CIRRUS LOGIC INC, 10-K filed on 5/24/2017
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Mar. 25, 2017
May 19, 2017
Sep. 24, 2016
Document and Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Entity Registrant Name
CIRRUS LOGIC INC 
 
 
Entity Central Index Key
0000772406 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Document Period End Date
Mar. 25, 2017 
 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
FY 
 
 
Current Fiscal Year End Date
--03-25 
 
 
Entity Common Stock, Shares Outstanding
 
63,891,409 
 
Entity Public Float
 
 
$ 2,115,130,259 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Mar. 26, 2016
Assets
 
 
Cash and cash equivalents
$ 351,166 
$ 168,793 
Marketable securities
99,813 
60,582 
Accounts receivable, net
119,974 
88,532 
Inventories
167,895 
142,015 
Prepaid assets
24,987 
29,924 
Other current assets
12,093 
16,283 
Total current assets
775,928 
506,129 
Long-term marketable securities
 
20,631 
Property and equipment, net
168,139 
162,656 
Intangibles, net
135,188 
162,832 
Goodwill
286,767 
287,518 
Deferred tax assets
32,841 
25,772 
Other assets
14,607 
16,345 
Total assets
1,413,470 
1,181,883 
Liabilities and Stockholders' Equity
 
 
Accounts payable
73,811 
71,619 
Accrued salaries and benefits
40,190 
21,239 
Software license agreement
14,990 
20,308 
Other accrued liabilities
15,084 
14,958 
Total current liabilities
144,075 
128,124 
Debt
60,000 
160,439 
Software license agreements
3,146 
8,136 
Other long-term liabilities
54,557 
25,701 
Total long-term liabilities
117,703 
194,276 
Stockholders' equity:
 
 
Preferred stock, 5.0 million shares authorized but unissued
   
   
Common stock, $0.001 par value, 280,000 shares authorized, 64,295 shares and 62,630 shares issued and outstanding at March 25, 2017 and March 26, 2016, respectively
64 
63 
Additional paid-in capital
1,259,215 
1,203,433 
Accumulated deficit
(107,014)
(344,345)
Accumulated other comprehensive loss
(573)
332 
Total stockholders' equity
1,151,692 
859,483 
Total liabilities and stockholders' equity
$ 1,413,470 
$ 1,181,883 
Consolidated Balance Sheets (Parenthetical) (USD $)
Mar. 25, 2017
Mar. 26, 2016
Consolidated Balance Sheets [Abstract]
 
 
Preferred Stock, shares authorized but unissued
5,000,000 
5,000,000 
Common stock, par value
$ 0.001 
$ 0.001 
Common stock, shares authorized
280,000,000 
280,000,000 
Common stock, shares issued
64,295,000 
62,630,000 
Common stock, shares outstanding
64,295,000 
62,630,000 
Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Consolidated Statements of Income [Abstract]
 
 
 
Net sales
$ 1,538,940 
$ 1,169,251 
$ 916,568 
Cost of sales
781,125 
614,411 
490,820 
Gross profit
757,815 
554,840 
425,748 
Operating expenses:
 
 
 
Research and development
303,658 
269,217 
197,878 
Selling, general and administrative
127,265 
117,082 
99,509 
Acquisition related costs
 
 
18,137 
Restructuring and other, net
 
 
1,455 
Asset impairment
9,842 
 
 
Patent agreement and other
 
(11,670)
 
Total operating expenses
440,765 
374,629 
316,979 
Income from operations
317,050 
180,211 
108,769 
Interest income
1,676 
877 
579 
Interest expense
(3,600)
(3,308)
(5,627)
Other expense
(79)
(1,791)
(12,172)
Income before income taxes
315,047 
175,989 
91,549 
Provision for income taxes
53,838 
52,359 
36,371 
Net income
$ 261,209 
$ 123,630 
$ 55,178 
Basic earnings per share
$ 4.12 
$ 1.96 
$ 0.88 
Diluted earnings per share
$ 3.92 
$ 1.87 
$ 0.85 
Basic weighted average common shares outstanding
63,329 
63,197 
62,503 
Diluted weighted average common shares outstanding
66,561 
65,993 
65,235 
Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
Net income
$ 261,209 
$ 123,630 
$ 55,178 
Foreign currency translation (gain) loss
(826)
294 
 
Unrealized (gain) loss on marketable securities
47 
(24)
107 
Actuarial (gain) loss on pension plan
(79)
2,660 
(1,625)
Reclassification of actuarial (gain) loss to net income
(89)
49 
 
Benefit (provision) for income taxes
42 
(537)
294 
Comprehensive income
$ 260,304 
$ 126,072 
$ 53,954 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Cash flows from operating activities:
 
 
 
Net income
$ 261,209 
$ 123,630 
$ 55,178 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
63,433 
58,060 
34,855 
Stock compensation expense
39,593 
33,506 
37,549 
Deferred income taxes
10,885 
23,202 
32,238 
Loss on retirement or write-off of long-lived assets
10,387 
2,753 
1,618 
Actuarial loss amortization on defined benefit pension plan
116 
729 
292 
Excess tax benefit from employee stock awards
 
(3,850)
(37,692)
Other non-cash charges
8,980 
19,702 
22,167 
Net change in operating assets and liabilities:
 
 
 
Accounts receivable, net
(31,442)
24,156 
(37,344)
Inventories
(25,880)
(57,819)
16,077 
Other assets
575 
(1,522)
285 
Accounts payable
1,772 
(41,456)
36,504 
Accrued salaries and benefits
18,951 
(2,993)
7,047 
Deferred income
 
(6,105)
(77)
Income taxes payable
10,969 
(11,807)
(639)
Other accrued liabilities
203 
(11,140)
(4,581)
Net cash provided by operating activities
369,751 
149,046 
163,477 
Cash flows from investing activities:
 
 
 
Maturities and sales of available for sale marketable securities
212,863 
125,660 
301,847 
Purchases of available for sale marketable securities
(231,432)
(22,570)
(133,436)
Purchases of property, equipment and software
(41,849)
(41,569)
(32,311)
Investments in technology
(9,447)
(4,519)
(4,387)
Loss on foreign exchange hedging activities
 
 
(11,976)
Acquisition of businesses, net of cash obtained
 
(36,759)
 
Net cash (used in) provided by investing activities
(69,865)
20,243 
(324,401)
Cash flows from financing activities:
 
 
 
Proceeds from long-term revolver
 
 
226,439 
Principal payments on long-term revolver
(100,439)
(20,000)
(46,000)
Debt issuance costs
(2,152)
 
(2,825)
Payments on capital lease agreements
(699)
 
 
Issuance of common stock, net of shares withheld for taxes
16,518 
6,617 
5,327 
Repurchase of stock to satisfy employee tax withholding obligations
(14,089)
(6,861)
(4,624)
Repurchase and retirement of common stock
(15,439)
(60,503)
(10,534)
Excess tax benefit from employee stock awards
 
3,850 
37,692 
Contingent consideration payments
(1,213)
 
 
Net cash (used in) provided by financing activities
(117,513)
(76,897)
205,475 
Net increase in cash and cash equivalents
182,373 
92,392 
44,551 
Cash and cash equivalents at beginning of period
168,793 
76,401 
31,850 
Cash and cash equivalents at end of period
351,166 
168,793 
76,401 
Cash payments during the year for:
 
 
 
Income taxes
8,001 
23,785 
4,973 
Interest expense
2,947 
3,318 
2,391 
Wolfson [Member]
 
 
 
Cash flows from investing activities:
 
 
 
Acquisition of businesses, net of cash obtained
 
 
$ (444,138)
Consolidated Statements of Stockholders' Equity (USD $)
In Thousands
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Income / (Loss) [Member]
Total
Balance at Mar. 29, 2014
$ 62 
$ 1,078,816 
$ (440,634)
$ (886)
$ 637,358 
Balance, shares at Mar. 29, 2014
61,956 
 
 
 
 
Net income
 
 
55,178 
 
55,178 
Change in unrealized gain (loss) on marketable securities, net of tax
 
 
 
69 
69 
Change in pension liability, net of tax
 
 
 
(1,293)
(1,293)
Change in foreign currency translation adjustments
 
(29)
 
 
(29)
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, value
5,326 
(4,624)
 
704 
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, shares
1,709 
 
 
 
 
Repurchase and retirement of common stock, value
(1)
 
(10,533)
 
(10,534)
Repurchase and retirement of common stock, shares
(580)
 
 
 
