|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
| |||||
|
|
(Unaudited) |
| |||||
|
|
|
Three Months Ended |
| ||||
|
|
|
March 26, |
|
December 26, |
|
March 28, |
|
|
|
|
2016 |
|
2015 |
|
2015 |
|
|
|
|
(in thousands) |
| ||||
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
$ 139,810 |
|
$ 67,469 |
|
$ 79,433 |
|
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Stock-based compensation |
17,875 |
|
18,419 |
|
18,586 |
|
|
|
Depreciation and amortization |
47,088 |
|
49,082 |
|
71,439 |
|
|
|
Deferred taxes |
(333) |
|
18,816 |
|
(15,658) |
|
|
|
Loss (gain) from sale of property, plant and equipment |
3,098 |
|
(4,517) |
|
(441) |
|
|
|
Loss (gain) on sale of business |
(58,944) |
|
— |
|
— |
|
|
|
Tax benefit (shortfall) related to stock-based compensation |
545 |
|
1,980 |
|
7,635 |
|
|
|
Impairment of long-lived assets |
506 |
|
1,950 |
|
5,522 |
|
|
|
Excess tax benefit from stock-based compensation |
(1,491) |
|
(3,920) |
|
(5,997) |
|
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
(47,322) |
|
51,291 |
|
(19,921) |
|
|
|
Inventories |
22,785 |
|
15,811 |
|
9,194 |
|
|
|
Other current assets |
(8,947) |
|
(918) |
|
(156) |
|
|
|
Accounts payable |
8,683 |
|
(7,659) |
|
477 |
|
|
|
Income taxes payable |
29,597 |
|
(26,875) |
|
22,587 |
|
|
|
Deferred revenue on shipments to distributors |
2,390 |
|
(3,024) |
|
3,447 |
|
|
|
All other accrued liabilities |
12,646 |
|
4,584 |
|
5,917 |
|
|
|
Net cash provided by (used in) operating activities |
167,986 |
|
182,489 |
|
182,064 |
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Payments for property, plant and equipment |
(17,530) |
|
(13,530) |
|
(10,185) |
|
|
|
Proceeds from sales of property, plant and equipment |
136 |
|
49,709 |
|
1,615 |
|
|
|
Proceeds from sales of business |
105,000 |
|
- |
|
- |
|
|
|
Purchases of available-for-sale securities |
(24,861) |
|
(25,032) |
|
- |
|
|
|
Purchases of privately-held companies' securities |
(1,921) |
|
(6,008) |
|
(200) |
|
|
|
Other investing activities |
- |
|
2,380 |
|
- |
|
|
|
Proceeds from maturity of debt investment in privately-held companies |
- |
|
- |
|
500 |
|
|
|
Net cash provided by (used in) investing activities |
60,824 |
|
7,519 |
|
(8,270) |
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Excess tax benefit from stock-based compensation |
1,491 |
|
3,920 |
|
5,997 |
|
|
|
Net issuance of restricted stock units |
(8,853) |
|
(7,722) |
|
(8,369) |
|
|
|
Proceeds from stock options exercised |
9,889 |
|
48,477 |
|
31,098 |
|
|
|
Issuance of common stock under employee stock purchase program |
— |
|
14,350 |
|
— |
|
|
|
Repurchase of common stock |
(83,801) |
|
(23,150) |
|
(36,774) |
|
|
|
Dividends paid |
(85,714) |
|
(85,712) |
|
(79,419) |
|
|
|
Net cash provided by (used in) financing activities |
(166,988) |
|
(49,837) |
|
(87,467) |
|
|
|
Net increase (decrease) in cash and cash equivalents |
61,822 |
|
140,171 |
|
86,327 |
|
|
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
Beginning of period |
1,648,518 |
|
1,508,347 |
|
1,305,870 |
|
|
|
End of period |
$1,710,340 |
|
$ 1,648,518 |
|
$1,392,197 |
|
|
|
|
|
|
|
|
|
|
|
|
Total cash, cash equivalents, and short-term investments |
$1,860,416 |
|
$ 1,773,473 |
|
$1,467,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES |
| ||||||
|
|
(Unaudited) |
| ||||||
|
|
|
|
Three Months Ended |
| ||||
|
|
|
|
