10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________

FORM 10-Q

______________________________

(Mark One)

/x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 3, 2016 OR

/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File No. 0-12695

INTEGRATED DEVICE TECHNOLOGY, INC.

(Exact Name of Registrant as Specified in Its Charter)

DELAWARE (State or Other Jurisdiction of Incorporation or Organization)	94-2669985 (I.R.S. Employer Identification No.)
6024 SILVER CREEK VALLEY ROAD, SAN JOSE, CALIFORNIA (Address of Principal Executive Offices)	95138 (Zip Code)

Registrant's Telephone Number, Including Area Code: (408) 284-8200

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ý No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. 

ý  Large accelerated filer                           ¨   Accelerated filer                            ¨  Non-accelerated filer               ¨ Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes o No ý

The number of outstanding shares of the registrant's Common Stock, $.001 par value, as of February 5, 2016 was approximately 135,373,226.

INTEGRATED DEVICE TECHNOLOGY, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

PART I-FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets as of January 3, 2016 and March 29, 2015	3
	Condensed Consolidated Statements of Operations for the three and nine months ended January 3, 2016 and December 28, 2014	4
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended January 3, 2016 and December 28, 2014	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended January 3, 2016 and December 28, 2014	6
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4.	Controls and Procedures	41
PART II-OTHER INFORMATION
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 3.	Defaults Upon Senior Securities	51
Item 4.	Mine Safety Disclosures	51
Item 5.	Other Information	51
Item 6.	Exhibits	52
	Signatures	53

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INTEGRATED DEVICE TECHNOLOGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)	January 3, 2016			March 29, 2015
Assets
Current assets:
Cash and cash equivalents	$	152,992		$	116,945
Short-term investments	199,328			438,115
Accounts receivable, net of allowances of $3,378 and $4,664	65,916			63,618
Inventories	54,785			45,410
Prepayments and other current assets	12,568			16,041
Total current assets	485,589			680,129
Property, plant and equipment, net	73,769			65,508
Goodwill	305,733			135,644
Other intangible assets, net	137,489			5,535
Other assets	29,081			26,843
Total assets	$	1,031,661		$	913,659
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	30,654		28,006
Accrued compensation and related expenses	53,154			43,649
Deferred income on shipments to distributors	8,523			15,694
Deferred tax liabilities	—			1,401
Other accrued liabilities	16,365			17,582
Total current liabilities	108,696			106,332
Deferred tax liabilities	21,106			1,121
Long-term income tax payable	959			347
Convertible notes	269,031			—
Other long-term liabilities	22,093			17,605
Total liabilities	421,885			125,405
Commitments and contingencies (Note 14)
Stockholders' equity:
Preferred stock: $0.001 par value: 10,000 shares authorized; no shares issued	—			—
Common stock: $0.001 par value: 350,000 shares authorized; 136,900 and 148,414 shares outstanding at January 3, 2016 and March 29, 2015, respectively	137			148
Additional paid-in capital	2,567,558			2,510,868
Treasury stock at cost: 114,344 shares at January 3, 2016 and 99,849 shares at March 29, 2015, respectively	(1,444,763		)	(1,100,546		)
Accumulated deficit	(506,909		)	(620,035		)
Accumulated other comprehensive loss	(6,247		)	(2,181		)
Total stockholders' equity	609,776			788,254
Total liabilities and stockholders' equity	$	1,031,661		$	913,659

The accompanying notes are an integral part of these condensed consolidated financial statements.

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INTEGRATED DEVICE TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended						Nine Months Ended
(Unaudited, in thousands, except per share data)	January 3, 2016			December 28, 2014			January 3, 2016			December 28, 2014
Revenues	$	177,610		$	151,160		$	508,015		$	414,555
Cost of revenues	69,699			59,796			194,324			167,306
Gross profit	107,911			91,364			313,691			247,249
Operating expenses:
Research and development	38,429			32,825			107,484			95,617
Selling, general and administrative	38,851			27,165			96,221			79,419
Total operating expenses	77,280			59,990			203,705			175,036
Operating income	30,631			31,374			109,986			72,213
Interest income (expense) and other, net	(2,008		)	1,558			826			2,825
Income before income taxes from continuing operations	28,623			32,932			110,812			75,038
Income tax provision (benefit)	(3,922		)	91			(2,876		)	840
Net income from continuing operations	32,545			32,841			113,688			74,198
Discontinued operations:
Gain from divestiture before income taxes	—			—			—			16,840
Loss from discontinued operations before income taxes	—			(14,538		)	(547		)	(36,438		)
Income tax provision (benefit)	—			(55		)	15			(43		)
Net loss from discontinued operations	—			(14,483		)	(562		)	(19,555		)
Net income	$	32,545		$	18,358		$	113,126		$	54,643
Basic net income per share - continuing operations	$	0.23		$	0.22		$	0.78		$	0.50
Basic net income (loss) per share - discontinued operations	—			(0.10		)	$	—		$	(0.13	)
Basic net income per share	$	0.23		$	0.12		$	0.78		$	0.37
Diluted net income per share - continuing operations	$	0.22		$	0.21		$	0.75		$	0.48
Diluted net loss per share - discontinued operations	—			(0.09		)	$	—		$	(0.12	)
Diluted net income per share	$	0.22		$	0.12		$	0.75		$	0.36
Weighted average shares:
Basic	140,411			148,552			145,382			148,844
Diluted	145,705			153,973			150,614			153,904

The accompanying notes are an integral part of these condensed consolidated financial statements.

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INTEGRATED DEVICE TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended						Nine Months Ended
(Unaudited, in thousands)	January 3, 2016			December 28, 2014			January 3, 2016			December 28, 2014
Net income	$	32,545		$	18,358		$	113,126		$	54,643
Other comprehensive loss, net of taxes:
Currency translation adjustments, net of tax	(1,040		)	(1,562		)	(2,044		)	(2,817		)
Change in net unrealized loss on investments, net of tax	(731		)	(576		)	(1,409		)	(592		)
Actuarial loss on post-employment and post-retirement benefit plans, net of tax	(2		)	(2		)	(613		)	(7		)
Total other comprehensive loss	(1,773		)	(2,140		)	(4,066		)	(3,416		)
Comprehensive income	$	30,772		$	16,218		$	109,060		$	51,227

The accompanying notes are an integral part of these condensed consolidated financial statements.

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INTEGRATED DEVICE TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended
(Unaudited, in thousands)	January 3, 2016			December 28, 2014
Cash flows from operating activities:
Net income	$	113,126		$	54,643
Adjustments:
Depreciation	13,056			14,557
Amortization of intangible assets	5,628			5,572
Amortization of debt issuance cost and debt discount	2,164			—
Impairment of assets held for sale	—			8,471
Gain from divestiture	—			(16,840		)
Gain on sale of property, plant and equipment	(325		)	—
Stock-based compensation expense, net of amounts capitalized in inventory	25,878			16,562
Deferred tax provision (benefit)	(4,147		)	50
Tax benefit from share-based payment arrangements	(115		)	—
Changes in assets and liabilities:
Accounts receivable, net	8,319			(7,390		)
Inventories	10,446			8,836
Prepayments and other assets	4,532			(854		)
Accounts payable	(2,832		)	718
Accrued compensation and related expenses	(5,427		)	13,606
Deferred income on shipments to distributors	(7,171		)	1,238
Income taxes payable and receivable	(70		)	(352		)
Other accrued liabilities and long-term liabilities	(4,079		)	12,282
Net cash provided by operating activities	158,983			111,099
Cash flows from investing activities:
Acquisitions, net of cash acquired	(279,138		)	—
Cash in escrow related to acquisitions	2,700			1,026
Proceeds from divestitures	—			15,300
Investment in convertible note	(2,020		)	—
Purchases of property, plant and equipment, net	(12,541		)	(12,418		)
Purchases of intangible assets	(10,800		)	—
Purchase of cost-method investment	—			(4,000		)
Purchases of short-term investments	(313,246		)	(163,292		)
Proceeds from sales of short-term investments	466,890			76,848
Proceeds from maturities of short-term investments	80,695			64,298
Net cash used in investing activities	(67,460		)	(22,238		)
Cash flows from financing activities:
Proceeds from issuance of common stock	16,516			14,822
Prepayments for purchase of treasury stock	(45,000		)	—
Proceeds from issuance of senior convertible notes, net of issuance costs	363,445			—
Purchase of convertible note hedge	(94,185		)	—
Proceeds from issuance of warrants	56,847			—
Repurchase of common stock	(344,216		)	(62,684		)
	Nine Months Ended

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(Unaudited, in thousands)	January 3, 2016			December 28, 2014
Payment of acquisition related contingent consideration	—			(1,600		)
Repayment of loans	(9,195		)	—
Excess tax benefit from share-based payment arrangements	115			—
Net cash used in financing activities	(55,673		)	(49,462		)
Effect of exchange rates on cash and cash equivalents	197			(2,823		)
Net increase in cash and cash equivalents	36,047			36,576
Cash and cash equivalents at beginning of period	116,945			91,211
Cash and cash equivalents at end of period	$	152,992		$	127,787

Noncash investing activity:

Conversion of a cost method investment in convertible note to ordinary shares of stock $ (2,020 ) $ —

The accompanying notes are an integral part of these condensed consolidated financial statements.

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INTEGRATED DEVICE TECHNOLOGY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Summary of Significant Accounting Policies

Nature of Business.  Integrated Device Technology, Inc. (IDT or the Company) designs, develops, manufactures and markets a broad range of integrated circuits for the advanced communications, computing, consumer and automotive industries.

Basis of Presentation.  The Company's fiscal year is the 52 or 53 week period ending on the Sunday closest to March 31. In a 52 week year, each fiscal quarter consists of 13 weeks. In a 53 week year, the additional week is usually added to the third quarter, making such quarter consist of 14 weeks. The first and second quarters of fiscal 2016 and fiscal 2015 were 13 week periods, the third quarter of fiscal 2016 was 14 weeks, and the third quarter of fiscal 2015 was 13 weeks.

On December 7, 2015, the Company completed its acquisition of Zentrum Mikroelektronik Dresden AG (ZMDI), a privately-held company mainly operating in Germany, for a purchase price of Euro-equivalent of $307.0 million. The unaudited condensed consolidated financial statements include the results of operations of ZMDI, commencing on the closing date of the acquisition.

Principles of Consolidation.  The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated.

Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Significant Accounting Policies. For a description of significant accounting policies, see Note 1, Summary of Significant Accounting Policies to the consolidated financial statements included in the Company's annual report on Form 10-K for the fiscal year ended March 29, 2015. There have been no material changes to the Company's significant accounting policies since the filing of the annual report on Form 10-K, with the exception of recently adopted accounting policies listed below.

In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the condensed consolidated financial statements for the interim period.

Accounting for Business Combinations. The Company uses the acquisition method of accounting, which is in accordance with ASC 805, Business Combinations, for business combinations and recognizes assets acquired and liabilities assumed measured at their fair values on the date acquired. This requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While management uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company adjusts the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in the Company's Consolidated Statements of Operations.

Accounting for business combinations requires management to make significant estimates and assumptions, especially at the acquisition date, including estimates for intangible assets, contractual obligations assumed, restructuring liabilities, pre-acquisition contingencies and contingent consideration, where applicable. Although the Company believes the assumptions and estimates made in the past have been reasonable and appropriate, they are based, in part, on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Critical estimates in valuing certain of the intangible assets that the Company have acquired include, but are not limited to future expected cash flows from product sales, customer contracts and acquired technologies, and discount rates. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates or actual results.

Trade Receivables Factoring Facility.The Company assumed an agreement with a financial institution to sell certain of its trade receivables from customers with limited, non-credit-related recourse provisions as part of the acquisition during the quarter ended January 3, 2016. Total receivables sold under the factoring facility during the quarter ended January 3, 2016 was $3.1 million. Total collections from the sale of receivables and from deferred purchase payments during the quarter ended January 3, 2016 were $4.2 million and $0.4 million, respectively. Under the terms of the factoring agreement, the total available amount of the factoring facility as of January 3, 2016 was $2.9 million. The sales of accounts receivable in accordance with the factoring agreement are reflected as a reduction of Accounts Receivable, net in the Condensed Consolidated Balance Sheets as they meet the applicable criteria of ASC 860, Transfers and Servicing. Collections of deferred purchase payments are included in the change in accounts receivable under the operating activities section of the Condensed Consolidated Statements of Cash Flows. The amount due from the factoring institution was $0.5 million at January 3, 2016, and is shown in Prepayments and Other Current Assets in the Condensed

8

Consolidated Balance Sheets. The Company pays factoring fees associated with the sale of receivables based on the dollar value of the receivables sold. Such fees are not material for the quarter ended January 3, 2016.

Recent Accounting Pronouncements

Accounting Pronouncements Adopted in Fiscal 2016

In November 2015, the Financial Accounting Standards Board (FASB) issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, amending the current accounting guidance and requiring an entity to classify all deferred tax assets and liabilities as non-current in a classified statement of financial position. The standard is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted and the standard may be adopted either prospectively or retrospectively. The Company has early adopted the standard prospectively in the quarter ended January 3, 2016. The adoption resulted in a reclassification from current deferred tax liabilities of $1.4 million, net of deferred non-current tax assets of $0.7 million, to non-current deferred tax liabilities.

In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, that requires an entity to present debt issuance costs on the balance sheet as a direct deduction from the related debt liability as opposed to an asset. Amortization of the costs will continue to be reported as interest expense. The update is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued, and the new guidance would be applied retrospectively to all prior periods presented. The Company has early adopted the standard in the quarter ended January 3, 2016. There was no impact to prior periods.

Accounting Pronouncements Not Yet Effective for Fiscal 2016

In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The guidance simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. The guidance eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, and require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The guidance also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements is required under this guidance. The guidance further clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The guidance is applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and is effective for the Company in its first quarter of fiscal 2018. Early adoption is permitted only if certain criteria is met. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements and related disclosures.

In September 2015, the FASB issued ASU No. 2015-16, Simplifying Accounting for Measurement-period Adjustment, which provides that an acquirer should recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Under this guidance, the acquirer is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. It is also required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. Early adoption is permitted. The guidance is applied prospectively and is effective for the Company in its first quarter of fiscal years 2017.

In July 2015, the FASB issued guidance applying to inventory measured using any other method other than last-in, last-out method. Under this guidance, inventory is measured at the lower of cost and net realizable value. The net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is applied prospectively and is effective for the Company in its first quarter of fiscal 2018. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial statements and related disclosures.

9

On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. On July 9, 2015, the FASB decided to delay the effective date by one year to December 15, 2017 for annual periods beginning after that date. The FASB also decided to allow early adoption of the standard, but not before the original effective date of December 15, 2016. The Company is currently evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

Note 2. Net Income Per Share

Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common and dilutive potential common shares outstanding during the period. Potential common shares include employee stock options and restricted stock units. For purposes of computing diluted net income per share, weighted average potential common shares do not include potential common shares that are anti-dilutive under the treasury stock method.

The following table sets forth the computation of basic and diluted net income per share from continuing operations: 

	Three Months Ended				Nine Months Ended
(in thousands, except per share amounts)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
Numerator (basic and diluted):
Net income from continuing operations	$	32,545	$	32,841	$	113,688	$	74,198
Denominator:
Weighted average common shares outstanding, basic	140,411		148,552		145,382		148,844
Dilutive effect of employee stock options and restricted stock units	5,294		5,421		5,232		5,060
Weighted average common shares outstanding, diluted	145,705		153,973		150,614		153,904
Basic net income per share from continuing operations	$	0.23	$	0.22	$	0.78	$	0.50
Diluted net income per share from continuing operations	$	0.22	$	0.21	$	0.75	$	0.48

Potential dilutive common shares of 0.4 million and 22 thousand pertaining to employee stock options and restricted stock units were excluded from the calculation of diluted earnings per share for the three months ended January 3, 2016 and December 28, 2014, respectively, because the effect would have been anti-dilutive. Potential dilutive common shares of 0.4 million and 0.3 million pertaining to employee stock options and restricted stock units were excluded from the calculation of diluted earnings per share for the nine months ended January 3, 2016 and December 28, 2014, respectively, because the effect would have been anti-dilutive.

The denominator for diluted net income per share for three months and nine months ended January 3, 2016 does not include any effect from the 0.875% Convertible Senior Notes due 2022, or the Convertible Notes. In accordance with ASC 260, Earnings per Share, the Convertible Notes will not impact the denominator for diluted net income per share unless the average price of our common stock, as calculated under the terms of the Notes, exceeds the conversion price of $33.45 per share. Likewise, the denominator for diluted net income per share will not include any effect from the warrants unless the average price of our common stock, as calculated under the terms of the warrants, exceeds $48.66 per share.

The denominator for diluted net income per share for three months and nine months ended January 3, 2016 also does not include any effect from the convertible note hedge transaction, or the Note Hedges. In future periods, the denominator for diluted net income per share will exclude any effect of the Note Hedges, as their effect would be anti-dilutive. In the event an actual conversion of any or all of the Convertible Notes occurs, the shares that will be delivered to us under the Note Hedges are designed to neutralize the dilutive effect of the shares that the Company will issue under the Convertible Notes. Refer to Note 16 for further discussion regarding the Convertible Notes.

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Note 3. Business Combination

Acquisition of Zentrum Mikroelektronik Dresden AG

On December 7, 2015, the Company completed its purchase all of the outstanding no-par-value shares of Zentrum Mikroelektronik Dresden AG (ZMDI), a privately-held company mainly operating in Germany, in an all-cash transaction for approximately $307.0 million. ZMDI is a global supplier of sensing products for mobile, automotive and industrial solutions. The acquisition provides the Company a significant new growth opportunity in the automotive and industrial business.

Total consideration consisted of the following:

(in thousands)
Cash paid to ZMDI shareholders	$	307,030
Less: cash acquired	(27,892		)
Total purchase price, net of cash acquired	$	279,138

The total cash consideration paid includes a Euro-equivalent of $20.0 million which is maintained in an escrow account and will be released to the selling shareholders upon meeting of certain conditions in accordance with the escrow agreement.

The Company allocated the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess purchase price over those fair values was recorded as goodwill. Because the Acquisition was structured as a stock acquisition for income tax purposes, none of the asset step-up or asset recognition required by purchase accounting, including the goodwill described below, is deductible for tax purposes.

The fair value of cash, accounts receivable, other current assets, accounts payable, and other accrued liabilities were generally determined using historical carrying values given the short-term nature of these assets and liabilities. The fair values for acquired inventory, property, plant and equipment and intangible assets were determined with the input from third-party valuation specialist. The fair values of certain other liabilities were determined internally using historical carrying values and estimates made by management. As additional information becomes available, the Company  may revise the preliminary purchase price allocation during the remainder of the measurement period (which will not exceed 12 months from the acquisition date). Any such revisions or changes may be material.

The financial results of the ZMDI have been included in the Company’s Condensed Consolidated Statements of Operations from December 7, 2015, the closing date of the acquisition. The Company's results of continuing operations for the quarter ended January 3, 2016 include $3.4 million of net revenue attributable to ZMDI. The Company incurred approximately $2.1 million of acquisition related costs for the three months ended January 3, 2016 and these costs were included in Selling, General and Administrative Expenses in the Condensed Consolidated Statements of Operations. Goodwill is primarily attributable to the assembled workforce of ZMDI, anticipated synergies and economies of scale expected from the operations of the combined company.

The Company's preliminary allocation of the purchase price as of December 7, 2015 is as follows:

(in thousands)	Estimated Fair Value
Cash	$	27,892
Accounts receivable	10,618
Inventories	19,892
Other current assets	1,551
Property, plant and equipment	9,287
Other non-current assets	2,003
Intangible assets	126,200
Goodwill	170,089
Accounts payable	(5,633		)
Accrued and other current liabilities	(19,141		)
Loans payable	(9,437		)
Deferred tax liability	(23,467		)
Other long term liabilities	(2,824		)
Total purchase price	$	307,030

A summary of the preliminary allocation of intangible assets is as follows:

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(in thousands)	Estimated Fair Value		Estimated Useful Life (in years)
Developed technology	$	75,600	7
Customer relationships	44,000		7
Backlog	5,800		1
Trademarks	800		1
Total	$	126,200

Identifiable Tangible Assets and Liabilities:

Assets and liabilities were reviewed and adjusted, if required, to their estimated fair value.

Inventory:

The value allocated to inventories reflects the estimated fair value of the acquired inventory based on the expected sales price of the inventory, less reasonable selling margin.

Bank Loans:

The Company assumed liabilities of ZMDI which include outstanding bank loans of approximately $9.4 million as of December 7, 2015. The Company subsequently paid $9.2 million of the assumed amount which reduced the outstanding balance to $0.2 million as of January 3, 2016.

Intangible Assets:

The allocation of the purchase price to tangible and identified intangible assets acquired was based on our best estimate of the fair value of such assets as of the acquisition date. The fair value of acquired tangible and identified intangible assets was determined based on inputs that are unobservable and significant to the overall fair value measurement.

Developed technology consists of ZMDI's products that have reached technological feasibility. The Company valued the developed technology utilizing a multi-period excess earnings (MPEE) method , which uses the discounted future earnings specifically attributed to this intangible asset that is in excess of returns for other assets that contributed to those earnings. The economic useful life was determined based on the technology cycle related to the products and its expected contribution to forecasted revenue. The Company utilized a discount rate of 13.5% in estimating the fair value of the developed technology.

Customer relationships represent the fair value of future projected revenue that is expected to be derived from sales of products to existing customers of the acquired company. Customer contracts and related relationships value has been estimated utilizing a with-and-without method, which uses projected cash flows with and without the intangible asset in place. Cash flow differentials are then discounted to present value to arrive at an estimate of fair value for the asset. The economic useful life was determined based on the life of the developed technology, assuming that the existing customers will remain with the Company until the developed technology becomes obsolete. The Company utilized a discount rate of 13.5% in estimating the fair value of the customer relationships.

Order backlog represents business under existing contractual obligations as of the acquisition date. The fair value of backlog was determined using the MPEE method under the income approach based on expected operating cash flows from future contractual revenue. The economic useful life was determined based on the expected life of the backlog and the cash flows over the forecast period. The Company utilized a discount rate of 5.4% in estimating the fair value of the order backlog.

Trademark relates to ZMDI’s product brand and its fair value was determined by applying the relief-from-royalty method under the income approach. This valuation method is based on the application of a royalty rate to forecasted revenue under the respective trade name and involves discounting net cash flows resulting from the forecast of avoided royalties over a transition period, giving consideration to the cost of capital estimate as well as the risk and timing of the cash flows associated with this asset relative to the other asset classes. The economic useful life was determined based on the expected life of the trade name and the cash flows anticipated over the forecasted periods. The Company utilized a discount rate of 13.5% in estimating the fair value of the trade name and trademark.

Pro Forma Financial Information (unaudited):

The following unaudited pro forma financial information present combined results of operations for each of the periods presented, as if ZMDI had been acquired as of the beginning of fiscal year 2015. The pro forma financial information include the business combination effect of the amortization charges from acquired intangible assets, the amortization of fair market value inventory write-up and acquisition-related costs. The pro forma data is for informational purposes only and is not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal

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year 2015 or of the results of future operations of the combined business. Consequently, actual results will differ from the unaudited pro forma information presented below:

	Three Months Ended				Nine Months Ended
(Unaudited in thousands, except per share data)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
Revenues	$	190,408	$	170,425	$	561,646	$	476,862
Net income	$	29,948	$	26,147	$	114,179	$	54,898
Basic net income per share - continuing operations	$	0.21	$	0.18	$	0.79	$	0.37
Diluted net income per share - continuing operations	$	0.21	$	0.17	$	0.76	$	0.36

Note 4. Discontinued Operations

High-Speed Converter (“HSC”) Business

In fiscal 2014, the Company initiated a project to divest its HSC business and has classified the related assets, as held for sale. The HSC business included the assets of NXP B.V.’s Data Converter Business and Alvand Technologies, Inc., which were acquired in fiscal 2013.

On May 30, 2014, the Company completed the sale of certain assets related to the Alvand portion of the HSC business to a buyer pursuant to an Asset Purchase Agreement. Upon the closing of the transaction, the buyer paid the Company $18.0 million in cash consideration, of which $2.7 million was initially held in an escrow account and was paid to the Company in December 2015. The Company recorded a gain of $16.8 million in discontinued operations related to this divestiture during the first quarter of fiscal 2015. The following table summarizes the components of the gain (in thousands):

	Amount
Cash proceeds from sale (including amounts held in escrow)	$	18,000
Less book value of assets sold and direct costs related to the sale:
Intangible assets	(990		)
Transaction and other costs	(170		)
Gain on divestiture	$	16,840

Following the sale of assets related to the Alvand portion of the HSC business, the business had remaining long-lived assets classified as held for sale amounting to $8.5 million, which consisted of $2.9 million in fixed assets and $5.6 million in intangible assets. The Company evaluated the carrying value of the disposal group and determined that it exceeded its estimated fair value based on estimated selling price less cost to sell. Accordingly, total impairment charge of $8.5 million was recorded as loss from discontinued operations in the Condensed Consolidated Statement of Operations in the first quarter of fiscal 2015.

As of March 29, 2015, all long-lived assets related to the HSC business were fully impaired.

On April 27, 2015, the Company completed the sale of the remaining HSC business to eSilicon, for $1.5 million which will be paid on or before April 27, 2017. In connection with the sale, the Company entered into an Exclusive Intellectual Property License Agreement with eSilicon, whereby the Company provided an exclusive license to eSilicon to develop, manufacture, sell and maintain HSC products. In connection with the sale, the Company and eSilicon also entered into a Transition Services Agreement, whereby the Company will provide certain transition services over a specific period from the effective date of the sale. The transition services do not represent significant continuing involvement of the Company in the HSC business.

As of January 3, 2016, the Company had a receivable of $1.5 million representing uncollected proceeds from the sale that was included under Other Assets on the Condensed Consolidated Balance Sheet. Given the term of the sale, the Company deferred the gain from this divestiture and will recognize it into discontinued operations when collectibility becomes certain. The following table summarizes the components of the deferred gain which was included under Other Long-term Liabilities on the Condensed Consolidated Balance Sheet as of January 3, 2016:

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(in thousands)	Amount
Sale price	$	1,500
Less book value of assets sold	(115		)
Deferred gain on divestiture	$	1,385

The HSC business was included in the Company’s Communications reportable segment. For financial statements purposes, the results of operations for the HSC business have been segregated from those of the continuing operations and are presented in the Company's condensed consolidated financial statements as discontinued operations.

As a result of the sale of HSC business in April 2015, there are no results presented for the three months ended January 3, 2016. The results of the HSC business for the three months ended December 28, 2014 and nine months ended January 3, 2016 and December 28, 2014 were as follows (in thousands):

	Three Months Ended			Nine Months Ended
	December 28, 2014			January 3, 2016			December 28, 2014
Revenues	$	701		$	176		$	3,039
Cost of revenues	(441		)	(477		)	(1,459		)
Long-lived assets impairment	—			—			(8,471		)
Restructuring costs (see Note 13)	(11,930		)	—			(18,705		)
Operating expenses	(2,868		)	(246		)	(10,842		)
Gain on divestiture	—			—			16,840
Income tax provision (benefit)	(55		)	15			(43		)
Net loss from discontinued operations	$	(14,483	)	$	(562	)	$	(19,555	)

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Note 5. Fair Value Measurement

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of January 3, 2016:

	Fair Value at Reporting Date Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Assets
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	$	62,434	$	—		$	—	$	62,434
Money market funds	70,960		—			—		70,960
Asset-backed securities	—		14,501			—		14,501
Corporate bonds	—		108,314			—		108,314
Corporate commercial paper	—		3,483			—		3,483
Bank deposits	—		13,595			—		13,595
Repurchase agreement	—		129			—		129
Municipal bonds	—		900			—		900
Total assets measured at fair value	$	133,394	$	140,922		$	—	$	274,316
Liabilities
Convertible Notes (1)	$	—	$	(284,280	)	$	—	$	(284,280	)

(1) The convertible notes are carried on the Condensed Consolidated Balance Sheets at their original issuance value including accreted interest, net of unamortized debt discount and issuance cost. The Convertible Notes are not marked to fair value at the end of each reporting period. As of January 3, 2016, the fair value of Convertible Notes was determined on the basis of market prices observable for similar instruments and is considered Level 2 in the fair value hierarchy. See Note 16 for additional information on the Convertible Notes.

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The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 29, 2015:

	Fair Value at Reporting Date Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	$	135,945	$	—	$	—	$	135,945
Money market funds	55,578		—		—		55,578
Asset-backed securities	—		31,830		—		31,830
Corporate bonds	—		245,675		—		245,675
International government bonds	—		1,006		—		1,006
Corporate commercial paper	—		4,999		—		4,999
Bank deposits	—		16,915		—		16,915
Repurchase agreements	—		191		—		191
Municipal bonds	—		6,044		—		6,044
Total assets measured at fair value	$	191,523	$	306,660	$	—	$	498,183

U.S. government treasuries and U.S. government agency securities as of January 3, 2016 and March 29, 2015 do not include any U.S. government guaranteed bank issued paper.

The securities in Level 1 are highly liquid and actively traded in exchange markets or over-the-counter markets. Level 2 fixed income securities are priced using quoted market prices for similar instruments, non-binding market prices that are corroborated by observable market data.

All of the Company’s available-for-sale investments are subject to a periodic impairment review. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. The Company did not record any impairment charges related to its available-for-sale investments in the three and nine months ended January 3, 2016 and December 28, 2014.

Note 6. Investments

Available-for-Sale Securities

Available-for-sale investments at January 3, 2016 were as follows:

(in thousands)	Cost			Gross Unrealized  Gains		Gross Unrealized  Losses			Estimated Fair  Value
U.S. government treasuries and agencies securities	$	62,583		$	—	$	(149	)	$	62,434
Money market funds	70,960			—		—			70,960
Asset-backed securities	14,533			—		(32		)	14,501
Corporate bonds	108,682			18		(386		)	108,314
International government bonds	—			—		—			—
Corporate commercial paper	3,483			—		—			3,483
Bank deposits	13,595			—		—			13,595
Repurchase agreements	129			—		—			129
Municipal bonds	900			—		—			900
Total available-for-sale investments	274,865			18		(567		)	274,316
Less amounts classified as cash equivalents	(74,996		)	—		—			(74,996		)
Short-term investments	$	199,869		$	18	$	(567	)	$	199,320

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Available-for-sale investments at March 29, 2015 were as follows:

(in thousands)	Cost			Gross Unrealized  Gains		Gross Unrealized  Losses			Estimated Fair  Value
U.S. government treasuries and agencies securities	$	135,570		$	398	$	(23	)	$	135,945
Money market funds	55,578			—		—			55,578
Asset-backed securities	31,830			9		(9		)	31,830
Corporate bonds	245,229			567		(121		)	245,675
International government bonds	1,010			—		(4		)	1,006
Corporate commercial paper	4,999			—		—			4,999
Bank deposits	16,915			—		—			16,915
Repurchase agreements	191			—		—			191
Municipal bonds	6,001			45		(2		)	6,044
Total available-for-sale investments	497,323			1,019		(159		)	498,183
Less amounts classified as cash equivalents	(60,068		)	—		—			(60,068		)
Short-term investments	$	437,255		$	1,019	$	(159	)	$	438,115

The cost and estimated fair value of available-for-sale securities at January 3, 2016, by contractual maturity, were as follows:

(in thousands)	Amortized Cost		Estimated Fair Value
Due in 1 year or less	$	103,575	$	103,569
Due in 1-2 years	64,896		64,740
Due in 2-5 years	107,386		106,007
Total investments in available-for-sale securities	$	275,857	$	274,316

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses as of January 3, 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	Less Than 12 Months					12 Months or Greater				Total
(in thousands)	Fair Value		Unrealized  Loss			Fair  Value		Unrealized  Loss		Fair Value		Unrealized  Loss
Corporate bonds	$	90,142	$	(386	)	$	—	$	—	$	90,142	$	(386	)
Asset-backed securities	14,501		(32		)	—		—		14,501		(32		)
U.S. government treasuries and agencies securities	56,969		(149		)	—		—		56,969		(149		)
Municipal bonds	900		—			—		—		900		—
International government bonds	—		—			—		—		—		—
Total	$	162,512	$	(567	)	$	—	$	—	$	162,512	$	(567	)

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The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, as of March 29, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	Less Than 12 Months					12 Months or Greater				Total
(in thousands)	Fair  Value		Unrealized  Loss			Fair  Value		Unrealized  Loss		Fair  Value		Unrealized  Loss
Corporate bonds	$	67,367	$	(121	)	$	—	$	—	$	67,367	$	(121	)
Asset-backed securities	17,736		(9		)	—		—		17,736		(9		)
U.S. government treasuries and agencies securities	18,478		(23		)	—		—		18,478		(23		)
Municipal bonds	1,001		(2		)	—		—		1,001		(2		)
International government bonds	1,006		(4		)	—		—		1,006		(4		)
Total	$	105,588	$	(159	)	$	—	$	—	$	105,588	$	(159	)

Currently, a significant portion of the Company’s available-for-sale investments that it holds are high grade instruments.  As of January 3, 2016, the unrealized losses on the Company’s available-for-sale investments represented an insignificant amount in relation to its total available-for-sale portfolio. Substantially all of the Company’s unrealized losses on its available-for-sale marketable debt instruments can be attributed to fair value fluctuations in an unstable credit environment that resulted in a decrease in the market liquidity for debt instruments.  Because the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company did not consider these investments to be other-than-temporarily impaired at January 3, 2016 and March 29, 2015.

Non-marketable Equity Securities

As of January 3, 2016 and March 29, 2015, the Company holds capital stock of privately-held companies with total amount of $6.0 million and $4.0 million, respectively. During the three months ended January 3, 2016, the Company purchased $2.0 million of convertible notes in a privately-held company which were automatically converted into ordinary shares of stock in accordance with the terms of the instrument at December 31, 2015. This and other investment in stocks (included under Other Assets on the Condensed Consolidated Balance Sheets) are accounted for ascost-method investment, as the Company owns less than 20% of the voting securities and does not have the ability to exercise significant influence over operating and financial policies of each entity. The Company did not record any impairment charge for these investments during the three and nine months ended January 3, 2016. 

Note 7. Stock-Based Employee Compensation

Equity Incentive Programs

The Company currently issues awards under two equity-based plans in order to provide additional incentive and retention to directors and employees who are considered to be essential to the long-range success of the Company. These plans are further described below.

2004 Equity Plan (2004 Plan)

Options granted by the Company under the 2004 Plan generally expire seven years from the date of grant and generally vest over a four-year period from the date of grant, with one-quarter of the shares of common stock vesting on the 1 year anniversary of the grant date and the remaining shares vesting monthly for the 36 months thereafter. The exercise price of the options granted by the Company under the 2004 Plan shall not be less than 100% of the fair market value for a common share subject to such option on the date the option is granted. Full value awards made under the 2004 Plan shall become vested over a period of not less than 3 years (or, if vesting is performance-based, over a period of not less than one year) following the date such award is made; provided, however, that full value awards that result in the issuance of an aggregate of up to 5% of common stock available under the 2004 Plan may be granted to any one or more participants without respect to such minimum vesting provisions. As of January 3, 2016, there were 8.2 million shares available for future grant under the 2004 Plan.

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Compensation Expense

The following table summarizes stock-based compensation expense by line items appearing in the Company’s Condensed Consolidated Statement of Operations:

	Three Months Ended				Nine Months Ended
(in thousands)	January 3, 2016		December 28, 2014		January 3, 2016			December 28, 2014
Cost of revenue	$	666	$	592	$	1,993		$	1,347
Research and development	4,433		2,562		11,608			7,547
Selling, general and administrative	4,363		2,724		12,309			7,875
Discontinued operations	—		20		(32		)	(207		)
Total stock-based compensation expense	$	9,462	$	5,898	$	25,878		$	16,562

The amount of stock-based compensation expense that was capitalized during the periods presented above was not material.