 
Amortization of deferred stock compensation
 
37,626 
 
 
37,626 
Excess tax benefit from employee stock awards
 
37,692 
 
 
37,692 
Balance at Mar. 28, 2015
63 
1,159,431 
(400,613)
(2,110)
756,771 
Balance, shares at Mar. 28, 2015
63,085 
 
 
 
 
Net income
 
 
123,630 
 
123,630 
Change in unrealized gain (loss) on marketable securities, net of tax
 
 
 
(15)
(15)
Change in pension liability, net of tax
 
 
 
2,163 
2,163 
Change in foreign currency translation adjustments
 
 
 
294 
294 
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, value
6,617 
(6,861)
 
(242)
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, shares
1,552 
 
 
 
 
Repurchase and retirement of common stock, value
(2)
 
(60,501)
 
(60,503)
Repurchase and retirement of common stock, shares
(2,007)
 
 
 
 
Amortization of deferred stock compensation
 
33,535 
 
 
33,535 
Excess tax benefit from employee stock awards
 
3,850 
 
 
3,850 
Balance at Mar. 26, 2016
63 
1,203,433 
(344,345)
332 
859,483 
Balance, shares at Mar. 26, 2016
62,630 
 
 
 
 
Net income
 
 
261,209 
 
261,209 
Change in unrealized gain (loss) on marketable securities, net of tax
 
 
 
31 
31 
Change in pension liability, net of tax
 
 
 
(110)
(110)
Change in foreign currency translation adjustments
 
 
 
(826)
(826)
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, value
16,516 
(14,089)
 
2,429 
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes, shares
2,145 
 
 
 
 
Cumulative effect of adoption of ASU 2016-09
 
 
5,649 
 
5,649 
Repurchase and retirement of common stock, value
(1)
 
(15,438)
 
(15,439)
Repurchase and retirement of common stock, shares
(480)
 
 
 
(500)
Amortization of deferred stock compensation
 
39,593 
 
 
39,593 
Excess tax benefit from employee stock awards
 
(327)
 
 
(327)
Balance at Mar. 25, 2017
$ 64 
$ 1,259,215 
$ (107,014)
$ (573)
$ 1,151,692 
Balance, shares at Mar. 25, 2017
64,295 
 
 
 
 
Description of Business
Description of Business

1.      Description of Business 



Description of Business



Cirrus Logic, Inc. (“Cirrus Logic,” “We,” “Us,” “Our,” or the “Company”) is a leader in high performance, low-power integrated circuits (“ICs”) for audio and voice signal processing applications. Cirrus Logic’s products span the entire audio signal chain, from capture to playback, providing innovative products for the world’s top smartphones, tablets, digital headsets, wearables and emerging smart home applications.   



We were incorporated in California in 1984, became a public company in 1989, and were reincorporated in the State of Delaware in February 1999.  Our primary facility housing engineering, sales and marketing, and administration functions is located in Austin, Texas.  We also have offices in various other locations in the United States, United Kingdom, Sweden, Spain, Australia and Asia, including the People’s Republic of China, Hong Kong, South Korea, Japan, Singapore, and Taiwan.  Our common stock, which has been publicly traded since 1989, is listed on the NASDAQ Global Select Market under the symbol CRUS. 



Basis of Presentation



We prepare financial statements on a 52- or 53-week year that ends on the last Saturday in March.  Fiscal years 2017, 2016, and 2015 were 52-week years.  The next 53-week year will be fiscal year 2018.



Principles of Consolidation



The accompanying consolidated financial statements have been prepared in accordance with U. S. generally accepted accounting principles (U.S. GAAP) and include the accounts of the Company and its wholly-owned subsidiaries.  All significant intercompany balances and transactions have been eliminated. 



Reclassifications    



Certain reclassifications have been made to prior year balances in order to conform to the current year’s presentation of financial information. 



Use of Estimates



The preparation of financial statements in accordance with U.S. GAAP requires the use of management estimates.  These estimates are subjective in nature and involve judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at fiscal year-end and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from these estimates.

Summary of Significant Accounting Policies
Summary of Significant Accounting Policies

2.      Summary of Significant Accounting Policies



Cash and Cash Equivalents



Cash and cash equivalents consist primarily of money market funds, commercial paper, and U.S. Government Treasury and Agency instruments with original maturities of three months or less at the date of purchase.    



Inventories 



We use the lower of cost or net realizable value to value our inventories, following the adoption of ASU 2015-11, with cost being determined on a first-in, first-out basis.  One of the factors we consistently evaluate in the application of this method is the extent to which products are accepted into the marketplace.  By policy, we evaluate market acceptance based on known business factors and conditions by comparing forecasted customer unit demand for our products over a specific future period, or demand horizon, to quantities on hand at the end of each accounting period.



On a quarterly and annual basis, we analyze inventories on a part-by-part basis.  Product life cycles and the competitive nature of the industry are factors considered in the evaluation of customer unit demand at the end of each quarterly accounting period.  Inventory quantities on-hand in excess of forecasted demand is considered to have reduced market value and, therefore, the cost basis is adjusted to the lower of cost or net realizable value.  Typically, market values for excess or obsolete inventories are considered to be zero.  Inventory charges recorded for excess and obsolete inventory, including scrapped inventory, represented $6.7 million and $4.8 million, in fiscal year 2017 and 2016, respectively.  Inventory charges in fiscal year 2017 and 2016 related to a combination of quality issues and inventory exceeding demand.    



Inventories were comprised of the following (in thousands):





 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Work in process

$

83,332 

 

$

67,827 

Finished goods

 

84,563 

 

 

74,188 



$

167,895 

 

$

142,015 



Property, Plant and Equipment, net



Property, plant and equipment is recorded at cost, net of depreciation and amortization.  Depreciation and amortization is calculated on a straight-line basis over estimated economic lives, ranging from three to 39 years.  Leasehold improvements are depreciated over the shorter of the term of the lease or the estimated useful life.  Furniture, fixtures, machinery, and equipment are all depreciated over a useful life of three to 10 years, while buildings are depreciated over a period of up to 39 years.  In general, our capitalized software is amortized over a useful life of three years, with capitalized enterprise resource planning software being amortized over a useful life of 10 years.  Gains or losses related to retirements or dispositions of fixed assets are recognized in the period incurred.  Additionally, if impairment indicators exist, the Company will assess the carrying value of the associated asset.  In the fourth quarter of fiscal year 2017, the Company reassessed the carrying value of the property located in Edinburgh, Scotland, resulting in an asset impairment charge of $9.8 million.



Property, plant and equipment was comprised of the following (in thousands):







 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Land

$

26,379 

 

$

26,379 

Buildings

 

74,266 

 

 

73,513 

Furniture and fixtures

 

14,231 

 

 

13,226 

Leasehold improvements

 

4,355 

 

 

2,637 

Machinery and equipment

 

123,054 

 

 

105,880 

Capitalized software

 

24,839 

 

 

25,127 

Construction in progress

 

22,972 

 

 

5,411 

Total property, plant and equipment

 

290,096 

 

 

252,173 

Less: Accumulated depreciation and amortization

 

(121,957)

 

 

(89,517)

Property, plant and equipment, net

$

168,139 

 

$

162,656 



Depreciation and amortization expense on property, plant, and equipment for fiscal years 2017, 2016, and 2015 was $26.1 million, $22.3 million, and $15.4 million, respectively.    



Goodwill and Intangibles, net



Intangible assets include purchased technology licenses and patents that are reported at cost and are amortized on a straight-line basis over their useful lives, generally ranging from one to ten years.  Acquired intangibles include existing technology, core technology or patents, license agreements, in-process research & development, trademarks, tradenames, customer relationships, non-compete agreements, and backlog.  These assets are amortized on a straight-line basis over lives ranging from one to fifteen years. 



Goodwill is recorded at the time of an acquisition and is calculated as the difference between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired.  Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests.  The Company tests goodwill and indefinite lived intangibles for impairment on an annual basis or more frequently if the Company believes indicators of impairment exist.  Impairment evaluations involve management’s assessment of qualitative factors to determine whether it is more likely than not that goodwill and other intangible assets are impaired.  If management concludes from its assessment of qualitative factors that it is more likely than not that impairment exists, then a quantitative impairment test will be performed involving management estimates of asset useful lives and future cash flows.  Significant management judgment is required in the forecasts of future operating results that are used in these evaluations.  If our actual results, or the plans and estimates used in future impairment analyses, are lower than the original estimates used to assess the recoverability of these assets, we could incur additional impairment charges in a future period.  The Company has recorded no goodwill impairments in fiscal years 2017, 2016, and 2015.  There were no material intangible asset impairments in fiscal years 2017, 2016, or 2015.    



