XML 35 R24.htm IDEA: XBRL DOCUMENT v3.5.0.2
Consolidating Financial Information
12 Months Ended
Apr. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Consolidating Financial Information [Text Block]
CONSOLIDATING FINANCIAL INFORMATION

As discussed in Note 7, the Notes were issued pursuant to the Indenture by and among the Company, the Company's domestic subsidiaries that guarantee the Company's obligations under its revolving credit facility, as guarantors, and MUFG Union Bank, N.A., as trustee. The Notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary, each of which is 100% owned, directly or indirectly, by Qorvo, Inc. (the "Parent Company"). As discussed in Note 1, the Business Combination of RFMD and TriQuint under Parent Company, a new holding company, closed on January 1, 2015. A guarantor subsidiary’s guarantee can be released in certain customary circumstances.

In accordance with Rule 3-10 of Regulation S-X, the following presents the condensed consolidating financial information separately for:

(i)
the Parent Company, the issuer of the Notes;
(ii)
the guarantor subsidiaries, on a combined basis, as specified in the Indenture;
(iii)
the non-guarantor subsidiaries, on a combined basis;
(iv)
consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among the Parent Company, the guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate intercompany profit in inventory, (c) eliminate the investments in the Company’s subsidiaries and (d) record consolidating entries; and
(v)
the Company, on a consolidated basis.

Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries that are eliminated upon consolidation. The financial information may not necessarily be indicative of the financial position, results of operations, comprehensive income (loss), and cash flows, had the Parent Company, guarantor or non-guarantor subsidiaries operated as independent entities.
 

 
Condensed Consolidating Balance Sheet
 
April 2, 2016
(in thousands)
Parent Company
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
220,633

 
$
205,248

 
$

 
$
425,881

Short-term investments

 
186,808

 

 

 
186,808

Accounts receivable, less allowance

 
203,488

 
112,868

 

 
316,356

Intercompany accounts and notes receivable

 
532,508

 
404,330

 
(936,838
)
 

Inventories

 
186,627

 
325,346

 
(84,422
)
 
427,551

Prepaid expenses

 
56,151

 
7,699

 

 
63,850

Other receivables

 
37,033

 
10,347

 

 
47,380

Other current assets

 
40,866

 
518

 

 
41,384

Total current assets

 
1,464,114

 
1,066,356

 
(1,021,260
)
 
1,509,210

Property and equipment, net

 
807,586

 
239,495

 
(193
)
 
1,046,888

Goodwill

 
1,868,816

 
266,881

 

 
2,135,697

Intangible assets, net

 
786,314

 
1,026,201

 

 
1,812,515

Long-term investments

 
26,050

 

 

 
26,050

Long-term intercompany accounts and notes receivable

 
564,397

 
267,823

 
(832,220
)
 

Investment in subsidiaries
6,151,120

 
1,645,846

 

 
(7,796,966
)
 

Other non-current assets
1,091

 
39,478

 
25,890

 

 
66,459

Total assets
$
6,152,211

 
$
7,202,601

 
$
2,892,646

 
$
(9,650,639
)
 
$
6,596,819

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable
$

 
$
141,792

 
$
66,508

 
$
(2,936
)
 
$
205,364

Intercompany accounts and notes payable

 
404,330

 
532,508

 
(936,838
)
 

Accrued liabilities
25,445

 
93,609

 
18,835

 

 
137,889

Other current liabilities

 
20,122

 
10,426

 

 
30,548

Total current liabilities
25,445

 
659,853

 
628,277

 
(939,774
)
 
373,801

Long-term debt, net
988,130

 

 

 

 
988,130

Deferred tax liabilities
(93,340
)
 
195,462

 
50,038

 

 
152,160

Long-term intercompany accounts and notes payable
232,303

 
267,823

 
332,094

 
(832,220
)
 

Other long-term liabilities

 
39,288

 
43,768

 

