||||
2020 and Thereafter | 22,690 | ||||||||||||||
Total | $ | 66,327 | |||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 27, 2015 | |||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||
Schedule of Cash and Available-for-sale Securities by Significant Investment Category | The following tables summarize our cash and available-for-sale securities by significant investment category. | ||||||||||||||||||||||||||||
March 27, 2015 | |||||||||||||||||||||||||||||
(In thousands) | Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
Cash | $ | 67,652 | $ | — | $ | — | $ | 67,652 | $ | 67,652 | $ | — | $ | — | |||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 2,133,747 | — | — | 2,133,747 | 2,133,747 | — | — | ||||||||||||||||||||||
U.S. treasury securities | 1,085,784 | 20,551 | (101 | ) | 1,106,234 | 5,702 | 44,690 | 1,055,842 | |||||||||||||||||||||
Subtotal | 3,219,531 | 20,551 | (101 | ) | 3,239,981 | 2,139,449 | 44,690 | 1,055,842 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
U.S. agency securities | 22,236 | 19 | — | 22,255 | — | 9,795 | 12,460 | ||||||||||||||||||||||
Non-U.S. government securities | 41,819 | 29 | (15 | ) | 41,833 | — | 11,926 | 29,907 | |||||||||||||||||||||
Municipal bonds | 2,000 | 3 | — | 2,003 | — | 2,003 | — | ||||||||||||||||||||||
Corporate debt securities | 1,138,545 | 4,039 | (548 | ) | 1,142,036 | — | 100,435 | 1,041,601 | |||||||||||||||||||||
Subtotal | 1,204,600 | 4,090 | (563 | ) | 1,208,127 | — | 124,159 | 1,083,968 | |||||||||||||||||||||
Total | $ | 4,491,783 | $ | 24,641 | $ | (664 | ) | $ | 4,515,760 | $ | 2,207,101 | $ | 168,849 | $ | 2,139,810 | ||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(In thousands) | Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
Cash | $ | 57,505 | $ | — | $ | — | $ | 57,505 | $ | 57,505 | $ | — | $ | — | |||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 2,366,799 | — | — | 2,366,799 | 2,366,799 | — | — | ||||||||||||||||||||||
U.S. treasury securities | 1,338,162 | 12,721 | (2,302 | ) | 1,348,581 | 500 | 38,938 | 1,309,143 | |||||||||||||||||||||
Subtotal | 3,704,961 | 12,721 | (2,302 | ) | 3,715,380 | 2,367,299 | 38,938 | 1,309,143 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
U.S. agency securities | 21,186 | 12 | (7 | ) | 21,191 | — | 11,748 | 9,443 | |||||||||||||||||||||
Non-U.S. government securities | 31,281 | 2 | (17 | ) | 31,266 | — | 19,459 | 11,807 | |||||||||||||||||||||
Municipal bonds | 2,000 | 2 | — | 2,002 | — | 1,001 | 1,001 | ||||||||||||||||||||||
Corporate debt securities | 693,638 | 362 | (1,115 | ) | 692,885 | 1,563 | 80,373 | 610,949 | |||||||||||||||||||||
Subtotal | 748,105 | 378 | (1,139 | ) | 747,344 | 1,563 | 112,581 | 633,200 | |||||||||||||||||||||
Total | $ | 4,510,571 | $ | 13,099 | $ | (3,441 | ) | $ | 4,520,229 | $ | 2,426,367 | $ | 151,519 | $ | 1,942,343 | ||||||||||||||
Schedule of Investments Classified by Contractual Maturity Date | The adjusted cost and estimated fair value of marketable debt securities (corporate debt securities, municipal bonds, U.S. and foreign government securities, and U.S. treasury securities) as of March 27, 2015, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. | ||||||||||||||||||||||||||||
March 27, 2015 | |||||||||||||||||||||||||||||
(In thousands) | Cost | Estimated Fair Value | |||||||||||||||||||||||||||
Due in one year or less | $ | 174,432 | $ | 174,551 | |||||||||||||||||||||||||
Due after one year through five years | 1,712,133 | 1,717,868 | |||||||||||||||||||||||||||
Due between six and ten years | 403,819 | 421,942 | |||||||||||||||||||||||||||
$ | 2,290,384 | $ | 2,314,361 | ||||||||||||||||||||||||||
Accounts_Receivable_Net_and_Si1
Accounts Receivable, Net and Significant Customers (Tables) | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||
Schedule of Accounts Receivable, Net | Accounts receivable, net consisted of the following: | ||||||||
(In thousands) | March 27, | December 31, | |||||||
2015 | 2014 | ||||||||
Gross accounts receivable | $ | 434,190 | $ | 380,442 | |||||
Allowance for doubtful accounts | (500 | ) | (500 | ) | |||||
Allowance for sales returns | — | (1,978 | ) | ||||||
Accounts receivable, net | $ | 433,690 | $ | 377,964 | |||||
Schedule of Net Sales by Customer Type and Net Sales to Significant Customers | We sell our products to original equipment manufacturers ("OEMs") and to electronic components distributors who resell these products to OEMs, or their contract manufacturers. Net sales by customer type and net sales to significant customers were as follows: | ||||||||
Three Months Ended | |||||||||
(Percentage of Net Sales) | March 27, | March 28, | |||||||
2015 | 2014 | ||||||||
Sales to distributors | 73 | % | 74 | % | |||||
Sales to OEMs | 27 | % | 26 | % | |||||
100 | % | 100 | % | ||||||
Significant Distributors(1): | |||||||||
Arrow Electronics, Inc. ( “Arrow”) | 41 | % | 38 | % | |||||
Macnica, Inc. (“Macnica”) | 20 | % | 24 | % | |||||
-1 | Except as presented above, no other distributor accounted for greater than 10% of our net sales for the three months ended March 27, 2015 or March 28, 2014. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory | Inventories consisted of the following: | ||||||||
(In thousands) | March 27, | December 31, | |||||||
2015 | 2014 | ||||||||
Raw materials | $ | 6,342 | $ | 6,826 | |||||
Work in process | 107,653 | 95,675 | |||||||
Finished goods | 41,358 | 50,886 | |||||||
Total inventories | $ | 155,353 | $ | 153,387 | |||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following: | ||||||||
(In thousands) | March 27, | December 31, | |||||||
2015 | 2014 | ||||||||
