QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Zip Code) | ||||||||
(Address of principal executive offices) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
☒ | Smaller reporting company | |||||||||||||
Emerging growth company |
Page | ||||||||
September 25, 2020 (Unaudited) | March 27, 2020 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Trade accounts receivable, net of allowances for doubtful accounts of $ | |||||||||||
Trade and other accounts receivable due from related party | |||||||||||
Accounts receivable - other | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Deferred income tax assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Related party note receivable | |||||||||||
Equity investment in related party | |||||||||||
Other assets, net | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities, Non-Controlling Interest and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Trade accounts payable | $ | $ | |||||||||
Amounts due to related party | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Current portion of related party debt | |||||||||||
Bank lines-of-credit | |||||||||||
Total current liabilities | |||||||||||
Related party notes payable, less current portion | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 16) | |||||||||||
Stockholders' Equity: | |||||||||||
Common stock: | |||||||||||
Class A, $ | |||||||||||
Class L, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Equity attributable to Allegro MicroSystems, Inc. | |||||||||||
Non-controlling interests | |||||||||||
Total stockholders' equity | |||||||||||
Total liabilities, non-controlling interest and stockholders' equity | $ | $ |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Net sales to related party | |||||||||||||||||||||||
Total net sales | |||||||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income (expense), net | ( | ( | |||||||||||||||||||||
Foreign currency transaction (loss) gain | ( | ( | |||||||||||||||||||||
Income in earnings of equity investment | |||||||||||||||||||||||
Other, net | ( | ( | |||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax provision | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Net income attributable to non-controlling interests | |||||||||||||||||||||||
Net income attributable to Allegro MicroSystems, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Net income attributable to Allegro MicroSystems, Inc. per share: | |||||||||||||||||||||||
Basic and diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic and diluted |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
Net actuarial loss amortization of net transition obligation and prior service costs related to defined benefit plans, net of tax | ( | ||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
Comprehensive (expense) income attributable to non-controlling interest | ( | ( | ( | ||||||||||||||||||||
Comprehensive income attributable to Allegro MicroSystems, Inc. | $ | $ | $ | $ |
Common Stock, Class A | Common Stock, Class L | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 26, 2020 | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Capitalization changes related to organizational structure of affiliates and direct and indirect interests in subsidiaries | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 25, 2020 | $ | $ | $ | $ | $ | ( | $ | $ |
Common Stock, Class A | Common Stock, Class L | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 28, 2019 | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 27, 2019 | $ | $ | $ | $ | $ | ( | $ | $ |
Common Stock, Class A | Common Stock, Class L | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 27, 2020 | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class L shares, net of forfeitures | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Capitalization changes related to organizational structure of affiliates and direct and indirect interests in subsidiaries | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Reclassification of certain class L shares | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss and amortization of net transition obligation and prior service costs related to defined benefit plans, net of tax | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 25, 2020 | $ | $ | $ | $ | $ | ( | $ | $ |
Common Stock, Class A | Common Stock, Class L | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 29, 2019 | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 27, 2019 | $ | $ | $ | $ | $ | ( | $ | $ |
Six-Month Period Ended | |||||||||||
September 25, 2020 | September 27, 2019 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income taxes | ( | ||||||||||
Stock-based compensation | |||||||||||
Loss on disposal of assets | |||||||||||
Provisions for inventory and bad debt | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade accounts receivable | |||||||||||
Accounts receivable - other | ( | ||||||||||
Inventories | ( | ||||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Trade accounts payable | ( | ||||||||||
Due to/from related parties | ( | ||||||||||
Accrued expenses and other current and long-term liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Acquisition of business, net of cash acquired | ( | ||||||||||
Proceeds from sales of property, plant and equipment | |||||||||||
Contribution of cash balances due to divestiture of subsidiary | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Related party note receivable | |||||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on Cash and cash equivalents and Restricted cash | ( | ||||||||||
Net (decrease) increase in Cash and cash equivalents and Restricted cash | ( | ||||||||||
Cash and cash equivalents and Restricted cash at beginning of period | |||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD: | $ | $ | |||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||||||
Cash and cash equivalents at beginning of period | $ | $ | |||||||||
Restricted cash at beginning of period | |||||||||||
Cash and cash equivalents and Restricted cash at beginning of period | $ | $ | |||||||||
Cash and cash equivalents at end of period | |||||||||||
Restricted cash at end of period | |||||||||||
Cash and cash equivalents and Restricted cash at end of period | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Non-cash transactions: | |||||||||||
Changes in Trade accounts payable related to Property, plant and equipment, net | $ | ( | $ | ( | |||||||
Loans to cover purchase of common stock under employee stock plan | $ | $ | |||||||||
Deconsolidation related to Divestiture Transactions (Note 1) | $ | $ |
March 28, 2020 | ||||||||
Cash and cash equivalents | $ | ( | ||||||
Restricted cash | ( | |||||||
Trade accounts receivable, net of allowances | ||||||||
Accounts receivable – other | ( | |||||||
Inventories | ( | |||||||
Prepaid expenses and other current assets | ( | |||||||
Property, plant and equipment, net | ( | |||||||
Related party note receivable | ||||||||
Equity investment in related party | ||||||||
Other assets, net | ||||||||
Trade accounts payable | ||||||||
Accrued expenses and other current liabilities | ||||||||
Current portion of related party debt | ||||||||
Bank lines-of-credit | ||||||||
Related party notes payable, less current portion | ||||||||
Other long-term liabilities | ( | |||||||
Additional paid-in capital |
Estimated fair value of consideration: | |||||
Base purchase price | $ | ||||
Contingent Consideration | |||||
Total estimated fair value of consideration | $ | ||||
Estimated fair value of assets acquired and liabilities assumed: | |||||
Net working capital | $ | ||||
Property and equipment | |||||
Finite-life intangible assets | |||||
Indefinite-life intangible assets | |||||
Deferred tax liability | ( | ||||
Goodwill | |||||
Allocated purchase price | $ |
Useful Life | Fair value | ||||||||||
Completed technology | $ | ||||||||||
Customer relationships | |||||||||||
Trademarks | |||||||||||
$ |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||
Core end market: | |||||||||||||||||||||||
Automotive | $ | $ | $ | $ | |||||||||||||||||||
Industrial | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Other applications: | |||||||||||||||||||||||
Wafer foundry products | |||||||||||||||||||||||
Distribution of Sanken products | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||
Power integrated circuits (“PIC”) | $ | $ | $ | $ | |||||||||||||||||||
Magnetic sensors (“MS”) | |||||||||||||||||||||||
Photonics | |||||||||||||||||||||||
Wafer foundry products | |||||||||||||||||||||||
Distribution of Sanken products | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||
Americas: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Other Americas | |||||||||||||||||||||||
EMEA: | |||||||||||||||||||||||
Europe | |||||||||||||||||||||||
Asia: | |||||||||||||||||||||||
Japan | |||||||||||||||||||||||
Greater China | |||||||||||||||||||||||
South Korea | |||||||||||||||||||||||
Other Asia | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
Fair Value Measurement at September 25, 2020 Using: | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market fund deposits | $ | $ | $ | $ | |||||||||||||||||||
Restricted cash: | |||||||||||||||||||||||
Money market fund deposits | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Other long-term liabilities: | |||||||||||||||||||||||
Contingent consideration | $ | $ | $ | $ | |||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
Fair Value Measurement at March 27, 2020 Using: | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market fund deposits | $ | $ | $ | $ | |||||||||||||||||||
Restricted cash: | |||||||||||||||||||||||
Money market fund deposits | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ |
Level 3 Contingent Consideration | |||||
Balance at March 27, 2020 | $ | ||||
Additions during the year | |||||
Balance at September 25, 2020 | $ |
September 25, 2020 | March 27, 2020 | ||||||||||
Trade accounts receivable | $ | $ | |||||||||
Less: | |||||||||||
Allowance for doubtful accounts | ( | ( | |||||||||
Returns and sales allowances | ( | ( | |||||||||
Related party trade accounts receivable | ( | ( | |||||||||
Total | $ | $ |
Description | Allowance for Doubtful Accounts | Returns and Sales Allowances | Total | |||||||||||||||||
Balance at March 27, 2020 | $ | $ | $ | |||||||||||||||||
Charged to costs and expenses or revenue | ||||||||||||||||||||
Write-offs, net of recoveries | ( | ( | ||||||||||||||||||
Balance at September 25, 2020 | $ | $ | $ |
Description | Allowance for Doubtful Accounts | Returns and Sales Allowances | Total | |||||||||||||||||
Balance at March 29, 2019 | $ | $ | $ | |||||||||||||||||
Charged to costs and expenses or revenue | ( | |||||||||||||||||||
Write-offs, net of recoveries | ( | ( | ||||||||||||||||||
Balance at September 27, 2019 | $ | $ | $ |
September 25, 2020 | March 27, 2020 | ||||||||||
Raw materials and supplies | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Finished goods – consigned | |||||||||||
Total | $ | $ |
September 25, 2020 | March 27, 2020 | ||||||||||
Land | $ | $ | |||||||||
Buildings, building improvements and leasehold improvements | |||||||||||
Machinery and equipment | |||||||||||
Office equipment | |||||||||||
Construction in progress | |||||||||||
Total | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Total | $ | $ |
September 25, 2020 | March 27, 2020 | ||||||||||
United States | $ | $ | |||||||||
Philippines | |||||||||||
Thailand | |||||||||||
Other | |||||||||||
Total | $ | $ |
Total | |||||
Balance at March 27, 2020 | $ | ||||
Goodwill arising from acquisition | |||||
Currency translation | |||||
Balance at September 25, 2020 | $ |
September 25, 2020 | ||||||||||||||||||||||||||
Description | Gross | Accumulated Amortization | Net Carrying Amount | Weighted- Average Lives | ||||||||||||||||||||||
Patents | $ | $ | $ | |||||||||||||||||||||||
Customer relationships | ||||||||||||||||||||||||||
Process technology | ||||||||||||||||||||||||||
Trademarks | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total | $ | $ | $ |
March 27, 2020 | ||||||||||||||||||||||||||
Description | Gross | Accumulated Amortization | Net Carrying Amount | Weighted- Average Lives | ||||||||||||||||||||||
Patents | $ | $ | $ | |||||||||||||||||||||||
Customer relationships | ||||||||||||||||||||||||||
Process technology | ||||||||||||||||||||||||||
Trademarks | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total | $ | $ | $ |
Remainder of 2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total | $ |
September 25, 2020 | March 27, 2020 | ||||||||||
VAT receivables long-term, net | $ | $ | |||||||||
Deposits | |||||||||||
Prepaid contracts long-term | |||||||||||
Deferred offering costs | |||||||||||
Other | |||||||||||
Total | $ | $ |
September 25, 2020 | March 27, 2020 | ||||||||||
Accrued management incentive (LTIP) | $ | $ | |||||||||
Accrued management incentive (non-LTIP) | |||||||||||
Accrued salaries and wages | |||||||||||
Base acquisition purchase price due | |||||||||||
Accrued vacation | |||||||||||
Accrued severance | |||||||||||
Accrued professional fees | |||||||||||
Accrued income taxes | |||||||||||
Accrued utilities | |||||||||||
Other current liabilities | |||||||||||
Total | $ | $ |
Description | Current Liabilities | Long-Term Liabilities | |||||||||
Balance at March 27, 2020 | $ | $ | |||||||||
Reclassification | ( | ||||||||||
Payments | ( | ||||||||||
Removal due to divestiture | ( | ( | |||||||||
Accruals | ( | ( | |||||||||
Balance at September 25, 2020 | $ | $ |
September 25, 2020 | March 27, 2020 | ||||||||||
Accrued management incentive (LTIP) | $ | $ | |||||||||
Accrued management incentive (non-LTIP) | |||||||||||
Accrued retirement | |||||||||||
Accrued contingent consideration | |||||||||||
Provision for uncertain tax positions (net) | |||||||||||
Other | |||||||||||
Total | $ | $ |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Net acquired/transferred obligation | |||||||||||||||||||||||
Amortization of net transition asset | ( | ( | |||||||||||||||||||||
Amortization of prior service cost | |||||||||||||||||||||||
Actuarial loss | |||||||||||||||||||||||
Net periodic pension expense | $ | $ | $ | $ |
Fair Value at September 25, 2020 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets of non-U.S. defined benefit plan: | |||||||||||||||||||||||
Government securities | $ | $ | $ | $ | |||||||||||||||||||
Unit investment trust fund | |||||||||||||||||||||||
Loans | |||||||||||||||||||||||
Bonds | |||||||||||||||||||||||
Stocks and other investments | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value at March 27, 2020 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets of non-U.S. defined benefit plan: | |||||||||||||||||||||||
Government securities | $ | $ | $ | $ | |||||||||||||||||||
Unit investment trust fund | |||||||||||||||||||||||
Loans | |||||||||||||||||||||||
Bonds | |||||||||||||||||||||||
Stocks and other investments | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Level 3 Non-U.S. Defined Plan Assets | |||||||||||
Loans | Stocks | ||||||||||
Balance at March 27, 2020 | $ | $ | |||||||||
Additions during the year | |||||||||||
Redemptions during the year | ( | ||||||||||
Revaluation of equity securities | |||||||||||
Change in foreign currency exchange rates | |||||||||||
Balance at September 25, 2020 | $ | $ |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||
Net income attributable to Allegro MicroSystems, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Net income attributable to common stockholders | |||||||||||||||||||||||
Weighted average basic and diluted common shares | |||||||||||||||||||||||
Basic and diluted net income attributable to Allegro MicroSystems, Inc. per share | $ | $ | $ | $ | |||||||||||||||||||
Basic and diluted net income attributable to common stockholders per share | $ | $ | $ | $ |