Stock Options

The following is a summary of the Company's stock option activity and related weighted average exercise prices for each category:

	Nine Months Ended January 3, 2016
(shares in thousands)	Shares		Price
Beginning stock options outstanding	3,680		$	7.71
Granted	428		21.96
Exercised (1)	(1,222	)	6.82
Canceled	(40	)	6.94
Ending stock options outstanding	2,846		$	10.25
Ending stock options exercisable	1,733		$	7.50

(1) Upon exercise, the Company issues new shares of common stock.

As of January 3, 2016, the unrecognized compensation cost related to nonvested stock options, net of estimated forfeitures, was $2.1 million and will be recognized over a weighted-average period of 1.13 years.

As of January 3, 2016, stock options vested and expected to vest totaled approximately 2.7 million with a weighted-average exercise price of $9.82 and a weighted-average remaining contractual life of 3.57 years. The aggregate intrinsic value was approximately $44.0 million.

As of January 3, 2016, fully vested stock options totaled approximately 1.7 million with a weighted-average exercise price of $7.50 and a weighted-average remaining contractual life of 2.87 years. The aggregate intrinsic value was approximately $32.7 million.

Restricted Stock Units

Restricted stock units granted by the Company under the 2004 Plan generally vest over at least a three year period from the grant date with one-third of restricted stock units vesting on each one-year anniversary. As of January 3, 2016, 3.7 million restricted stock unit awards were outstanding under the 2004 Plan.

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The following table summarizes the Company's restricted stock unit activity and related weighted-average exercise prices for each category for the nine months ended January 3, 2016:

	Nine Months Ended January 3, 2016
(shares in thousands)	Shares		Weighted-average grant date fair value per share
Beginning RSUs outstanding	3,457		$	10.58
Granted	1,640		21.95
Released	(1,091	)	9.76
Forfeited	(311	)	12.59
Ending RSUs outstanding	3,695		$	15.70

As of January 3, 2016, restricted stock units expected to vest totaled approximately 3.1 million with a weighted-average remaining contract life of 1.36 years. The aggregate intrinsic value was approximately $81.1 million.

As of January 3, 2016, the unrecognized compensation cost related to restricted stock units granted under the Company’s equity incentive plan was approximately $25.9 million, net of estimated forfeitures, and is expected to be recognized over a weighted-average period of 1.49 years.

Performance-Based Stock Units

Under the 2004 Plan, the Company has granted performance-based stock units which vest and convert into shares of the Company's common stock based on the level of achievement of pre-established performance goals relating to Company's performance relative to a group of peer companies and to cumulative revenue targets for a specific product group, during a specified performance period. The performance period for the Company's performance-based stock units is generally 1 to 3 years. Management evaluates, on a quarterly basis, the likelihood of the Company meeting its performance metrics in determining stock-based compensation expense.

The following table summarizes the Company's performance stock unit activity and related weighted-average exercise prices for each category for the nine months ended January 3, 2016:

	Nine Months Ended January 3, 2016
(shares in thousands)	Shares		Weighted-average grant date fair value per share
Beginning PSUs outstanding	517		$	8.06
Granted	73		8.51
Released	(182	)	8.17
Forfeited	(178	)	8.47
Ending PSUs outstanding	230		$	7.80

As of January 3, 2016, performance stock units vested and expected to vest totaled approximately 0.2 million with a weighted-average remaining contract life of 0.44 year. The aggregate intrinsic value was approximately $4.8 million.

As of January 3, 2016, the unrecognized compensation cost related to performance stock units granted under the Company’s equity incentive plan was approximately $4.5 million, net of estimated forfeitures, and is expected to be recognized over a weighted-average period of 0.44 year.

Market-Based Stock Units

In June 2015, under the 2004 Plan, the Company granted approximately 0.2 million shares of restricted stock units with a market-based condition to a group of executive-level employees. These equity awards vest and convert into shares of the Company’s common stock based on the achievement of the Company’s relative total shareholder return over the performance period of 2 years. The earned market-based stock units will vest in two equal installments, with the first installment of vesting to occur on June 15, 2017, and the second on June 15, 2018.

In June 2014, under the 2004 Plan, the Company granted approximately 0.5 million shares of restricted stock units with a market-based condition to a group of executive-level employees. These equity awards vest and convert into shares of the Company’s common stock based on the achievement of the Company’s relative total shareholder return over the performance period of 2

20

years. The earned market-based stock units will vest in two equal installments, with the first installment of vesting to occur on June 15, 2016, and the second on June 15, 2017.

The fair value of each market-based stock unit award was estimated on the date of grant using a Monte Carlo simulation model that uses the assumptions noted in the table below. The Company uses historical data to estimate employee termination within the valuation model. The expected term of 1.80 years was derived from the output of the valuation model and represents the period of time that restricted stock units granted are expected to be outstanding.

The following weighted average assumptions were used to calculate the fair value of the market-based equity award using a Monte Carlo simulation model:

	June 15, 2015			June 15, 2014
Estimated fair value	$	33.08		$	21.00
Expected volatility	41.22		%	34.60		%
Expected term (in years)	1.80			1.80
Risk-free interest rate	0.65		%	0.38		%
Dividend yield	—		%	—		%

As of January 3, 2016, the total market-based stock units outstanding were approximately 0.8 million.

As of January 3, 2016, market-based stock units vested and expected to vest totaled approximately 0.6 million with a weighted-average remaining contract life of 1.18 years. The aggregate intrinsic value was approximately $17.1 million.

As of January 3, 2016, the unrecognized compensation cost related to market-based stock units granted under the Company’s equity incentive plans was approximately $7.9 million, net of estimated forfeitures, and is expected to be recognized over a weighted-average period of 1.24 years.

2009 Employee Stock Purchase Plan (2009 ESPP)

On June 18, 2009, the Board approved implementation of the 2009 Employee Stock Purchase Plan (2009 ESPP) and authorized the reservation and issuance of up to 9.0 million shares of the Company's common stock, subject to stockholder approval. On September 17, 2009, the Company's stockholders approved the plan at the 2009 Annual Meeting of Stockholders. The 2009 ESPP is intended to be implemented in successive quarterly purchase periods commencing on the first day of each fiscal quarter of the Company. In order to maintain its qualified status under Section 423 of the Internal Revenue Code, the 2009 ESPP imposes certain restrictions, including the limitation that no employee is permitted to participate in the 2009 ESPP if the rights of such employee to purchase common stock of the Company under the 2009 ESPP and all similar purchase plans of the Company or its subsidiaries would accrue at a rate which exceeds $25,000 of the fair market value of such stock (determined at the time the right is granted) for each calendar year. At the 2012 annual meeting of stockholders on September 13, 2012, the Company's stockholders approved an additional 5.0 million. The number of shares of common stock reserved for issuance thereunder increased from 9.0 million shares to 14.0 million shares.

Activity under the Company's ESPP for the nine months ended January 3, 2016 is summarized in the following table:

(in thousands, except per share amounts)
Number of shares issued	486
Average issuance price	$	16.85
Number of shares available at January 3, 2016	3,893

Note 8. Stockholders' Equity

Stock Repurchase Program. In April 2015, the Company's Board of Directors approved a new share repurchase program authorization for $300 million. In October 2015, the Company's Board of Directors approved an increase in the share repurchase authorization by another $300 million. In the three and nine months ended January 3, 2016, the Company repurchased 10.7 million shares for $267.2 million and 14.5 million shares for $344.2 million, respectively. Of the total repurchases for the nine months ended January 3, 2016, $7.9 million was from the old authorization. As of January 3, 2016, approximately $263.7 million was available for future purchase under the new share repurchase program.

Accelerated Share Repurchase. On November 2, 2015, the Company separately entered into an accelerated share repurchase agreement (the ASR Agreements) with JPMorgan Chase Bank and Bank of America (the Dealers) to repurchase a total of $225 million of its common stock. Pursuant to the terms of the ASR agreements, approximately 7.0 million shares of its common stock

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were received by the Company on November 5, 2015. At settlement of the ASR Agreements, which is expected to occur during the fourth quarter of fiscal 2016, the Dealers may be required to deliver additional shares of common stock to the Company, or under certain circumstances, the Company may be required to deliver shares of its common stock or may elect to make a cash payment to the Dealers, with the number of shares to be delivered or the amount of such payment based on the differences between the volume-weighted average price, less a discount, of the Company’s common stock during the term of the transaction and the initial $225 million paid. The ASR Agreements were entered into pursuant to the Company’s increase in share repurchase authorization effective October 2015. Of the total initial amount paid to the Dealers, $45 million represents prepayment for subsequent settlement of the ASR Agreements, as of January 3, 2016. In accordance with ASC 815-40, Derivatives and Hedging - Contracts in an Entity’s Own Equity, the payments made under the ASR Agreements were classified as equity in the Company's Condensed Consolidated Balance Sheets.

In January 2016, the ASR Agreements settled resulting in the repurchase of 1.6 million of the Company’s common stock at an average price per share of $28.32.

Note 9. Balance Sheet Detail

(in thousands)	January 3, 2016			March 29, 2015
Inventories, net
Raw materials	$	3,663		$	4,709
Work-in-process	29,228			18,377
Finished goods	21,894			22,324
Total inventories, net	$	54,785		$	45,410
Property, plant and equipment, net
Land	$	11,469		$	11,578
Machinery and equipment	260,313			292,180
Building and leasehold improvements	48,195			48,031
Total property, plant and equipment, gross	319,977			351,789
Less: accumulated depreciation	(246,208		)	(286,281		)
Total property, plant and equipment, net	$	73,769		$	65,508

Other accrued liabilities
Accrued restructuring costs (1)	$	8,568	$	10,512
Other (2)	7,797		7,070
Total other accrued liabilities	$	16,365	$	17,582

Other long-term obligations
Deferred compensation related liabilities	$	13,822	$	13,143
Other (3)	8,271		4,462
Total other long-term liabilities	$	22,093	$	17,605

(1) Includes accrued severance costs related to ZMDI acquisition and the disposed HSC business of $4.5 million and $1.7 million, respectively, as of January 3, 2016 and accrued severance costs related to the sale of HSC business of $10.2 million as of March 29, 2015.

(2) Other current liabilities consist primarily of accrued royalties and outside commissions, current portion of supplier obligations, current portion of capital lease payable, and other accrued unbilled expenses.

(3) Other long-term obligations consist primarily of non-current portion of capital lease payable, non-current deferred gain and other long-term accrued liabilities.

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Note 10. Deferred Income on Shipments to Distributors

Included in the caption “Deferred income on shipments to distributors” on the Consolidated Condensed Balance Sheets are amounts related to shipments to certain distributors for which revenue is not recognized until the Company's product has been sold by the distributor to an end customer. The components of deferred income on shipments to distributors as of January 3, 2016 and March 29, 2015 are as follows:

(in thousands)	January 3, 2016			March 29, 2015
Gross deferred revenue	$	11,410		$	19,299
Gross deferred costs	(2,887		)	(3,605		)
Deferred income on shipments to distributors	$	8,523		$	15,694

The gross deferred revenue represents the gross value of shipments to distributors at the list price billed to the distributor less any price protection credits provided to them in connection with reductions in list price while the products remain in their inventory.  The amount ultimately recognized as revenue will be lower than this amount as a result of ship from stock pricing credits which are issued in connection with the sell through of the Company's products to end customers. Based on the last four quarters, this amount has ranged from an average of approximately 31% to 39% of the list price billed to the customer.  The gross deferred costs represent the standard costs (which approximate actual costs) of products the Company sells to the distributors.  Although the Company monitors the levels and quality of inventory in the distribution channel, the Company's experience is that products returned from these distributors may be sold to a different distributor or in a different region of the world.  As such, inventory write-downs for products in the distribution channel have not been significant.

Note 11. Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended January 3, 2016 consisted of the following:

(in thousands)	Cumulative translation adjustments			Unrealized gain on available-for-sale investments			Pension adjustments			Total
Balance, March 29, 2015	$	(3,721	)	$	860		$	680		$	(2,181	)
Other comprehensive loss before reclassifications	(2,044		)	(1,740		)	—			(3,784		)
Amounts reclassified out of accumulated other comprehensive income (loss)	—			331			(613		)	(282		)
Net current-period other comprehensive loss	(2,044		)	(1,409		)	(613		)	(4,066		)
Balance as of January 3, 2016	$	(5,765	)	$	(549	)	$	67		$	(6,247	)

Comprehensive income components consisted of:

(in thousands)	Nine Months Ended January 3, 2016			Location
Unrealized holding gains on available-for-sale investments	$	331		interest and other, net
Amortization of pension benefits prior service costs	(613		)	operating expense
Total amounts reclassified out of accumulated other comprehensive loss	$	(282	)

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12. Goodwill and Intangible Assets, Net

Goodwill balances by reportable segment as of January 3, 2016 and March 29, 2015 are as follows:

	Reportable Segment
(in thousands)	Communications		Computing, Consumer and Industrial		Total
Balance as of March 29, 2015	$	122,248	$	13,396	$	135,644
Addition - ZMDI acquisition (see Note 3)	—		170,089		170,089
Balance as of January 3, 2016	$	122,248	$	183,485	$	305,733

Goodwill balances as of January 3, 2016 and March 29, 2015 are net of $920.3 million and $922.5 million, respectively, in accumulated impairment losses.

Intangible asset balances as of January 3, 2016 and March 29, 2015 are summarized as follows:

	January 3, 2016
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Existing technology	$	279,514	$	(201,992	)	$	77,522
Trademarks	5,211		(4,274		)	937
Customer relationships	172,787		(129,146		)	43,641
Intellectual property licenses	11,400		(1,324		)	10,076
Backlog	5,800		(487		)	5,313
Total purchased intangible assets	$	474,712	$	(337,223	)	$	137,489

	March 29, 2015
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Existing technology	$	211,170	$	(206,491	)	$	4,679
Trademarks	4,411		(3,850		)	561
Customer relationships	131,045		(130,750		)	295
Total purchased intangible assets	$	346,626	$	(341,091	)	$	5,535

As a result of the acquisition of ZMDI, the Company recognized additional intangible assets with total original value of $126.2 million during the three months ended January 3, 2016 (see Note 3).

During the three months ended January 3, 2016, the Company purchased an intangible asset with a cost of $1.5 million and an average estimated useful life of 3 years. During the three months ended September 27, 2015, the Company individually purchased intangible assets with a total cost of $9.9 million and an average estimated useful life of 6.25 years. These intangible assets are comprised of intellectual property licenses that are being used by the Company in the development, manufacture and sale of certain products.

Amortization expense for the three months ended January 3, 2016 and December 28, 2014 was $3.2 million and $1.3 million, respectively. Amortization expense for the nine months ended January 3, 2016 and December 28, 2014 was $5.6 million for each of the periods.

During the first quarter of fiscal 2015, the Company recorded an impairment charge relating to the HSC assets held for sale of $5.6 million, which consisted of existing technology of $4.6 million, customer relationships of $0.9 million and non-compete agreements of $0.1 million. Refer to Note 4 for additional information.

The intangible assets are being amortized over estimated useful lives of 1 to 7.5 years.

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Based on the intangible assets recorded at January 3, 2016, and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated amortization expense is expected to be as follows (in thousands):

Fiscal Year	Amount
2016 (Remaining 3 months)	$	7,150
2017	25,651
2018	19,322
2019	18,868
2020 and thereafter	66,498
Total purchased intangible assets	$	137,489

Note 13. Restructuring

The following table shows the provision of the restructuring charges and the liability remaining as of January 3, 2016:

(in thousands)	Continuing Operations			Discontinued Operations (HSC)			Total
Balance as of March 29, 2015	$	295		$	10,217		$	10,512
Provision	8,910			—			8,910
Payments and other adjustments	(2,290		)	(8,564		)	(10,854		)
Balance as of January 3, 2016	$	6,915		$	1,653		$	8,568

Integration-related Restructuring Plan

In December 2015, the Company began the implementation of planned cost reduction and restructuring activities in connection with the acquisition of ZMDI. The Company recognized approximately $4.5 million of employee termination cost for two former executives in operating expenses for the quarter ended January 3, 2016. The termination benefits are expected to be paid in the fourth quarter of fiscal 2016.

Other

During the three months ended January 3, 2016, the Company recorded charges of $1.5 million and reduced headcount by 2 employees. During the nine months ended January 3, 2016, the Company recorded charges of $4.4 million and reduced headcount by 37 employees, and paid $2.3 million related to these actions. As of January 3, 2016, the total accrued balance for employee severance costs related to these actions was $2.4 million. The Company expects to complete these actions by the fourth quarter of fiscal 2016.

During fiscal 2015, the Company recorded other charges of $1.1 million and reduced headcount by 28 employees in multiple reductions in workforce actions. During fiscal 2015, the Company paid $0.8 million related to these actions. During first quarter of fiscal 2016, the Company paid $0.3 million related to these actions, which reduced the total accrual balance to zero.

HSC Business

In fiscal 2015, the Company prepared a workforce-reduction plan (the Plan) with respect to employees of its HSC business in France and the Netherlands. The Plan sets forth the general parameters, terms and benefits for employee dismissals. The Plan was approved by the French Works Council and Labor Administrator and the related Plan details were communicated to the affected employees in France and the Netherlands. No works council consultation was required in the Netherlands. The Company has not historically offered similar termination benefits as defined in the Plan for these locations. The Plan identified the number of employees to be terminated, their job classification or function, their location and the date that the Plan was expected to be completed. The Plan also established the terms of the benefit arrangement in sufficient detail to enable the employees to determine the type and amount of benefits that they would receive if terminated. In addition, the actions required to complete the Plan indicated that it was unlikely that substantial changes to the Plan would be made after communication to the employees. Accordingly, the Company accrued restructuring charges in accordance with ASC 420, Exit or Disposal Cost Obligations. The restructuring charges recorded to discontinued operations in the Condensed Consolidated Statement of Operations were approximately $18.3 million for the fiscal year ended March 29, 2015, for a total of 53 employees in France and the Netherlands combined.

The Company expects to complete payments of these termination benefits and the restructuring action by December 2017.

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Note 14. Commitments and Contingencies

Warranty

The Company maintains an accrual for obligations it incurs under its standard product warranty program and customer, part, or process specific matters. The Company’s standard warranty period is one year, however in certain instances the warranty period may be extended to as long as two years. Management estimates the fair value of the Company’s warranty liability based on actual past warranty claims experience, its policies regarding customer warranty returns and other estimates about the timing and disposition of product returned under the standard program. Customer, part, or process specific accruals are estimated using a specific identification method. Historical profit and loss impact related to warranty returns activity has been minimal. The total warranty accrual was $0.3 million as of January 3, 2016 and March 29, 2015.

Litigation

In January 2012, Maxim I Properties, a general partnership that had purchased a certain parcel of real property (the Property) in 2003, filed a complaint in the Northern District of California naming approximately 30 defendants, including the Company ("Defendants"), alleging various environmental violations of the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and Resource Conservation and Recovery Act (RCRA), the California Hazardous Substance Account Act (HSAA), and other common law claims (the Complaint). The Complaint alleged that Defendants including the Company “…generated, transported, and/or arranged for the transport and/or disposal of hazardous waste to the Property.” On August 15, 2012, Maxim I Properties voluntarily dismissed its Complaint without prejudice. However, another defendant, Moyer Products, Inc., counter-claimed against the plaintiff, Maxim, and cross-claimed against the remaining co-Defendants, including the Company. Thus, the Company remains a cross-defendant in this action.

In a related, but independent action, the California Department of Toxic Substances Control (DTSC) notified the Company in September 2012 that the Company, and more than 50 other entities, were being named as respondents to DTSC's Enforcement Order, as “a generator of hazardous waste.” In April 2013, the Company, along with the other “respondent” parties, entered into a Corrective Action Consent Agreement (CACA) with the DTSC, agreeing to conduct the Property investigation and corrective action selection. The CACA supersedes the DTSC’s Enforcement Order. The Northern District of California federal court stayed the Maxim/Moyer litigation pending the Property investigation under the CACA and DTSC's corrective action selection.

Property investigation activity took place between April 2013 and June, 2015. On June 23, 2015, the DTSC deemed the Property investigation complete. The DTSC continues to evaluate corrective action alternatives. The Company will continue to vigorously defend itself against the allegations in the Complaint and evaluate settlement options with Moyer upon notification from DTSC of its corrective action selection. No specific corrective action has been selected yet, and thus no specific monetary demands have been made.

As of January 3, 2016, the Company is also a party to various other legal proceedings and claims arising in the normal course of business. With regard to these or future litigation matters that may arise, potential liability and probable losses or ranges of possible losses due to an unfavorable litigation outcome cannot be reasonably estimated at this time. Generally, litigation is subject to inherent uncertainties, and no assurance can be given that the Company will prevail in the Maxim lawsuit or any other particular lawsuit or claim. Pending lawsuits, claims as well as potential future litigation, could result in substantial costs and diversion of resources and could have a material adverse effect on the Company's financial condition, results of operations or cash flows.

Note 15. Employee Benefit Plans

401(k) Plan

The Company sponsors a 401(k) retirement matching plan for qualified domestic employees.  The Company recorded expenses of approximately $1.9 million and $1.3 million in matching contributions under the plan during the nine months ended January 3, 2016 and December 28, 2014, respectively.

Deferred Compensation Plans

Effective November 1, 2000, the Company established an unfunded deferred compensation plan to provide benefits to executive officers and other key employees. Under the plan, participants can defer any portion of their salary and bonus compensation into the plan and may choose from a portfolio of funds from which earnings are measured. Participant balances are always 100% vested. As of January 3, 2016 and March 29, 2015, obligations under the plan totaled approximately $13.8 million and $13.1 million. Additionally, the Company has set aside assets in a separate trust that is invested in corporate owned life insurance intended to substantially fund the liability under the plan. As of January 3, 2016 and March 29, 2015, the deferred compensation plan assets were approximately $14.5 million and $16.5 million respectively.

During the first quarter of fiscal 2013, the Company assumed a deferred compensation plan associated with the acquisition of Fox. Under this plan, participants in retirement are entitled to receive a fixed amount from the Company on a monthly basis. The

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Company has purchased life insurance policies with the intention of funding the liability under this plan. As of January 3, 2016 and March 29, 2015, the deferred compensation plan assets under this plan were approximately $0.8 million. As of January 3, 2016 and March 29, 2015, the deferred compensation plan liabilities under this plan were approximately $1.8 million and $1.7 million, respectively.

International Employee Benefit Plans

The Company sponsors defined-benefit pension plans, defined-contribution plans, multi-employer plans and other post-employment benefit plans covering employees in certain of the Company's international locations. As of January 3, 2016 and March 29, 2015, the net liability for all of these international benefit plans totaled $0.8 million and $1.0 million respectively.

Note 16. Convertible Senior Notes, Warrants and Hedges

Convertible Notes Offering

On October 29, 2015, the Company priced its private offering of $325 million in aggregate principal amount of 0.875% Convertible Senior Notes due 2022 ("Initial Convertible Notes"). On November 3, 2015, the initial purchasers in such offering exercised in full the over-allotment option to purchase an additional $48.8 million in aggregate principal amount of Convertible Notes (“Additional Convertible Notes”, and together “Convertible Notes”). The net proceeds from this offering were approximately $363.4 million, after deducting the initial purchasers’ discounts and commissions and the offering expenses. The Company used approximately $37.4 million of the net proceeds to pay the cost of the Bond Hedges described below (after such cost was partially offset by the proceeds to the Company from the Warrant Transactions described below). The Company used portion of the remaining net proceeds from the offering to purchase an aggregate of $300 million of its common stock, as authorized under its share repurchase program. The Company used $75.0 million under the currently approved repurchased authorization, to purchase shares of common stock from a purchaser of the Convertible Notes in privately negotiated transaction concurrently with the closing of the offering, and $225 million to purchase additional shares of common stock under the ASR Agreements. The Company intends to use the remainder of the net proceeds for working capital and general corporate purposes.

The Convertible Notes are governed by the terms of an indenture, dated November 4, 2015 (“Indenture”), between the Company and a trustee. The Convertible Notes are the senior unsecured obligations of the Company and bear interest at a rate of 0.875% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, commencing May 15, 2016. The Convertible Notes will mature on November 15, 2022, unless earlier repurchased or converted. At any time prior to the close of business on the business day immediately preceding August 15, 2022, holders may convert their Convertible Notes at their option only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on April 3, 2016 (and only during such fiscal quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after August 15, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances.

Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election. Holders will not receive any additional cash payment or additional shares of the Company's common stock representing accrued and unpaid interest, if any, upon conversion of a Convertible Note, except in limited circumstances. Instead, interest will be deemed to be paid by the cash and shares, if any, of the Company’s common stock paid or delivered, as the case may be, to such holder upon conversion of a Convertible Note.

The conversion rate for the Convertible Notes will initially be 29.8920 shares of common stock per $1,000 principal amount of Convertible Notes, which corresponds to an initial conversion price of approximately $33.45 per share of common stock. The conversion rate is subject to adjustment from time to time upon the occurrence of certain events, including, but not limited to, the issuance of certain stock dividends on common stock, the issuance of certain rights or warrants, subdivisions, combinations, distributions of capital stock, indebtedness, or assets, the payment of cash dividends and certain issuer tender or exchange offers.

The Company may not redeem the Convertible Notes prior to the maturity date and no sinking fund is provided for the Convertible Notes, which means that the Company is not required to periodically redeem or retire the Convertible Notes. Upon the occurrence of certain fundamental changes involving the Company, holders of the Convertible Notes may require the Company to repurchase for cash all or part of their Convertible Notes in principal amounts of $1,000 or an integral multiple thereof at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

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The Indenture does not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. The Indenture contains customary terms and covenants and events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization involving the Company) occurs and is continuing, the Trustee by notice to the Company, or the holders of at least 25% in principal amount of the outstanding Convertible Notes by written notice to the Company and the Trustee, may declare 100% of the principal of and accrued and unpaid interest, if any, on all the Convertible Notes to be due and payable. Upon such a declaration of acceleration, such principal and accrued and unpaid interest, if any, will be due and payable immediately. Upon the occurrence of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal of and accrued and unpaid interest, if any, on all of the Convertible Notes will become due and payable automatically. Notwithstanding the foregoing, the Indenture provides that, to the extent the Company elects, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture consists exclusively of the right to receive additional interest on the Convertible Notes. As of January 3, 2016, none of the conditions allowing holders of the Notes to convert had been met.

In accordance with ASC 470-20, Debt with Conversion and Other Options, the Company separated the Convertible Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the estimated fair value of a similar liability that does not have an associated convertible feature. Such amount was based on the contractual cash flows discounted at an appropriate market rate for a non-convertible debt at the date of issuance, which was determined to be 5.5%. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the face value of the Convertible Notes as a whole. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense over the term of the Convertible Notes using the effective interest method with an effective interest rate of 5.5% per annum. The equity component is not remeasured as long as it continues to meet the conditions for equity classification.

In accordance with ASU No. 2015-03, the Company allocated the total transaction costs related to the Convertible Note issuance to the liability and equity components based on their relative values. Issuance costs attributable to the $274.4 million liability component are being amortized to expense over the term of the Convertible Notes, and issuance costs attributable to the $99.3 million equity component are included along with the equity component in stockholders' equity.

At the debt issuance date, the Convertible Notes, net of issuance costs, consist of the following (in thousands):

	November 3, 2015
Liability component
Principal	$	274,435
Less: Issuance cost	(7,568		)
Net carrying amount	266,867
Equity component *
Allocated amount	99,316
Less: Issuance cost	(2,738		)
Net carrying amount	96,578
Convertible Notes, net	$	363,445

* Recorded in the consolidated condensed balance sheet within additional paid-in capital.

The following table includes total interest expense recognized related to the Convertible Notes during the three months period ended January 3, 2016 (in thousands):

	Three Months Ended January 3, 2016
Contractual interest expense	$	545
Amortization of debt issuance costs	180
Amortization of debt discount	1,984
	$	2,709

The net liability component of Convertible Notes is comprised of the following as of January 3, 2016 (in thousands):

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	January 3, 2016
Net carrying amount at issuance date	$	266,867
Amortization of debt issuance costs during the period	180
Amortization of debt discount during the period	1,984
	$	269,031

See Note 5 to the Company's consolidated financial statements for fair value disclosures related to the Company's Convertible Notes.

Convertible Note Hedge and Warrant Transactions

In connection with the pricing of the Convertible Notes, on October 29, 2015, the Company entered into convertible note hedge transaction (the "Initial Bond Hedge"), with JPMorgan Chase Bank, National Association (the “Option Counterparty”) and paid $81.9 million.

On October 29, 2015, the Company also entered into separate warrant transaction (the "Initial Warrant Transaction") with the Option Counterparty and received $49.4 million.

In connection with the exercise of the Over-Allotment Option, on November 3, 2015, the Company entered into a convertible note hedge transaction (the “Additional Bond Hedge”, and together with the Initial Bond Hedges, the “Bond Hedge”) with the Option Counterparty and paid $12.3 million. On November 3, 2015, the Company also entered into separate additional warrant transaction (the “Additional Warrant Transaction”, and together with the Initial Warrant Transaction, the “Warrant Transactions”) with the Option Counterparty and received $7.4 million. Total amount paid for the purchase of bond hedge and total amount received for the sale of warrants were $94.2 million and $56.8 million, respectively.

The Bond Hedges are generally expected to reduce the potential dilution upon conversion of the Convertible Notes and/or offset any payments in cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, that the Company is required to make in excess of the principal amount of the Convertible Notes upon conversion of any Convertible Notes, as the case may be, in the event that the market price per share of common stock, as measured under the terms of the Bond Hedges, is greater than the strike price ($33.45) of the Bond Hedges, which initially corresponds to the conversion price of the Convertible Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Convertible Notes. The Warrant Transactions will separately have a dilutive effect to the extent that the market value per share of common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants issued pursuant to the Warrant Transactions (the “Warrants”). The initial strike price of the Warrants is $48.66 per share. The Bond Hedges and Warrants are not marked to market. The value of the Bond Hedges and Warrants were initially recorded in stockholders' equity and continue to be classified as stockholders' equity in accordance with ASC 815-40, Derivatives and Hedging - Contracts in Entity's Own Equity. As of January 3, 2016, no warrants have been exercised.

Aside from the initial payment of a premium to the Option Counterparty under the Bond Hedges, which amount is partially offset by the receipt of a premium under the Warrant Transactions, the Company is not required to make any cash payments to the Option Counterparty under the Bond Hedges and will not receive any proceeds if the Warrants are exercised.

Note 17. Income Taxes

During the three and nine months ended January 3, 2016, the Company recorded an income tax benefit from continuing operations of $3.9 million and $2.9 million, respectively. The income tax benefit recorded in the three and nine months ended January 3, 2016 was primarily due to the tax benefit on the amortization of acquired intangible assets and severance costs in jurisdictions where no valuation allowance is in place, partially offset by taxes on earnings in foreign jurisdictions. The Company recorded an income tax expense from continuing operations of $0.1 million and $0.8 million in the three and nine months ended December 28, 2014, respectively. The income tax expense recorded in the three and nine months ended December 28, 2014 was primarily due to taxes on earnings in foreign jurisdictions.

As of January 3, 2016, the Company continued to maintain a valuation allowance against its net U.S. and foreign deferred tax assets, as the Company could not conclude that it was more likely than not that the Company would be able to realize its U.S. and foreign deferred tax assets. Given the continued improvement in the Company’s operations combined with certain tax strategies, it is reasonably possible that within the next 12 months, positive evidence will be sufficient to release a material amount of the Company’s valuation allowance. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. The exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that the Company is able to actually achieve. The Company will continue to evaluate the release of the valuation allowance on a quarterly basis.

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After examination of the Company’s projected offshore cash flows, and global cash requirements, the Company determined that beginning in fiscal year 2016, the Company would no longer require 100% of its future foreign generated cash to support its foreign operations. The Company plans to repatriate a portion of its current year offshore earnings to the U.S. for domestic operations, and has accrued for the related tax impacts accordingly. For earnings accumulated as of March 29, 2015, the Company continues to indefinitely reinvest such amounts in its foreign jurisdictions, except to the extent there is any previously taxed income which is expected to be repatriated. If circumstances change and it becomes apparent that some or all of those undistributed earnings of the Company's offshore subsidiary will be remitted in the foreseeable future but income taxes have not been recognized, the Company will accrue income taxes attributable to that remittance.

The Company benefits from tax incentives granted by local tax authorities in certain foreign jurisdictions. In the fourth quarter of fiscal 2011, the Company agreed with the Malaysia Industrial Development Board to enter into a new tax incentive agreement which is a full tax exemption on statutory income for a period of 10 years commencing April 4, 2011. This tax incentive agreement is subject to the Company meeting certain financial targets, investments, headcounts and activities in Malaysia.

During the quarter ended June 28, 2015, the Company reached an understanding regarding the terms for settling with the U.S. Internal Revenue Service ("IRS") and closed out all positions as part of the examination of the Company's income tax returns for the fiscal years 2010 through 2012. As a result, the Company remeasured its tax positions based on the facts, circumstances, and information available at the reporting date. The outcome did not have a material effect on the Company’s financial position, cash flows or results of operations due to its tax attributes, which are fully offset by a valuation allowance.

As of January 3, 2016, the Company was under examination in Singapore. The Company's fiscal years 2009 through 2012 are under audit by the Inland Revenue Authority of Singapore. Although the final outcome is uncertain, based on currently available information, the Company believes that the ultimate outcome will not have a material adverse effect on its financial position, cash flows or results of operations.

The Company's open years in the U.S. federal jurisdiction are fiscal 2013 and later years. In addition, the Company is effectively subject to federal tax examination adjustments for tax years ended on or after fiscal year 1999, in that the Company has tax attribute carryforwards from these years that could be subject to adjustments, if and when utilized. The Company's open years in various state and foreign jurisdictions are fiscal years 2008 and later.

The Company does not expect a material change in unrecognized tax benefits within the next twelve months.

On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. At this time, the U.S. Department of the Treasury has not withdrawn the requirement to include stock-based compensation from its regulations. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits, and the risk of the Tax Court’s decision being overturned upon appeal, the Company has not recorded any benefit as of January 3, 2016. The Company will continue to monitor ongoing developments and potential impacts to our financial statements.

Note 18. Segment Information

The Chief Operating Decision Maker is the Company’s President and Chief Executive Officer.

The Company's reportable segments include the following:

• Communications segment: includes clock and timing solutions, flow-control management devices including Serial RapidIO^® switching solutions, multi-port products, telecommunications products, high-speed static random access memory, first in and first out, digital logic, radio frequency, and frequency control solutions.

• Computing, Consumer and Industry segment: includes clock generation and distribution products, high-performance server memory interfaces, PCI Express switching solutions, power management solutions, signal integrity products, and sensing products for mobile, automotive and industrial solutions.

The Company completed the acquisition of ZMDI in December 2015 and is in the process of integrating the ZMDI business into the Company's reporting segment. During the three months ended January 3, 2016, the Company renamed its Computing and Consumer reportable segment to Computing, Consumer and Industrial in order to reflect the operations of ZMDI which are primarily aggregated into the Computing, Consumer and Industrial reportable segment.