Long-Lived Assets



We test for impairment losses on long-lived assets and definite-lived intangibles used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts.  We measure any impairment loss by comparing the fair value of the asset to its carrying amount.  We estimate fair value based on discounted future cash flows, quoted market prices, or independent appraisals.    



Foreign Currency Translation

Prior to the fiscal year 2015 acquisition of Wolfson Microelectronics (“Wolfson,” the “Acquisition”), each Cirrus Logic legal entity was US dollar functional.  Additionally, each of the acquired Wolfson legal entities were also designated as US dollar functional.  These designations were determined individually by Cirrus Logic and Wolfson prior to the Acquisition.  Subsequent to the integration of Wolfson, the Company reassessed the functional currencies of each legal entity based on the relevant facts and circumstances, as well as in accordance with the applicable accounting guidance contained in Accounting Standards Codification (“ASC”) 830-10, “Foreign Currency Matters.”  Based on its analysis and on the change in operating structure brought about by the Acquisition, the Company determined that the functional currency of some of its subsidiaries had changed from the US dollar to the local currency.  The Company’s main entities, including the entities that generate the majority of sales and employ the majority of employees, remain US dollar functional.  The change was effective beginning in fiscal year 2016 and had an immaterial effect on the financial statements.  Beginning in fiscal year 2016 foreign currency translation gains and losses are reported as a component of Accumulated Other Comprehensive Gain / (Loss).    



Pension 



Defined benefit pension plans are accounted for based upon the provisions of ASC Topic 715, “Compensation – Retirement Benefits.”  



The funded status of the plan is recognized in the Consolidated Balance Sheet.   Subsequent re-measurement of plan assets and benefit obligations, if deemed necessary, would be reflected in the Consolidated Balance Sheet in the subsequent interim period to reflect the overfunded or underfunded status of the plan.



The Company engages external actuaries on at least an annual basis to provide a valuation of the plan’s assets and projected benefit obligation and to record the net periodic pension cost.  On a quarterly basis, the Company will evaluate current information available to us to determine whether the plan’s assets and projected benefit obligation should be re-measured. 



Concentration of Credit Risk



Financial instruments that potentially subject us to material concentrations of credit risk consist primarily of cash equivalents, marketable securities, long-term marketable securities, and trade accounts receivable.  We are exposed to credit risk to the extent of the amounts recorded on the balance sheet.  By policy, our cash equivalents, marketable securities, and long-term marketable securities are subject to certain nationally recognized credit standards, issuer concentrations, sovereign risk, and marketability or liquidity considerations.



In evaluating our trade receivables, we perform credit evaluations of our major customers’ financial condition and monitor closely all of our receivables to limit our financial exposure by limiting the length of time and amount of credit extended.  In certain situations, we may require payment in advance or utilize letters of credit to reduce credit risk.  By policy, we establish a reserve for trade accounts receivable based on the type of business in which a customer is engaged, the length of time a trade account receivable is outstanding, and other knowledge that we may possess relating to the probability that a trade receivable is at risk for non-payment. 



We had three contract manufacturers, Hongfujin Precision, Protek, and Jabil Circuits who represented 20 percent, 15 percent, and 13 percent, respectively of our consolidated gross trade accounts receivable as of the end of fiscal year 2017.  Hongfujin Precision and Protek represented 23 percent and 11 percent, respectively, and Samsung Electronics, a direct customer, represented 23 percent of our consolidated gross trade accounts receivable as of the end of fiscal year 2016.  No other distributor or customer had receivable balances that represented more than 10 percent of consolidated gross trade accounts receivable as of the end of fiscal year 2017 and 2016.



Since the components we produce are largely proprietary and generally not available from second sources, we consider our end customer to be the entity specifying the use of our component in their design.  These end customers may then purchase our products directly from us, from a distributor, or through a third party manufacturer contracted to produce their end product.  For fiscal years 2017, 2016, and 2015, our ten largest end customers represented approximately 92 percent, 89 percent, and 87 percent, of our sales, respectively.  For fiscal years 2017, 2016, and 2015,  we had one end customer, Apple Inc., who purchased through multiple contract manufacturers and represented approximately 79 percent, 66 percent, and 72 percent, of the Company’s total sales, respectively.  Samsung Electronics represented 15 percent of the Company’s total sales in fiscal year 2016.  No other customer or distributor represented more than 10 percent of net sales in fiscal years 2017, 2016, or 2015.    



Revenue Recognition

We recognize revenue when all of the following criteria are met: persuasive evidence that an arrangement exists, delivery of goods has occurred, the sales price is fixed or determinable and collectability is reasonably assured.  Prior to the fourth quarter of fiscal year 2016, we had a number of arrangements with distributors whereby we deferred revenue at the time of shipment of our products to those distributors.  As part of those arrangements, when a distributor resold those products to an end customer, the Company would credit the distributor the difference between (1) the original distributor price and the distributor’s agreed upon margin and (2) the final sales price to the end customer (known as the “Ship and Debit Arrangement”).  For those transactions, revenue was deferred until the product was resold by the distributor and we determined that the final sales price to the distributor was fixed or determinable.  For certain of our smaller distributors, we did not have similar Ship and Debit Arrangements and the distributors were billed at a fixed upfront price.  For those transactions, revenue was recognized upon delivery to the distributor based upon the distributor’s individual shipping terms, less an allowance for estimated returns, as the Company determined that the revenue recognition criteria were met.

In light of the fact that the distributor program had been declining as a portion of the overall business for several years, in fiscal year 2016 the Company performed a review of all distributor arrangements in an effort to streamline our distribution program and reduce overhead costs.  Based upon this review, the Company terminated its Ship and Debit Arrangements with Distributors during the fourth quarter of fiscal year 2016.  Subsequent to the termination of the Ship and Debit Arrangements, the Company began recognizing revenue for all distributors upon delivery to the distributor based upon the distributor’s individual shipping terms, less an allowance for estimated returns, as the Company’s final sales price to the distributor was fixed and determinable and the Company determined that all four criteria for revenue recognition were met.

Although the Company terminated its Ship and Debit Arrangements with all distributors along with certain ancillary agreements related to the Ship and Debit Arrangements, the Company continues to grant varying levels of stock rotation and price protection rights based on individual distributor agreements.  To the extent these rights are implicated in any transaction with a distributor, we continue to evaluate their effect on when the revenue recognition criteria have been met. 



Warranty Expense



We warrant our products and maintain a provision for warranty repair or replacement of shipped products.  The accrual represents management’s estimate of probable returns.  Our estimate is based on an analysis of our overall sales volume and historical claims experience.  The estimate is re-evaluated periodically for accuracy.



Shipping Costs



Our shipping and handling costs are included in cost of sales for all periods presented in the Consolidated Statements of Income.



Advertising Costs



Advertising costs are expensed as incurred.  Advertising costs were $1.7 million, $1.6 million, and $1.1 million, in fiscal years 2017, 2016, and 2015, respectively.



Stock-Based Compensation



Stock-based compensation is measured at the grant date based on the grant-date fair value of the awards and is recognized as an expense, on a ratable basis, over the vesting period, which is generally between zero and four years.  Determining the amount of stock-based compensation to be recorded requires the Company to develop estimates used in calculating the grant-date fair value of stock options and performance awards (also called market stock units).  The Company calculates the grant-date fair value for stock options and market stock units using the Black-Scholes valuation model and the Monte Carlo simulation, respectively.  The use of valuation models requires the Company to make estimates of assumptions such as expected volatility, expected term, risk-free interest rate, expected dividend yield, correlation of the Company’s stock price with the Philadelphia Semiconductor Index (“the Index”) and forfeiture rates.  The grant-date fair value of restricted stock units is the market value at grant date multiplied by the number of units. 



Income Taxes



We are required to calculate income taxes in each of the jurisdictions in which we operate.  This process involves calculating the actual current tax liability as well as assessing temporary differences in the recognition of income or loss for tax and accounting purposes.  These differences result in deferred tax assets and liabilities, which are included in our Consolidated Balance Sheet.  We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized.  The Company evaluates the ability to realize its deferred tax assets based on all the facts and circumstances, including projections of future taxable income and expiration dates of carryover tax attributes. 



The calculation of our tax liabilities involves assessing uncertainties with respect to the application of complex tax rules and the potential for future adjustment of our uncertain tax positions by the Internal Revenue Service or other taxing jurisdiction.  We recognize liabilities for uncertain tax positions based on the required two-step process.  The first step requires us to determine if the weight of available evidence indicates that the tax position has met the threshold for recognition; therefore, we must evaluate whether it is more likely than not that the position will be sustained on audit, including resolution of any related appeals or litigation processes.  The second step requires us to measure the tax benefit of the tax position taken, or expected to be taken, in an income tax return as the largest amount that is more than 50 percent likely of being realized upon ultimate settlement.  We reevaluate the uncertain tax positions each quarter based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, expirations of statutes of limitation, effectively settled issues under audit, and new audit activity.  A change in the recognition step or measurement step would result in the recognition of a tax benefit or an additional charge to the tax provision in the period. 