Three-Month Period Ended September 25, 2020 | Six-Month Period Ended September 25, 2020 | ||||||||||
Numerator: | |||||||||||
Net income, as reported | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted-average shares used to compute net income per share attributable to common shareholders, basic | |||||||||||
Pro forma adjustments to reflect the Common Stock Conversion | |||||||||||
Pro forma adjustments to reflect the Company’s buy-back of shares to cover withholding taxes | ( | ( | |||||||||
Total | |||||||||||
Pro forma net income per share attributable to common shareholders | $ | $ |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||
Cost of sales | $ | $ | $ | $ | |||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Total stock-based compensation | $ | $ | $ | $ |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||
Operating taxes | $ | $ | $ | $ | |||||||||||||||||||
Discrete tax items | |||||||||||||||||||||||
Provision for income taxes | $ | $ | $ | $ | |||||||||||||||||||
Annual operating tax rate | % | % | % | % | |||||||||||||||||||
Effective tax rate | % | % | % | % |
Shares of Common Stock | Shares of Unvested Restricted Common Stock | Total Shares of Common Stock | |||||||||||||||
Class A common stock | |||||||||||||||||
Class L common stock | |||||||||||||||||
Total |
Three-Month Period Ended | Six-Month Period Ended | |||||||||||||||||||||||||||||||
September 25, 2020 | June 26, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Reconciliation of Gross Profit | ||||||||||||||||||||||||||||||||
GAAP Gross Profit | $ | 61,770 | $ | 55,701 | $ | 68,606 | $ | 117,471 | $ | 127,993 | ||||||||||||||||||||||
PSL and Sanken distribution agreement | 2,815 | 3,383 | — | 6,198 | — | |||||||||||||||||||||||||||
Stock-based compensation | 53 | 97 | 45 | 150 | 90 | |||||||||||||||||||||||||||
AMTC facility consolidation one-time costs | 408 | 544 | — | 952 | — | |||||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 105 | — | — | 105 | — | |||||||||||||||||||||||||||
COVID-19 related expenses | 73 | — | — | 73 | — | |||||||||||||||||||||||||||
Total | $ | 3,454 | $ | 4,024 | $ | 45 | $ | 7,478 | $ | 90 | ||||||||||||||||||||||
Non-GAAP Gross Profit* | $ | 65,224 | $ | 59,725 | $ | 68,651 | $ | 124,949 | $ | 128,083 | ||||||||||||||||||||||
Non-GAAP Gross Margin* | 47.7 | % | 51.9 | % | 42.1 | % | 49.7 | % | 40.6 | % | ||||||||||||||||||||||
Three-Month Period Ended | Six-Month Period Ended | |||||||||||||||||||||||||||||||
September 25, 2020 | June 26, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Reconciliation of Operating Expenses | ||||||||||||||||||||||||||||||||
GAAP Operating Expenses | $ | 49,368 | $ | 51,169 | $ | 53,545 | $ | 100,537 | $ | 105,201 | ||||||||||||||||||||||
Stock-based compensation | 527 | 348 | 329 | 875 | 658 | |||||||||||||||||||||||||||
AMTC facility consolidation one-time costs | 1,358 | 1,161 | — | 2,519 | — | |||||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 9 | — | — | 9 | — | |||||||||||||||||||||||||||
COVID-19 related expenses | 398 | 4,000 | — | 4,398 | — | |||||||||||||||||||||||||||
Transaction fees | 1,871 | 117 | 1,081 | 1,988 | 1,447 | |||||||||||||||||||||||||||
Severance | — | 337 | 2,698 | 337 | 2,698 | |||||||||||||||||||||||||||
Total | $ | 4,163 | $ | 5,963 | $ | 4,108 | $ | 10,126 | $ | 4,803 | ||||||||||||||||||||||
Non-GAAP Operating Expenses* | $ | 45,205 | $ | 45,206 | $ | 49,437 | $ | 90,411 | $ | 100,398 | ||||||||||||||||||||||
Three-Month Period Ended | Six-Month Period Ended | |||||||||||||||||||||||||||||||
September 25, 2020 | June 26, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Reconciliation of Operating Income | ||||||||||||||||||||||||||||||||
GAAP Operating Income | $ | 12,402 | $ | 4,532 | $ | 15,061 | $ | 16,934 | $ | 22,792 | ||||||||||||||||||||||
PSL and Sanken distribution agreement | 2,815 | 3,383 | — | 6,198 | — | |||||||||||||||||||||||||||
Stock-based compensation | 580 | 445 | 374 | 1,025 | 748 | |||||||||||||||||||||||||||
AMTC facility consolidation one-time costs | 1,766 | 1,705 | — | 3,471 | — | |||||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 114 | — | — | 114 | — | |||||||||||||||||||||||||||
COVID-19 related expenses | 471 | 4,000 | — | 4,471 | — | |||||||||||||||||||||||||||
Transaction fees | 1,871 | 117 | 1,081 | 1,988 | 1,447 | |||||||||||||||||||||||||||
Severance | — | 337 | 2,698 | 337 | 2,698 | |||||||||||||||||||||||||||
Total | $ | 7,617 | $ | 9,987 | $ | 4,153 | $ | 17,604 | $ | 4,893 | ||||||||||||||||||||||
Non-GAAP Operating Income* | $ | 20,019 | $ | 14,519 | $ | 19,214 | $ | 34,538 | $ | 27,685 | ||||||||||||||||||||||
Non-GAAP Operating Margin* (% of net sales) | 14.6 | % | 12.6 | % | 11.8 | % | 13.7 | % | 8.8 | % | ||||||||||||||||||||||
Three-Month Period Ended | Six-Month Period Ended | |||||||||||||||||||||||||||||||
September 25, 2020 | June 26, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
GAAP Net Income | $ | 9,618 | $ | 4,854 | $ | 11,583 | $ | 14,472 | $ | 14,818 | ||||||||||||||||||||||
Interest (income) expense | (350) | (313) | 65 | (663) | 70 | |||||||||||||||||||||||||||
Tax provision | 2,082 | 528 | 2,833 | 2,610 | 10,168 | |||||||||||||||||||||||||||
Depreciation & amortization | 12,487 | 11,539 | 15,988 | 24,026 | 31,477 | |||||||||||||||||||||||||||
EBITDA | $ | 23,837 | $ | 16,608 | $ | 30,469 | $ | 40,445 | $ | 56,533 | ||||||||||||||||||||||
Adjustments to EBITDA | ||||||||||||||||||||||||||||||||
Non-core loss (gain) on sale of equip. | 331 | (38) | 604 | 293 | 559 | |||||||||||||||||||||||||||
Foreign currency translation loss (gain) | 1,318 | (132) | (609) | 1,186 | (3,360) | |||||||||||||||||||||||||||
Income in earnings of equity investment | (246) | (212) | — | (458) | — | |||||||||||||||||||||||||||
Stock-based compensation | 580 | 445 | 374 | 1,025 | 748 | |||||||||||||||||||||||||||
AMTC facility consolidation one-time costs | 1,766 | 1,705 | — | 3,471 | — | |||||||||||||||||||||||||||
COVID-19 related costs | 471 | 4,000 | — | 4,471 | — | |||||||||||||||||||||||||||
Transaction fees | 1,871 | 117 | 1,081 | 1,988 | 1,447 | |||||||||||||||||||||||||||
Severance | — | 337 | 2,698 | 337 | 2,698 | |||||||||||||||||||||||||||
Inventory cost amortization | 1,115 | 1,583 | — | 2,698 | — | |||||||||||||||||||||||||||
Foundry service payment | 1,700 | 1,800 | — | 3,500 | — | |||||||||||||||||||||||||||
Adjusted EBITDA* | $ | 32,743 | $ | 26,213 | $ | 34,617 | $ | 58,956 | $ | 58,625 | ||||||||||||||||||||||
Adjusted EBITDA Margin* | 24.0 | % | 22.8 | % | 21.2 | % | 23.4 | % | 18.6 | % | ||||||||||||||||||||||
Three-Month Period Ended | Six-Month Period Ended | |||||||||||||||||||||||||||||||
September 25, 2020 | June 26, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Reconciliation of Profit before Tax | ||||||||||||||||||||||||||||||||
GAAP Profit before Tax | $ | 11,700 | $ | 5,382 | $ | 14,416 | $ | 17,082 | $ | 24,986 | ||||||||||||||||||||||
Non-core loss (gain) on sale of equip. | 331 | (38) | 604 | 293 | 559 | |||||||||||||||||||||||||||
Foreign currency transaction loss (gain) | 1,318 | (132) | (609) | 1,186 | (3,360) | |||||||||||||||||||||||||||
Income in earnings of equity investment | (246) | (212) | — | (458) | — | |||||||||||||||||||||||||||
PSL and Sanken distribution agreement | 2,815 | 3,383 | — | 6,198 | — | |||||||||||||||||||||||||||
Stock-based compensation | 580 | 445 | 374 | 1,025 | 748 | |||||||||||||||||||||||||||
AMTC facility consolidation one-time costs | 1,766 | 1,705 | — | 3,471 | — | |||||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 114 | — | — | 114 | — | |||||||||||||||||||||||||||
COVID-19 related expenses | 471 | 4,000 | — | 4,471 | — | |||||||||||||||||||||||||||
Transaction fees | 1,871 | 117 | 1,081 | 1,988 | 1,447 | |||||||||||||||||||||||||||
Severance | — | 337 | 2,698 | 337 | 2,698 | |||||||||||||||||||||||||||
Total | $ | 9,020 | $ | 9,605 | $ | 4,148 | $ | 18,625 | $ | 2,092 | ||||||||||||||||||||||
Non-GAAP Profit before Tax* | $ | 20,720 | $ | 14,987 | $ | 18,564 | $ | 35,707 | $ | 27,078 | ||||||||||||||||||||||
Three-Month Period Ended | Six-Month Period Ended | |||||||||||||||||||||||||||||||
September 25, 2020 | June 26, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Reconciliation of Provision for Income Taxes | ||||||||||||||||||||||||||||||||
GAAP Provision for Income Taxes | $ | 2,082 | $ | 528 | $ | 2,833 | $ | 2,610 | $ | 10,168 | ||||||||||||||||||||||
GAAP effective tax rate | 17.8 | % | 9.8 | % | 19.7 | % | 15.3 | % | 40.7 | % | ||||||||||||||||||||||
Tax effect of adjustments to GAAP results | 859 | 1,808 | 375 | 2,667 | (5,489) | |||||||||||||||||||||||||||
Non-GAAP Provision for Income Taxes * | $ | 2,941 | $ | 2,336 | $ | 3,208 | $ | 5,277 | $ | 4,679 | ||||||||||||||||||||||
Non-GAAP effective tax rate | 14.2 | % | 15.6 | % | 17.3 | % | 14.8 | % | 17.3 | % | ||||||||||||||||||||||
Three-Month Period Ended | Six-Month Period Ended | |||||||||||||||||||||||||||||||
September 25, 2020 | June 26, 2020 | September 27, 2019 | September 25, 2020 | September 27, 2019 | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Reconciliation of Net Income | ||||||||||||||||||||||||||||||||
GAAP Net Income | $ | 9,618 | $ | 4,854 | $ | 11,583 | $ | 14,472 | $ | 14,818 | ||||||||||||||||||||||
Non-core loss (gain) on sale of equip. | 331 | (38) | 604 | 293 | 559 | |||||||||||||||||||||||||||
Foreign currency transaction loss (gain) | 1,318 | (132) | (609) | 1,186 | (3,360) | |||||||||||||||||||||||||||
Income in earnings of equity investment | (246) | (212) | — | (458) | — | |||||||||||||||||||||||||||
PSL and Sanken distribution agreement | 2,815 | 3,383 | — | 6,198 | — | |||||||||||||||||||||||||||
Stock-based compensation | 580 | 445 | 374 | 1,025 | 748 | |||||||||||||||||||||||||||
AMTC facility consolidation one-time costs | 1,766 | 1,705 | — | 3,471 | — | |||||||||||||||||||||||||||
Amortization of acquired-related intangible assets | 114 | — | — | 114 | — | |||||||||||||||||||||||||||
COVID-19 related expenses | 471 | 4,000 | — | 4,471 | — | |||||||||||||||||||||||||||
Transaction fees | 1,871 | 117 | 1,081 | 1,988 | 1,447 | |||||||||||||||||||||||||||
Severance | — | 337 | 2,698 | 337 | 2,698 | |||||||||||||||||||||||||||
Tax effect of adjustments to GAAP results | (859) | (1,808) | (375) | (2,667) | 5,489 | |||||||||||||||||||||||||||
Non-GAAP Net Income* | $ | 17,779 | $ | 12,651 | $ | 15,356 | $ | 30,430 | $ | 22,399 | ||||||||||||||||||||||
Three-Month Period Ended | Change | Change Attributable to Divestiture | Operational Change after Divestiture | ||||||||||||||||||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | $ | % | $ | % | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Total net sales | $ | 136,649 | $ | 163,240 | $ | (26,591) | (16.3) | % | $ | 26,397 | $ | (194) | (0.1 | %) | |||||||||||||||||||||||||||
Cost of goods sold | 74,879 | 94,634 | (19,755) | (20.9) | % | 23,352 | 3,597 | 3.8 | % | ||||||||||||||||||||||||||||||||
Gross profit | 61,770 | 68,606 | (6,836) | (10.0) | % | 3,045 | (3,791) | (5.5 | %) | ||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||
Research and development | 25,130 | 25,952 | (822) | (3.2) | % | 1,024 | 202 | 0.8 | % | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 24,238 | 27,593 | (3,355) | (12.2) | % | 1,973 | (1,382) | (5.0 | %) | ||||||||||||||||||||||||||||||||
Total operating expenses | 49,368 | 53,545 | (4,177) | (7.8) | % | 2,997 | (1,180) | (2.2 | %) | ||||||||||||||||||||||||||||||||
Income from operations | 12,402 | 15,061 | (2,659) | (17.7) | % | 48 | (2,611) | (17.3 | %) | ||||||||||||||||||||||||||||||||
Other (expense) income, net: | |||||||||||||||||||||||||||||||||||||||||
Interest income (expense), net | 350 | (65) | 415 | (638.5) | % | (872) | (457) | 703.1 | % | ||||||||||||||||||||||||||||||||
Foreign currency transaction (loss) gain | (1,318) | 609 | (1,927) | (316.4) | % | (1) | (1,928) | (316.6 | %) | ||||||||||||||||||||||||||||||||
Income in earnings of equity investment | 246 | — | 246 | — | % | — | 246 | 100.0 | % | ||||||||||||||||||||||||||||||||
Other, net | 20 | (1,189) | 1,209 | (101.7) | % | (287) | 922 | (77.5 | %) | ||||||||||||||||||||||||||||||||
Total other (expense) income, net | (702) | (645) | (57) | 8.8 | % | (1,160) | (1,217) | 188.7 | % | ||||||||||||||||||||||||||||||||
Income before provision for income taxes | 11,700 | 14,416 | (2,716) | (18.8) | % | (1,112) | (3,828) | (26.6 | %) | ||||||||||||||||||||||||||||||||
Provision for income taxes | 2,082 | 2,833 | (751) | (26.5) | % | (246) | (997) | (35.2 | %) | ||||||||||||||||||||||||||||||||
Net income | 9,618 | 11,583 | (1,965) | (17.0) | % | (866) | (2,831) | (24.4 | %) | ||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests | 34 | 18 | 16 | 88.9 | % | — | 16 | 88.9 | % | ||||||||||||||||||||||||||||||||
Net income attributable to Allegro MicroSystems, Inc. | $ | 9,584 | $ | 11,565 | $ | (1,981) | (17.1) | % | $ | (866) | $ | (2,847) | (24.6 | %) |
Three-Month Period Ended | |||||||||||
September 25, 2020 | September 27, 2019 | ||||||||||
Total net sales | 100.0 | % | 100.0 | % | |||||||
Cost of goods sold | 54.8 | % | 58.0 | % | |||||||
Gross profit | 45.2 | % | 42.0 | % | |||||||
Operating expenses: | |||||||||||
Research and development | 18.4 | % | 15.9 | % | |||||||
Selling, general and administrative | 17.7 | % | 16.9 | % | |||||||
Total operating expenses | 36.1 | % | 32.8 | % | |||||||
Income from operations | 9.1 | % | 9.2 | % | |||||||
Other (expense) income, net: | |||||||||||
Interest income (expense), net | 0.3 | % | — | % | |||||||
Foreign currency transaction (loss) gain | (1.0) | % | 0.4 | % | |||||||
Income in earnings of equity investment | 0.1 | % | — | % | |||||||
Other, net | — | % | (0.7) | % | |||||||
Total other (expense) income, net | (0.6) | % | (0.3) | % | |||||||
Income before provision for income taxes | 8.5 | % | 8.9 | % | |||||||
Provision for income taxes | 1.5 | % | 1.8 | % | |||||||
Net income | 7.0 | % | 7.1 | % | |||||||
Net income attributable to non-controlling interests | — | % | — | % | |||||||
Net income attributable to Allegro MicroSystems, Inc. | 7.0 | % | 7.1 | % |
Three-Month Period Ended | Change | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | Amount | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Core end markets: | |||||||||||||||||||||||
Automotive | $ | 89,479 | $ | 98,209 | $ | (8,730) | (8.9) | % | |||||||||||||||
Industrial | 21,650 | 18,092 | 3,558 | 19.7 | % | ||||||||||||||||||
Other | 25,520 | 20,542 | 4,978 | 24.2 | % | ||||||||||||||||||
Total core end markets | 136,649 | 136,843 | (194) | (0.1) | % | ||||||||||||||||||
Other applications: | |||||||||||||||||||||||
Wafer foundry products | — | 16,698 | (16,698) | (100.0) | % | ||||||||||||||||||
Distribution of Sanken products | — | 9,699 | (9,699) | (100.0) | % | ||||||||||||||||||
Total net sales | $ | 136,649 | $ | 163,240 | $ | (26,591) | (16.3) | % |
Three-Month Period Ended | Change | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | Amount | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Power integrated circuits (“PIC”) | $ | 50,271 | $ | 45,235 | $ | 5,036 | 11.1 | % | |||||||||||||||
Magnetic sensors (“MS”) | 86,097 | 91,608 | (5,511) | (6.0) | % | ||||||||||||||||||
Photonics | 281 | — | 281 | 100.0 | % | ||||||||||||||||||
Wafer foundry products | — | 16,698 | (16,698) | (100.0) | % | ||||||||||||||||||
Distribution of Sanken products | — | 9,699 | (9,699) | (100.0) | % | ||||||||||||||||||
Total net sales | $ | 136,649 | $ | 163,240 | $ | (26,591) | (16.3) | % | |||||||||||||||
Three-Month Period Ended | Change | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | Amount | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Americas: | |||||||||||||||||||||||
