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Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Jun. 26, 2011
Jun. 27, 2010
Business, Basis of Presentation and Summary of Significant Accounting Policies [Abstract]    
Interest (Income) Expense, Net
Interest (income) expense, net, for the fiscal years ended June 26, 2011, June 27, 2010, and June 28, 2009 was as follows (in thousands):
 
   
Fiscal Year Ended
 
   
June 26, 2011
  
June 27, 2010
  
June 28, 2009
 
Interest income
 $(10,679) $(11,748) $(13,033)
Interest expense
  565    527    1,339  
Interest income, net
 $(10,114) $(11,221) $(11,694)

 
No interest was capitalized for the fiscal years ended June 26, 2011, June 27, 2010 and June 28, 2009.
 
Changes in Operating Assets and Liabilities
Components of the changes of operating assets and liabilities for the fiscal years ended June 26, 2011, June 27, 2010 and June 28, 2009 were comprised of the following (in thousands):
 
   
Fiscal Year Ended
 
   
June 26, 2011
  
June 27, 2010
  
June 28, 2009
 
Trade accounts receivable
 $(31,475) $(59,013) $4,112 
Inventories
  (86,517)  (18,259)  11,785 
Prepaid expenses and other receivables
  (518)  (949)  12,860 
Accounts payable
  19,714   30,486   (15,078)
Accrued salaries, wages and commissions
  12,788   10,393   (9,927)
Deferred compensation
  1,335   403   (1,117)
Accrued income taxes
  (2,042)  (26,378)  (21,638)
Other accrued expenses
  5,980    (37,417)  13,717  
Changes in operating assets and liabilities
 $(80,735) $(100,734) $(5,286)
 
Supplemental Disclosures of Cash Flow Information
Supplemental disclosures of cash flow information (in thousands):
 
   
Fiscal Year Ended
 
   
June 26, 2011
  
June 27, 2010
  
June 28, 2009
 
Cash paid (received) during the year for:
         
Interest
 $562  $541  $725 
Income taxes
  6,897   (20,172)  7,791 
Non-cash investing activities:
            
Increase (decrease) in liabilities accrued for property, plant and equipment purchases
 $16,054   2,320   1,059 
 
Financial Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
 Financial assets and liabilities measured and recorded at fair value on a recurring basis in the Company’s consolidated balance sheet as of June 26, 2011 (in thousands):
 
Assets and Liabilities:
 
Total
  
Quoted Prices in Active Markets for Identical Assets
(Level 1)
  
Significant Other Observable Inputs
(Level 2)
  
Significant Unobservable Inputs
(Level 3)
 
Cash and cash equivalents
 $15,996  $  $15,996  $ 
Short-term investments
  185,541   70,292   115,249    
Long-term investments
  13,325   9,530   3,014   781 
Other assets
  33,004   30,231      2,773 
Other accrued expenses
  (309)     (309)   
Other long-term liabilities
  (8,038)  (7,638)      (400)
Total
 $239,519   $102,415   $133,950   $3,154  
Fair value as a percentage of total
  100.0%  42.8%  55.9%  1.3%
Level 3 as a percentage of total assets
              0.2%
Financial assets and liabilities measured and recorded at fair value on a recurring basis in the Company’s consolidated balance sheet as of June 27, 2010 (in thousands):
 
Assets and Liabilities:
 
Total
  
Quoted Prices in Active Markets for Identical Assets
(Level 1)
  
Significant Other Observable Inputs
(Level 2)
  
Significant Unobservable Inputs
(Level 3)
 
Cash and cash equivalents
 $27,113  $  $27,113  $ 
Short-term investments
  309,384   226,390   82,994    
Long-term investments
  43,751   6,600   13,818   23,333 
Prepaid expenses and other receivables
  226      226    
Other assets
  27,487   25,508   (146)  2,125 
Other long-term liabilities
  (6,022)  (6,022)        
Total
 $401,939   $252,476   $124,005   $25,458  
Fair value as a percentage of total
  100.0%  62.8%  30.9%  6.3%
Level 3 as a percentage of total assets
              1.8%
Reconciliation of the Beginning and Ending Balance of Items Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs
The following tables provide a reconciliation of the beginning and ending balance of items measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the fiscal year ended June 26, 2011 (in thousands):


