|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
| |||||
|
(Unaudited) |
|
| |||||
|
|
Three Months Ended |
|
| ||||
|
|
March 28, |
|
December 27, |
|
March 29, |
|
|
|
|
2015 |
|
2014 |
|
2014 |
|
|
|
|
(in thousands) |
|
| ||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
$ 79,433 |
|
$ (72,034) |
|
$ 122,544 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Stock-based compensation |
18,586 |
|
20,776 |
|
22,057 |
|
|
|
Depreciation and amortization |
71,439 |
|
71,625 |
|
64,665 |
|
|
|
Deferred taxes |
(15,658) |
|
(30,849) |
|
(36,482) |
|
|
|
Loss (gain) from sale of property, plant and equipment |
(441) |
|
1,844 |
|
818 |
|
|
|
Tax benefit (shortfall) related to stock-based compensation |
7,635 |
|
(229) |
|
3,204 |
|
|
|
Impairment of long-lived assets |
5,522 |
|
50,745 |
|
- |
|
|
|
Impairment of goodwill and intangible assets |
- |
|
93,010 |
|
2,580 |
|
|
|
Impairment of investments in privately-held companies |
- |
|
- |
|
3,723 |
|
|
|
Excess tax benefit from stock-based compensation |
(5,997) |
|
(1,931) |
|
(5,139) |
|
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
(19,921) |
|
23,426 |
|
(15,566) |
|
|
|
Inventories |
9,194 |
|
(1,486) |
|
7,717 |
|
|
|
Other current assets |
(156) |
|
1,009 |
|
7,194 |
|
|
|
Accounts payable |
477 |
|
(12,007) |
|
(4,044) |
|
|
|
Income taxes payable |
22,587 |
|
12,835 |
|
14,244 |
|
|
|
Deferred revenue on shipments to distributors |
3,447 |
|
282 |
|
(1,283) |
|
|
|
All other accrued liabilities |
5,917 |
|
15,839 |
|
25,466 |
|
|
|
Net cash provided by (used in) operating activities |
182,064 |
|
172,855 |
|
211,698 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
(10,185) |
|
(18,585) |
|
(26,407) |
|
|
|
Proceeds from sales of property, plant and equipment |
1,615 |
|
24,467 |
|
618 |
|
|
|
Payments in connection with business acquisition, net of cash acquired |
- |
|
- |
|
(5,750) |
|
|
|
Purchases of investments in privately-held companies securities |
(200) |
|
- |
|
- |
|
|
|
Proceeds from maturity of debt investment in privately-held companies |
500 |
|
- |
|
- |
|
|
|
Net cash provided by (used in) investing activities |
(8,270) |
|
5,882 |
|
(31,539) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Excess tax benefit from stock-based compensation |
5,997 |
|
1,931 |
|
5,139 |
|
|
|
Contingent consideration paid |
- |
|
- |
|
(104) |
|
|
|
Repayment of notes payable |
- |
|
- |
|
(439) |
|
|
|
Net issuance of restricted stock units |
(8,369) |
|
(6,822) |
|
(8,390) |
|
|
|
Proceeds from stock options exercised |
31,098 |
|
8,323 |
|
29,538 |
|
|
|
Issuance of ESPP shares under employee stock purchase program |
- |
|
18,653 |
|
- |
|
|
|
Repurchase of common stock |
(36,774) |
|
(59,666) |
|
(51,083) |
|
|
|
Dividends paid |
(79,419) |
|
(79,169) |
|
(73,481) |
|
|
|
Net cash provided by (used in) financing activities |
(87,467) |
|
(116,750) |
|
(98,820) |
|
|
|
Net increase (decrease) in cash and cash equivalents |
86,327 |
|
61,987 |
|
81,339 |
|
|
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
Beginning of period |
1,305,870 |
|
1,243,883 |
|
1,149,909 |
|
|
|
End of period |
$1,392,197 |
|
$1,305,870 |
|
$1,231,248 |
|
|
|
|
|
|
|
|
|
|
|
|
Total cash, cash equivalents and short-term investments |
$1,467,339 |
|
$1,380,882 |
|
$1,231,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES |
|
| ||||||
|
(Unaudited) |
|
| ||||||
|
|
|
Three Months Ended |
|
| ||||
|
|
|
March 28, |
|
December 27, |
|
March 29, |
|
|
|
|
|
2015 |
|
2014 |
|
2014 |
|
|
|
|
|
(in thousands, except per share data) |
|
| ||||
|
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items: |
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ 315,268 |
|
$ 314,077 |
|
$ 339,937 |
|
|
|
