Change in Estimate

3 Months Ended

Jul. 01, 2017

Accounting Changes and Error Corrections [Abstract]

Change in Estimate

CHANGE IN ESTIMATE

During the first quarter of fiscal 2018, the Company changed its accounting estimate for the expected useful lives of certain machinery and equipment. The Company evaluated its current asset base and reassessed the estimated useful lives of certain machinery and equipment in connection with its implementation of several capital projects, including the migration of certain surface acoustic wave ("SAW") processes from 4-inch to 6-inch toolsets and certain bulk acoustic wave ("BAW") processes from 6-inch to 8-inch toolsets. Based on its ability to re-use equipment across generations of process technologies and historical usage trends, the Company determined that the expected useful lives for certain machinery and equipment should be increased by up to three years to reflect more closely the estimated economic lives of those assets. This change in estimate was applied prospectively effective for the first quarter of fiscal 2018 and resulted in a decrease in depreciation expense of $14.2 million for the three months ended July 1, 2017. This benefit increased income from operations by $2.2 million and decreased ending inventory by $12.0 million as of July 1, 2017. Net income increased by $1.5 million and diluted earnings per share increased by $0.01 for the three months ended July 1, 2017 as a result of this change in accounting estimate.