Land and land rights | $ | 23,157 | $ | 23,157 | |||||
Buildings | 161,096 | 161,070 | |||||||
Equipment and software | 317,240 | 298,069 | |||||||
Office furniture and fixtures | 24,686 | 24,601 | |||||||
Leasehold improvements | 13,015 | 12,800 | |||||||
Construction in progress | 1,806 | 9,597 | |||||||
Property and equipment, at cost | 541,000 | 529,294 | |||||||
Accumulated depreciation | (325,691 | ) | (334,454 | ) | |||||
Property and equipment, net | $ | 215,309 | $ | 194,840 | |||||
Deferred_Income_and_Allowances1
Deferred Income and Allowances on Sales to Distributors (Tables) | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Deferred Revenue Disclosure [Abstract] | |||||||||
Schedule of Deferred Income and Allowances on Sales to Distributors | Deferred income and allowances on sales to distributors consisted of the following: | ||||||||
(In thousands) | March 27, | December 31, | |||||||
2015 | 2014 | ||||||||
Deferred revenue on shipment to distributors | $ | 440,453 | $ | 369,560 | |||||
Deferred cost of sales on shipment to distributors | (35,479 | ) | (32,172 | ) | |||||
Deferred income on shipment to distributors | 404,974 | 337,388 | |||||||
Other deferred revenue (1) | 6,584 | 6,780 | |||||||
Total | $ | 411,558 | $ | 344,168 | |||||
(1) Principally represents revenue deferred on our maintenance contracts, software and intellectual property licenses. | |||||||||
Schedule of Deferred Income and Allowances on Sales to Distributors Activity | The Deferred income and allowances on sales to distributors activity was as follows: | ||||||||
Three Months Ended | |||||||||
(In thousands) | March 27, | March 28, | |||||||
2015 | 2014 | ||||||||
Balance at beginning of period | $ | 344,168 | $ | 487,746 | |||||
Deferred revenue recognized upon shipment to distributors | 1,478,292 | 1,354,597 | |||||||
Deferred cost of sales recognized upon shipment to distributors | (70,524 | ) | (66,527 | ) | |||||
Revenue recognized upon sell-through to end customers | (249,284 | ) | (277,671 | ) | |||||
Cost of sales recognized upon sell-through to end customers | 66,651 | 66,733 | |||||||
Earned distributor price concessions (1) | (1,147,370 | ) | (1,137,745 | ) | |||||
Returns | (10,198 | ) | (11,163 | ) | |||||
Other | (177 | ) | (1,451 | ) | |||||
Balance at end of period | $ | 411,558 | $ | 414,519 | |||||
-1 | Average aggregate price concessions typically range from 70% to 85% of our list price on an annual basis, depending upon the composition of our sales, volumes and factors associated with timing of shipments to distributors. |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Basic and Diluted Net Income Per Share | A reconciliation of basic and diluted Net income per share is presented below: | ||||||||
Three Months Ended | |||||||||
(In thousands, except per share amounts) | March 27, | March 28, | |||||||
2015 | 2014 | ||||||||
Basic: | |||||||||
Net income | $ | 94,852 | $ | 116,514 | |||||
Basic weighted shares outstanding | 301,308 | 316,552 | |||||||
Net income per share | $ | 0.31 | $ | 0.37 | |||||
Diluted: | |||||||||
Net income | $ | 94,852 | $ | 116,514 | |||||
Weighted shares outstanding | 301,308 | 316,552 | |||||||
Effect of dilutive securities: | |||||||||
Stock options, employee stock purchase plan, and restricted stock unit shares | 1,977 | 2,349 | |||||||
Diluted weighted shares outstanding | 303,285 | 318,901 | |||||||
Net income per share | $ | 0.31 | $ | 0.37 | |||||
Credit_Facility_and_LongTerm_D1
Credit Facility and Long-Term Debt (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 27, 2015 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The carrying values and associated effective interest rates for our Long-term debt were as follows: | |||||||||||||||||||||||
(In thousands, except rates) | Effective Interest Rate | March 27, 2015 | December 31, 2014 | |||||||||||||||||||||
2013 Senior Notes due November 15, 2018 at 2.50% | 2.71% | $ | 597,717 | $ | 597,557 | |||||||||||||||||||
2013 Senior Notes due November 15, 2023 at 4.10% | 4.29% | 395,684 | 395,559 | |||||||||||||||||||||
2012 Senior Notes due May 15, 2017 at 1.75% | 1.94% | 499,681 | 499,643 | |||||||||||||||||||||
Total long-term debt | $ | 1,493,082 | $ | 1,492,759 | ||||||||||||||||||||
Schedule of Carrying Values of Debt Instruments | The carrying values of the Notes are reflected in our consolidated balance sheets as follows: | |||||||||||||||||||||||
2.50% Notes | 4.10% Notes | 1.75% Notes | ||||||||||||||||||||||
(In thousands) | March 27, 2015 | December 31, 2014 | March 27, 2015 | December 31, 2014 | March 27, 2015 | December 31, 2014 | ||||||||||||||||||
Principal amount | $ | 600,000 | $ | 600,000 | $ | 400,000 | $ | 400,000 | $ | 500,000 | $ | 500,000 | ||||||||||||
Unamortized discount | (2,283 | ) | (2,443 | ) | (4,316 | ) | (4,441 | ) | (319 | ) | (357 | ) | ||||||||||||
Net carrying value | $ | 597,717 | $ | 597,557 | $ | 395,684 | $ | 395,559 | $ | 499,681 | $ | 499,643 | ||||||||||||
Schedule of Interest Costs, Debt | Interest expense related to the Notes was included in Interest expense in the consolidated statements of comprehensive income as follows: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
(In thousands) | 27-Mar-15 | 28-Mar-14 | ||||||||||||||||||||||
Contractual coupon interest | $ | 9,538 | $ | 9,652 | ||||||||||||||||||||
Amortization of debt issuance costs | 456 | 456 | ||||||||||||||||||||||
Amortization of debt discount | 323 | 323 | ||||||||||||||||||||||
Total interest expense related to the Notes | $ | 10,317 | $ | 10,431 | ||||||||||||||||||||
Schedule of Maturities of Long-term Debt | As of March 27, 2015, future principal payments for the Notes were as follows: | |||||||||||||||||||||||