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The tables below provide information about these segments:

Revenues by segment	Three Months Ended				Nine Months Ended
(in thousands)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
Communications	$	85,502	$	79,288	$	222,688	$	240,046
Computing, Consumer and Industrial	92,108		71,872		285,327		174,509
Total revenues	$	177,610	$	151,160	$	508,015	$	414,555

Income by segment from continuing operations	Three Months Ended						Nine Months Ended
(in thousands)	January 3, 2016			December 28, 2014			January 3, 2016			December 28, 2014
Communications	$	35,238		$	29,315		$	85,588		$	88,864
Computing, Consumer and Industrial	17,248			10,073			66,934			10,350
Unallocated expenses:
Amortization of intangible assets	(2,732		)	(1,347		)	(4,315		)	(5,572		)
Inventory fair market value adjustment	(890		)	—			(890		)	—
Assets impairment and recoveries	—			—			(119		)	(2,703		)
Stock-based compensation expense	(9,462		)	(5,875		)	(25,878		)	(16,562		)
Severance, retention and facility closure costs	(6,092		)	(338		)	(9,060		)	(1,250		)
Acquisition-related costs and other	(2,649		)	—			(2,649		)	—
Deferred compensation plan expense (income), net	(3		)	125			—			125
Proceeds from life insurance policies	—			25			—			8
Interest income (expense) and other, net	(2,035		)	954			1,201			1,778
Income from continuing operations, before income taxes	$	28,623		$	32,932		$	110,812		$	75,038

The Company does not allocate goodwill and intangible assets impairment charge, severance and retention costs, acquisition-related costs, stock-based compensation, interest income and other, and interest expense to its segments. In addition, the Company does not allocate assets to its segments. The Company excludes these items consistent with the manner in which it internally evaluates its results of operations.

Revenues from unaffiliated customers by geographic area, based on the customers' shipment locations, were as follows:

	Three Months Ended				Nine Months Ended
(in thousands)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
APAC	$	131,155	$	111,437	$	380,101	$	283,293
Americas (1)	18,779		15,869		57,474		52,631
Japan	9,011		9,326		25,756		30,015
Europe	18,665		14,528		44,684		48,616
Total revenues	$	177,610	$	151,160	$	508,015	$	414,555

(1) The revenues from the customers in the U.S. were $18.0 million and $14.6 million in the three months ended January 3, 2016 and December 28, 2014, respectively. The revenues from the customers in the U.S. were $54.3 million and $47.1 million in the nine months ended January 3, 2016 and December 28, 2014, respectively.

The Company utilizes global and regional distributors around the world, that buy product directly from the Company on behalf of their customers. Three distributors, Uniquest, Avnet and its affiliates, and SK Hynix and its affiliates accounted for 14%, 13%, and 13%, respectively, of the Company's revenues in the three months ended January 3, 2016. Three distributors, Uniquest, SK Hynix and its affiliates, and Avnet and its affiliates accounted for 17%, 13% and 13%, respectively, of the Company's revenues

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in the nine months ended January 3, 2016. One distributor, Uniquest accounted for 17% and 13%, respectively, of the Company's revenues in the three and nine months ended December 28, 2014.

At January 3, 2016, three distributors represented approximately 18%, 11% and 10%, respectively, of the Company’s gross accounts receivable. At March 29, 2015, two distributors represented approximately 10% and 11%, respectively, of the Company’s gross accounts receivable.

The Company’s significant operations outside of the United States include test facilities in Malaysia and Germany, design centers in Canada and China, and sales subsidiaries in Japan, APAC and Europe. The Company's net property, plant and equipment, are summarized below by geographic area: 

(in thousands)	January 3, 2016		March 29, 2015
United States	$	37,703	$	38,879
Malaysia	20,250		21,244
Germany	10,681		—
Canada	3,587		3,997
All other countries	1,548		1,388
Total property, plant and equipment, net	$	73,769	$	65,508

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act).  Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking. Forward-looking statements, which are generally identified by words such as “anticipates,” “expects,” “plans,” “intends,” “seeks,” “targets,” “believes,” “can,” “may,” “might,” “could,” “should,” “would,” “will” and similar terms, include statements related to, among others, revenues and gross profit, research and development activities, selling, general and administrative expenses, restructuring costs, intangible expenses, interest income and other, taxes, capital spending and financing transactions, as well as statements regarding successful development and market acceptance of new products, industry and overall economic conditions and demand, and capacity utilization. Forward-looking statements are based upon current expectations, estimates, forecasts and projections that involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to: global business and economic conditions; operating results; new product introductions and sales; competitive conditions; capital expenditures and resources; manufacturing capacity utilization; customer demand and inventory levels; product performance; intellectual property matters; mergers and acquisitions and integration activities; and the risk factors set forth in Part II, Item 1A, “Risk Factors” to this Quarterly Report on Form 10-Q.  As a result of these risks and uncertainties, actual results could differ significantly from those expressed or implied in the forward-looking statements.  Unless otherwise required by law, we undertake no obligation to publicly revise these statements for future events or new information after the date of this Quarterly Report on Form 10-Q.

This discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and accompanying Notes included in this report and the Audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended March 29, 2015 filed with the SEC. Operating results for the three and nine months ended January 3, 2016 are not necessarily indicative of operating results for an entire fiscal year.

Critical Accounting Policies

Our condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S.  The preparation of such statements requires us to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period and the reported amounts of assets and liabilities as of the date of the financial statements.  Our estimates and assumptions are based on historical experience and other factors that we consider to be appropriate in the circumstances.  However, actual future results may vary from our estimates and assumptions.

For a discussion of our critical accounting policies, see Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended March 29, 2015 and our Condensed Consolidated Financial Statements and accompanying Notes included in this report. We believe that these accounting policies are "critical," as defined by the SEC, in that they are both highly important to the portrayal of our financial condition and results, and they require difficult management judgments, estimates and assumptions about matters that are inherently uncertain. Except for the newly adopted accounting policies discussed in Note 1 to the Condensed Consolidated Financial Statements included in this report, we believe that there have been no other significant changes during the three and nine months ended January 3, 2016 to the items that we disclosed as our critical accounting policies in our Annual Report on Form 10-K for the fiscal year ended March 29, 2015.

Business Overview

We develop a broad range of low-power, high-performance mixed-signal semiconductor solutions that optimize our customers’ applications in key markets. In addition to our market-leading timing products, we offer semiconductors targeting communications infrastructure - both wired and wireless - high-performance computing and power management. These products are used for next-generation development in areas such as 4G infrastructure, network communications, cloud data centers and power management for computing and mobile devices.

Our top talent and technology paired with an innovative product-development philosophy allows us to solve complex customer problems when designing communications, computing and consumer applications. Through system-level analog and digital innovation, we consistently deliver extraordinary value to our customers.

For more information on our business, please see Part I, Item 1, “Business,” in our Annual Report on Form 10-K for the fiscal year ended March 29, 2015.

Our fiscal year is the 52 or 53 week period ending on the Sunday closest to March 31. In a 52 week year, each fiscal quarter consists of 13 weeks. In a 53 week year, the additional week is usually added to the third quarter, making such quarter consist of 14 weeks. The first and second quarters of fiscal 2016 and fiscal 2015 were 13 week periods, the third quarter of fiscal 2016 was 14 weeks, and the third quarter of fiscal 2015 was 13 weeks.

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Recent developments

Acquisition of Zentrum Mikroelektonik Dresden AG

On December 7, 2015, we completed the acquisition of all of the outstanding no-par-value shares of Zentrum Mikroelektronik Dresden AG (ZMDI), a privately-held company mainly operating in Germany, in an all-cash transaction for approximately $307 million. ZMDI is a global supplier of sensing and digital power semiconductor solutions for automotive, industrial, mobile sensing and other consumer applications. The acquisition provides the Company a significant new growth opportunity in the automotive and industrial business. As a result of this acquisition, we recorded amortizable intangible assets of $126.2 million and goodwill of $170.1 million during the third quarter of fiscal 2016. In addition, we recorded approximately $2.1 million of acquisition related costs during the third quarter of fiscal 2016, which were included in Selling, General and Administrative Expenses in the Condensed Consolidated Statements of Operations.

Convertible Notes Offering

On November 3, 2015, we issued $373.8 million aggregate principal amount of 0.875% Convertible Senior Notes (the Convertible Notes) due 2022. The net proceeds from this offering were approximately $363.4 million, after deducting the initial purchasers' discounts and commissions and the estimated offering expenses. The net proceeds were primarily used in the purchase of note hedges and repurchases of our common stock. We intend to use the remainder of the net proceeds for working capital and general corporate purposes. Refer to Note 16 for details.

Convertible Note Hedge and Warrant Transactions

In connection with the convertible notes offering, we also entered into two other separate transactions which involved purchase of a note hedge for $94.2 million and issuance of warrants for $56.8 million. We used $37.4 million of the net proceeds from the convertible notes offering to pay for the cost of the note hedge, after such cost was partially offset by the proceeds we received from the issuance of warrants. Refer to Note 16 for details.

Accelerated Share Repurchase

On November 2, 2015, we separately entered into an accelerated share repurchase agreement (the ASR Agreements) with JPMorgan Chase Bank and Bank of America (the Dealers) to repurchase a total of $225 million of our common stock. We received approximately 7.0 million shares of our common stock on November 5, 2015, in accordance with the terms of the ASR Agreements. Of the total initial amount paid to the Dealers, $45 million represents prepayment for subsequent settlement of the ASR Agreements, as of January 3, 2016.

In January 2016, the ASR Agreements settled resulting in the repurchase of 1.6 million of the Company’s common stock at an average price per share of $28.32.

High-Speed Converter (“HSC”) Business

In fiscal 2014, we initiated a project to divest our HSC business and have classified the related assets, as held for sale. The HSC business included the assets of NXP B.V.’s Data Converter Business and Alvand Technologies, Inc., which were acquired in fiscal 2013.

On May 30, 2014, we completed the sale of certain assets related to the Alvand portion of the HSC business to a buyer pursuant to an Asset Purchase Agreement. Upon the closing of the transaction, the buyer paid us $18.0 million in cash consideration, of which $2.7 million was initially held in an escrow account and was paid to us in December 2015. We recorded a gain of $16.8 million in discontinued operations related to this divestiture during the first quarter of fiscal 2015.

Following the sale of assets related to the Alvand portion of the HSC business, the business had remaining long-lived assets classified as held for sale amounting to $8.5 million, which consisted of $2.9 million in fixed assets and $5.6 million in intangible assets. We evaluated the carrying value of the disposal group and determined that it exceeded its estimated fair value based on estimated selling price less cost to sell. Accordingly, total impairment charge of $8.5 million was recorded as loss from discontinued operations on the Condensed Consolidated Statement of Operations in the first quarter of fiscal 2015.

As of March 29, 2015, all long-lived assets related to the HSC business were fully impaired.

On April 27, 2015, we completed the sale of the remaining HSC business to eSilicon Corporation (“eSilicon”), for $1.5 million which will be paid on or before April 27, 2017. In connection with the sale, we entered into an Exclusive Intellectual Property License Agreement with eSilicon, whereby we provided an exclusive license to eSilicon to develop, manufacture, sell and maintain HSC products. In connection with the sale, the Company and eSilicon also entered into a Transition Services Agreement, whereby we will provide certain transition services over a specific period from the effective date of the sale. The transition services do not represent significant continuing involvement of the Company in the HSC business. Also, as part of the sale, we transferred to eSilicon certain equipment and inventory with net carrying value of $0.1 million.

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As of January 3, 2016, we had a receivable of $1.5 million representing uncollected proceeds from the sale that was included under Other Assets on the Condensed Consolidated Balance Sheet. Given the term of the sale, we deferred the gain from this divestiture amounting to $1.4 million and will recognize it into discontinued operations when collectibility becomes certain.

The HSC business was included in the Communications reportable segment. For financial statements purposes, the results of operations for the HSC business have been segregated from those of the continuing operations and are presented in the condensed consolidated financial statements as discontinued operations.

Overview

The following table and discussion provides an overview of our operating results from continuing operations for the three and nine months ended January 3, 2016 and December 28, 2014: 

	Three Months Ended						Nine Months Ended
(in thousands, except for percentage)	January 3, 2016			December 28, 2014			January 3, 2016			December 28, 2014
Revenues	$	177,610		$	151,160		$	508,015		$	414,555
Gross profit	$	107,911		$	91,364		$	313,691		$	247,249
As a % of revenues	61		%	60		%	62		%	60		%
Operating income	$	30,631		$	31,374		$	109,986		$	72,213
As a % of revenues	17		%	21		%	22		%	17		%
Net income from continuing operations	$	32,545		$	32,841		$	113,688		$	74,198
As a % of revenues	18		%	22		%	22		%	18		%

Our revenues increased by $26.5 million, or 17%, to $177.6 million in the quarter ended January 3, 2016 compared to the quarter ended December 28, 2014. The increase was primarily due to increased unit shipments in our Computing, Consumer and Industrial segment as we continued to experience increased demand for our memory interface and wireless power products. Revenue from the newly acquired business of ZMDI amounting to $3.4 million also contributed to the higher revenue. Gross profit percentage improved for the three months ended January 3, 2016 compared to the same period in fiscal 2015 primarily due to reduced manufacturing costs and improved inventory management. Net income from continuing operations was $32.5 million in the third quarter of fiscal 2016, as compared to $32.8 million in the third quarter of fiscal 2015. The increase in net income was primarily due to increased revenues and gross margin, offset in part by the overall increase in operating expenses.

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Results of Continuing Operations

Revenues

Revenues by segment:	Three Months Ended				Nine Months Ended
(in thousands)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
Communications	$	85,502	$	79,288	$	222,688	$	240,046
Computing, Consumer and Industrial	92,108		71,872		285,327		174,509
Total revenues	$	177,610	$	151,160	$	508,015	$	414,555

Product groups representing greater than 10% of net revenues:	Three Months Ended				Nine Months Ended
As a percentage of net revenues	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
Communications:
Communications timing products	14	%	21	%	16	%	23	%
Serial RapidIO products	14	%	17	%	12	%	19	%
All others less than 10% individually	20	%	14	%	16	%	16	%
Total communications	48	%	52	%	44	%	58	%
Computing, Consumer and Industrial:
Consumer and computing timing products	8	%	12	%	9	%	15	%
Memory interface products	32	%	17	%	35	%	21	%
All others less than 10% individually	12	%	19	%	12	%	6	%
Total computing and consumer	52	%	48	%	56	%	42	%
Total	100	%	100	%	100	%	100	%

Communications Segment

Revenues in our Communications segment increased $6.2 million, or 8%, to $85.5 million in the quarter ended January 3, 2016 as compared to the quarter ended December 28, 2014. The increase was primarily due to $9.8 million increase in shipments of our legacy products, offset in part by $2.1 million and $1.7 million decreases in our networking and communications products and RapidIO switching solutions products, respectively, as a result of lower demand.

Revenues in our Communications segment decreased $17.4 million, or 7%, to $222.7 million in the nine months ended January 3, 2016 as compared to the nine months ended December 28, 2014. The decrease was primarily due to a $16.1 million decrease in shipments of our RapidIO switching solutions products as a result of lower demand combined with $9.1 million decrease in networking and communications products. These decreases were offset in part by a $7.2 million increase in our legacy products.

Computing, Consumer and Industrial Segment

Revenues in our Computing, Consumer and Industrial segment increased $20.2 million, or 28% to $92.1 million in the quarter ended January 3, 2016 as compared to the quarter ended December 28, 2014. The increase was primarily due to a $14.0 million increase in memory interface product revenues as a result of stronger demand, combined with an $8.5 million increase in shipments of wireless power products as our wireless business continues to grow and a $3.4 million revenue contribution from the ZMDI business, which mainly includes sensing products for mobile, automotive and industrial end-markets. These increases were offset in part by a $4.9 million decrease in timing products.

Revenues in our Computing, Consumer and Industrial segment increased $110.8 million, or 64% to $285.3 million in the nine months ended January 3, 2016 as compared to the nine months ended December 28, 2014. The increase was primarily due to a $89.1 million increase in memory interface product revenues as a result of stronger demand, combined with a $28.6 million increase in shipments of wireless power products as our wireless business continues to grow, a $4.7 million increased revenue from power and energy management products and a $3.4 million revenue from sensing products for mobile, automotive and industrial end-markets. These increases were offset in part by a $14.7 million decrease in timing products.

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Revenues by Region

Revenues in the quarter ended January 3, 2016 increased primarily in APAC (Asia Pacific region excluding Japan) as compared to the quarter ended December 28, 2014. Revenues in APAC, the Americas, Japan and Europe accounted for 74%, 11%, 5% and 11%, respectively, of consolidated revenues in the quarter ended January 3, 2016 compared to 66%, 14%, 8% and 12% of our consolidated revenues in the quarter ended December 28, 2014. The APAC region continues to be our strongest region, as many of our largest customers utilize manufacturers in that region.

Revenues in the nine months ended January 3, 2016 increased primarily in APAC (Asia Pacific region excluding Japan) as compared to the nine months ended December 28, 2014. Revenues in APAC, the Americas, Japan and Europe accounted for 75%, 11%, 5% and 9%, respectively, of consolidated revenues in the nine months ended January 3, 2016 compared to 68%, 13%, 8% and 12% of our consolidated revenues in the nine months ended December 28, 2014. The APAC region continues to be our strongest region, as many of our largest customers utilize manufacturers in that region.

Gross Profit

	Three Months Ended						Nine Months Ended
	January 3, 2016			December 28, 2014			January 3, 2016			December 28, 2014
Gross Profit (in thousands)	$	107,911		$	91,364		$	313,691		$	247,249
Gross Profit Percentage	60.8		%	60.4		%	61.7		%	59.6		%

Gross profit increased $16.5 million and $66.4 million in the three and nine months ended January 3, 2016 compared to the three and nine months ended December 28, 2014, as a result of increased revenues combined with a higher gross margin percentage. Gross profit as a percentage of revenues increased 0.4% and 2.1% in the three and nine months ended January 3, 2016 compared to the three and nine months ended December 28, 2014. Gross profit percentage improved primarily due to reduced manufacturing costs and improved inventory management.

Operating Expenses

The following table presents our operating expenses for the three and nine months ended January 3, 2016 and December 28, 2014:

	Three Months Ended								Nine Months Ended
	January 3, 2016				December 28, 2014				January 3, 2016				December 28, 2014
(in thousands, except for percentages)	Dollar Amount		% of Net Revenue		Dollar Amount		% of Net Revenue		Dollar Amount		% of Net Revenues		Dollar Amount		% of Net Revenues
Research and development	$	38,429	22	%	$	32,825	22	%	$	107,484	21	%	$	95,617	23	%
Selling, general and administrative	$	38,851	22	%	$	27,165	18	%	$	96,221	19	%	$	79,419	19	%

Research and Development (R&D)

R&D expense increased $5.6 million, or 17.1%, to $38.4 million in the quarter ended January 3, 2016 compared to the quarter ended December 28, 2014. The increase was primarily driven by a $2.9 million increase in R&D labor and benefit related costs, a $1.9 million increase in stock-based compensation, a $0.9 million increase in R&D consulting and outside services and a $0.6 million increase in photomasks and R&D materials. These increases were partly offset by a $0.9 million decrease in accrued employee bonus expense.

R&D expense increased $11.9 million, or 12.4%, to 107.5 million in the nine months ended January 3, 2016 compared to the nine months ended December 28, 2014. The increase was primarily driven by a $4.8 million increase in R&D labor and benefit related costs, a $4.3 million increase in stock-based compensation, a $1.2 million increase in R&D consulting and outside services and a $1.1 million in photomasks and R&D materials.

Selling, General and Administrative(SG&A)

SG&A expense increased $11.7 million, or 43.0%, to $38.9 million in the quarter ended January 3, 2016 as compared to the quarter ended December 28, 2014. The increase was primarily driven by a $5.5 million increase in severance costs as a result of headcount reductions during the current quarter, a $2.1 million increase in acquisition-related costs, a $1.7 million increase in SG&A labor and benefit related costs, a $1.6 million increase in stock-based compensation and a $1.1 million in amortization of newly acquired intangible assets.

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SG&A expense increased $16.8 million, or 21.2%, to $96.2 million in the nine months ended January 3, 2016 as compared to the nine months ended December 28, 2014. The increase was primarily driven by a $6.7 million increase in severance costs as a result of headcount reductions during the current period, a $4.4 million increase in stock-based compensation, a $2.1 million increase in acquisition-related costs, a $1.9 million increase in SG&A labor and benefit related costs and a $1.4 million increase in consulting and outside services.

Interest Income and Expense and Other, Net 

The components of interest income, interest expense and other, net are summarized as follows:

	Three Months Ended						Nine Months Ended
(in thousands)	January 3, 2016			December 28, 2014			January 3, 2016			December 28, 2014
Interest income	$	827		$	738		$	2,916		$	1,857
Interest expense	$	(2,934	)	$	(12	)	$	(2,957	)	$	(25	)
Other income, net	99			832			867			993
Interest and other, net	$	(2,008	)	$	1,558		$	826		$	2,825

Interest income is derived from earnings on our cash and short-term investments. Interest expense is primarily comprised of coupon interest, amortization of issuance costs and accretion of debt discount related to the Convertible Notes we issued in November 2015. Other income, net primarily consists of gains or losses in the value of deferred compensation plan assets, foreign currency gains or losses and other non-operating gains or losses. The decrease in interest income in the nine months ended January 3, 2016 as compared to the same period in prior year was primarily attributable to lower level of short-term investments. The decrease in other income in the three and nine months quarter ended January 3, 2016 as compared to the same periods in prior year was primarily due to decrease in value of the underlying investments of the deferred compensation plan and unfavorable impact of foreign currency fluctuations.

Income Tax Expense

During the three and nine months ended January 3, 2016, we recorded an income tax benefit from continuing operations of $3.9 million and $2.9 million, respectively. The income tax benefit recorded in the three and nine months ended January 3, 2016 was primarily due to the tax benefit on the amortization of acquired intangible assets and severance costs in jurisdictions where no valuation allowance is in place, partially offset by taxes on earnings in foreign jurisdictions. We recorded an income tax expense from continuing operations of $0.1 million and $0.8 million in the three and nine months ended December 28, 2014, respectively. The income tax expense recorded in the three and nine months ended September 28, 2014 was primarily due to taxes on earnings in foreign jurisdictions.

As of January 3, 2016, we continued to maintain a valuation allowance against our net U.S. and foreign deferred tax assets, as we could not conclude that it was more likely than not that we would be able to realize our U.S. and foreign deferred tax assets. Given the continued improvement in our operations combined with certain tax strategies, it is reasonably possible that within the next 12 months, positive evidence will be sufficient to release a material amount of our valuation allowance. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. The exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that we are able to actually achieve. We will continue to evaluate the release of the valuation allowance on a quarterly basis.

After examination of our projected offshore cash flows, and global cash requirements, we determined that beginning in fiscal year 2016, we would no longer require 100% of our future foreign generated cash to support our foreign operations. We plan to repatriate a portion of our current year offshore earnings to the U.S. for domestic operations, and have accrued for the related tax impacts accordingly. For earnings accumulated as of March 29, 2015, we continue to indefinitely reinvest such amounts in our foreign jurisdictions, except to the extent there is any previously taxed income which is expected to be repatriated. If circumstances change and it becomes apparent that some or all of those undistributed earnings of our offshore subsidiary will be remitted in the foreseeable future but income taxes have not been recognized, we will accrue income taxes attributable to that remittance.

We benefit from tax incentives granted by local tax authorities in certain foreign jurisdictions. In the fourth quarter of fiscal 2011, we agreed with the Malaysia Industrial Development Board to enter into a new tax incentive agreement which is a full tax exemption on statutory income for a period of 10 years commencing April 4, 2011. This tax incentive agreement is subject to the Company meeting certain financial targets, investments, headcounts and activities in Malaysia.

During the quarter ended June 28, 2015, we reached an understanding regarding the terms for settling with the U.S. Internal Revenue Service ("IRS") and closed out all positions as part of the examination of our income tax returns for the fiscal years 2010 through 2012. As a result, we remeasured our tax positions based on the facts, circumstances, and information available at the

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reporting date. The outcome did not have a material effect on our financial position, cash flows or results of operations due to our tax attributes, which are fully offset by a valuation allowance.

As of January 3, 2016, we were under examination in Singapore. Our fiscal years 2009 through 2012 are under audit by the Inland Revenue Authority of Singapore. Although the final outcome is uncertain, based on currently available information, we believe that the ultimate outcome will not have a material adverse effect on our financial position, cash flows or results of operations.

Our open years in the U.S. federal jurisdiction are fiscal 2013 and later years. In addition, we are effectively subject to federal tax examination adjustments for tax years ended on or after fiscal year 1999, in that we have tax attribute carryforwards from these years that could be subject to adjustments, if and when utilized. Our open years in various state and foreign jurisdictions are fiscal years 2008 and later.

We do not expect a material change in unrecognized tax benefits within the next twelve months.

On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. At this time, the U.S. Department of the Treasury has not withdrawn the requirement to include stock-based compensation from its regulations. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits, and the risk of the Tax Court’s decision being overturned upon appeal, we have not recorded any benefit as of January 3, 2016. We will continue to monitor ongoing developments and potential impacts to our financial statements.

Liquidity and Capital Resources

Our cash and cash equivalents and short-term investments were $352.3 million at January 3, 2016, a decrease of $202.7 million compared to March 29, 2015. 

We had an outstanding debt in the form of convertible notes amounting to $373.8 million at January 3, 2016. We had no outstanding debt at March 29, 2015.

Cash Flows from Operating Activities

Net cash provided by operating activities totaled $159.0 million in the nine months ended January 3, 2016 compared to $111.1 million in the nine months ended December 28, 2014. Cash provided by operating activities in the nine months ended January 3, 2016 consisted of our net income of $113.1 million, adjusted to add back stock-based compensation, depreciation, amortization, impairment charges, amortization of debt issue cost and debt discount and other non-cash items which totaled $42.5 million less net gain on sale of asset of $0.3 million; and cash provided by working capital requirements. In the nine months ended January 3, 2016, excluding the effects of non-cash activities, cash provided by working capital requirements was $3.7 million and consisted primarily of a $10.4 million decrease in inventories, a $8.3 million decrease in accounts receivable and a $4.5 million decrease in prepaid and other other assets. These were offset in part by a $7.2 million decrease in deferred income, a $5.4 million decrease in accrued compensation and related expense, a $4.1 million decrease in other accrued liabilities and a $2.8 million decrease in accounts payable.

Cash Flows from Investing Activities

Net cash used in investing activities in the nine months ended January 3, 2016 was $67.5 million compared to net cash used of $22.2 million in the nine months ended December 28, 2014.  Net cash used in investing activities in the nine months ended January 3, 2016 was primarily due to $279.1 million of payments to purchase ZMDI, net of cash acquired, $12.5 million of expenditures to purchase capital equipment, $10.8 million of payments to acquire intangible assets and $2.0 million for purchase of convertible note. These uses were offset in part by $234.3 million for the net sale of short-term investments and $2.7 million from collection of escrow receivable.

Cash Flows from Financing Activities

Net cash used in financing activities was $55.7 million in the nine months ended January 3, 2016 as compared to net cash used of $49.5 million in the nine months ended December 28, 2014. Cash used in financing activities in the nine months ended January 3, 2016 was primarily due to $344.2 million in stock buyback, $94.2 million payment for convertible note hedges, $45 million in prepayment for stock buyback and $9.2 million payment for bank loans. These uses were offset in part by $363.4 million of proceeds from issuance of convertible notes, net of issuance costs, $56.8 million of proceeds from issuance of warrants and $16.5 million from the exercise of stock options and the issuance of stock under our employee stock purchase plan.

We anticipate capital expenditures of approximately $15 million to $25 million during the next 12 months to be financed through cash generated from operations and existing cash and investments.

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In addition, as much of our revenues are generated outside the U.S., a significant portion of our cash and investment portfolio accumulates in the foreign countries in which we operate. At January 3, 2016, we had cash, cash equivalents and investments of approximately $245.5 million invested overseas in accounts belonging to various IDT foreign operating entities. While these amounts are primarily invested in U.S. dollars, a portion is held in foreign currencies, and all offshore balances are exposed to local political, banking, currency control and other risks. In addition, these amounts may be subject to tax and other transfer restrictions.

We believe that existing cash and investment balances, together with cash flows from operations, will be sufficient to meet our working capital and capital expenditure needs through at least the next 12 months. We may choose to investigate other financing alternatives to supplement U.S. liquidity; however, we cannot be certain that additional financing will be available on satisfactory terms.

Off-Balance Sheet Arrangements

We assumed an agreement with a financial institution to sell certain of its trade receivables from customers with limited, non-credit-related recourse provisions as part of an acquisition during the quarter ended January 3, 2016. Total receivables sold under the factoring facility during the quarter ended January 3, 2016 was $3.1 million. Total collections from sale of receivables and from deferred purchase payment during the quarter ended January 3, 2016 were $4.2 million and $0.4 million, respectively. Under the terms of the factoring agreement, the total available amount of the factoring facility as of January 3, 2016 was $2.9 million. The sales of accounts receivable in accordance with the factoring agreement are reflected as a reduction of Accounts Receivable, net in the Condensed Consolidated Balance Sheets as they meet the applicable criteria of ASC 860, Transfers and Servicing. Collections of deferred purchase payment are included in the change in accounts receivable under the operating activities section of the Condensed Consolidated Statements of Cash Flows. The amount due from the factoring institution was $0.5 million at January 3, 2016, and is shown in Prepayments and Other Current Assets in the Condensed Consolidated Balance Sheets. We pay factoring fees associated with the sale of receivables based on the value of the receivables sold. Such fees are not material for the quarter ended January 3, 2016.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our interest rate risk relates primarily to our short-term investments of $199.3 million and $438.1 million as of January 3, 2016 and March 29, 2015, respectively.  By policy, we limit our exposure to long-term investments and mitigate the credit risk through diversification and adherence to a policy requiring the purchase of highly rated securities. As of January 3, 2016 and March 29, 2015, the Company’s cash, cash equivalents and investment portfolio was concentrated in securities with same day liquidity and a substantial majority of securities in our investment portfolio had maturities of less than two years. A hypothetical 10% change in interest rates would not have a material effect on the value of our investment portfolio as of January 3, 2016. We do not currently use derivative financial instruments in our investment portfolio.

At January 3, 2016, we had an outstanding debt of $373.8 million in the form of convertible note. As of March 29, 2015, we had no outstanding debt. The fair value of our Convertible Notes is subject to interest rate risk, market risk and other factors due to the convertible feature. The fair value of the Convertible Notes will generally increase as interest rates fall and decrease as interest rates rise. In addition, the fair value of the Convertible Notes will generally increase as our common stock price increases and will generally decrease as our common stock price declines in value. The interest and market value changes affect the fair value of our Convertible Notes but do not impact our financial position, cash flows or results of operations due to the fixed nature of the debt obligation.

We are exposed to foreign currency exchange rate risk as a result of international sales, assets and liabilities of foreign subsidiaries, local operating expenses of our foreign entities and capital purchases denominated in foreign currencies. We may use derivative financial instruments to help manage our foreign currency exchange exposures. We do not enter into derivatives for speculative or trading purposes. We have foreign exchange facilities used for hedging arrangements with banks that allow the Company to enter into foreign exchange contracts totaling approximately $20.0 million, all of which was available at January 3, 2016. We performed a sensitivity analysis as of January 3, 2016 and March 29, 2015 and determined that, without hedging the exposure, a 10% change in the value of the U.S. dollar would result in an approximate 0.2% and 0.4% impact on gross profit margin percentage, respectively, as we operate a manufacturing testing facility in Malaysia, and an approximate 0.8% and 0.6% impact to operating expenses (as a percentage of revenue), respectively, as we operate sales offices in Japan, Taiwan and South Korea and throughout Europe and design centers in China and Canada. At January 3, 2016 and March 29, 2015, we had no material outstanding foreign exchange contracts.

We did not have any material currency exposure related to any outstanding capital purchases as of January 3, 2016 and March 29, 2015.

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ITEM 4. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, our management recognizes that any disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives, and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures.

At January 3, 2016, the end of the quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure control and procedures were effective at a reasonable assurance level. There have been no changes in our internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonable likely to materially affect, our internal controls over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Litigation

In January 2012, Maxim I Properties, a general partnership that had purchased a certain parcel of real property (the Property) in 2003, filed a complaint in the Northern District of California naming approximately 30 defendants, including the Company ("Defendants"), alleging various environmental violations of the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and Resource Conservation and Recovery Act (RCRA), the California Hazardous Substance Account Act (HSAA), and other common law claims (the Complaint). The Complaint alleged that Defendants including the Company “…generated, transported, and/or arranged for the transport and/or disposal of hazardous waste to the Property.” On August 15, 2012, Maxim I Properties voluntarily dismissed its Complaint without prejudice. However, another defendant, Moyer Products, Inc., counter-claimed against the plaintiff, Maxim, and cross-claimed against the remaining co-Defendants, including the Company. Thus, we remain a cross-defendant in this action.

In a related, but independent action, the California Department of Toxic Substances Control (DTSC) notified the Company in September 2012 that the Company, and more than 50 other entities, were being named as respondents to DTSC's Enforcement Order, as “a generator of hazardous waste.” In April 2013, the Company, along with the other “respondent” parties, entered into a Corrective Action Consent Agreement (CACA) with the DTSC, agreeing to conduct the Property investigation and corrective action selection. The CACA supersedes the DTSC’s Enforcement Order. The Northern District of California federal court stayed the Maxim/Moyer litigation pending the Property investigation under the CACA and DTSC's corrective action selection.

Property investigation activity took place between April 2013 and June, 2015. On June 23, 2015, the DTSC deemed the Property investigation complete. The DTSC continues to evaluate corrective action alternatives. The Company will continue to vigorously defend itself against the allegations in the Complaint and evaluate settlement options with Moyer upon notification from DTSC of its corrective action selection. No specific corrective action has been selected yet, and thus no specific monetary demands have been made.

As of January 3, 2016, the Company is also a party to various other legal proceedings and claims arising in the normal course of business. With regard to these or future litigation matters that may arise, potential liability and probable losses or ranges of possible losses due to an unfavorable litigation outcome cannot be reasonably estimated at this time. Generally, litigation is subject to inherent uncertainties, and no assurance can be given that the Company will prevail in the Maxim lawsuit or any other particular lawsuit or claim. Pending lawsuits, claims as well as potential future litigation, could result in substantial costs and diversion of resources and could have a material adverse effect on the Company's financial condition, results of operations or cash flows.

ITEM 1A.  RISK FACTORS

Investing in our common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below and all information contained in this report before you decide to purchase our common stock. These risk factors are intended to highlight certain factors that may affect our financial condition and results of operations and are not meant to be an exhaustive discussion of risks that we may face. Our operations could also be affected by factors that are not presently known to us or that we currently consider to be immaterial to our operations. Due to risk and uncertainties, both known and unknown, we may be unable to conduct our business as currently planned and our financial condition and operating results could be adversely impacted.

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In addition, the price of our securities is subject to volatility and could decline due to the occurrence of any of these risks, causing investors to lose all or part of their investment.

Our operating results can fluctuate dramatically.  Our operating results have fluctuated in the past and are likely to vary in the future. Past financial results may not be a reliable indicator of future performance. Fluctuations in operating results can result from a wide variety of factors, including:

• global economic conditions, including those related to the credit markets;

• the cyclicality of the semiconductor industry;

• changes in the demand for and mix of products sold and in the markets we and our customers serve;

• the availability of industry-wide wafer processing capacity;

• the availability of industry-wide and package specific assembly subcontract capacity and related raw materials;

• competitive pricing pressures;

• the success and timing of new product and process technology announcements and introductions from us or our competitors;

• potential loss of market share among a concentrated group of customers;

• difficulty in attracting and retaining key personnel;

• difficulty in predicting customer product requirements;

• production difficulties and interruptions caused by our complex manufacturing and logistics operations;

• limited control over our manufacturing and product delivery as a result of our reliance on subcontractors, foundry and other manufacturing services;

• unrealized potential of acquired businesses and resulting assets impairment;

• availability and costs of raw materials from a limited number of suppliers;

• political, economic and health conditions in various geographic areas;

• timing and execution of plans and programs subject to foreign labor law requirements, including consultation with work councils;

• reduced customer demand as a result of the impact from natural and/or man-made disasters which may adversely impact our customer's manufacturing capability or reduce our customer's ability to acquire critical materials or components to manufacture their end products;

• costs associated with other events, such as intellectual property disputes or other litigation; and

• legislative, tax, accounting, or regulatory changes or changes in their interpretation.

Global economic and geo-political conditions may adversely affect our business and results of operations.

