x | 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 |
Delaware | 95-2119684 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock par value $0.01 per share | SMTC | The Nasdaq Global Select Market |
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ | |||
Emerging growth company | ¨ |
• | fluctuation in the Company’s future results; |
• | downturns in the business cycle; |
• | rapid decline in the average selling prices of the Company's products; |
• | reduced demand for the Company’s products due to global economic conditions; |
• | changes in the U.S. and global social, political, regulatory and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment, including potential increases on tariffs of goods imported into the U.S.; |
• | export restrictions and laws affecting the Company's trade and investments including the adoption and expansion of trade restrictions, including on Huawei Technologies Co., Ltd., or the occurrence of trade wars; |
• | business interruptions; |
• | the Company’s reliance on a limited number of suppliers and subcontractors for components and materials; |
• | potentially insufficient liability insurance if the Company’s products are found to be defective; |
• | obsolete inventories as a result of changes in demand and change in life cycles for the Company’s products; |
• | the Company’s inability to successfully develop and sell new products; |
• | lengthy and expensive product qualification processes without any assurance of product sales; |
• | the Company’s products failing to meet industry standards; |
• | the Company’s inability to protect intellectual property rights; |
• | the Company suffering losses if its products infringe the intellectual property rights of others; |
• | the Company’s need to commit resources to product production prior to receipt of purchase commitments; |
• | increased business risk resulting from significant business with foreign customers; |
• | the Company’s foreign currency exposures; |
• | the Company's inability to adequately compete against larger, more established entities; |
• | increased competition due to industry consolidation; |
• | the loss of any one of the Company’s significant customers; |
• | volatility of customer demand; |
• | termination of a contract by a distributor; |
• | sales of our products on the gray market; |
• | the Company’s failure to maintain effective internal control over financial reporting and disclosure controls and procedures; |
• | government regulations and other standards, including those that impose operational and reporting requirements; |
• | any impact on the Company from changes leading up to and following the United Kingdom’s likely exit from the European Union; |
• | the Company’s failure to comply with applicable environmental regulations; |
• | increase in the Company’s cost of doing business as a result of having to comply with the codes of conduct of certain of the Company’s customers and suppliers; |
• | changes in tax law, including effective tax rates; |
• | taxation of Company sales in non-U.S. jurisdictions; |
• | potential increased tax liabilities and effective tax rate if the Company needs to repatriate funds held by foreign subsidiaries; |
• | the Company’s limited experience with government contracting; |
• | potential government investigations and inquiries; |
• | loss of the Company’s key personnel; |
• | risks associated with companies the Company has acquired in the past and may acquire in the future and the Company’s ability to successfully integrate acquired businesses and benefit from expected synergies; |
• | the Company’s reliance on certain critical information systems for the operation of its business; |
• | the Company may be required to recognize additional impairment charges; |
• | loss of value of investments in entities not under our control; |
• | the Company may not receive accurate, complete or timely financial information from entities for which the Company is required to consolidate such information; |
• | the Company’s ability to generate cash to service its debt obligations; |
• | restrictive covenants in the Company’s credit agreement which may restrict its ability to pursue its business strategies; |
• | costs associated with the Company’s indemnification of certain customers, distributors and other parties; |
• | the Company’s share price could be subject to extreme price fluctuations; |
• | the impact on the Company’s common stock price if securities or industry analysts do not publish reports about the Company’s business or adversely change their recommendations regarding the Company’s common stock; |
• | anti-takeover provisions in the Company’s organizational documents could make an acquisition of the Company more difficult; and |
• | the Company is subject to litigation risks which may be costly to defend |
ITEM 1. | Financial Statements |
Three Months Ended | |||||||
April 28, 2019 | April 29, 2018 | ||||||
Net sales | $ | $ | |||||
Cost of sales | |||||||
Gross profit | |||||||
Operating costs and expenses: | |||||||
Selling, general and administrative | |||||||
Product development and engineering | |||||||
Intangible amortization | |||||||
Changes in the fair value of contingent earn-out obligations | ( | ) | |||||
Total operating costs and expenses | |||||||
Operating income (loss) | ( | ) | |||||
Interest expense, net | ( | ) | ( | ) | |||
Non-operating income, net | |||||||
Income (loss) before taxes and equity in net losses of equity method investments | ( | ) | |||||
(Benefit) for income taxes | ( | ) | ( | ) | |||
Net income before equity in net losses of equity method investments | |||||||
Equity in net losses of equity method investments | ( | ) | ( | ) | |||
Net income | $ | $ | |||||
Earnings per share: | |||||||
Basic | $ | $ | |||||
Diluted | $ | $ | |||||
Weighted average number of shares used in computing earnings per share: | |||||||
Basic | |||||||
Diluted |
Three Months Ended | |||||||
April 28, 2019 | April 29, 2018 | ||||||
Net income | $ | $ | |||||
Other comprehensive income, net: | |||||||
Unrealized (loss) gain on foreign currency cash flow hedges | ( | ) | |||||
Realized gain on foreign currency cash flow hedges | ( | ) | |||||
Change in employee benefit plans | ( | ) | |||||
Other comprehensive (loss) income, net | ( | ) | |||||
Comprehensive income | $ | $ |
April 28, 2019 | January 27, 2019 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Accounts receivable, less allowances of $662 and $774, respectively | |||||||
Inventories | |||||||
Prepaid taxes | |||||||
Other current assets | |||||||
Total current assets | |||||||
Non-current assets: | |||||||
Property, plant and equipment, net of accumulated depreciation of $199,723 and $196,033, respectively | |||||||
Deferred tax assets | |||||||
Goodwill | |||||||
Other intangible assets, net | |||||||
Other assets | |||||||
TOTAL ASSETS | $ | $ | |||||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | $ | |||||
Accrued liabilities | |||||||
Deferred revenue | |||||||
Current portion - long-term debt | |||||||
Total current liabilities | |||||||
Non-current liabilities: | |||||||
Deferred tax liabilities | |||||||
Long term debt, less current portion | |||||||
Other long-term liabilities | |||||||
Commitments and contingencies (Note 11) | |||||||
Stockholders’ equity: | |||||||
Common stock, $0.01 par value, 250,000,000 shares authorized, 78,136,144 issued and 66,644,921 outstanding and 78,136,144 issued and 65,238,255 outstanding, respectively | |||||||
Treasury stock, at cost, 11,491,223 shares and 12,897,889 shares, respectively | ( | ) | ( | ) | |||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Total stockholders’ equity | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ |
Common Stock | Accumulated Other | |||||||||||||||||||||||||
Number of Shares Outstanding | Amount | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Comprehensive Loss | Stockholders’ Equity | ||||||||||||||||||||
Balance at January 27, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ) | ( | ) | |||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||
Repurchase of outstanding common stock | ( | ) | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||
Treasury stock reissued | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Balance at April 28, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
Common Stock | Accumulated Other | |||||||||||||||||||||||||
Number of Shares Outstanding | Amount | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Comprehensive (Loss) Income | Stockholders’ Equity | ||||||||||||||||||||
Balance at January 28, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||
Cumulative-effect adjustment to beginning balance from adoption of ASU 2014-09 | — | — | — | — | — | |||||||||||||||||||||
Cumulative-effect adjustment to beginning balance from adoption of ASU 2016-16 | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | |||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||
Repurchase of outstanding common stock | ( | ) | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||
Treasury stock reissued | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Balance at April 29, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
Three Months Ended | |||||||
April 28, 2019 | April 29, 2018 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Accretion of deferred financing costs and debt discount | |||||||
Deferred income taxes | ( | ) | |||||
Share-based compensation and warrant costs | |||||||
Gain on disposition of assets | ( | ) | ( | ) | |||
Earn-out liabilities | ( | ) | |||||
Equity in net losses of equity method investments | |||||||
Corporate owned life insurance, net | ( | ) | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | ( | ) | |||||
Inventories | ( | ) | |||||
Other assets | ( | ) | |||||
Accounts payable | ( | ) | |||||
Accrued liabilities | ( | ) | ( | ) | |||
Deferred revenue | ( | ) | |||||
Income taxes payable | ( | ) | ( | ) | |||
Other liabilities | ( | ) | ( | ) | |||
Net cash provided by operating activities | |||||||
Cash flows from investing activities: | |||||||
Proceeds from sales of property, plant and equipment | |||||||
Purchase of property, plant and equipment | ( | ) | ( | ) | |||
Purchase of investments | ( | ) | ( | ) | |||
Proceeds from sale of investments | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities: | |||||||
Payments of term loans | ( | ) | ( | ) | |||
Payment for employee share-based compensation payroll taxes | ( | ) | ( | ) | |||
Proceeds from exercise of stock options | |||||||
Repurchase of outstanding common stock | ( | ) | ( | ) | |||
Net cash used in financing activities | ( | ) | ( | ) | |||
Net decrease in cash and cash equivalents | ( | ) | ( | ) | |||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ | |||||
Supplemental disclosure of cash flow information | |||||||
Income taxes paid | $ | $ | |||||
Interest paid | $ | $ | |||||
Non-cash items | |||||||
Capital expenditures in accounts payable | $ | $ |
Three Months Ended | |||||||
(in thousands, except per share amounts) | April 28, 2019 | April 29, 2018 | |||||
Net income | $ | $ | |||||
Weighted average common shares outstanding - basic | |||||||
Dilutive effect of stock options and restricted stock units | |||||||
Weighted average common shares outstanding - diluted | |||||||
Basic earnings per common share | $ | $ | |||||
Diluted earnings per common share | $ | $ | |||||
Anti-dilutive shares not included in the above calculations |
Three Months Ended | |||||||
(in thousands) | April 29, 2018 | ||||||
Revenue offset | $ | $ | |||||
Cost of sales | |||||||
Selling, general and administrative | |||||||
Product development and engineering | |||||||
Share-based compensation | $ | $ |
April 28, 2019 | |||
Tranche 1 | Tranche 2 | ||
Expected life, in years | |||
Estimated volatility | |||
Dividend yield | |||
Risk-free interest rate | |||
Weighted average fair value on grant date | $ | $ |
April 28, 2019 | January 27, 2019 | ||||||||||||||||||||||
(in thousands) | Market Value | Adjusted Cost | Gross Unrealized Gain | Market Value | Adjusted Cost | Gross Unrealized Gain | |||||||||||||||||
Convertible debt | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Total other assets | $ | $ | $ | $ | $ | $ |
April 28, 2019 | January 27, 2019 | ||||||||||||||
(in thousands) | Market Value | Adjusted Cost | Market Value | Adjusted Cost | |||||||||||
Within 1 year | $ | $ | $ | $ | |||||||||||
After 1 year through 5 years | |||||||||||||||