 
83,056

Total liabilities
1,152,538

 
1,162,426

 
1,054,177

 
(1,771,994
)
 
1,597,147

Total stockholders’ equity
4,999,673

 
6,040,175

 
1,838,469

 
(7,878,645
)
 
4,999,672

Total liabilities and stockholders’ equity
$
6,152,211

 
$
7,202,601

 
$
2,892,646

 
$
(9,650,639
)
 
$
6,596,819


 
Condensed Consolidating Balance Sheet
 
March 28, 2015
(in thousands)
Parent Company
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents
$

 
$
154,332

 
$
145,482

 
$

 
$
299,814

Short-term investments

 
244,830

 

 

 
244,830

Accounts receivable, less allowance

 
247,533

 
106,297

 

 
353,830

Intercompany accounts and notes receivable

 
482,276

 
194,253

 
(676,529
)
 

Inventories

 
147,660

 
282,190

 
(82,950
)
 
346,900

Prepaid expenses

 
48,508

 
3,661

 

 
52,169

Other receivables

 
25,268

 
548

 

 
25,816

Deferred tax assets
85,150

 
63,965

 
1,093

 

 
150,208

Other current assets

 
25,853

 
685

 

 
26,538

Total current assets
85,150

 
1,440,225

 
734,209

 
(759,479
)
 
1,500,105

Property and equipment, net

 
684,363

 
199,089

 
(81
)
 
883,371

Goodwill

 
1,873,706

 
266,880

 

 
2,140,586

Intangible assets, net

 
988,367

 
1,318,862

 

 
2,307,229

Long-term investments

 
4,083

 

 

 
4,083

Long-term intercompany accounts and notes receivable

 
353,481

 
222,197

 
(575,678
)
 

Investment in subsidiaries
6,163,621

 
1,645,624

 

 
(7,809,245
)
 

Other non-current assets

 
30,158

 
26,847

 

 
57,005

Total assets
$
6,248,771

 
$
7,020,007

 
$
2,768,084

 
$
(9,144,483
)
 
$
6,892,379

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable
$

 
$
138,939

 
$
44,714

 
$
(1,185
)
 
$
182,468

Intercompany accounts and notes payable

 
194,253

 
482,276

 
(676,529
)
 

Accrued liabilities

 
113,451

 
18,420

 

 
131,871

Other current liabilities

 
18,005

 
(7,034
)
 

 
10,971

Total current liabilities

 
464,648

 
538,376

 
(677,714
)
 
325,310

Deferred tax liabilities

 
245,092

 
65,097

 

 
310,189

Long-term intercompany accounts and notes payable
75,611

 
222,197

 
277,870

 
(575,678
)
 

Other long-term liabilities

 
42,571

 
41,149

 

 
83,720

Total liabilities
75,611

 
974,508

 
922,492

 
(1,253,392
)
 
719,219

Total stockholders’ equity
6,173,160

 
6,045,499

 
1,845,592

 
(7,891,091
)
 
6,173,160

Total liabilities and stockholders’ equity
$
6,248,771

 
$
7,020,007

 
$
2,768,084

 
$
(9,144,483
)
 
$
6,892,379


 
Consolidating Statement of Operations and Comprehensive Income (Loss)
 
Fiscal Year Ended April 2, 2016
(in thousands)
Parent Company
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Revenue
$

 
$
2,212,062

 
$
2,762,150

 
$
(2,363,486
)
 
$
2,610,726

Cost of goods sold

 
1,778,336

 
2,060,702

 
(2,277,865
)
 
1,561,173

Gross profit

 
433,726

 
701,448

 
(85,621
)
 
1,049,553

Operating expenses:
 
 
 
 
 
 
 
 

Research and development
67,158

 
106,560

 
304,219

 
(29,174
)
 
448,763

Marketing and selling
28,438

 
127,499

 
285,354

 
(20,824
)
 