We have and/or rely on facilities and operations in many countries throughout the world and some of our operations are concentrated in one or more geographic regions. Significant portion of our revenue comes from shipments to locations outside the United States. As a result of the breadth of our international operations, we are subject to the potential for substantial volatility in global capital markets and the global demand for semiconductor product. Our financial results and operations, including our ability to manufacture, assemble and test, design, develop and sell products, may be adversely affected by various global economic and geo-political conditions which can include:

• slow, uneven economic growth throughout the world;

• uncertainty regarding macroeconomic conditions and/or an institutional or economic collapse in a geographic region;

• geo-political events and security breaches throughout the world, such as armed conflict, civil or military unrest, political instability, terrorist activity, cyber attacks and data fraud or theft;

• natural disasters and public health issues including pandemics and outbreaks of infectious diseases; and

• large scale disruptions in transportation, communications and information technology networks.

The cyclicality of the semiconductor industry exacerbates the volatility of our operating results.

The semiconductor industry is highly cyclical and has experienced significant downturns, often in connection with product cycles of both semiconductor companies and their customers, but also related to declines in general economic conditions. These downturns have been characterized by volatile customer demand, high inventory levels and accelerated erosion of average selling prices. Any future economic downturns could materially and adversely affect our business from one period to the next relative to demand and product pricing. In addition, the semiconductor industry may experience periods of increased demand, during which we may experience internal and external manufacturing constraints. We may also experience substantial changes in future operating results due to the cyclical nature of the semiconductor industry.

The acquisition of ZMDI and the integration of its business, operations and employees with our own will involve risks and the failure to integrate successfully in the expected time frame may adversely affect our future results.

Any failure to successfully integrate the business, operations and employees of ZMDI could harm our results of operations. Our ability to realize these benefits will depend, in part, on the timely integration and consolidation of organizations, operations,

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facilities, procedures, policies and technologies, and the harmonization of differences in the business cultures between the two companies and their personnel. Implementation and integration of the ZMDI business will be complex and time-consuming, will involve additional expense and could disrupt our business and divert management's attention from ongoing business concerns. The challenges involved in integrating ZMDI will include:

• preserving customer, supplier and other important relationships of both ZMDI and the Company;

• coordinating and integrating operations in Germany;

• integrating financial forecasting and controls, procedures and reporting cycles;

• combining and integrating information technology systems; and

• integrating employees and related human resources systems and benefits, maintaining employee morale and retaining key employees.

The benefits we expect to realize from the acquisition of ZMDI are, necessarily, based on projections and assumptions about the combined businesses of the Company and ZMDI and assume, among other things, the successful integration of ZMDI into our business and operations. We may not successfully integrate ZMDI and our operations in a timely manner, or at all. If we do not realize the anticipated benefits of this transaction, our growth strategy and future profitability could be affected. In addition, the acquisition significantly increased the amount of our goodwill and other intangible assets, which could adversely affect our future results of operations.

We have a substantial amount of indebtedness which could adversely affect our financial position and prevent us from implementing our strategy or fulfilling our contractual obligations.

In November 2015, we issued $373.8 million of 0.875% Convertible Senior Notes due 2022 (Convertible Notes). Our substantial indebtedness may:

• limit our ability to use our cash flow or borrow additional funds for working capital, capital expenditures, acquisitions and general corporate and other purposes;  

• make it difficult for us to satisfy our financial obligations;

• place us at a competitive disadvantage compared to our less leveraged competitors; and

• increase our vulnerability to the impact of adverse economic and industry conditions.

Any of these factors could materially and adversely affect our business, financial condition and results of operations. In addition, if we incur additional indebtedness, the risks related to our business and our ability to service or repay our indebtedness would increase.

The exercise of warrants issued to JPMorgan Chase Bank concurrently with our Convertible Notes would, and the conversion of our Conversion Notes could, dilute the ownership interest of our existing shareholders.

If the market price per share of our common stock, as measured under the terms of the warrant transactions, exceeds the strike price of the warrants during the measurement period at the maturity of the warrants, we will owe JPMorgan Chase Bank a number of shares of our common stock in an amount based on the excess of such market price per share of our common stock over the strike price of the warrants. Any issuance by us of additional shares to JPMorgan Chase Bank upon exercise of the warrants will dilute the ownership interest of our existing shareholders. In addition, the conversion of our Convertible Notes will dilute the ownership interests of our existing shareholders and could have a dilutive effect on our net income per share to the extent that the price of our common stock exceeds the conversion price of the Convertible Notes. Any sales in the public market by JPMorgan Chase Bank of our common stock upon exercise of the warrants or sales in the public market of our common stock issuable upon conversion of the Convertible Notes could adversely affect prevailing market prices of our common stock.

We have made and may continue to make acquisitions and divestitures which could divert management's attention, cause ownership dilution to our stockholders, be difficult to integrate, and/or adversely affect our financial results.

Acquisitions and divestitures are commonplace in the semiconductor industry and we have acquired and divested, and may continue to acquire or divest, businesses and technologies. Integrating newly acquired businesses or technologies could put a strain on our resources, could be costly and time consuming, and might not be successful. Acquisitions or divestitures could divert our management's attention and other resources from other business concerns. In addition, we might lose key employees while integrating new organizations. Acquisitions and divestitures could also result in customer dissatisfaction, performance problems with an acquired company or technology, dilutive or potentially dilutive issuances of equity securities, the incurrence of debt, the assumption or incurrence of contingent liabilities, or other unanticipated events or circumstances, any of which could harm our business. Consequently, we might not be successful in acquiring or integrating any new businesses, products, or technologies, and might not achieve anticipated revenues and cost benefits. In addition, we might be unsuccessful in finding or completing acquisition or divestiture opportunities on acceptable terms in a timely manner.

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Demand for our products depends primarily on demand in the communications, enterprise computing, personal computer (PC), and consumer markets which can be significantly affected by concerns over macroeconomic issues.

Our product portfolio consists predominantly of semiconductor solutions for the communications, computing, and consumer markets. Our strategy and resources are directed at the development, production and marketing of products for these markets. The markets for our products will depend on continued and growing demand for communications equipment, servers, PCs and consumer electronics. These end-user markets may experience changes in demand that could adversely affect our business and could be greater in periods of economic uncertainty and contraction. To the extent demand or markets for our products do not grow, our business could be adversely affected.

We rely upon subcontractors and third-party foundries.

We are dependent on third-party subcontractors for all of our assembly operations. We are also dependent on third-party outside foundries for the manufacture of our silicon wafers. Our reliance on subcontractors and third-party foundries for our current products presents certain risks because we will have less control over manufacturing quality and delivery schedules, maintenance of sufficient capacity to meet our orders and maintaining in place the manufacturing processes we require. During the fourth quarter of fiscal 2012, we completed the transfer of our internal wafer fabrication production to outside foundries. Due to production lead times and potential capacity constraints, any failure on our part to adequately forecast the mix of product demand and resulting foundry and subcontractor requirements could adversely affect our operating results. In addition, we cannot be certain that these foundries and subcontractors will continue to manufacture, assemble, package and test products for us on acceptable economic and quality terms, or at all, and it may be difficult for us to find alternatives in a timely and cost-effective manner if they do not do so.

We build most of our products based on estimated demand forecasts.

Demand for our products can change rapidly and without advance notice. Demand can also be affected by changes in our customers' levels of inventory and differences in the timing and pattern of orders from their end customers. A large percentage of our revenue in the APAC region is recognized upon shipment to our distributors. Consequently, we have less visibility over both inventory levels at our distributors and end customer demand for our products. Further, the distributors have assumed more risk associated with changes in end demand for our products. Accordingly, significant changes in end demand in the semiconductor business in general, or for our products in particular, may be difficult for us to detect or otherwise measure, which could cause us to incorrectly forecast end-market demand for our products. If we are not able to accurately forecast end demand for our products, we may be left with large amounts of unsold products, may not be able to fill all actual orders, and may not be able to efficiently utilize our existing manufacturing capacity or make optimal investment and other business decisions. As a result, we may end up with excess and obsolete inventory or we may be unable to meet customer short-term demands, either of which could have an adverse impact on our operating results.

If we are unable to execute our business strategy successfully, our revenues and profitability may be adversely affected.

Our future financial performance and success are largely dependent on our ability to execute our business strategy successfully. Our present business strategy to be a leading provider of essential mixed signal semiconductor solutions will be affected, without limitation, by: (1) our ability to continue to aggressively manage, maintain and refine our product portfolio including focus on the development and growth of new applications; (2) our ability to continue to maintain existing customers, aggressively pursue and win new customers; (3) our ability to successfully develop, manufacture and market new products in a timely manner; (4) our ability to develop new products in a more efficient manner; (5) our ability to sufficiently differentiate and enhance our products; (6) our ability to successfully deploy research and development (R&D) investment in the areas of displays, silicon timing, power management, signal integrity and radio frequency, and (7) our ability to improve our results of operations.

Our business strategy is based on our assumptions about the future demand for our current products and the new products and applications that we are developing and on our ability to produce our products profitably. We may not be successful in carrying out our business strategy. Further, some or all of our assumptions may be incorrect and our business strategy may not sustain or improve our results of operations. In particular, we may not be able to build our position in markets with high growth potential, increase our volume or revenue, rationalize our manufacturing operations or reduce our costs and expenses.

In addition, circumstances beyond our control and changes in our business or industry may require us to change our business strategy at any given time.

We face significant competition.

The semiconductor industry is highly competitive and subject to rapid market developments and changes in industry standards, trends and desirable technology. If we do not anticipate and respond to these developments, our competitive position may weaken and our products and/or technologies may become undesirable or obsolete. Further, the price and product development pressures that result from competition may lead to reduced profit margins and lost business opportunities in the event that we are unable to match the price decline or cost efficiencies or advancements of our competitors.

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Our results are dependent on the success of new products.

The markets we serve are characterized by competition, rapid technological change, evolving standards, short product life cycles and continuous erosion of average selling prices. Consequently, our future success will be highly dependent upon our ability to continually develop new products using the latest and most cost-effective technologies, introduce our products in commercial quantities to the marketplace ahead of the competition and have our products selected for inclusion in leading system manufacturers' products. In addition, the development of new products will continue to require significant R&D expenditures. If we are unable to successfully develop, produce and market new products in a timely manner, have our products available in commercial quantities ahead of competitive products or have our products selected for inclusion in products of systems manufacturers and sell them at gross margins comparable to or better than our current products, our future results of operations could be adversely affected. In addition, our future revenue growth is also partially dependent on our ability to penetrate new markets in which we have limited experience and where competitors are already entrenched. Future success for certain new products will also depend on the development of product solutions for new emerging markets and new applications for existing markets. The success of such products is dependent on the ability of our customers and their customers to successfully develop new markets and gain market acceptance for new product solutions in those markets. Even if we are able to develop, produce and successfully market new products in a timely manner, such new products may not achieve market acceptance. The above described events could have a variety of negative effects on our competitive position and our financial results, such as reducing our revenue, increasing our costs, lowering our gross margin percentage, and ultimately leading to impairment of assets.

The loss of the services of any key personnel may adversely affect our business and growth prospects.

Our performance is substantially dependent on the performance of our executive officers and key employees. The loss of the services of any of our executive officers, technical personnel or other key employees could adversely affect our business. In addition, our future success depends on our ability to successfully compete with other technology firms in attracting and retaining specialized technical and management personnel. If we are unable to identify, hire, and retain highly qualified technical and managerial personnel, our business and growth prospects could be adversely affected.

We are dependent on a concentrated group of customers for a significant part of our revenues.

A large portion of our revenues depends on sales to a limited number of customers. If these relationships were to diminish, or if these customers were to develop their own solutions or adopt a competitor's solution instead of buying our products, our results could be adversely affected.

Many of our end-customer OEMs have outsourced their manufacturing to a concentrated group of global EMSs and original design manufacturers (ODMs) who then buy products directly from us or from our distributors on behalf of the OEM. These EMSs and ODMs have achieved greater autonomy in the design win, product qualification and product purchasing decisions, especially for commodity products. Competition for the business from EMSs and ODMs is intense and there is no assurance we can remain competitive and retain our existing market share with these customers. If these companies were to allocate a higher share of commodity or second-source business to our competitors instead of buying our products, our results would be adversely affected. Furthermore, as EMSs and ODMs have represented a growing percentage of our overall business, our concentration of credit and other business risks with these customers has increased. Competition among global EMSs and ODMs is intense as they operate on very low margins. If any one or more of our global EMSs or ODMs customers were to file for bankruptcy or otherwise experience significantly adverse financial conditions, our business would be adversely affected as well.

In addition, we utilize a relatively small number of global and regional distributors around the world, who buy product directly from us on behalf of their customers. If our business relationships with any of these distributors were to diminish or any of these distributors were to file for bankruptcy or otherwise experience significantly adverse financial conditions, our business could be adversely affected. Because we continue to be dependent on product demand from a small group of OEM end customers and global and regional distributors, any material delay, cancellation or reduction of orders from or loss of these or other major customers could cause our revenue to decline significantly.

We are dependent on a limited number of suppliers.

Our manufacturing operations depend upon obtaining adequate raw materials on a timely basis. The number of suppliers of certain raw materials, such as silicon wafers, ultra-pure metals and certain chemicals and gases needed for our products, is very limited. In addition, certain packages for our products require long lead times and are available from only a few suppliers. From time to time, suppliers have extended lead times or limited supply to us due to capacity constraints. Our results of operations would be materially and adversely affected if we were unable to obtain adequate supplies of raw materials in a timely manner or if there were significant increases in the costs of raw materials, or if foundry or assembly subcontractor capacity were not available, or if capacity were only available at unfavorable prices.

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Our operations and business could be significantly harmed by natural disasters or acts of terrorism.

A majority of the third-party foundries and subcontractors we currently use are located in Malaysia, South Korea, the Philippines, Taiwan, Thailand, and China. In addition, we own a test facility in Malaysia. The risk of an earthquake or tsunami in these Pacific Rim locations is significant. The occurrence of an earthquake, drought, flood, fire, or other natural disaster near any of these locations could cause a significant reduction of end-customer demand and/or availability of materials, a disruption of the global supply chain, an increase in the cost of products that we purchase, and otherwise interfere with our ability to conduct business. In addition, public health issues, acts of terrorism, armed conflicts or other catastrophic events could significantly delay the production or shipment of our products. Although we maintain insurance for some of the damage that may be caused by natural disasters, our insurance coverage may not be sufficient to cover all of our potential losses and would not cover us for lost business. As a result, a natural disaster in one or more of these regions could have a material adverse effect on our financial condition and results of operations.

Costs related to product defects and errata may harm our results of operations and business.

Costs associated with unexpected product defects and errata, or deviations from published specifications, due to, for example, unanticipated problems in our design and manufacturing processes, could include:

• writing off the value of inventory of such products;

• disposing of products that cannot be fixed;

• recalling such products that have been shipped to customers;

• providing product replacements for, or modifications to, such products; and

• defending against litigation related to such products.

These costs could be substantial and may therefore increase our expenses and lower our gross margin. In addition, our reputation with our customers or users of our products could be damaged as a result of such product defects and errata, and the demand for our products could be reduced. The announcement of product defects and/or errata could cause customers to purchase products from our competitors as a result of anticipated shortages of our components or for other reasons. These factors could harm our financial results and the prospects for our business.

Intellectual property claims against and/or on behalf of us could adversely affect our business and operations.

The semiconductor industry is characterized by vigorous protection and pursuit of intellectual property rights, which has resulted in significant and often protracted and expensive litigation. We have been involved with patent litigation and asserted intellectual property claims in the past, both as a plaintiff and a defendant, some of which have adversely affected our operating results. Although we have obtained patent licenses from certain semiconductor manufacturers, we do not have licenses from a number of semiconductor manufacturers that have broad patent portfolios. Claims alleging infringement of intellectual property rights have been asserted against us in the past and could be asserted against us in the future.

As a result of these claims, we may have to discontinue the use of certain processes, license certain technologies, cease the manufacture, use, and sale of infringing products, incur significant litigation costs and damages, indemnify customers against certain claims made against them, and develop non-infringing technology. We might not be able to obtain such licenses on acceptable terms or develop non-infringing technology. Further, the failure to renew or renegotiate existing licenses on favorable terms, or the inability to obtain a key license, could materially and adversely affect our business. Future litigation, either as a plaintiff or a defendant, could adversely affect our operating results, as a result of increased expenses, the cost of settled claims, and/or payment of damages.

We may be unable to enforce or protect our intellectual property rights.

We rely on patents, copyrights, trade secrets, mask rights, and other intellectual property rights as well as confidentiality and licensing agreements to protect our intellectual property interests. Our ability to enforce these rights is subject to general litigation risks, as well as uncertainty as to the enforceability of these rights in various countries. Should we seek to enforce our intellectual property rights, we could be subject to claims that our intellectual property rights are invalid or otherwise not enforceable. Our assertion of our intellectual property rights may result in the other party seeking to assert claims against us, which could be disruptive to and/or harm our business. Our inability to enforce our intellectual property rights under any of these circumstances may harm our competitive position and business.

We rely on access to third-party intellectual property, which may not be available to us on commercially reasonable terms or at all.

Some of our products include third-party intellectual property and/or implement industry standards, which may require licenses from third parties. Based on past experience and industry practice, we believe such licenses generally can be obtained on commercially reasonable terms. However, there is no assurance that the necessary licenses can be obtained on acceptable terms

46

or at all. Failure to obtain the right to use third-party intellectual property, or to use such intellectual property on commercially reasonable terms, could preclude us from selling certain products or otherwise have a material adverse impact on our financial condition and operating results.

Our product manufacturing operations are complex and subject to interruption.

From time to time, we have experienced production difficulties, including lower manufacturing yields or products that do not meet our or our customers' specifications, which has resulted in delivery delays, quality problems and lost revenue opportunities. While delivery delays have been infrequent and generally short in duration, we could experience manufacturing problems, capacity constraints and/or product delivery delays in the future as a result of, among other things, the complexity of our manufacturing processes, changes to our process technologies (including transfers to other facilities and die size reduction efforts), and difficulties in ramping production. In addition, any significant quality problems could damage our reputation with our customers and could take focus away from the development of new and enhanced products. These could have a significant negative impact on our financial results.

We are dependent upon electric power and water provided by public utilities where we operate our manufacturing facility. We maintain limited backup generating capability, but the amount of electric power that we can generate on our own is insufficient to fully operate this facility, and prolonged power interruptions and restrictions on our access to water could have a significant adverse impact on our business.

Tax benefits we receive may be terminated or reduced in the future, which would increase our costs.

As a result of our international manufacturing operations, a significant portion of our worldwide profits are in jurisdictions outside the United States, primarily Malaysia, which has granted the Company significant reductions in tax rates. These lower tax rates allow us to record a relatively low tax expense on a worldwide basis. If U.S. corporate income tax laws were to change regarding deferral of U.S. income tax on foreign earnings or other matters impacting our operating structure, this would have a significant impact to our financial results.

We were granted a tax incentive in Malaysia during fiscal 2009. The tax incentive was contingent upon us continuing to meet specified investment criteria in fixed assets, and to operate as an APAC regional headquarters center. In the first quarter of fiscal 2012, we entered into an agreement with the Malaysia Industrial Development Board (MIDA) who agreed to cancel the previously granted tax incentive and entered into a new tax incentive. The updated tax incentive provides for a full tax exemption on statutory income for a period of 10 years commencing April 4, 2011. We are required to meet several conditions as to financial targets, investment, headcount and activities in Malaysia to retain this status. Our inability to renew this tax incentive when it expires or meet certain conditions of the agreement with MIDA may adversely impact our effective tax rate.

Our financial results may be adversely affected by higher than expected tax rates or exposure to additional tax liabilities. Tax audits may have a material adverse effect on our profitability.

As a global company, our effective tax rate is highly dependent upon the geographic composition of worldwide earnings and tax regulations governing each region in which we operate. We are subject to income taxes in the United States and various foreign jurisdictions, and significant judgment is required to determine worldwide tax liabilities. The United States and other countries where we do business have been considering changes in relevant tax laws applicable to multinational corporations such as ours. These potential changes could adversely affect our effective tax rate or result in higher cash tax liabilities. In addition, our effective tax rate could be adversely affected by changes in the mix of earnings between countries with differing statutory tax rates, by changes in the valuation of deferred tax assets, or by material audit assessments, which could affect our profitability. In particular, the carrying value of deferred tax assets, which are predominantly in the United States, is dependent upon our ability to generate future taxable income in the United States. In addition, the amount of income taxes we pay is subject to ongoing audits in various jurisdictions, and a material assessment by a governing tax authority such as the Internal Revenue Service in the United States could have a material effect on our profitability.

Also, we have not made a provision for U.S. income tax on the portion of our undistributed earnings of our non-US subsidiaries that is considered permanently reinvested outside the U.S. If in the future we repatriate any of these foreign earnings, we might incur incremental U.S. income tax, which could affect our results of operations.

The costs associated with legal proceedings can be substantial, specific costs are unpredictable and not completely within our control, and unexpected increases in litigation costs could adversely affect our operating results.

We have been, and continue to be, involved in various legal proceedings, such as those described below in Part I, Item 3 "Legal Proceedings." We may face legal claims or regulatory matters involving stockholder, consumer, competition and other issues on a global basis. The costs associated with legal proceedings are typically high, relatively unpredictable, and are not completely within our control. The costs may be materially more than expected, which could adversely affect our operating results. Moreover, we may become involved in unexpected litigation with additional litigants at any time, which would increase our aggregate litigation

47

costs, and could adversely affect our operating results. We are not able to predict the outcome of any legal action, and an adverse decision in any legal action could significantly harm our business and financial performance.

If the credit market conditions deteriorate, it could have a material adverse impact on our investment portfolio.

Although we manage our investment portfolio by purchasing only highly-rated securities and diversifying our investments across various sectors, investment types, and underlying issuers, recent volatility in the short-term financial markets has been high. We have no securities in asset-backed commercial paper and hold no auction rated or mortgage-backed securities. However, it is uncertain as to the full extent of the current credit and liquidity crisis and with possible further deterioration, particularly within one or several of the large financial institutions, the value of our investments could be negatively impacted.

Our results of operations could vary as a result of the methods, estimates, and judgments we use in applying our accounting policies.

The methods, estimates, and judgments we use in applying our accounting policies have a significant impact on our results of operations. Such methods, estimates, and judgments are, by their nature, subject to substantial risks, uncertainties and assumptions, and factors may arise over time that lead us to change our methods, estimates, and judgments. Changes in those methods, estimates, and judgments could significantly affect our results of operations. In particular, the calculation of stock-based compensation expense under the authoritative guidance requires us to use valuation methodologies that were not developed for use in valuing employee stock options and make a number of assumptions, estimates, and conclusions regarding matters such as expected forfeitures, expected volatility of our share price and the exercise behavior of our employees. Changes in these variables could affect our stock-based compensation expense and have a significant and potentially adverse effect on our gross margins, research and development expense and selling, general and administrative expense.

International operations add increased volatility to our operating results.

A substantial percentage of our total revenues are derived from international sales, as summarized below:

(percentage of total revenues)	First Nine Months of Fiscal 2016		Fiscal 2015
APAC	75	%	70	%
Americas	11	%	12	%
Japan	5	%	7	%
Europe	9	%	11	%
Total	100	%	100	%

In addition, our test facility in Malaysia, our design centers in Canada and China, and our foreign sales offices incur payroll, facility, and other expenses in local currencies. Accordingly, movements in foreign currency exchange rates can impact our revenues and costs of goods sold, as well as both pricing and demand for our products.

Our non-U.S. offshore sites, manufacturing subcontractors and export sales are also subject to risks associated with foreign operations, including:

• political instability and acts of war or terrorism, which could disrupt our manufacturing and logistical activities;

• regulations regarding use of local employees and suppliers;

• exposure to foreign employment practices and labor laws;

• currency controls and fluctuations, devaluation of foreign currencies, hard currency shortages and exchange rate fluctuations;

• changes in local economic conditions;

• governmental regulation of taxation of our earnings and those of our personnel; and

• changes in tax laws, import and export controls, tariffs and freight rates.

Our international locations are subject to local labor laws, which are often significantly different from U.S. labor laws and which may under certain conditions result in large separation costs upon termination.

Contract pricing for raw materials and equipment used in the fabrication and assembly processes, as well as for foundry and subcontract assembly services, may also be affected by currency controls, exchange rate fluctuations and currency devaluations. We sometimes hedge currency risk for currencies that are highly liquid and freely quoted, but may not enter into hedge contracts for currencies with limited trading volume. In addition, as much of our revenues are generated outside the United States, a significant portion of our cash and investment portfolio accumulates in the foreign countries in which we operate. On January 3, 2016, we had cash, cash equivalents and investments of approximately $245.5 million invested overseas in accounts belonging to our foreign subsidiaries. While these amounts are primarily invested in U.S. dollars, a portion is held in foreign currencies, and all offshore

48

balances are exposed to local political, banking, currency control and other risks. In addition, these amounts may be subject to tax and other transfer restrictions.

We rely upon certain critical information systems for the operation of our business.

We maintain and rely upon certain critical information systems for the effective operation of our business. These information systems include telecommunications, the Internet, our corporate intranet, various computer hardware and software applications, network communications, and e-mail. These information systems are subject to attacks, failures, and access denials from a number of potential sources including viruses, destructive or inadequate code, power failures, and physical damage to computers, communication lines and networking equipment. To the extent that these information systems are under our control, we have implemented security procedures, such as virus protection software and emergency recovery processes, to address the outlined risks. While we believe that our information systems are appropriately controlled and that we have processes in place to adequately manage these risks, security procedures for information systems cannot be guaranteed to be failsafe and our inability to use or access these information systems at critical points in time could unfavorably impact the timely and efficient operation of our business.

We are exposed to potential impairment charges on certain assets.

Over the past several years, we have made several acquisitions. As a result of these acquisitions, we had $305.7 million of goodwill and $137.5 million of intangible assets on our Condensed Consolidated Balance Sheet as of January 3, 2016. In determining fair value, we consider various factors, including our market capitalization, forecasted revenue and costs, risk-adjusted discount rates, future economic and market conditions, determination of appropriate market comparables and expected periods over which our assets will be utilized and other variables. If our assumptions regarding forecasted cash flow, revenue and margin growth rates of certain long-lived asset groups and reporting units are not achieved, an impairment review may be triggered for the remaining balance of goodwill and long-lived assets prior to the next annual review in the fourth quarter of fiscal 2016, which could result in material charges that could impact our operating results and financial position.

Our reported financial results may be adversely affected by new accounting pronouncements or changes in existing accounting standards and practices.

We prepare our financial statements in conformity with accounting principles generally accepted in the United States.  These accounting principles are subject to interpretation by the Financial Accounting Standards Board (FASB), SEC and various organizations formed to interpret and create appropriate accounting standards and practices. New accounting pronouncements and varying interpretations of accounting standards and practices have occurred and may occur in the future. New accounting pronouncements or a change in the interpretation of existing accounting standards or practices may have a significant effect on our reported financial results and may even affect our reporting of transactions completed before the change is announced or effective.

Our common stock may experience substantial price volatility.

Our stock price has experienced volatility in the past, and volatility in the price of our common stock may occur in the future, particularly as a result of fluctuations in global economic conditions and quarter-to-quarter variations in our actual or anticipated financial results, or the financial results of other semiconductor companies or our customers. Stock price volatility may also result from product announcements by us or our competitors, or from changes in perceptions about the various types of products we manufacture and sell. In addition, our stock price may fluctuate due to price and volume fluctuations in the stock market, especially in the technology sector, and as a result of other considerations or events described in this section.

We depend on the ability of our personnel, raw materials, equipment and products to move reasonably unimpeded around the world.

Any political, military, world health or other issue which hinders the worldwide movement of our personnel, raw materials, equipment or products or restricts the import or export of materials could lead to significant business disruptions. Furthermore, any strike, economic failure, or other material disruption on the part of major airlines or other transportation companies could also adversely affect our ability to conduct business. If such disruptions result in cancellations of customer orders or contribute to a general decrease in economic activity or corporate spending on information technology, or directly affect our marketing, manufacturing, financial and logistics functions, our results of operations and financial condition could be materially and adversely affected.

We invest in companies for strategic reasons and may not realize a return on our investments.

We make investments in companies around the world to further our strategic objectives and support our key business initiatives. Such investments include equity instruments of private companies, and many of these instruments are non-marketable at the time of our initial investment. These companies range from early-stage companies that are often still defining their strategic direction to more mature companies with established revenue streams and business models. The success of these companies is dependent on product development, market acceptance, operational efficiency, and other key business factors as well as their ability to secure

49

additional funding, obtain favorable investment terms for future financings, or participate in liquidity events such as public offerings, mergers, and private sales. If any of these private companies fail, we could lose all or part of our investment in that company. If we determine that other-than-temporary decline in the fair value exists for an equity investment in a private company in which we have invested, we write down the investment to its fair value and recognize the related write-down as an investment loss.

When the strategic objectives of an investment have been achieved, or if the investment or business diverges from our strategic objectives, we may decide to dispose of the investment. We may incur losses on the disposal of our non-marketable investments.

We are subject to a variety of environmental and other regulations related to hazardous materials used in our manufacturing processes.

The manufacturing and testing of our products require the use of hazardous materials that are subject to a broad array of environmental, health and safety laws and regulations. Any failure by us to adequately control the use or discharge of hazardous materials under present or future regulations could subject us to substantial costs or liabilities or cause our manufacturing operations to be suspended.

Existing and future environmental, health and safety laws and regulations could also require us to acquire pollution abatement or remediation equipment, modify our product designs, or incur other expenses associated with such laws and regulations. Many new materials that we are evaluating for use in our operations may be subject to regulation under existing or future environmental laws and regulations that may restrict our use of one or more of such materials in our manufacturing, and test processes, or products. Any of these restrictions could harm our business and results of operations by increasing our expenses or requiring us to alter our manufacturing and test processes.

Our operations could be affected by the complex laws, rules and regulations to which our business is subject.

We are subject to complex laws, rules and regulations affecting our domestic and international operations relating to, for example, environmental, safety and health; exports and imports; bribery and corruption; tax; data privacy; labor and employment; competition; and intellectual property ownership and infringement. Compliance with these laws, rules and regulations may be onerous and expensive, and if we fail to comply or if we become subject to enforcement activity, our ability to manufacture our products and operate our business could be restricted and we could be subject to fines, penalties or other legal liability. Furthermore, should these laws, rules and regulations be amended or expanded, or new ones enacted, we could incur materially greater compliance costs or restrictions on our ability to manufacture our products and operate our business.

In October 2015, the European Court of Justice invalidated the year 2000 “Safe Harbor” agreement between the European Union and the United States.  Before this ruling, companies that complied with the Safe Harbor agreement were deemed to provide an adequate level of protection for European Union citizens’ personally identifiable information that was transferred to, and used in, the United States in the ordinary course of business.  Since 2000, we have relied on the Safe Harbor agreement to ensure compliance with data privacy laws in Europe.  In light of the October ruling invalidating the Safe Harbor agreement, we may incur fines, penalties, legal liability and/or additional material costs as we move forward to put in place policies, procedures and practices that ensure compliance with existing and evolving data privacy laws and requirements of the European Union and its member states.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information with respect to repurchases of our common stock during the third quarter of fiscal 2016:

Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
September 28, 2015 - November 1, 2015	553,439	$	21.29	553,439	$	519,090,264
November 2, 2015 - November 29, 2015	10,104,632	$	25.28	10,104,632	$	263,691,751
November 30, 2015 - January 3, 2016	—	$	—	—	$	263,691,751
Total	10,658,071	$	25.07	10,658,071

In April 2015, our Board of Directors approved a new share repurchase program authorization for $300 million. In October 2015, the Company's Board of Directors approved an increase in the share repurchase authorization by another $300 million. In November 2015, the Company separately entered into an accelerated share repurchase agreement (ASR Agreements) with JPMorgan Chase Bank and Bank of America (the Dealers) to repurchase a total of $225 million of its common stock. As of January 3, 2016, approximately $180 million was repurchased under the ASR Agreements. As of January 3, 2016, approximately $263.7 million was available for future purchases under the share repurchase program. Share repurchases were recorded as treasury stock and resulted in a reduction of stockholders’ equity. The programs are intended to reduce the number of outstanding shares of our common stock to offset dilution from employee equity grants and increase shareholder value.