   
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
 
   
Liabilities
  
Assets
 
   
Contingent Consideration
  
Derivatives
  
Investments
  
Total
 
Beginning balance at June 27, 2010
 $  $2,121  $23,337  $25,458 
Total gains or (losses) (realized or unrealized):
                
    Included in earnings
     652   7,949   8,601 
    Included in other comprehensive income
        (5,026)  (5,026)
Purchases, maturities, and sales:
                
   Purchases/additions
  400      1,500   1,500 
   Maturities/prepayments
        (3,737)  (3,737)
   Sales
        (21,738)  (21,738)
Transfers into level 3
            
Transfers out of level 3
        (1,504)  (1,504)
Ending balance at June 26, 2011
 $400  $2,773  $781  $3,554 

At the beginning of the second quarter of fiscal year 2011, equity investments in a private domestic company were transferred out of Level 3 securities.  These equity investments, after their initial valuation, have been accounted for on the cost method as they do not have readily determinable fair values.
The following tables provide a reconciliation of the beginning and ending balance of items measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the fiscal year ended June 27, 2010 (in thousands):

   
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
   
Derivatives
  
Investments
  
Total
 
Beginning balance at June 28, 2009
 $  $40,834  $40,834 
Total gains or losses (realized or unrealized):
            
    Included in earnings
     5,084   5,084 
    Included in other comprehensive income
     2,351   2,351 
Purchases, issuance, and settlements:
            
    Purchases/additions
  2,121      2,121 
    Maturities
         
    Sales
     (24,932)  (24,932)
Transfers into Level 3
         
Transfers out of level 3
         
Ending balance at June  27, 2010
 $2,121  $23,337  $25,458
Cash, Restricted Cash, Cash Equivalents and Investments
Cash, restricted cash, cash equivalents and investments as of June 26, 2011 and June 27, 2010 are summarized as follows (in thousands):
 
   
June 26, 2011
  
June 27, 2010
 
Cash and cash equivalents
 $298,731  $229,789 
Short-term investments
  185,541   309,384 
Restricted cash
  2,071   3,666 
Long-term investments
  13,325    43,751  
Total cash, restricted cash, cash equivalents and investments
 $499,668   $586,590
 
Inventories
Inventories at June 26, 2011 and June 27, 2010, were comprised of the following (in thousands):
 
   
June 26, 2011
  
June 27, 2010
Raw materials
 $63,298  $40,805 
Work-in-process
  110,956   77,233 
Finished goods
  75,920    52,130  
Total inventories
 $250,174   $170,168  
 
Property, Plant and Equipment
Property, plant and equipment are stated at cost. Any gain or loss on retirement or disposition is included in operating expenses. Depreciation is provided using the straight-line method based on the estimated useful lives of the assets, ranging from three to 40 years. Depreciation and amortization expense for the fiscal years ended June 26, 2011, June 27, 2010 and June 28, 2009 was $75.3 million, $68.4 million and $63.8 million, respectively. Property, plant and equipment at June 26, 2011 and June 27, 2010 was comprised of the following (in thousands):
 
   
June 26, 2011
  
June 27, 2010
  
Range of Useful Life
 
Building and improvements
 $176,838  $177,713   3 - 40 
Equipment
  1,039,097   937,548   3 - 15 
Less: accumulated depreciation and amortization
  (887,798)  (817,397)    
    328,137   297,864     
Land
  15,894   15,679     
Construction-in-progress
  100,728    34,202      
Total property, plant and equipment
 $444,759   $347,745      
 
Acquisition-Related Intangible Assets
At June 26, 2011 and June 27, 2010, acquisition-related intangible assets included the following (in thousands):
 
   
Amortization
  
June 26, 2011
 
   
Periods
(Years)
  
Gross Carrying
Amount
  
Accumulated
Amortization
  
Net
 
Completed technology
  4 - 12  $52,045  $(28,560) $23,485 
Customer lists
  5 - 12   10,430   (5,455)  4,975 
Intellectual property and other
  2 - 15   16,763    (8,278)  8,485  
Total acquisition-related intangible assets
     $79,238   $(42,293) $36,945  
       
   
Amortization
  
June 27, 2010
 
   
Periods
(Years)
  
Gross Carrying
Amount
  
Accumulated
Amortization
  
Net
 
Completed technology
  4 - 12  $29,679  $(23,379) $6,300 
Customer lists
  5 - 12   5,330   (4,858)  472 
Intellectual property and other
  5 - 15   7,963    (7,289)  674  
Total acquisition-related intangible assets
     $42,972   $(35,526) $7,446  
 