420,467

General and administrative
43,920

 
24,315

 
75,239

 
(29,842
)
 
113,632

Other operating expense

 
50,928

 
2,447

 
1,348

 
54,723

Total operating expenses
139,516

 
309,302

 
667,259

 
(78,492
)
 
1,037,585

Income (loss) from operations
(139,516
)
 
124,424

 
34,189

 
(7,129
)
 
11,968

Interest expense
(21,895
)
 
(2,419
)
 
(3,029
)
 
4,027

 
(23,316
)
Interest income

 
2,650

 
3,003

 
(3,585
)
 
2,068

Other income (expense)

 
5,467

 
(298
)
 
1,249

 
6,418

(Loss) income before income taxes
(161,411
)
 
130,122

 
33,865

 
(5,438
)
 
(2,862
)
Income tax (expense) benefit
44,014

 
(49,751
)
 
(20,246
)
 

 
(25,983
)
Income in subsidiaries
88,552

 

 

 
(88,552
)
 

Net (loss) income
$
(28,845
)
 
$
80,371

 
$
13,619

 
$
(93,990
)
 
$
(28,845
)
 
 
 
 
 
 
 
 
 
 
Comprehensive (loss) income
$
(31,854
)
 
$
76,118

 
$
14,862

 
$
(90,980
)
 
$
(31,854
)
 
Consolidating Statement of Operations and Comprehensive Income (Loss)
 
Fiscal Year Ended March 28, 2015
(in thousands)
Parent Company
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Revenue
$

 
$
2,523,495

 
$
1,408,913

 
$
(2,221,442
)
 
$
1,710,966

Cost of goods sold

 
1,910,297

 
1,260,814

 
(2,149,453
)
 
1,021,658

Gross profit

 
613,198

 
148,099

 
(71,989
)
 
689,308

Operating expenses:
 
 
 
 
 
 
 
 

Research and development
18,335

 
202,337

 
45,751

 
(8,929
)
 
257,494

Marketing and selling
7,579

 
101,068

 
78,193

 
(22,183
)
 
164,657

General and administrative
16,197

 
59,470

 
11,862

 
(2,300
)
 
85,229

Other operating expense

 
55,774

 
3,475

 
213

 
59,462

Total operating expenses
42,111

 
418,649

 
139,281

 
(33,199
)
 
566,842

Income (loss) from operations
(42,111
)
 
194,549

 
8,818

 
(38,790
)
 
122,466

Interest expense

 
(2,770
)
 
(1,583
)
 
2,932

 
(1,421
)
Interest income

 
1,009

 
2,281

 
(2,840
)
 
450

Other (expense) income

 
(906
)
 
694

 
(42
)
 
(254
)
Income (loss) before income taxes
(42,111
)
 
191,882

 
10,210

 
(38,740
)
 
121,241

Income tax benefit (expense)
13,350

 
73,268

 
(11,556
)
 

 
75,062

Income in subsidiaries
35,243

 

 

 
(35,243
)
 

Net income (loss)
$
6,482

 
$
265,150

 
$
(1,346
)
 
$
(73,983
)
 
$
196,303

 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
6,482

 
$
269,071

 
$
(4,606
)
 
$
(73,983
)
 
$
196,964

 
Consolidating Statement of Operations and Comprehensive Income
 
Fiscal Year Ended March 29, 2014
(in thousands)
Parent Company
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Revenue
$

 
$
1,794,138

 
$
1,003,550

 
$
(1,649,457
)
 
$
1,148,231

Cost of goods sold

 
1,437,594

 
914,367

 
(1,608,657
)
 
743,304

Gross profit

 
356,544

 
89,183

 
(40,800
)
 
404,927

Operating expenses:
 
 
 
 
 
 
 
 

Research and development

 
186,596

 
12,625

 
(1,952
)
 
197,269

Marketing and selling

 
78,170

 
18,404

 
(21,902
)
 