In January 2016, the ASR Agreements settled resulting in the repurchase of 1.6 million of the Company’s common stock at an average price per share of $28.32.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

 (a) The following exhibits are filed herewith:

Exhibit Number	Exhibit Description
3.1	Restated Certificate of Incorporation, as amended to date. Incorporated by reference to Exhibit 3.1 to Form 10-K filed on May 21, 2012.
3.2	Certificate of Designations specifying the terms of the Series A Junior Participating Preferred Stock of Integrated Device Technology, Inc., as filed with the Secretary of State of the State of Delaware. Incorporated by reference to Exhibit 3.6 to Form 8-A filed on December 23, 1998.
3.3	Amended and Restated Bylaws of the Company, as amended and restated. Incorporated by reference to Exhibit 3.3 to Form 10-Q filed on November 6, 2013.
4.1	Indenture (including form of note), dated as of November 4, 2015, between Integrated Device Technology, Inc., and Wilmington Trust, National Association, as trustee. Incorporated by reference to Exhibit 4.1 to Form 8-K filed on November 4, 2015.
10.1	Share Purchase and Transfer Agreement, dated October 23, 2015, between Global ASIC GmbH, ELBER GmbH, Freistaat Sachsen, Integrated Device Technology Bermuda Ltd. and Integrated Device Technology, Inc. Incorporated by reference to Exhibit 10.1 to Form 10-Q filed on October 29, 2015.
10.2	Letter Agreement, dated October 29, 2015, between JPMorgan Chase Bank, National Association and Integrated Device Technology, Inc., regarding the Base Warrants. Incorporated by reference to Exhibit 10.1 to Form 8-K filed on November 4, 2015.
10.3	Letter Agreement, dated October 29, 2015, between JPMorgan Chase Bank, National Association and Integrated Device Technology, Inc., regarding the Base Call Option Transaction. Incorporated by reference to Exhibit 10.2 to Form 8-K filed on November 4, 2015.
10.4	Letter Agreement, dated November 3, 2015, between JPMorgan Chase Bank, National Association and Integrated Device Technology, Inc., regarding the Additional Warrants. Incorporated by reference to Exhibit 10.3 to Form 8-K filed on November 4, 2015.
10.5	Letter Agreement, dated November 3, 2015, between JPMorgan Chase Bank, National Association and Integrated Device Technology, Inc., regarding the Additional Call Option Transaction. Incorporated by reference to Exhibit 10.4 to Form 8-K filed on November 4, 2015.
10.6	Master Confirmation—Uncollared Accelerated Share Repurchase dated November 2, 2015 between Integrated Device Technology, Inc. and JPMorgan Chase Bank, National Association. Incorporated by reference to Exhibit 10.5 to Form 8-K filed on November 4, 2015.
10.7	Master Confirmation—Uncollared Accelerated Share Repurchase dated November 2, 2015 between Integrated Device Technology, Inc. and Bank of America, N.A. Incorporated by reference to Exhibit 10.6 to Form 8-K filed on November 4, 2015.
31.1	Certification of Chief Executive Officer as required by Rule 13a-14(a) and 15(d)-14(a) of the Securities Exchange Act of 1934, as amended.
31.2	Certification of Chief Financial Officer as required by Rule 13a-14(a) and 15(d)-14(a) of the Securities Exchange Act of 1934, as amended.
32.1*	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

* This certification accompanies this report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

52

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	INTEGRATED DEVICE TECHNOLOGY, INC. Registrant
	By:	/s/ Gregory L. Waters
February 9, 2016		Gregory L. Waters President and Chief Executive Officer
		/s/ Brian C. White
February 9, 2016		Brian C. White Vice President, Chief Financial Officer (Principal Financial and Accounting Officer)

53

EX-3.11

Exhibit 31.1

Certification of Chief Executive Officer

I, Gregory L. Waters, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Integrated Device Technology, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

		By:	/s/ Gregory L. Waters
Date:	February 9, 2016		Gregory L. Waters President and Chief Executive Officer

EX-3.12

Exhibit 31.2

Certification of Chief Financial Officer

I, Brian C. White, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Integrated Device Technology, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

		By:	/s/ Brian C. White
Date:	February 9, 2016		Brian C. White Vice President, Chief Financial Officer (Principal Financial and Accounting Officer)

EX-3.21

Exhibit 32.1

Certification of Chief Executive Officer

I, Gregory L. Waters, of Integrated Device Technology, Inc. (the “Company”), pursuant to the requirement set forth in Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. § 1350, certify to my knowledge that:

(i)           the Quarterly Report on Form 10-Q of the Company for the quarterly period ended January 3, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii)          the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

		By:	/s/ Gregory L. Waters
Date:	February 9, 2016		Gregory L. Waters President and Chief Executive Officer

A signed original of this written statement required by Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. § 1350 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-3.22

Exhibit 32.2

Certification of Chief Financial Officer

I, Brian C. White, of Integrated Device Technology, Inc. (the “Company”), pursuant to the requirement set forth in Rule 13a- 14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. § 1350, certify to my knowledge that:

(i)           the Quarterly Report on Form 10-Q of the Company for the quarterly period ended January 3, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii)          the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

		By:	/s/ Brian C. White
Date:	February 9, 2016		Brian C. White Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

A signed original of this written statement required by Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. § 1350 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

XML

Document And Entity Information - shares	9 Months Ended
	Jan. 03, 2016	Feb. 05, 2016
Document Information [Abstract]
Entity Registrant Name	INTEGRATED DEVICE TECHNOLOGY INC
Entity Central Index Key	0000703361
Current Fiscal Year End Date	--04-03
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		135,373,226
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 03, 2016

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 03, 2016	Mar. 29, 2015
Current assets:
Cash and cash equivalents	$ 152,992	$ 116,945
Short-term investments	199,328	438,115
Accounts receivable, net of allowances of $3,378 and $4,664	65,916	63,618
Inventories	54,785	45,410
Prepayments and other current assets	12,568	16,041
Total current assets	485,589	680,129
Property, plant and equipment, net	73,769	65,508
Goodwill	305,733	135,644
Other intangible assets, net	137,489	5,535
Other assets	29,081	26,843
Total assets	1,031,661	913,659
Current liabilities:
Accounts payable	30,654	28,006
Accrued compensation and related expenses	53,154	43,649
Deferred income on shipments to distributors	8,523	15,694
Deferred tax liabilities	0	1,401
Other accrued liabilities	16,365	17,582
Total current liabilities	108,696	106,332
Deferred tax liabilities	21,106	1,121
Long-term income tax payable	959	347
Convertible notes	269,031	0
Other long-term liabilities	22,093	17,605
Total liabilities	$ 421,885	$ 125,405
Commitments and contingencies
Stockholders' equity:
Preferred stock: $0.001 par value: 10,000 shares authorized; no shares issued	$ 0	$ 0
Common stock: $0.001 par value: 350,000 shares authorized; 136,900 and 148,414 shares outstanding at January 3, 2016 and March 29, 2015, respectively	137	148
Additional paid-in capital	2,567,558	2,510,868
Treasury stock at cost: 114,344 shares at January 3, 2016 and 99,849 shares at March 29, 2015, respectively	(1,444,763)	(1,100,546)
Accumulated deficit	(506,909)	(620,035)
Accumulated other comprehensive loss	(6,247)	(2,181)
Total stockholders' equity	609,776	788,254
Total liabilities and stockholders' equity	$ 1,031,661	$ 913,659

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jan. 03, 2016	Mar. 29, 2015
Statement of Financial Position [Abstract]
Allowance for Receivables	$ 3,378	$ 4,664
Preferred Stock, Par or Stated Value Per Share (usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000	10,000
Preferred stock, shares issued (in shares)	0	0
Common Stock, Par or Stated Value Per Share (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	350,000	350,000
Common stock, shares outstanding (in shares)	136,915	148,414
Treasury stock, at cost (in shares)	114,344	99,849

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 03, 2016	Dec. 28, 2014	Jan. 03, 2016	Dec. 28, 2014
Income Statement [Abstract]
Revenues	$ 177,610	$ 151,160	$ 508,015	$ 414,555
Cost of revenues	69,699	59,796	194,324	167,306
Gross profit	107,911	91,364	313,691	247,249
Operating expenses:
Research and development	38,429	32,825	107,484	95,617
Selling, general and administrative	38,851	27,165	96,221	79,419
Total operating expenses	77,280	59,990	203,705	175,036
Operating income	30,631	31,374	109,986	72,213
Interest income (expense) and other, net	(2,008)	1,558	826	2,825
Income before income taxes from continuing operations	28,623	32,932	110,812	75,038
Income tax provision (benefit)	(3,922)	91	(2,876)	840
Net income from continuing operations	32,545	32,841	113,688	74,198
Discontinued operations:
Gain from divestiture before income taxes	0	0	0	16,840
Loss from discontinued operations before income taxes	0	(14,538)	(547)	(36,438)
Income tax provision (benefit)	0	(55)	15	(43)
Net loss from discontinued operations	0	(14,483)	(562)	(19,555)
Net income	$ 32,545	$ 18,358	$ 113,126	$ 54,643
Basic net income per share - continuing operations (in dollars per share)	$ 0.23	$ 0.22	$ 0.78	$ 0.50
Basic net income (loss) per share - discontinued operations (in dollars per share)	0.00	(0.10)	0.00	(0.13)
Basic net income per share (in dollars per share)	0.23	0.12	0.78	0.37
Diluted net income per share - continuing operations (in dollars per share)	0.22	0.21	0.75	0.48
Diluted net loss per share - discontinued operations (in dollars per share)	0.00	(0.09)	0.00	(0.12)
Diluted net income per share (in dollars per share)	$ 0.22	$ 0.12	$ 0.75	$ 0.36
Weighted average shares:
Basic (shares)	140,411	148,552	145,382	148,844
Diluted (shares)	145,705	153,973	150,614	153,904

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 03, 2016	Dec. 28, 2014	Jan. 03, 2016	Dec. 28, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 32,545	$ 18,358	$ 113,126	$ 54,643
Other comprehensive loss, net of taxes:
Currency translation adjustments, net of tax	(1,040)	(1,562)	(2,044)	(2,817)
Change in net unrealized loss on investments, net of tax	(731)	(576)	(1,409)	(592)
Actuarial loss on post-employment and post-retirement benefit plans, net of tax	(2)	(2)	(613)	(7)
Total other comprehensive loss	(1,773)	(2,140)	(4,066)	(3,416)
Comprehensive income	$ 30,772	$ 16,218	$ 109,060	$ 51,227

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jan. 03, 2016	Dec. 28, 2014
Cash flows from operating activities:
Net income	$ 113,126	$ 54,643
Adjustments:
Depreciation	13,056	14,557
Amortization of intangible assets	5,628	5,572
Amortization of debt issuance cost and debt discount	2,164	0
Impairment of assets held for sale	0	8,471
Gain from divestiture	0	(16,840)
Gain on sale of property, plant and equipment	(325)	0
Stock-based compensation expense, net of amounts capitalized in inventory	25,878	16,562
Deferred tax provision (benefit)	(4,147)	50
Tax benefit from share-based payment arrangements	(115)	0
Changes in assets and liabilities:
Accounts receivable, net	8,319	(7,390)
Inventories	10,446	8,836
Prepayments and other assets	4,532	(854)
Accounts payable	(2,832)	718
Accrued compensation and related expenses	(5,427)	13,606
Deferred income on shipments to distributors	(7,171)	1,238
Income taxes payable and receivable	(70)	(352)
Other accrued liabilities and long-term liabilities	(4,079)	12,282
Net cash provided by operating activities	158,983	111,099
Cash flows from investing activities:
Acquisitions, net of cash acquired	(279,138)	0
Cash in escrow related to acquisitions	2,700	1,026
Proceeds from divestitures	0	15,300
Investment in convertible note	(2,020)	0
Purchases of property, plant and equipment, net	(12,541)	(12,418)
Purchases of intangible assets	(10,800)	0
Purchase of cost-method investment	0	(4,000)
Purchases of short-term investments	(313,246)	(163,292)
Proceeds from sales of short-term investments	466,890	76,848
Proceeds from maturities of short-term investments	80,695	64,298
Net cash used in investing activities	(67,460)	(22,238)
Cash flows from financing activities:
Proceeds from issuance of common stock	16,516	14,822
Prepayments for purchase of treasury stock	(45,000)	0
Proceeds from issuance of senior convertible notes, net of issuance costs	363,445	0
Purchase of convertible note hedge	(94,185)	0
Proceeds from issuance of warrants	56,847	0
Repurchase of common stock	(344,216)	(62,684)
Payment of acquisition related contingent consideration	0	(1,600)
Repayment of loans	(9,195)	0
Excess tax benefit from share-based payment arrangements	115	0
Net cash used in financing activities	(55,673)	(49,462)
Effect of exchange rates on cash and cash equivalents	197	(2,823)
Net increase in cash and cash equivalents	36,047	36,576
Cash and cash equivalents at beginning of period	116,945	91,211
Cash and cash equivalents at end of period	152,992	127,787
Noncash Investing Activity [Abstract]
Conversion of a cost method investment in convertible note to ordinary shares of stock	$ (2,020)	$ 0

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Summary of Significant Accounting Policies

9 Months Ended

Jan. 03, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Nature of Business.  Integrated Device Technology, Inc. (IDT or the Company) designs, develops, manufactures and markets a broad range of integrated circuits for the advanced communications, computing, consumer and automotive industries.

Basis of Presentation.  The Company's fiscal year is the 52 or 53 week period ending on the Sunday closest to March 31. In a 52 week year, each fiscal quarter consists of 13 weeks. In a 53 week year, the additional week is usually added to the third quarter, making such quarter consist of 14 weeks. The first and second quarters of fiscal 2016 and fiscal 2015 were 13 week periods, the third quarter of fiscal 2016 was 14 weeks, and the third quarter of fiscal 2015 was 13 weeks.

On December 7, 2015, the Company completed its acquisition of Zentrum Mikroelektronik Dresden AG (ZMDI), a privately-held company mainly operating in Germany, for a purchase price of Euro-equivalent of $307.0 million. The unaudited condensed consolidated financial statements include the results of operations of ZMDI, commencing on the closing date of the acquisition.

Principles of Consolidation.  The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated.

Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Significant Accounting Policies. For a description of significant accounting policies, see Note 1, Summary of Significant Accounting Policies to the consolidated financial statements included in the Company's annual report on Form 10-K for the fiscal year ended March 29, 2015. There have been no material changes to the Company's significant accounting policies since the filing of the annual report on Form 10-K, with the exception of recently adopted accounting policies listed below.

In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the condensed consolidated financial statements for the interim period.

Accounting for Business Combinations. The Company uses the acquisition method of accounting, which is in accordance with ASC 805, Business Combinations, for business combinations and recognizes assets acquired and liabilities assumed measured at their fair values on the date acquired. This requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While management uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company adjusts the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in the Company's Consolidated Statements of Operations.

Accounting for business combinations requires management to make significant estimates and assumptions, especially at the acquisition date, including estimates for intangible assets, contractual obligations assumed, restructuring liabilities, pre-acquisition contingencies and contingent consideration, where applicable. Although the Company believes the assumptions and estimates made in the past have been reasonable and appropriate, they are based, in part, on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Critical estimates in valuing certain of the intangible assets that the Company have acquired include, but are not limited to future expected cash flows from product sales, customer contracts and acquired technologies, and discount rates. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates or actual results.

Trade Receivables Factoring Facility.The Company assumed an agreement with a financial institution to sell certain of its trade receivables from customers with limited, non-credit-related recourse provisions as part of the acquisition during the quarter ended January 3, 2016. Total receivables sold under the factoring facility during the quarter ended January 3, 2016 was $3.1 million. Total collections from the sale of receivables and from deferred purchase payments during the quarter ended January 3, 2016 were $4.2 million and $0.4 million, respectively. Under the terms of the factoring agreement, the total available amount of the factoring facility as of January 3, 2016 was $2.9 million. The sales of accounts receivable in accordance with the factoring agreement are reflected as a reduction of Accounts Receivable, net in the Condensed Consolidated Balance Sheets as they meet the applicable criteria of ASC 860, Transfers and Servicing. Collections of deferred purchase payments are included in the change in accounts receivable under the operating activities section of the Condensed Consolidated Statements of Cash Flows. The amount due from the factoring institution was $0.5 million at January 3, 2016, and is shown in Prepayments and Other Current Assets in the Condensed Consolidated Balance Sheets. The Company pays factoring fees associated with the sale of receivables based on the dollar value of the receivables sold. Such fees are not material for the quarter ended January 3, 2016.

Recent Accounting Pronouncements

Accounting Pronouncements Adopted in Fiscal 2016

In November 2015, the Financial Accounting Standards Board (FASB) issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, amending the current accounting guidance and requiring an entity to classify all deferred tax assets and liabilities as non-current in a classified statement of financial position. The standard is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted and the standard may be adopted either prospectively or retrospectively. The Company has early adopted the standard prospectively in the quarter ended January 3, 2016. The adoption resulted in a reclassification from current deferred tax liabilities of $1.4 million, net of deferred non-current tax assets of $0.7 million, to non-current deferred tax liabilities.

In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, that requires an entity to present debt issuance costs on the balance sheet as a direct deduction from the related debt liability as opposed to an asset. Amortization of the costs will continue to be reported as interest expense. The update is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued, and the new guidance would be applied retrospectively to all prior periods presented. The Company has early adopted the standard in the quarter ended January 3, 2016. There was no impact to prior periods.

Accounting Pronouncements Not Yet Effective for Fiscal 2016

In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The guidance simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. The guidance eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, and require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The guidance also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements is required under this guidance. The guidance further clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The guidance is applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and is effective for the Company in its first quarter of fiscal 2018. Early adoption is permitted only if certain criteria is met. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements and related disclosures.

In September 2015, the FASB issued ASU No. 2015-16, Simplifying Accounting for Measurement-period Adjustment, which provides that an acquirer should recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Under this guidance, the acquirer is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. It is also required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. Early adoption is permitted. The guidance is applied prospectively and is effective for the Company in its first quarter of fiscal years 2017.

In July 2015, the FASB issued guidance applying to inventory measured using any other method other than last-in, last-out method. Under this guidance, inventory is measured at the lower of cost and net realizable value. The net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is applied prospectively and is effective for the Company in its first quarter of fiscal 2018. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial statements and related disclosures.

On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. On July 9, 2015, the FASB decided to delay the effective date by one year to December 15, 2017 for annual periods beginning after that date. The FASB also decided to allow early adoption of the standard, but not before the original effective date of December 15, 2016. The Company is currently evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

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Net Income Per Share

9 Months Ended

Jan. 03, 2016

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common and dilutive potential common shares outstanding during the period. Potential common shares include employee stock options and restricted stock units. For purposes of computing diluted net income per share, weighted average potential common shares do not include potential common shares that are anti-dilutive under the treasury stock method.

The following table sets forth the computation of basic and diluted net income per share from continuing operations: 

	Three Months Ended				Nine Months Ended
(in thousands, except per share amounts)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
Numerator (basic and diluted):
Net income from continuing operations	$	32,545	$	32,841	$	113,688	$	74,198
Denominator:
Weighted average common shares outstanding, basic	140,411		148,552		145,382		148,844
Dilutive effect of employee stock options and restricted stock units	5,294		5,421		5,232		5,060
Weighted average common shares outstanding, diluted	145,705		153,973		150,614		153,904
Basic net income per share from continuing operations	$	0.23	$	0.22	$	0.78	$	0.50
Diluted net income per share from continuing operations	$	0.22	$	0.21	$	0.75	$	0.48

Potential dilutive common shares of 0.4 million and 22 thousand pertaining to employee stock options and restricted stock units were excluded from the calculation of diluted earnings per share for the three months ended January 3, 2016 and December 28, 2014, respectively, because the effect would have been anti-dilutive. Potential dilutive common shares of 0.4 million and 0.3 million pertaining to employee stock options and restricted stock units were excluded from the calculation of diluted earnings per share for the nine months ended January 3, 2016 and December 28, 2014, respectively, because the effect would have been anti-dilutive.

The denominator for diluted net income per share for three months and nine months ended January 3, 2016 does not include any effect from the 0.875% Convertible Senior Notes due 2022, or the Convertible Notes. In accordance with ASC 260, Earnings per Share, the Convertible Notes will not impact the denominator for diluted net income per share unless the average price of our common stock, as calculated under the terms of the Notes, exceeds the conversion price of $33.45 per share. Likewise, the denominator for diluted net income per share will not include any effect from the warrants unless the average price of our common stock, as calculated under the terms of the warrants, exceeds $48.66 per share.

The denominator for diluted net income per share for three months and nine months ended January 3, 2016 also does not include any effect from the convertible note hedge transaction, or the Note Hedges. In future periods, the denominator for diluted net income per share will exclude any effect of the Note Hedges, as their effect would be anti-dilutive. In the event an actual conversion of any or all of the Convertible Notes occurs, the shares that will be delivered to us under the Note Hedges are designed to neutralize the dilutive effect of the shares that the Company will issue under the Convertible Notes. Refer to Note 16 for further discussion regarding the Convertible Notes.

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Business Combination

9 Months Ended

Jan. 03, 2016

Business Combinations [Abstract]

Business Combination

Business Combination

Acquisition of Zentrum Mikroelektronik Dresden AG

On December 7, 2015, the Company completed its purchase all of the outstanding no-par-value shares of Zentrum Mikroelektronik Dresden AG (ZMDI), a privately-held company mainly operating in Germany, in an all-cash transaction for approximately $307.0 million. ZMDI is a global supplier of sensing products for mobile, automotive and industrial solutions. The acquisition provides the Company a significant new growth opportunity in the automotive and industrial business.

Total consideration consisted of the following:

(in thousands)
Cash paid to ZMDI shareholders	$	307,030
Less: cash acquired	(27,892		)
Total purchase price, net of cash acquired	$	279,138

The total cash consideration paid includes a Euro-equivalent of $20.0 million which is maintained in an escrow account and will be released to the selling shareholders upon meeting of certain conditions in accordance with the escrow agreement.

The Company allocated the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess purchase price over those fair values was recorded as goodwill. Because the Acquisition was structured as a stock acquisition for income tax purposes, none of the asset step-up or asset recognition required by purchase accounting, including the goodwill described below, is deductible for tax purposes.

The fair value of cash, accounts receivable, other current assets, accounts payable, and other accrued liabilities were generally determined using historical carrying values given the short-term nature of these assets and liabilities. The fair values for acquired inventory, property, plant and equipment and intangible assets were determined with the input from third-party valuation specialist. The fair values of certain other liabilities were determined internally using historical carrying values and estimates made by management. As additional information becomes available, the Company  may revise the preliminary purchase price allocation during the remainder of the measurement period (which will not exceed 12 months from the acquisition date). Any such revisions or changes may be material.

The financial results of the ZMDI have been included in the Company’s Condensed Consolidated Statements of Operations from December 7, 2015, the closing date of the acquisition. The Company's results of continuing operations for the quarter ended January 3, 2016 include $3.4 million of net revenue attributable to ZMDI. The Company incurred approximately $2.1 million of acquisition related costs for the three months ended January 3, 2016 and these costs were included in Selling, General and Administrative Expenses in the Condensed Consolidated Statements of Operations. Goodwill is primarily attributable to the assembled workforce of ZMDI, anticipated synergies and economies of scale expected from the operations of the combined company.

The Company's preliminary allocation of the purchase price as of December 7, 2015 is as follows:

(in thousands)	Estimated Fair Value
Cash	$	27,892
Accounts receivable	10,618
Inventories	19,892
Other current assets	1,551
Property, plant and equipment	9,287
Other non-current assets	2,003
Intangible assets	126,200
Goodwill	170,089
Accounts payable	(5,633		)
Accrued and other current liabilities	(19,141		)
Loans payable	(9,437		)
Deferred tax liability	(23,467		)
Other long term liabilities	(2,824		)
Total purchase price	$	307,030

A summary of the preliminary allocation of intangible assets is as follows:

(in thousands)	Estimated Fair Value		Estimated Useful Life (in years)
Developed technology	$	75,600	7
Customer relationships	44,000		7
Backlog	5,800		1
Trademarks	800		1
Total	$	126,200

Identifiable Tangible Assets and Liabilities:

Assets and liabilities were reviewed and adjusted, if required, to their estimated fair value.

Inventory:

The value allocated to inventories reflects the estimated fair value of the acquired inventory based on the expected sales price of the inventory, less reasonable selling margin.

Bank Loans:

The Company assumed liabilities of ZMDI which include outstanding bank loans of approximately $9.4 million as of December 7, 2015. The Company subsequently paid $9.2 million of the assumed amount which reduced the outstanding balance to $0.2 million as of January 3, 2016.

Intangible Assets:

The allocation of the purchase price to tangible and identified intangible assets acquired was based on our best estimate of the fair value of such assets as of the acquisition date. The fair value of acquired tangible and identified intangible assets was determined based on inputs that are unobservable and significant to the overall fair value measurement.

Developed technology consists of ZMDI's products that have reached technological feasibility. The Company valued the developed technology utilizing a multi-period excess earnings (MPEE) method , which uses the discounted future earnings specifically attributed to this intangible asset that is in excess of returns for other assets that contributed to those earnings. The economic useful life was determined based on the technology cycle related to the products and its expected contribution to forecasted revenue. The Company utilized a discount rate of 13.5% in estimating the fair value of the developed technology.

Customer relationships represent the fair value of future projected revenue that is expected to be derived from sales of products to existing customers of the acquired company. Customer contracts and related relationships value has been estimated utilizing a with-and-without method, which uses projected cash flows with and without the intangible asset in place. Cash flow differentials are then discounted to present value to arrive at an estimate of fair value for the asset. The economic useful life was determined based on the life of the developed technology, assuming that the existing customers will remain with the Company until the developed technology becomes obsolete. The Company utilized a discount rate of 13.5% in estimating the fair value of the customer relationships.

Order backlog represents business under existing contractual obligations as of the acquisition date. The fair value of backlog was determined using the MPEE method under the income approach based on expected operating cash flows from future contractual revenue. The economic useful life was determined based on the expected life of the backlog and the cash flows over the forecast period. The Company utilized a discount rate of 5.4% in estimating the fair value of the order backlog.

Trademark relates to ZMDI’s product brand and its fair value was determined by applying the relief-from-royalty method under the income approach. This valuation method is based on the application of a royalty rate to forecasted revenue under the respective trade name and involves discounting net cash flows resulting from the forecast of avoided royalties over a transition period, giving consideration to the cost of capital estimate as well as the risk and timing of the cash flows associated with this asset relative to the other asset classes. The economic useful life was determined based on the expected life of the trade name and the cash flows anticipated over the forecasted periods. The Company utilized a discount rate of 13.5% in estimating the fair value of the trade name and trademark.

Pro Forma Financial Information (unaudited):

The following unaudited pro forma financial information present combined results of operations for each of the periods presented, as if ZMDI had been acquired as of the beginning of fiscal year 2015. The pro forma financial information include the business combination effect of the amortization charges from acquired intangible assets, the amortization of fair market value inventory write-up and acquisition-related costs. The pro forma data is for informational purposes only and is not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2015 or of the results of future operations of the combined business. Consequently, actual results will differ from the unaudited pro forma information presented below:

	Three Months Ended				Nine Months Ended
(Unaudited in thousands, except per share data)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
Revenues	$	190,408	$	170,425	$	561,646	$	476,862
Net income	$	29,948	$	26,147	$	114,179	$	54,898
Basic net income per share - continuing operations	$	0.21	$	0.18	$	0.79	$	0.37
Diluted net income per share - continuing operations	$	0.21	$	0.17	$	0.76	$	0.36

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Discontinued Operations

9 Months Ended

Jan. 03, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

High-Speed Converter (“HSC”) Business

In fiscal 2014, the Company initiated a project to divest its HSC business and has classified the related assets, as held for sale. The HSC business included the assets of NXP B.V.’s Data Converter Business and Alvand Technologies, Inc., which were acquired in fiscal 2013.

On May 30, 2014, the Company completed the sale of certain assets related to the Alvand portion of the HSC business to a buyer pursuant to an Asset Purchase Agreement. Upon the closing of the transaction, the buyer paid the Company $18.0 million in cash consideration, of which $2.7 million was initially held in an escrow account and was paid to the Company in December 2015. The Company recorded a gain of $16.8 million in discontinued operations related to this divestiture during the first quarter of fiscal 2015. The following table summarizes the components of the gain (in thousands):

	Amount
Cash proceeds from sale (including amounts held in escrow)	$	18,000
Less book value of assets sold and direct costs related to the sale:
Intangible assets	(990		)
Transaction and other costs	(170		)
Gain on divestiture	$	16,840

Following the sale of assets related to the Alvand portion of the HSC business, the business had remaining long-lived assets classified as held for sale amounting to $8.5 million, which consisted of $2.9 million in fixed assets and $5.6 million in intangible assets. The Company evaluated the carrying value of the disposal group and determined that it exceeded its estimated fair value based on estimated selling price less cost to sell. Accordingly, total impairment charge of $8.5 million was recorded as loss from discontinued operations in the Condensed Consolidated Statement of Operations in the first quarter of fiscal 2015.

As of March 29, 2015, all long-lived assets related to the HSC business were fully impaired.

On April 27, 2015, the Company completed the sale of the remaining HSC business to eSilicon, for $1.5 million which will be paid on or before April 27, 2017. In connection with the sale, the Company entered into an Exclusive Intellectual Property License Agreement with eSilicon, whereby the Company provided an exclusive license to eSilicon to develop, manufacture, sell and maintain HSC products. In connection with the sale, the Company and eSilicon also entered into a Transition Services Agreement, whereby the Company will provide certain transition services over a specific period from the effective date of the sale. The transition services do not represent significant continuing involvement of the Company in the HSC business.

As of January 3, 2016, the Company had a receivable of $1.5 million representing uncollected proceeds from the sale that was included under Other Assets on the Condensed Consolidated Balance Sheet. Given the term of the sale, the Company deferred the gain from this divestiture and will recognize it into discontinued operations when collectibility becomes certain. The following table summarizes the components of the deferred gain which was included under Other Long-term Liabilities on the Condensed Consolidated Balance Sheet as of January 3, 2016:

(in thousands)	Amount
Sale price	$	1,500
Less book value of assets sold	(115		)
Deferred gain on divestiture	$	1,385

The HSC business was included in the Company’s Communications reportable segment. For financial statements purposes, the results of operations for the HSC business have been segregated from those of the continuing operations and are presented in the Company's condensed consolidated financial statements as discontinued operations.

As a result of the sale of HSC business in April 2015, there are no results presented for the three months ended January 3, 2016. The results of the HSC business for the three months ended December 28, 2014 and nine months ended January 3, 2016 and December 28, 2014 were as follows (in thousands):

	Three Months Ended			Nine Months Ended
	December 28, 2014			January 3, 2016			December 28, 2014
Revenues	$	701		$	176		$	3,039
Cost of revenues	(441		)	(477		)	(1,459		)
Long-lived assets impairment	—			—			(8,471		)
Restructuring costs (see Note 13)	(11,930		)	—			(18,705		)
Operating expenses	(2,868		)	(246		)	(10,842		)
Gain on divestiture	—			—			16,840
Income tax provision (benefit)	(55		)	15			(43		)
Net loss from discontinued operations	$	(14,483	)	$	(562	)	$	(19,555	)

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Fair Value Measurement

9 Months Ended

Jan. 03, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of January 3, 2016:

	Fair Value at Reporting Date Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Assets
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	$	62,434	$	—		$	—	$	62,434
Money market funds	70,960		—			—		70,960
Asset-backed securities	—		14,501			—		14,501
Corporate bonds	—		108,314			—		108,314
Corporate commercial paper	—		3,483			—		3,483
Bank deposits	—		13,595			—		13,595
Repurchase agreement	—		129			—		129
Municipal bonds	—		900			—		900
Total assets measured at fair value	$	133,394	$	140,922		$	—	$	274,316
Liabilities
Convertible Notes (1)	$	—	$	(284,280	)	$	—	$	(284,280	)

(1) The convertible notes are carried on the Condensed Consolidated Balance Sheets at their original issuance value including accreted interest, net of unamortized debt discount and issuance cost. The Convertible Notes are not marked to fair value at the end of each reporting period. As of January 3, 2016, the fair value of Convertible Notes was determined on the basis of market prices observable for similar instruments and is considered Level 2 in the fair value hierarchy. See Note 16 for additional information on the Convertible Notes.

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 29, 2015:

	Fair Value at Reporting Date Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	$	135,945	$	—	$	—	$	135,945
Money market funds	55,578		—		—		55,578
Asset-backed securities	—		31,830		—		31,830
Corporate bonds	—		245,675		—		245,675
International government bonds	—		1,006		—		1,006
Corporate commercial paper	—		4,999		—		4,999
Bank deposits	—		16,915		—		16,915
Repurchase agreements	—		191		—		191
Municipal bonds	—		6,044		—		6,044
Total assets measured at fair value	$	191,523	$	306,660	$	—	$	498,183

U.S. government treasuries and U.S. government agency securities as of January 3, 2016 and March 29, 2015 do not include any U.S. government guaranteed bank issued paper.

The securities in Level 1 are highly liquid and actively traded in exchange markets or over-the-counter markets. Level 2 fixed income securities are priced using quoted market prices for similar instruments, non-binding market prices that are corroborated by observable market data.

All of the Company’s available-for-sale investments are subject to a periodic impairment review. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. The Company did not record any impairment charges related to its available-for-sale investments in the three and nine months ended January 3, 2016 and December 28, 2014.

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Investments

9 Months Ended

Jan. 03, 2016

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Available-for-Sale Securities

Available-for-sale investments at January 3, 2016 were as follows:

(in thousands)	Cost			Gross Unrealized  Gains		Gross Unrealized  Losses			Estimated Fair  Value
U.S. government treasuries and agencies securities	$	62,583		$	—	$	(149	)	$	62,434
Money market funds	70,960			—		—			70,960
Asset-backed securities	14,533			—		(32		)	14,501
Corporate bonds	108,682			18		(386		)	108,314
International government bonds	—			—		—			—
Corporate commercial paper	3,483			—		—			3,483
Bank deposits	13,595			—		—			13,595
Repurchase agreements	129			—		—			129
Municipal bonds	900			—		—			900
Total available-for-sale investments	274,865			18		(567		)	274,316
Less amounts classified as cash equivalents	(74,996		)	—		—			(74,996		)
Short-term investments	$	199,869		$	18	$	(567	)	$	199,320

Available-for-sale investments at March 29, 2015 were as follows:

(in thousands)	Cost			Gross Unrealized  Gains		Gross Unrealized  Losses			Estimated Fair  Value
U.S. government treasuries and agencies securities	$	135,570		$	398	$	(23	)	$	135,945
Money market funds	55,578			—		—			55,578
Asset-backed securities	31,830			9		(9		)	31,830
Corporate bonds	245,229			567		(121		)	245,675
International government bonds	1,010			—		(4		)	1,006
Corporate commercial paper	4,999			—		—			4,999
Bank deposits	16,915			—		—			16,915
Repurchase agreements	191			—		—			191
Municipal bonds	6,001			45		(2		)	6,044
Total available-for-sale investments	497,323			1,019		(159		)	498,183
Less amounts classified as cash equivalents	(60,068		)	—		—			(60,068		)
Short-term investments	$	437,255		$	1,019	$	(159	)	$	438,115

The cost and estimated fair value of available-for-sale securities at January 3, 2016, by contractual maturity, were as follows:

(in thousands)	Amortized Cost		Estimated Fair Value
Due in 1 year or less	$	103,575	$	103,569
Due in 1-2 years	64,896		64,740
Due in 2-5 years	107,386		106,007
Total investments in available-for-sale securities	$	275,857	$	274,316

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses as of January 3, 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	Less Than 12 Months					12 Months or Greater				Total
(in thousands)	Fair Value		Unrealized  Loss			Fair  Value		Unrealized  Loss		Fair Value		Unrealized  Loss
Corporate bonds	$	90,142	$	(386	)	$	—	$	—	$	90,142	$	(386	)
Asset-backed securities	14,501		(32		)	—		—		14,501		(32		)
U.S. government treasuries and agencies securities	56,969		(149		)	—		—		56,969		(149		)
Municipal bonds	900		—			—		—		900		—
International government bonds	—		—			—		—		—		—
Total	$	162,512	$	(567	)	$	—	$	—	$	162,512	$	(567	)

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, as of March 29, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	Less Than 12 Months					12 Months or Greater				Total
(in thousands)	Fair  Value		Unrealized  Loss			Fair  Value		Unrealized  Loss		Fair  Value		Unrealized  Loss
Corporate bonds	$	67,367	$	(121	)	$	—	$	—	$	67,367	$	(121	)
Asset-backed securities	17,736		(9		)	—		—		17,736		(9		)
U.S. government treasuries and agencies securities	18,478		(23		)	—		—		18,478		(23		)
Municipal bonds	1,001		(2		)	—		—		1,001		(2		)
International government bonds	1,006		(4		)	—		—		1,006		(4		)
Total	$	105,588	$	(159	)	$	—	$	—	$	105,588	$	(159	)

Currently, a significant portion of the Company’s available-for-sale investments that it holds are high grade instruments.  As of January 3, 2016, the unrealized losses on the Company’s available-for-sale investments represented an insignificant amount in relation to its total available-for-sale portfolio. Substantially all of the Company’s unrealized losses on its available-for-sale marketable debt instruments can be attributed to fair value fluctuations in an unstable credit environment that resulted in a decrease in the market liquidity for debt instruments.  Because the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company did not consider these investments to be other-than-temporarily impaired at January 3, 2016 and March 29, 2015.

Non-marketable Equity Securities

As of January 3, 2016 and March 29, 2015, the Company holds capital stock of privately-held companies with total amount of $6.0 million and $4.0 million, respectively. During the three months ended January 3, 2016, the Company purchased $2.0 million of convertible notes in a privately-held company which were automatically converted into ordinary shares of stock in accordance with the terms of the instrument at December 31, 2015. This and other investment in stocks (included under Other Assets on the Condensed Consolidated Balance Sheets) are accounted for ascost-method investment, as the Company owns less than 20% of the voting securities and does not have the ability to exercise significant influence over operating and financial policies of each entity. The Company did not record any impairment charge for these investments during the three and nine months ended January 3, 2016.

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Stock-Based Employee Compensation

9 Months Ended

Jan. 03, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Employee Compensation

Stock-Based Employee Compensation

Equity Incentive Programs

The Company currently issues awards under two equity-based plans in order to provide additional incentive and retention to directors and employees who are considered to be essential to the long-range success of the Company. These plans are further described below.

2004 Equity Plan (2004 Plan)

Options granted by the Company under the 2004 Plan generally expire seven years from the date of grant and generally vest over a four-year period from the date of grant, with one-quarter of the shares of common stock vesting on the 1 year anniversary of the grant date and the remaining shares vesting monthly for the 36 months thereafter. The exercise price of the options granted by the Company under the 2004 Plan shall not be less than 100% of the fair market value for a common share subject to such option on the date the option is granted. Full value awards made under the 2004 Plan shall become vested over a period of not less than 3 years (or, if vesting is performance-based, over a period of not less than one year) following the date such award is made; provided, however, that full value awards that result in the issuance of an aggregate of up to 5% of common stock available under the 2004 Plan may be granted to any one or more participants without respect to such minimum vesting provisions. As of January 3, 2016, there were 8.2 million shares available for future grant under the 2004 Plan.