United States | $ | 20,962 | $ | 30,659 | $ | (9,697) | (31.6) | % | |||||||||||||||
Other Americas | 3,249 | 5,200 | (1,951) | (37.5) | % | ||||||||||||||||||
EMEA: | |||||||||||||||||||||||
Europe | 24,374 | 24,140 | 234 | 1.0 | % | ||||||||||||||||||
Asia: | |||||||||||||||||||||||
Japan | 22,511 | 42,472 | (19,961) | (47.0) | % | ||||||||||||||||||
Greater China | 37,935 | 36,696 | 1,239 | 3.4 | % | ||||||||||||||||||
South Korea | 12,515 | 13,950 | (1,435) | (10.3) | % | ||||||||||||||||||
Other Asia | 15,103 | 10,123 | 4,980 | 49.2 | % | ||||||||||||||||||
Total net sales | $ | 136,649 | $ | 163,240 | $ | (26,591) | (16.3) | % |
Six-Month Period Ended | Change | Change Attributable to Divestiture | Operational Change after Divestiture | ||||||||||||||||||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | $ | % | $ | % | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Total net sales | $ | 251,650 | $ | 315,683 | $ | (64,033) | (20.3) | % | $ | 52,010 | $ | (12,023) | (3.8 | %) | |||||||||||||||||||||||||||
Cost of goods sold | 134,179 | 187,690 | (53,511) | (28.5) | % | 46,571 | (6,940) | (3.7 | %) | ||||||||||||||||||||||||||||||||
Gross profit | 117,471 | 127,993 | (10,522) | (8.2) | % | 5,439 | (5,083) | (4.0 | %) | ||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||
Research and development | 49,510 | 52,080 | (2,570) | (4.9) | % | 1,635 | (935) | (1.8 | %) | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 51,027 | 53,121 | (2,094) | (3.9) | % | 3,602 | 1,508 | 2.8 | % | ||||||||||||||||||||||||||||||||
Total operating expenses | 100,537 | 105,201 | (4,664) | (4.4) | % | 5,237 | 573 | 0.5 | % | ||||||||||||||||||||||||||||||||
Income from operations | 16,934 | 22,792 | (5,858) | (25.7) | % | 202 | (5,656) | (24.8 | %) | ||||||||||||||||||||||||||||||||
Other income (expense), net: | |||||||||||||||||||||||||||||||||||||||||
Interest income (expense), net | 663 | (70) | 733 | (1047.1) | % | (1,773) | (1,040) | 1485.7 | % | ||||||||||||||||||||||||||||||||
Foreign currency transaction (loss) gain | (1,186) | 3,360 | (4,546) | (135.3) | % | 2 | (4,544) | (135.2 | %) | ||||||||||||||||||||||||||||||||
Income in earnings of equity investment | 458 | — | 458 | — | % | — | 458 | 100.0 | % | ||||||||||||||||||||||||||||||||
Other, net | 213 | (1,096) | 1,309 | (119.4) | % | (237) | 1,072 | (97.8 | %) | ||||||||||||||||||||||||||||||||
Total other income (expense), net | 148 | 2,194 | (2,046) | (93.3) | % | (2,008) | (4,054) | (184.8 | %) | ||||||||||||||||||||||||||||||||
Income before provision for income taxes | 17,082 | 24,986 | (7,904) | (31.6) | % | (1,806) | (9,710) | (38.9 | %) | ||||||||||||||||||||||||||||||||
Provision for income taxes | 2,610 | 10,168 | (7,558) | (74.3) | % | 5,150 | (2,408) | (23.7 | %) | ||||||||||||||||||||||||||||||||
Net income | 14,472 | 14,818 | (346) | (2.3) | % | (6,956) | (7,302) | (49.3 | %) | ||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests | 68 | 69 | (1) | (1.4) | % | — | (1) | (1.4 | %) | ||||||||||||||||||||||||||||||||
Net income attributable to Allegro MicroSystems, Inc. | $ | 14,404 | $ | 14,749 | $ | (345) | (2.3) | % | $ | (6,956) | $ | (7,301) | (49.5 | %) |
Six-Month Period Ended | |||||||||||
September 25, 2020 | September 27, 2019 | ||||||||||
Total net sales | 100.0 | % | 100.0 | % | |||||||
Cost of goods sold | 53.3 | % | 59.5 | % | |||||||
Gross profit | 46.7 | % | 40.5 | % | |||||||
Operating expenses: | |||||||||||
Research and development | 19.7 | % | 16.5 | % | |||||||
Selling, general and administrative | 20.3 | % | 16.8 | % | |||||||
Total operating expenses | 40.0 | % | 33.3 | % | |||||||
Income from operations | 6.7 | % | 7.2 | % | |||||||
Other income (expense), net: | |||||||||||
Interest expense, net | 0.3 | % | — | % | |||||||
Foreign currency transaction (loss) gain | (0.5) | % | 1.1 | % | |||||||
Income in earnings of equity investment | 0.2 | % | — | % | |||||||
Other, net | 0.1 | % | (0.3) | % | |||||||
Total other income (expense), net | 0.1 | % | 0.8 | % | |||||||
Income before provision for income taxes | 6.8 | % | 8.0 | % | |||||||
Provision for income taxes | 1.1 | % | 3.3 | % | |||||||
Net income | 5.7 | % | 4.7 | % | |||||||
Net income attributable to non-controlling interests | — | % | — | % | |||||||
Net income attributable to Allegro MicroSystems, Inc. | 5.7 | % | 4.7 | % |
Six-Month Period Ended | Change | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | Amount | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Core end markets: | |||||||||||||||||||||||
Automotive | $ | 165,857 | $ | 190,607 | $ | (24,750) | (13.0) | % | |||||||||||||||
Industrial | 42,056 | 34,737 | 7,319 | 21.1 | % | ||||||||||||||||||
Other | 43,737 | 38,329 | 5,408 | 14.1 | % | ||||||||||||||||||
Total core end markets | 251,650 | 263,673 | (12,023) | (4.6) | % | ||||||||||||||||||
Other applications: | |||||||||||||||||||||||
Wafer foundry products | — | 32,988 | (32,988) | (100.0) | % | ||||||||||||||||||
Distribution of Sanken products | — | 19,022 | (19,022) | (100.0) | % | ||||||||||||||||||
Total net sales | $ | 251,650 | $ | 315,683 | $ | (64,033) | (20.3) | % | |||||||||||||||
Six-Month Period Ended | Change | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | Amount | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Power integrated circuits (“PIC”) | $ | 91,870 | $ | 80,235 | $ | 11,635 | 14.5 | % | |||||||||||||||
Magnetic sensors (“MS”) | 159,499 | 183,438 | (23,939) | (13.1) | % | ||||||||||||||||||
Photonics | 281 | — | 281 | 100.0 | % | ||||||||||||||||||
Wafer foundry products | — | 32,988 | (32,988) | (100.0) | % | ||||||||||||||||||
Distribution of Sanken products | — | 19,022 | (19,022) | (100.0) | % | ||||||||||||||||||
Total | $ | 251,650 | $ | 315,683 | $ | (64,033) | (20.3) | % |
Six-Month Period Ended | Change | ||||||||||||||||||||||
September 25, 2020 | September 27, 2019 | Amount | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Americas: | |||||||||||||||||||||||
United States | $ | 33,958 | $ | 59,248 | $ | (25,290) | (42.7) | % | |||||||||||||||
Other Americas | 5,177 | 11,208 | (6,031) | (53.8) | % | ||||||||||||||||||
EMEA: | |||||||||||||||||||||||
Europe | 42,220 | 52,281 | (10,061) | (19.2) | % | ||||||||||||||||||
Asia: | |||||||||||||||||||||||
Japan | 46,131 | 85,940 | (39,809) | (46.3) | % | ||||||||||||||||||
Greater China | 70,006 | 59,960 | 10,046 | 16.8 | % | ||||||||||||||||||
South Korea | 26,127 | 27,294 | (1,167) | (4.3) | % | ||||||||||||||||||
Other Asia | 28,031 | 19,752 | 8,279 | 41.9 | % | ||||||||||||||||||
Total | $ | 251,650 | $ | 315,683 | $ | (64,033) | (20.3) | % |
Six-Month Period Ended | |||||||||||
September 25, 2020 | September 27, 2019 | ||||||||||
(dollars in thousands) | |||||||||||
Net cash provided by operating activities | $ | 28,640 | $ | 27,716 | |||||||
Net cash used in investing activities | (42,644) | (14,279) | |||||||||
Net cash provided by financing activities | — | 30,000 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 2,480 | (7,157) | |||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (11,524) | $ | 36,280 |
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Filed/ Furnished Herewith | ||||||||||||||||||||||||||||||||
3.1 | 8-K | 001-39675 | 3.1 | 11/02/2020 | ||||||||||||||||||||||||||||||||||
3.2 | 8-K | 001-39675 | 3.2 | 11/02/2020 | ||||||||||||||||||||||||||||||||||
4.1 | * | |||||||||||||||||||||||||||||||||||||
4.2 | 8-K | 333-249348 | 10.1 | 11/02/2020 | ||||||||||||||||||||||||||||||||||
10.1 | S-1/A | 333-249348 | 10.32 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.2 | S-1/A | 333-249348 | 10.33 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.3 | S-1/A | 333-249348 | 10.34 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.4 | S-1/A | 333-249348 | 10.35 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.5 | S-1/A | 333-249348 | 10.36 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.6 | S-1/A | 333-249348 | 10.37 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.7 | S-1/A | 333-249348 | 10.38 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.8 | S-1/A | 333-249348 | 10.39 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.9 | S-1/A | 333-249348 | 10.40 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.10 | S-1/A | 333-249348 | 10.42 | 10/21/2020 |
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Filed/ Furnished Herewith | ||||||||||||||||||||||||||||||||
10.11 | S-1/A | 333-249348 | 10.43 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.12 | S-1/A | 333-249348 | 10.44 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.13 | S-1/A | 333-249348 | 10.45 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.14 | S-1/A | 333-249348 | 10.46 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.15 | S-1/A | 333-249348 | 10.47 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.16 | S-1/A | 333-249348 | 10.48 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
10.17 | S-1/A | 333-249348 | 10.49 | 10/21/2020 | ||||||||||||||||||||||||||||||||||
31.1 | * | |||||||||||||||||||||||||||||||||||||
31.2 | * | |||||||||||||||||||||||||||||||||||||
32.1 | ** | |||||||||||||||||||||||||||||||||||||
32.2 | ** | |||||||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Filed/ Furnished Herewith | ||||||||||||||||||||||||||||||||
101.INS | Inline XBRL Instance Document. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |||||||||||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||||||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101 filed herewith). |
ALLEGRO MICROSYSTEMS, INC. | |||||||||||
Date: November 20, 2020 | By: | /s/ Ravi Vig | |||||||||
Ravi Vig | |||||||||||
President and Chief Executive Officer (principal executive officer) | |||||||||||
Date: November 20, 2020 | By: | /s/ Paul V. Walsh, Jr. | |||||||||
Paul V. Walsh, Jr. | |||||||||||
Senior Vice President, Chief Financial Officer and Treasurer (principal financial and accounting officer) |
Date: November 20, 2020 | By: | /s/ Ravi Vig | |||||||||
Ravi Vig President and Chief Executive Officer (principal executive officer) |
Date: November 20, 2020 | By: | /s/ Paul V. Walsh, Jr. | |||||||||
Paul V. Walsh, Jr. Chief Financial Officer (principal financial officer) |
Date: November 20, 2020 | By: | /s/ Ravi Vig | |||||||||
Ravi Vig President and Chief Executive Officer (principal executive officer) |
Date: November 20, 2020 | By: | /s/ Paul V. Walsh, Jr. | |||||||||
Paul V. Walsh, Jr. Chief Financial Officer (principal financial officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 25, 2020 |
Mar. 27, 2020 |
---|---|---|
Allowances | $ 338 | $ 288 |
Common Stock, Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 12,500,000 | 12,500,000 |
Common stock, shares issued (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares outstanding (in shares) | 10,000,000 | 10,000,000 |
Common Stock, Class L | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, shares issued (in shares) | 638,298 | 622,470 |
Common stock, shares outstanding (in shares) | 638,298 | 622,470 |
Statement of Income (Including Gross Margin) (Statement) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
Sep. 25, 2020 |
Sep. 27, 2019 |
|
Net sales | $ 136,649 | $ 163,240 | $ 251,650 | $ 315,683 |
Cost of goods sold | 74,879 | 94,634 | 134,179 | 187,690 |
Gross Profit | 61,770 | 68,606 | 117,471 | 127,993 |
Operating expenses: | ||||
Research and development | 25,130 | 25,952 | 49,510 | 52,080 |
Selling, general and administrative | 24,238 | 27,593 | 51,027 | 53,121 |
Total operating expenses | 49,368 | 53,545 | 100,537 | 105,201 |
Operating income | 12,402 | 15,061 | 16,934 | 22,792 |
Other income (expense): | ||||
Interest income (expense), net | 350 | (65) | 663 | (70) |
Foreign currency transaction (loss) gain | (1,318) | 609 | (1,186) | 3,360 |
Income in earnings of equity investment | 246 | 0 | 458 | 0 |
Other, net | 20 | (1,189) | 213 | (1,096) |
Income before income taxes | 11,700 | 14,416 | 17,082 | 24,986 |
Income tax provision | 2,082 | 2,833 | 2,610 | 10,168 |
Net income | 9,618 | 11,583 | 14,472 | 14,818 |
Net income attributable to non-controlling interests | 34 | 18 | 68 | 69 |
Net income attributable to Allegro MicroSystems, Inc. | $ 9,584 | $ 11,565 | $ 14,404 | $ 14,749 |
Net income attributable to Allegro MicroSystems, Inc. per share: | ||||
Basic and diluted (in dollars per share) | $ 0.96 | $ 1.16 | $ 1.44 | $ 1.47 |
Weighted average shares outstanding: | ||||
Basic and diluted (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 |
Non-Related Party Revenue | ||||
Net sales | $ 114,138 | $ 146,615 | $ 205,519 | $ 282,891 |
Related Party Revenue | ||||
Net sales | $ 22,511 | $ 16,625 | $ 46,131 | $ 32,792 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
Sep. 25, 2020 |
Sep. 27, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 9,618 | $ 11,583 | $ 14,472 | $ 14,818 |
Foreign currency translation adjustment | 1,900 | (1,784) | 6,180 | (1,017) |
Net actuarial loss amortization of net transition obligation and prior service costs related to defined benefit plans, net of tax | 0 | 0 | (313) | 0 |
Comprehensive income | 11,518 | 9,799 | 20,339 | 13,801 |
Comprehensive (expense) income attributable to non-controlling interest | (31) | (33) | (24) | 18 |
Comprehensive income attributable to Allegro MicroSystems, Inc. | $ 11,487 | $ 9,766 | $ 20,315 | $ 13,819 |
Nature of the Business and Basis of Presentation |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of the Business and Basis of Presentation | Nature of the Business and Basis of Presentation Allegro MicroSystems, Inc., together with its consolidated subsidiaries (“AMI” or the “Company”), is a global leader in designing, developing and manufacturing sensing and power solutions for motion control and energy-efficient systems in automotive and industrial markets. The Company was incorporated under the laws of Delaware on March 30, 2013 under the name of Sanken North America, Inc. (“SKNA”) as a wholly owned subsidiary of Sanken Electric Co., Ltd. (“Sanken”). In October 2017, Sanken sold 28.8% of the common stock of SKNA to One Equity Partners (“OEP”). In April 2018, SKNA filed a certificate of amendment in the state of Delaware to change its name to Allegro MicroSystems, Inc. The Company is headquartered in Manchester, New Hampshire and has a global footprint with 16 locations across four continents. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The unaudited condensed consolidated financial statements include the Company's accounts and those of its subsidiaries. All intercompany balances have been eliminated in consolidation. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included the Company’s final prospectus on Form 424(b) filed with the SEC on October 30, 2020 (the “Prospectus”). In the opinion of the Company's management, the financial information for the interim periods presented reflects all adjustments necessary for a fair presentation of the Company's financial position, results of operations and cash. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. On March 28, 2020, the Company entered into an agreement to divest a majority of its ownership interest in Polar Semiconductor, Inc. (“PSL”) to Sanken, in order to better align with its fabless, asset-lite scalable manufacturing strategy. In order to affect this in-kind, non-cash transaction, Sanken contributed the forgiveness of the fair value of the entire related party notes payable of $42,700 owed to Sanken and the Company contributed the forgiveness of the fair value of $15,000 out of the $66,377 total debt owed by PSL to the Company, which was previously eliminated in consolidation. Following the divestiture, Sanken held a 70% majority share in PSL with the Company retaining a 30% minority shareholder interest. The investment was recorded for the 30%, totaling $25,669 at the divestiture date. Beginning with reporting periods on and after March 28, 2020, the investment is included on the Company’s balance sheet as an equity investment in a related party including a tax impact of $419 for the fair value basis difference compared to book value and $458 of income earned during the six months ended September 25, 2020. In addition, the difference between the fair value contributed by both parties at the consummation of this transaction and the book value was treated as an adjustment of capitalization changes related to organizational structure of affiliates and direct and indirect interests in subsidiaries within additional paid-in capital of $19,692 at September 25, 2020. This amount includes an estimated tax effect of $527 and $2,497 for the three- and six-month periods ended September 25, 2020, respectively, of which $419 was charged against the investment noted above. On March 28, 2020, in connection with the divestiture described above, the Company also formally terminated its distribution agreement with Sanken to distribute Sanken’s products and entered into a transitional services agreement with PSL, who contracted with Sanken as their new channel for fulfillment of Sanken product sales in North America and Europe. Sanken will continue to provide distribution support for Allegro’s products in Japan. See Note 20, ”Related party transactions,” for further discussion. In accordance with the divestiture transactions noted above, the following non-cash assets and liabilities and related equity impacts attributable to the unaudited statement of cash flows are summarized below:
Impact of the COVID-19 Coronavirus On March 11, 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization. The pandemic has resulted in governments around the world implementing increasingly stringent measures to help control the spread of the virus, including quarantines, “shelter in place” and “stay at home” orders, travel restrictions, business curtailments, school closures and other measures. In addition, governments and central banks in several parts of the world have enacted fiscal and monetary stimulus measures to counteract the impacts of the COVID-19 pandemic. The Company continues to monitor the rapidly evolving conditions and circumstances as well as guidance from international and domestic authorities, including public health authorities, and the Company may need to take additional actions based on their recommendations. There is considerable uncertainty regarding the impact on the Company’s business stemming from current measures and potential future measures that could restrict access to the Company’s facilities, limit manufacturing and support operations and place restrictions on the Company’s workforce and suppliers. The measures implemented by various authorities related to the COVID-19 outbreak have caused the Company to change its business practices including those related to where employees work, the distance between employees in the Company’s facilities, limitations on the in person meetings between employees and with customers, suppliers, service providers, and stakeholders as well as restrictions on business travel to domestic and international locations or to attend trade shows, investor conferences and other events. The full extent to which the ongoing COVID-19 pandemic adversely affects the Company’s financial performance will depend on future developments, many of which are outside of the Company’s control, are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the pandemic, its severity, the effectiveness of actions to contain the virus or treat its impact and how quickly and to what extent normal economic and operating conditions can resume. The COVID-19 pandemic could also result in additional governmental restrictions and regulations, which could adversely affect the Company’s business and financial results. In addition, a recession, depression or other sustained adverse market impact resulting from COVID-19 could materially and adversely affect the Company’s business and its access to needed capital and liquidity. Even after the COVID-19 pandemic has lessened or subsided, the Company may continue to experience adverse impacts on its business and financial performance as a result of its global economic impact. To the extent that the COVID-19 pandemic adversely affects the Company’s business, results of operations, financial condition or liquidity, it also may heighten many of the other risks. Such risks include, if the business impacts of COVID-19 carry on for an extended period, could cause the Company to recognize impairments for goodwill and certain long-lived assets including amortizable intangible assets. The Company has taken actions to mitigate its financial risk given the uncertainty in global markets caused by the COVID-19 pandemic. During the fourth quarter of fiscal year 2020, the Company borrowed $43,000 under its revolving credit facilities. The borrowing was made as part of the Company’s ongoing efforts to preserve financial flexibility in light of the current uncertainty in the global markets and related effects on the Company’s business resulting from the COVID-19 pandemic. While the Company does not currently expect to use the proceeds from these borrowings for any near-term liquidity needs, it may use the proceeds for working capital and other general corporate purposes. On March 27, 2020, the President of the United States signed and enacted into law the Coronavirus Aid, Relief and Economic Security Act (“the CARES Act”). The CARES Act contains numerous tax provisions including a correction to the applicable depreciation rates available in the original Tax Cuts and Jobs Act (“TCJA”) for Qualified Improvement Property (“QIP”). The Company currently estimates a $1,680 cash acceleration is available to it as a result of this change and the Company plans to adjust its historical income tax filings accordingly. Additional income tax provisions of the Act are currently being evaluated and not expected to have a material impact. The CARES Act also contains a provision for deferred payment of 2020 employer payroll taxes after the date of enactment to future years. The Company expects to defer a portion of its remaining 2020 employer payroll taxes to subsequent years. Financial Periods The Company’s second quarter three-month period is a 13-week period ending on the last Friday in September. The Company’s 2021 fiscal three- and six-month period ended September 25, 2020 and the Company’s 2020 three- and six-month period ended September 27, 2019.
|
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Sep. 25, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingencies at the date of the unaudited consolidated financial statements and the reported amounts of net sales and expenses during the reporting period. Such estimates relate to useful lives of fixed and intangible assets, allowances for doubtful accounts and customer returns and sales allowances. Such estimates could also relate to the net realizable value of inventory, accrued liabilities, the valuation of stock-based awards, deferred tax valuation allowances, and other reserves. On an ongoing basis, management evaluates its estimates. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements. Deferred Offering Costs The Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholder’s equity as a reduction of the additional paid-in capital generated as a result of the offering. As of September 25, 2020 and March 27, 2020, the Company had $1,806 and $0 of deferred offering costs, respectively. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with financial institutions, which management believes to be of a high credit quality. To manage credit risk related to accounts receivables, the Company evaluates its creditworthiness of its customers and maintains allowances, to the extend necessary, for potential credit losses based upon the aging of its accounts receivable balances and known collection issues. The Company has not experienced any significant credit losses to date. As of September 25, 2020 and March 27, 2020, Sanken accounted for 15.5% and 33.8% of the Company’s outstanding trade accounts receivable, net, respectively, including related party trade accounts receivable. No other customers accounted for 10% or more of outstanding trade accounts receivable, net during those periods ended. For the three- and six-month periods ended September 25, 2020, Sanken accounted for 16.5% and 18.3% of total net sales, respectively. No other customers accounted for 10% or more of total net sales for either of the three- and six-month periods ended September 25, 2020. For the three- and six-month periods ended September 27, 2019, Sanken accounted for 10.2% and 10.4% of total net sales, respectively. No other customers accounted for 10% or more of total net sales for either of the three- and six-month periods ended September 27, 2019. During the three-month period ended September 25, 2020 sales from customers located outside of the United States accounted for in the aggregate 84.7% of the Company’s total net sales, with Greater China accounting for 27.8% and Japan accounting for 16.4%. No other countries accounted for greater than 10% of total net sales for the three-month period ended September 25, 2020. During the six-month period ended September 25, 2020 sales from customers located outside of the United States in the aggregate accounted for 86.5% of the Company’s total net sales, with Greater China accounting for 27.8%, Japan accounting for 18.3% and South Korea accounting for 10.4%. No other countries accounted for greater than 10% of total net sales for the six-month period ended September 25, 2020. During the three-month period ended September 27, 2019 sales from customers located outside of the United States in the aggregate accounted for 81.2% of the Company’s total net sales, with Japan accounting for 26.0% and Greater China accounting for 22.5%. No other countries accounted for greater than 10% of total net sales for the three-month period ended September 27, 2019. During the six-month period ended September 27, 2019 sales from customers located outside of the United States in the aggregate accounted for 81.2% of the Company’s total net sales, with Japan accounting for 27.2% and Greater China accounting for 18.9%. No other countries accounted for greater than 10% of total net sales for the six-month period ended September 27, 2019. Impact of Recently Issued Accounting Standards The Company qualifies as “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 and has elected to “opt in” to the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and nonpublic companies, the Company will adopt the new or revised standard at the time nonpublic companies adopt the new or revised standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for nonpublic companies. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02” or “the new lease standard”) which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. In addition, a lessee is required to record (i) a right-of-use asset and a lease liability on its balance sheet for all leases with accounting lease terms of more than 12 months regardless of whether it is an operating or financing lease and (ii) lease expense for operating leases and amortization and interest expense for financing leases. Leases with a term of 12 months or less may be accounted for similar to prior guidance for operating leases. In July 2018, the FASB issued ASU No. 2018-11, which added an optional transition method under the new lease standard that allows companies to adopt the standard as of the beginning of the year of adoption as opposed to the earliest comparative period presented. In November 2019, the FASB issued guidance delaying the effective date for all entities, except for public business entities. In May 2020, FASB issued ASU No. 2020-05 delaying the effective date of the new lease standard for nonpublic companies to fiscal years beginning after December 15, 2021 and interim periods within those fiscal years beginning after December 15, 2022. The Company expects to adopt this guidance during fiscal year 2022 and it is currently evaluating the expected effect on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which adds an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity by decreasing the number of credit impairment models that entities use to account for debt instruments. ASU 2016-03, along with its subsequent clarifications, was effective for public companies beginning after December 15, 2019 and is effective for nonpublic companies for fiscal years beginning after December 15, 2021. The Company is evaluating the new guidance and the expected effect on its consolidated financial statements and related disclosures. In November 2019, the FASB issued guidance delaying the effective date for all entities, except for public business entities. For public entities, this guidance was effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. For nonpublic entities, this guidance is effective for annual periods beginning after December 15, 2020. In August 2018, the FASB issued ASU No. 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”), which modifies the disclosure requirements for defined benefit pension plans and other postretirement plans. ASU 2018-14 should be applied on a retrospective transition basis, and it is effective for public companies beginning after December 15, 2020 and for nonpublic companies beginning after December 15, 2021. The Company is evaluating the new guidance and the expected effect on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, regarding transfers between levels of financial instruments, amounts of unrealized gains and losses included in other comprehensive (loss) income for Level 3 fair value measurements and the information used to determine the fair value of Level 3 fair value measurements. The standard is effective for both public and nonpublic companies, for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the potential impact that the adoption of ASU 2018-13 will have on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions for intraperiod tax allocations and deferred tax liabilities for equity method investments and adds guidance on whether a step-up in tax basis of goodwill relates to a business combination or a separate transaction. This ASU is effective for fiscal years beginning after December 15, 2020 for public companies and for fiscal years beginning after December 15, 2021 for nonpublic companies, with early adoption permitted. The Company is evaluating the new guidance and the expected effect on its consolidated financial statements and related disclosures. In January 2020, the FASB issued ASU No. 2020-01 Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”), which addresses accounting for the transition into and out of the equity method and provides clarification of the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 for public companies and beginning after December 15, 2021 for nonpublic entities with early adoption permitted. The Company is currently assessing the potential impact that the adoption of ASU 2020-01 will have on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) to provide temporary optional expedients and exceptions to the contract modifications, hedge relationships, and other transactions affected by reference rate reform if certain criteria are met. This ASU, which was effective for all entities upon issuance on March 12, 2020, and may be applied through December 31, 2022, is applicable to all contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or any other reference rate expected to be discontinued. The Company is still assessing the impact that the adoption of ASU 2020-04 will have on its consolidated financial statements.