Total investments | $ | $ | $ | $ |
Fair Value as of April 28, 2019 | Fair Value as of January 27, 2019 | ||||||||||||||||||||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||
Convertible debt | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||||
Total financial assets | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||
AptoVision Earn-out | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Cycleo Earn-out | |||||||||||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||||
Total financial liabilities | $ | $ | $ | $ | $ | $ | $ | $ |
(in thousands) | AptoVision | Cycleo | Total | ||||||||
Balance at January 27, 2019 | $ | $ | $ | ||||||||
Changes in the fair value of contingent earn-out obligations | ( | ) | ( | ) | |||||||
Balance at April 28, 2019 | $ | $ | $ |
(in thousands) | April 28, 2019 | January 27, 2019 | |||||
Raw materials | $ | $ | |||||
Work in progress | |||||||
Finished goods | |||||||
Inventories | $ | $ |
(in thousands) | Signal Integrity | Wireless and Sensing | Protection | Total | |||||||||||
Balance at January 27, 2019 | $ | $ | $ | $ | |||||||||||
Additions | |||||||||||||||
Balance at April 28, 2019 | $ | $ | $ | $ |
April 28, 2019 | January 27, 2019 | ||||||||||||||||||||||||
(in thousands) | Estimated Useful Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Core technologies | 5-8 years | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
Customer relationships | 3-10 years | ( | ) | ( | ) | ||||||||||||||||||||
Total finite-lived intangible assets | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ |
Three Months Ended | |||||||
(in thousands) | April 28, 2019 | April 29, 2018 | |||||
Core technologies | $ | $ | |||||
Customer relationships | |||||||
Total amortization expense | $ | $ |
(in thousands) | Net Carrying Value | ||
Value at January 27, 2019 | $ | ||
In-process research and development through acquisitions | |||
Value at April 28, 2019 | $ |
Balance as of | |||||||
(in thousands) | April 28, 2019 | January 27, 2019 | |||||
Term loans | $ | $ | |||||
Revolving loans | |||||||
Total debt | |||||||
Current portion | ( | ) | ( | ) | |||
Total long-term debt | |||||||
Debt issuance costs | ( | ) | ( | ) | |||
Total long-term debt, net of debt issuance costs | $ | $ | |||||
Weighted-average interest rate | % | % |
(in thousands) | |||
Fiscal Year Ending: | |||
2020 | $ | ||
2021 | |||
2022 | |||
Total Term Loans | $ |
(in thousands) | |||
Balance at January 27, 2019 | $ | ||
Additions/(decreases) based on tax positions related to the current year | ( | ) | |
Balance at April 28, 2019 | $ |
(in thousands) | April 28, 2019 | January 27, 2019 | |||||
Deferred tax assets - non-current | $ | $ | |||||
Other long-term liabilities | |||||||
Total accrued taxes | $ | $ |
Three Months Ended | |||||||
(in thousands) | April 28, 2019 | April 29, 2018 | |||||
Domestic | $ | ( | ) | $ | ( | ) | |
Foreign | |||||||
Total | $ | $ | ( | ) |
(in thousands) | |||
Operating lease cost | $ | ||
Short-term lease cost | |||
Sublease income | ( | ) | |
Total lease cost | $ |
(in thousands) | |||
Cash paid for amounts included in the measurement of lease liabilities | $ | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ |
Weighted-average remaining lease term - operating leases | ||
Weighted-average discount rate - operating leases | % |
(in thousands) | |||
Operating lease right-of-use assets (1) | $ | ||
Other current liabilities (1) | $ | ||
Operating lease liabilities (1) | |||
Total operating lease liabilities | $ |
(in thousands) | |||
Fiscal Year Ending: | |||
2020 (remaining nine months) | $ | ||
2021 | |||
2022 | |||
2023 | |||
2024 | |||
2025 | |||
Thereafter | |||
Total lease payments | |||
Less imputed interest | ( | ) | |
Total | $ |
(in thousands) | January 27, 2019 | ||||||
Accrued liabilities | $ | $ | |||||
Other long-term liabilities | |||||||
Total deferred compensation liabilities under this plan | $ | $ |
Balance at April 28, 2019 | Balance at January 27, 2019 | ||||||||||||||||||||||
(in thousands) | Cycleo | AptoVision | Total | Cycleo | AptoVision | Total | |||||||||||||||||
Compensation expense | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Not conditional upon continued employment | |||||||||||||||||||||||
Total liability | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Amount expected to be settled within twelve months | $ | $ | $ |
Three Months Ended | |||||
(percentage of net sales) | April 28, 2019 | April 29, 2018 | |||
Huawei Technologies Co., Ltd. (and affiliates) | % | % | |||
Trend-tek Technology Ltd (and affiliates) | % | % | |||
Frontek Technology Corporation (and affiliates) | % | % | |||
Arrow Electronics (and affiliates) | % | % | |||
Samsung Electronics (and affiliates) | % | % | |||
Premier Technical Sales Korea, Inc. (and affiliates) (1) | % | % |
Balance as of | |||||
(percentage of net sales) | April 28, 2019 | January 27, 2019 | |||
Huawei Technologies Co., Ltd. (and affiliates) | % | % | |||
Frontek Technology Corporation (and affiliates) | % | % | |||
Trend-tek Technology Ltd (and affiliates) | % | % |
Three Months Ended | |||||||
(in thousands) | April 28, 2019 | April 29, 2018 | |||||
Semiconductor Products Group | $ | $ | |||||
Total | $ | $ |
Three Months Ended | |||||||
(in thousands) | April 28, 2019 | April 29, 2018 | |||||
Semiconductor Products Group | $ | $ | |||||
Operating income by segment | |||||||
Items to reconcile segment operating income to consolidated income before taxes | |||||||
Share-based compensation | |||||||
Intangible amortization | |||||||
Changes in the fair value of contingent earn-out obligations | ( | ) | |||||
Other non-segment related expenses | |||||||
Interest expense, net | |||||||
Non-operating expense, net | ( | ) | ( | ) | |||
Income before taxes | $ | $ | ( | ) |
Three Months Ended | |||||||||||||
(in thousands, except percentages) | April 28, 2019 | April 29, 2018 | |||||||||||
Signal Integrity | $ | % | $ | % | |||||||||
Protection | % | % | |||||||||||
Wireless and Sensing | % | % | |||||||||||
Other: Warrant Shares (1) | % | ( | ) | ( | )% | ||||||||
Total net sales | $ | % | $ | % |
Three Months Ended | |||||||
(in thousands) | April 28, 2019 | April 29, 2018 | |||||
Distributor | $ | $ | |||||
Direct | |||||||
Other: Warrant Shares | ( | ) | |||||
Total net sales | $ | $ |
Three Months Ended | |||||
April 28, 2019 | April 29, 2018 | ||||
Asia-Pacific | % | % | |||
North America | % | % | |||
Europe | % | % | |||
Other: Warrant Shares | % | ( | )% | ||
% | % |
Three Months Ended | |||||
(percentage of total sales) | April 28, 2019 | April 29, 2018 | |||
China (including Hong Kong) | % | % | |||
United States | % | % |
Three Months Ended | |||||||||||||
April 28, 2019 | April 29, 2018 | ||||||||||||
(in thousands, except number of shares) | Shares | Value | Shares | Value | |||||||||
Shares repurchased under the stock repurchase program | $ | $ | |||||||||||
Total treasury shares required | $ | $ |
Three Months Ended | |||||||
(in thousands) | April 28, 2019 | April 29, 2018 | |||||
Signal Integrity | $ | 50,257 | $ | 65,599 | |||
Protection | 38,890 | 40,792 | |||||
Wireless and Sensing | 42,207 | 45,539 | |||||
Other: Warrant Shares (1) | — | (21,501 | ) | ||||
Total | $ | 131,354 | $ | 130,429 |
• | Identification of the contract, or contracts, with a customer |
• | Identification of the performance obligations in the contract |
• | Determination of the transaction price |
• | Allocation of the transaction price to the performance obligations in the contract |
• | Recognition of revenue when, or as, performance obligations are satisfied |
Three Months Ended | |||||
April 28, 2019 | April 29, 2018 | ||||
Net sales | 100.0 | % | 100.0 | % | |
Cost of sales | 38.1 | % | 45.2 | % | |
Gross profit | 61.9 | % | 54.8 | % | |
Operating costs and expenses: | |||||
Selling, general and administrative | 29.2 | % | 31.7 | % | |
Product development and engineering | 20.6 | % | 20.1 | % | |
Intangible amortization | 3.9 | % | 5.3 | % | |
Changes in the fair value of contingent earn-out obligations | (1.6 | )% | — | % | |
Total operating costs and expenses | 52.1 | % | 57.2 | % | |
Operating income (loss) | 9.8 | % | (2.4 | )% | |
Interest expense, net | (1.9 | )% | (1.7 | )% | |
Non-operating income, net | 0.8 | % | 0.1 | % | |
Income (loss) before taxes and equity in net losses of equity method investments | 8.7 | % | (3.9 | )% | |
(Benefit) for income taxes | (1.8 | )% | (13.4 | )% | |
Net income before equity in net losses of equity method investments | 10.4 | % | 9.5 | % | |
Equity in net losses of equity method investments | (0.3 | )% | — | % | |
Net income | 10.1 | % | 9.5 | % | |
Percentages may not add precisely due to rounding. |
Three Months Ended | |||||||
(in thousands) | April 28, 2019 | April 29, 2018 | |||||
Domestic | $ | (8,468 | ) | $ | (7,700 | ) | |
Foreign | 19,861 | 2,603 | |||||
Total | $ | 11,393 | $ | (5,097 | ) |
Three Months Ended | |||||||||||||
(in thousands, except percentages) | April 28, 2019 | April 29, 2018 | |||||||||||
Enterprise Computing | $ | 35,783 | 27 | % | $ | 48,863 | 37 | % | |||||
Industrial | 39,108 | 30 | % | 48,846 | 37 | % | |||||||
High-End Consumer | 43,395 | 33 | % | 37,513 | 29 | % | |||||||
Communications | 13,068 | 10 | % | 16,708 | 13 | % | |||||||
Other: Warrant Shares | — | — | % | (21,501 | ) | (16 | )% | ||||||
Total | $ | 131,354 | 100 | % | $ | 130,429 | 100 | % |
Three Months Ended | Change | |||||||||||||||
(in thousands, except percentages) | April 28, 2019 | April 29, 2018 | ||||||||||||||
Selling, general and administrative | $ | 38,377 | 55 | % | $ | 41,406 | 56 | % | (7 | )% | ||||||
Product development and engineering | 27,099 | 40 | % | 26,199 | 35 | % | 3 | % | ||||||||
Intangible amortization | 5,143 | 8 | % | 6,961 | 9 | % | (26 | )% | ||||||||
Changes in the fair value of contingent earn-out obligations | (2,161 | ) | (3 | )% | — | — | % | (100 | )% | |||||||
Total operating costs and expenses | $ | 68,458 | 100 | % | $ | 74,566 | 100 | % | (8 | )% |
ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk |
ITEM 4. | Controls and Procedures |
ITEM 1. | Legal Proceedings |
ITEM 1A. | Risk Factors |
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Fiscal Month/Year | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares That May Yet Be Purchased Under The Program (1) | ||||||||||
February 2019 (01/28/19-02/24/19) | — | $ | — | — | $ | 180.8 | million | |||||||
March 2019 (02/25/19-03/24/19) | — | — | — | $ | 180.8 | million | ||||||||
April 2019 (03/25/19-04/28/19) | 2,211 | 49.93 | 2,211 | $ | 180.7 | million | ||||||||
Total activity | 2,211 | $ | 49.93 | 2,211 |
(1) | We maintain an active stock repurchase program which was approved by our Board of Directors in March 2008. The stock repurchase program does not have an expiration date and our Board of Directors has authorized expansion of the program over the years. |
ITEM 3. | Defaults Upon Senior Securities |
ITEM 4. | Mine Safety Disclosures |
ITEM 5. | Other Information |
ITEM 6. | Exhibits |
Exhibit No. | Description | Location | ||
101.INS | XBRL Instance Document | Filed herewith | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith |
SEMTECH CORPORATION | |
Registrant | |
Date: May 29, 2019 | /s/ Mohan R. Maheswaran |
Mohan R. Maheswaran | |
President and Chief Executive Officer | |
Date: May 29, 2019 | /s/ Emeka N. Chukwu |
Emeka N. Chukwu | |
Executive Vice President and | |
Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Semtech Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Mohan R. Maheswaran |
Mohan R. Maheswaran |
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Semtech Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Emeka N. Chukwu |
Emeka N. Chukwu |
Executive Vice President and Chief Financial Officer |
1. | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Mohan R. Maheswaran |
Mohan R. Maheswaran |
President and Chief Executive Officer |
1. | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Emeka N. Chukwu |
Emeka N. Chukwu |
Executive Vice President and Chief Financial Officer |
Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Apr. 28, 2019 |
May 24, 2019 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Apr. 28, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SEMTECH CORP | |
Entity Central Index Key | 0000088941 | |
Current Fiscal Year End Date | --01-26 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 66,677,107 |
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 28, 2019 |
Apr. 29, 2018 |
|