Compensation Expense

The following table summarizes stock-based compensation expense by line items appearing in the Company’s Condensed Consolidated Statement of Operations:

	Three Months Ended				Nine Months Ended
(in thousands)	January 3, 2016		December 28, 2014		January 3, 2016			December 28, 2014
Cost of revenue	$	666	$	592	$	1,993		$	1,347
Research and development	4,433		2,562		11,608			7,547
Selling, general and administrative	4,363		2,724		12,309			7,875
Discontinued operations	—		20		(32		)	(207		)
Total stock-based compensation expense	$	9,462	$	5,898	$	25,878		$	16,562

The amount of stock-based compensation expense that was capitalized during the periods presented above was not material.

Stock Options

The following is a summary of the Company's stock option activity and related weighted average exercise prices for each category:

	Nine Months Ended January 3, 2016
(shares in thousands)	Shares		Price
Beginning stock options outstanding	3,680		$	7.71
Granted	428		21.96
Exercised (1)	(1,222	)	6.82
Canceled	(40	)	6.94
Ending stock options outstanding	2,846		$	10.25
Ending stock options exercisable	1,733		$	7.50

(1) Upon exercise, the Company issues new shares of common stock.

As of January 3, 2016, the unrecognized compensation cost related to nonvested stock options, net of estimated forfeitures, was $2.1 million and will be recognized over a weighted-average period of 1.13 years.

As of January 3, 2016, stock options vested and expected to vest totaled approximately 2.7 million with a weighted-average exercise price of $9.82 and a weighted-average remaining contractual life of 3.57 years. The aggregate intrinsic value was approximately $44.0 million.

As of January 3, 2016, fully vested stock options totaled approximately 1.7 million with a weighted-average exercise price of $7.50 and a weighted-average remaining contractual life of 2.87 years. The aggregate intrinsic value was approximately $32.7 million.

Restricted Stock Units

Restricted stock units granted by the Company under the 2004 Plan generally vest over at least a three year period from the grant date with one-third of restricted stock units vesting on each one-year anniversary. As of January 3, 2016, 3.7 million restricted stock unit awards were outstanding under the 2004 Plan.

The following table summarizes the Company's restricted stock unit activity and related weighted-average exercise prices for each category for the nine months ended January 3, 2016:

	Nine Months Ended January 3, 2016
(shares in thousands)	Shares		Weighted-average grant date fair value per share
Beginning RSUs outstanding	3,457		$	10.58
Granted	1,640		21.95
Released	(1,091	)	9.76
Forfeited	(311	)	12.59
Ending RSUs outstanding	3,695		$	15.70

As of January 3, 2016, restricted stock units expected to vest totaled approximately 3.1 million with a weighted-average remaining contract life of 1.36 years. The aggregate intrinsic value was approximately $81.1 million.

As of January 3, 2016, the unrecognized compensation cost related to restricted stock units granted under the Company’s equity incentive plan was approximately $25.9 million, net of estimated forfeitures, and is expected to be recognized over a weighted-average period of 1.49 years.

Performance-Based Stock Units

Under the 2004 Plan, the Company has granted performance-based stock units which vest and convert into shares of the Company's common stock based on the level of achievement of pre-established performance goals relating to Company's performance relative to a group of peer companies and to cumulative revenue targets for a specific product group, during a specified performance period. The performance period for the Company's performance-based stock units is generally 1 to 3 years. Management evaluates, on a quarterly basis, the likelihood of the Company meeting its performance metrics in determining stock-based compensation expense.

The following table summarizes the Company's performance stock unit activity and related weighted-average exercise prices for each category for the nine months ended January 3, 2016:

	Nine Months Ended January 3, 2016
(shares in thousands)	Shares		Weighted-average grant date fair value per share
Beginning PSUs outstanding	517		$	8.06
Granted	73		8.51
Released	(182	)	8.17
Forfeited	(178	)	8.47
Ending PSUs outstanding	230		$	7.80

As of January 3, 2016, performance stock units vested and expected to vest totaled approximately 0.2 million with a weighted-average remaining contract life of 0.44 year. The aggregate intrinsic value was approximately $4.8 million.

As of January 3, 2016, the unrecognized compensation cost related to performance stock units granted under the Company’s equity incentive plan was approximately $4.5 million, net of estimated forfeitures, and is expected to be recognized over a weighted-average period of 0.44 year.

Market-Based Stock Units

In June 2015, under the 2004 Plan, the Company granted approximately 0.2 million shares of restricted stock units with a market-based condition to a group of executive-level employees. These equity awards vest and convert into shares of the Company’s common stock based on the achievement of the Company’s relative total shareholder return over the performance period of 2 years. The earned market-based stock units will vest in two equal installments, with the first installment of vesting to occur on June 15, 2017, and the second on June 15, 2018.

In June 2014, under the 2004 Plan, the Company granted approximately 0.5 million shares of restricted stock units with a market-based condition to a group of executive-level employees. These equity awards vest and convert into shares of the Company’s common stock based on the achievement of the Company’s relative total shareholder return over the performance period of 2 years. The earned market-based stock units will vest in two equal installments, with the first installment of vesting to occur on June 15, 2016, and the second on June 15, 2017.

The fair value of each market-based stock unit award was estimated on the date of grant using a Monte Carlo simulation model that uses the assumptions noted in the table below. The Company uses historical data to estimate employee termination within the valuation model. The expected term of 1.80 years was derived from the output of the valuation model and represents the period of time that restricted stock units granted are expected to be outstanding.

The following weighted average assumptions were used to calculate the fair value of the market-based equity award using a Monte Carlo simulation model:

	June 15, 2015			June 15, 2014
Estimated fair value	$	33.08		$	21.00
Expected volatility	41.22		%	34.60		%
Expected term (in years)	1.80			1.80
Risk-free interest rate	0.65		%	0.38		%
Dividend yield	—		%	—		%

As of January 3, 2016, the total market-based stock units outstanding were approximately 0.8 million.

As of January 3, 2016, market-based stock units vested and expected to vest totaled approximately 0.6 million with a weighted-average remaining contract life of 1.18 years. The aggregate intrinsic value was approximately $17.1 million.

As of January 3, 2016, the unrecognized compensation cost related to market-based stock units granted under the Company’s equity incentive plans was approximately $7.9 million, net of estimated forfeitures, and is expected to be recognized over a weighted-average period of 1.24 years.

2009 Employee Stock Purchase Plan (2009 ESPP)

On June 18, 2009, the Board approved implementation of the 2009 Employee Stock Purchase Plan (2009 ESPP) and authorized the reservation and issuance of up to 9.0 million shares of the Company's common stock, subject to stockholder approval. On September 17, 2009, the Company's stockholders approved the plan at the 2009 Annual Meeting of Stockholders. The 2009 ESPP is intended to be implemented in successive quarterly purchase periods commencing on the first day of each fiscal quarter of the Company. In order to maintain its qualified status under Section 423 of the Internal Revenue Code, the 2009 ESPP imposes certain restrictions, including the limitation that no employee is permitted to participate in the 2009 ESPP if the rights of such employee to purchase common stock of the Company under the 2009 ESPP and all similar purchase plans of the Company or its subsidiaries would accrue at a rate which exceeds $25,000 of the fair market value of such stock (determined at the time the right is granted) for each calendar year. At the 2012 annual meeting of stockholders on September 13, 2012, the Company's stockholders approved an additional 5.0 million. The number of shares of common stock reserved for issuance thereunder increased from 9.0 million shares to 14.0 million shares.

Activity under the Company's ESPP for the nine months ended January 3, 2016 is summarized in the following table:

(in thousands, except per share amounts)
Number of shares issued	486
Average issuance price	$	16.85
Number of shares available at January 3, 2016	3,893

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Stockholders' Equity

9 Months Ended

Jan. 03, 2016

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

Stock Repurchase Program. In April 2015, the Company's Board of Directors approved a new share repurchase program authorization for $300 million. In October 2015, the Company's Board of Directors approved an increase in the share repurchase authorization by another $300 million. In the three and nine months ended January 3, 2016, the Company repurchased 10.7 million shares for $267.2 million and 14.5 million shares for $344.2 million, respectively. Of the total repurchases for the nine months ended January 3, 2016, $7.9 million was from the old authorization. As of January 3, 2016, approximately $263.7 million was available for future purchase under the new share repurchase program.

Accelerated Share Repurchase. On November 2, 2015, the Company separately entered into an accelerated share repurchase agreement (the ASR Agreements) with JPMorgan Chase Bank and Bank of America (the Dealers) to repurchase a total of $225 million of its common stock. Pursuant to the terms of the ASR agreements, approximately 7.0 million shares of its common stock were received by the Company on November 5, 2015. At settlement of the ASR Agreements, which is expected to occur during the fourth quarter of fiscal 2016, the Dealers may be required to deliver additional shares of common stock to the Company, or under certain circumstances, the Company may be required to deliver shares of its common stock or may elect to make a cash payment to the Dealers, with the number of shares to be delivered or the amount of such payment based on the differences between the volume-weighted average price, less a discount, of the Company’s common stock during the term of the transaction and the initial $225 million paid. The ASR Agreements were entered into pursuant to the Company’s increase in share repurchase authorization effective October 2015. Of the total initial amount paid to the Dealers, $45 million represents prepayment for subsequent settlement of the ASR Agreements, as of January 3, 2016. In accordance with ASC 815-40, Derivatives and Hedging - Contracts in an Entity’s Own Equity, the payments made under the ASR Agreements were classified as equity in the Company's Condensed Consolidated Balance Sheets.

In January 2016, the ASR Agreements settled resulting in the repurchase of 1.6 million of the Company’s common stock at an average price per share of $28.32.

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Balance Sheet Detail

9 Months Ended

Jan. 03, 2016

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Detail

Balance Sheet Detail

(in thousands)	January 3, 2016			March 29, 2015
Inventories, net
Raw materials	$	3,663		$	4,709
Work-in-process	29,228			18,377
Finished goods	21,894			22,324
Total inventories, net	$	54,785		$	45,410
Property, plant and equipment, net
Land	$	11,469		$	11,578
Machinery and equipment	260,313			292,180
Building and leasehold improvements	48,195			48,031
Total property, plant and equipment, gross	319,977			351,789
Less: accumulated depreciation	(246,208		)	(286,281		)
Total property, plant and equipment, net	$	73,769		$	65,508

Other accrued liabilities
Accrued restructuring costs (1)	$	8,568	$	10,512
Other (2)	7,797		7,070
Total other accrued liabilities	$	16,365	$	17,582

Other long-term obligations
Deferred compensation related liabilities	$	13,822	$	13,143
Other (3)	8,271		4,462
Total other long-term liabilities	$	22,093	$	17,605

(1) Includes accrued severance costs related to ZMDI acquisition and the disposed HSC business of $4.5 million and $1.7 million, respectively, as of January 3, 2016 and accrued severance costs related to the sale of HSC business of $10.2 million as of March 29, 2015.

(2) Other current liabilities consist primarily of accrued royalties and outside commissions, current portion of supplier obligations, current portion of capital lease payable, and other accrued unbilled expenses.

(3) Other long-term obligations consist primarily of non-current portion of capital lease payable, non-current deferred gain and other long-term accrued liabilities.

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Deferred Income on Shipments to Distributors

9 Months Ended

Jan. 03, 2016

Deferred Revenue Disclosure [Abstract]

Deferred Income on Shipments to Distributors

Deferred Income on Shipments to Distributors

Included in the caption “Deferred income on shipments to distributors” on the Consolidated Condensed Balance Sheets are amounts related to shipments to certain distributors for which revenue is not recognized until the Company's product has been sold by the distributor to an end customer. The components of deferred income on shipments to distributors as of January 3, 2016 and March 29, 2015 are as follows:

(in thousands)	January 3, 2016			March 29, 2015
Gross deferred revenue	$	11,410		$	19,299
Gross deferred costs	(2,887		)	(3,605		)
Deferred income on shipments to distributors	$	8,523		$	15,694

The gross deferred revenue represents the gross value of shipments to distributors at the list price billed to the distributor less any price protection credits provided to them in connection with reductions in list price while the products remain in their inventory.  The amount ultimately recognized as revenue will be lower than this amount as a result of ship from stock pricing credits which are issued in connection with the sell through of the Company's products to end customers. Based on the last four quarters, this amount has ranged from an average of approximately 31% to 39% of the list price billed to the customer.  The gross deferred costs represent the standard costs (which approximate actual costs) of products the Company sells to the distributors.  Although the Company monitors the levels and quality of inventory in the distribution channel, the Company's experience is that products returned from these distributors may be sold to a different distributor or in a different region of the world.  As such, inventory write-downs for products in the distribution channel have not been significant.

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Jan. 03, 2016

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended January 3, 2016 consisted of the following:

(in thousands)	Cumulative translation adjustments			Unrealized gain on available-for-sale investments			Pension adjustments			Total
Balance, March 29, 2015	$	(3,721	)	$	860		$	680		$	(2,181	)
Other comprehensive loss before reclassifications	(2,044		)	(1,740		)	—			(3,784		)
Amounts reclassified out of accumulated other comprehensive income (loss)	—			331			(613		)	(282		)
Net current-period other comprehensive loss	(2,044		)	(1,409		)	(613		)	(4,066		)
Balance as of January 3, 2016	$	(5,765	)	$	(549	)	$	67		$	(6,247	)

Comprehensive income components consisted of:

(in thousands)	Nine Months Ended January 3, 2016			Location
Unrealized holding gains on available-for-sale investments	$	331		interest and other, net
Amortization of pension benefits prior service costs	(613		)	operating expense
Total amounts reclassified out of accumulated other comprehensive loss	$	(282	)

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Goodwill and Intangible Assets, Net

9 Months Ended

Jan. 03, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill and Intangible Assets, Net

Goodwill balances by reportable segment as of January 3, 2016 and March 29, 2015 are as follows:

	Reportable Segment
(in thousands)	Communications		Computing, Consumer and Industrial		Total
Balance as of March 29, 2015	$	122,248	$	13,396	$	135,644
Addition - ZMDI acquisition (see Note 3)	—		170,089		170,089
Balance as of January 3, 2016	$	122,248	$	183,485	$	305,733

Goodwill balances as of January 3, 2016 and March 29, 2015 are net of $920.3 million and $922.5 million, respectively, in accumulated impairment losses.

Intangible asset balances as of January 3, 2016 and March 29, 2015 are summarized as follows:

	January 3, 2016
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Existing technology	$	279,514	$	(201,992	)	$	77,522
Trademarks	5,211		(4,274		)	937
Customer relationships	172,787		(129,146		)	43,641
Intellectual property licenses	11,400		(1,324		)	10,076
Backlog	5,800		(487		)	5,313
Total purchased intangible assets	$	474,712	$	(337,223	)	$	137,489

	March 29, 2015
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Existing technology	$	211,170	$	(206,491	)	$	4,679
Trademarks	4,411		(3,850		)	561
Customer relationships	131,045		(130,750		)	295
Total purchased intangible assets	$	346,626	$	(341,091	)	$	5,535

As a result of the acquisition of ZMDI, the Company recognized additional intangible assets with total original value of $126.2 million during the three months ended January 3, 2016 (see Note 3).

During the three months ended January 3, 2016, the Company purchased an intangible asset with a cost of $1.5 million and an average estimated useful life of 3 years. During the three months ended September 27, 2015, the Company individually purchased intangible assets with a total cost of $9.9 million and an average estimated useful life of 6.25 years. These intangible assets are comprised of intellectual property licenses that are being used by the Company in the development, manufacture and sale of certain products.

Amortization expense for the three months ended January 3, 2016 and December 28, 2014 was $3.2 million and $1.3 million, respectively. Amortization expense for the nine months ended January 3, 2016 and December 28, 2014 was $5.6 million for each of the periods.

During the first quarter of fiscal 2015, the Company recorded an impairment charge relating to the HSC assets held for sale of $5.6 million, which consisted of existing technology of $4.6 million, customer relationships of $0.9 million and non-compete agreements of $0.1 million. Refer to Note 4 for additional information.

The intangible assets are being amortized over estimated useful lives of 1 to 7.5 years.

Based on the intangible assets recorded at January 3, 2016, and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated amortization expense is expected to be as follows (in thousands):

Fiscal Year	Amount
2016 (Remaining 3 months)	$	7,150
2017	25,651
2018	19,322
2019	18,868
2020 and thereafter	66,498
Total purchased intangible assets	$	137,489

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Restructuring

9 Months Ended

Jan. 03, 2016

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

The following table shows the provision of the restructuring charges and the liability remaining as of January 3, 2016:

(in thousands)	Continuing Operations			Discontinued Operations (HSC)			Total
Balance as of March 29, 2015	$	295		$	10,217		$	10,512
Provision	8,910			—			8,910
Payments and other adjustments	(2,290		)	(8,564		)	(10,854		)
Balance as of January 3, 2016	$	6,915		$	1,653		$	8,568

Integration-related Restructuring Plan

In December 2015, the Company began the implementation of planned cost reduction and restructuring activities in connection with the acquisition of ZMDI. The Company recognized approximately $4.5 million of employee termination cost for two former executives in operating expenses for the quarter ended January 3, 2016. The termination benefits are expected to be paid in the fourth quarter of fiscal 2016.

Other

During the three months ended January 3, 2016, the Company recorded charges of $1.5 million and reduced headcount by 2 employees. During the nine months ended January 3, 2016, the Company recorded charges of $4.4 million and reduced headcount by 37 employees, and paid $2.3 million related to these actions. As of January 3, 2016, the total accrued balance for employee severance costs related to these actions was $2.4 million. The Company expects to complete these actions by the fourth quarter of fiscal 2016.

During fiscal 2015, the Company recorded other charges of $1.1 million and reduced headcount by 28 employees in multiple reductions in workforce actions. During fiscal 2015, the Company paid $0.8 million related to these actions. During first quarter of fiscal 2016, the Company paid $0.3 million related to these actions, which reduced the total accrual balance to zero.

HSC Business

In fiscal 2015, the Company prepared a workforce-reduction plan (the Plan) with respect to employees of its HSC business in France and the Netherlands. The Plan sets forth the general parameters, terms and benefits for employee dismissals. The Plan was approved by the French Works Council and Labor Administrator and the related Plan details were communicated to the affected employees in France and the Netherlands. No works council consultation was required in the Netherlands. The Company has not historically offered similar termination benefits as defined in the Plan for these locations. The Plan identified the number of employees to be terminated, their job classification or function, their location and the date that the Plan was expected to be completed. The Plan also established the terms of the benefit arrangement in sufficient detail to enable the employees to determine the type and amount of benefits that they would receive if terminated. In addition, the actions required to complete the Plan indicated that it was unlikely that substantial changes to the Plan would be made after communication to the employees. Accordingly, the Company accrued restructuring charges in accordance with ASC 420, Exit or Disposal Cost Obligations. The restructuring charges recorded to discontinued operations in the Condensed Consolidated Statement of Operations were approximately $18.3 million for the fiscal year ended March 29, 2015, for a total of 53 employees in France and the Netherlands combined.

The Company expects to complete payments of these termination benefits and the restructuring action by December 2017.

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Commitments and Contingencies

9 Months Ended

Jan. 03, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Warranty

The Company maintains an accrual for obligations it incurs under its standard product warranty program and customer, part, or process specific matters. The Company’s standard warranty period is one year, however in certain instances the warranty period may be extended to as long as two years. Management estimates the fair value of the Company’s warranty liability based on actual past warranty claims experience, its policies regarding customer warranty returns and other estimates about the timing and disposition of product returned under the standard program. Customer, part, or process specific accruals are estimated using a specific identification method. Historical profit and loss impact related to warranty returns activity has been minimal. The total warranty accrual was $0.3 million as of January 3, 2016 and March 29, 2015.

Litigation

In January 2012, Maxim I Properties, a general partnership that had purchased a certain parcel of real property (the Property) in 2003, filed a complaint in the Northern District of California naming approximately 30 defendants, including the Company ("Defendants"), alleging various environmental violations of the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and Resource Conservation and Recovery Act (RCRA), the California Hazardous Substance Account Act (HSAA), and other common law claims (the Complaint). The Complaint alleged that Defendants including the Company “…generated, transported, and/or arranged for the transport and/or disposal of hazardous waste to the Property.” On August 15, 2012, Maxim I Properties voluntarily dismissed its Complaint without prejudice. However, another defendant, Moyer Products, Inc., counter-claimed against the plaintiff, Maxim, and cross-claimed against the remaining co-Defendants, including the Company. Thus, the Company remains a cross-defendant in this action.

In a related, but independent action, the California Department of Toxic Substances Control (DTSC) notified the Company in September 2012 that the Company, and more than 50 other entities, were being named as respondents to DTSC's Enforcement Order, as “a generator of hazardous waste.” In April 2013, the Company, along with the other “respondent” parties, entered into a Corrective Action Consent Agreement (CACA) with the DTSC, agreeing to conduct the Property investigation and corrective action selection. The CACA supersedes the DTSC’s Enforcement Order. The Northern District of California federal court stayed the Maxim/Moyer litigation pending the Property investigation under the CACA and DTSC's corrective action selection.

Property investigation activity took place between April 2013 and June, 2015. On June 23, 2015, the DTSC deemed the Property investigation complete. The DTSC continues to evaluate corrective action alternatives. The Company will continue to vigorously defend itself against the allegations in the Complaint and evaluate settlement options with Moyer upon notification from DTSC of its corrective action selection. No specific corrective action has been selected yet, and thus no specific monetary demands have been made.

As of January 3, 2016, the Company is also a party to various other legal proceedings and claims arising in the normal course of business. With regard to these or future litigation matters that may arise, potential liability and probable losses or ranges of possible losses due to an unfavorable litigation outcome cannot be reasonably estimated at this time. Generally, litigation is subject to inherent uncertainties, and no assurance can be given that the Company will prevail in the Maxim lawsuit or any other particular lawsuit or claim. Pending lawsuits, claims as well as potential future litigation, could result in substantial costs and diversion of resources and could have a material adverse effect on the Company's financial condition, results of operations or cash flows.

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Employee Benefit Plans

9 Months Ended

Jan. 03, 2016

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

401(k) Plan

The Company sponsors a 401(k) retirement matching plan for qualified domestic employees.  The Company recorded expenses of approximately $1.9 million and $1.3 million in matching contributions under the plan during the nine months ended January 3, 2016 and December 28, 2014, respectively.

Deferred Compensation Plans

Effective November 1, 2000, the Company established an unfunded deferred compensation plan to provide benefits to executive officers and other key employees. Under the plan, participants can defer any portion of their salary and bonus compensation into the plan and may choose from a portfolio of funds from which earnings are measured. Participant balances are always 100% vested. As of January 3, 2016 and March 29, 2015, obligations under the plan totaled approximately $13.8 million and $13.1 million. Additionally, the Company has set aside assets in a separate trust that is invested in corporate owned life insurance intended to substantially fund the liability under the plan. As of January 3, 2016 and March 29, 2015, the deferred compensation plan assets were approximately $14.5 million and $16.5 million respectively.

During the first quarter of fiscal 2013, the Company assumed a deferred compensation plan associated with the acquisition of Fox. Under this plan, participants in retirement are entitled to receive a fixed amount from the Company on a monthly basis. The Company has purchased life insurance policies with the intention of funding the liability under this plan. As of January 3, 2016 and March 29, 2015, the deferred compensation plan assets under this plan were approximately $0.8 million. As of January 3, 2016 and March 29, 2015, the deferred compensation plan liabilities under this plan were approximately $1.8 million and $1.7 million, respectively.

International Employee Benefit Plans

The Company sponsors defined-benefit pension plans, defined-contribution plans, multi-employer plans and other post-employment benefit plans covering employees in certain of the Company's international locations. As of January 3, 2016 and March 29, 2015, the net liability for all of these international benefit plans totaled $0.8 million and $1.0 million respectively.

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Convertible Senior Notes, Warrants, and Hedges

9 Months Ended

Jan. 03, 2016

Debt Disclosure [Abstract]

Convertible Senior Notes, Warrants, and Hedges

Convertible Senior Notes, Warrants and Hedges

Convertible Notes Offering

On October 29, 2015, the Company priced its private offering of $325 million in aggregate principal amount of 0.875% Convertible Senior Notes due 2022 ("Initial Convertible Notes"). On November 3, 2015, the initial purchasers in such offering exercised in full the over-allotment option to purchase an additional $48.8 million in aggregate principal amount of Convertible Notes (“Additional Convertible Notes”, and together “Convertible Notes”). The net proceeds from this offering were approximately $363.4 million, after deducting the initial purchasers’ discounts and commissions and the offering expenses. The Company used approximately $37.4 million of the net proceeds to pay the cost of the Bond Hedges described below (after such cost was partially offset by the proceeds to the Company from the Warrant Transactions described below). The Company used portion of the remaining net proceeds from the offering to purchase an aggregate of $300 million of its common stock, as authorized under its share repurchase program. The Company used $75.0 million under the currently approved repurchased authorization, to purchase shares of common stock from a purchaser of the Convertible Notes in privately negotiated transaction concurrently with the closing of the offering, and $225 million to purchase additional shares of common stock under the ASR Agreements. The Company intends to use the remainder of the net proceeds for working capital and general corporate purposes.

The Convertible Notes are governed by the terms of an indenture, dated November 4, 2015 (“Indenture”), between the Company and a trustee. The Convertible Notes are the senior unsecured obligations of the Company and bear interest at a rate of 0.875% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, commencing May 15, 2016. The Convertible Notes will mature on November 15, 2022, unless earlier repurchased or converted. At any time prior to the close of business on the business day immediately preceding August 15, 2022, holders may convert their Convertible Notes at their option only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on April 3, 2016 (and only during such fiscal quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after August 15, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances.

Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election. Holders will not receive any additional cash payment or additional shares of the Company's common stock representing accrued and unpaid interest, if any, upon conversion of a Convertible Note, except in limited circumstances. Instead, interest will be deemed to be paid by the cash and shares, if any, of the Company’s common stock paid or delivered, as the case may be, to such holder upon conversion of a Convertible Note.

The conversion rate for the Convertible Notes will initially be 29.8920 shares of common stock per $1,000 principal amount of Convertible Notes, which corresponds to an initial conversion price of approximately $33.45 per share of common stock. The conversion rate is subject to adjustment from time to time upon the occurrence of certain events, including, but not limited to, the issuance of certain stock dividends on common stock, the issuance of certain rights or warrants, subdivisions, combinations, distributions of capital stock, indebtedness, or assets, the payment of cash dividends and certain issuer tender or exchange offers.

The Company may not redeem the Convertible Notes prior to the maturity date and no sinking fund is provided for the Convertible Notes, which means that the Company is not required to periodically redeem or retire the Convertible Notes. Upon the occurrence of certain fundamental changes involving the Company, holders of the Convertible Notes may require the Company to repurchase for cash all or part of their Convertible Notes in principal amounts of $1,000 or an integral multiple thereof at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

The Indenture does not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. The Indenture contains customary terms and covenants and events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization involving the Company) occurs and is continuing, the Trustee by notice to the Company, or the holders of at least 25% in principal amount of the outstanding Convertible Notes by written notice to the Company and the Trustee, may declare 100% of the principal of and accrued and unpaid interest, if any, on all the Convertible Notes to be due and payable. Upon such a declaration of acceleration, such principal and accrued and unpaid interest, if any, will be due and payable immediately. Upon the occurrence of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal of and accrued and unpaid interest, if any, on all of the Convertible Notes will become due and payable automatically. Notwithstanding the foregoing, the Indenture provides that, to the extent the Company elects, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture consists exclusively of the right to receive additional interest on the Convertible Notes. As of January 3, 2016, none of the conditions allowing holders of the Notes to convert had been met.

In accordance with ASC 470-20, Debt with Conversion and Other Options, the Company separated the Convertible Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the estimated fair value of a similar liability that does not have an associated convertible feature. Such amount was based on the contractual cash flows discounted at an appropriate market rate for a non-convertible debt at the date of issuance, which was determined to be 5.5%. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the face value of the Convertible Notes as a whole. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense over the term of the Convertible Notes using the effective interest method with an effective interest rate of 5.5% per annum. The equity component is not remeasured as long as it continues to meet the conditions for equity classification.

In accordance with ASU No. 2015-03, the Company allocated the total transaction costs related to the Convertible Note issuance to the liability and equity components based on their relative values. Issuance costs attributable to the $274.4 million liability component are being amortized to expense over the term of the Convertible Notes, and issuance costs attributable to the $99.3 million equity component are included along with the equity component in stockholders' equity.

At the debt issuance date, the Convertible Notes, net of issuance costs, consist of the following (in thousands):

	November 3, 2015
Liability component
Principal	$	274,435
Less: Issuance cost	(7,568		)
Net carrying amount	266,867
Equity component *
Allocated amount	99,316
Less: Issuance cost	(2,738		)
Net carrying amount	96,578
Convertible Notes, net	$	363,445

* Recorded in the consolidated condensed balance sheet within additional paid-in capital.

The following table includes total interest expense recognized related to the Convertible Notes during the three months period ended January 3, 2016 (in thousands):

	Three Months Ended January 3, 2016
Contractual interest expense	$	545
Amortization of debt issuance costs	180
Amortization of debt discount	1,984
	$	2,709

The net liability component of Convertible Notes is comprised of the following as of January 3, 2016 (in thousands):

	January 3, 2016
Net carrying amount at issuance date	$	266,867
Amortization of debt issuance costs during the period	180
Amortization of debt discount during the period	1,984
	$	269,031

See Note 5 to the Company's consolidated financial statements for fair value disclosures related to the Company's Convertible Notes.

Convertible Note Hedge and Warrant Transactions

In connection with the pricing of the Convertible Notes, on October 29, 2015, the Company entered into convertible note hedge transaction (the "Initial Bond Hedge"), with JPMorgan Chase Bank, National Association (the “Option Counterparty”) and paid $81.9 million.

On October 29, 2015, the Company also entered into separate warrant transaction (the "Initial Warrant Transaction") with the Option Counterparty and received $49.4 million.

In connection with the exercise of the Over-Allotment Option, on November 3, 2015, the Company entered into a convertible note hedge transaction (the “Additional Bond Hedge”, and together with the Initial Bond Hedges, the “Bond Hedge”) with the Option Counterparty and paid $12.3 million. On November 3, 2015, the Company also entered into separate additional warrant transaction (the “Additional Warrant Transaction”, and together with the Initial Warrant Transaction, the “Warrant Transactions”) with the Option Counterparty and received $7.4 million. Total amount paid for the purchase of bond hedge and total amount received for the sale of warrants were $94.2 million and $56.8 million, respectively.

The Bond Hedges are generally expected to reduce the potential dilution upon conversion of the Convertible Notes and/or offset any payments in cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, that the Company is required to make in excess of the principal amount of the Convertible Notes upon conversion of any Convertible Notes, as the case may be, in the event that the market price per share of common stock, as measured under the terms of the Bond Hedges, is greater than the strike price ($33.45) of the Bond Hedges, which initially corresponds to the conversion price of the Convertible Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Convertible Notes. The Warrant Transactions will separately have a dilutive effect to the extent that the market value per share of common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants issued pursuant to the Warrant Transactions (the “Warrants”). The initial strike price of the Warrants is $48.66 per share. The Bond Hedges and Warrants are not marked to market. The value of the Bond Hedges and Warrants were initially recorded in stockholders' equity and continue to be classified as stockholders' equity in accordance with ASC 815-40, Derivatives and Hedging - Contracts in Entity's Own Equity. As of January 3, 2016, no warrants have been exercised.

Aside from the initial payment of a premium to the Option Counterparty under the Bond Hedges, which amount is partially offset by the receipt of a premium under the Warrant Transactions, the Company is not required to make any cash payments to the Option Counterparty under the Bond Hedges and will not receive any proceeds if the Warrants are exercised.

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Income Taxes

9 Months Ended

Jan. 03, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

During the three and nine months ended January 3, 2016, the Company recorded an income tax benefit from continuing operations of $3.9 million and $2.9 million, respectively. The income tax benefit recorded in the three and nine months ended January 3, 2016 was primarily due to the tax benefit on the amortization of acquired intangible assets and severance costs in jurisdictions where no valuation allowance is in place, partially offset by taxes on earnings in foreign jurisdictions. The Company recorded an income tax expense from continuing operations of $0.1 million and $0.8 million in the three and nine months ended December 28, 2014, respectively. The income tax expense recorded in the three and nine months ended December 28, 2014 was primarily due to taxes on earnings in foreign jurisdictions.

As of January 3, 2016, the Company continued to maintain a valuation allowance against its net U.S. and foreign deferred tax assets, as the Company could not conclude that it was more likely than not that the Company would be able to realize its U.S. and foreign deferred tax assets. Given the continued improvement in the Company’s operations combined with certain tax strategies, it is reasonably possible that within the next 12 months, positive evidence will be sufficient to release a material amount of the Company’s valuation allowance. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. The exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that the Company is able to actually achieve. The Company will continue to evaluate the release of the valuation allowance on a quarterly basis.

After examination of the Company’s projected offshore cash flows, and global cash requirements, the Company determined that beginning in fiscal year 2016, the Company would no longer require 100% of its future foreign generated cash to support its foreign operations. The Company plans to repatriate a portion of its current year offshore earnings to the U.S. for domestic operations, and has accrued for the related tax impacts accordingly. For earnings accumulated as of March 29, 2015, the Company continues to indefinitely reinvest such amounts in its foreign jurisdictions, except to the extent there is any previously taxed income which is expected to be repatriated. If circumstances change and it becomes apparent that some or all of those undistributed earnings of the Company's offshore subsidiary will be remitted in the foreseeable future but income taxes have not been recognized, the Company will accrue income taxes attributable to that remittance.

The Company benefits from tax incentives granted by local tax authorities in certain foreign jurisdictions. In the fourth quarter of fiscal 2011, the Company agreed with the Malaysia Industrial Development Board to enter into a new tax incentive agreement which is a full tax exemption on statutory income for a period of 10 years commencing April 4, 2011. This tax incentive agreement is subject to the Company meeting certain financial targets, investments, headcounts and activities in Malaysia.

During the quarter ended June 28, 2015, the Company reached an understanding regarding the terms for settling with the U.S. Internal Revenue Service ("IRS") and closed out all positions as part of the examination of the Company's income tax returns for the fiscal years 2010 through 2012. As a result, the Company remeasured its tax positions based on the facts, circumstances, and information available at the reporting date. The outcome did not have a material effect on the Company’s financial position, cash flows or results of operations due to its tax attributes, which are fully offset by a valuation allowance.

As of January 3, 2016, the Company was under examination in Singapore. The Company's fiscal years 2009 through 2012 are under audit by the Inland Revenue Authority of Singapore. Although the final outcome is uncertain, based on currently available information, the Company believes that the ultimate outcome will not have a material adverse effect on its financial position, cash flows or results of operations.

The Company's open years in the U.S. federal jurisdiction are fiscal 2013 and later years. In addition, the Company is effectively subject to federal tax examination adjustments for tax years ended on or after fiscal year 1999, in that the Company has tax attribute carryforwards from these years that could be subject to adjustments, if and when utilized. The Company's open years in various state and foreign jurisdictions are fiscal years 2008 and later.

The Company does not expect a material change in unrecognized tax benefits within the next twelve months.

On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. At this time, the U.S. Department of the Treasury has not withdrawn the requirement to include stock-based compensation from its regulations. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits, and the risk of the Tax Court’s decision being overturned upon appeal, the Company has not recorded any benefit as of January 3, 2016. The Company will continue to monitor ongoing developments and potential impacts to our financial statements.

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Segment Information

9 Months Ended

Jan. 03, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The Chief Operating Decision Maker is the Company’s President and Chief Executive Officer.

The Company's reportable segments include the following:

• Communications segment: includes clock and timing solutions, flow-control management devices including Serial RapidIO^® switching solutions, multi-port products, telecommunications products, high-speed static random access memory, first in and first out, digital logic, radio frequency, and frequency control solutions.

• Computing, Consumer and Industry segment: includes clock generation and distribution products, high-performance server memory interfaces, PCI Express switching solutions, power management solutions, signal integrity products, and sensing products for mobile, automotive and industrial solutions.

