XML 39 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Operating Segment and Geographical Information
 12 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
OPERATING SEGMENT AND GEOGRAPHIC INFORMATION
OPERATING SEGMENT AND GEOGRAPHIC INFORMATION

The Company's operating segments as of March 31, 2018 are MP and IDP based on the organizational structure and information reviewed by the Company's Chief Executive Officer, who is the Company's chief operating decision maker ("CODM"), and these segments 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.

MP is a leading global supplier of cellular RF and Wi-Fi solutions for a variety of mobile devices, including smartphones, notebook computers, wearables, tablets, and cellular-based applications for the IoT. Mobile device manufacturers and mobile network operators are adopting new technologies to address the growing demand for data-intensive, increasingly cloud-based distributed applications and for mobile devices with smaller form factors, improved signal quality, less heat and longer talk and standby times. New wireless communications standards are being deployed to utilize available spectrum more efficiently. Carrier aggregation is being implemented to support wider bandwidths, increase data rates and improve network performance. These trends increase the complexity of smartphones, require more RF content and place a premium on performance, integration, systems-level expertise, and product and technology portfolio breadth, all of which are MP strengths. MP offers a comprehensive product portfolio of BAW and SAW filters, power amplifiers ("PAs"), low noise amplifiers ("LNAs"), switches, multimode multi-band PAs and transmit modules, RF power management integrated circuits, diversity receive modules, antenna switch modules, antenna tuning and control solutions, modules incorporating PAs and duplexers and modules incorporating switches, PAs and duplexers.

IDP is a leading global supplier of RF solutions with a diverse portfolio of solutions that "connect and protect," spanning communications and defense applications. These applications include high performance defense systems such as radar, electronic warfare and communication systems, Wi-Fi customer premises equipment for home and work, high speed connectivity in Long-Term Evolution and 5G base stations, cloud connectivity via data center communications and telecom transport, automotive connectivity and other IoT, including smart home solutions. IDP products include high power GaAs and GaN PAs, LNAs, switches, CMOS SoC solutions, premium BAW and SAW filter solutions and various multi-chip and hybrid assemblies.  

The “All other” category includes operating expenses such as stock-based compensation, amortization of intangible assets, acquisition and integration related costs, restructuring and disposal costs, start-up costs, (loss) gain on assets 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 intercompany 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
 
2018
 
2017
 
2016
Revenue:
 
 
 
 
 
MP
$
2,181,161

 
$
2,384,041

 
$
2,083,334

IDP
788,495

 
644,653

 
523,512

All other (1)
3,880

 
3,880

 
3,880

Total revenue
$
2,973,536

 
$
3,032,574

 
$
2,610,726

Income from operations:
 
 
 
 
 
MP
$
549,574

 
$
554,001

 
$
591,751

IDP
235,719

 
152,539

 
108,370

All other
(715,011
)
 
(618,481
)
 
(688,153
)
Income from operations
$
70,282

 
$
88,059

 
$
11,968

Interest expense
$
(59,548
)
 
$
(58,879
)
 
$
(23,316
)
Interest income
7,017

 
1,212

 
2,068

Other (expense) income
(606
)
 
(3,087
)
 
6,418

Income (loss) before income taxes
$
17,145

 
$
27,305

 
$
(2,862
)


(1) "All other" revenue relates to royalty income that is not allocated to MP or IDP.
 
Fiscal Year
 
2018
 
2017
 
2016
Reconciliation of “All other” category:
 
 
 
 
 
Stock-based compensation expense
$
(68,158
)
 
$
(88,845
)
 
$
(139,516
)
Amortization of intangible assets
(539,362
)
 
(494,387
)
 
(494,589
)
Acquisition and integration related costs
(10,561
)
 
(25,391
)
 
(26,503
)
Restructuring charges
(21,406
)
 
(1,696
)
 
(4,235
)
Start-up costs
(24,271
)
 
(9,694
)
 
(14,110
)
Other (including loss (gain) on assets and other miscellaneous corporate overhead)
(51,253
)
 
1,532

 
(9,200
)
Loss from operations for “All other”
$
(715,011
)
 
$
(618,481
)
 
$
(688,153
)


As a result of restructuring actions initiated in fiscal 2018, the Company adjusted the carrying value of certain of its held for sale assets located in China and the U.S., and recorded impairment charges totaling approximately $46.3 million. The fair value of the assets is based on quotes from third parties. See Note 11 for further information on the restructuring.

The consolidated financial statements include revenue to customers by geographic region that are summarized as follows (in thousands):
 
Fiscal Year
 
2018
 
2017
 
2016
Revenue:
 
 
 
 
 
United States
$
524,472

 
$
467,031

 
$
306,328

International
2,449,064

 
2,565,543

 
2,304,398

 
Fiscal Year
 
2018
 
2017
 
2016
Revenue:
 
 
 
 
 
United States
18%
 
15%
 
12%
Asia
78
 
81
 
83
Europe
3
 
3
 
4
Other
1
 
1
 
1


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 revenue for fiscal 2018, approximately 52% ($1,539.7 million) was from customers in China and 19% ($564.8 million) from customers in Taiwan. Of the Company’s revenue for fiscal years 2017 and 2016, approximately 62% ($1,866.0 million) and 61% ($1,601.0 million), respectively, was from customers in China and 13% ($398.4 million) and 14% ($365.1 million), respectively, was from customers in Taiwan.

The consolidated financial statements include the following long-lived tangible asset amounts related to operations of the Company by geographic region (in thousands):
 
March 31, 2018
 
April 1, 2017
 
April 2, 2016
Long-lived tangible assets:
 
 
 
 
 
United States
$
1,089,157

 
$
1,082,754

 
$
816,882

China
217,205

 
244,728

 
183,836

Other countries
67,750

 
64,450

 
46,170