Net income | $ 13,294 | $ 12,382 |
Other comprehensive income, net: | ||
Change in employee benefit plans | 68 | (16) |
Other comprehensive (loss) income, net | (12) | 31 |
Comprehensive income | 13,282 | 12,413 |
Foreign Exchange Contract [Member] | ||
Other comprehensive income, net: | ||
Unrealized (loss) gain on foreign currency cash flow hedges | (51) | 47 |
Realized gain on foreign currency cash flow hedges | $ (29) | $ 0 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Apr. 28, 2019 |
Jan. 27, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, receivables | $ 662 | $ 774 |
Accumulated depreciation | $ 199,723 | $ 196,033 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 78,136,144 | 78,136,144 |
Common stock, shares outstanding | 66,644,921 | 65,238,255 |
Treasury stock, shares | 11,491,223 | 12,897,889 |
Organization and Basis of Presentation |
3 Months Ended |
---|---|
Apr. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Nature of Business Semtech Corporation (together with its consolidated subsidiaries, the "Company" or "Semtech") is a global supplier of analog and mixed-signal semiconductors and advanced algorithms. The end customers for the Company’s products are primarily original equipment manufacturers ("OEMs") that produce and sell electronics. The Company designs, develops and markets a wide range of products for commercial applications, the majority of which are sold into the enterprise computing, communications, high-end consumer and industrial end-markets. Enterprise Computing: datacenters, passive optical networks, desktops, notebooks, servers, monitors, printers and other computer peripherals. Communications: base stations, optical networks, carrier networks, switches and routers, cable modems, wireless LAN and other communication infrastructure equipment. High-End Consumer: handheld products, smartphones, wireless charging, set-top boxes, digital televisions, monitors and displays, tablets, wearables, digital video recorders and other consumer equipment. Industrial: analog and digital video broadcast equipment, video-over-IP solutions, automated meter reading, Internet of Things ("IoT"), smart grid, wireless charging, military and aerospace, medical, security systems, automotive, industrial and home automation and other industrial equipment. Fiscal Year The Company reports results on the basis of 52 and 53 week periods and ends its fiscal year on the last Sunday in January. The other quarters generally end on the last Sunday of April, July and October. All quarters consist of 13 weeks except for one 14-week period in the fourth quarter of 53-week years. The first quarter of fiscal years 2020 and 2019 each consisted of 13 weeks. Principles of Consolidation The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company, in accordance with accounting principles generally accepted in the United States ("GAAP") and on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 27, 2019 ("Annual Report"). In the opinion of the Company, these interim unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, the financial position of the Company for the interim periods presented. All intercompany balances have been eliminated. Certain information and footnote disclosures normally included in annual consolidated financial statements have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Because the interim unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for a complete set of consolidated financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report. The results reported in these interim unaudited condensed consolidated financial statements should not be regarded as indicative of results that may be expected for any subsequent period or for the entire year. The Company’s interim unaudited condensed consolidated statements of income are referred to herein as the "Statements of Income." The Company’s interim unaudited condensed consolidated balance sheets are referred to herein as the "Balance Sheets" and interim unaudited condensed consolidated statements of cash flows as the "Statements of Cash Flows." Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Acquisitions On August 17, 2018, the Company, through its subsidiary Semtech (International) AG, a Swiss corporation, entered into a share purchase agreement to purchase all of the outstanding equity interests of Trackio International AG, a Swiss corporation, and its subsidiaries (collectively, "TrackNet"), for an aggregate purchase price of approximately $8.5 million (the "TrackNet Acquisition"). TrackNet is a provider of LoRa-based end-to-end solutions for the IoT and provides expertise and intellectual property that will be integrated into the Company's business to support its goal of enabling the growing ecosystem around the Company's LoRa® devices and wireless radio frequency technology. The Company attributed $4.3 million to goodwill (see Note 7) and $3.0 million and $0.3 million was attributed to the estimated fair values of the intangible and tangible net assets acquired, respectively. The goodwill is not deductible for tax purposes. The transaction was completed on December 11, 2018 and accounted for as a business combination. Net revenues, earnings and pro forma results of operations have not been presented because they are not material to the Company’s consolidated financial statements. On May 2, 2018, the Company acquired substantially all the assets of IC Interconnect, Inc. (“ICI”) for an aggregate purchase price of approximately $7.4 million. The addition of ICI is aimed at further enhancing the Company’s U.S. research and development capabilities for its next-generation Z-PakTM platform. $4.9 million was attributed to goodwill (see Note 7) and $2.5 million was attributed to the estimated fair values of the tangible net assets acquired. The goodwill is deductible for tax purposes. The transaction was accounted for as a business combination. Net revenues, earnings, and pro forma results of operations have not been presented because they are not material to the Company’s consolidated financial statements. Settlements On August 1, 2018, the Company announced the settlement of a lawsuit filed against HiLight Semiconductor Limited and related individual defendants in accordance with which the Company is to be paid approximately $9.0 million to cover damages for claims, costs and attorneys' fees. The Company recorded a gain of $6.7 million and $1.3 million in the second and third quarters of fiscal year 2019, respectively. The Company recorded a gain of $1.0 million during the first quarter of fiscal year 2020. All recoveries from this settlement are presented within "Selling, general and administrative" ("SG&A") in the Statements of Income in the period the cash is received. Recent Accounting Standards Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by requiring the recognition of right-of-use ("ROU") assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In July 2018, the FASB issued additional guidance on the accounting for leases. The guidance provides companies with another transition method by allowing entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings as of the date of adoption. Under this method, financial information related to periods prior to adoption will be as originally reported under Accounting Standards Codification ("ASC") 840, Leases. Upon adoption as of January 28, 2019, the Company recorded ROU assets of $13.0 million and lease liabilities of $13.8 million; there was no other impact from the adoption. The difference between the ROU assets and lease liabilities primarily represents the existing deferred rent liabilities balance, resulting from historical straight-lining of operating leases, which was effectively reclassified upon adoption to reduce the measurement of the ROU assets. The adoption of the standard did not have an impact on the Company’s shareholder's equity and did not have a material impact on the Company’s results from operations and cash flows. The new standard provides several optional practical expedients in transition. The Company elected a transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. The Company elected the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of ROU assets. The Company also made accounting policy elections, including a short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less), and an accounting policy to account for lease and non-lease components as a single component for equipment leases. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI), which gives entities the option to reclassify to retained earnings the tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”) related to items in AOCI that the FASB refers to as having been stranded in AOCI. The new guidance may be applied retrospectively to each period in which the effect of the Tax Act is recognized in the period of adoption. The Company must adopt this guidance for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for periods for which financial statements have not yet been issued or made available for issuance, including the period the Tax Act was enacted. The guidance, when adopted, will require new disclosures regarding a company’s accounting policy for releasing the tax effects in AOCI and permit the Company the option to reclassify to retained earnings the tax effects resulting from the Tax Act that are stranded in AOCI. The Company adopted this guidance in the first quarter of fiscal year 2020. Adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815). The new standard is designed to refine and expand hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption, including adoption in an interim period, is permitted. The Company adopted this guidance in the first quarter of fiscal year 2020. Adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize revenue from the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance addresses, in particular, contracts with more than one performance obligation, as well as the accounting for some costs to obtain or fulfill a contract with a customer, and provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The Company adopted the standard, effective January 29, 2018, using the modified retrospective transition method which resulted in an adjustment to retained earnings for the cumulative effect of applying the standard to all contracts not completed as of the adoption date. The primary change associated with the adoption relates to the Company’s sales to distributors with return or price adjustment rights where the Company will no longer defer revenue until the resale by the distributor to the end customer, but rather, will record revenue at the time control transfers to the distributor. The Company estimated the effects of returns and allowances provided to these distributors. Upon adoption, including the effect of income taxes, opening retained earnings as of January 29, 2018 increased by $11.1 million net, as a result of these changes. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Asset Transfers Other Than Inventory (Topic 740). This accounting standard update is aimed at recognizing the income tax consequences of intra-entity transfers of assets other than inventory when they occur. This removes the exception to postpone the recognition of income tax consequences of intra-entity transfers until the asset has been sold to an outside party. In the first quarter of fiscal year 2019, the Company adopted ASU 2016-16 using a modified retrospective transition method, resulting in a $1.6 million decrease in retained earnings, a $3.7 million net increase in deferred income tax assets, and a $5.5 million decrease in pre-paid taxes.
|
Earnings Per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings per Share The computation of basic and diluted earnings per common share was as follows:
Basic earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the reporting period. Diluted earnings per common share incorporates the incremental shares issuable, calculated using the treasury stock method, upon the assumed exercise of non-qualified stock options, the vesting of restricted stock units and performance unit awards if the conditions have been met.
|
Share-Based Compensation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation Financial Statement Effects and Presentation. The following table summarizes pre-tax share-based compensation included in the Statements of Income for the three months ended April 28, 2019 and April 29, 2018.