Fiscal Year | Payable | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
2015 (remaining nine months) | $ | — | ||||||||||||||||||||||
2016 | — | |||||||||||||||||||||||
2017 | 500,000 | |||||||||||||||||||||||
2018 | 600,000 | |||||||||||||||||||||||
2019 | — | |||||||||||||||||||||||
2020 and after | 400,000 | |||||||||||||||||||||||
Total | $ | 1,500,000 | ||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The estimated fair value of the Notes is as follows: | |||||||||||||||||||||||
2.50% Notes | 4.10% Notes | 1.75% Notes | ||||||||||||||||||||||
(In thousands) | 27-Mar-15 | 31-Dec-14 | 27-Mar-15 | 31-Dec-14 | 27-Mar-15 | 31-Dec-14 | ||||||||||||||||||
Estimated fair value | $ | 613,746 | $ | 606,564 | $ | 427,112 | $ | 417,480 | $ | 503,655 | $ | 501,460 | ||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||||||||
Mar. 27, 2015 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of Compensation Expense Included in the Consolidated Statements of Comprehensive Income | Stock-based compensation expense included in our consolidated statements of comprehensive income was as follows: | |||||||||||||
Three Months Ended | ||||||||||||||
(In thousands) | March 27, | March 28, | ||||||||||||
2015 | 2014 | |||||||||||||
Cost of sales | $ | 407 | $ | 467 | ||||||||||
Research and development expense | 8,943 | 10,273 | ||||||||||||
Selling, general, and administrative expense | 10,975 | 12,607 | ||||||||||||
Pre-tax stock-based compensation expense | 20,325 | 23,347 | ||||||||||||
Less: income tax benefit | (5,621 | ) | (6,194 | ) | ||||||||||
Net stock-based compensation expense | $ | 14,704 | $ | 17,153 | ||||||||||
Schedule of Assumptions Used to Estimate Fair Value of RSUs | The assumptions used to estimate the fair value of the RSU awards granted under our stock-based compensation plans were as follows: | |||||||||||||
Three Months Ended | ||||||||||||||
March 27, | March 28, | |||||||||||||
2015 | 2014 | |||||||||||||
RSUs: | ||||||||||||||
Risk-free interest rate | 0.7 | % | 0.6 | % | ||||||||||
Dividend yield | 2.1 | % | 1.9 | % | ||||||||||
Weighted-average estimated fair value | $ | 32.2 | $ | 30.4 | ||||||||||
Summary of Activity for Restricted Stock Units and Performance Based Restricted Stock Units | A summary of activity for our RSUs and PRSUs for the three months ended March 27, 2015 and information regarding RSUs and PRSUs outstanding and expected to vest as of March 27, 2015 is as follows: | |||||||||||||
(In thousands, except per share | Number of Shares | Weighted-Average Grant-Date Fair Market Value Per Share | Weighted-Average Remaining Contractual | Aggregate Intrinsic Value (1) | ||||||||||
amounts and terms) | Term (in Years) | |||||||||||||
Outstanding, December 31, 2014 | 5,506 | $ | 34 | |||||||||||
Grants | 92 | $ | 34 | |||||||||||
Vested | (222 | ) | $ | 38.94 | ||||||||||
Forfeited/Cancelled | (79 | ) | $ | 33.88 | ||||||||||
Outstanding, March 27, 2015 | 5,297 | $ | 33.8 | 1.2 | $ | 235,136 | ||||||||
Vested and expected to vest, March 27, 2015 | 4,792 | $ | 33.8 | 1.2 | $ | 212,699 | ||||||||
-1 | Aggregate intrinsic value represents the closing price per share of our stock on March 27, 2015, multiplied by the number of RSUs and market-based PRSUs outstanding or vested and expected to vest as of March 27, 2015. | |||||||||||||
Summary of Stock Option Activity | A summary of stock option activity for the three months ended March 27, 2015 and information regarding stock options outstanding, exercisable, and vested and expected to vest as of March 27, 2015 is as follows: | |||||||||||||
(In thousands, except per share | Number of Shares | Weighted-Average Exercise Price Per Share | Weighted-Average Remaining Contractual | Aggregate Intrinsic Value (1) | ||||||||||
amounts and terms) | Term (in Years) | |||||||||||||
Outstanding, December 31, 2014 | 2,074 | $ | 32.6 | |||||||||||
Grants | — | $ | — | |||||||||||
Exercises | (104 | ) | $ | 20.4 | ||||||||||
Forfeited/Cancelled/Expired | (17 | ) | $ | 32.37 | ||||||||||
Outstanding, March 27, 2015 | 1,953 | $ | 33.26 | 5.1 | $ | 21,741 | ||||||||
Exercisable, March 27, 2015 | 1,524 | $ | 32.75 | 4.6 | $ | 17,732 | ||||||||
Vested and expected to vest, March 27, 2015 | 1,931 | $ | 33.25 | 5.1 | $ | 21,518 | ||||||||
-1 | For those stock options with an exercise price below the closing price per share on March 27, 2015, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on March 27, 2015, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of March 27, 2015. |
NonQualified_Deferred_Compensa1
Non-Qualified Deferred Compensation Plan (Tables) | 3 Months Ended | ||||||||
Mar. 27, 2015 | |||||||||
Non Qualified Deferred Compensation Plan [Abstract] | |||||||||
Schedule of NQDC Plan Assets by Significant Investment Category | The following tables summarize the fair value of our NQDC Plan assets by significant investment category: | ||||||||
(In thousands) | March 27, 2015 | December 31, 2014 | |||||||
Deferred compensation plan assets: (1) | |||||||||
Level 1: | |||||||||
Restricted cash equivalents | $ | 20,226 | $ | 14,412 | |||||
Equity securities | 30,314 | 33,521 | |||||||
Mutual funds | 32,881 | 33,764 | |||||||
Subtotal | 83,421 | 81,697 | |||||||
Level 2: | |||||||||
Fixed income securities | 1,880 | 2,082 | |||||||
Total | $ | 85,301 | $ | 83,779 | |||||
(1) Included in Deferred compensation plan—marketable securities and Deferred compensation plan—restricted cash equivalents in the accompanying consolidated balance sheets as of March 27, 2015 and December 31, 2014. |
AcquisitionRelated_Intangible_2