Although we believe the measurement of our liabilities for uncertain tax positions is reasonable, we cannot assure that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals.  If additional taxes are assessed as a result of an audit or litigation, it could have a material effect on our income tax provision and net income in the period or periods for which that determination is made.  We operate within multiple taxing jurisdictions and are subject to audit in these jurisdictions.  These audits can involve complex issues which may require an extended period of time to resolve and could result in additional assessments of income tax.  We believe adequate provisions for income taxes have been made for all periods.    



Net Income Per Share



Basic net income per share is based on the weighted effect of common shares issued and outstanding and is calculated by dividing net income by the basic weighted average shares outstanding during the period.  Diluted net income per share is calculated by dividing net income by the weighted average number of common shares used in the basic net income per share calculation, plus the equivalent number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding.  These potentially dilutive items consist primarily of outstanding stock options and restricted stock grants.



The following table details the calculation of basic and diluted earnings per share for fiscal years 2017, 2016, and 2015, (in thousands, except per share amounts):





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

Numerator:

 

 

 

 

 

 

 

 

Net income

$

261,209 

 

$

123,630 

 

$

55,178 

Denominator:

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

63,329 

 

 

63,197 

 

 

62,503 

Effect of dilutive securities

 

3,232 

 

 

2,796 

 

 

2,732 

Weighted average diluted shares

 

66,561 

 

 

65,993 

 

 

65,235 

Basic earnings per share

$

4.12 

 

$

1.96 

 

$

0.88 

Diluted earnings per share

$

3.92 

 

$

1.87 

 

$

0.85 

   

The weighted outstanding options excluded from our diluted calculation for the years ended March 25, 2017, March 26, 2016, and March 28, 2015 were 389 thousand, 468 thousand, and 718 thousand, respectively, as the exercise price exceeded the average market price during the period.



Accumulated Other Comprehensive Income (Loss)



Our accumulated other comprehensive income (loss) is comprised of foreign currency translation adjustments, unrealized gains and losses on investments classified as available-for-sale and actuarial gains and losses on our pension plan assets.  See Note 14 – Accumulated Other Comprehensive Income (Loss) for additional discussion. 



Recently Issued Accounting Pronouncements



In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (ASC Topic 606).  The purpose of this ASU is to converge revenue recognition requirements per GAAP and International Financial Reporting Standards (IFRS).  The core principle of the guidance is that an entity should recognize revenue to depict the transfer 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.  In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date after public comment supported a proposal to delay the effective date of this ASU to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period.  The Company is currently in the process of reviewing our customers’ contracts in respect of performance obligation identification and satisfaction, pricing, warranties, and return rights, among other considerations.  Through this process, the Company currently expects no material modifications to its financial statements upon adoption of this ASU. 



In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.  The amendments in this ASU provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures.  The amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter.  Early application is permitted.  The Company adopted this ASU in the fourth quarter of fiscal year 2017 with no material modifications to the Company’s financial statements as a result.



In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.  The amendments in this update require that debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability and that the amortization of debt issuance costs is reported as interest expense.  ASU 2015-03 is to be applied retrospectively and represents a change in accounting principle.  In August 2015, the FASB issued FASB ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.  ASU 2015-15 clarified the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements.  Debt issuance costs related to a line-of-credit arrangement may be presented in the balance sheet as an asset and subsequently amortized ratably over the term of the arrangement regardless of whether there are any outstanding borrowings.  Both ASU 2015-03 and ASU 2015-15 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years.  Earlier adoption is permitted for financial statements that have not been previously issued.  The Company adopted these ASUs in fiscal year 2017 with no material impact to its financial statements.



In April 2015, the FASB issued ASU No. 2015-04, Compensation – Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets.  The ASU is part of the FASB’s “Simplification Initiative” to reduce complexity in accounting standards.  The FASB decided to permit entities to measure defined benefit plan assets and obligations as of the month-end that is closest to their fiscal year-end.  An entity is required to disclose the accounting policy election and the date used to measure defined benefit plan assets and obligations in accordance with the amendments in this update.  The amendments in this update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with earlier application permitted.  The Company adopted this ASU in the first quarter of fiscal year 2017, with no material impact to its financial statements.   



In July 2015, ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory was issued.  This ASU requires companies to subsequently measure inventory at the lower of cost and net realizable value versus the previous lower of cost or market.  The amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, to be applied prospectively.  Early application is permitted.  The Company early adopted this ASU in fiscal year 2017 with no material modifications to its financial statements as a result. 



In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842).  The FASB issued this update to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key leasing arrangement details.  Lessees would recognize operating leases on the balance sheet under this ASU — with the future lease payments recognized as a liability, measured at present value, and the right-of-use asset recognized for the lease term. A single lease cost would be recognized over the lease term.  For terms less than twelve months, a lessee would be permitted to make an accounting policy election to recognize lease expense for such leases generally on a straight-line basis over the lease term.  This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  Early adoption is permitted.  The Company is currently evaluating the impact of this ASU.



In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.  This ASU requires all excess tax benefits and deficiencies to be recognized as income tax benefit / expense in the income statement and presented as an operating activity in the statement of cash flows.  Forfeitures can be calculated based on either the estimated number of awards that are expected to vest, as required by current guidance, or when forfeitures actually occur.  This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods.  Early adoption is permitted, but all amendments must be adopted in the same period and any adjustments should be reflected as of the beginning of the fiscal year if adopted in an interim period.  The Company early adopted in the third quarter of fiscal year 2017, which resulted in the following:



·

We recorded excess tax benefits within income tax expense, rather than in additional paid-in capital (“APIC”), of $2.2 million, $8.0 million, $10.8 million and $1.9 million for the first, second, third and fourth quarters of fiscal year 2017, respectively.

·

We recorded a cumulative-effect adjustment as of March 27, 2016 to increase retained earnings by $5.6 million, with a corresponding increase to deferred tax assets, to recognize net operating loss and tax credit carryforwards attributable to excess tax benefits on stock-based compensation that had not been previously recognized.

·

We now include the excess tax benefits in net operating cash rather than net financing cash in our Consolidated Statements of Cash Flows.  



 We applied this change in presentation prospectively and thus prior years have not been adjusted. 

  

We elected not to change our policy on accounting for forfeitures and continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period.

  

The adoption of this new guidance impacted our previously reported quarterly results for fiscal year 2017 as follows:







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

 

Six Months Ended



 

June 25, 2016

 

September 24, 2016

 

 

September 24, 2016



 

As reported

 

As adjusted

 

As reported

 

As adjusted

 

 

As reported

 

As adjusted



 

(in thousands, except per share data)

Consolidated Condensed Statements of Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

$

5,805 

$

3,598 

$

24,608 

$

16,634 

 

$

30,413 

$

20,232 

Net income

$

15,864 

$

18,071 

$

78,065 

$

86,039 

 

$

93,929 

$

104,110 

Basic net income per share

$

0.25 

$

0.29 

$

1.24 

$

1.37 

 

$

1.50 

$

1.66 

Diluted net income per share

$

0.24 

$

0.27 

$

1.19 

$

1.30 

 

$

1.43 

$

1.58 

Weighted average shares used in diluted net income per share computation

 

65,232 

 

65,723 

 

65,717 

 

66,410 

 

 

65,521 

 

66,101 



 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Condensed Statements of Cash Flows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

12,226 

$

12,756 

$

19,990 

$

24,091 

 

$

32,216 

$

36,847 

Net cash used in financing activities

$

(13,140)

$

(13,670)

$

(13,859)

$

(17,960)

 

$

(26,999)

$

(31,630)



In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  This ASU requires credit losses on available-for-sale debt securities to be presented as an allowance rather than a write-down. Unlike current U.S. GAAP, the credit losses could be reversed with changes in estimates, and recognized in current year earnings. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods.  Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods.  The Company is currently evaluating the impact of this ASU with no expected material impact. 

  

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.  This ASU covers several cash flow issues, including the presentation of contingent consideration payments made after a business combination.  Cash payments up to the amount of the liability recognized at the acquisition date (including measurement-period adjustments) should be classified as financing activities.  This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods.  Early adoption is permitted, including in an interim period, with a required retrospective transition method applied to each period presented.  The Company early adopted in the fourth quarter of fiscal year 2017.  See Statement of Cash Flows for presentation of contingent consideration payment. 