74,672

General and administrative

 
69,530

 
9,854

 
(2,652
)
 
76,732

Other operating expense

 
10,022

 
17,039

 
1,852

 
28,913

Total operating expenses

 
344,318

 
57,922

 
(24,654
)
 
377,586

Income from operations

 
12,226

 
31,261

 
(16,146
)
 
27,341

Interest expense

 
(6,583
)
 
(1,317
)
 
1,917

 
(5,983
)
Interest income

 
896

 
1,250

 
(1,967
)
 
179

Other income

 
2,223

 
113

 

 
2,336

Income before income taxes

 
8,762

 
31,307

 
(16,196
)
 
23,873

Income tax expense

 
(304
)
 
(10,927
)
 

 
(11,231
)
Net income
$

 
$
8,458

 
$
20,380

 
$
(16,196
)
 
$
12,642

 
 
 
 
 
 
 
 
 
 
Comprehensive income
$

 
$
8,461

 
$
20,090

 
$
(16,196
)
 
$
12,355


 
Condensed Consolidating Statement of Cash Flows
 
Fiscal Year Ended April 2, 2016
(in thousands)
Parent Company
 
Guarantor Subsidiaries
 
Non-guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by operating activities
$
282,955

 
$
273,171

 
$
131,801

 
$

 
$
687,927

Investing activities:
 
 
 
 
 
 
 
 
 
Purchase of available-for-sale securities

 
(340,527
)
 

 

 
(340,527
)
Proceeds from maturities of available-for-sale securities

 
390,009

 

 

 
390,009

Purchase of investments

 
(25,000
)
 

 

 
(25,000
)
Proceeds from the sale of investments

 
11,575

 

 

 
11,575

Purchase of property and equipment

 
(244,817
)
 
(70,807
)
 

 
(315,624
)
Proceeds from sale of property and equipment

 
595

 
258

 

 
853

Net cash used in investing activities

 
(208,165
)
 
(70,549
)
 

 
(278,714
)
Financing activities:
 
 
 
 
 
 
 
 

Proceeds from debt issuances
1,175,000

 

 

 

 
1,175,000

Payment of debt
(175,000
)
 

 

 

 
(175,000
)
Excess tax benefit from exercises of stock options
935

 

 

 

 
935

Debt issuance costs
(13,588
)
 

 

 

 
(13,588
)
Proceeds from the issuance of common stock
51,875

 

 

 

 
51,875

Repurchase of common stock, including transaction costs
(1,300,009
)
 

 

 

 
(1,300,009
)
Tax withholding paid on behalf of employees for restricted stock units
(22,168
)
 

 

 

 
(22,168
)
Restricted cash associated with financing activities

 
131

 

 

 
131

Other financing

 
(28
)
 

 

 
(28
)
Net transactions with related parties

 
1,192

 
(1,192
)
 

 

Net cash (used in) provided by financing activities
(282,955
)
 
1,295

 
(1,192
)
 

 
(282,852
)
Effect of exchange rate changes on cash

 

 
(294
)
 

 
(294
)
Net increase in cash and cash equivalents

 
66,301

 
59,766

 

 
126,067

Cash and cash equivalents at the beginning of the period

 
154,332

 
145,482

 

 
299,814

Cash and cash equivalents at the end of the period
$

 
$
220,633

 
$
205,248

 
$

 
$
425,881


 
Condensed Consolidating Statement of Cash Flows
 
Fiscal Year Ended March 28, 2015
(in thousands)
Parent Company
 
Guarantor Subsidiaries
 
Non-guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by operating activities
$
25,059

 
$
187,786

 
$
92,779

 
$

 
$
305,624

Investing activities:
 
 
 
 
 
 
 
 
 
Purchase of available-for-sale securities

 
(370,734
)
 
(17,000
)
 

 
(387,734
)
Proceeds from maturities of available-for-sale securities

 
234,185

 
27,000

 