Acquisition-Related Intangible Assets, Net (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 27, 2015 | Dec. 31, 2014 | 21-May-13 |
Schedule of Acquired Intangible Asset by Major Class [Line Items] | |||
Acquired Finite-Lived Intangible Assets, Gross | $85,910 | $85,910 | |
Acquired Finite-Lived Intangible Assets, Accumulated Amortization | -19,583 | -17,119 | |
Acquired Finite-Lived Intangible Assets, Net | 66,327 | 68,791 | |
Acquisition-related Intangible Assets, Gross | 89,410 | 89,410 | |
Acquisition-related Intangible Assets, Net | 69,827 | 72,291 | |
In Process Research and Development [Member] | |||
Schedule of Acquired Intangible Asset by Major Class [Line Items] | |||
Acquired Indefinite-Lived Intangible Assets (Excluding Goodwill) | 3,500 | 3,500 | 28,100 |
Developed Technology Rights [Member] | |||
Schedule of Acquired Intangible Asset by Major Class [Line Items] | |||
Acquired Finite-Lived Intangible Assets, Gross | 67,670 | 67,670 | |
Acquired Finite-Lived Intangible Assets, Accumulated Amortization | -13,398 | -11,607 | |
Acquired Finite-Lived Intangible Assets, Net | 54,272 | 56,063 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years 4 months 24 days | 9 years 4 months 24 days | |
Customer Relationships [Member] | |||
Schedule of Acquired Intangible Asset by Major Class [Line Items] | |||
Acquired Finite-Lived Intangible Assets, Gross | 12,910 | 12,910 | |
Acquired Finite-Lived Intangible Assets, Accumulated Amortization | -3,967 | -3,493 | |
Acquired Finite-Lived Intangible Assets, Net | 8,943 | 9,417 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 9 months 18 days | 6 years 9 months 18 days | |
Trade Names [Member] | |||
Schedule of Acquired Intangible Asset by Major Class [Line Items] | |||
Acquired Finite-Lived Intangible Assets, Gross | 3,700 | 3,700 | |
Acquired Finite-Lived Intangible Assets, Accumulated Amortization | -774 | -670 | |
Acquired Finite-Lived Intangible Assets, Net | 2,926 | 3,030 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years 10 months 24 days | 8 years 10 months 24 days | |
Noncompete Agreements [Member] | |||
Schedule of Acquired Intangible Asset by Major Class [Line Items] | |||
Acquired Finite-Lived Intangible Assets, Gross | 700 | 700 | |
Acquired Finite-Lived Intangible Assets, Accumulated Amortization | -650 | -563 | |
Acquired Finite-Lived Intangible Assets, Net | 50 | 137 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 0 months 0 days | 2 years 0 months 0 days | |
Other Intangible Assets [Member] | |||
Schedule of Acquired Intangible Asset by Major Class [Line Items] | |||
Acquired Finite-Lived Intangible Assets, Gross | 930 | 930 | |
Acquired Finite-Lived Intangible Assets, Accumulated Amortization | -794 | -786 | |
Acquired Finite-Lived Intangible Assets, Net | $136 | $144 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year 2 months 24 days | 1 year 2 months 24 days |
AcquisitionRelated_Intangible_3
Acquisition-Related Intangible Assets, Net (Annual Amortization Expense) (Details) (USD $) | Mar. 27, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2015 (remaining nine months) | $7,182 | |
2016 | 9,327 | |
2017 | 9,151 | |
2018 | 9,039 | |
2019 | 8,938 | |
2020 and Thereafter | 22,690 | |
Acquired Finite-Lived Intangible Assets, Net | $66,327 | $68,791 |
Financial_Instruments_Details_
Financial Instruments (Details 1) (USD $) | Mar. 27, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Available for Sale Securities, Cost | $4,491,783 | $4,510,571 |
Unrealized Gains | 24,641 | 13,099 |
Unrealized Losses | -664 | -3,441 |
Investments, Fair Value Disclosure | 4,515,760 | 4,520,229 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,207,101 | 2,426,367 |
Short-Term Marketable Securities | 168,849 | 151,519 |
Long-Term Marketable Securities | 2,139,810 | 1,942,343 |
Cash [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash | 67,652 | 57,505 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Short-Term Marketable Securities | 0 | 0 |
Long-Term Marketable Securities | 0 | 0 |
Level 1 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Available for Sale Securities, Cost | 3,219,531 | 3,704,961 |
Unrealized Gains | 20,551 | 12,721 |
Unrealized Losses | -101 | -2,302 |
Investments, Fair Value Disclosure | 3,239,981 | 3,715,380 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,139,449 | 2,367,299 |
Short-Term Marketable Securities | 44,690 | 38,938 |
Long-Term Marketable Securities | 1,055,842 | 1,309,143 |
Level 1 [Member] | Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Available for Sale Securities, Cost | 2,133,747 | 2,366,799 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Investments, Fair Value Disclosure | 2,133,747 | 2,366,799 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,133,747 | 2,366,799 |
Short-Term Marketable Securities | 0 | 0 |
Long-Term Marketable Securities | 0 | 0 |
Level 1 [Member] | US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Available for Sale Securities, Cost | 1,085,784 | 1,338,162 |
Unrealized Gains | 20,551 | 12,721 |
Unrealized Losses | -101 | -2,302 |
Investments, Fair Value Disclosure | 1,106,234 | 1,348,581 |
Cash and Cash Equivalents, Fair Value Disclosure | 5,702 | 500 |
Short-Term Marketable Securities | 44,690 | 38,938 |
Long-Term Marketable Securities | 1,055,842 | 1,309,143 |
Level 2 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Available for Sale Securities, Cost | 1,204,600 | 748,105 |
Unrealized Gains | 4,090 | 378 |
Unrealized Losses | -563 | -1,139 |
Investments, Fair Value Disclosure | 1,208,127 | 747,344 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 1,563 |