 

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.  This ASU relates to income tax consequences of non-inventory intercompany asset transfers.  This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods.  Early adoption is permitted, as of the beginning of an annual reporting period.  The guidance requires companies to apply a modified retrospective approach with a cumulative catch-up adjustment to beginning retained earnings in the period of adoption.  The Company is currently evaluating the impact of this ASU. 

  

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business.  The update states that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business, and should be treated as an asset acquisition instead.  This ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods.  Early adoption is permitted under specific circumstances, including in an interim period, with prospective application on or after the effective date.  The Company is currently evaluating the financial statement impact of this ASU, which is dependent upon the specific terms of any applicable future acquisitions or dispositions.       



In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323).  This ASU amends the disclosure requirements for ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ASU 2016-02, Leases (Topic 842) and ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  This ASU states that if a registrant does not know or cannot reasonably estimate the impact that the adoption of the above ASUs is expected to have on the financial statements, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the standard will have on the financial statements of the registrant when adopted. This ASU was effective upon issuance.  The adoption did not have a material impact on the Company’s financial statements.    



In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.  This ASU eliminates step two of the goodwill impairment test.  An impairment charge is to be recognized for the amount by which the current value exceeds the fair value.  This ASU is effective for annual periods beginning after December 15, 2019, including interim periods.  Early adoption is permitted, for interim or annual goodwill impairment tests performed after January 1, 2017, and should be applied prospectively.  An entity is required to disclose the nature of and reason for the change in accounting principle upon transition.  That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update.  The Company is currently evaluating the impact of this ASU.

Marketable Securities
Marketable Securities

3.      Marketable Securities



The Company’s investments have been classified as available-for-sale securities in accordance with U.S. GAAP.  Marketable securities are categorized on the Consolidated Balance Sheet as Marketable securities within the short-term or long-term classification, as appropriate.



The following table is a summary of available-for-sale securities (in thousands):



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

Estimated



 

 

 

Gross

 

Gross

 

Fair Value



Amortized

 

Unrealized

 

Unrealized

 

(Net Carrying

As of March 25, 2017

Cost

 

Gains

 

Losses

 

Amount)

Corporate debt securities

$

33,350 

 

$

 -

 

$

(20)

 

$

33,330 

Commercial paper

 

66,518 

 

 

 -

 

 

(35)

 

 

66,483 

Total securities

$

99,868 

 

$

 -

 

$

(55)

 

$

99,813 



The Company’s specifically identified gross unrealized losses of $55 thousand relates to 18 different securities with a total amortized cost of approximately $99.9 million at March 25, 2017. Four securities had been in a continuous unrealized loss position for more than 12 months as of March 25, 2017.  The gross unrealized loss on these securities was less than one tenth of one percent of the position value.  Because the Company does not intend to sell the investments at a loss and it is not more likely than not that the Company will be required to sell the investments before recovery of its amortized cost basis, the Company did not consider the investment in these securities to be other-than-temporarily impaired at March 25, 2017. 





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Estimated



 

 

Gross

 

Gross

 

Fair Value



Amortized

 

Unrealized

 

Unrealized

 

(Net Carrying

As of March 26, 2016

Cost

 

Gains

 

Losses

 

Amount)

Corporate debt securities

$

81,310 

 

$

 

$

(100)

 

$

81,213 



The Company’s specifically identified gross unrealized losses of  $100 thousand relates to 21 different securities with a total amortized cost of approximately $64.7 million at March 26, 2016.    Two securities had been in a continuous unrealized loss position for more than 12 months as of March 26, 2016, both of which matured in fiscal year 2017.  Because the Company did not intend to sell the investments at a loss and it was not more likely than not that the Company would be required to sell the investments before recovery of its amortized cost basis, the Company did not consider the investment to be other-than-temporarily impaired at March 26, 2016



The cost and estimated fair value of available-for-sale investments by contractual maturity were as follows:





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

March 25, 2017

 

March 26, 2016



 

Amortized

 

Estimated

 

Amortized

 

Estimated



 

Cost

 

Fair Value

 

Cost

 

Fair Value

Within 1 year

 

$

99,868 

 

$

99,813 

 

$

60,603 

 

$

60,582 

After 1 year

 

 

 -

 

 

 -

 

 

20,707 

 

 

20,631 

Total

 

$

99,868 

 

$

99,813 

 

$

81,310 

 

$

81,213 



Fair Value of Financial Instruments
Fair Value of Financial Instruments

4.      Fair Value of Financial Instruments



The Company has determined that the only assets and liabilities in the Company’s financial statements that are required to be measured at fair value on a recurring basis are the Company’s cash equivalents, investment portfolio, pension plan assets/liabilities and contingent consideration.  The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).





 

 

 



 

Level 1 — Quoted prices in active markets for identical assets or liabilities.



 

 

 



 

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.



 

 

 



 

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.



The Company’s cash equivalents and investment portfolio assets consist of corporate debt securities, money market funds, U.S. Treasury securities, and commercial paper and are reflected on our Consolidated Balance Sheet under the headings cash and cash equivalents, marketable securities, and long-term marketable securities.  The Company determines the fair value of its investment portfolio assets by obtaining non-binding market prices from its third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. 



In connection with one of the Company’s second quarter fiscal year 2016 acquisitions, the Company reports contingent consideration based upon achievement of certain milestones.  This liability is classified as Level 3 and is valued using a discounted cash flow model.  The assumptions used in preparing the discounted cash flow include discount rate estimates and cash flow amounts.  



The Company’s long-term revolving facility, described in Note 7, bears interest at a base rate plus applicable margin or LIBOR plus applicable margin.  As of March 25, 2017, the fair value of the Company’s long-term revolving facility approximates carrying value based on estimated margin.



As of March 25, 2017 and March 26, 2016, the Company classified all investment portfolio assets and pension plan assets (discussed in Note 9) as Level 1 or Level 2 assets and liabilities.  The only Level 3 liability is the contingent consideration described above and below.  The Company has no Level 3 assets.  There were no transfers between Level 1, Level 2, or Level 3 measurements for the years ending March 25, 2017 and March 26, 2016.



The following summarizes the fair value of our financial instruments, exclusive of pension plan assets detailed in Note 9, at March 25, 2017 (in thousands):



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Quoted Prices

 

 

 

 

 

 



in Active

 

Significant

 

 

 

 



Markets for

 

Other

 

Significant

 

 



Identical

 

Observable

 

Unobservable

 

 



Assets

 

Inputs

 

Inputs

 

 



Level 1

 

Level 2

 

Level 3

 

Total

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

313,982 

 

$

 -

 

$

 -

 

$

313,982 



 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

$

 -

 

$

33,330 

 

$

 -

 

$

33,330 

Commercial paper

 

 -

 

 

66,483 

 

 

 -

 

 

66,483 



$

 -

 

$

99,813 

 

$

 -

 

$

99,813 



 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Other accrued liabilities

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration - short-term

$

 -

 

$

 -

 

$

4,695 

 

$

4,695 



The following summarizes the fair value of our financial instruments at March 26, 2016 (in thousands):





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Quoted Prices

 

 

 

 

 

 



in Active

 

Significant

 

 

 

 



Markets for

 

Other

 

Significant

 

 



Identical

 

Observable

 

Unobservable

 

 



Assets

 

Inputs

 

Inputs

 

 



Level 1

 

Level 2

 

Level 3

 

Total

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

79,256 

 

$

 -

 

$

 -

 

$

79,256 



 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

$

 -

 

$

81,213 

 

$

 -

 

$

81,213 



 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Other accrued liabilities

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration - short-term

$

 -

 

$

 -

 

$

4,709 

 

$

4,709 

Other long-term liabilities

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration - long-term

$

 -

 

$

 -

 

$

4,359 

 

$

4,359 



Contingent consideration



The following summarizes the fair value of the contingent consideration at March 25, 2017:



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

Maximum Value if Milestones Achieved
(in thousands)

 

Estimated Discount Rate (%)

 

 

Fair Value
(in thousands)

Tranche A - 18 month earn out period

 

$

5,000 

 

7.0 

 

$

 -

Tranche B - 30 month earn out period

 

 

5,000 

 

7.7 

 

 

4,695 



 

$

10,000 

 

 

 

$

4,695 





 

 



Fiscal year ended



March 25,



2017



(in thousands)

Beginning balance

$

9,068 

Adjustment to estimates (research and development expense)

 

(3,579)

Payout of Tranche A contingent consideration

 

(1,213)

Fair value charge recognized in earnings (research and development expense)

 

419 

Ending balance

$

4,695 



The valuation of contingent consideration is based on a weighted-average discounted cash flows model.  The fair value is reviewed and estimated on a quarterly basis based on the probability of achieving defined milestones and current interest rates.  Significant changes in any of the unobservable inputs used in the fair value measurement of contingent consideration could result in a significantly lower or higher fair value.  A change in projected outcomes if milestones are achieved would be accompanied by a directionally similar change in fair value.  A change in discount rate would be accompanied by a directionally opposite change in fair value.  Changes to the fair value due to changes in assumptions would be reported in research and development expense in the Consolidated Statements of Income.  In the second quarter of fiscal year 2017, changes in milestone estimates of Tranche A occurred following a review of product shipment forecasts within the earn out period.  The revised estimates reduced the fair value of the liability prior to the pay out in the fourth quarter of fiscal year 2017. 