The Company completed the acquisition of ZMDI in December 2015 and is in the process of integrating the ZMDI business into the Company's reporting segment. During the three months ended January 3, 2016, the Company renamed its Computing and Consumer reportable segment to Computing, Consumer and Industrial in order to reflect the operations of ZMDI which are primarily aggregated into the Computing, Consumer and Industrial reportable segment.

The tables below provide information about these segments:

Revenues by segment	Three Months Ended				Nine Months Ended
(in thousands)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
Communications	$	85,502	$	79,288	$	222,688	$	240,046
Computing, Consumer and Industrial	92,108		71,872		285,327		174,509
Total revenues	$	177,610	$	151,160	$	508,015	$	414,555

Income by segment from continuing operations	Three Months Ended						Nine Months Ended
(in thousands)	January 3, 2016			December 28, 2014			January 3, 2016			December 28, 2014
Communications	$	35,238		$	29,315		$	85,588		$	88,864
Computing, Consumer and Industrial	17,248			10,073			66,934			10,350
Unallocated expenses:
Amortization of intangible assets	(2,732		)	(1,347		)	(4,315		)	(5,572		)
Inventory fair market value adjustment	(890		)	—			(890		)	—
Assets impairment and recoveries	—			—			(119		)	(2,703		)
Stock-based compensation expense	(9,462		)	(5,875		)	(25,878		)	(16,562		)
Severance, retention and facility closure costs	(6,092		)	(338		)	(9,060		)	(1,250		)
Acquisition-related costs and other	(2,649		)	—			(2,649		)	—
Deferred compensation plan expense (income), net	(3		)	125			—			125
Proceeds from life insurance policies	—			25			—			8
Interest income (expense) and other, net	(2,035		)	954			1,201			1,778
Income from continuing operations, before income taxes	$	28,623		$	32,932		$	110,812		$	75,038

The Company does not allocate goodwill and intangible assets impairment charge, severance and retention costs, acquisition-related costs, stock-based compensation, interest income and other, and interest expense to its segments. In addition, the Company does not allocate assets to its segments. The Company excludes these items consistent with the manner in which it internally evaluates its results of operations.

Revenues from unaffiliated customers by geographic area, based on the customers' shipment locations, were as follows:

	Three Months Ended				Nine Months Ended
(in thousands)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
APAC	$	131,155	$	111,437	$	380,101	$	283,293
Americas (1)	18,779		15,869		57,474		52,631
Japan	9,011		9,326		25,756		30,015
Europe	18,665		14,528		44,684		48,616
Total revenues	$	177,610	$	151,160	$	508,015	$	414,555

(1) The revenues from the customers in the U.S. were $18.0 million and $14.6 million in the three months ended January 3, 2016 and December 28, 2014, respectively. The revenues from the customers in the U.S. were $54.3 million and $47.1 million in the nine months ended January 3, 2016 and December 28, 2014, respectively.

The Company utilizes global and regional distributors around the world, that buy product directly from the Company on behalf of their customers. Three distributors, Uniquest, Avnet and its affiliates, and SK Hynix and its affiliates accounted for 14%, 13%, and 13%, respectively, of the Company's revenues in the three months ended January 3, 2016. Three distributors, Uniquest, SK Hynix and its affiliates, and Avnet and its affiliates accounted for 17%, 13% and 13%, respectively, of the Company's revenues in the nine months ended January 3, 2016. One distributor, Uniquest accounted for 17% and 13%, respectively, of the Company's revenues in the three and nine months ended December 28, 2014.

At January 3, 2016, three distributors represented approximately 18%, 11% and 10%, respectively, of the Company’s gross accounts receivable. At March 29, 2015, two distributors represented approximately 10% and 11%, respectively, of the Company’s gross accounts receivable.

The Company’s significant operations outside of the United States include test facilities in Malaysia and Germany, design centers in Canada and China, and sales subsidiaries in Japan, APAC and Europe. The Company's net property, plant and equipment, are summarized below by geographic area: 

(in thousands)	January 3, 2016		March 29, 2015
United States	$	37,703	$	38,879
Malaysia	20,250		21,244
Germany	10,681		—
Canada	3,587		3,997
All other countries	1,548		1,388
Total property, plant and equipment, net	$	73,769	$	65,508

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Jan. 03, 2016

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation.  The Company's fiscal year is the 52 or 53 week period ending on the Sunday closest to March 31. In a 52 week year, each fiscal quarter consists of 13 weeks. In a 53 week year, the additional week is usually added to the third quarter, making such quarter consist of 14 weeks. The first and second quarters of fiscal 2016 and fiscal 2015 were 13 week periods, the third quarter of fiscal 2016 was 14 weeks, and the third quarter of fiscal 2015 was 13 weeks.

Principles of Consolidation

Principles of Consolidation.  The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated.

Use of Estimates

Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Recent Accounting Pronouncements

ecent Accounting Pronouncements

Accounting Pronouncements Adopted in Fiscal 2016

In November 2015, the Financial Accounting Standards Board (FASB) issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, amending the current accounting guidance and requiring an entity to classify all deferred tax assets and liabilities as non-current in a classified statement of financial position. The standard is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted and the standard may be adopted either prospectively or retrospectively. The Company has early adopted the standard prospectively in the quarter ended January 3, 2016. The adoption resulted in a reclassification from current deferred tax liabilities of $1.4 million, net of deferred non-current tax assets of $0.7 million, to non-current deferred tax liabilities.

In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, that requires an entity to present debt issuance costs on the balance sheet as a direct deduction from the related debt liability as opposed to an asset. Amortization of the costs will continue to be reported as interest expense. The update is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued, and the new guidance would be applied retrospectively to all prior periods presented. The Company has early adopted the standard in the quarter ended January 3, 2016. There was no impact to prior periods.

Accounting Pronouncements Not Yet Effective for Fiscal 2016

In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The guidance simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. The guidance eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, and require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The guidance also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements is required under this guidance. The guidance further clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The guidance is applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and is effective for the Company in its first quarter of fiscal 2018. Early adoption is permitted only if certain criteria is met. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements and related disclosures.

In September 2015, the FASB issued ASU No. 2015-16, Simplifying Accounting for Measurement-period Adjustment, which provides that an acquirer should recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Under this guidance, the acquirer is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. It is also required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. Early adoption is permitted. The guidance is applied prospectively and is effective for the Company in its first quarter of fiscal years 2017.

In July 2015, the FASB issued guidance applying to inventory measured using any other method other than last-in, last-out method. Under this guidance, inventory is measured at the lower of cost and net realizable value. The net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is applied prospectively and is effective for the Company in its first quarter of fiscal 2018. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial statements and related disclosures.

On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. On July 9, 2015, the FASB decided to delay the effective date by one year to December 15, 2017 for annual periods beginning after that date. The FASB also decided to allow early adoption of the standard, but not before the original effective date of December 15, 2016. The Company is currently evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

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Net Income Per Share (Tables)

9 Months Ended

Jan. 03, 2016

Earnings Per Share [Abstract]

Schedule Of Earnings Per Share Basic And Diluted

The following table sets forth the computation of basic and diluted net income per share from continuing operations: 

	Three Months Ended				Nine Months Ended
(in thousands, except per share amounts)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
Numerator (basic and diluted):
Net income from continuing operations	$	32,545	$	32,841	$	113,688	$	74,198
Denominator:
Weighted average common shares outstanding, basic	140,411		148,552		145,382		148,844
Dilutive effect of employee stock options and restricted stock units	5,294		5,421		5,232		5,060
Weighted average common shares outstanding, diluted	145,705		153,973		150,614		153,904
Basic net income per share from continuing operations	$	0.23	$	0.22	$	0.78	$	0.50
Diluted net income per share from continuing operations	$	0.22	$	0.21	$	0.75	$	0.48

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Business Combination (Tables)

9 Months Ended

Jan. 03, 2016

Business Combinations [Abstract]

Schedule of acquisition consideration

Total consideration consisted of the following:

(in thousands)
Cash paid to ZMDI shareholders	$	307,030
Less: cash acquired	(27,892		)
Total purchase price, net of cash acquired	$	279,138

Schedule of allocation of purchase price

The Company's preliminary allocation of the purchase price as of December 7, 2015 is as follows:

(in thousands)	Estimated Fair Value
Cash	$	27,892
Accounts receivable	10,618
Inventories	19,892
Other current assets	1,551
Property, plant and equipment	9,287
Other non-current assets	2,003
Intangible assets	126,200
Goodwill	170,089
Accounts payable	(5,633		)
Accrued and other current liabilities	(19,141		)
Loans payable	(9,437		)
Deferred tax liability	(23,467		)
Other long term liabilities	(2,824		)
Total purchase price	$	307,030

Schedule of allocation of intangible assets

A summary of the preliminary allocation of intangible assets is as follows:

(in thousands)	Estimated Fair Value		Estimated Useful Life (in years)
Developed technology	$	75,600	7
Customer relationships	44,000		7
Backlog	5,800		1
Trademarks	800		1
Total	$	126,200

Pro forma financial information including acquisition

	Three Months Ended				Nine Months Ended
(Unaudited in thousands, except per share data)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
Revenues	$	190,408	$	170,425	$	561,646	$	476,862
Net income	$	29,948	$	26,147	$	114,179	$	54,898
Basic net income per share - continuing operations	$	0.21	$	0.18	$	0.79	$	0.37
Diluted net income per share - continuing operations	$	0.21	$	0.17	$	0.76	$	0.36

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Discontinued Operations (Tables)

9 Months Ended

Jan. 03, 2016

Discontinued Operations and Disposal Groups [Abstract]

Summary of components of the gain on divestiture

The following table summarizes the components of the gain (in thousands):

	Amount
Cash proceeds from sale (including amounts held in escrow)	$	18,000
Less book value of assets sold and direct costs related to the sale:
Intangible assets	(990		)
Transaction and other costs	(170		)
Gain on divestiture	$	16,840

Summary of components of the deferred gain on divestiture

The following table summarizes the components of the deferred gain which was included under Other Long-term Liabilities on the Condensed Consolidated Balance Sheet as of January 3, 2016:

(in thousands)	Amount
Sale price	$	1,500
Less book value of assets sold	(115		)
Deferred gain on divestiture	$	1,385

Results of discontinued operations

The results of the HSC business for the three months ended December 28, 2014 and nine months ended January 3, 2016 and December 28, 2014 were as follows (in thousands):

	Three Months Ended			Nine Months Ended
	December 28, 2014			January 3, 2016			December 28, 2014
Revenues	$	701		$	176		$	3,039
Cost of revenues	(441		)	(477		)	(1,459		)
Long-lived assets impairment	—			—			(8,471		)
Restructuring costs (see Note 13)	(11,930		)	—			(18,705		)
Operating expenses	(2,868		)	(246		)	(10,842		)
Gain on divestiture	—			—			16,840
Income tax provision (benefit)	(55		)	15			(43		)
Net loss from discontinued operations	$	(14,483	)	$	(562	)	$	(19,555	)

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Fair Value Measurement (Tables)

9 Months Ended

Jan. 03, 2016

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of January 3, 2016:

	Fair Value at Reporting Date Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Assets
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	$	62,434	$	—		$	—	$	62,434
Money market funds	70,960		—			—		70,960
Asset-backed securities	—		14,501			—		14,501
Corporate bonds	—		108,314			—		108,314
Corporate commercial paper	—		3,483			—		3,483
Bank deposits	—		13,595			—		13,595
Repurchase agreement	—		129			—		129
Municipal bonds	—		900			—		900
Total assets measured at fair value	$	133,394	$	140,922		$	—	$	274,316
Liabilities
Convertible Notes (1)	$	—	$	(284,280	)	$	—	$	(284,280	)

(1) The convertible notes are carried on the Condensed Consolidated Balance Sheets at their original issuance value including accreted interest, net of unamortized debt discount and issuance cost. The Convertible Notes are not marked to fair value at the end of each reporting period. As of January 3, 2016, the fair value of Convertible Notes was determined on the basis of market prices observable for similar instruments and is considered Level 2 in the fair value hierarchy. See Note 16 for additional information on the Convertible Notes.

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 29, 2015:

	Fair Value at Reporting Date Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	$	135,945	$	—	$	—	$	135,945
Money market funds	55,578		—		—		55,578
Asset-backed securities	—		31,830		—		31,830
Corporate bonds	—		245,675		—		245,675
International government bonds	—		1,006		—		1,006
Corporate commercial paper	—		4,999		—		4,999
Bank deposits	—		16,915		—		16,915
Repurchase agreements	—		191		—		191
Municipal bonds	—		6,044		—		6,044
Total assets measured at fair value	$	191,523	$	306,660	$	—	$	498,183

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Investments (Tables)

9 Months Ended

Jan. 03, 2016

Investments, Debt and Equity Securities [Abstract]

Available-For-Sale Investments

Available-for-sale investments at January 3, 2016 were as follows:

(in thousands)	Cost			Gross Unrealized  Gains		Gross Unrealized  Losses			Estimated Fair  Value
U.S. government treasuries and agencies securities	$	62,583		$	—	$	(149	)	$	62,434
Money market funds	70,960			—		—			70,960
Asset-backed securities	14,533			—		(32		)	14,501
Corporate bonds	108,682			18		(386		)	108,314
International government bonds	—			—		—			—
Corporate commercial paper	3,483			—		—			3,483
Bank deposits	13,595			—		—			13,595
Repurchase agreements	129			—		—			129
Municipal bonds	900			—		—			900
Total available-for-sale investments	274,865			18		(567		)	274,316
Less amounts classified as cash equivalents	(74,996		)	—		—			(74,996		)
Short-term investments	$	199,869		$	18	$	(567	)	$	199,320

Available-for-sale investments at March 29, 2015 were as follows:

(in thousands)	Cost			Gross Unrealized  Gains		Gross Unrealized  Losses			Estimated Fair  Value
U.S. government treasuries and agencies securities	$	135,570		$	398	$	(23	)	$	135,945
Money market funds	55,578			—		—			55,578
Asset-backed securities	31,830			9		(9		)	31,830
Corporate bonds	245,229			567		(121		)	245,675
International government bonds	1,010			—		(4		)	1,006
Corporate commercial paper	4,999			—		—			4,999
Bank deposits	16,915			—		—			16,915
Repurchase agreements	191			—		—			191
Municipal bonds	6,001			45		(2		)	6,044
Total available-for-sale investments	497,323			1,019		(159		)	498,183
Less amounts classified as cash equivalents	(60,068		)	—		—			(60,068		)
Short-term investments	$	437,255		$	1,019	$	(159	)	$	438,115

Contractual Maturity of Available-For-Sale Debt Securities

The cost and estimated fair value of available-for-sale securities at January 3, 2016, by contractual maturity, were as follows:

(in thousands)	Amortized Cost		Estimated Fair Value
Due in 1 year or less	$	103,575	$	103,569
Due in 1-2 years	64,896		64,740
Due in 2-5 years	107,386		106,007
Total investments in available-for-sale securities	$	275,857	$	274,316

Gross Unrealized Losses and Fair Value of Investments in Continuous Loss Position

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses as of January 3, 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	Less Than 12 Months					12 Months or Greater				Total
(in thousands)	Fair Value		Unrealized  Loss			Fair  Value		Unrealized  Loss		Fair Value		Unrealized  Loss
Corporate bonds	$	90,142	$	(386	)	$	—	$	—	$	90,142	$	(386	)
Asset-backed securities	14,501		(32		)	—		—		14,501		(32		)
U.S. government treasuries and agencies securities	56,969		(149		)	—		—		56,969		(149		)
Municipal bonds	900		—			—		—		900		—
International government bonds	—		—			—		—		—		—
Total	$	162,512	$	(567	)	$	—	$	—	$	162,512	$	(567	)

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, as of March 29, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	Less Than 12 Months					12 Months or Greater				Total
(in thousands)	Fair  Value		Unrealized  Loss			Fair  Value		Unrealized  Loss		Fair  Value		Unrealized  Loss
Corporate bonds	$	67,367	$	(121	)	$	—	$	—	$	67,367	$	(121	)
Asset-backed securities	17,736		(9		)	—		—		17,736		(9		)
U.S. government treasuries and agencies securities	18,478		(23		)	—		—		18,478		(23		)
Municipal bonds	1,001		(2		)	—		—		1,001		(2		)
International government bonds	1,006		(4		)	—		—		1,006		(4		)
Total	$	105,588	$	(159	)	$	—	$	—	$	105,588	$	(159	)

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Stock-Based Employee Compensation (Tables)

9 Months Ended

Jan. 03, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Compensation Expense

The following table summarizes stock-based compensation expense by line items appearing in the Company’s Condensed Consolidated Statement of Operations:

	Three Months Ended				Nine Months Ended
(in thousands)	January 3, 2016		December 28, 2014		January 3, 2016			December 28, 2014
Cost of revenue	$	666	$	592	$	1,993		$	1,347
Research and development	4,433		2,562		11,608			7,547
Selling, general and administrative	4,363		2,724		12,309			7,875
Discontinued operations	—		20		(32		)	(207		)
Total stock-based compensation expense	$	9,462	$	5,898	$	25,878		$	16,562

Stock Option Activity

The following is a summary of the Company's stock option activity and related weighted average exercise prices for each category:

	Nine Months Ended January 3, 2016
(shares in thousands)	Shares		Price
Beginning stock options outstanding	3,680		$	7.71
Granted	428		21.96
Exercised (1)	(1,222	)	6.82
Canceled	(40	)	6.94
Ending stock options outstanding	2,846		$	10.25
Ending stock options exercisable	1,733		$	7.50

(1) Upon exercise, the Company issues new shares of common stock.

Nonvested Restricted Stock Units Activity

The following table summarizes the Company's restricted stock unit activity and related weighted-average exercise prices for each category for the nine months ended January 3, 2016:

	Nine Months Ended January 3, 2016
(shares in thousands)	Shares		Weighted-average grant date fair value per share
Beginning RSUs outstanding	3,457		$	10.58
Granted	1,640		21.95
Released	(1,091	)	9.76
Forfeited	(311	)	12.59
Ending RSUs outstanding	3,695		$	15.70

Nonvested Performance-based Units Activity

The following table summarizes the Company's performance stock unit activity and related weighted-average exercise prices for each category for the nine months ended January 3, 2016:

	Nine Months Ended January 3, 2016
(shares in thousands)	Shares		Weighted-average grant date fair value per share
Beginning PSUs outstanding	517		$	8.06
Granted	73		8.51
Released	(182	)	8.17
Forfeited	(178	)	8.47
Ending PSUs outstanding	230		$	7.80

Fair Value Assumptions

The following weighted average assumptions were used to calculate the fair value of the market-based equity award using a Monte Carlo simulation model:

	June 15, 2015			June 15, 2014
Estimated fair value	$	33.08		$	21.00
Expected volatility	41.22		%	34.60		%
Expected term (in years)	1.80			1.80
Risk-free interest rate	0.65		%	0.38		%
Dividend yield	—		%	—		%

Employee Stock Purchase Plan Activity

Activity under the Company's ESPP for the nine months ended January 3, 2016 is summarized in the following table:

(in thousands, except per share amounts)
Number of shares issued	486
Average issuance price	$	16.85
Number of shares available at January 3, 2016	3,893

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Balance Sheet Detail (Tables)

9 Months Ended

Jan. 03, 2016

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Detail

(in thousands)	January 3, 2016			March 29, 2015
Inventories, net
Raw materials	$	3,663		$	4,709
Work-in-process	29,228			18,377
Finished goods	21,894			22,324
Total inventories, net	$	54,785		$	45,410
Property, plant and equipment, net
Land	$	11,469		$	11,578
Machinery and equipment	260,313			292,180
Building and leasehold improvements	48,195			48,031
Total property, plant and equipment, gross	319,977			351,789
Less: accumulated depreciation	(246,208		)	(286,281		)
Total property, plant and equipment, net	$	73,769		$	65,508

Other accrued liabilities
Accrued restructuring costs (1)	$	8,568	$	10,512
Other (2)	7,797		7,070
Total other accrued liabilities	$	16,365	$	17,582

Other long-term obligations
Deferred compensation related liabilities	$	13,822	$	13,143
Other (3)	8,271		4,462
Total other long-term liabilities	$	22,093	$	17,605

(1) Includes accrued severance costs related to ZMDI acquisition and the disposed HSC business of $4.5 million and $1.7 million, respectively, as of January 3, 2016 and accrued severance costs related to the sale of HSC business of $10.2 million as of March 29, 2015.

(2) Other current liabilities consist primarily of accrued royalties and outside commissions, current portion of supplier obligations, current portion of capital lease payable, and other accrued unbilled expenses.

(3) Other long-term obligations consist primarily of non-current portion of capital lease payable, non-current deferred gain and other long-term accrued liabilities.

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Deferred Income on Shipments to Distributors (Tables)

9 Months Ended

Jan. 03, 2016

Deferred Revenue Disclosure [Abstract]

Deferred Income on Shipments to Distributors

The components of deferred income on shipments to distributors as of January 3, 2016 and March 29, 2015 are as follows:

(in thousands)	January 3, 2016			March 29, 2015
Gross deferred revenue	$	11,410		$	19,299
Gross deferred costs	(2,887		)	(3,605		)
Deferred income on shipments to distributors	$	8,523		$	15,694

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Jan. 03, 2016

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended January 3, 2016 consisted of the following:

(in thousands)	Cumulative translation adjustments			Unrealized gain on available-for-sale investments			Pension adjustments			Total
Balance, March 29, 2015	$	(3,721	)	$	860		$	680		$	(2,181	)
Other comprehensive loss before reclassifications	(2,044		)	(1,740		)	—			(3,784		)
Amounts reclassified out of accumulated other comprehensive income (loss)	—			331			(613		)	(282		)
Net current-period other comprehensive loss	(2,044		)	(1,409		)	(613		)	(4,066		)
Balance as of January 3, 2016	$	(5,765	)	$	(549	)	$	67		$	(6,247	)

Comprehensive income components consisted of:

(in thousands)	Nine Months Ended January 3, 2016			Location
Unrealized holding gains on available-for-sale investments	$	331		interest and other, net
Amortization of pension benefits prior service costs	(613		)	operating expense
Total amounts reclassified out of accumulated other comprehensive loss	$	(282	)

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Goodwill and Intangible Assets, Net (Tables)

9 Months Ended

Jan. 03, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amounts of goodwill by segment

Goodwill balances by reportable segment as of January 3, 2016 and March 29, 2015 are as follows:

	Reportable Segment
(in thousands)	Communications		Computing, Consumer and Industrial		Total
Balance as of March 29, 2015	$	122,248	$	13,396	$	135,644
Addition - ZMDI acquisition (see Note 3)	—		170,089		170,089
Balance as of January 3, 2016	$	122,248	$	183,485	$	305,733

Summary of intangible assets balances

Intangible asset balances as of January 3, 2016 and March 29, 2015 are summarized as follows:

	January 3, 2016
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Existing technology	$	279,514	$	(201,992	)	$	77,522
Trademarks	5,211		(4,274		)	937
Customer relationships	172,787		(129,146		)	43,641
Intellectual property licenses	11,400		(1,324		)	10,076
Backlog	5,800		(487		)	5,313
Total purchased intangible assets	$	474,712	$	(337,223	)	$	137,489

	March 29, 2015
(in thousands)	Gross Assets		Accumulated Amortization			Net Assets
Purchased intangible assets:
Existing technology	$	211,170	$	(206,491	)	$	4,679
Trademarks	4,411		(3,850		)	561
Customer relationships	131,045		(130,750		)	295
Total purchased intangible assets	$	346,626	$	(341,091	)	$	5,535

Estimated remaining future amortization expense

Based on the intangible assets recorded at January 3, 2016, and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated amortization expense is expected to be as follows (in thousands):

Fiscal Year	Amount
2016 (Remaining 3 months)	$	7,150
2017	25,651
2018	19,322
2019	18,868
2020 and thereafter	66,498
Total purchased intangible assets	$	137,489

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Restructuring (Tables)

9 Months Ended

Jan. 03, 2016

Restructuring and Related Activities [Abstract]

Provision of Restructuring Charges and Liability Remaining

The following table shows the provision of the restructuring charges and the liability remaining as of January 3, 2016:

(in thousands)	Continuing Operations			Discontinued Operations (HSC)			Total
Balance as of March 29, 2015	$	295		$	10,217		$	10,512
Provision	8,910			—			8,910
Payments and other adjustments	(2,290		)	(8,564		)	(10,854		)
Balance as of January 3, 2016	$	6,915		$	1,653		$	8,568

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Convertible Senior Notes, Warrants, and Hedges (Tables)

9 Months Ended

Jan. 03, 2016

Debt Disclosure [Abstract]

Convertible Notes

At the debt issuance date, the Convertible Notes, net of issuance costs, consist of the following (in thousands):

	November 3, 2015
Liability component
Principal	$	274,435
Less: Issuance cost	(7,568		)
Net carrying amount	266,867
Equity component *
Allocated amount	99,316
Less: Issuance cost	(2,738		)
Net carrying amount	96,578
Convertible Notes, net	$	363,445

* Recorded in the consolidated condensed balance sheet within additional paid-in capital.

The following table includes total interest expense recognized related to the Convertible Notes during the three months period ended January 3, 2016 (in thousands):

	Three Months Ended January 3, 2016
Contractual interest expense	$	545
Amortization of debt issuance costs	180
Amortization of debt discount	1,984
	$	2,709

The net liability component of Convertible Notes is comprised of the following as of January 3, 2016 (in thousands):

	January 3, 2016
Net carrying amount at issuance date	$	266,867
Amortization of debt issuance costs during the period	180
Amortization of debt discount during the period	1,984
	$	269,031

See Note 5 to the Company's consolidated financial statements for fair value disclosures related to the Company's Convertible Notes.

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Segment Information (Tables)

9 Months Ended

Jan. 03, 2016

Segment Reporting [Abstract]

Schedule of reportable segments information

The tables below provide information about these segments:

Revenues by segment	Three Months Ended				Nine Months Ended
(in thousands)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
Communications	$	85,502	$	79,288	$	222,688	$	240,046
Computing, Consumer and Industrial	92,108		71,872		285,327		174,509
Total revenues	$	177,610	$	151,160	$	508,015	$	414,555

Income by segment from continuing operations	Three Months Ended						Nine Months Ended
(in thousands)	January 3, 2016			December 28, 2014			January 3, 2016			December 28, 2014
Communications	$	35,238		$	29,315		$	85,588		$	88,864
Computing, Consumer and Industrial	17,248			10,073			66,934			10,350
Unallocated expenses:
Amortization of intangible assets	(2,732		)	(1,347		)	(4,315		)	(5,572		)
Inventory fair market value adjustment	(890		)	—			(890		)	—
Assets impairment and recoveries	—			—			(119		)	(2,703		)
Stock-based compensation expense	(9,462		)	(5,875		)	(25,878		)	(16,562		)
Severance, retention and facility closure costs	(6,092		)	(338		)	(9,060		)	(1,250		)
Acquisition-related costs and other	(2,649		)	—			(2,649		)	—
Deferred compensation plan expense (income), net	(3		)	125			—			125
Proceeds from life insurance policies	—			25			—			8
Interest income (expense) and other, net	(2,035		)	954			1,201			1,778
Income from continuing operations, before income taxes	$	28,623		$	32,932		$	110,812		$	75,038

Revenues from unaffiliated customers by shipment location

Revenues from unaffiliated customers by geographic area, based on the customers' shipment locations, were as follows:

	Three Months Ended				Nine Months Ended
(in thousands)	January 3, 2016		December 28, 2014		January 3, 2016		December 28, 2014
APAC	$	131,155	$	111,437	$	380,101	$	283,293
Americas (1)	18,779		15,869		57,474		52,631
Japan	9,011		9,326		25,756		30,015
Europe	18,665		14,528		44,684		48,616
Total revenues	$	177,610	$	151,160	$	508,015	$	414,555

(1) The revenues from the customers in the U.S. were $18.0 million and $14.6 million in the three months ended January 3, 2016 and December 28, 2014, respectively. The revenues from the customers in the U.S. were $54.3 million and $47.1 million in the nine months ended January 3, 2016 and December 28, 2014, respectively.

Property, plant and equipment by geographic region

The Company's net property, plant and equipment, are summarized below by geographic area: 

(in thousands)	January 3, 2016		March 29, 2015
United States	$	37,703	$	38,879
Malaysia	20,250		21,244
Germany	10,681		—
Canada	3,587		3,997
All other countries	1,548		1,388
Total property, plant and equipment, net	$	73,769	$	65,508

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Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands		3 Months Ended						9 Months Ended
	Dec. 07, 2015	Jan. 03, 2016	Sep. 27, 2015	Jun. 28, 2015	Dec. 28, 2014	Sep. 28, 2014	Jun. 29, 2014	Jan. 03, 2016	Mar. 29, 2015
New Accounting Pronouncement, Early Adoption [Line Items]
Fiscal period duration		98 days	91 days	91 days	91 days	91 days	91 days
Minimum number of weeks in the fiscal year reporting calendar								364 days
Maximum number of weeks in the fiscal year reporting calendar								372 days
Total receivables sold under factoring facility		$ 3,100
Total collections from sale of receivables		4,200
Total collections from deferred purchase payment		400
Available amount of factoring facility		2,900						$ 2,900
Amount due from factoring companies		500						500
Current deferred tax liabilities		0						0	$ 1,401
Non-current deferred tax liabilities		21,106						21,106	$ 1,121
New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncement, Early Adoption [Line Items]
Deferred non-current tax assets		700						700
Current deferred tax liabilities		(1,400)						(1,400)
Non-current deferred tax liabilities		$ 1,400						$ 1,400
Zentrum Mikroelektronik Dresden AG
New Accounting Pronouncement, Early Adoption [Line Items]
Cash paid for acquisition	$ 307,000

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Net Income Per Share (Computation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 03, 2016	Dec. 28, 2014	Jan. 03, 2016	Dec. 28, 2014	Oct. 29, 2015
Numerator (basic and diluted):
Net income from continuing operations	$ 32,545	$ 32,841	$ 113,688	$ 74,198
Denominator:
Weighted average common shares outstanding, basic (shares)	140,411	148,552	145,382	148,844
Dilutive effect of employee stock options and restricted stock units (shares)	5,294	5,421	5,232	5,060
Weighted average common shares outstanding, diluted (shares)	145,705	153,973	150,614	153,904
Basic net income per share from continuing operations (in dollars per share)	$ 0.23	$ 0.22	$ 0.78	$ 0.50
Diluted net income per share from continuing operations (in dollars per share)	$ 0.22	$ 0.21	$ 0.75	$ 0.48
Shares excluded from calculation because they were anti-dilutive (in shares)	400	22	400	300
0.875% Convertible Senior Notes Due 2022 | Convertible debt
Debt Instrument [Line Items]
Interest rate	0.875%		0.875%		0.875%
Stock price trigger to convert convertible debt (in dollars per share)			$ 33.45
Warrant
Debt Instrument [Line Items]
Debt Instrument Convertible, Warrant, Stock Price Trigger (in dollars per share)	$ 48.66		$ 48.66

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Business Combination (Narrative) (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 07, 2015	Jan. 03, 2016	Jan. 03, 2016	Dec. 28, 2014	Jan. 03, 2016	Dec. 28, 2014
Business Acquisition [Line Items]
Revenues			$ 177,610	$ 151,160	$ 508,015	$ 414,555
Net income			32,545	$ 18,358	113,126	$ 54,643
Zentrum Mikroelektronik Dresden AG
Business Acquisition [Line Items]
Escrow deposit	$ 20,000
Cash paid for acquisition	$ 307,000
Revenues			3,400
Selling, General and Administrative Expenses | Zentrum Mikroelektronik Dresden AG
Business Acquisition [Line Items]
Acquisition-related costs and other			2,100
Bank loans | Zentrum Mikroelektronik Dresden AG
Business Acquisition [Line Items]
Liabilities assumed		$ 9,400	9,400		9,400
Repayment of debt		9,200
Long-term debt		$ 200	$ 200		$ 200
Developed technology | Zentrum Mikroelektronik Dresden AG
Business Acquisition [Line Items]
Fair value, discount rate	13.50%
Customer relationships | Zentrum Mikroelektronik Dresden AG
Business Acquisition [Line Items]
Fair value, discount rate	13.50%
Backlog | Zentrum Mikroelektronik Dresden AG
Business Acquisition [Line Items]
Fair value, discount rate	5.40%
Trademarks | Zentrum Mikroelektronik Dresden AG
Business Acquisition [Line Items]
Fair value, discount rate	13.50%

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Business Combination (Total Consideration) (Details) - USD ($) $ in Thousands		9 Months Ended
	Dec. 07, 2015	Jan. 03, 2016	Dec. 28, 2014
Business Acquisition [Line Items]
Total purchase price, net of cash acquired		$ 279,138	$ 0
Zentrum Mikroelektronik Dresden AG
Business Acquisition [Line Items]
Cash paid to ZMDI shareholders	$ 307,030
Less: cash acquired	(27,892)
Total purchase price, net of cash acquired	$ 279,138

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Business Combination (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Jan. 03, 2016	Dec. 07, 2015	Mar. 29, 2015
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	$ 305,733		$ 135,644
Zentrum Mikroelektronik Dresden AG
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash		$ 27,892
Accounts receivable		10,618
Inventories		19,892
Other current assets		1,551
Property, plant and equipment		9,287
Other non-current assets		2,003
Intangible assets		126,200
Goodwill		170,089
Accounts payable		(5,633)
Accrued and other current liabilities		(19,141)
Loans payable		(9,437)
Deferred tax liability		(23,467)
Other long term liabilities		(2,824)
Total purchase price		$ 307,030

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Business Combination (Preliminary Allocation of Intangible Assets) (Details) - Zentrum Mikroelektronik Dresden AG $ in Thousands	Dec. 07, 2015 USD ($)
Business Acquisition [Line Items]
Total	$ 126,200
Developed technology
Business Acquisition [Line Items]
Finite-lived intangible assets	$ 75,600
Estimated Useful Life (in years)	7 years
Customer relationships
Business Acquisition [Line Items]
Finite-lived intangible assets	$ 44,000
Estimated Useful Life (in years)	7 years
Backlog
Business Acquisition [Line Items]
Finite-lived intangible assets	$ 5,800
Estimated Useful Life (in years)	1 year
Trademarks
Business Acquisition [Line Items]
Finite-lived intangible assets	$ 800
Estimated Useful Life (in years)	1 year

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Business Combination (Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 03, 2016	Dec. 28, 2014	Jan. 03, 2016	Dec. 28, 2014
Business Combinations [Abstract]
Revenues	$ 190,408	$ 170	$ 562	$ 477
Net income	$ 30	$ 26	$ 114	$ 55
Basic net income per share - continuing operations	$ 0.21	$ 0.18	$ 0.79	$ 0.37
Diluted net income per share - continuing operations	$ 0.21	$ 0.17	$ 0.76	$ 0.36

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Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	May. 30, 2014	Dec. 28, 2014	Jun. 29, 2014	Jan. 03, 2016	Dec. 28, 2014	Apr. 27, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestitures				$ 0	$ 15,300
High-Speed Converter Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestitures	$ 18,000		$ 18,000
Cash held in escrow related to discontinued operations	2,700
Gain on divestiture		$ 0	16,840	0	$ 16,840
Long-lived assets held for sale	8,500
Fixed assets held for sale	2,900
Intangible assets held for sale	$ 5,600
Impairment charge			$ 8,500
Other Assets | High-Speed Converter Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestitures				$ 1,500
Consideration in sale of business						$ 1,500

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Discontinued Operations (Components of Deferred Gain) (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	May. 30, 2014	Jun. 29, 2014	Jan. 03, 2016	Dec. 28, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price			$ 0	$ 15,300
High-Speed Converter Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price	$ 18,000	$ 18,000
Other Long-term Liabilities | High-Speed Converter Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price			1,500
Less book value of assets sold			(115)
Deferred gain on divestiture			$ 1,385

