Immaterial Restatement of Prior Period Financial Statements

12 Months Ended

Jan. 26, 2020

Accounting Changes and Error Corrections [Abstract]

Immaterial Restatement of Prior Period Financial Statements

Correction of Immaterial Errors in Prior Period Financial Statements

During the fourth quarter of fiscal year 2020, management identified certain immaterial errors related to share-based compensation expense of market-based awards granted during fiscal years 2018, 2019 and 2020. At the inception of these grants, the Company appropriately determined that the awards contained a market condition and that the effect of the market condition should be reflected in the grant date fair value of the awards, with the resulting compensation expense fixed at inception and recognized ratably over the requisite service period, regardless of when, if ever, the market condition is satisfied. The actual awards, however, were incorrectly accounted for as performance-based awards, whereby the number of shares expected to vest and corresponding compensation expense was adjusted on a quarterly basis. The Company assessed the materiality of the errors from a qualitative and quantitative perspective, and concluded that the impact of the errors is not material. Therefore, the correction of the errors did not require the amendment of the Company's previously filed Annual Reports on Form 10-K or its Quarterly Reports on Form 10-Q for the impacted periods. The Company has corrected its consolidated financial statements for these errors for all annual periods presented in this Annual Report on Form 10-K, as well as the unaudited interim financial information presented in Note 21.

The impact of the corrections on the Company's Statements of Income and Statements of Comprehensive Income are presented in the table below:

	Fiscal Year Ended
	January 27, 2019					January 28, 2018
(in thousands)	As Reported			As Corrected		As Reported		As Corrected
Selling, general and administrative	$	151,397		$	145,246	$	146,303	$	148,146
Product development and engineering	$	109,918		$	109,047	$	104,798	$	105,070
Total operating costs and expenses	$	278,545		$	271,523	$	283,235	$	285,350
Operating income	$	98,477		$	105,499	$	68,736	$	66,621
Income before taxes and equity in net gains (losses) of equity method investments	$	63,098		$	70,120	$	59,871	$	57,756
(Benefit) provision for income taxes	$	(84	)	$	355	$	23,191	$	22,853
Net income before equity in net gains (losses) of equity method investments	$	63,182		$	69,765	$	36,680	$	34,903
Net income	$	63,056		$	69,639	$	36,426	$	34,649
Earnings per share:
Basic	$	0.96		$	1.06	$	0.55	$	0.52
Diluted	$	0.92		$	1.02	$	0.54	$	0.51
Comprehensive income	$	60,649		$	67,232	$	36,520	$	34,743

The impact of the corrections on the Company's Balance Sheets are presented in the table below:

	As of
	January 27, 2019				January 28, 2018
(in thousands)	As Reported		As Corrected		As Reported		As Corrected
Deferred tax assets	$	14,362	$	14,261	$	4,236	$	4,574
Total assets	$	1,062,881	$	1,062,780	$	1,085,776	$	1,086,114
Additional paid-in capital	$	456,791	$	451,884	$	415,056	$	417,171
Retained earnings	$	574,930	$	579,736	$	502,346	$	500,569
Total stockholders' equity	$	682,681	$	682,580	$	665,013	$	665,351
Total equity	$	682,681	$	682,580	$	665,013	$	665,351
Total liabilities and equity	$	1,062,881	$	1,062,780	$	1,085,776	$	1,086,114

There was no impact to the total operating cash flows in the Statement of Cash Flows for any year or period presented.