Short-Term Marketable Securities | 124,159 | 112,581 |
Long-Term Marketable Securities | 1,083,968 | 633,200 |
Level 2 [Member] | Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Available for Sale Securities, Cost | 22,236 | 21,186 |
Unrealized Gains | 19 | 12 |
Unrealized Losses | 0 | -7 |
Investments, Fair Value Disclosure | 22,255 | 21,191 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Short-Term Marketable Securities | 9,795 | 11,748 |
Long-Term Marketable Securities | 12,460 | 9,443 |
Level 2 [Member] | Foreign Government Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Available for Sale Securities, Cost | 41,819 | 31,281 |
Unrealized Gains | 29 | 2 |
Unrealized Losses | -15 | -17 |
Investments, Fair Value Disclosure | 41,833 | 31,266 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Short-Term Marketable Securities | 11,926 | 19,459 |
Long-Term Marketable Securities | 29,907 | 11,807 |
Level 2 [Member] | Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Available for Sale Securities, Cost | 2,000 | 2,000 |
Unrealized Gains | 3 | 2 |
Unrealized Losses | 0 | 0 |
Investments, Fair Value Disclosure | 2,003 | 2,002 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Short-Term Marketable Securities | 2,003 | 1,001 |
Long-Term Marketable Securities | 0 | 1,001 |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Available for Sale Securities, Cost | 1,138,545 | 693,638 |
Unrealized Gains | 4,039 | 362 |
Unrealized Losses | -548 | -1,115 |
Investments, Fair Value Disclosure | 1,142,036 | 692,885 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 1,563 |
Short-Term Marketable Securities | 100,435 | 80,373 |
Long-Term Marketable Securities | $1,041,601 | $610,949 |
Financial_Instruments_Details_1
Financial Instruments (Details 2) (USD $) | Mar. 27, 2015 |
In Millions, unless otherwise specified | |
Investments, Debt and Equity Securities [Abstract] | |
Cost Method Investments | $24.60 |
Financial_Instruments_Details_2
Financial Instruments (Details 3) (USD $) | Mar. 27, 2015 |
In Thousands, unless otherwise specified | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $174,432 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 174,551 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 1,712,133 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 1,717,868 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 403,819 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 421,942 |
Available-for-sale Securities, Debt Maturities, Without Single Maturity Date, Amortized Cost Basis | 2,290,384 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | $2,314,361 |
Financial_Instruments_Details_3
Financial Instruments (Details 4) (USD $) | Mar. 27, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | positions | positions |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 272 | 508 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $354.90 | $1,100 |
Available-for-Sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses Accumulated in Investments | $0.70 | $3.40 |
Accounts_Receivable_Net_and_Si2
Accounts Receivable, Net and Significant Customers (Accounts Receivables) (Details) (USD $) | Mar. 27, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, Net [Abstract] | ||
Gross accounts receivable | $434,190 | $380,442 |
Allowance for doubtful accounts | -500 | -500 |
Allowance for sales returns | 0 | -1,978 |
Accounts receivable, net | $433,690 | $377,964 |
Accounts_Receivable_Net_and_Si3
Accounts Receivable, Net and Significant Customers (Significant Customers) (Details) | 3 Months Ended | ||||
Mar. 27, 2015 | Mar. 28, 2014 | Dec. 31, 2014 | |||
Revenue, Major Customer [Line Items] | |||||
Sales to distributors | 73.00% | 74.00% | |||
Sales to OEMs | 27.00% | 26.00% | |||
Concentration Risk, Percentage | 100.00% | 100.00% | |||
Arrow Electronics, Inc | |||||
Revenue, Major Customer [Line Items] | |||||
Sales to distributors | 41.00% | [1] | 38.00% | [1] | |
Accounts Receivable From Distributors As Percentage Of Total Accounts Receivables | 30.00% | 34.00% | |||
Macnica, Inc | |||||
Revenue, Major Customer [Line Items] | |||||
Sales to distributors | 20.00% | [1] | 24.00% | [1] | |
Accounts Receivable From Distributors As Percentage Of Total Accounts Receivables | 50.00% | 47.00% | |||
OEM One | |||||
Revenue, Major Customer [Line Items] | |||||
Sales to OEMs | 12.00% | 11.00% | |||
[1] | Except as presented above, no other distributor accounted for greater than 10% of our net sales for the three months ended March 27, 2015 or March 28, 2014. |
Inventories_Details
Inventories (Details) (USD $) | Mar. 27, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $6,342 | $6,826 |
Inventory, Work in Process, Net of Reserves | 107,653 | 95,675 |
Inventory, Finished Goods, Net of Reserves | 41,358 | 50,886 |
Total inventories | $155,353 | $153,387 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | 3 Months Ended | ||
Mar. 27, 2015 | Mar. 28, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $541,000,000 | $529,294,000 | |
Accumulated depreciation | -325,691,000 | -334,454,000 | |
Property and equipment, net | 215,309,000 | 194,840,000 | |
Depreciation Expense | 12,800,000 | 13,000,000 | |
Land and land rights [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 23,157,000 | 23,157,000 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 161,096,000 | 161,070,000 | |
Equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 317,240,000 | 298,069,000 | |
Office furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 24,686,000 | 24,601,000 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 13,015,000 | 12,800,000 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $1,806,000 | $9,597,000 |