GAAP gross profit % |
|
54.6% |
|
55.4% |
|
56.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
18,750 |
|
18,750 |
|
18,542 |
|
|
|
Accelerated depreciation (1) |
|
9,834 |
|
8,895 |
|
- |
|
|
|
Acquisition-related inventory write-up |
|
- |
|
- |
|
5,518 |
|
|
|
Total special items |
|
28,584 |
|
27,645 |
|
24,060 |
|
|
|
GAAP gross profit excluding special items |
|
$ 343,852 |
|
$ 341,722 |
|
$ 363,997 |
|
|
|
GAAP gross profit % excluding special items |
|
59.6% |
|
60.3% |
|
60.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items: |
|
|
|
|
|
|
|
|
|
GAAP operating expenses |
|
$ 209,818 |
|
$ 378,153 |
|
$ 233,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
3,977 |
|
4,155 |
|
4,863 |
|
|
|
Impairment of long-lived assets (2) |
|
5,522 |
|
50,745 |
|
- |
|
|
|
Impairment of goodwill and intangible assets (3) |
|
- |
|
93,010 |
|
2,580 |
|
|
|
Severance and restructuring (4) |
|
2,824 |
|
13,635 |
|
3,338 |
|
|
|
Acquisition-related costs |
|
- |
|
- |
|
(88) |
|
|
|
Other operating expenses (income), net |
|
(2,184) |
|
885 |
|
333 |
|
|
|
Total special items |
|
10,139 |
|
162,430 |
|
11,026 |
|
|
|
GAAP operating expenses excluding special items |
|
$ 199,679 |
|
$ 215,723 |
|
$ 222,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income (loss) to GAAP net income excluding special items: |
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
$ 79,433 |
|
$ (72,034) |
|
$ 122,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
22,727 |
|
22,905 |
|
23,405 |
|
|
|
Accelerated depreciation (1) |
|
9,834 |
|
8,895 |
|
- |
|
|
|
Acquisition-related inventory write-up |
|
- |
|
- |
|
5,518 |
|
|
|
Impairment of long-lived assets (2) |
|
5,522 |
|
50,745 |
|
- |
|
|
|
Impairment of goodwill and intangible assets (3) |
|
- |
|
93,010 |
|
2,580 |
|
|
|
Severance and restructuring (4) |
|
2,824 |
|
13,635 |
|
3,338 |
|
|
|
Acquisition-related costs |
|
- |
|
- |
|
(88) |
|
|
|
Other operating expenses (income), net |
|
(2,184) |
|
885 |
|
333 |
|
|
|
Interest and other expense (income), net (5) |
|
- |
|
(217) |
|
3,723 |
|
|
|
Pre-tax total special items |
|
38,723 |
|
189,858 |
|
38,809 |
|
|
|
Tax effect of special items |
|
(3,910) |
|
(21,283) |
|
(3,658) |
|
|
|
Fixed Asset Tax Basis Adjustment (6) |
|
- |
|
- |
|
(34,562) |
|
|
|
Fiscal year 2014 research & development tax credits |
|
- |
|
(2,863) |
|
- |
|
|
|
GAAP net income excluding special items |
|
$ 114,246 |
|
$ 93,678 |
|
$ 123,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per share excluding special items: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ 0.40 |
|
$ 0.33 |
|
$ 0.44 |
|
|
|
Diluted |
|
$ 0.40 |
|
$ 0.33 |
|
$ 0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the calculation of earnings per share excluding special items: |
|
|
|
|
|
|
|
|
|
Basic |
|
283,418 |
|
282,992 |
|
282,627 |
|
|
|
Diluted |
|
288,840 |
|
287,954 |
|
288,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Accelerated depreciation related to San Jose wafer manufacturing building and equipment. |
|
| ||||||
|
(2) Includes impairment charges related to MEMS and non-MEMS wafer manufacturing equipment and end of line test equipment. |
|
| ||||||
|
(3) Includes impairment of goodwill and write-off of in-process research and development related to MEMS and other business units. |
|
| ||||||
|
(4) Include severance charges associated with the reorganization of various business units and manufacturing operations. |
|
| ||||||
|
(5) Includes impairment of investments in privately-held companies. |
|
|
|
|
|
|
|
|
|
(6) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense. |
|
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|
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