Segment Information

9 Months Ended

Oct. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment information

Segment Information

The Company had five operating segments that existed prior to the third quarter of fiscal year 2017 and currently has four. The Company’s CEO functions as the CODM. The Company’s CODM makes operating decisions and assesses performance based on these operating segments. The four operating segments: Protection Products Group, Power and High Reliability Products Group, Signal Integrity Products Group, and Wireless and Sensing Products Group, all have similar economic characteristics and have been aggregated into one reportable segment identified in the table below as the “Semiconductor Products Group”.

On August 5, 2016, the Company completed its divestiture of its Snowbush IP business. Beginning in the third quarter of fiscal year 2017, the Company no longer has a Systems Innovation Group or an “All others” category, which used to be a separate operating segment.

The Company’s assets are commingled among the various reporting units and the CODM does not use that information in making operating decisions or assessing performance. Therefore, the Company has not included asset information by segment below.

Net sales by segment are as follows:

	Three Months Ended				Nine Months Ended
(in thousands)	October 30, 2016		October 25, 2015		October 30, 2016		October 25, 2015
Semiconductor Products Group	$	137,185	$	115,795	$	404,036	$	369,690
All others	—		15		205		1,920
Total	$	137,185	$	115,810	$	404,241	$	371,610

Income by segment and reconciliation to consolidated operating income:

	Three Months Ended					Nine Months Ended
(in thousands)	October 30, 2016		October 25, 2015			October 30, 2016			October 25, 2015
Semiconductor Products Group	$	33,013	$	22,019		$	92,973		$	70,054
All others	25,214		(1,818		)	22,738			(6,375		)
Operating Income by segment	58,227		20,201			115,711			63,679
Items to reconcile segment operating income to consolidated income before taxes
Intangible amortization and impairments	6,286		6,308			19,017			18,648
Share-based compensation	9,395		5,117			21,199			13,397
Changes in the fair value of contingent earn-out obligations	—		(14,186		)	(162		)	(13,618		)
Restructuring charges	—		962			—			4,526
Environmental reserve	—		—			—			2,855
Other non-segment related (income) expenses	3,139		2,792			5,938			10,073
Amortization of fair value adjustments related to acquired PP&E	308		310			925			948
Interest expense, net	1,890		1,964			5,857			5,698
Non-operating expense, net	690		777			871			1,152
Income before taxes	$	36,519	$	16,157		$	62,066		$	20,000

Information by Product Line

The Company operates exclusively in the semiconductor industry and primarily within the analog and mixed-signal sector.

The table below provides net sales activity by product line on a comparative basis for all periods.

	Three Months Ended									Nine Months Ended
(in thousands, except percentages)	October 30, 2016					October 25, 2015				October 30, 2016					October 25, 2015
Signal Integrity	$	60,550		44	%	$	52,449	45	%	$	193,745		48	%	$	165,780	44	%
Protection	40,250			29	%	33,225		29	%	108,296			27	%	105,339		28	%
Wireless and Sensing	24,070			18	%	16,567		14	%	60,514			15	%	54,898		15	%
Power and High-Reliability	15,984			12	%	13,554		12	%	45,150			11	%	43,673		12	%
Systems Innovation	—			—	%	15		—	%	205			—	%	1,920		1	%
Other: Warrant Shares	(3,669		)	(3	)%	—		—	%	(3,669		)	(1	)%	—		—	%
Total net sales	$	137,185		100	%	$	115,810	100	%	$	404,241		100	%	$	371,610	100	%

The cost of the Warrant granted is recognized as an offset to net sales over the respective performance period (see Note 5 for discussion regarding Share-Based Compensation).

Geographic Information

The Company generates virtually all of its sales from its Semiconductor Products Group through sales of analog and mixed-signal devices.

Net sales activity by geographic region is as follows:

	Three Months Ended				Nine Months Ended
	October 30, 2016		October 25, 2015		October 30, 2016		October 25, 2015
Asia-Pacific	80	%	70	%	79	%	72	%
North America	16	%	20	%	16	%	18	%
Europe	7	%	10	%	8	%	10	%
Other: Warrant Shares	(3	)%	—	%	(3	)%	—	%
	100	%	100	%	100	%	100	%

The Company attributes sales to a country based on the ship-to address. The table below summarizes sales activity to countries that represented greater than 10% of total net sales for one or more of the periods presented:

	Three Months Ended				Nine Months Ended
(percentage of total sales)	October 30, 2016		October 25, 2015		October 30, 2016		October 25, 2015
China (including Hong Kong)	46	%	45	%	45	%	44	%
United States	11	%	14	%	11	%	12	%
Other: Warrant Shares	(3	)%	—	%	(3	)%	—	%

The Company’s regional income (loss) from continuing operations before income taxes is as follows:

	Three Months Ended						Nine Months Ended
(in thousands)	October 30, 2016			October 25, 2015			October 30, 2016			October 25, 2015
Domestic	$	937		$	21,146		$	(13,048	)	$	3,785
Canada	31,385			2,440			49,302			16,494
United Kingdom	3,568			4,984			14,150			17,328
Switzerland	764			(13,411		)	7,791			(5,063		)
Japan	344			1,424			2,470			2,486
Other Foreign	(479		)	(426		)	1,401			(15,030		)
Total	$	36,519		$	16,157		$	62,066		$	20,000

Additionally, the impact of the Warrant is included in the domestic performance above.