Warrant. On October 5, 2016, the Company issued a warrant (the "Warrant") to Comcast Cable Communications Management LLC ("Comcast") to purchase up to 1,086,957 shares (the "Warrant Shares") of the common stock of Semtech Corporation. The Warrant was issued by the Company to Comcast in connection with an agreement between the parties regarding the intended trial deployment by Comcast of a low-power wide-area network in the U.S., based on the Company’s LoRa® devices and wireless radio frequency technology. The Warrant was accounted for as equity and the cost was recognized as an offset to net sales over the respective performance period. The Warrant consisted of five performance tranches. The cost associated with each tranche had been recognized based on the fair value at each reporting date until vesting which was the measurement date. On April 27, 2018, the Company accelerated the vesting of the remaining 586,956 unvested shares from the Warrant ("Acceleration Event"), resulting in the full recognition of the remaining costs to be recognized for the Warrant. For the three month period ended April 29, 2018, the revenue offset reflects the cost associated with the Warrant of $21.5 million, including $15.9 million related to the Acceleration Event. As of January 27, 2019, the Warrant was fully-vested and exercisable for a total of 869,565 shares, with no additional costs to be recognized in future periods. The Warrant was fully exercised and no longer outstanding as of March 15, 2019. Performance-Based Restricted Stock Units. The Company grants performance-based restricted stock units to select employees. These awards have a performance condition in addition to a service condition. The performance-based restricted stock units are valued as of the measurement date and expense is recognized on a straight line basis for the awards expected to vest based on the probability of attainment of the performance condition for each separately vesting portion of the award. In the first quarter of fiscal year 2020, the Company granted 106,000 performance-based restricted stock units that have a pre-defined market condition and a service condition that are accounted for as equity awards. The market condition is determined based upon the Company’s total stockholder return ("TSR") benchmarked against the TSR of the S&P SPDR Semiconductor ETF (NYSE:XSD) over a one, two and three year period (one-third of the awards vesting each performance period). The fiscal year 2020 award recipients must be employed for the entire performance period and be an active employee at the time of vesting of the awards. The Company used a Monte Carlo simulation to determine the grant-date fair value for these awards, which takes into consideration the possible outcomes pertaining to the TSR market condition. The grant-date fair value per unit of the awards granted in the first quarter of fiscal year 2020 for each one, two and three year performance period is $55.82, $59.36 and $61.45, respectively. In the first quarter of fiscal year 2020, the Company granted to the CEO, 160,000 performance-based restricted stock units that have a pre-defined market condition and a service condition that are accounted for as equity awards. The market condition is determined based upon the Company’s TSR benchmarked against the TSR of the S&P SPDR Semiconductor ETF (NYSE:XSD) over a one, two, three and four year period (one-fourth of the awards vesting each performance period). The CEO must be employed for the entire performance period and be an active employee at the time of vesting of the awards. The Company used a Monte Carlo simulation to determine the grant-date fair value for these awards, which takes into consideration the possible outcomes pertaining to the TSR market condition. The grant-date fair value per unit of the awards granted in the first quarter of fiscal year 2020 for each one, two, three and four year performance period is $55.82, $59.36, $61.45 and $62.98, respectively. Market Performance Restricted Stock Units. On March 5, 2019, the Company granted its CEO 320,000 restricted stock units with a market performance condition. The award is eligible to vest during the period commencing March 5, 2019, and ending March 5, 2024 (the "Performance Period") as follows: 30% of the restricted stock units covered by the award will vest if, during any consecutive 30 trading day period that commences and ends during the Performance Period, the average per-share closing price of the Company’s common stock equals or exceeds $71.00 ("Tranche 1") and the remaining 70% of the restricted stock units covered by the award will vest if, during any consecutive 30 trading day period that commences and ends during the Performance Period, the average per-share closing price of the Company’s common stock equals or exceeds $95.00 ("Tranche 2"). The award will also vest if a majority change in control of the Company occurs during the Performance Period and, in connection with such event, the Company’s stockholders become entitled to receive per-share consideration equal to or in excess of the per-share performance targets. Specifically, if stockholders become entitled to receive per-share consideration equal to or in excess of $71.00 then thirty percent (30%) of the award will vest and become nonforfeitable. If the per share consideration is greater than $71.00 but less than $95.00 then 30% of the award and a pro-rata percentage of the remaining 70% of the award will vest and become nonforfeitable. If the per share consideration is equal to or greater than $95.00 the entire award will vest and become nonforfeitable. The fair value for each unit of the awards was determined to be $44.32 and $33.19 for Tranche 1 and Tranche 2, respectively, on the grant date by application of the Monte Carlo simulation model. The following tables summarize the assumptions used in the Monte Carlo simulation model to determine the fair value of restricted stock units granted in fiscal year 2020 for both Tranche 1 and Tranche 2.
Award Modifications. In the first quarter of fiscal year 2019, the Company modified the terms of 159,000 fully vested shares held by 8 employees. As a result of the modification, additional compensation cost of $2.8 million was recognized during the first quarter of fiscal year 2019.
|
Investments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments The following table summarizes the Company’s available-for-sale securities:
The following table summarizes the maturities of the Company’s available-for-sale securities:
The Company's available-for-sales securities consisted of investments in convertible debt instruments issued by privately-held companies and is included in "Other current assets" in the Balance Sheets.
|
Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Instruments Measured at Fair Value on a Recurring Basis Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented in the Company's Balance Sheets as follows:
During the three months ended April 28, 2019, the Company had no transfers of financial assets or liabilities between Level 1, Level 2 or Level 3. As of April 28, 2019 and January 27, 2019, the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted. The fair values of the foreign exchange forward contracts are valued using Level 2 inputs. Foreign currency forward contracts are valued using readily available foreign currency forward and interest rate curves. The fair value of each contract is determined by comparing the contract rate to the forward rate and discounting to the present value. Contracts in a gain position are recorded in the Balance Sheets within the caption "Other current assets" and the value of contracts in a loss position are recorded within the caption "Accrued liabilities" in the Balance Sheets. Please see Note 15 for further discussion of the Company’s derivative instruments. The convertible debt is valued using probability weighted cash flows (Level 3 inputs). The AptoVision Earn-out liability (see Note 11) is valued utilizing estimates of annual revenue, adjusted earnings and product development targets (Level 3 inputs) through July 2020. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Cycleo Earn-out liability (see Note 11) is valued utilizing estimates of annual revenue and operating income (Level 3 inputs) through April 2020. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Company measures contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. The Company uses a Monte Carlo valuation method as a valuation technique to determine the value of the earn-out liability. The significant unobservable inputs used in the fair value measurements are revenue projections over the earn-out period, and the probability outcome percentages assigned to each scenario. Significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability, with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liabilities will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. For the Cycleo Earn-out and AptoVision Earn-out, these companies have business profiles comparable to a start-up company. Accordingly, their respective revenue projections are subject to significant revisions. This characteristic can result in volatile changes to the measurement of fair value for a given earn-out. The Company reviews and re-assesses the estimated fair value of contingent consideration on a recurring basis, and the updated fair value could differ materially from the previous estimates. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. A reconciliation of the change in the earn-out liability during the three months ended April 28, 2019 is as follows:
Instruments Not Recorded at Fair Value on a Recurring Basis Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities include: cash and cash equivalents including money market deposits, net receivables, certain other assets, accounts payable, accrued expenses, accrued personnel costs, and other current liabilities. The Company’s long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes. The fair value of the Company’s Term Loans (as defined in Note 8) is $110.6 million and $115.3 million as of April 28, 2019 and January 27, 2019, respectively. The fair value of the Company's Revolving Loans (as defined in Note 8) is $97.0 million as of both April 28, 2019 and January 27, 2019, respectively. These are based on Level 2 inputs which are derived from transactions with similar amounts, maturities, credit ratings and payment terms. Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis The Company reduces the carrying amounts of its goodwill, intangible assets, long-lived assets and non-marketable equity securities to fair value when held for sale or determined to be impaired. For its investment in non-marketable equity interests, the Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of its equity investments during the first three months of fiscal year 2020.
|
Inventories |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories, consisting of material, material overhead, labor, and manufacturing overhead, are stated at the lower of cost (first-in, first-out) or market and consist of the following:
|
Goodwill and Intangible Assets |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill – Changes in the carrying amount of goodwill by applicable reporting unit were as follows:
The reporting units are the same as the operating segments which are part of a single reportable segment. The difference between the fair value and the carrying amount of these reporting units is one of several factors the Company considers when assessing whether to perform the first step of the goodwill impairment test. Goodwill is tested for impairment at the reporting unit level during the fourth quarter of each fiscal year. In addition to its annual review, the Company performs a test of impairment when indicators of impairment are present. As of April 28, 2019, there was no indication of impairment of the Company's goodwill balances. Purchased Intangibles – The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions, which continue to be amortized:
Amortization expenses recorded in the Statements of Income for each period were as follows:
The following table sets forth the Company’s indefinite-lived intangible assets resulting from additions to in-process research and development:
Indefinite-lived intangible assets are tested for impairment annually on the first day of the fourth quarter or more frequently if events or changes in circumstances (each, a “triggering event”) would more likely than not reduce the carrying value of the asset below its fair value, calculated as the future discounted cash flows that asset is expected to generate. Management did not identify any triggering events during the quarter ended April 28, 2019, that would require an interim impairment analysis.
|
Long-Term Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-term debt and the current period interest rates were as follows:
On November 15, 2016, the Company, with certain of its domestic subsidiaries as guarantors, entered into an amended and restated credit agreement with the lenders party thereto and HSBC Bank USA, National Association, as administrative agent, swing line lender and letter of credit issuer, consisting of senior secured term loans in an aggregate principal amount of $150.0 million (the "Term Loans") and senior secured revolving commitments in an aggregate principal amount of $250.0 million (the “Revolving Loans” and together with the Term Loans, the "Credit Facility"). The Credit Facility is scheduled to mature on November 12, 2021. The outstanding principal balance of the Term Loans is subject to repayment in quarterly installments. No amortization is required with respect to the Revolving Loans. As of April 28, 2019, the Company was in compliance with all financial covenants required under the Credit Facility. Scheduled maturities of current and long-term Term Loans are as follows:
As of April 28, 2019, the Company had $153.0 million of unused borrowing capacity under the Revolving Loans. As of April 28, 2019, there were no amounts outstanding under the letters of credit, swing line loans and alternative currency sub-facilities.