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Acquisition |
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Acquisition | Acquisition On August 28, 2020 the Company closed on its purchase of Voxtel, Inc. (the “Acquisition”), a privately-held technology company located in Beaverton, Oregon that develops, manufactures and supplies photonic and advanced 3D imaging technologies. The total preliminary purchase price was $35,081, including certain earn-outs that have the potential payout of $15,000. The fair value of these earn-outs at acquisition date was $7,800. The Acquisition has been accounted for as a business combination and, in accordance with ASC 805, Business Combinations, the Company has recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. The following table summarizes the preliminary purchase price allocation recorded:
The significant intangible assets identified in the preliminary purchase price allocation discussed above include completed technology, in-process research and development, customer relationships and trademarks. Completed technology, customer relationships and trademarks are amortized over their respective useful lives on a straight-line basis. An estimated fair value of $2,400 was assigned to acquired in-process research and development costs with an indefinite life. Amortization of completed technology is included within cost of revenue, and amortization of customer relationships and trademarks is included within selling, general and administrative expense. To value the completed technology and the in-process research and development assets, the Company utilized the income approach, specifically a discounted cash-flow method known as the multi-period excess earnings method. Customer relationships represent the underlying relationships with certain customers to provide ongoing services for products sold. The Company utilized the income approach, specifically the distribution method, a subset of the excess-earnings method to value the customer relationships and trademarks. The following table presents the estimated fair values and useful lives of the identifiable finite-life intangible assets acquired:
Goodwill was recognized for the excess purchase price over the fair value of the net assets acquired. The goodwill reflects the value of the synergies the Company expects to realize and the assembled workforce. Goodwill from the Acquisition is included within the Company’s one reporting unit and is included in the Company’s enterprise-level annual review for impairment. Goodwill resulting from the Acquisition is not deductible for tax purposes. The purchase price has been allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of the acquisition, which remains preliminary, and using assumptions that the Company’s management believes are reasonable given the information then available. The final allocation of the purchase price may differ materially from the information presented in these condensed consolidated financial statements. Any changes to the preliminary estimates of the fair value of the assets acquired and liabilities assumed will be recorded as adjustments to those assets and liabilities and residual amounts will be allocated to goodwill. The revenues and loss before income taxes from the Acquisition were immaterial to the Company’s consolidated results for the three-month period ended September 25, 2020. The Company has not presented pro forma results of operations for the Acquisition because it is not material to the Company's consolidated results of operations, financial position, or cash flows.
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Revenue from Contract with Customers |
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Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company generates revenue from the sale of magnetic sensor integrated circuits (“ICs”), application-specific analog power semiconductors, wafer foundry products and from the sale of Sanken related products. The following tables summarize net sales disaggregated by core end market and application, by product and by geography for the three- and six- month periods ended September 25, 2020 and September 27, 2019. The categorization of net sales by core end market and application is determined using various characteristics of the product and the application into which the Company’s product will be incorporated. The categorization of net sales by geography is determined based on the location the products are being shipped to. Net sales by core end market and application:
Net sales by product:
Net sales by geography:
The Company recognizes sales net of returns, credits issued, price protection adjustments and stock rotation rights. At September 25, 2020 and March 27, 2020, these adjustments were $19,337 and $17,473, respectively, and were netted against trade accounts receivable in the unaudited consolidated balance sheets. These amounts represent activity of a charge of $1,864 and a credit of $412 for the six-month periods ended September 25, 2020 and September 27, 2019, respectively. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. The Company elected to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year.
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Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements The following tables present information about the Company’s financial assets and liabilities as of September 25, 2020 and March 27, 2020 measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values:
The following table shows the change in fair value of Level 3 contingent consideration in connection with the Acquisition for the six-month period ended September 25, 2020:
Assets and liabilities measured at fair value on a recurring basis also consist of marketable securities, unit investment trust fund, loans, bonds, stock and other investments which are the Company’s defined benefit plan assets. Fair value information for those assets and liabilities, including their classification in the fair value hierarchy, is included in Note 15, “Retirement Plans.” During the six-month periods ended September 25, 2020 and September 27, 2019, there were no transfers between Level 1, Level 2 and Level 3.
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Trade Accounts Receivable, net |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade Accounts Receivable, net | Trade Accounts Receivable, net Trade accounts receivable, net (including related party trade accounts receivable) consisted of the following:
Changes in the Company’s allowance for doubtful accounts and returns and sales allowances were as follows:
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Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories include material, labor and overhead and consisted of the following:
In connection with the Acquisition, the Company acquired inventory with a stepped-up basis of $3,120 in the three- and six-month periods ended September 25, 2020. The Company recorded inventory provisions totaling $490 and $2,073 for the three- and six-month periods ended September 25, 2020, respectively, and $473 and $1,530 for the three- and six-month periods ended September 27, 2019, respectively.
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Property, Plant and Equipment, net |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment, net is stated at cost, and consisted of the following:
Total depreciation expense amounted to $11,797 and $22,606 in the three- and six-month periods ended September 25, 2020, respectively, and $15,540 and $30,570 in the three- and six-month periods ended September 27, 2019, respectively. Long-lived assets include property, plant and equipment and related deposits on such assets, and capitalized tooling costs. The geographic locations of the Company's long-lived assets, net, based on physical location of the assets, as of September 25, 2020 and March 27, 2020 are as follows:
Amortization of prepaid tooling costs amounted to $19 and $36 for the three- and six-month periods ended September 25, 2020, respectively, and $30 and $62 in the three- and six-month periods ended September 27, 2019, respectively.
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Goodwill and Intangible Assets |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets The table below summarizes the changes in the carrying amount of goodwill as follows:
Intangible assets, net is as follows:
As summarized in Note 3, “Acquisition,” the Company completed its acquisition of Voxtel, Inc. during the three-month period ended September 25, 2020. The Company paid an amount of $35,081 to acquire Voxtel, which represents its fair value on that date. Any excess of the acquisition consideration over the fair value of the assets acquired and liabilities assumed was allocated to goodwill, which amounted to $18,871. As a result of the Acquisition, the Company recorded finite-life intangible assets of $13,600, the types and lives of which are detailed in the above-referenced financial note. In addition, as a result of the acquisition, the Company recorded indefinite-life intangible assets of $2,400. Intangible assets amortization expense was $671 and $1,384 for the three- and six-month periods ended September 25, 2020, respectively, and $418 and $845 for the three- and six-month periods ended September 27, 2019, respectively. The majority of the Company’s intangible assets are related to patents as noted above. The Company capitalizes external legal costs incurred in the defense of its patents when it believes that a significant, discernible increase in value will result from the defense and a successful outcome of the legal action is probable. When the Company capitalizes patent defense costs it amortizes these costs over the remaining estimated useful life of the patent, which is generally ten years. There were no such costs capitalized during either of the first six months of fiscal years 2020 or 2021. As of September 25, 2020, annual amortization expense of intangible assets for the next five fiscal years is expected to be as follows:
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Other Assets, net |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, net | Other Assets, net The composition of other assets, net is as follows:
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Accrued Expenses and Other Current Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The composition of accrued expenses and other current liabilities is as follows:
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Management Long-Term Incentive Plan |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Related Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management Long-Term Incentive Plan | Management Long-Term Incentive Plan On August 28, 2015 the Company’s Board of Directors approved a Long-Term Cash Incentive Plan (“LTIP”) for certain employees. Under the LTIP, employees receive cash payments upon achievement of certain performance metrics determined based on a three-year rolling performance period. The Company had executed individual agreements with employees to pay certain incentives upon achievement of the plan conditions at the end of each three-year performance period. The accrual activity, payments, removal due to divestitures and balances related to the LTIP are as follows:
The current and long-term portion of the liabilities associated with the LTIP is included within accrued expenses and other current liabilities and other long-term liabilities in the Company’s unaudited consolidated balance sheets, respectively.
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Bank Lines of Credit |
6 Months Ended |
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Sep. 25, 2020 | |
Debt Disclosure [Abstract] | |
Bank Lines of Credit | Bank Lines of Credit On January 22, 2019, the Company, through its subsidiaries, entered into a revolving line-of-credit agreement, with a financial institution, that provides for a maximum borrowing capacity of $25,000. The revolving line-of credit bears interest at LIBOR on the day of the advance plus a 0.4% spread payable upon maturity of the draws, and expires on January 22, 2021. During fiscal year 2020, the Company borrowed $25,000 under the revolving line-of-credit. As of March 27, 2020, the Company had a $25,000 outstanding balance under the revolving line-of-credit agreement with an original repayment date of June 19, 2020 at an interest rate of 1.7%. In the first quarter of fiscal 2021 repayment of the $25,000 borrowings under the revolving line-of-credit was extended to December 18, 2020, and as of September 25, 2020 the Company’s outstanding balance under the revolving line-of-credit agreement was $25,000. The revolving line of credit is secured, for one-year period, by a non-refundable fee of $25 that was paid to the financial institution. In connection with entering into a new revolving credit facility on September 30, 2020, the Company used cash on hand to repay all amounts outstanding under the line-of-credit and terminated all commitments thereunder. See Note 21, “Subsequent Events.” On March 27, 2006, the Company, through its subsidiaries, entered into a revolving line-of-credit agreement, with a financial institution, that provides for a maximum borrowing capacity of $10,000. The revolving line-of-credit bears interest at LIBOR on the day of the advance plus 1.0% spread payable upon maturity of the draws and is guaranteed by Sanken. Under the terms of the revolving line-of-credit agreement, the principal is due at various times during fiscal year 2021. During fiscal year 2020, the Company borrowed $10,000 under the revolving line of credit. As of March 27, 2020, the Company had $10,000 outstanding balance under the revolving line-of-credit agreement maturing on September 16, 2020, at an interest rate of 2.5%. On March 28, 2020, in conjunction with the divestiture of PSL, the debt was deconsolidated. On December 5, 2001, the Company, through its subsidiaries, entered into a line-of-credit agreement with a financial institution that provides for a maximum borrowing capacity of $8,000. On March 18, 2020, the Company borrowed $8,000 under the line-of-credit. As of March 27, 2020, the Company had $8,000 outstanding balance under the line-of-credit agreement maturing on June 18, 2020 at an interest rate of 1.9%. In the first quarter of fiscal 2021 repayment of the $8,000 borrowings under the line-of-credit was extended to December 21, 2020, and as of September 25, 2020 the Company’s outstanding balance under the line-of-credit agreement was $8,000. In connection with entering into a new revolving credit facility, the Company used cash on hand to repay all amounts outstanding under the line-of-credit and terminated all commitments thereunder. See Note 21, “Subsequent Events.” On November 26, 2019, the Company, through its subsidiaries, entered into a line-of-credit agreement with a financial institution that provides for a maximum borrowing capacity of 60,000 Philippine pesos (approximately $1,235 at September 25, 2020) at the bank’s prevailing interest rate, which was approximately 4.6% at both September 25, 2020 and March 27, 2020. The line-of credit expires on August 31, 2021. There were no borrowings outstanding under this line-of-credit as of September 25, 2020 or March 27, 2020. On November 20, 2019, the Company, through its subsidiaries, entered into a line-of-credit agreement with a financial institution that provides for a maximum capacity of 75,000 Philippine pesos (approximately $1,544 at September 25, 2020) at the bank’s prevailing interest rate. The line-of credit expires on June 30, 2021. There were no borrowings outstanding under this line-of-credit as of September 25, 2020 or March 27, 2020. Given the continued uncertainty surrounding COVID-19, during the month of March 2020, the Company executed a $43,000 drawdown of the majority of its remaining available lines-of-credit under its existing agreements, as noted above. The Company took this action as a precautionary measure to increase its cash position and help maintain financial flexibility. The proceeds from the drawdown will be available to be used for working capital, general corporate or other purposes during the COVID-19 crisis into fiscal year 2021. After the divestiture of PSL, the remaining $33,000 of bank lines-of-credit was classified as short-term as of September 25, 2020.
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Other Long-Term Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Liabilities | Other Long-Term Liabilities The composition of other long-term liabilities is as follows:
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Retirement Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans | Retirement Plans The Company recognizes the funded status (i.e., the difference between the fair value of plan assets and the benefit obligations) of its defined benefit pension plans in its unaudited consolidated balance sheets with a corresponding adjustment to accumulated other comprehensive income (“AOCI”), net of tax. These amounts will continue to be recognized as a component of future net periodic benefit cost consistent with the Company’s past practice. Further, actuarial gains and losses and prior service costs that arise in future periods and are not recognized as net periodic benefit costs in the same periods will be recognized as a component of other comprehensive income. Those amounts will also be recognized as a component of future net periodic benefit costs consistent with the Company’s past practice. The Company uses a measurement date for its defined benefit pension plans and other postretirement benefit plans that is equivalent to its fiscal year-end. Plan Descriptions Non-U.S. Defined Benefit Plan The Company, through its its wholly-owned subsidiary, Allegro MicroSystems Philippines, Inc. (“AMPI”), has a defined benefit pension plan, which is a noncontributory plan that covers substantially all employees of the respective subsidiary. The plan’s assets are invested in common trust funds, bonds and other debt instruments and stocks. Effect on the unaudited Statements of Income Expense related to the non-U.S. defined benefit plan was as follows:
Information on Plan Assets The table below sets forth the fair value of the entity’s plan assets as of September 25, 2020 and March 27, 2020, using the same three-level hierarchy of fair value inputs described in the significant accounting policies included in the audited consolidated financial statements as of March 27, 2020 and for the year then ended, which are included in the previously filed Prospectus.
The following table shows the change in fair value of Level 3 plan assets for the six-month period ended September 25, 2020:
The investments in the Company’s major benefit plans largely consist of low-cost, broad-market index funds to mitigate risks of concentration within the market sectors. In recent years, the Company’s investment policy has shifted toward a closer matching of the interest-rate sensitivity of the plan assets and liabilities. The appropriate mix of equity and bond investments is determined primarily through the use of detailed asset-liability modeling studies that look to balance the impact of changes in the discount rate against the need to provide asset growth to cover future service cost. The Company, through its wholly-owned subsidiary, Allegro MicroSystems, LLC’s (“AML”), non-U.S. defined benefit plan, has added a greater proportion of fixed income securities with return characteristics that are more closely aligned with changes in liabilities caused by discount rate volatility. There are no significant restrictions on the amount or nature of the investments that may be acquired or held by the plans. During the three- and six-month periods ended September 25, 2020 the Company contributed approximately $247 and $487 to its non-U.S. pension plan, respectively, and during the three- and six-month periods ended September 27, 2019 the Company contributed approximately $230 and $463 to its non-U.S. pension plan, respectively. The Company expects to contribute approximately $943 to its non-U.S. pension plan in fiscal year 2021. Other Defined Benefit Plan In December 1993, the Company commenced with a rollover pension promise agreement (“Pension Promise”) to offer a then European employee an insured annuity upon their retirement at age 65. The employee was the only eligible participant of the Pension Promise. The impact associated with the expense and related other income with the Pension Promise was insignificant in fiscal years 2020 and 2019, respectively. The total values of the Pension Promise in the amounts of 827 and 866 British Pounds Sterling at September 25, 2020 and March 27, 2020, respectively (approximately $1,053 and $975 at September 25, 2020 and March 27, 2020, respectively), were classified with other in other assets, net and accrued retirement in other long-term liabilities in the Company’s unaudited consolidated balance sheets. Defined Contribution Plan Eligible AML U.S. employees may contribute up to 50% of their pretax compensation to a defined contribution plan, subject to certain limitations, and AML may match, at its discretion, 100% of the participants’ pretax contributions, up to a maximum of 5% of their eligible compensation. Matching contributions by AML totaled approximately $1,040 and $2,069 for the three- and six-month periods ended September 25, 2020, respectively, and approximately $960 and $2,007 for the three- and six-month periods ended September 27, 2019, respectively. The Company, through its AML subsidiary, Allegro MicroSystems Europe, Ltd. (“Allegro Europe”), also has a defined contribution plan (the “AME Plan”) covering substantially all employees of Allegro Europe. Contributions to the AME Plan by the Company totaled approximately $206 and $385 for the three- and six-month periods ended September 25, 2020, respectively, and approximately $183 and $359 for the three- and six-month periods ended September 27, 2019, respectively. The Company has a 401(k) plan that covers all employees meeting certain service and age requirements. Employees are eligible to participate in the plan upon hire when the service and age requirements are met. Employees may contribute up to 35% of their compensation, subject to the maximum contribution allowed by the Internal Revenue Service. All employees are 100% vested in their contributions at the time of plan entry. As of January 1, 2008, and until January 1, 2015, the Company’s former wholly-owned subsidiary, PSL, adopted and used a Safe Harbor provision, whereby PSL contributed 3% of compensation each pay period for all eligible employees meeting the Safe Harbor criteria. As of January 1, 2015, PSL may match, at its discretion, 100% of the employee’s contribution, up to a maximum of 5% of their eligible compensation. PSL’s matching contributions in the three- and six-month periods ended September 27, 2019 was $401 and $934, respectively.