March 26, |
|
December 26, |
|
March 28, |
|
|
|
|
|
2016 |
|
2015 |
|
2015 |
|
|
|
|
|
(in thousands, except per share data) |
| ||||
|
|
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items: |
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ 318,841 |
|
$ 292,169 |
|
$ 315,268 |
|
|
|
GAAP gross profit % |
|
57.4% |
|
57.2% |
|
54.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
11,829 |
|
14,734 |
|
18,750 |
|
|
|
Accelerated depreciation (1) |
|
4,066 |
|
2,032 |
|
9,834 |
|
|
|
Other cost of goods sold (2) |
|
6,123 |
|
- |
|
- |
|
|
|
Total special items |
|
22,018 |
|
16,766 |
|
28,584 |
|
|
|
GAAP gross profit excluding special items |
|
$ 340,859 |
|
$ 308,935 |
|
$ 343,852 |
|
|
|
GAAP gross profit % excluding special items |
|
61.4% |
|
60.5% |
|
59.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items: |
|
|
|
|
|
|
|
|
|
GAAP operating expenses |
|
$ 141,133 |
|
$ 202,636 |
|
$ 209,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
2,538 |
|
3,538 |
|
3,977 |
|
|
|
Impairment of long-lived assets |
|
506 |
|
1,950 |
|
5,522 |
|
|
|
Severance and restructuring |
|
2,552 |
|
10,652 |
|
2,824 |
|
|
|
Other operating expenses (income), net (3) |
|
(55,419) |
|
(247) |
|
(2,184) |
|
|
|
Total special items |
|
(49,823) |
|
15,893 |
|
10,139 |
|
|
|
GAAP operating expenses excluding special items |
|
$ 190,956 |
|
$ 186,743 |
|
$ 199,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income (loss) to GAAP net income excluding special items: |
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
$ 139,810 |
|
$ 67,469 |
|
$ 79,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
14,367 |
|
18,272 |
|
22,727 |
|
|
|
Accelerated depreciation (1) |
|
4,066 |
|
2,032 |
|
9,834 |
|
|
|
Other cost of goods sold (2) |
|
6,123 |
|
- |
|
- |
|
|
|
Impairment of long-lived assets |
|
506 |
|
1,950 |
|
5,522 |
|
|
|
Severance and restructuring |
|
2,552 |
|
10,652 |
|
2,824 |
|
|
|
Other operating expenses (income), net (3) |
|
(55,419) |
|
(247) |
|
(2,184) |
|
|
|
Interest and other expense (income), net |
|
(45) |
|
595 |
|
- |
|
|
|
Pre-tax total special items |
|
(27,850) |
|
33,254 |
|
38,723 |
|
|
|
Fiscal year 2015 research & development tax credits |
|
- |
|
(2,475) |
|
- |
|
|
|
Other income tax effects and adjustments (4) |
|
5,698 |
|
(5,428) |
|
(3,910) |
|
|
|
GAAP net income excluding special items |
|
$ 117,658 |
|
$ 92,820 |
|
$ 114,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per share excluding special items: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ 0.41 |
|
$ 0.33 |
|
$ 0.40 |
|
|
|
Diluted |
|
$ 0.41 |
|
$ 0.32 |
|
$ 0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the calculation of earnings per share excluding special items: |
|
|
|
|
|
|
|
|
|
Basic |
|
285,854 |
|
285,526 |
|
283,418 |
|
|
|
Diluted |
|
289,783 |
|
290,521 |
|
288,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
(1) Includes building and equipment accelerated depreciation related to San Jose and Dallas manufacturing facilities. |
| ||||||
|
|
(2) Includes expense related to patent license settlement. |
| ||||||
|
|
(3) Includes gain on sale of energy metering business during the third quarter of fiscal year 2016. |
| ||||||
|
|
(4) Includes tax effect of pre-tax special items and miscellaneous tax adjustments. |
| ||||||
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