Accounts Receivable, Net
Accounts Receivable, Net



5.      Accounts Receivable, net 



The following are the components of accounts receivable, net (in thousands):







 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Gross accounts receivable

$

120,408 

 

$

89,007 

Allowance for doubtful accounts

 

(434)

 

 

(475)

Accounts receivable, net

$

119,974 

 

$

88,532 



The following table summarizes the changes in the allowance for doubtful accounts (in thousands):





 

 



 

 

Balance, March 29, 2014

$

(229)

Bad debt expense, net of recoveries

 

(127)

Balance, March 28, 2015

 

(356)

Bad debt expense, net of recoveries

 

(119)

Balance, March 26, 2016

 

(475)

Bad debt expense, net of recoveries

 

41 

Balance, March 25, 2017

$

(434)

Recoveries on bad debt were immaterial for the three years presented above.

Intangibles, Net and Goodwill
Intangibles, net and Goodwill

6.      Intangibles, net and Goodwill



The intangibles, net balance included on the Consolidated Balance Sheet was $135.2 million and $162.8 million at March 25, 2017 and March 26, 2016, respectively. 



The following information details the gross carrying amount and accumulated amortization of our intangible assets (in thousands):





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

March 25, 2017

 

 

March 26, 2016

Intangible Category / Weighted-Average Amortization period (in years)

 

Gross Amount

 

 

Accumulated Amortization

 

 

Gross Amount

 

 

Accumulated Amortization

Core technology (a)

$

1,390 

 

$

(1,390)

 

$

1,390 

 

$

(1,390)

License agreement (a)

 

440 

 

 

(440)

 

 

440 

 

 

(440)

Existing technology (6.1)

 

117,975 

 

 

(53,960)

 

 

117,975 

 

 

(32,873)

In-process research & development ("IPR&D") (7.3)

 

72,750 

 

 

(24,245)

 

 

72,750 

 

 

(14,082)

Trademarks and tradename (10.0)

 

3,037 

 

 

(2,208)

 

 

3,037 

 

 

(2,076)

Customer relationships (10.0)

 

15,381 

 

 

(4,191)

 

 

15,381 

 

 

(2,655)

Backlog (a)

 

220 

 

 

(220)

 

 

220 

 

 

(147)

Non-compete agreements (a)

 

470 

 

 

(470)

 

 

470 

 

 

(209)

Technology licenses (3.1)

 

24,540 

 

 

(13,891)

 

 

16,661 

 

 

(11,620)

Total

$

236,203 

 

$

(101,015)

 

$

228,324 

 

$

(65,492)



(a)

Intangible assets are fully amortized.



Amortization expense for intangibles in fiscal years 2017, 2016, and 2015 was $37.4 million, $35.7 million,  and $18.2 million, respectively.  The following table details the estimated aggregate amortization expense for all intangibles owned as of March 25, 2017, for each of the five succeeding fiscal years and in the aggregate thereafter (in thousands):





 

 



 

 

For the year ended March 31, 2018

$

37,563 

For the year ended March 30, 2019

$

35,660 

For the year ended March 28, 2020

$

26,499 

For the year ended March 27, 2021

$

15,895 

For the year ended March 26, 2022

$

12,145 

Thereafter

$

8,523 



The goodwill balance included on the Consolidated Balance Sheet is $286.8 million and $287.5 million at March 25, 2017 and March 26, 2016, respectively. 

Revolving Line of Credit
Revolving Line of Credit

7.     Revolving Line of Credit



On August 29, 2014, Cirrus Logic entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as Administrative Agent, and the Lenders party thereto. The Credit Agreement provided for a $250 million senior secured revolving credit facility (the “Credit Facility”).  Borrowings under the Credit Facility were used for general corporate purposes.  



On July 12, 2016, Cirrus Logic entered into an amended and restated credit agreement (the “Amended Credit Agreement”) with Wells Fargo Bank, National Association, as Administrative Agent, and the Lenders party thereto, for the purpose of amending the Credit Agreement and providing ongoing working capital.  The Amended Credit Agreement provides for a $300 million senior secured revolving credit facility (the “Amended Facility”).  The Amended Facility matures on July 12, 2021.  Cirrus Logic must repay the outstanding principal amount of all borrowings, together with all accrued but unpaid interest thereon, on the maturity date.  The Amended Facility is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries (the “Subsidiary Guarantors”) and is secured by substantially all of the assets of Cirrus Logic and any Subsidiary Guarantors, except for certain excluded assets.



Borrowings under the Amended Facility may, at Cirrus Logic’s election, bear interest at either (a) a base rate plus the applicable margin (“Base Rate Loans”) or (b) a LIBOR Rate plus the applicable margin (“LIBOR Rate Loans”).  The applicable margin ranges from 0% to .50% per annum for Base Rate Loans and 1.25% to 2.00% per annum for LIBOR Rate Loans based on the Leverage Ratio (as defined below).  A commitment fee accrues at a rate per annum ranging from 0.20% to 0.30% (based on the Leverage Ratio) on the average daily unused portion of the commitment of the lenders.  The Amended Credit Agreement contains certain financial covenants providing that (a) the ratio of consolidated funded indebtedness to consolidated EBITDA for the prior four consecutive quarters must not be greater than 3.00 to 1.00 (the “Leverage Ratio”) and (b) the ratio of consolidated EBITDA for the prior four consecutive fiscal quarters to consolidated fixed charges (including amounts paid in cash for consolidated interest expenses, capital expenditures, scheduled principal payments of indebtedness, and income taxes) for the prior four consecutive fiscal quarters must not be less than 1.25 to 1.00 as of the end of each fiscal quarter.  The Amended Credit Agreement also contains negative covenants limiting the Company’s or any Subsidiary’s ability to, among other things, incur debt, grant liens, make investments, effect certain fundamental changes, make certain asset dispositions, and make certain restricted payments.     



At March 25, 2017, the Company was in compliance with all covenants under the Amended Credit Agreement.  The Company had borrowed $60.0 million under the Amended Facility as of March 25, 2017, which is included in long-term liabilities on the Consolidated Balance Sheet under the caption “Debt.”     



Restructuring Costs
Restructuring Costs

8.      Restructuring and Other, net



The fiscal year 2015 restructuring costs incurred relate to the Wolfson acquisition and consisted primarily of bank and legal fees, as well as certain expenses for stock compensation.  The related charges are shown as a separate line item captioned “Restructuring and other, net” in the Consolidated Statements of Income. 



As of March 25, 2017 and March 26, 2016, we have no remaining restructuring accrual on the Consolidated Balance Sheet.



Postretirement Benefit Plans
Employee Benefit Plans

9.       Postretirement Benefit Plans



Pension Plan



As a result of the Acquisition in fiscal year 2015, the Company now fully funds a defined benefit pension scheme (“the Scheme”), formerly maintained by Wolfson, for some of the employees in the United Kingdom.  The Scheme was closed to new participants as of July 2, 2002.  As of April 30, 2011, the participants in the Scheme no longer accrue benefits and therefore the Company will not be required to pay contributions in respect of future accrual.

The Scheme is a trustee-administered fund that is legally separate from Wolfson, which holds the pension plan assets to meet long-term pension liabilities.  The pension fund trustees comprise one employee and one employer representative and an independent chairman.  The trustees are required by law to act in the best interests of the Scheme’s beneficiaries and the trustees are responsible, in consultation with Wolfson and the Company, for setting certain policies (including the investment policies and strategies) of the fund.



As of March 26, 2016, the Company was obligated to contribute approximately $0.5 million to the Scheme, which was recorded on the fiscal year 2016 Consolidated Balance Sheet in “Accrued salaries and benefits”.  On April 25, 2016, the Company paid the $0.5 million, which was previously accrued.  No further obligations are accrued as of March 25, 2017.  