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Commitment and Contingencies |
6 Months Ended |
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Sep. 25, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company, through its subsidiaries, leases certain real estate property and equipment under operating lease agreements that expire at various dates between and seven years. The leases generally require the Company to pay for utilities, insurance, taxes and maintenance. Some leases contain escalation clauses, renewal options and purchase options. There have been no material changes to these lease commitments since March 27, 2020. Insurance The Company, through its subsidiaries, utilizes self-insured employee health programs for employees in the United States. The Company records estimated liabilities for its self-insured health programs based on information provided by the third-party plan administrators, historical claims experience and expected costs of claims incurred but not reported. The Company monitors its estimated liabilities on a quarterly basis. As facts change, it may become necessary to make adjustments that could be material to the Company’s unaudited consolidated financial position and results of operations. Legal proceedings The Company is subject to various legal proceedings and claims, the outcomes of which are subject to significant uncertainty. The Company records an accrual for legal contingencies when it is determined that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations, the Company evaluates, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, and the ability to make a reasonable estimate of the loss. If the occurrence of liability is probable, the Company will disclose the nature of the contingency, and if estimable, will provide the likely amount of such loss or range of loss. Furthermore, the Company does not believe there are any matters that could have a material adverse effect on financial position, results of operations or cash flows. Indemnification From time to time, the Company has agreed to indemnify and hold harmless certain customers for potential allegations of infringement of intellectual property rights and patents arising from the use of its products. To date, the Company has not incurred any costs in connection with such indemnification arrangements; therefore, there was no accrual of such amounts as of September 25, 2020 or March 27, 2020. Environmental Matters The Company establishes accrued liabilities for environmental matters when it is probable that a liability has been incurred, and the amount of the liability can be reasonably estimated. If the contingency is resolved for an amount greater or less than the accrual, or the Company’s share of the contingency increases or decreases or other assumptions relevant to the development of the estimate were to change, the Company would recognize an additional expense or benefit in the unaudited consolidated statements of operations during the period such determination was made. No environmental accruals were established at September 25, 2020 or March 27, 2020.
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Net Income per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Share | Net Income per Share The following table sets forth the computation of diluted net income attributable to Allegro MicroSystems, Inc. per share:
Class A shares are entitled to a priority dividend of 8%. After Class A shareholders receive an annualized return on capital of 8%, distributions of the remaining value are split between Class A and Class L shareholders based on the achievement of certain return targets. In determining income to the Class A stockholders for computing basic and diluted earnings per share for the three- and six-month periods ended September 25, 2020 and September 27, 2019, the Company did not allocate income to the Class L shares in accordance with ASC 260, because such classes of shares would not have shared in the distribution had all of the income for the periods been distributed. Accordingly, earnings per share calculations were provided only for the class A shares. Unaudited Pro Forma Net Income per Share Unaudited pro forma basic and diluted net income per share attributable to Allegro MicroSystems, Inc. for the three- and six-month periods ended September 25, 2020 have been prepared to give effect to the Common Stock Conversion as described below in Note 21, “Subsequent Events” as if such event had occurred on September 25, 2020.
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Common Stock and Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock and Stock-Based Compensation | Common Stock and Stock-Based CompensationThe Company has two classes of common stock, Class A common stock and Class L common stock. The Company’s Board of Directors authorized 12,500,000 shares of Class A common stock at par value of $0.01, out of which the Company issued 6,720,000 to Sanken in exchange for its previous common shares. The previous single class of common stock was retired in full. The Company sold 2,880,000 of newly-issued shares of Class A common stock, representing a 28.8% ownership interest, to OEP for cash consideration of $291,000. The stock issuance proceeds were recorded net of $9,260 of related transaction costs. The Company’s Board of Directors authorized 1,000,000 shares of Class L common stock at a par value of $0.01. Both Class A and Class L common stock are entitled to dividends, when, and if declared by the Board of Directors. Holders of shares of Class A common stock are entitled to a priority dividend of 8%. After holders of shares of Class A common stock receive an annualized return on capital of 8%, distributions of the remaining value are split between holders of shares of Class A common stock and Class L common stock based on the achievement of certain return targets. Each outstanding share of Class A common stock entitles the holder to one vote on each matter submitted to a vote of the stockholders of the Company, including the election of the Board of Directors. Holders of Class L common stock are not entitled to vote. In the event of voluntary or involuntary liquidation, dissolution or winding-up of the Company, any amounts available for distribution by the Company will be paid to the holders of Class A common stock and Class L common stock, as if such distribution were a dividend paid, factoring in the priorities as described above. Upon the earliest of (i) an initial public offering (“IPO”); (ii) change of control; (iii) the date OEP and its affiliates cease to own any shares of capital stock of the Company; or (iv) at the election of the Board of Directors, any merger transaction involving the Company or its subsidiaries, each outstanding share of Class L common stock will convert into Class A common stock. Also, in connection with the OEP transaction, the Company granted 400,000 of unvested Class A shares and 597,400 of unvested Class L shares to certain Company employees. The Class A shares vest to the grantees over a service period of 60 months. However, they remain subject to the Company’s repurchase right at par value in the event that either (i) a change in control has not occurred or (ii) the Company has not consummated an IPO by the seventh anniversary of the OEP transaction. As of March 27, 2020, the Company was not able to determine whether such a change in control or IPO was probable and therefore no amount of stock-based compensation was recognized for the unvested Class A shares. If such a change in control or IPO occurred, the unvested Class A shares would immediately become vested and the Company would recognize $40,440 of one-time stock-based compensation (400,000 shares to management at $101.10 per share) at that time. The Class L unvested shares vest on a straight-line basis over a service period of four years. Class L unvested shares have no other vesting conditions. If an IPO occured, 25% of the unvested awards would accelerate vesting if 25% or more of the awards are unvested at the time of the IPO. If a change in control occurs, 100% of the then unvested awards will accelerate vesting. The Company recorded stock-based compensation expense in the following expense categories of its unaudited consolidated statements of income:
The Company issued 15,828 Class L shares during the six-month period ended September 25, 2020 with a weighted average price per share of $33.83. The Company issued no Class L shares during the six-month period ended September 27, 2019. There were 638,298 Class L shares outstanding at September 25, 2020 with a weighted average price per share of $11.99.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company recorded the following tax provision in its unaudited consolidated statements of income:
The Company is subject to income taxes in the United States and the foreign jurisdictions in which it does business. The Company’s income tax provision is comprised of federal, state, local and foreign taxes based on income in multiple jurisdictions and changes in uncertain tax positions. The primary region that is applicable to the determination of the Company’s effective tax rate is the United States. Effective tax rates vary depending on the relative proportion of foreign to U.S. income, the utilization of foreign tax credits and research and development tax credits, changes in corporate structure, changes in the valuation of the Company’s deferred tax assets and changes in tax laws and interpretations. The Company regularly assesses the likelihood of outcomes that could result from the examination of its tax returns by the IRS, and other tax authorities to determine the adequacy of our income tax reserves and expense. Should actual events or results differ from our then-current expectations, charges or credits to the Company’s provision for income taxes may become necessary. Any such adjustments could have a significant effect on the results of operations. The effective tax rate is comprised of an estimated annual operating tax rate and the tax impact of discrete tax adjustments. The effective tax rate for the six-month period ended September 25, 2020 is below the U.S. statutory tax rate of 21.0% primarily as a result of the benefit of the Research and Development Credits and the Foreign Derived Intangible Income provision of the 2017 Tax Cut and Jobs Act (“U.S. Tax Reform”). The decrease in the Company’s provision for income tax and the effective tax rate for the six-month period ended September 25, 2020 as compared to the six-month period ended September 27, 2019 was primarily driven by a discrete tax expense of approximately $5,500 recorded in the first quarter of fiscal year 2020, for the settlement of IRS transfer pricing audits for years 2016, 2017, and 2018. Additionally, the Company estimates an increased benefit of the Foreign Derived Intangible Income provision of U.S. Tax Reform for fiscal year 2021 as compared to fiscal year 2020 resulting from an increase in forecasted taxable income year over year.
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Related Party Transactions |
6 Months Ended |
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Sep. 25, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions involving Sanken The Company sells products to, and purchases in-process products from Sanken. In addition, prior to March 28, 2020, the Company also sold products for Sanken. Net sales of Company’s products to Sanken totaled $22,511 and $46,131 during the three- and six-month periods ended September 25, 2020, respectively, and $16,625 and $32,792 during the three- and six-month periods ended September 27, 2019, respectively. Trade accounts receivables, net of allowances from Sanken totaled $11,654 and $30,293 as of September 25, 2020 and March 27, 2020, respectively. Other accounts receivable from Sanken totaled $389 and $558 as of September 25, 2020 and March 27, 2020, respectively. During fiscal year 2020, the Company acted as a distributor of Sanken’s products. Net sales of Sanken’s products by the Company to third parties totaled $9,699 and $19,022 during the three- and six-month periods ended September 27, 2019. On March 28, 2020, the Company formally terminated its distribution agreement with Sanken to distribute Sanken’s products. Purchases of various products from Sanken totaled $8,569 and $16,479 for the three- and six-month periods ended September 27, 2019. Accounts payable to Sanken totaled $4,494 as of March 27, 2020. Joint Development Agreement (“Development Agreement”) The Company, through its former wholly-owned subsidiary, PSL, entered into a Development Agreement with Sanken whereby the Company and Sanken jointly own a specific wafer technology and share the reimbursement of development costs incurred by the Company. Sanken reimbursed $360 and $720 in the three- and six-month periods ended September 27, 2019. Short-term Bridge Loan Receivable to Sanken In March 2019, the Company entered into a short-term bridge loan to Sanken in the amount of $30,000. The loan bore interest of 2.52% and was repaid in April 2019. Interest income related to the loan to Sanken was $55 in the six-month period ended September 27, 2019. Notes Payable and Line-of credit from Sanken The Company, through PSL, its former wholly-owned subsidiary, had related party debt owed to Sanken that includes three notes payable in the aggregate amount of $17,700 and two lines-of-credit agreements in the aggregate amount of $25,000 at March 27, 2020. The interest rates on the related party debt was reset at the beginning of each calendar quarter to LIBOR on the last trading day of the previous month, plus a 1.0% spread. Related party interest expense consisting of amounts due to Sanken for intercompany notes payable and lines-of-credit for the three- and six-month periods ended September 27, 2019 amounted to $383 and $795 and related party interest paid for the same periods amounted to $730 and $754, respectively. As of March 27, 2020, the related party notes payable balance of $17,700 was classified in the unaudited consolidated balance sheet as long-term, with various maturity dates through March 14, 2025. The line of credit agreements of $25,000 were classified as current at March 27, 2020. In connection with the PSL divestiture, the total $42,700 balance was contributed in-kind for the fair value of the 70% interest that Sanken acquired. Transactions involving PSL In accordance with the divestiture transactions of both PSL and the Sanken distribution business, the Company had both intercompany accounts payable of $1,198 and accounts receivable of $3,368 that were previously eliminated in consolidation. The previous intercompany receivable balance of $3,368 was moved into trade and other accounts receivable due from related party as of March 28, 2020. In addition, as a result of PSL taking over the Sanken distribution business, at September 25, 2020, the Company reflected a related accounts receivable balance of $4,909. This amount includes a reduction of $3,368 from payments made by PSL during the six-month period ended September 25, 2020. In addition, the Company, through PSL entered into a Development Agreement with Sanken whereby the Company and Sanken jointly own a specific wafer technology and share the reimbursement of development costs incurred by the Company. Sanken reimbursed $360 and $720 in the three- and six-month periods ended September 27, 2019. The Company continues to purchase in-process products from PSL. Purchases of various products from PSL totaled $9,967 and $21,890 for the three- and six-month periods ended September 25, 2020. This amount includes $1,700 and $3,500 of price support payments made for the three- and six-month periods ended September 25, 2020 and the reduction of $1,760 and $1,198 of intercompany balances for the three- and six-month periods ended September 25, 2020. Accounts payable to PSL included in amounts due to related party totaled $1,157 as of September 25, 2020. Note Receivable from PSL On March 28, 2020, in connection with the PSL divestiture, the Company contributed the forgiveness of the fair value of $15,000 out of the $66,377 total debt owed by PSL to the Company, which was previously eliminated in consolidation as of March 27, 2020. As a result of this divestiture, on March 28, 2020, the $51,377 note receivable from PSL is now classified on the Company’s balance sheet as related party note receivable. The related party note receivable held by the Company has a maturity date of March 28, 2027 and bears interest rate of 2.70%, which is a market rate determined by IRS guidance at the time of the divestiture. The entire receivable of $51,377 plus accrued interest of $762 was repaid on October 14, 2020. Consulting Agreement The Company entered into a board executive advisor agreement (the “Consulting Agreement”) with Reza Kazerounian in September 2017, before Mr. Kazerounian became a member of the Company’s board of directors, pursuant to which the Company engaged Mr. Kazerounian to serve as executive advisor to the board of directors and the office of Chief Executive Officer. The Consulting Agreement provides for a fee payable to Mr. Kazerounian on a monthly basis in exchange for his services (which fee was reduced from $30 per month to $19 per month in connection with Mr. Kazerounian’s appointment to the board of directors in June 2018), as well as a grant of 12,000 shares of the Company’s Class L common stock and a signing bonus of $54 in connection with the execution of the Consulting Agreement. The Consulting Agreement provides that if Mr. Kazerounian is terminated by the board of directors, he will be entitled to a severance payment in the amount of $180 as well as a six-month vesting acceleration of his shares of Class L common stock. The board of directors and Mr. Kazerounian each have the right to terminate the Consulting Agreement at any time. During the six-month periods ended September 25, 2020 and September 27, 2019, the Company paid aggregate fees of $90 each quarter to Mr. Kazerounian pursuant to the Consulting Agreement. Director and Executive Officer Promissory Notes From time to time, the Company has entered into promissory notes with certain of its directors and executive officers to finance all or a part of the income and employment taxes payable by them in connection with grants of the Company’s Class A common stock and/or Class L common stock. The Company had $654 and $506 of promissory notes outstanding as of as of September 25, 2020 and March 27, 2020, respectively.