Deferred_Income_and_Allowances2
Deferred Income and Allowances on Sales to Distributors (Details) (USD $) | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 27, 2015 | Mar. 28, 2014 | Dec. 31, 2014 | |||
Rate | ||||||
Deferred Income and Allowances on Sales to Distributors | ||||||
Deferred revenue on shipment to distributors | $440,453 | $369,560 | ||||
Deferred cost of sales on shipment to distributors | -35,479 | -32,172 | ||||
Deferred income on shipment to distributors | 404,974 | 337,388 | ||||
Other deferred revenue | 6,584 | [1] | 6,780 | [1] | ||
Total | 411,558 | 344,168 | ||||
Deferred Income and Allowances on Sales to Distributor Activity | ||||||
Balance at beginning of period | 344,168 | 487,746 | ||||
Deferred revenue recognized upon shipment to distributors | 1,478,292 | 1,354,597 | ||||
Deferred cost of sales recognized upon shipment to distributors | -70,524 | -66,527 | ||||
Revenue recognized upon sell-through to end customers | -249,284 | -277,671 | ||||
Cost of sales recognized upon sell-through to end customers | 66,651 | 66,733 | ||||
Earned distributor price concessions | -1,147,370 | [2] | -1,137,745 | [2] | ||
Returns | -10,198 | -11,163 | ||||
Other | -177 | -1,451 | ||||
Balance at end of period | $411,558 | $414,519 | ||||
Deferred Income and Allowances on Sales to Distributors Textuals [Abstract] | ||||||
Minimum percentage of average aggregate price concessions on list price | 70.00% | |||||
Maximum percentage of average aggregate price concessions on list price | 85.00% | |||||
Maximum time period to submit claim for receiving price concession, days | 60 days | |||||
Period of settlement for receivable balances, days | 30 days | |||||
[1] | Principally represents revenue deferred on our maintenance contracts, software and intellectual property licenses. | |||||
[2] | Average aggregate price concessions typically range from 70% to 85% of our list price on an annual basis, depending upon the composition of our sales, volumes and factors associated with timing of shipments to distributors. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Details) (USD $) | Mar. 27, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Equity [Abstract] | ||
Accumulated unrecognized gains on available-for-sale securities, net of tax | $23,930 | $9,645 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 27, 2015 | Mar. 28, 2014 |
Basic: | ||
Net income | $94,852 | $116,514 |
Basic weighted shares outstanding (in shares) | 301,308,000 | 316,552,000 |
Net income per share (in dollars per share) | $0.31 | $0.37 |
Diluted: | ||
Net income | $94,852 | $116,514 |
Basic weighted shares outstanding (in shares) | 301,308,000 | 316,552,000 |
Stock options, ESPP, and restricted stock unit shares (in shares) | 1,977,000 | 2,349,000 |
Diluted weighted shares outstanding | 303,285,000 | 318,901,000 |
Net income per share (in dollars per share) | $0.31 | $0.37 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,200,000 | 1,900,000 |
Credit_Facility_and_LongTerm_D2
Credit Facility and Long-Term Debt (Credit Facility) (Details) (Line of Credit [Member], USD $) | 0 Months Ended | |
Jun. 29, 2012 | Mar. 27, 2015 | |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, Term | 5 years 0 months 0 days | |
Line of credit facility, maximum borrowing capacity | $250,000,000 | |
Increase in borrowing capacity of line of credit | 250,000,000 | |
Revolving Credit Facility | $0 |
Credit_Facility_and_LongTerm_D3
Credit Facility and Long-Term Debt (Debt Instruments) (Details) (USD $) | 0 Months Ended | |||
Oct. 29, 2013 | 8-May-12 | Mar. 27, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | ($8,200,000) | ($800,000) | ||
Carrying amount | 1,493,082,000 | 1,492,759,000 | ||
Proceeds from issuance of long term debt | 991,800,000 | 499,200,000 | ||
Debt Issuance Cost | 5,500,000 | 3,700,000 | ||
Senior Notes [Member] | Two Point Five Percent Senior Notes Maturing November 15, 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Due Date | 15-Nov-18 | |||
Coupon rate | 2.50% | |||
Effective interest rate | 2.71% | |||
Principal Amount | 600,000,000 | 600,000,000 | 600,000,000 | |
Debt Instrument, Unamortized Discount | -2,283,000 | -2,443,000 | ||
Carrying amount | 597,717,000 | 597,557,000 | ||
Debt Instrument, Fair Value Disclosure | 613,746,000 | 606,564,000 | ||
Senior Notes [Member] | Four Point One Percent Senior Notes Maturing November 15, 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Due Date | 15-Nov-23 | |||
Coupon rate | 4.10% | |||
Effective interest rate | 4.29% | |||
Principal Amount | 400,000,000 | 400,000,000 | 400,000,000 | |
Debt Instrument, Unamortized Discount | -4,316,000 | -4,441,000 | ||
Carrying amount | 395,684,000 | 395,559,000 | ||
Debt Instrument, Fair Value Disclosure | 427,112,000 | 417,480,000 | ||
Senior Notes [Member] | One Point Seven Five Percent Senior Note Maturing May 15, 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Due Date | 15-May-17 | |||
Coupon rate | 1.75% | |||
Effective interest rate | 1.94% | |||
Principal Amount | 500,000,000 | 500,000,000 | 500,000,000 | |
Debt Instrument, Unamortized Discount | -319,000 | -357,000 | ||
Carrying amount | 499,681,000 | 499,643,000 | ||
Debt Instrument, Fair Value Disclosure | $503,655,000 | $501,460,000 |
Credit_Facility_and_LongTerm_D4
Credit Facility and Long-Term Debt (Interest Expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 27, 2015 | Mar. 28, 2014 |
Debt Disclosure [Abstract] | ||
Contractual coupon interest | $9,538 | $9,652 |
Amortization of debt issuance costs | 456 | 456 |
Amortization of Debt Discount, Net | 323 | 323 |