The Company initiated an Enhanced Transfer Value (ETV) offer to 49 Scheme participants in fiscal year 2017.  The ETV offer expired on December 23, 2016, and nine participants accepted.  As a result, the Company paid the required ETV contribution of $0.5 million and recorded the associated pension expense of $0.4 million.  The Company expects to completely close the Scheme over the next ten years. 

   

The following tables set forth the benefit obligation, the fair value of plan assets, and the funded status of the Scheme (in thousands):





 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Change in benefit obligation:

 

 

 

 

 

Beginning balance

$

23,968 

 

$

27,091 

Expenses

 

 -

 

 

15 

Interest cost

 

759 

 

 

821 

Plan settlements

 

(4,517)

 

 

 -

Benefits paid and expenses

 

(264)

 

 

(1,095)

Change in foreign currency exchange rate

 

(2,763)

 

 

(1,221)

Actuarial (gain) / loss

 

3,940 

 

 

(1,643)

Total benefit obligation ending balance

 

21,123 

 

 

23,968 



 

 

 

 

 

Change in plan assets:

 

 

 

 

 

Beginning balance

 

25,688 

 

 

26,735 

Actual return on plan assets

 

3,933 

 

 

(155)

Employer contributions

 

990 

 

 

1,409 

Plan settlements

 

(5,243)

 

 

 -

Change in foreign currency exchange rate

 

(2,961)

 

 

(1,206)

Benefits paid and expenses

 

(264)

 

 

(1,095)

Fair value of plan assets ending balance

 

22,143 

 

 

25,688 



 

 

 

 

 

Funded status of Scheme at end of year

$

1,020 

 

$

1,720 

The assets and obligations of the Scheme are denominated in British Pound Sterling.  Based on an actuarial study performed as of March 25, 2017, the Scheme is overfunded and a long-term asset is reflected in the Company’s Consolidated Balance Sheet under the caption “Other assets”.  The Company’s plan assets and obligations are measured as of the fiscal year-end.    The weighted-average discount rate assumption used to determine benefit obligations as of March 25, 2017 March 26, 2016 and March 28, 2015 was 2.7%,  3.6%,  and 3.2%,  respectively.    



The components of the Company’s net periodic pension expense (income) are as follows (in thousands):

   



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

Expenses

$

 -

 

$

15 

 

$

16 

Interest cost

 

759 

 

 

821 

 

 

544 

Expected return on plan assets

 

(1,126)

 

 

(1,212)

 

 

(792)

Settlement (gain) loss

 

1,063 

 

 

 -

 

 

 -

Amortization of actuarial (gain) loss 

 

(89)

 

 

49 

 

 

 -



$

607 

 

$

(327)

 

$

(232)

  

The following weighted-average assumptions were used to determine net periodic benefit costs for the year ended March 25, 2017, March 26, 2016, and March 28, 2015:



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



2017

 

2016

 

2015

 

Discount rate

 

3.60 

%

 

3.20 

%

 

4.00 

%

Expected long-term return on plan assets

 

4.93 

%

 

4.65 

%

 

5.36 

%



We report and measure the plan assets of our defined benefit pension at fair value.  The Company’s pension plan assets consist of cash, equity securities, corporate debt securities, and diversified growth funds.  The fair value of the pension plan assets is determined through an external actuarial valuation, following a similar process of obtaining inputs as described above. 



The table below sets forth the fair value of our plan assets as of March 25, 2017, using the same three-level hierarchy of fair-value inputs described in Note 4 (in thousands):



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Quoted Prices

 

 

 

 

 

 

 

 

 



in Active

 

Significant

 

 

 

 

 

 



Markets for

 

Other

 

Significant

 

 

 



Identical

 

Observable

 

Unobservable

 

 

 



Assets

 

Inputs

 

Inputs

 

 

 



Level 1

 

Level 2

 

Level 3

 

Total

Plan Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash

$

160 

 

$

 -

 

$

 -

 

$

160 

Pension funds

 

 -

 

 

21,983 

 

 

 -

 

 

21,983 



$

160 

 

$

21,983 

 

$

 -

 

$

22,143 

The table below sets forth the fair value of our plan assets as of March 26, 2016, (in thousands):





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Quoted Prices

 

 

 

 

 

 

 

 

 



in Active

 

Significant

 

 

 

 

 

 



Markets for

 

Other

 

Significant

 

 

 



Identical

 

Observable

 

Unobservable

 

 

 



Assets

 

Inputs

 

Inputs

 

 

 



Level 1

 

Level 2

 

Level 3

 

Total

Plan Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash

$

42 

 

$

 -

 

$

 -

 

$

42 

Pension funds

 

 -

 

 

25,646 

 

 

 -

 

 

25,646 



$

42 

 

$

25,646 

 

$

 -

 

$

25,688 

Amounts recognized in accumulated other comprehensive income (loss) for the period that have not yet been recognized as components of net periodic benefit cost consist of (in thousands): 



 

 



 

 



 

Fiscal Year



 

2017

Net actuarial loss

$

(79)



 

 

Accumulated other comprehensive income, before tax

$

(79)

The Company will amortize the actuarial gain over a period of twenty-five years based on actuarial assumptions, including life expectancy.  The following table provides the estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal year 2018 (in thousands):



 

 



 

 



 

Fiscal Year



 

2018

Transition (asset) obligation

$

 -

Prior service cost

 

 -

Actuarial loss (gain)

 

(37)



The Company contributed $0.5 million to the pension plan in fiscal year 2017 as discussed above.



The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for the following fiscal years (in thousands):





 

 



 

Benefit



 

Payments

2018

$

266 

2019

 

411 

2020

 

481 

2021

 

472 

2022

 

415 

Thereafter

 

2,765 

The expected long-term return on plan assets is based on historical actual return experience and estimates of future long-term performance with consideration to the expected investment mix of the plan assets.  It is the policy of the Trustees and the Company to review the investment strategy periodically.  The Trustees’ investment objectives and the processes undertaken to measure and manage the risks inherent in the Scheme investment strategy are illustrated by the current asset allocation.  The current mix of the assets is as follows:



 

 

 

 

 

 



 

 

 

 

 

 



Actual Allocation



2017

 

2016

 

Equity securities

 

33 

%

 

32 

%

Corporate bonds

 

48 

 

 

47 

 

Diversified growth

 

19 

 

 

21 

 

Cash

 

 -

 

 

 -

 

Total

 

100 

%

 

100 

%

See the related fair value of the assets above. 

The Scheme exposes the Company to actuarial risks such as investment (market) risk, interest rate risk, mortality risk, longevity risk and currency risk.  A decrease in corporate bond yields, a rise in inflation or an increase in life expectancy would result in an increase to the Scheme liabilities and may give rise to increased benefit expenses in future periods.  Caps on inflationary increases are currently in place to protect the Scheme against extreme inflation, however.

The indicative impact on net periodic benefit cost based on defined sensitivities is as follows:



 

 



 

 

Change

 

Approximate impact on liabilities

Decrease discount rate by 0.1%, per year

 

2% increase

Increase inflation linked assumptions by 0.1%, per year

 

2% increase (of inflation-linked liabilities)

Increase life expectancy by 1 year

 

2% increase



401(k) Plans



We have 401(k) Profit Sharing Plans (the “401(k) Plans”) covering all of our qualifying employees.  Under the 401(k) Plans, employees may elect to contribute any percentage of their annual compensation up to the annual IRS limitations.  The Company matches 50 percent of the first 8 percent of the employees’ annual contribution.  We made matching employee contributions of $5.5 million, $4.3 million, and $2.5 million during fiscal years 2017, 2016, and 2015, respectively

Equity Compensation
Equity Compensation

10.      Equity Compensation



The Company is currently granting equity awards from the 2006 Stock Incentive Plan (the “Plan”), which was approved by stockholders in July 2006.  The Plan provides for granting of stock options, restricted stock awards, performance awards, phantom stock awards, and bonus stock awards, or any combination of the foregoing.  To date, the Company has granted stock options, restricted stock awards, phantom stock awards (also called restricted stock units), and performance awards (also called market stock units) under the Plan.  Each stock option granted reduces the total shares available for grant under the Plan by one share.  Each full value award granted (including restricted stock awards, restricted stock units and market stock units) reduces the total shares available for grant under the Plan by 1.5 shares.  Stock options generally vest between zero and four years, and are exercisable for a period of ten years from the date of grant.  Restricted stock units are generally subject to vesting from one to three years, depending upon the terms of the grant.  Market stock units are subject to a vesting schedule of three years.



