Operating Segment and Geographical Information

12 Months Ended

Mar. 28, 2015

Segment Reporting [Abstract]

OPERATING SEGMENT INFORMATION

OPERATING SEGMENT AND GEOGRAPHIC INFORMATION

The Company's operating segments as of March 28, 2015 are Mobile Products (MP) and Infrastructure and Defense Products (IDP). In the fourth quarter of fiscal 2015, the Company renamed its reportable segments from Cellular Products Group (CPG) to MP, and Multi-Market Products Group (MPG) to IDP, as a result of the Business Combination. Additionally, the CODM elected to discontinue reporting Compound Semiconductor Group (CSG) as an operating segment.

MP is a leading global supplier of RF solutions that perform various functions in the increasingly complex cellular radio front end section of smartphones and other cellular devices. These RF solutions are required in fourth generation (“4G”) data-centric devices operating under Long-Term Evolution (“LTE”) and other 4G networks, as well as third generation (“3G”) and second generation (“2G”) mobile devices. These solutions include complete RF front end modules that combine high-performance filters, power amplifiers (“PAs”) and switches, PA modules, transmit modules, antenna control solutions, antenna switch modules, switch filter modules, switch duplexer modules and envelope tracking power management devices. MP supplies its broad portfolio of RF solutions into a variety of mobile devices, including smartphones, handsets, notebook computers, wearables and tablets.

IDP is a leading global supplier of a broad array of RF solutions to wireless network infrastructure, defense and aerospace markets and short-range connectivity applications for commercial, consumer, industrial and automotive markets. Infrastructure applications include 4G LTE and 3G base station deployments, WiFi infrastructure, microwave point-to-point radio and optical network links, and CATV wireline infrastructure. Defense and aerospace applications, which require extreme precision, reliability, durability and supply assurance, include a variety of advanced systems, such as active phased array radar, electronic warfare and various communications applications. Industrial and automotive applications include energy management, private mobile radio, satellite radio and test and measurement equipment. The Company's IDP products include high power GaAs and GaN PAs, low noise amplifiers, switches, fixed frequency and voltage-controlled oscillators, filters, attenuators, modulators, driver and transimpedance amplifiers and various multichip and hybrid assemblies.

As of March 28, 2015, MP and IDP are separate reportable segments based on the organizational structure and information reviewed by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker (or CODM), and are managed separately based on the end markets and applications they support. The CODM allocates resources and assesses the performance of each operating segment primarily based on non-GAAP operating income (loss) and non-GAAP operating income (loss) as a percentage of revenue.

The “All other” category includes operating expenses such as stock-based compensation, amortization of purchased intangible assets, acquired inventory step-up and revaluation, acquisition and integration related costs, impairment of intangible asset, loss on asset transfer transaction, intellectual property rights (IPR) litigation costs, the inventory revaluation resulting from the transfer of the Company's molecular beam epitaxy (“MBE”) operations, restructuring and disposal costs, certain consulting costs, and other miscellaneous corporate overhead expenses that the Company does not allocate to its reportable segments because these expenses are not included in the segment operating performance measures evaluated by the Company’s CODM. The CODM does not evaluate operating segments using discrete asset information. The Company’s operating segments do not record inter-company revenue. The Company does not allocate gains and losses from equity investments, interest and other income, or taxes to operating segments. Except as discussed above regarding the “All other” category, the Company’s accounting policies for segment reporting are the same as for the Company as a whole.

The following tables present details of the Company’s reportable segments and a reconciliation of the “All other” category (in thousands):

	Fiscal Year
	2015			2014			2013
Revenue:
MP	$	1,395,035		$	935,313		$	761,425
IDP	313,274			212,897			202,722
All other (1)	2,657			21			—
Total revenue	$	1,710,966		$	1,148,231		$	964,147
Income (loss) from operations:
MP	$	404,382		$	109,862		$	52,574
IDP	72,262			32,315			11,181
All other	(354,178		)	(114,836		)	(79,435		)
Income (loss) from operations	$	122,466		$	27,341		$	(15,680	)
Interest expense	$	(1,421	)	$	(5,983	)	$	(6,532	)
Interest income	450			179			249
Loss on retirement of convertible subordinated notes	—			—			(2,756		)
Other (expense) income	(254		)	2,336			(1,180		)
Income (loss) before income taxes	$	121,241		$	23,873		$	(25,899	)

(1) "All other" revenue for fiscal 2015 relates to royalty income that is not allocated to MP or IDP.

	Fiscal Year
	2015			2014			2013
Reconciliation of “All other” category:
Stock-based compensation expense	$	(64,941	)	$	(29,901	)	$	(30,819	)
Amortization of intangible assets	(142,749		)	(28,638		)	(23,107		)
Acquired inventory step-up and revaluation	(72,850		)	—			(3,140		)
Impairment of intangible asset	—			(11,300		)	—
Acquisition and integration related costs	(41,539		)	(8,105		)	(2,765		)
Restructuring and disposal costs	(14,175		)	(8,118		)	(1,365		)
Loss on asset transfer transaction	—			—			(5,042		)
IPR litigation costs	(8,263		)	(7,578		)	(5,955		)
Inventory revaluation resulting from transfer of MBE operations	—			—			(2,518		)
Certain consulting costs	(875		)	(11,295		)	—
Other expenses (including (gain) loss on assets, and start-up costs)	(8,786		)	(9,901		)	(4,724		)
Loss from operations for “All other”	$	(354,178	)	$	(114,836	)	$	(79,435	)

The consolidated financial statements include revenue to customers by geographic region that are summarized as follows (in thousands):

	Fiscal Year
	2015		2014		2013
Revenue:
United States	$	315,775	$	342,805	$	296,442
International	1,395,191		805,426		667,705

	Fiscal Year
	2015	2014	2013
Revenue:
United States	18%	30%	31%
Asia	75	66	63
Europe	6	4	6
Other	1	—	—

The consolidated financial statements include the following long-lived asset amounts related to operations of the Company by geographic region (in thousands):

	Fiscal Year
	2015		2014		2013
Long-lived tangible assets:
United States	$	697,305	$	120,885	$	114,635
International	186,066		75,111		76,891

Sales, for geographic disclosure purposes, are based on the “sold to” address of the customer. The “sold to” address is not always an accurate representation of the location of final consumption of the Company’s components. Of the Company’s total revenue for fiscal 2015, approximately 49% ($841.0 million) was from customers in China and 19% ($332.5 million) from customers in Taiwan. Long-lived tangible assets primarily include property and equipment and at March 28, 2015, approximately $126.5 million (or 14%) of the Company’s total property and equipment was located in China.