 
261,185

Proceeds from the sale of investments

 
297

 

 

 
297

Purchase of business, net of cash acquired

 
165,665

 
58,659

 

 
224,324

Proceeds from the sale of business

 
1,500

 

 

 
1,500

Purchase of intangibles

 
(671
)
 
(429
)
 

 
(1,100
)
Purchase of property and equipment

 
(116,868
)
 
(52,994
)
 

 
(169,862
)
Proceeds from sale of property and equipment

 
7,363

 
85

 

 
7,448

Net cash (used in) provided by investing activities

 
(79,263
)
 
15,321

 

 
(63,942
)
Financing activities:
 
 
 
 
 
 
 
 

Payment of debt

 
(87,503
)
 

 

 
(87,503
)
Excess tax benefit from exercises of stock options
13,993

 

 

 

 
13,993

Debt issuance costs

 
(36
)
 

 

 
(36
)
Proceeds from the issuance of common stock
46,072

 

 

 

 
46,072

Repurchase of common stock, including transaction costs
(50,874
)
 

 

 

 
(50,874
)
Tax withholding paid on behalf of employees for restricted stock units
(34,250
)
 

 

 

 
(34,250
)
Other financing

 
(300
)
 

 

 
(300
)
Net transactions with related parties

 
1,376

 
(1,376
)
 

 

Net cash used in financing activities
(25,059
)
 
(86,463
)
 
(1,376
)
 

 
(112,898
)
Effect of exchange rate changes on cash

 

 
(868
)
 

 
(868
)
Net increase in cash and cash equivalents

 
22,060

 
105,856

 

 
127,916

Cash and cash equivalents at the beginning of the period

 
132,272

 
39,626

 

 
171,898

Cash and cash equivalents at the end of the period
$

 
$
154,332

 
$
145,482

 
$

 
$
299,814


 
Condensed Consolidating Statement of Cash Flows
 
Fiscal Year Ended March 29, 2014
(in thousands)
Parent Company
 
Guarantor Subsidiaries
 
Non-guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by operating activities
$

 
$
100,954

 
$
29,895

 
$

 
$
130,849

Investing activities:
 
 
 
 
 
 
 
 
 
Purchase of available-for-sale securities

 
(125,066
)
 
29

 

 
(125,037
)
Proceeds from maturities of available-for-sale securities

 
129,031

 
1,968

 

 
130,999

Proceeds from the sale of investments

 
2,586

 

 

 
2,586

Purchase of intangibles

 
(1,327
)
 

 

 
(1,327
)
Purchase of property and equipment

 
(45,439
)
 
(21,314
)
 

 
(66,753
)
Proceeds from sale of property and equipment

 
2,383

 
116

 

 
2,499

Net cash used in investing activities

 
(37,832
)
 
(19,201
)
 

 
(57,033
)
Financing activities:
 
 
 
 
 
 
 
 

Excess tax benefit from exercises of stock options

 
50

 

 

 
50

Debt issuance costs

 
(122
)
 

 

 
(122
)
Proceeds from the issuance of common stock

 
17,480

 

 

 
17,480

Repurchase of common stock, including transaction costs

 
(12,780
)
 

 

 
(12,780
)
Tax withholding paid on behalf of employees for restricted stock units

 
(9,113
)
 

 

 
(9,113
)
Other financing

 
240

 

 

 
240

Net transactions with related parties

 
35,106

 
(35,106
)
 

 

Net cash (used in) provided by financing activities

 
30,861

 
(35,106
)
 

 
(4,245
)
Effect of exchange rate changes on cash

 

 
665

 

 
665

Net increase (decrease) in cash and cash equivalents

 
93,983

 
(23,747
)
 

 
70,236

Cash and cash equivalents at the beginning of the period

 
38,289

 
63,373

 

 
101,662

Cash and cash equivalents at the end of the period
$

 
$
132,272

 
$
39,626

 
$

 
$
171,898