|
Income Taxes |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company’s effective tax rate differs from the statutory federal income tax rate of 21% primarily due to regional mix of income and excess tax benefits from stock-based compensation. The Company uses a two-step approach to recognize and measure uncertain tax positions ("UTP"). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (before the federal impact of state items) is as follows:
Included in the balance of gross unrecognized tax benefits at April 28, 2019 and January 27, 2019 are $4.4 million and $4.5 million, respectively, of net tax benefits (after federal impact of state items), that, if recognized, would impact the effective tax rate, prior to consideration of any required valuation allowance. The liability for UTP is reflected in the Balance Sheets as follows:
The Company’s policy is to include net interest and penalties related to unrecognized tax benefits within the "Provision for taxes" in the Statements of Income. Tax years prior to 2013 (the Company’s fiscal year 2014) are generally not subject to examination by the U.S. Internal Revenue Service ("IRS") except for items involving tax attributes that have been carried forward to tax years whose statute of limitations remains open. For state returns, the Company is generally not subject to income tax examinations for calendar years prior to 2012 (the Company’s fiscal year 2013). The Company has a significant tax presence in Switzerland for which Swiss tax filings have been examined through fiscal year 2018. The Company is also subject to routine examinations by various foreign tax jurisdictions in which it operates. The Company believes that adequate provisions have been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with the Company's expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. The Company’s regional income (loss) from continuing operations before taxes and equity in net losses of equity method investments is as follows:
|
Leases (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company has operating leases for real estate, vehicles, and office equipment. Real estates leases are used to secure office space for the Company's administrative, engineering and production support activities. The Company's leases have remaining lease terms of 1 to 7 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The components of lease expense for the three months ended April 28, 2019 were as follows:
Supplemental cash flow information for the three months ended April 28, 2019 related to leases was as follows:
Supplemental balance sheet information as of April 28, 2019 related to leases was as follows:
(1) Operating lease right-of-use assets are included in "Other assets", other current liabilities are included in "Accrued liabilities" and operating lease liabilities are included in "Other long-term liabilities" within the Balance Sheets. Maturities of lease liabilities as of April 28, 2019 are as follows:
As of April 28, 2019, the Company has an additional operating lease, primarily for office space, that it has yet to occupy for a value of approximately $3.2 million. The operating lease will commence at the end of fiscal year 2020 with a lease term of 7 years.
|
Commitments and Contingencies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments And Contingencies | Commitments and Contingencies In accordance with accounting standards regarding loss contingencies, the Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. The Company also discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its consolidated financial statements not to be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. The Company evaluates, at least quarterly, developments in its legal matters that could affect the amount of liability that has been previously accrued, and makes adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount. The Company may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (i) if the damages sought are indeterminate; (ii) if the proceedings are in early stages, (iii) if there is uncertainty as to the outcome of pending appeals, motions or settlements, (iv) if there are significant factual issues to be determined or resolved, and (v) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any. Because the outcomes of litigation and other legal matters are inherently unpredictable, the Company’s evaluation of legal matters or proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. While the consequences of certain unresolved matters and proceedings are not presently determinable, and an estimate of the probable and reasonably possible loss or range of loss in excess of amounts accrued for such proceedings cannot be reasonably made, an adverse outcome from such proceedings could have a material adverse effect on the Company’s earnings in any given reporting period. However, in the opinion of management, after consulting with legal counsel, any ultimate liability related to current outstanding claims and lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on the Company’s consolidated financial statements, as a whole. However, legal matters are inherently unpredictable and subject to significant uncertainties, some of which are beyond the Company’s control. As such, even though the Company intends to vigorously defend itself with respect to its legal matters, there can be no assurance that the final outcome of these matters will not materially and adversely affect the Company’s business, financial condition, operating results, or cash flows. From time to time, the Company is involved in various claims, litigation, and other legal actions that are normal to the nature of its business, including with respect to IP, contract, product liability, employment, and environmental matters. In the opinion of management, after consulting with legal counsel, any ultimate liability related to current outstanding claims and lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on the Company’s consolidated financial statements, as a whole. The Company’s currently pending legal matters of note are discussed below: Environmental Matters The Company vacated a former facility in Newbury Park, California in 2002, but continues to address groundwater and soil contamination at the site. The Company’s efforts to address site conditions have been at the direction of the Los Angeles Regional Water Quality Control Board (“RWQCB”). In October 2013, an order was issued including a scope of proposed additional site work, monitoring, and proposed remediation activities. The Company filed appeals of the October 2013 order seeking reconsideration by the RWQCB and review by the State Water Resources Control Board ("SWRCB") of the removal of two other potentially responsible parties, and seeking clarification of certain other factual findings. In April 2015, the RWQCB denied the Company’s request to name the two other potentially responsible parties to the order, but did correct certain findings of fact identified by the Company in its petition for reconsideration. The Company decided not to continue to pursue the administrative appeal and has been complying with RWQCB orders and direction, and is implementing an approved remedial action plan (prepared by an environmental firm retained by the Company) addressing the cleanup of soil, groundwater, and soil vapor at the site. Remedial actions pursuant to an approved plan are ongoing. The Company has accrued liabilities where it is probable that a loss will be incurred and the cost or amount of loss can be reasonably estimated. Based on the latest determinations by the RWQCB and the most recent actions taken pursuant to the remedial action plan, the Company continues to estimate the range of probable loss between $5.3 million and $7.5 million. To date, the Company has made $3.6 million in payments towards the remedial action plan, and as of April 28, 2019, the Company has accrued $1.7 million related to this. Given the uncertainties associated with environmental assessment and the remediation activities, the Company is unable to determine a best estimate within the range of loss. Therefore, the Company has recorded the minimum amount of probable loss. These estimates could change as a result of changes in planned remedial actions, further actions from the regulatory agency, remediation technology, and other factors. Indemnification The Company has entered into agreements with its current and former executives and directors indemnifying them against certain liabilities incurred in connection with the performance of their duties. The Company’s Certificate of Incorporation and Bylaws contain comparable indemnification obligations with respect to the Company’s current directors and employees. Product Warranties The Company’s general warranty policy provides for repair or replacement of defective parts. In some cases, a refund of the purchase price is offered. In certain instances the Company has agreed to other or additional warranty terms, including indemnification provisions. The product warranty accrual reflects the Company’s best estimate of probable liability under its product warranties. The Company accrues for known warranty issues if a loss is probable and can be reasonably estimated, and accrues for estimated incurred but unidentified issues based on historical experience. Historically, warranty expense and the related accrual has been immaterial to the Company’s consolidated financial statements. Deferred Compensation The Company maintains a deferred compensation plan for certain officers and key executives that allow participants to defer a portion of their compensation for future distribution at various times permitted by the plan. This plan provides for a discretionary Company match up to a defined portion of the employee's deferral, with any match subject to a vesting period. The Company's liability for the deferred compensation plan is presented below:
The Company has purchased whole life insurance on the lives of certain current deferred compensation plan participants. This Company-owned life insurance is held in a grantor trust and is intended to cover a majority of the Company's costs of the deferred compensation plan. The cash surrender value of the Company-owned life insurance was $22.1 million and $20.4 million as of April 28, 2019 and January 27, 2019, respectively, and is included in "Other assets" on the Balance Sheets. Earn-out Liability Pursuant to the terms of an amended earn-out arrangement ("Cycleo Earn-out") with the former shareholders of Cycleo SAS ("Cycleo Earn-out Beneficiaries"), which the Company acquired in March 2012, as of April 28, 2019, the Company potentially may make payments totaling up to approximately $14.6 million based on the achievement of a combination of certain revenue and operating income milestones over a defined period ("Cycleo Defined Earn-out Period"). The Cycleo Defined Earn-out Period covers the period April 27, 2015 to April 26, 2020. For certain of the Cycleo Earn-out Beneficiaries, payment of the earn-out liability is contingent upon continued employment and is accounted for as post-acquisition compensation expense over the service period. The portion of the earn-out liability that is not dependent on continued employment is not considered as compensation expense. The Company has recorded a liability for the Cycleo Earn-out of $4.8 million and $4.5 million as of April 28, 2019 and January 27, 2019, respectively. Pursuant to the terms of an earn-out arrangement ("AptoVision Earn-out") with the former shareholders of AptoVision, which the Company acquired in July 2017, as of April 28, 2019, the Company potentially may make payments totaling up to approximately $47.0 million based on the achievement of a combination of certain net revenue, adjusted earnings and product development targets measured from the acquisition date through July 26, 2020. A summary of earn-out liabilities, included in "Accrued liabilities" and "Other long-term liabilities" on the Balance Sheets, by classification follows:
|
Concentration of Risk |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Risk | Concentration of Risk The following significant customers accounted for at least 10% of net sales in one or more of the periods indicated:
(1) Premier is a distributor with a concentration of sales to Samsung. The above percentages represent the Company's estimate of the sales activity related to Samsung that is passing through this distributor. The following table shows the customers that have an outstanding receivable balance that represents at least 10% of total net receivables as of the dates indicated:
Outside Subcontractors and Suppliers The Company relies on a limited number of third-party subcontractors and suppliers for the production of silicon wafers, packaging and certain other tasks. Disruption or termination of supply sources or subcontractors, including due to natural disasters such as an earthquake or other causes, could delay shipments and could have a material adverse effect on the Company. Although there are generally alternate sources for these materials and services, qualification of the alternate sources could cause delays sufficient to have a material adverse effect on the Company. Several of the Company’s third-party subcontractors and suppliers, including third-party foundries that supply silicon wafers, are located in foreign countries, including China, Israel and Taiwan. A significant amount of the Company’s assembly and test operations are conducted by third-party contractors in China, Malaysia, Taiwan, Thailand, South Korea and the Philippines. For the first quarter of fiscal years 2020 and 2019, respectively, approximately 15% and 14%, respectively of the Company’s silicon in terms of cost of wafers was supplied by a third-party foundry in China, and these percentages could be higher in future periods. In the first quarter of fiscal year 2020, authorized distributors accounted for approximately 62% of the Company’s net sales compared to approximately 69% in the first quarter of fiscal year 2019. Generally, the Company does not have long-term contracts with its distributors and most can terminate their agreement with little or no notice. For the first quarter of fiscal year 2020, the Company's two largest distributors were based in Asia.
|
Segment Information |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Segment Information The Company’s CEO functions as the CODM. The Company’s CODM makes operating decisions and assesses performance based on these operating segments. The Company has three operating segments. The three operating segments: Protection, Signal Integrity, and Wireless and Sensing, all have similar economic characteristics and have been aggregated into one reportable segment identified in the table below as the "Semiconductor Products Group". The Company’s assets are commingled among the various operating segments 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:
Income by segment and reconciliation to consolidated operating income:
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 the three month period ended April 29, 2018, the revenue offset reflects the cost associated with the Warrant of $21.5 million, including $15.9 million related to the Acceleration Event (see Note 3 for discussion regarding Share-Based Compensation). Information by Sales Channel
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:
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 at least one of the periods presented:
|
Stock Repurchase Program |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Repurchase Program | Stock Repurchase Program Stock Repurchase Program The Company maintains a stock repurchase program that was initially approved by its Board of Directors in March 2008. The stock repurchase program does not have an expiration date and the Company’s Board of Directors has authorized expansion of the program over the years. The following table summarizes activity under the program for the presented periods:
On May 24, 2018, the Company's Board of Directors authorized the expansion of the stock repurchase program by $250.0 million. As of April 28, 2019, the Company had repurchased $267.7 million in shares of its common stock under the program since inception and the remaining authorization under the program was $180.7 million. Under the program, the Company may repurchase its common stock at any time or from time to time, without prior notice, subject to market conditions and other considerations. The Company’s repurchases may be made through Rule 10b5-1 and/or Rule 10b-18 or other trading plans, open market purchases, privately negotiated transactions, block purchases or other transactions. The Company intends to fund repurchases under the program from cash on hand. The Company has no obligation to repurchase any shares under the program and may suspend or discontinue it at any time.