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Discontinued Operations (Divestiture) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	May. 30, 2014	Dec. 28, 2014	Jun. 29, 2014	Jan. 03, 2016	Dec. 28, 2014
Long Lived Assets Held-for-sale [Line Items]
Proceeds from divestitures				$ 0	$ 15,300
High-Speed Converter Business
Long Lived Assets Held-for-sale [Line Items]
Proceeds from divestitures	$ 18,000		$ 18,000
Less book value of assets sold and direct costs related to the sale:
Intangible assets			(990)
Transaction and other costs			(170)
Gain on divestiture		$ 0	$ 16,840	$ 0	$ 16,840

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Discontinued Operations (Results of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Jan. 03, 2016	Dec. 28, 2014	Jun. 29, 2014	Jan. 03, 2016	Dec. 28, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net loss from discontinued operations	$ 0	$ (14,483)		$ (562)	$ (19,555)
High-Speed Converter Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues		701		176	3,039
Cost of revenues		(441)		(477)	(1,459)
Long-lived assets impairment		0		0	(8,471)
Restructuring costs		(11,930)		0	(18,705)
Operating expenses		(2,868)		(246)	(10,842)
Gain on divestiture		0	$ 16,840	0	16,840
Income tax provision (benefit)		(55)		15	(43)
Net loss from discontinued operations		$ (14,483)		$ (562)	$ (19,555)

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Fair Value Measurement (Levels 1-3) (Details) - Measured on a Recurring Basis - USD ($) $ in Thousands	Jan. 03, 2016	Mar. 29, 2015
Quoted Prices in Active Markets for Identical Assets (Level 1)
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	$ 62,434	$ 135,945
Money market funds	70,960	55,578
Asset-backed securities	0	0
Corporate bonds	0	0
International government bonds		0
Corporate commercial paper	0	0
Bank deposits	0	0
Repurchase agreement	0	0
Municipal bonds	0	0
Total assets measured at fair value	133,394	191,523
Convertible Notes	0
Significant Other Observable Inputs (Level 2)
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	0	0
Money market funds	0	0
Asset-backed securities	14,501	31,830
Corporate bonds	108,314	245,675
International government bonds		1,006
Corporate commercial paper	3,483	4,999
Bank deposits	13,595	16,915
Repurchase agreement	129	191
Municipal bonds	900	6,044
Total assets measured at fair value	140,922	306,660
Convertible Notes	(284,280)
Significant Unobservable Inputs (Level 3)
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	0	0
Money market funds	0	0
Asset-backed securities	0	0
Corporate bonds	0	0
International government bonds		0
Corporate commercial paper	0	0
Bank deposits	0	0
Repurchase agreement	0	0
Municipal bonds	0	0
Total assets measured at fair value	0	0
Convertible Notes	0
Total
Cash Equivalents and Short-Term Investments:
US government treasuries and agencies securities	62,434	135,945
Money market funds	70,960	55,578
Asset-backed securities	14,501	31,830
Corporate bonds	108,314	245,675
International government bonds		1,006
Corporate commercial paper	3,483	4,999
Bank deposits	13,595	16,915
Repurchase agreement	129	191
Municipal bonds	900	6,044
Total assets measured at fair value	274,316	$ 498,183
Convertible Notes	$ (284,280)

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Investments (Available-for-Sale) (Details) - USD ($) $ in Thousands	Jan. 03, 2016	Mar. 29, 2015
U.S. government treasuries and agencies securities
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 62,583	$ 135,570
Gross Unrealized Gains	0	398
Gross Unrealized Losses	(149)	(23)
Estimated Fair Value	(62,434)	(135,945)
Money market funds
Schedule of Available-for-sale Securities [Line Items]
Cost	70,960	55,578
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	(70,960)	(55,578)
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Cost	14,533	31,830
Gross Unrealized Gains	0	9
Gross Unrealized Losses	(32)	(9)
Estimated Fair Value	(14,501)	(31,830)
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Cost	108,682	245,229
Gross Unrealized Gains	18	567
Gross Unrealized Losses	(386)	(121)
Estimated Fair Value	(108,314)	(245,675)
International government bonds
Schedule of Available-for-sale Securities [Line Items]
Cost	0	1,010
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(4)
Estimated Fair Value	0	(1,006)
Corporate commercial paper
Schedule of Available-for-sale Securities [Line Items]
Cost	3,483	4,999
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	(3,483)	(4,999)
Bank deposits
Schedule of Available-for-sale Securities [Line Items]
Cost	13,595	16,915
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	(13,595)	(16,915)
Repurchase agreements
Schedule of Available-for-sale Securities [Line Items]
Cost	129	191
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	(129)	(191)
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Cost	900	6,001
Gross Unrealized Gains	0	45
Gross Unrealized Losses	0	(2)
Estimated Fair Value	(900)	(6,044)
Total available-for-sale investments
Schedule of Available-for-sale Securities [Line Items]
Cost	274,865	497,323
Gross Unrealized Gains	18	1,019
Gross Unrealized Losses	(567)	(159)
Estimated Fair Value	(274,316)	(498,183)
Less amounts classified as cash equivalents
Schedule of Available-for-sale Securities [Line Items]
Cost	74,996	60,068
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	(74,996)	(60,068)
Short-term investments
Schedule of Available-for-sale Securities [Line Items]
Cost	199,869	437,255
Gross Unrealized Gains	18	1,019
Gross Unrealized Losses	(567)	(159)
Estimated Fair Value	$ (199,320)	$ (438,115)

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Investments (Contractual Maturity) (Details) $ in Thousands	Jan. 03, 2016 USD ($)
Amortized Cost
Due in 1 year or less	$ 103,575
Due in 1-2 years	64,896
Due in 2-5 years	107,386
Total investments in available-for-sale securities	275,857
Estimated Fair Value
Due in 1 year or less	103,569
Due in 1-2 years	64,740
Due in 2-5 years	106,007
Total investments in available-for-sale securities	$ 274,316

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Investments (Unrealized Loss) (Details) - USD ($) $ in Thousands	Jan. 03, 2016	Mar. 29, 2015
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]
Fair Value Less than 12 months	$ 162,512	$ 105,588
Unrealized Loss Less than 12 months	(567)	(159)
Fair Value 12 months or Greater	0	0
Unrealized Loss 12 months or Greater	0	0
Fair Value Total	162,512	105,588
Unrealized Loss Total	(567)	(159)
Corporate bonds
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]
Fair Value Less than 12 months	90,142	67,367
Unrealized Loss Less than 12 months	(386)	(121)
Fair Value 12 months or Greater	0	0
Unrealized Loss 12 months or Greater	0	0
Fair Value Total	90,142	67,367
Unrealized Loss Total	(386)	(121)
Asset-backed securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]
Fair Value Less than 12 months	14,501	17,736
Unrealized Loss Less than 12 months	(32)	(9)
Fair Value 12 months or Greater	0	0
Unrealized Loss 12 months or Greater	0	0
Fair Value Total	14,501	17,736
Unrealized Loss Total	(32)	(9)
U.S. government treasuries and agencies securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]
Fair Value Less than 12 months	56,969	18,478
Unrealized Loss Less than 12 months	(149)	(23)
Fair Value 12 months or Greater	0	0
Unrealized Loss 12 months or Greater	0	0
Fair Value Total	56,969	18,478
Unrealized Loss Total	(149)	(23)
Municipal bonds
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]
Fair Value Less than 12 months	900	1,001
Unrealized Loss Less than 12 months	0	(2)
Fair Value 12 months or Greater	0	0
Unrealized Loss 12 months or Greater	0	0
Fair Value Total	900	1,001
Unrealized Loss Total	0	(2)
International government bonds
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]
Fair Value Less than 12 months	0	1,006
Unrealized Loss Less than 12 months	0	(4)
Fair Value 12 months or Greater	0	0
Unrealized Loss 12 months or Greater	0	0
Fair Value Total	0	1,006
Unrealized Loss Total	$ 0	$ (4)

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Investments (Cost-Method) (Details) - USD ($) $ in Millions	Jan. 03, 2016	Mar. 29, 2015
Schedule of Cost-method Investments [Line Items]
Original cost	$ 6.0	$ 4.0
Convertible Debt Securities
Schedule of Cost-method Investments [Line Items]
Original cost	$ 2.0

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Stock-Based Employee Compensation-Options (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Jan. 03, 2016 USD ($) plan $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity based plans (plans) | plan	2
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Compensation cost not yet recognized	$ 25.9
Compensation cost not yet recognized, period for recognition	1 year 5 months 26 days
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost not yet recognized	$ 2.1
Compensation cost not yet recognized, period for recognition	1 year 1 month 17 days
Options vested and expected to vest (shares) | shares	2.7
Options vested and expected to vest, weighted average exercise price (usd per share) | $ / shares	$ 9.82
Options vested and expecting to vest, weighted average remaining contractual term	3 years 6 months 25 days
Options vested and expected to vest, aggregate intrinsic value	$ 44.0
Options, fully vested, outstanding (shares) | shares	1.7
Options, fully vested, outstanding, weighted average exercise price (usd per share) | $ / shares	$ 7.50
Options, fully vested, weighted average remaining contractual term	2 years 10 months 13 days
Options, fully vested, aggregate intrinsic value	$ 32.7
2004 Equity Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights (percent)	33.33%
2004 Equity Plan | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	7 years
Award vesting period	4 years
Award vesting rights (percent)	25.00%
Minimum Exercise price, percent of fair market value (percent)	100.00%
Minimum vesting period of non-performance based full value awards made under the 2004 Plan	3 years
Minimum vesting period performance based full value awards made under the 2004 Plan	1 year
Maximum percent of shares under the equity plan that may be granted to a participant without vesting provisions (percent)	5.00%
Number of shares available for grant (shares) | shares	8.2

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Stock-Based Employee Compensation-Equity Instruments Other than Options (Narrative) (Details) shares in Thousands, $ in Millions			1 Months Ended		9 Months Ended
	Jun. 15, 2015	Jun. 15, 2014	Jun. 28, 2015 Installment shares	Jun. 29, 2014 Installment shares	Jan. 03, 2016 USD ($) shares	Mar. 29, 2015 shares
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period					3 years
Units Outstanding (shares)					3,695	3,457
Equity instruments other than options, vested and expected to vest, outstanding (shares)					3,100
Equity instruments other than options, vested and expected to vest, weighted average remaining contractual term					1 year 4 months 10 days
Equity instruments other than options, vested and expected to vest, aggregate intrinsic value | $					$ 81.1
Compensation cost not yet recognized | $					$ 25.9
Compensation cost not yet recognized, period for recognition					1 year 5 months 26 days
Granted (shares)					1,640
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units Outstanding (shares)					230	517
Equity instruments other than options, vested and expected to vest, outstanding (shares)					200
Equity instruments other than options, vested and expected to vest, weighted average remaining contractual term					5 months 8 days
Equity instruments other than options, vested and expected to vest, aggregate intrinsic value | $					$ 4.8
Compensation cost not yet recognized | $					$ 4.5
Compensation cost not yet recognized, period for recognition					5 months 8 days
Granted (shares)					73
Market-Based Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			2 years	2 years
Units Outstanding (shares)					800
Equity instruments other than options, vested and expected to vest, outstanding (shares)					600
Equity instruments other than options, vested and expected to vest, weighted average remaining contractual term					1 year 2 months 5 days
Equity instruments other than options, vested and expected to vest, aggregate intrinsic value | $					$ 17.1
Compensation cost not yet recognized | $					$ 7.9
Compensation cost not yet recognized, period for recognition					1 year 2 months 26 days
Granted (shares)			200	500
Number of installments | Installment			2	2
Expected term (in years)	1 year 9 months 18 days	1 year 9 months 18 days
Minimum | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period					1 year
Maximum | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period					3 years
2004 Equity Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights (percent)					33.33%

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Stock-Based Employee Compensation (Expense by Category) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 03, 2016	Dec. 28, 2014	Jan. 03, 2016	Dec. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 9,462	$ 5,898	$ 25,878	$ 16,562
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	666	592	1,993	1,347
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	4,433	2,562	11,608	7,547
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	4,363	2,724	12,309	7,875
Discontinued operations
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 0	$ 20	$ (32)	$ (207)

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Stock-Based Employee Compensation (Stock Option Activity) (Details) - Employee Stock Option shares in Thousands	9 Months Ended
	Jan. 03, 2016 $ / shares shares
Shares
Beginning stock options outstanding (shares) | shares	3,680
Granted (shares) | shares	428
Exercised (shares) | shares	(1,222)
Canceled (shares) | shares	(40)
Ending stock options outstanding (shares) | shares	2,846
Ending stock options exercisable (shares) | shares	1,733
Price
Beginning stock options outstanding (usd per share) | $ / shares	$ 7.71
Granted (usd per share) | $ / shares	21.96
Exercised (usd per share) | $ / shares	6.82
Canceled (usd per share) | $ / shares	6.94
Ending stock options outstanding (usd per share) | $ / shares	10.25
Ending stock options exercisable (usd per share) | $ / shares	$ 7.50

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Stock-Based Employee Compensation (Restricted and Performance-Based Stock Unit Activity) (Details) shares in Thousands	9 Months Ended
	Jan. 03, 2016 $ / shares shares
Restricted Stock Units (RSUs)
Shares
Beginning Balance outstanding (shares) | shares	3,457
Granted (shares) | shares	1,640
Released (shares) | shares	(1,091)
Forfeited (shares) | shares	(311)
Ending Balance outstanding (shares) | shares	3,695
Weighted-average grant date fair value per share
Beginning Balance outstanding (usd per share) | $ / shares	$ 10.58
Granted (usd per share) | $ / shares	21.95
Released (usd per share) | $ / shares	9.76
Forfeited (usd per share) | $ / shares	12.59
Ending Balance outstanding (usd per share) | $ / shares	$ 15.70
Performance Shares
Shares
Beginning Balance outstanding (shares) | shares	517
Granted (shares) | shares	73
Released (shares) | shares	(182)
Forfeited (shares) | shares	(178)
Ending Balance outstanding (shares) | shares	230
Weighted-average grant date fair value per share
Beginning Balance outstanding (usd per share) | $ / shares	$ 8.06
Granted (usd per share) | $ / shares	8.51
Released (usd per share) | $ / shares	8.17
Forfeited (usd per share) | $ / shares	8.47
Ending Balance outstanding (usd per share) | $ / shares	$ 7.80

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Stock-Based Employee Compensation (Monte Carlo Assumptions) (Details) - Market-Based Stock Units - $ / shares	Jun. 15, 2015	Jun. 15, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated fair value (usd per share)	$ 33.08	$ 21.00
Expected volatility (percent)	41.22%	34.60%
Expected term (in years)	1 year 9 months 18 days	1 year 9 months 18 days
Risk-free interest rate (percent)	0.65%	0.38%
Dividend yield (percent)	0.00%	0.00%

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Share-Based Employee Compensation (Employee Stock Purchase Plan) (Details) - ESPP - USD ($)		9 Months Ended
	Sep. 13, 2012	Jan. 03, 2016	Sep. 12, 2012	Jun. 18, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance under the amended plan (shares)	14,000,000.0		9,000,000.0	9,000,000.0
Limit of fair market value any one employee can purchase per year				$ 25,000
Additional shares authorized for future issuance (shares)	5,000,000.0
Number of shares issued (shares)		486,000
Average issuance price (usd per share)		$ 16.85
Number of shares available at January 3, 2016 (shares)		3,893,000

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Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions				1 Months Ended	3 Months Ended	9 Months Ended
	Nov. 05, 2015	Nov. 03, 2015	Nov. 02, 2015	Jan. 31, 2016	Jan. 03, 2016	Jan. 03, 2016	Oct. 29, 2015	Apr. 30, 2015
Class of Stock [Line Items]
Number of shares repurchased (shares)					10.7	14.5
Cost of shares repurchased					$ 267,200,000	$ 344,200,000
Amount available for future purchase					263,700,000	263,700,000
April 2015 Stock Repurchase Program
Class of Stock [Line Items]
Authorized amount								$ 300,000,000
Cost of shares repurchased					7,900,000
October 2015 Stock Repurchase Program
Class of Stock [Line Items]
Additional authorized repurchase amount							$ 300,000,000
Cost of shares repurchased		$ 300,000,000
Accelerated Share Repurchase Program
Class of Stock [Line Items]
Cost of shares repurchased		$ 225,000,000
November 2, 2015 | Accelerated Share Repurchase Program
Class of Stock [Line Items]
Number of shares repurchased (shares)	7.0
Cost of shares repurchased			$ 225,000,000
Accelerated share repurchases, prepayment for settlement					$ 45,000,000	$ 45,000,000
Subsequent event | November 2, 2015 | Accelerated Share Repurchase Program
Class of Stock [Line Items]
Number of shares repurchased (shares)				1.6
Accelerated share repurchases, average price per share (in usd per share)				$ 28.32

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Balance Sheet Detail (Additional Information) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jan. 03, 2016	Mar. 29, 2015
Inventories, net
Raw materials	$ 3,663	$ 4,709
Work-in-process	29,228	18,377
Finished goods	21,894	22,324
Total inventories, net	54,785	45,410
Property, plant and equipment, net
Total property, plant and equipment, gross	319,977	351,789
Less: accumulated depreciation	(246,208)	(286,281)
Total property, plant and equipment, net	73,769	65,508
Other accrued liabilities
Accrued restructuring costs	8,568	10,512
Other	7,797	7,070
Total other accrued liabilities	16,365	17,582
Deferred compensation related liabilities	13,822	13,143
Other	8,271	4,462
Total other long-term liabilities	22,093	17,605
High-Speed Converter Business
Other accrued liabilities
Accrued Severance Costs	4,500	10,200
Land
Property, plant and equipment, net
Total property, plant and equipment, gross	11,469	11,578
Machinery and equipment
Property, plant and equipment, net
Total property, plant and equipment, gross	260,313	292,180
Building and leasehold improvements
Property, plant and equipment, net
Total property, plant and equipment, gross	48,195	$ 48,031
Zentrum Mikroelektronik Dresden AG
Other accrued liabilities
Accrued Severance Costs	$ 1,700

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Deferred Income on Shipments to Distributors (Components) (Details) - USD ($) $ in Thousands	9 Months Ended
	Jan. 03, 2016	Mar. 29, 2015
Deferred Revenue Arrangement [Line Items]
Gross deferred revenue	$ 11,410	$ 19,299
Gross deferred costs	(2,887)	(3,605)
Deferred income on shipments to distributors	$ 8,523	$ 15,694
Minimum
Deferred Revenue Arrangement [Line Items]
Discount from list price billed to the customer (percent)	31.00%
Maximum
Deferred Revenue Arrangement [Line Items]
Discount from list price billed to the customer (percent)	39.00%

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Accumulated Other Comprehensive Income (Loss) (Changes) (Details) $ in Thousands	9 Months Ended
	Jan. 03, 2016 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, March 29, 2015	$ (2,181)
Other comprehensive loss before reclassifications	(3,784)
Amounts reclassified out of accumulated other comprehensive income (loss)	(282)
Net current-period other comprehensive loss	(4,066)
Balance as of January 3, 2016	(6,247)
Cumulative translation adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, March 29, 2015	(3,721)
Other comprehensive loss before reclassifications	(2,044)
Amounts reclassified out of accumulated other comprehensive income (loss)	0
Net current-period other comprehensive loss	(2,044)
Balance as of January 3, 2016	(5,765)
Unrealized gain on available-for-sale investments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, March 29, 2015	860
Other comprehensive loss before reclassifications	(1,740)
Amounts reclassified out of accumulated other comprehensive income (loss)	331
Net current-period other comprehensive loss	(1,409)
Balance as of January 3, 2016	(549)
Pension adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance, March 29, 2015	680
Other comprehensive loss before reclassifications	0
Amounts reclassified out of accumulated other comprehensive income (loss)	(613)
Net current-period other comprehensive loss	(613)
Balance as of January 3, 2016	$ 67

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Goodwill and Intangible Assets, Net (Goodwill by Segment) (Details) $ in Thousands	9 Months Ended
	Jan. 03, 2016 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 135,644
Addition - ZMDI acquisition (see Note 3)	170,089
Goodwill, ending balance	305,733
Communications
Goodwill [Roll Forward]
Goodwill, beginning balance	122,248
Addition - ZMDI acquisition (see Note 3)	0
Goodwill, ending balance	122,248
Computing and Consumer
Goodwill [Roll Forward]
Goodwill, beginning balance	13,396
Addition - ZMDI acquisition (see Note 3)	170,089
Goodwill, ending balance	$ 183,485

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Goodwill and Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Jan. 03, 2016	Sep. 27, 2015	Dec. 28, 2014	Jun. 29, 2014	Jan. 03, 2016	Dec. 28, 2014	Dec. 07, 2015	Mar. 29, 2015
Finite-Lived Intangible Assets [Line Items]
Accumulated goodwill impairment loss	$ 920,300				$ 920,300			$ 922,500
Intangible Assets Purchased	$ 1,500	$ 9,900
Useful life	3 years	6 years 3 months
Amortization of intangible assets	$ 3,200		$ 1,300		$ 5,628	$ 5,572
Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life					1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life					7 years 6 months
High-Speed Converter Business
Finite-Lived Intangible Assets [Line Items]
Long-lived assets impairment			$ 0		$ 0	$ 8,471
Existing Technology, Customer Relationships and Non-compete Agreements | High-Speed Converter Business
Finite-Lived Intangible Assets [Line Items]
Long-lived assets impairment				$ 5,600
Existing Technology | High-Speed Converter Business
Finite-Lived Intangible Assets [Line Items]
Long-lived assets impairment				4,600
Customer relationships | High-Speed Converter Business
Finite-Lived Intangible Assets [Line Items]
Long-lived assets impairment				900
Non-compete agreements | High-Speed Converter Business
Finite-Lived Intangible Assets [Line Items]
Long-lived assets impairment				$ 100
Zentrum Mikroelektronik Dresden AG
Finite-Lived Intangible Assets [Line Items]
Intangible assets							$ 126,200

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Goodwill and Intangible Assets, Net (Intangible Assets) (Details) - USD ($) $ in Thousands	Jan. 03, 2016	Mar. 29, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Assets	$ 474,712	$ 346,626
Accumulated Amortization	(337,223)	(341,091)
Net Assets	137,489	5,535
Existing technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Assets	279,514	211,170
Accumulated Amortization	(201,992)	(206,491)
Net Assets	77,522	4,679
Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Assets	5,211	4,411
Accumulated Amortization	(4,274)	(3,850)
Net Assets	937	561
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Assets	172,787	131,045
Accumulated Amortization	(129,146)	(130,750)
Net Assets	43,641	$ 295
Intellectual property licenses
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Assets	11,400
Accumulated Amortization	(1,324)
Net Assets	10,076
Backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Assets	5,800
Accumulated Amortization	(487)
Net Assets	$ 5,313

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Goodwill and Intangible Assets, Net (Amortization) (Details) $ in Thousands	Jan. 03, 2016 USD ($)
Estimated amortization expense [Abstract]
2016 (Remaining 3 months)	$ 7,150
2017	25,651
2018	19,322
2019	18,868
2020 and thereafter	66,498
Total purchased intangible assets	$ 137,489

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Restructuring (Provision of Charges and Liability) (Details) - Employee Severance - USD ($) $ in Thousands	1 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2015	Jan. 03, 2016	Mar. 29, 2015
Restructuring Reserve
Balance as of March 29, 2015		$ 10,512
Provision		8,910
Payments and other adjustments		(10,854)
Balance as of January 3, 2016		8,568	$ 10,512
Zentrum Mikroelektronik Dresden AG
Restructuring Reserve
Balance as of March 29, 2015		295
Provision	$ 4,500	8,910
Payments and other adjustments		(2,290)
Balance as of January 3, 2016		6,915	295
High-Speed Converter Business
Restructuring Reserve
Balance as of March 29, 2015		10,217
Provision		0	18,300
Payments and other adjustments		(8,564)
Balance as of January 3, 2016		$ 1,653	$ 10,217

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Restructuring (Narrative) (Details) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended		12 Months Ended
	Dec. 31, 2015 USD ($)	Jan. 03, 2016 USD ($) employee	Jun. 28, 2015 USD ($)	Dec. 28, 2014 USD ($)	Jan. 03, 2016 USD ($) employee	Dec. 28, 2014 USD ($)	Mar. 29, 2015 USD ($) employee
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges					$ 8,910
Payments for restructuring actions					10,854
Accrued balance for employee severance costs		$ 8,568			8,568		$ 10,512
Zentrum Mikroelektronik Dresden AG | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 4,500				8,910
Payments for restructuring actions					2,290
Accrued balance for employee severance costs		6,915			6,915		295
High-Speed Converter Business | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges					0		$ 18,300
Number of positions eliminated (employees) | employee							53
Payments for restructuring actions					8,564
Accrued balance for employee severance costs		1,653			1,653		$ 10,217
Other Restructuring Plan - 2016 Charge | Employee Severance
Restructuring Cost and Reserve [Line Items]
Payments for restructuring actions					2,300
Accrued balance for employee severance costs		2,400			2,400
Other Restructuring Plan - 2015 Charge | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 1,500			$ 4,400		$ 1,100
Number of positions eliminated (employees) | employee		2			37		28
Payments for restructuring actions			$ 300				$ 800
High-Speed Converter Business
Restructuring Cost and Reserve [Line Items]
Restructuring charges				$ 11,930	$ 0	$ 18,705

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Commitments and Contingencies (Narrative) (Details) $ in Millions	1 Months Ended		9 Months Ended
	Sep. 30, 2012 defendant	Jan. 31, 2012 defendant	Jan. 03, 2016 USD ($)	Mar. 29, 2015 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Standard warranty period			1 year
Extended warranty period			2 years
Total warranty accrual | $			$ 0.3	$ 0.3
Maxim I Properties Litigation | Environmental Violation
Loss Contingencies [Line Items]
Number of defendants (more than)		30
Generator of Hazardous Waste Litigation | Environmental Violation
Loss Contingencies [Line Items]
Number of defendants (more than)	50

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Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Jan. 03, 2016	Dec. 28, 2014	Mar. 29, 2015
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Cost recognized for matching contributions	$ 1.9	$ 1.3
United States Postretirement Benefit Plan of US Entity
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Participant balances percent vested (percent)	100.00%
Deferred compensation plan obligations	$ 13.8		$ 13.1
Deferred compensation plan assets	14.5		16.5
United States Postretirement Benefit Plan of US Entity | Fox Enterprises
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Deferred compensation plan assets	0.8		0.8
Deferred compensation liability	1.8		1.7
International Employee Benefit Plan
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Deferred compensation liability	$ 0.8		$ 1.0

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Convertible Senior Notes, Warrants, and Hedges (Offering) (Details)			3 Months Ended	9 Months Ended
	Nov. 04, 2015 USD ($) trading_day $ / shares	Nov. 03, 2015 USD ($)	Jan. 03, 2016 USD ($)	Jan. 03, 2016 USD ($)	Oct. 29, 2015 USD ($)
Debt Instrument [Line Items]
Costs of Bond Hedges offset by proceeds from Warrant Transactions		$ 37,400,000
Cost of shares repurchased			$ 267,200,000	$ 344,200,000
Conversion ratio on convertible debt	0.0298920
Convertible debt | 0.875% Convertible Senior Notes Due 2022
Debt Instrument [Line Items]
Principal amount of debt		48,800,000			$ 325,000,000
Interest rate			0.875%	0.875%	0.875%
Convertible Notes, net		363,445,000
Number of trading days threshold to trigger option to convert convertible debt | trading_day	20
Number of consecutive trading days threshold to trigger option to convert convertible debt	30 days
Threshold percentage of stock price trigger to convert convertible debt	130.00%
Number of business days threshold to trigger option to convert convertible debt	5
Number of consecutive days in measurement period to trigger option to convert convertible debt	5 days
Threshold percentage of product of sale of price of common stock and conversion rate to trigger to convert convertible debt (less than)	98.00%
Stock price trigger to convert convertible debt (in dollars per share) | $ / shares	$ 33.45
Convertible debt holder required repurchase, principal amount increments	$ 1,000
Convertible debt holder required repurchase, percent of principal	100.00%
Convertible debt holders in default, percent of principal amount	25.00%
Convertible debt in default, percent holders to declare due and payable	100.00%
Convertible debt in bankruptcy, insolvency, and reorganization, percent due and payable	100.00%
Fair value, discount rate				5.50%
Interest rate	5.50%
Liability component			$ 274,400,000	$ 274,400,000
Net carrying amount		96,578,000	$ 99,300,000	$ 99,300,000
October 2015 Stock Repurchase Program
Debt Instrument [Line Items]
Cost of shares repurchased		300,000,000
Privately Negotiated Repurchases With Convertible Notes Buyer
Debt Instrument [Line Items]
Cost of shares repurchased		75,000,000
Accelerated Share Repurchase Program
Debt Instrument [Line Items]
Cost of shares repurchased		$ 225,000,000

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Convertible Senior Notes, Warrants, and Hedges (Components) (Details) - USD ($) $ in Thousands		2 Months Ended	3 Months Ended
	Nov. 03, 2015	Jan. 03, 2016	Jan. 03, 2016	Oct. 29, 2015	Mar. 29, 2015
Liability component
Net carrying amount		$ 269,031	$ 269,031		$ 0
Convertible debt | 0.875% Convertible Senior Notes Due 2022
Liability component
Convertible Notes, Liability component, Principal	$ 274,435
Less: Issuance cost	(7,568)
Net carrying amount		269,031	269,031	$ 266,867
Equity component
Allocated amount	99,316
Less: Issuance cost	(2,738)
Net carrying amount	96,578	99,300	99,300
Convertible Notes, net	$ 363,445
Contractual interest expense			545
Amortization of debt issuance costs		180	180
Amortization of debt discount		$ 1,984	1,984
Total Interest Expense			$ 2,709

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Convertible Senior Notes, Warrants, and Hedges (Net Carrying Amount Rollforward) (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended
	Jan. 03, 2016	Jan. 03, 2016
Convertible Debt Carrying Amount [Roll Forward]
Net carrying amount, end of period	$ 269,031	$ 269,031
Convertible debt | 0.875% Convertible Senior Notes Due 2022
Convertible Debt Carrying Amount [Roll Forward]
Net carrying amount at issuance date	266,867
Amortization of debt issuance costs	180	180
Amortization of debt discount	1,984	1,984
Net carrying amount, end of period	$ 269,031	$ 269,031

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Convertible Senior Notes, Warrants, and Hedges (Hedge and Warrant Transactions) (Details) $ / shares in Units, $ in Thousands			9 Months Ended
	Nov. 03, 2015 USD ($) $ / option	Oct. 29, 2015 USD ($)	Jan. 03, 2016 USD ($) $ / shares	Dec. 28, 2014 USD ($)
Derivative [Line Items]
Proceeds from issuance of warrants			$ 56,847	$ 0
JPMorgan Chase Bank, National Association | Initial Bond Hedge
Derivative [Line Items]
Payments for hedge		$ 81,900	94,200
Bond hedge strike price (in usd per share) | $ / option	33.45
JPMorgan Chase Bank, National Association | Initial Warrant Transaction
Derivative [Line Items]
Proceeds from issuance of warrants	$ 7,400	$ 49,400	$ 56,800
Initial strike price of warrants (in dollars per share) | $ / shares			$ 48.66
JPMorgan Chase Bank, National Association | Additional Bond Hedge
Derivative [Line Items]
Payments for hedge	$ 12,300

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Apr. 04, 2011	Jan. 03, 2016	Dec. 28, 2014	Jan. 03, 2016	Dec. 28, 2014
Income Tax Disclosure [Abstract]
Income tax expense (benefit)		$ (3,922)	$ 91	$ (2,876)	$ 840
Income tax holiday, length (in years)	10 years

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Segment Information (Revenues) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 03, 2016	Dec. 28, 2014	Jan. 03, 2016	Dec. 28, 2014
Segment Reporting Information [Line Items]
Revenues	$ 177,610	$ 151,160	$ 508,015	$ 414,555
APAC
Segment Reporting Information [Line Items]
Revenues	131,155	111,437	380,101	283,293
Americas
Segment Reporting Information [Line Items]
Revenues	18,779	15,869	57,474	52,631
Japan
Segment Reporting Information [Line Items]
Revenues	9,011	9,326	25,756	30,015
Europe
Segment Reporting Information [Line Items]
Revenues	18,665	14,528	44,684	48,616
United States
Segment Reporting Information [Line Items]
Revenues	18,000	14,600	54,300	47,100
Communications
Segment Reporting Information [Line Items]
Revenues	85,502	79,288	222,688	240,046
Computing, Consumer and Industrial
Segment Reporting Information [Line Items]
Revenues	$ 92,108	$ 71,872	$ 285,327	$ 174,509

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Segment Information (Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 03, 2016	Dec. 28, 2014	Jan. 03, 2016	Dec. 28, 2014
Segment Reporting Information [Line Items]
Income from continuing operations, before income taxes	$ 28,623	$ 32,932	$ 110,812	$ 75,038
Unallocated expenses
Segment Reporting Information [Line Items]
Amortization of intangible assets	(2,732)	(1,347)	(4,315)	(5,572)
Inventory fair market value adjustment	(890)	0	(890)	0
Assets impairment and recoveries	0	0	(119)	(2,703)
Stock-based compensation expense	(9,462)	(5,875)	(25,878)	(16,562)
Severance, retention and facility closure costs	(6,092)	(338)	(9,060)	(1,250)
Acquisition-related costs and other	(2,649)	0	(2,649)	0
Deferred compensation plan expense (income), net	(3)	125	0	125
Proceeds from life insurance policies	0	25	0	8
Interest income (expense) and other, net	(2,035)	954	1,201	1,778
Communications | Operating Segments
Segment Reporting Information [Line Items]
Income from continuing operations, before income taxes	35,238	29,315	85,588	88,864
Computing, Consumer and Industrial | Operating Segments
Segment Reporting Information [Line Items]
Income from continuing operations, before income taxes	$ 17,248	$ 10,073	$ 66,934	$ 10,350

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Segment Information (Narrative) (Details) - Customer Concentration Risk - customer	3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 03, 2016	Dec. 28, 2014	Jan. 03, 2016	Dec. 28, 2014	Mar. 29, 2015
Revenue
Revenue, Major Customer [Line Items]
Number of significant customers	3	1	3	1
Revenue | Uniquest
Revenue, Major Customer [Line Items]
Concentration risk (percentage)	14.00%	17.00%	17.00%	13.00%
Revenue | Avnet
Revenue, Major Customer [Line Items]
Concentration risk (percentage)	13.00%		13.00%
Revenue | SK Hynix
Revenue, Major Customer [Line Items]
Concentration risk (percentage)	13.00%		13.00%
Accounts Receivable
Revenue, Major Customer [Line Items]
Number of significant customers			3		2
Accounts Receivable | Significant Distributor 1
Revenue, Major Customer [Line Items]
Concentration risk (percentage)			18.00%		10.00%
Accounts Receivable | Significant Distributor 2
Revenue, Major Customer [Line Items]
Concentration risk (percentage)			11.00%		11.00%
Accounts Receivable | Significant Distributor 3
Revenue, Major Customer [Line Items]
Concentration risk (percentage)			10.00%

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Segment Information (Property Plant and Equipment) (Details) - USD ($) $ in Thousands	Jan. 03, 2016	Mar. 29, 2015
Segment Reporting Information [Line Items]
Property, plant and equipment, net	$ 73,769	$ 65,508
United States
Segment Reporting Information [Line Items]
Property, plant and equipment, net	37,703	38,879
Malaysia
Segment Reporting Information [Line Items]
Property, plant and equipment, net	20,250	21,244
Germany
Segment Reporting Information [Line Items]
Property, plant and equipment, net	10,681	0
Canada
Segment Reporting Information [Line Items]
Property, plant and equipment, net	3,587	3,997
All other countries
Segment Reporting Information [Line Items]
Property, plant and equipment, net	$ 1,548	$ 1,388