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Subsequent Events |
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events | Subsequent Events On November 2, 2020, the Company completed its IPO. The Company’s common stock is now listed on the Nasdaq Global Select Market under the ticker symbol “ALGM.” On November 2, 2020 the Company closed its IPO of 28,750,000 shares of its common stock at an offering price of $14.00 per share, of which 25,000,000 shares were sold by the Company and 3,750,000 were sold by selling stockholders, resulting in net proceeds to the Company of approximately $320,849, after deducting $20,125 of underwriting discounts and $9,026 of estimated offering costs. Immediately following the pricing of the IPO, all outstanding shares of Class A common stock and Class L common stock were automatically converted into an aggregate of 166,500,000 shares of common stock (the “Common Stock Conversion”). Outstanding shares of Class A and Class L common stock were converted to common stock in the Common Stock Conversion at conversion rates of approximately 15.822 and 13.010 shares of common stock to each share of Class A and Class L common stock, respectively. As part of the Common Stock Conversion, 2,066,468 and 1,766 shares of common stock were returned to the Company for tax payments made on behalf of holders of Class A common stock and Class L common stock, respectively, in withhold to cover tax transactions. Outstanding loan amounts related to Class L common stock in the aggregate amount of $753 were extinguished on October 2, 2020. The following table presents the respective number of shares of common stock and unvested restricted common stock issued in the Common Stock Conversion. The number of shares of common stock and unvested restricted common stock issuable are based upon the vesting provisions of the outstanding shares and reflect the shares vested and unvested at the date of conversion.
The Company has retrospectively adjusted its earnings per share to reflect the conversion of Class A common stock and Class L common stock to Common Stock resulting from the conversion. See Note 17 “Net Income per Share.” Upon completion of its IPO, the Company recognized one-time stock-based compensation charges of $40,440 in connection with the vesting of all outstanding shares of Class A common stock, and $1,593 in connection with the automatic acceleration of 25% of the standard vesting term of shares of Class L common stock. In connection with its IPO, the Company offered certain employees (excluding its named executive officers) who were eligible to receive cash bonuses under the Company’s Long-Term Cash Incentive Plan (the “LTCIP”) and/or Talent Retention Incentive Program (as amended, the “TRIP”) the opportunity to elect to receive restricted stock units (RSUs) under its 2020 Omnibus Incentive Compensation Plan in lieu of cash payouts under the LTCIP and/or TRIP, through the LTCIP/TRIP Award RSU Conversion Program (the “RSU Conversion Program”). The expense related to the LTCIP and TRIP awards elected to be exchanged in the RSU Conversion Program amounted to $607 and $421, respectively. The number of RSUs granted to employees that elected to participate in the RSU Conversion Program is determined as a percentage of the employee’s target bonus under the LTCIP or TRIP, and amounted to 589,987 and 348,999 RSUs on behalf of the LTCIP and TRIP conversion, respectively, at a grant date fair value of $14.00. If an employee elected to not to participate in the RSU Conversion Program, the LTCIP or TRIP award will continue under its existing terms and conditions. On September 30, 2020, the Company entered into a term loan credit agreement with Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent, and the other agents, arrangers and lenders party thereto, providing for a $325,000 senior secured term loan facility (the “Term Loan Facility”). On September 30, 2020, the Company also entered into a revolving facility credit agreement with Mizuho Bank, Ltd., as administrative agent and collateral agent, and the other agents, arrangers and lenders party thereto, providing for a $50,000 senior secured revolving credit facility (the “Revolving Credit Facility” and, together with the Term Loan Facility, the “Senior Secured Credit Facilities”). In connection with entering into the Revolving Credit Facility, the Company used cash on hand to repay all amounts outstanding under AML’s $25,000 line-of-credit agreement with Mizuho Bank, Ltd and AML’s $8,000 line-of-credit agreement with the Bank of Mitsubishi UFJ and terminated all commitments thereunder. On October 2, 2020, the Company repurchased an aggregate of 1,997 shares of its Class L common stock from certain of its directors and one of its non-executive employees for an aggregate purchase price of $408 in connection with, (i) in the case of such directors, the settlement of certain outstanding promissory notes issued by the Company to such directors, and (ii) in the case of such non-executive employee, to satisfy certain withholding tax obligations triggered by the vesting of such shares in accordance with the terms of the applicable award agreement. In October 2020, the Company used proceeds from the Term Loan Facility, together with cash on hand, to pay an aggregate cash dividend of $400,000 to holders of its Class A common stock. On October 14, 2020, the outstanding principal amount of, and accrued and unpaid interest on, the $51,377 related party note receivable due to the Company from PSL in connection with the PSL divestiture was prepaid in full. On November 20, 2020, the Company provided notice of repayment of $300,000 of the outstanding $325,000 Term Loan Facility using proceeds from the Company’s recently completed IPO. The notice of repayment is expected to occur during the third quarter of fiscal 2021.
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Sep. 25, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingencies at the date of the unaudited consolidated financial statements and the reported amounts of net sales and expenses during the reporting period. Such estimates relate to useful lives of fixed and intangible assets, allowances for doubtful accounts and customer returns and sales allowances. Such estimates could also relate to the net realizable value of inventory, accrued liabilities, the valuation of stock-based awards, deferred tax valuation allowances, and other reserves. On an ongoing basis, management evaluates its estimates. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements. |
Deferred Offering Costs | Deferred Offering Costs The Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholder’s equity as a reduction of the additional paid-in capital generated as a result of the offering. |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with financial institutions, which management believes to be of a high credit quality. To manage credit risk related to accounts receivables, the Company evaluates its creditworthiness of its customers and maintains allowances, to the extend necessary, for potential credit losses based upon the aging of its accounts receivable balances and known collection issues. |
Impact of Recently Adopted Accounting Standards and Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards The Company qualifies as “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 and has elected to “opt in” to the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and nonpublic companies, the Company will adopt the new or revised standard at the time nonpublic companies adopt the new or revised standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for nonpublic companies. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02” or “the new lease standard”) which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. In addition, a lessee is required to record (i) a right-of-use asset and a lease liability on its balance sheet for all leases with accounting lease terms of more than 12 months regardless of whether it is an operating or financing lease and (ii) lease expense for operating leases and amortization and interest expense for financing leases. Leases with a term of 12 months or less may be accounted for similar to prior guidance for operating leases. In July 2018, the FASB issued ASU No. 2018-11, which added an optional transition method under the new lease standard that allows companies to adopt the standard as of the beginning of the year of adoption as opposed to the earliest comparative period presented. In November 2019, the FASB issued guidance delaying the effective date for all entities, except for public business entities. In May 2020, FASB issued ASU No. 2020-05 delaying the effective date of the new lease standard for nonpublic companies to fiscal years beginning after December 15, 2021 and interim periods within those fiscal years beginning after December 15, 2022. The Company expects to adopt this guidance during fiscal year 2022 and it is currently evaluating the expected effect on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which adds an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity by decreasing the number of credit impairment models that entities use to account for debt instruments. ASU 2016-03, along with its subsequent clarifications, was effective for public companies beginning after December 15, 2019 and is effective for nonpublic companies for fiscal years beginning after December 15, 2021. The Company is evaluating the new guidance and the expected effect on its consolidated financial statements and related disclosures. In November 2019, the FASB issued guidance delaying the effective date for all entities, except for public business entities. For public entities, this guidance was effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. For nonpublic entities, this guidance is effective for annual periods beginning after December 15, 2020. In August 2018, the FASB issued ASU No. 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”), which modifies the disclosure requirements for defined benefit pension plans and other postretirement plans. ASU 2018-14 should be applied on a retrospective transition basis, and it is effective for public companies beginning after December 15, 2020 and for nonpublic companies beginning after December 15, 2021. The Company is evaluating the new guidance and the expected effect on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, regarding transfers between levels of financial instruments, amounts of unrealized gains and losses included in other comprehensive (loss) income for Level 3 fair value measurements and the information used to determine the fair value of Level 3 fair value measurements. The standard is effective for both public and nonpublic companies, for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the potential impact that the adoption of ASU 2018-13 will have on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions for intraperiod tax allocations and deferred tax liabilities for equity method investments and adds guidance on whether a step-up in tax basis of goodwill relates to a business combination or a separate transaction. This ASU is effective for fiscal years beginning after December 15, 2020 for public companies and for fiscal years beginning after December 15, 2021 for nonpublic companies, with early adoption permitted. The Company is evaluating the new guidance and the expected effect on its consolidated financial statements and related disclosures. In January 2020, the FASB issued ASU No. 2020-01 Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”), which addresses accounting for the transition into and out of the equity method and provides clarification of the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 for public companies and beginning after December 15, 2021 for nonpublic entities with early adoption permitted. The Company is currently assessing the potential impact that the adoption of ASU 2020-01 will have on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) to provide temporary optional expedients and exceptions to the contract modifications, hedge relationships, and other transactions affected by reference rate reform if certain criteria are met. This ASU, which was effective for all entities upon issuance on March 12, 2020, and may be applied through December 31, 2022, is applicable to all contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or any other reference rate expected to be discontinued. The Company is still assessing the impact that the adoption of ASU 2020-04 will have on its consolidated financial statements.
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Nature of the Business and Basis of Presentation (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow Impact of Divestiture | In accordance with the divestiture transactions noted above, the following non-cash assets and liabilities and related equity impacts attributable to the unaudited statement of cash flows are summarized below:
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Acquisition (Tables) |
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Preliminary Purchase Price Allocation | The following table summarizes the preliminary purchase price allocation recorded:
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Schedule of Finite-Lived Intangible Assets Acquired | The following table presents the estimated fair values and useful lives of the identifiable finite-life intangible assets acquired:
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Revenue from Contract with Customers (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Core End Market and Application | Net sales by core end market and application:
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Revenue from External Customers by Products and Services | Net sales by product:
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Revenue from External Customers by Geographic Areas | Net sales by geography:
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Fair Value Measurements (Tables) |
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following tables present information about the Company’s financial assets and liabilities as of September 25, 2020 and March 27, 2020 measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values:
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table shows the change in fair value of Level 3 contingent consideration in connection with the Acquisition for the six-month period ended September 25, 2020:
|
Trade Accounts Receivable, net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Trade Accounts Receivable, Net | Trade accounts receivable, net (including related party trade accounts receivable) consisted of the following:
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Schedule of Changes in Allowance for Doubtful Accounts and Returns and Sales Allowances | Changes in the Company’s allowance for doubtful accounts and returns and sales allowances were as follows:
|
Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories include material, labor and overhead and consisted of the following:
|
Property, Plant and Equipment, net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant, and Equipment | Property, plant and equipment, net is stated at cost, and consisted of the following:
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Schedule of Long-lived Assets | The geographic locations of the Company's long-lived assets, net, based on physical location of the assets, as of September 25, 2020 and March 27, 2020 are as follows:
|
Goodwill and Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Carrying Amount of Goodwill | The table below summarizes the changes in the carrying amount of goodwill as follows:
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Schedule of Intangible Assets, Net | Intangible assets, net is as follows:
|
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Schedule of Annual Amortization Expense | As of September 25, 2020, annual amortization expense of intangible assets for the next five fiscal years is expected to be as follows:
|
Other Assets, net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets, Net | The composition of other assets, net is as follows:
|
Accrued Expenses and Other Current Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses and Other Current Liabilities | The composition of accrued expenses and other current liabilities is as follows:
|
Management Long-Term Incentive Plan (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Related Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrual Activity, Payments, Removal Due to Divestitures and Balances Related to the LTIP | The accrual activity, payments, removal due to divestitures and balances related to the LTIP are as follows:
|
Other Long-Term Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Long-Term Liabilities | The composition of other long-term liabilities is as follows:
|
Retirement Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Expense Related to Defined Benefit Plan | Expense related to the non-U.S. defined benefit plan was as follows:
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Fair Value of Entity's Plan Assets | The table below sets forth the fair value of the entity’s plan assets as of September 25, 2020 and March 27, 2020, using the same three-level hierarchy of fair value inputs described in the significant accounting policies included in the audited consolidated financial statements as of March 27, 2020 and for the year then ended, which are included in the previously filed Prospectus.
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Schedule of Changes in Fair Value of Level 3 Plan Assets | The following table shows the change in fair value of Level 3 plan assets for the six-month period ended September 25, 2020:
|
Net Income per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Net Income per Share and Unaudited Pro Forma Net Income per Share | The following table sets forth the computation of diluted net income attributable to Allegro MicroSystems, Inc. per share:
Unaudited pro forma basic and diluted net income per share attributable to Allegro MicroSystems, Inc. for the three- and six-month periods ended September 25, 2020 have been prepared to give effect to the Common Stock Conversion as described below in Note 21, “Subsequent Events” as if such event had occurred on September 25, 2020.
|
Common Stock and Stock-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-Based Compensation Expense | The Company recorded stock-based compensation expense in the following expense categories of its unaudited consolidated statements of income:
|
Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Tax Provision | The Company recorded the following tax provision in its unaudited consolidated statements of income:
|
Subsequent Events (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Conversions of Stock | The following table presents the respective number of shares of common stock and unvested restricted common stock issued in the Common Stock Conversion. The number of shares of common stock and unvested restricted common stock issuable are based upon the vesting provisions of the outstanding shares and reflect the shares vested and unvested at the date of conversion.