|
Derivatives and Hedging Activities |
3 Months Ended |
---|---|
Apr. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivatives and Hedging Activities The Company is exposed to certain risk arising from both its business operations and economic conditions and principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company, on a routine basis and in the normal course of business, experiences expenses denominated in Swiss Franc, Canadian Dollar ("CAD") and Great British Pound ("GBP"). Such expenses expose the Company to exchange rate fluctuations between these foreign currencies and the U.S. Dollar ("USD"). The Company occasionally uses derivative financial instruments, in the form of forward contracts, to mitigate a portion of the risk associated with adverse movements in these foreign currency exchange rates during a twelve month window. Currency forward contracts involve fixing the exchange rate for delivery of a specified amount of foreign currency on a specified date. The Company’s accounting treatment for these instruments is based on whether or not the instruments are designated as a hedging instrument. The Company is currently applying hedge accounting to all foreign currency derivatives and has designated these hedges as cash flow hedges. At April 28, 2019, the Company did not have a material amount of outstanding foreign exchange contracts. For the first quarter of fiscal years 2020 and 2019, there were no material amounts of income realized.
|
Organization and Basis of Presentation (Policy) |
3 Months Ended |
---|---|
Apr. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Year | Fiscal Year The Company reports results on the basis of 52 and 53 week periods and ends its fiscal year on the last Sunday in January. The other quarters generally end on the last Sunday of April, July and October. All quarters consist of 13 weeks except for one 14-week period in the fourth quarter of 53-week years. The first quarter of fiscal years 2020 and 2019 each consisted of 13 weeks.
|
Principles of Consolidation | Principles of Consolidation The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company, in accordance with accounting principles generally accepted in the United States ("GAAP") and on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 27, 2019 ("Annual Report"). In the opinion of the Company, these interim unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, the financial position of the Company for the interim periods presented. All intercompany balances have been eliminated. Certain information and footnote disclosures normally included in annual consolidated financial statements have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Because the interim unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for a complete set of consolidated financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report. The results reported in these interim unaudited condensed consolidated financial statements should not be regarded as indicative of results that may be expected for any subsequent period or for the entire year. The Company’s interim unaudited condensed consolidated statements of income are referred to herein as the "Statements of Income." The Company’s interim unaudited condensed consolidated balance sheets are referred to herein as the "Balance Sheets" and interim unaudited condensed consolidated statements of cash flows as the "Statements of Cash Flows."
|
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
|
Recent Accounting Pronouncements | Recent Accounting Standards Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by requiring the recognition of right-of-use ("ROU") assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In July 2018, the FASB issued additional guidance on the accounting for leases. The guidance provides companies with another transition method by allowing entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings as of the date of adoption. Under this method, financial information related to periods prior to adoption will be as originally reported under Accounting Standards Codification ("ASC") 840, Leases. Upon adoption as of January 28, 2019, the Company recorded ROU assets of $13.0 million and lease liabilities of $13.8 million; there was no other impact from the adoption. The difference between the ROU assets and lease liabilities primarily represents the existing deferred rent liabilities balance, resulting from historical straight-lining of operating leases, which was effectively reclassified upon adoption to reduce the measurement of the ROU assets. The adoption of the standard did not have an impact on the Company’s shareholder's equity and did not have a material impact on the Company’s results from operations and cash flows. The new standard provides several optional practical expedients in transition. The Company elected a transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. The Company elected the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of ROU assets. The Company also made accounting policy elections, including a short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less), and an accounting policy to account for lease and non-lease components as a single component for equipment leases. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI), which gives entities the option to reclassify to retained earnings the tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”) related to items in AOCI that the FASB refers to as having been stranded in AOCI. The new guidance may be applied retrospectively to each period in which the effect of the Tax Act is recognized in the period of adoption. The Company must adopt this guidance for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for periods for which financial statements have not yet been issued or made available for issuance, including the period the Tax Act was enacted. The guidance, when adopted, will require new disclosures regarding a company’s accounting policy for releasing the tax effects in AOCI and permit the Company the option to reclassify to retained earnings the tax effects resulting from the Tax Act that are stranded in AOCI. The Company adopted this guidance in the first quarter of fiscal year 2020. Adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815). The new standard is designed to refine and expand hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption, including adoption in an interim period, is permitted. The Company adopted this guidance in the first quarter of fiscal year 2020. Adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize revenue from the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance addresses, in particular, contracts with more than one performance obligation, as well as the accounting for some costs to obtain or fulfill a contract with a customer, and provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The Company adopted the standard, effective January 29, 2018, using the modified retrospective transition method which resulted in an adjustment to retained earnings for the cumulative effect of applying the standard to all contracts not completed as of the adoption date. The primary change associated with the adoption relates to the Company’s sales to distributors with return or price adjustment rights where the Company will no longer defer revenue until the resale by the distributor to the end customer, but rather, will record revenue at the time control transfers to the distributor. The Company estimated the effects of returns and allowances provided to these distributors. Upon adoption, including the effect of income taxes, opening retained earnings as of January 29, 2018 increased by $11.1 million net, as a result of these changes. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Asset Transfers Other Than Inventory (Topic 740). This accounting standard update is aimed at recognizing the income tax consequences of intra-entity transfers of assets other than inventory when they occur. This removes the exception to postpone the recognition of income tax consequences of intra-entity transfers until the asset has been sold to an outside party. In the first quarter of fiscal year 2019, the Company adopted ASU 2016-16 using a modified retrospective transition method, resulting in a $1.6 million decrease in retained earnings, a $3.7 million net increase in deferred income tax assets, and a $5.5 million decrease in pre-paid taxes. |
Earnings Per Share | Basic earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the reporting period. Diluted earnings per common share incorporates the incremental shares issuable, calculated using the treasury stock method, upon the assumed exercise of non-qualified stock options, the vesting of restricted stock units and performance unit awards if the conditions have been met.
|
Share-based Compensation, Warrant | The Warrant was issued by the Company to Comcast in connection with an agreement between the parties regarding the intended trial deployment by Comcast of a low-power wide-area network in the U.S., based on the Company’s LoRa® devices and wireless radio frequency technology. The Warrant was accounted for as equity and the cost was recognized as an offset to net sales over the respective performance period. The Warrant consisted of five performance tranches. The cost associated with each tranche had been recognized based on the fair value at each reporting date until vesting which was the measurement date. |
Share-based Compensation, Performance-based RSUs | The Company grants performance-based restricted stock units to select employees. These awards have a performance condition in addition to a service condition. The performance-based restricted stock units are valued as of the measurement date and expense is recognized on a straight line basis for the awards expected to vest based on the probability of attainment of the performance condition for each separately vesting portion of the award. |
Fair Value of Financial Instruments | Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis The Company reduces the carrying amounts of its goodwill, intangible assets, long-lived assets and non-marketable equity securities to fair value when held for sale or determined to be impaired. As of April 28, 2019 and January 27, 2019, the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted.The fair values of the foreign exchange forward contracts are valued using Level 2 inputs. Foreign currency forward contracts are valued using readily available foreign currency forward and interest rate curves. The fair value of each contract is determined by comparing the contract rate to the forward rate and discounting to the present value. Contracts in a gain position are recorded in the Balance Sheets within the caption "Other current assets" and the value of contracts in a loss position are recorded within the caption "Accrued liabilities" in the Balance Sheets. Please see Note 15 for further discussion of the Company’s derivative instruments. The convertible debt is valued using probability weighted cash flows (Level 3 inputs). The AptoVision Earn-out liability (see Note 11) is valued utilizing estimates of annual revenue, adjusted earnings and product development targets (Level 3 inputs) through July 2020. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Cycleo Earn-out liability (see Note 11) is valued utilizing estimates of annual revenue and operating income (Level 3 inputs) through April 2020. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Company measures contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. The Company uses a Monte Carlo valuation method as a valuation technique to determine the value of the earn-out liability. The significant unobservable inputs used in the fair value measurements are revenue projections over the earn-out period, and the probability outcome percentages assigned to each scenario. Significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability, with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liabilities will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. For the Cycleo Earn-out and AptoVision Earn-out, these companies have business profiles comparable to a start-up company. Accordingly, their respective revenue projections are subject to significant revisions. This characteristic can result in volatile changes to the measurement of fair value for a given earn-out. The Company reviews and re-assesses the estimated fair value of contingent consideration on a recurring basis, and the updated fair value could differ materially from the previous estimates. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. Instruments Not Recorded at Fair Value on a Recurring Basis Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities include: cash and cash equivalents including money market deposits, net receivables, certain other assets, accounts payable, accrued expenses, accrued personnel costs, and other current liabilities. The Company’s long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes.
|
Inventory | Inventories, consisting of material, material overhead, labor, and manufacturing overhead, are stated at the lower of cost (first-in, first-out) or market |
Interest and Penalties on Unrecognized Tax Benefits | The Company’s policy is to include net interest and penalties related to unrecognized tax benefits within the "Provision for taxes" in the Statements of Income.
|
Commitments and Contingencies | In accordance with accounting standards regarding loss contingencies, the Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. The Company also discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its consolidated financial statements not to be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. The Company evaluates, at least quarterly, developments in its legal matters that could affect the amount of liability that has been previously accrued, and makes adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount. The Company may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (i) if the damages sought are indeterminate; (ii) if the proceedings are in early stages, (iii) if there is uncertainty as to the outcome of pending appeals, motions or settlements, (iv) if there are significant factual issues to be determined or resolved, and (v) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any. Because the outcomes of litigation and other legal matters are inherently unpredictable, the Company’s evaluation of legal matters or proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. While the consequences of certain unresolved matters and proceedings are not presently determinable, and an estimate of the probable and reasonably possible loss or range of loss in excess of amounts accrued for such proceedings cannot be reasonably made, an adverse outcome from such proceedings could have a material adverse effect on the Company’s earnings in any given reporting period. However, in the opinion of management, after consulting with legal counsel, any ultimate liability related to current outstanding claims and lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on the Company’s consolidated financial statements, as a whole. However, legal matters are inherently unpredictable and subject to significant uncertainties, some of which are beyond the Company’s control.
|
Product Warranties | Product Warranties The Company’s general warranty policy provides for repair or replacement of defective parts. In some cases, a refund of the purchase price is offered. In certain instances the Company has agreed to other or additional warranty terms, including indemnification provisions. The product warranty accrual reflects the Company’s best estimate of probable liability under its product warranties. The Company accrues for known warranty issues if a loss is probable and can be reasonably estimated, and accrues for estimated incurred but unidentified issues based on historical experience. Historically, warranty expense and the related accrual has been immaterial to the Company’s consolidated financial statements.
|
Derivatives | The Company’s accounting treatment for these instruments is based on whether or not the instruments are designated as a hedging instrument. The Company is currently applying hedge accounting to all foreign currency derivatives and has designated these hedges as cash flow hedges.