Total Interest Expense related to senior notes | $10,317 | $10,431 |
Credit_Facility_and_LongTerm_D5
Credit Facility and Long-Term Debt (Maturities of Principal Payments) (Details) (USD $) | Mar. 27, 2015 |
Debt Disclosure [Abstract] | |
2015 (remaining nine months) | $0 |
2016 | 0 |
2017 | 500,000,000 |
2018 | 600,000,000 |
2019 | 0 |
2020 and after | 400,000,000 |
Total | $1,500,000,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2008 | Jul. 17, 2014 | Oct. 08, 2014 | Mar. 27, 2015 | Dec. 31, 2014 | Dec. 08, 2011 | Jan. 23, 2012 | Mar. 29, 2013 |
lawsuits | lawsuits | lawsuits | ||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Significant Commitment, Remaining Minimum Amount Committed | $181.90 | |||||||
Non-cancelable license obligations | 12.8 | 59.5 | ||||||
Loss Contingencies [Line Items] | ||||||||
Income Taxes Paid | 18 | |||||||
Loss Contingency, Pending Claims, Number | 2 | |||||||
Tax Return Examination Years 2002 through 2004 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 19.8 | |||||||
Tax Return Examination Years 2005 through 2007 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 21.4 | |||||||
Tax Return Examination Years 2004 through 2007 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | ($6.80) | |||||||
PLL Technologies, Inc. [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Claims Filed, Number | 1 | |||||||
PACT XPP Technologies, AG [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Claims Filed, Number | 1 |
StockBased_Compensation_Expens
Stock-Based Compensation (Expense Included in the Consolidated Statements of Comprehensive Income) (Details) (USD $) | 3 Months Ended | |
Mar. 27, 2015 | Mar. 28, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Pre-tax stock-based compensation expense | $20,325,000 | $23,347,000 |
Less: income tax benefit | -5,621,000 | -6,194,000 |
Net stock-based compensation expense | 14,704,000 | 17,153,000 |
Unrecognized stock-based compensation | 103,300,000 | |
Unrecognized stock-based compensation, period for recognition | 2 years 0 months 0 days | |
Cost of sales [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Pre-tax stock-based compensation expense | 407,000 | 467,000 |
Research and Development Expense [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Pre-tax stock-based compensation expense | 8,943,000 | 10,273,000 |
Selling, General and Administrative Expenses [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Pre-tax stock-based compensation expense | $10,975,000 | $12,607,000 |
StockBased_Compensation_Valuat
Stock-Based Compensation (Valuation Assumptions) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended | |
Mar. 27, 2015 | Mar. 28, 2014 | |
Rate | Rate | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.70% | 0.60% |
Dividend yield | 2.10% | 1.90% |
Weighted-average estimated fair value | $32.20 | $30.40 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
13-May-14 | 5-May-14 | 6-May-13 | Jul. 30, 2012 | Mar. 27, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares reserved for future issuance under the Equity Plan | 25,700,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 17,800,000 | ||||||||
Restricted Stock Units And Performance Based Restricted Stock Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period for stock-based awards granted under the Equity Plan (in years) | 4 years 0 months 0 days | ||||||||
RSUs and PRSUs, Number of Shares | |||||||||
Outstanding, December 31, 2014 | 5,506,000 | ||||||||
Grants | 92,000 | ||||||||
Vested | -222,000 | ||||||||
Forfeited/Cancelled | -79,000 | ||||||||
Outstanding, March 27, 2015 | 5,297,000 | ||||||||
Vested and expected to vest, March 27, 2015 | 4,792,000 | ||||||||
RSUs and PRSUs, Weighted-Average Grant-Date Fair Market Value Per Share (in dollars per share): | |||||||||
Outstanding, December 31, 2014 | 34 | ||||||||
Grants | 34 | ||||||||
Vested | 38.94 | ||||||||
Forfeited/Cancelled | 33.88 | ||||||||
Outstanding, March 27, 2015 | 33.8 | ||||||||
Vested and expected to vest, March 27, 2015 | 33.8 | ||||||||
Outstanding, Weighted-Average Remaining Contractual Term (in Years) | 1 year 2 months 0 days | ||||||||
Outstanding, Aggregate Intrinsic Value | 235,136,000 | [1] | |||||||
Vested and expected to vest, Weighted-Average Remaining Contractual Term (in Years) | 1 year 2 months 0 days | ||||||||
Vested and expected to vest, Aggregate Intrinsic Value | 212,699,000 | [1] | |||||||
Employee Stock Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contractual term for stock-based awards granted under the Equity plan (in years) | 10 years 0 months 0 days | ||||||||
Stock Options, Number of Shares | |||||||||
Outstanding, December 31, 2014 | 2,074,000 | ||||||||
Grants | 0 | ||||||||
Exercises | -104,000 | ||||||||
Forfeited/Cancelled/Expired | -17,000 | ||||||||
Outstanding, March 27, 2015 | 1,953,000 | ||||||||
Exercisable, March 27, 2015 | 1,524,000 | ||||||||
Vested and expected to vest, March 27, 2015 | 1,931,000 | ||||||||
Stock Options, Weighted-Average Exercise Price Per Share (in dollars per share): | |||||||||
Outstanding, December 31, 2014 | 32.6 | ||||||||
Exercises | 20.4 | ||||||||
Forfeited/Cancelled/Expired | 32.37 | ||||||||
Outstanding, March 27, 2015 | 33.26 | ||||||||
Exercisable, March 27, 2015 | 32.75 | ||||||||
Vested and expected to vest, March 27, 2015 | 33.25 | ||||||||
Outstanding, Weighted-Average Remaining Contractual Term (in Years) | 5 years 1 month 0 days | ||||||||
Exercisable, Weighted-Average Contractual Term (in Years) | 4 years 7 months 0 days | ||||||||
Vested and expected to vest, Weighted-Average Remaining Contractual Term (in Years) | 5 years 1 month 0 days | ||||||||