|
Nature of the Business and Basis of Presentation - Cash Flow Impact of Divestiture (Details) - PSL - Disposal Group, Disposed of by Sale, Not Discontinued Operations $ in Thousands |
Mar. 28, 2020
USD ($)
|
---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash and cash equivalents | $ (15,332) |
Restricted cash | (1,013) |
Trade accounts receivable, net of allowances | 37 |
Accounts receivable – other | (308) |
Inventories | (32,250) |
Prepaid expenses and other current assets | (376) |
Property, plant and equipment, net | (115,341) |
Related party note receivable | 51,377 |
Equity investment in related party | 25,462 |
Other assets, net | 5,609 |
Trade accounts payable | 4,176 |
Accrued expenses and other current liabilities | 7,150 |
Current portion of related party debt | 25,000 |
Bank lines-of-credit | 10,000 |
Related party notes payable, less current portion | 17,700 |
Other long-term liabilities | (1,247) |
Additional paid-in capital | $ 19,165 |
Summary of Significant Accounting Policies - Deferred Offering Costs (Details) - USD ($) |
Sep. 25, 2020 |
Mar. 27, 2020 |
---|---|---|
Accounting Policies [Abstract] | ||
Deferred offering costs | $ 1,806,000 | $ 0 |
Acquisition - Additional Information (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Aug. 28, 2020
USD ($)
|
Sep. 25, 2020
reportingUnit
|
|
Business Acquisition [Line Items] | ||
Number of reporting units | reportingUnit | 1 | |
Voxtel | ||
Business Acquisition [Line Items] | ||
Preliminary purchase price | $ 35,081 | |
Potential payout | 15,000 | |
Fair value of earn-outs | 7,800 | |
Indefinite-life intangible assets | $ 2,400 |
Acquisition - Summary of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands |
Aug. 28, 2020 |
Sep. 25, 2020 |
Mar. 27, 2020 |
---|---|---|---|
Estimated fair value of assets acquired and liabilities assumed: | |||
Goodwill | $ 20,257 | $ 1,285 | |
Voxtel | |||
Estimated fair value of consideration: | |||
Base purchase price | $ 27,281 | ||
Contingent Consideration | 7,800 | ||
Total estimated fair value of consideration | 35,081 | ||
Estimated fair value of assets acquired and liabilities assumed: | |||
Net working capital | 3,996 | ||
Property and equipment | 57 | ||
Finite-life intangible assets | 13,600 | ||
Indefinite-life intangible assets | 2,400 | ||
Deferred tax liability | (3,843) | ||
Goodwill | 18,871 | ||
Allocated purchase price | $ 35,081 |
Acquisition - Schedule of Finite-Lived Intangible Assets Acquired (Details) - Voxtel $ in Thousands |
Aug. 28, 2020
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Finite-life intangible assets | $ 13,600 |
Completed technology | |
Business Acquisition [Line Items] | |
Useful Life | 12 years |
Finite-life intangible assets | $ 13,100 |
Customer relationships | |
Business Acquisition [Line Items] | |
Useful Life | 6 years |
Finite-life intangible assets | $ 300 |
Trademarks | |
Business Acquisition [Line Items] | |
Useful Life | 5 years |
Finite-life intangible assets | $ 200 |
Revenue from Contract with Customers - Net Sales by Core End Market and Application (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
Sep. 25, 2020 |
Sep. 27, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 136,649 | $ 163,240 | $ 251,650 | $ 315,683 |
Automotive | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 89,479 | 98,209 | 165,857 | 190,607 |
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 21,650 | 18,092 | 42,056 | 34,737 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 25,520 | 20,542 | 43,737 | 38,329 |
Wafer foundry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 0 | 16,698 | 0 | 32,988 |
Distribution of Sanken products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 0 | $ 9,699 | $ 0 | $ 19,022 |
Revenue from Contract with Customers - Net Sales by Product (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
Sep. 25, 2020 |
Sep. 27, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 136,649 | $ 163,240 | $ 251,650 | $ 315,683 |
Power integrated circuits (“PIC”) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 50,271 | 45,235 | 91,870 | 80,235 |
Magnetic sensors (“MS”) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 86,097 | 91,608 | 159,499 | 183,438 |
Photonics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 281 | 0 | 281 | 0 |
Wafer foundry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 0 | 16,698 | 0 | 32,988 |
Distribution of Sanken products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 0 | $ 9,699 | $ 0 | $ 19,022 |
Revenue from Contract with Customers - Net Sales by Geography (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
Sep. 25, 2020 |
Sep. 27, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 136,649 | $ 163,240 | $ 251,650 | $ 315,683 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 20,962 | 30,659 | 33,958 | 59,248 |
Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 3,249 | 5,200 | 5,177 | 11,208 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 24,374 | 24,140 | 42,220 | 52,281 |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 22,511 | 42,472 | 46,131 | 85,940 |
Greater China | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 37,935 | 36,696 | 70,006 | 59,960 |
South Korea | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 12,515 | 13,950 | 26,127 | 27,294 |
Other Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 15,103 | $ 10,123 | $ 28,031 | $ 19,752 |
Revenue from Contract with Customers - Additional Information (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
Mar. 27, 2020 |
|
Revenue from Contract with Customer [Abstract] | |||
Trade accounts receivable, returns, credits issued, and price protection adjustments, current | $ 19,337 | $ 17,473 | |
Trade accounts receivable, returns, credits issued, and price protection adjustments expense (credit) | $ 1,864 | $ (412) |
Fair Value Measurements - Change in Fair Value of Level 3 Contingent Consideration (Details) - Fair Value, Recurring - Level 3 $ in Thousands |
6 Months Ended |
---|---|
Sep. 25, 2020
USD ($)
| |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 0 |
Additions during the year | 7,800 |
Ending balance | $ 7,800 |
Trade Accounts Receivable, net - Summary of Trade Accounts Receivable, net (Details) - USD ($) $ in Thousands |
Sep. 25, 2020 |
Mar. 27, 2020 |
Sep. 27, 2019 |
Mar. 29, 2019 |
---|---|---|---|---|
Receivables [Abstract] | ||||
Trade accounts receivable | $ 93,657 | $ 107,223 | ||
Less: | ||||
Allowances | (338) | (288) | $ (211) | $ (412) |
Returns and sales allowances | (18,999) | (17,185) | $ (17,396) | $ (17,607) |
Related party trade accounts receivable | (16,394) | (30,293) | ||
Trade accounts receivable, net | $ 57,926 | $ 59,457 |
Trade Accounts Receivable, net - Schedule of Changes in Allowance For Doubtful Accounts and Sales Returns and Sales Allowances (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
|
Allowance for Doubtful Accounts | ||
Balance at the beginning of the period | $ 288 | $ 412 |
Charged to costs and expenses or revenue | 50 | (201) |
Write-offs, net of recoveries | 0 | 0 |
Balance at the end of the period | 338 | 211 |
Returns and Sales Allowances | ||
Balance at the beginning of the period | 17,185 | 17,607 |
Charged to costs and expenses or revenue | 64,316 | 57,155 |
Write-offs, net of recoveries | (62,502) | (57,366) |
Balance at the end of the period | 18,999 | 17,396 |
Total | ||
Balance at the beginning of the period | 17,473 | 18,019 |
Charged to costs and expenses or revenue | 64,366 | 56,954 |
Write-offs, net of recoveries | (62,502) | (57,366) |
Balance at the end of the period | $ 19,337 | $ 17,607 |
Inventories - Schedule Of Inventory (Details) - USD ($) $ in Thousands |
Sep. 25, 2020 |
Mar. 27, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 9,415 | $ 12,411 |
Work in process | 61,916 | 87,606 |
Finished goods | 30,061 | 24,659 |
Finished goods – consigned | 3,404 | 2,551 |
Total | $ 104,796 | $ 127,227 |
Inventories - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
Sep. 25, 2020 |
Sep. 27, 2019 |
|
Inventory [Line Items] | ||||
Recorded inventory provisions | $ 490 | $ 473 | $ 2,073 | $ 1,530 |
Voxtel | ||||
Inventory [Line Items] | ||||
Inventory acquired, step up basis | $ 3,120 |
Property, Plant and Equipment, net - Schedule of PPE (Details) - USD ($) $ in Thousands |
Sep. 25, 2020 |
Mar. 27, 2020 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total | $ 614,384 | $ 907,951 |
Less accumulated depreciation | (396,483) | (575,621) |
Total | 217,901 | 332,330 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 23,419 | 27,898 |
Buildings, building improvements and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 89,433 | 150,402 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 476,338 | 694,215 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 6,690 | 7,517 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 18,504 | $ 27,919 |
Property, Plant and Equipment, net - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
Sep. 25, 2020 |
Sep. 27, 2019 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 11,797 | $ 15,540 | $ 22,606 | $ 30,570 |
Prepaid tooling costs | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization expense | $ 19 | $ 30 | $ 36 | $ 62 |
Property, Plant and Equipment, net - Schedule of Long Lived Assets (Details) - USD ($) $ in Thousands |
Sep. 25, 2020 |
Mar. 27, 2020 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 219,294 | $ 333,646 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 40,659 | 152,536 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 127,274 | 106,618 |
Thailand | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 41,519 | 62,380 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 9,842 | $ 12,112 |
Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands |
6 Months Ended |
---|---|
Sep. 25, 2020
USD ($)
| |
Goodwill [Roll Forward] | |
43917 | $ 1,285 |
Goodwill arising from acquisition | 18,871 |
Currency translation | 101 |
44099 | $ 20,257 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Aug. 28, 2020 |
Sep. 25, 2020 |
Sep. 27, 2019 |
Sep. 25, 2020 |
Sep. 27, 2019 |
Mar. 27, 2020 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 20,257 | $ 20,257 | $ 1,285 | |||
Intangible assets amortization expense | $ 671 | $ 418 | $ 1,384 | $ 845 | ||
Patents | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Estimated useful life | 10 years | 10 years | ||||
Voxtel | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Preliminary purchase price | $ 35,081 | |||||
Goodwill | 18,871 | |||||
Finite-lived intangible assets | 13,600 | |||||
Indefinite-lived intangible assets acquired | $ 2,400 |
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands |
Sep. 25, 2020 |
Mar. 27, 2020 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2021 | $ 1,584 | |
2022 | 3,057 | |
2023 | 2,917 | |
2024 | 2,788 | |
2025 | 2,598 | |
Thereafter | 23,330 | |
Net Carrying Amount | $ 36,274 | $ 19,958 |
Other Assets, net (Details) - USD ($) $ in Thousands |
Sep. 25, 2020 |
Mar. 27, 2020 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
VAT receivables long-term, net | $ 4,988 | $ 3,039 |
Deposits | 2,376 | 2,399 |
Prepaid contracts long-term | 3,609 | 1,282 |
Deferred offering costs | 1,806 | 0 |
Other | 2,000 | 2,090 |
Total | $ 14,779 | $ 8,810 |
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Sep. 25, 2020 |
Mar. 27, 2020 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued management incentive (LTIP) | $ 748 | $ 11,488 |
Accrued management incentive (non-LTIP) | 7,176 | 6,273 |
Accrued salaries and wages | 18,105 | 12,069 |
Base acquisition purchase price due | 17,244 | 0 |
Accrued vacation | 5,804 | 7,146 |
Accrued severance | 4,417 | 6,065 |
Accrued professional fees | 4,258 | 4,036 |
Accrued income taxes | 1,324 | 3,408 |
Accrued utilities | 666 | 1,114 |
Other current liabilities | 5,187 | 5,256 |
Total | $ 64,929 | $ 56,855 |
Management Long-Term Incentive Plan (Details) $ in Thousands |
6 Months Ended |
---|---|
Sep. 25, 2020
USD ($)
| |
Current Liabilities | |
Balance at the beginning of the period | $ 11,488 |
Balance at the end of the period | 748 |
Long-Term Liabilities | |
Balance at the beginning of the period | 2,439 |
Balance at the end of the period | $ 0 |
LTIP | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Rolling performance period | 3 years |
Current Liabilities | |
Balance at the beginning of the period | $ 11,488 |
Reclassification | 1,004 |
Payments | (11,096) |
Removal due to divestiture | (378) |
Accruals | (270) |
Balance at the end of the period | 748 |
Long-Term Liabilities | |
Balance at the beginning of the period | 2,439 |
Reclassification | (1,004) |
Payments | 0 |
Removal due to divestiture | (398) |
Accruals | (1,037) |
Balance at the end of the period | $ 0 |
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands |
Sep. 25, 2020 |
Mar. 27, 2020 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Accrued management incentive (LTIP) | $ 0 | $ 2,439 |
Accrued management incentive (non-LTIP) | 1,012 | 2,304 |
Accrued retirement | 9,213 | 8,005 |
Accrued contingent consideration | 7,800 | 0 |
Provision for uncertain tax positions (net) | 2,952 | 2,855 |
Other | 274 | 275 |
Total | $ 21,251 | $ 15,878 |
Retirement Plans - Schedule of Expense Related to Defined Benefit Plan (Details) - Pension Plan - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
Sep. 25, 2020 |
Sep. 27, 2019 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 277 | $ 238 | $ 547 | $ 475 |
Interest cost | 156 | 168 | 308 | 334 |
Expected return on plan assets | (74) | (82) | (152) | (164) |
Net acquired/transferred obligation | 0 | 0 | 0 | 0 |
Amortization of net transition asset | 0 | (3) | 0 | (6) |
Amortization of prior service cost | 2 | 2 | 4 | 4 |
Actuarial loss | 45 | 24 | 79 | 48 |
Net periodic pension expense | $ 406 | $ 347 | $ 786 | $ 691 |
Commitment and Contingencies (Details) - USD ($) |
Sep. 25, 2020 |
Mar. 27, 2020 |
---|---|---|
Loss Contingencies [Line Items] | ||
Indemnification accruals | $ 0 | $ 0 |
Environmental accruals | $ 0 | $ 0 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Operating lease agreement term | 1 year | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Operating lease agreement term | 7 years |
Net Income per Share - Schedule of Computation of Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
Sep. 25, 2020 |
Sep. 27, 2019 |
|
Earnings Per Share [Abstract] | ||||
Net income attributable to Allegro MicroSystems, Inc. | $ 9,584 | $ 11,565 | $ 14,404 | $ 14,749 |
Net income attributable to common stockholders, basic | 9,618 | 11,583 | 14,472 | 14,818 |
Net income attributable to common stockholders, diluted | $ 9,618 | $ 11,583 | $ 14,472 | $ 14,818 |
Weighted average basic and diluted common shares (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 |
Basic and diluted net income attributable to Allegro MicroSystems, Inc. per share (in dollars per share) | $ 0.96 | $ 1.16 | $ 1.44 | $ 1.47 |
Basic and diluted net income attributable to common stockholders per share (in dollars per share) | $ 0.96 | $ 1.16 | $ 1.45 | $ 1.48 |
Net Income per Share - Narrative (Details) - Common Stock, Class A - Common Stock |
6 Months Ended |
---|---|
Sep. 25, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Priority dividend rate | 8.00% |
Annualized return on capital, triggering percent, remaining distributions split between Class A and Class L shareholders | 8.00% |
Common Stock and Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2020 |
Sep. 27, 2019 |
Sep. 25, 2020 |
Sep. 27, 2019 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 580 | $ 374 | $ 1,025 | $ 748 |
Cost of sales | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 53 | 45 | 150 | 90 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 32 | 26 | 53 | 45 |
Selling, general and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 495 | $ 303 | $ 822 | $ 613 |
Income Taxes - Schedule of Tax Provision (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2020
USD ($)
|
Sep. 27, 2019
USD ($)
|
Sep. 25, 2020
USD ($)
|
Sep. 27, 2019
USD ($)
|
|
Income Tax Disclosure [Abstract] | ||||
Operating taxes | $ 1,589 | $ 2,566 | $ 2,405 | $ 4,277 |
Discrete tax items | 493 | 267 | 205 | 5,891 |
Provision for income taxes | $ 2,082 | $ 2,833 | $ 2,610 | $ 10,168 |
Annual operating tax rate | 0.136 | 0.178 | 0.141 | 0.171 |
Effective tax rate | 17.80% | 19.70% | 15.30% | 40.70% |
Income Taxes - Narrative (Details) $ in Millions |
6 Months Ended |
---|---|
Sep. 27, 2019
USD ($)
| |
Income Tax Disclosure [Abstract] | |
Settlement of IRS transfer pricing audits | $ 5.5 |
Label | Element | Value |
---|---|---|
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 5,188,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 3,514,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 5,385,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 6,354,000 |
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