|
Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Common Share | The computation of basic and diluted earnings per common share was as follows:
|
Share-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation Of Stock-Based Compensation | The following table summarizes pre-tax share-based compensation included in the Statements of Income for the three months ended April 28, 2019 and April 29, 2018.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units | The following tables summarize the assumptions used in the Monte Carlo simulation model to determine the fair value of restricted stock units granted in fiscal year 2020 for both Tranche 1 and Tranche 2.
|
Investments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Investments | The following table summarizes the Company’s available-for-sale securities:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments, Classified By Maturity Period | The following table summarizes the maturities of the Company’s available-for-sale securities:
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented in the Company's Balance Sheets as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | A reconciliation of the change in the earn-out liability during the three months ended April 28, 2019 is as follows:
|
Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Inventories | Inventories, consisting of material, material overhead, labor, and manufacturing overhead, are stated at the lower of cost (first-in, first-out) or market and consist of the following:
|
Goodwill and Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amounts of Goodwill | Changes in the carrying amount of goodwill by applicable reporting unit were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-lived Intangible Assets Acquired | The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions, which continue to be amortized:
Amortization expenses recorded in the Statements of Income for each period were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Indefinite-Lived Intangible Assets | The following table sets forth the Company’s indefinite-lived intangible assets resulting from additions to in-process research and development:
|
Long-Term Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long-term debt and the current period interest rates were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Maturities of Current and Long-term Term Loans | Scheduled maturities of current and long-term Term Loans are as follows:
|
Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (before the federal impact of state items) is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability For Uncertain Tax Positions | The liability for UTP is reflected in the Balance Sheets as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regional Income (Loss) From Continuing Operations Before Income Taxes | The Company’s regional income (loss) from continuing operations before taxes and equity in net losses of equity method investments is as follows:
|
Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The components of lease expense for the three months ended April 28, 2019 were as follows:
Supplemental cash flow information for the three months ended April 28, 2019 related to leases was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets And Liabilities, Lessee | Supplemental balance sheet information as of April 28, 2019 related to leases was as follows:
(1) Operating lease right-of-use assets are included in "Other assets", other current liabilities are included in "Accrued liabilities" and operating lease liabilities are included in "Other long-term liabilities" within the Balance Sheets.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of April 28, 2019 are as follows:
|
Commitments and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Deferred Compensation | The Company's liability for the deferred compensation plan is presented below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Earn-out Liabilities by Classification | A summary of earn-out liabilities, included in "Accrued liabilities" and "Other long-term liabilities" on the Balance Sheets, by classification follows:
|
Concentration of Risk (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Significant Customers Accounting For At Least 10% Of Net Sales | The following significant customers accounted for at least 10% of net sales in one or more of the periods indicated:
(1) Premier is a distributor with a concentration of sales to Samsung. The above percentages represent the Company's estimate of the sales activity related to Samsung that is passing through this distributor. The following table shows the customers that have an outstanding receivable balance that represents at least 10% of total net receivables as of the dates indicated:
|
Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Segment | Net sales by segment are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income by Segment and Reconciliation to Consolidated Operating Income | Income by segment and reconciliation to consolidated operating income:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales Activity By Product Line | The table below provides net sales activity by product line on a comparative basis:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers by Sales Channel |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales Activity By Geographic Region | Net sales activity by geographic region is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Sales Activity To Countries That Represented Greater Than 10% Of Total Net Sales | The table below summarizes sales activity to countries that represented greater than 10% of total net sales for at least one of the periods presented:
|
Stock Repurchase Program (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of Treasury Stock | The following table summarizes activity under the program for the presented periods:
|
Organization and Basis of Presentation (Fiscal Year) (Details) |
3 Months Ended | |
---|---|---|
Apr. 28, 2019
weeks
week
|
Apr. 29, 2018
weeks
|
|
52 Week Fiscal Year [Member] | ||
Organization And Basis Of Presentation [Line Items] | ||
Number of weeks in the fiscal year reporting period | 52 | |
Number of weeks in a quarter for 52 week fiscal period | 13 | 13 |
53 Week Fiscal Year [Member] | ||
Organization And Basis Of Presentation [Line Items] | ||
Number of weeks in the fiscal year reporting period | 53 | |
Number of weeks in the 4th quarter for 53 week fiscal period | week | 14 |
Organization and Basis of Presentation (Acquisitions) (Details) - USD ($) $ in Thousands |
Aug. 17, 2018 |
May 02, 2018 |
Apr. 28, 2019 |
Jan. 27, 2019 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 351,141 | $ 351,141 | ||
Trackio International AG [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 8,500 | |||
Goodwill | 4,300 | |||
Intangibles acquired | 3,000 | |||
Tangible assets acquired | $ 300 | |||
IC Interconnect, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 4,900 | |||
Cash paid to to acquire business | 7,400 | |||
Intangibles acquired | $ 2,500 |
Organization and Basis of Presentation (Legal Settlement) (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Aug. 01, 2018 |
Apr. 28, 2019 |
Oct. 28, 2018 |
Jul. 29, 2018 |
|
Loss Contingencies [Line Items] | ||||
Litigation settlement | $ 9.0 | |||
Selling, General and Administrative Expenses [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement | $ 1.0 | $ 1.3 | $ 6.7 |
Organization and Basis of Presentation (Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands |
Apr. 28, 2019 |
Jan. 28, 2019 |
Jan. 27, 2019 |
Apr. 29, 2018 |
---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets (1) | $ 11,981 | |||
Total operating lease liabilities | 12,764 | |||
Retained earnings | 588,224 | $ 574,930 | ||
Prepaid taxes | $ 11,186 | $ 8,406 | ||
ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets (1) | $ 13,000 | |||
Total operating lease liabilities | $ 13,800 | |||
Accounting Standards Update 2014-09 | Restatement Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 11,100 | |||
Accounting Standards Update 2016-16 | Restatement Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | 1,600 | |||
Deferred tax assets | 3,700 | |||
Prepaid taxes | $ 5,500 |
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 28, 2019 |
Apr. 29, 2018 |
|
Earnings Per Share [Abstract] | ||
Net income | $ 13,294 | $ 12,382 |
Weighted average common shares outstanding - basic | 66,105 | 66,324 |
Dilutive effect of options and restricted stock units | 1,871 | 1,871 |
Weighted average common shares outstanding - diluted | 67,976 | 68,195 |
Basic earnings per common share (in dollars per share) | $ 0.20 | $ 0.19 |
Diluted earnings per common share (in dollars per share) | $ 0.20 | $ 0.18 |
Anti-dilutive shares not included in the above calculations | 500 | 146 |
Share-Based Compensation - The Schedule of the Assumptions Used (Details) - Market Performance Restricted Stock Units |
Apr. 28, 2019
$ / shares
|
---|---|
Share Price Equals To Or Exceeds $71.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life, in years | 1 year |
Estimated volatility | 34.30% |
Dividend yield | 0.00% |
Risk-free interest rate | 2.50% |
Weighted average fair value on grant date | $ 44.32 |
Share Price Over $95.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life, in years | 2 years 1 month 6 days |
Estimated volatility | 34.30% |
Dividend yield | 0.00% |
Risk-free interest rate | 2.50% |
Weighted average fair value on grant date | $ 33.19 |
Investments - Summary Of Investments (Details) - USD ($) $ in Thousands |
Apr. 28, 2019 |
Jan. 27, 2019 |
---|---|---|
Investment [Line Items] | ||
Available-for-sale securities, market value | $ 3,605 | $ 3,105 |
Available-for-sale securities, adjusted cost | 3,605 | 3,105 |
Available-for-sale securities, gross unrealized gain | 0 | 0 |
Convertible debt | ||
Investment [Line Items] | ||
Available-for-sale securities, market value | 3,605 | 3,105 |
Available-for-sale securities, adjusted cost | 3,605 | 3,105 |
Available-for-sale securities, gross unrealized gain | $ 0 | $ 0 |
Investments - Summary of Maturities of Available-for-sale Securities (Details) - USD ($) $ in Thousands |
Apr. 28, 2019 |
Jan. 27, 2019 |
---|---|---|
Market Value | ||
Within 1 year | $ 3,605 | $ 3,105 |
After 1 year through 5 years | 0 | 0 |
Total investments | 3,605 | 3,105 |
Adjusted Cost | ||
Within 1 year | 3,605 | 3,105 |
After 1 year through 5 years | 0 | 0 |
Total investments | $ 3,605 | $ 3,105 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands |
Apr. 28, 2019 |
Jan. 27, 2019 |
---|---|---|
Term loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 110,625 | $ 115,300 |
(Level 2) | Revolving loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 97,000 | $ 97,000 |
Fair Value Measurements - Level 3 Reconciliation of the Earn-out Liability (Details) $ in Thousands |
3 Months Ended |
---|---|
Apr. 28, 2019
USD ($)
| |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 2,623 |
Changes in the fair value of contingent earn-out obligations | (2,161) |
Ending balance | 462 |
AptoVision | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 2,161 |
Changes in the fair value of contingent earn-out obligations | (2,161) |
Ending balance | 0 |
Cycleo | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 462 |
Changes in the fair value of contingent earn-out obligations | 0 |
Ending balance | $ 462 |
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands |
Apr. 28, 2019 |
Jan. 27, 2019 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,157 | $ 2,057 |
Work in progress | 50,617 | 44,530 |
Finished goods | 20,706 | 17,092 |
Inventories | $ 73,480 | $ 63,679 |