Estimated Amortization Expense
As of June 26, 2011, the following table represents the total estimated amortization of intangible assets for the next five succeeding fiscal years (in thousands):
 
Fiscal Year
 
Estimated Amortization Expense
 
2012
 $8,308 
2013
  6,708 
2014
  6,420 
2015
  6,220 
2016
  4,681 
2017 and thereafter
  4,608 
Total
 $36,945 
 
Goodwill
The carrying amount of goodwill by ongoing segment as of June 26, 2011 and June 27, 2010 was as follows (in thousands):
 
Business Segments:
 
June 26,
2011
  
June 27,
2010
 
Power Management Devices
 $  $ 
Energy Saving Products
  33,190   33,190 
HiRel
  18,959   18,959 
Enterprise Power
  69,421   22,806 
Automotive Products
      
Intellectual Property
        
Total goodwill
 $121,570   $74,955  
 
As of June 26, 2011, $17.2 million of goodwill is deductible for income tax purposes of which $3.0 million was deducted in the fiscal years ended June 26, 2011, June 27, 2010, and June 28, 2009, respectively.
 
The changes in the carrying amount of goodwill for the fiscal years ended June 26, 2011 and June 27, 2010 were as follows (in thousands):
 
Balance, June 28, 2009
 $74,955 
Impairment
    
Balance, June 27, 2010
  74,955 
Additions due to acquisitions
  46,615  
Balance, June 26, 2011
 $121,570  
 
Other Accrued Expenses
Other accrued expenses at June 26, 2011 and June 27, 2010 were comprised of the following (in thousands):
 
   
June 26, 2011
  
June 27, 2010
 
Sales returns
 $34,112  $27,306 
Accrued accounting and legal costs
  9,943   10,855 
Deferred revenue
  16,329   10,200 
Accrued employee benefits
  3,733   3,422 
Accrued divestiture liability
     295 
Accrued warranty
  3,457   2,293 
Accrued utilities
  1,840   1,483 
Accrued repurchase obligation
  3,099   3,518 
Accrued sales and other taxes
  2,829   2,329 
Accrued enterprise resource planning system costs
  8,110   176 
Severance liability
  214   4,249 
Other
  13,736    9,133  
Total other accrued expenses
 $97,402   $75,259
 
Changes in Warranty Reserve
The following table details the changes in the Company’s warranty reserve for the fiscal years ended June 26, 2011, June 27, 2010, and June 28, 2009, which is included in other accrued liabilities in the schedule above (in thousands):
 
Accrued warranty, June 29, 2008
 $2,672 
Accruals for warranties issued during the year
  3,574 
Changes in estimates related to pre-existing warranties
  1,024 
Warranty claim settlements
  (5,503)
Accrued warranty, June 28, 2009
  1,767 
Accruals for warranties issued during the year
  4,000 
Changes in estimates related to pre-existing warranties
  (1,324)
Warranty claim settlements
  (2,150)
Accrued warranty, June 27, 2010
  2,293 
Accruals for warranties issued during the year
  5,005 
Changes in estimates related to pre-existing warranties
  (1,228)
Warranty claim settlements
  (2,613)
Accrued warranty, June 26, 2011
 $3,457  
 
Other Long-Term Liabilities
Other long-term liabilities at June 26, 2011 and June 27, 2010 were comprised of the following (in thousands):
 
   
June 26, 2011
  
June 27, 2010
 
Income taxes payable
 $17,092  $18,825 
Divested entities’ tax obligations
  3,985   5,523 
Deferred compensation
  9,324   7,357 
Other
  5,098    2,799  
Total other long-term liabilities
 $35,499   $34,504
 
Accumulated Other Comprehensive (Loss) Income
The components of accumulated other comprehensive (loss) income as of June 26, 2011, June 27, 2010, and June 28, 2009 were as follows (in thousands):
   
June 26, 2011
  
June 27, 2010
  
June 28, 2009
 
Foreign currency translation adjustments
 $(7,904) $(15,680)  (637)
Net unrealized gains on foreign currency forward contracts
        1,565 
Net unrealized gains on available-for-sale securities
  5,290    5,452    4,707  
Accumulated other comprehensive (loss) income
 $(2,614) $(10,228) $5,635