Outstanding, Aggregate Intrinsic Value | 21,741,000 | [2] | |||||||
Exercisable, Aggregate Intrinsic Value | 17,732,000 | [2] | |||||||
Vested and expected to vest, Aggregate Intrinsic Value | 21,518,000 | [2] | |||||||
Intrinsic value of stock options exercised | 1,700,000 | ||||||||
Consideration recorded from exercise of stock options | 2,100,000 | ||||||||
Performance-based Restricted Stock Units (Market-Based PRSUs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period for stock-based awards granted under the Equity Plan (in years) | 3 years 0 months 0 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Maximum | 200.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Minimum | 0.00% | ||||||||
RSUs and PRSUs, Number of Shares | |||||||||
Grants | 303,260 | 262,647 | 66,489 | ||||||
RSUs and PRSUs, Weighted-Average Grant-Date Fair Market Value Per Share (in dollars per share): | |||||||||
Grants | $31.13 | $31.23 | $33.03 | $41.18 | |||||
[1] | Aggregate intrinsic value represents the closing price per share of our stock on March 27, 2015, multiplied by the number of RSUs and market-based PRSUs outstanding or vested and expected to vest as of March 27, 2015. | ||||||||
[2] | For those stock options with an exercise price below the closing price per share on March 27, 2015, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on March 27, 2015, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of March 27, 2015. |
StockBased_Compensation_Employ
Stock-Based Compensation (Employee Stock Purchase Plan) (Details) (Employee Stock Purchase Plan 1987 [Member]) | Mar. 27, 2015 |
In Millions, unless otherwise specified | |
Employee Stock Purchase Plan 1987 [Member] | |
Employee Stock Purchase Plan [Line Items] | |
Part of fair market value of common stock used to determine purchase price for share under ESPP | 85.00% |
Shares available for future issuance under Employee Stock Purchase Plan | 3.4 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | Mar. 27, 2015 | Mar. 28, 2014 |
Stockholders' Equity Note [Abstract] | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 233 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 16 | |
Stock Repurchased and Retired, Share, Total | 217 | |
Payment For Stock Repurchased and Retired, Total | $5,000,000,000 | |
Stock Repurchased and Retired During Period, Shares | 1.6 | 4.6 |
Payments for Repurchase of Common Stock | $57,507,000 | $161,794,000 |
Common Stock Repurchased and Retired During The Period, Average Cost Per Share | $34.95 | $35.16 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 27, 2015 | Mar. 28, 2014 | Dec. 31, 2008 | Dec. 31, 2014 | Dec. 08, 2011 | Jan. 23, 2012 | Mar. 29, 2013 |
Rate | Rate | ||||||
Income Tax Contingency [Line Items] | |||||||
Income Taxes Paid | $18 | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ||||||
Effective Tax Rate | 6.70% | 10.50% | |||||
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount | 7.1 | ||||||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 4 | ||||||
Other Tax Expense (Benefit) | 0.9 | ||||||
Unrecognized Tax Benefits | 348.9 | 341.1 | |||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 47.3 | 45.8 | |||||
Deferred Charge, Current | 2.2 | ||||||
Deferred Charge, Non-current | 16.4 | ||||||
Business Combination, Indemnification Assets, Amount as of Acquisition Date | 6.5 | ||||||
Tax Return Examination Years 2002 through 2004 [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 19.8 | ||||||
Tax Return Examination Years 2005 through 2007 [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 21.4 | ||||||
Tax Return Examination Years 2004 through 2007 [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | ($6.80) |
NonQualified_Deferred_Compensa2
Non-Qualified Deferred Compensation Plan (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 27, 2015 | Dec. 31, 2014 | ||
employee | ||||
Deferred compensation plan - marketable securities [Line Items] | ||||
Number of participants NQDC | 122 | |||
Deferred Compensation Plan Assets | $85,301 | [1] | $83,779 | [1] |
Level 1 [Member] | ||||
Deferred compensation plan - marketable securities [Line Items] | ||||
Deferred Compensation Plan Assets | 83,421 | [1] | 81,697 | [1] |
Level 1 [Member] | Restricted cash equivalents [Member] | ||||
Deferred compensation plan - marketable securities [Line Items] | ||||
Deferred Compensation Plan Assets | 20,226 | [1] | 14,412 | [1] |
Level 1 [Member] | Equity securities [Member] | ||||
Deferred compensation plan - marketable securities [Line Items] | ||||
Deferred Compensation Plan Assets | 30,314 | [1] | 33,521 | [1] |
Level 1 [Member] | Mutual funds [Member] | ||||
Deferred compensation plan - marketable securities [Line Items] | ||||
Deferred Compensation Plan Assets | 32,881 | [1] | 33,764 | [1] |
Level 2 [Member] | Fixed income securities [Member] | ||||
Deferred compensation plan - marketable securities [Line Items] | ||||
Deferred Compensation Plan Assets | $1,880 | [1] | $2,082 | [1] |
[1] | Included in Deferred compensation plan—marketable securities and Deferred compensation plan—restricted cash equivalents in the accompanying consolidated balance sheets as of March 27, 2015 and December 31, 2014. |
Declaration_of_Dividend_Subseq1
Declaration of Dividend Subsequent to March 27, 2015 (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
Apr. 20, 2015 | |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Cash dividends per common share | $0.18 |
Dividends Payable, Date Declared | 20-Apr-15 |
Dividends Payable, Date of Record | 11-May-15 |
Dividends Payable, Date to be Paid | 1-Jun-15 |