Goodwill and Intangible Assets - Changes in Carrying Amounts of Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Apr. 28, 2019
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 351,141 |
Additions | 0 |
Ending balance | 351,141 |
Signal Integrity | |
Goodwill [Roll Forward] | |
Beginning balance | 274,085 |
Additions | 0 |
Ending balance | 274,085 |
Wireless and Sensing | |
Goodwill [Roll Forward] | |
Beginning balance | 72,128 |
Additions | 0 |
Ending balance | 72,128 |
Protection | |
Goodwill [Roll Forward] | |
Beginning balance | 4,928 |
Additions | 0 |
Ending balance | $ 4,928 |
Goodwill and Intangible Assets - Schedule of Amortization Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 28, 2019 |
Apr. 29, 2018 |
|
Goodwill [Line Items] | ||
Intangible amortization | $ 5,143 | $ 6,961 |
Core Technologies [Member] | ||
Goodwill [Line Items] | ||
Intangible amortization | 4,160 | 5,528 |
Customer Relationships [Member] | ||
Goodwill [Line Items] | ||
Intangible amortization | $ 983 | $ 1,433 |
Goodwill and Intangible Assets - Schedule of Indefinite-lived Intangible Assets Resulting From Additions to IPR&D (Details) $ in Thousands |
3 Months Ended |
---|---|
Apr. 28, 2019
USD ($)
| |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning balance, net carrying amount | $ 2,300 |
In-process research and development through acquisitions | 0 |
Ending balance, net carrying amount | $ 2,300 |
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands |
Apr. 28, 2019 |
Jan. 27, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 207,625 | $ 212,312 |
Current portion | (18,281) | (18,269) |
Total long-term debt | 189,344 | 194,043 |
Debt issuance costs | (1,074) | (1,198) |
Total long-term debt, net of debt issuance costs | $ 188,270 | $ 192,845 |
Weighted-average interest rate | 4.12% | 4.14% |
Term loans | ||
Debt Instrument [Line Items] | ||
Total debt | $ 110,625 | $ 115,312 |
Revolving loans | ||
Debt Instrument [Line Items] | ||
Total debt | $ 97,000 | $ 97,000 |
Long-Term Debt - Narrative (Details) - USD ($) |
Apr. 28, 2019 |
Nov. 15, 2016 |
---|---|---|
Term loans | ||
Facilities, maximum borrowing capacity | $ 150,000,000.0 | |
Revolving loans | ||
Facilities, maximum borrowing capacity | $ 250,000,000.0 | |
Undrawn revolving commitments | $ 153,000,000.0 | |
Swingline Loans [Member] | ||
Amounts outstanding | 0 | |
Foreign Line of Credit [Member] | ||
Amounts outstanding | $ 0 |
Long-Term Debt - Scheduled Maturities of Term Loans (Details) - Term loans - USD ($) $ in Thousands |
Apr. 28, 2019 |
Jan. 27, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
2020 | $ 14,062 | |
2021 | 19,688 | |
2022 | 76,875 | |
Total debt | $ 110,625 | $ 115,300 |
Income Taxes - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 28, 2019 |
Jan. 27, 2019 |
|
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate | 21.00% | |
Net tax benefits, if recognized, would impact the effective tax rate | $ 4.4 | $ 4.5 |
Income Taxes - Summary of Income Tax Contingencies (Details) $ in Thousands |
3 Months Ended |
---|---|
Apr. 28, 2019
USD ($)
| |
Income Tax Disclosure [Abstract] | |
Balance at January 27, 2019 | $ 18,293 |
Additions/(decreases) based on tax positions related to the current year | (12) |
Balance at April 28, 2019 | $ 18,281 |
Income Taxes - Liability For Uncertain Tax Positions (Details) - USD ($) $ in Thousands |
Apr. 28, 2019 |
Jan. 27, 2019 |
---|---|---|
Income Tax Contingency [Line Items] | ||
Total accrued taxes | $ 16,956 | $ 16,971 |
Deferred tax assets - non-current | ||
Income Tax Contingency [Line Items] | ||
Total accrued taxes | 12,531 | 12,492 |
Other long-term liabilities | ||
Income Tax Contingency [Line Items] | ||
Total accrued taxes | $ 4,425 | $ 4,479 |
Income Taxes - Regional Income (Loss) From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 28, 2019 |
Apr. 29, 2018 |
|
Income Tax Disclosure [Abstract] | ||
Domestic | $ (8,468) | $ (7,700) |
Foreign | 19,861 | 2,603 |
Income (loss) before taxes and equity in net losses of equity method investments | $ 11,393 | $ (5,097) |
Leases (Details) $ in Millions |
3 Months Ended |
---|---|
Apr. 28, 2019
USD ($)
| |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term - operating leases | 4 years |
Renewal term | 5 years |
Termination period | 1 year |
Lease not yet commenced | $ 3.2 |
Lease not yet commenced, term | 7 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term - operating leases | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term - operating leases | 7 years |
Leases - The Components of Lease Expense (Details) $ in Thousands |
3 Months Ended |
---|---|
Apr. 28, 2019
USD ($)
| |
Leases [Abstract] | |
Operating lease cost | $ 1,214 |
Short-term lease cost | 78 |
Sublease income | (33) |
Total lease cost | $ 1,259 |
Leases - Supplemental Cash Flow Information (Details) $ in Thousands |
3 Months Ended |
---|---|
Apr. 28, 2019
USD ($)
| |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 1,250 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 |
Leases - Other Information (Details) |
3 Months Ended |
---|---|
Apr. 28, 2019 | |
Leases [Abstract] | |
Weighted-average remaining lease term - operating leases | 4 years |
Weighted-average discount rate - operating leases | 6.60% |
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands |
Apr. 28, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Operating lease right-of-use assets (1) | $ 11,981 |
Other current liabilities (1) | 4,210 |
Operating lease liabilities (1) | 8,554 |
Total operating lease liabilities | $ 12,764 |
Leases - Maturity (Details) $ in Thousands |
Apr. 28, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
2020 (remaining nine months) | $ 3,837 |
2021 | 3,857 |
2022 | 2,485 |
2023 | 1,454 |
2024 | 1,188 |
2025 | 1,023 |
Thereafter | 874 |
Total lease payments | 14,718 |
Less imputed interest | (1,954) |
Total | $ 12,764 |
Commitments and Contingencies - Schedule of Liability for Deferred Compensation (Details) (Details) - Deferred Compensation Plan For Officers And Executives - USD ($) $ in Thousands |
Apr. 28, 2019 |
Jan. 27, 2019 |
---|---|---|
Loss Contingencies [Line Items] | ||
Total deferred compensation liabilities under this plan | $ 32,039 | $ 29,454 |
Accrued liabilities | ||
Loss Contingencies [Line Items] | ||
Accrued liabilities | 2,203 | 2,203 |
Other long-term liabilities | ||
Loss Contingencies [Line Items] | ||
Other long-term liabilities | $ 29,836 | $ 27,251 |
Concentration of Risk - Narrative (Details) |
3 Months Ended | |
---|---|---|
Apr. 28, 2019 |
Apr. 29, 2018 |
|
Cost of Silicon Wafers | Supplier concentration risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15.00% | 14.00% |
Net sales | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Net sales | Distributor concentration risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 62.00% | 69.00% |
Segment Information - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Apr. 28, 2019
USD ($)
reportable_segment
operating_segment
| |
Segment Reporting Information [Line Items] | |
Number of operating segments | operating_segment | 3 |
Number of reportable segments | reportable_segment | 1 |
Warrant vesting costs | $ 21.5 |
Warrant vesting costs due to acceleration | $ 15.9 |
Net sales | |
Segment Reporting Information [Line Items] | |
Minimum concentration risk threshold | 10.00% |
Segment Information - Net Sales Activity by Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 28, 2019 |
Apr. 29, 2018 |
|
Revenue from External Customer [Line Items] | ||
Net sales | $ 131,354 | $ 130,429 |
Semiconductor Products Group | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 131,354 | $ 130,429 |
Segment Information - Revenue by Sales Channel (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 28, 2019 |
Apr. 29, 2018 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 131,354 | $ 130,429 |
Distributor | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 81,147 | 111,340 |
Direct | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 50,207 | 40,590 |
Other: Warrant Shares | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue offset | $ 0 | $ (21,501) |
Segment Information - Net Sales Activity by Geographic Region (Details) - Net sales |
3 Months Ended | |
---|---|---|
Apr. 28, 2019 |
Apr. 29, 2018 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Asia-Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 78.00% | 68.00% |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 12.00% | 27.00% |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 10.00% | 9.00% |
Other: Warrant Shares | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 0.00% | (4.00%) |
Segment Information - Summary of Sales Activity to Countries that Represented Greater than 10% of Total Net Sales (Details) - Net sales |
3 Months Ended | |
---|---|---|
Apr. 28, 2019 |
Apr. 29, 2018 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Geographic Concentration Risk [Member] | China (including Hong Kong) | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 53.00% | 50.00% |
Geographic Concentration Risk [Member] | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 10.00% | 14.00% |
Stock Repurchase Program - Narrative (Details) - USD ($) |
3 Months Ended | 133 Months Ended | ||
---|---|---|---|---|
Apr. 28, 2019 |
Apr. 29, 2018 |
Apr. 28, 2019 |
May 24, 2018 |
|
Equity [Abstract] | ||||
Additional stock repurchase amount authorized | $ 250,000,000.0 | |||
Shares repurchased under the stock repurchase program, value | $ 110,000 | $ 25,325,000 | $ 267,700,000 | |
Remaining authorization under stock repurchase program | $ 180,700,000 | $ 180,700,000 |
Stock Repurchase Program - Summary of Stock Repurchases (Details) - USD ($) $ in Thousands |
3 Months Ended | 133 Months Ended | |
---|---|---|---|
Apr. 28, 2019 |
Apr. 29, 2018 |
Apr. 28, 2019 |
|
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased under the stock repurchase program, shares | 2,211 | 645,144 | |
Shares repurchased under the stock repurchase program, value | $ 110 | $ 25,325 | $ 267,700 |
Shares repurchased under the stock repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased under the stock repurchase program, shares | 2,211 | 645,144 | |
Shares repurchased under the stock repurchase program, value | $ 110 | $ 25,325 |
Derivatives and Hedging Activities - Narrative (Details) |
3 Months Ended |
---|---|
Apr. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Objectives for using derivative instruments | The Company is exposed to certain risk arising from both its business operations and economic conditions and principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company, on a routine basis and in the normal course of business, experiences expenses denominated in Swiss Franc, Canadian Dollar ("CAD") and Great British Pound ("GBP"). Such expenses expose the Company to exchange rate fluctuations between these foreign currencies and the U.S. Dollar ("USD"). The Company occasionally uses derivative financial instruments, in the form of forward contracts, to mitigate a portion of the risk associated with adverse movements in these foreign currency exchange rates during a twelve month window. |
S?ZMF%BE;P-\\R2[21A"PG<%8F;_)Z!41FV#(6SCPEVA"*C
M,W"R!C[&\V6\I.,%&2_&>+&,5]X:3!(Y2MII#3CPS%NJ'25+!2MH-QGI)L-N
M 8-L F@!T >0Q#YD31>6?
MF&-58?2$S-S[@84GWAVI[TT=G+$5\&UL?5-AC]0@$/TKA!]P=-G5NVS:)K=GC"::;,[H?6;;:4L.
MF IT>_Y[@?9JU>H78(9Y;]X,0SZB?78=@"
[ M) =+;+HN]@B,X-7LH.+)6[06M@_9U!FS&E"7QU/LFE]<+ B
MZT4#W\'_Z"\6+;:H5%)#YZ3IB(4ZIP_)Z;P/^ CX*6%TJS,)E5R->0[&ERJG
MNY 0*"A]4!"XW> 1E I"F,;O69,N(0-Q?7Y5_Q1KQUJNPL&C4;]DY=N$2
ME.5:(0-MB>]WQ],AQ,> )PZ379U1J.2B]7,POC8ESH(@$%"[P,#\=H4'$"(0
M>1F_$R=>4@;@^OS*_CG6[FNY, L/6OSBC>M+G&/40,M&X1[U] 52/1\P2L5_
M@RL('QZ4^!RU%C:NJ!ZMTS*Q>"F2OF#@L#M"@^@5!#"-'[/FG0)&8CK\ZOZIU@[UG(1#AZ,^B4KW^;TCI(*
M:C$H_V3&SS#7&PO=V]R:W-H965T