The following table summarizes the activity in total shares available for grant (in thousands):







 

 



 

 



 

Shares



 

Available for



 

Grant

Balance, March 29, 2014

 

3,547 

Shares added

 

3,300 

Granted

 

(3,181)

Forfeited

 

230 

Balance, March 28, 2015

 

3,896 

Shares added

 

4,900 

Granted

 

(2,676)

Forfeited

 

167 

Balance, March 26, 2016

 

6,287 

Shares added

 

 -

Granted

 

(1,719)

Forfeited

 

124 

Balance, March 25, 2017

 

4,692 



As of March 25, 2017, approximately 13.3 million shares of common stock were reserved for issuance under the Plan.



Stock Compensation Expense



The following table summarizes the effects of stock-based compensation on cost of goods sold, research and development, sales, general and administrative, pre-tax income, and net income after taxes for shares granted under the Plan (in thousands, except per share amounts): 



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Year



 

2017

 

 

2016

 

 

2015

Cost of sales

$

1,071 

 

$

1,145 

 

$

747 

Research and development

 

21,186 

 

 

17,173 

 

 

11,222 

Sales, general and administrative

 

17,336 

 

 

15,188 

 

 

25,580 

Effect on pre-tax income

 

39,593 

 

 

33,506 

 

 

37,549 

Income Tax Benefit

 

(12,482)

 

 

(10,306)

 

 

(11,467)

Total share-based compensation expense (net of taxes)

 

27,111 

 

 

23,200 

 

 

26,082 

Share-based compensation effects on basic earnings per share

$

0.43 

 

$

0.37 

 

$

0.42 

Share-based compensation effects on diluted earnings per share

 

0.41 

 

 

0.35 

 

 

0.40 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The total share based compensation expense included in the table above and which is attributable to restricted stock awards, restricted stock units and market stock units was $35.5 million,  $30.3 million, $34.0 million, for fiscal years 2017, 2016, and 2015, respectively.  Share based compensation expense recognized is presented within operating activities in the Consolidated Statement of Cash Flows.



As of March 25, 2017, there was $75.2 million of compensation costs related to non-vested stock options, restricted stock units, and market stock units granted under the Company’s equity incentive plans not yet recognized in the Company’s financial statements.  The unrecognized compensation cost is expected to be recognized over a weighted average period of 1.29 years for stock options, 1.45 years for restricted stock units, and 1.70 years for market stock units.



In addition to the income tax benefit of share-based compensation expense shown in the table above, the Company recognized excess tax benefits of $22.9 million in fiscal year 2017 as a result of the Company’s early adoption of ASU 2016-09, discussed in Note 2.  No excess tax benefits were recognized within income tax expense in fiscal years 2016 or 2015.





Stock Options 



We estimated the fair value of each stock option granted on the date of grant using the Black-Scholes option-pricing model using a dividend yield of zero and the following additional assumptions:



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 



 

March 25, 2017

 

 

March 26, 2016

 

 

March 28, 2015

 

Expected stock price volatility

 

47.66

%

 

40.13 

-

45.07

%

 

38.79 

-

42.12

%

Risk-free interest rate

 

1.13

%

 

0.94 

-

1.05

%

 

0.49 

-

0.91

%

Expected term (in years)

 

2.79

 

 

2.72 

-

2.97

 

 

2.15 

-

2.87

 



The Black-Scholes valuation calculation requires us to estimate key assumptions such as stock price volatility, expected term, risk-free interest rate and dividend yield.  The expected stock price volatility is based upon implied volatility from traded options on our stock in the marketplace.  The expected term of options granted is derived from an analysis of historical exercises and remaining contractual life of stock options, and represents the period of time that options granted are expected to be outstanding after becoming vested.  The risk-free interest rate reflects the yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected term assumption.  Finally, we have never paid cash dividends, do not currently intend to pay cash dividends, and thus have assumed a zero percent dividend yield.



Using the Black-Scholes option valuation model, the weighted average estimated fair values of employee stock options granted in fiscal years 2017, 2016, and 2015, were $22.84,  $12.58, and $7.26, respectively. 



During fiscal years 2017, 2016, and 2015, we received a net $16.4 million, $6.5 million, $5.2 million, respectively, from the exercise of 1.4 million,  0.8 million, and 0.7 million, respectively, stock options granted under the Company’s Stock Plan.



The total intrinsic value of stock options exercised during fiscal year 2017, 2016, and 2015,  was $52.2 million,  $19.7 million, and $12.8 million, respectively.  Intrinsic value represents the difference between the market value of the Company’s common stock at the time of exercise and the strike price of the stock option.



Additional information with respect to stock option activity is as follows (in thousands, except per share amounts): 





 

 

 

 

 



 

 

 

 

 



 

Outstanding Options



 

 

 

 

Weighted



 

 

 

 

Average



 

Number

 

 

Exercise Price

Balance, March 29, 2014

 

3,725 

 

$

12.42 

Options granted

 

310 

 

 

21.69 

Options exercised

 

(696)

 

 

7.47 

Options forfeited

 

(5)

 

 

19.94 

Options expired

 

(1)

 

 

4.65 

Balance, March 28, 2015

 

3,333 

 

$

14.31 

Options granted

 

387 

 

 

31.39 

Options exercised

 

(773)

 

 

8.46 

Options forfeited

 

 -

 

 

 -

Options expired

 

(22)

 

 

35.41 

Balance, March 26, 2016

 

2,925 

 

$

17.96 

Options granted

 

215 

 

 

54.65 

Options exercised

 

(1,382)

 

 

11.87 

Options forfeited

 

 -

 

 

 -

Options expired

 

 -

 

 

 -

Balance, March 25, 2017

 

1,758 

 

$

27.25 



Additional information with regards to outstanding options that are vesting, expected to vest, or exercisable as of March 25, 2017 is as follows (in thousands, except years and per share amounts): 





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

 

 

Weighted

 

Weighted Average

 

 

 



 

Number of

 

 

Average

 

Remaining Contractual

 

 

Aggregate



 

Options

 

 

Exercise price

 

Term (years)

 

 

Intrinsic Value

Vested and expected to vest

 

1,757 

 

$

27.24

 

6.40

 

$

57,674

Exercisable

 

1,128 

 

$

21.77

 

5.18

 

$

43,196



In accordance with U.S. GAAP, stock options outstanding that are expected to vest are presented net of estimated future option forfeitures, which are estimated as compensation costs are recognized.  Options with a fair value of $3.8 million, $3.4 million, and $4.4 million, became vested during fiscal years 2017, 2016, and 2015, respectively.



The following table summarizes information regarding outstanding and exercisable options as of March 25, 2017 (in thousands, except per share amounts): 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Options Outstanding

 

Options Exercisable



 

 

 

Weighted Average

 

 

 

 

 

 

 

 



 

 

 

Remaining

 

Weighted

 

 

 

Weighted



 

 

 

Contractual Life

 

Average Exercise

 

Number

 

Average

Range of Exercise Prices

 

Number

 

(years)

 

Price

 

Exercisable

 

Exercise Price

$2.90 - $15.41

 

371 

 

3.33 

 

$

11.01 

 

371 

 

$

11.01 

$16.21 - $20.37

 

328 

 

5.81 

 

 

18.63 

 

242 

 

 

18.02 

$20.40 - $24.14

 

265 

 

6.48 

 

 

23.29 

 

203 

 

 

23.30 

$31.25 - $31.25

 

331 

 

8.61 

 

 

31.25 

 

91 

 

 

31.25 

$32.29 - $38.99

 

248 

 

5.97 

 

 

38.00 

 

221 

 

 

38.60 

$54.65 - $54.65

 

215 

 

9.61 

 

 

54.65 

 

 -

 

 

 -



 

1,758 

 

6.40 

 

$

27.25 

 

1,128 

 

$

21.77 



As of March 25, 2017 and March 26, 2016, the number of options exercisable was 1.1 million and 2.2 million, respectively.



Restricted Stock Awards

 

The Company periodically grants restricted stock awards (“RSA’s”) to select employees.  The grant date for these awards is equal to the measurement date and the awards are valued as of the measurement date and amortized over the requisite vesting period, which is no more than four years. 



 

There were no RSA’s outstanding as of March 25, 2017.  RSA’s with a fair value of $86 thousand  became vested during fiscal year 2015.  No RSA’s became vested during fiscal year 2016 and 2017.



Restricted Stock Units

 

Commencing in fiscal year 2011, the Company began granting restricted stock units (“RSU’s”) to select employees.  These awards are valued as of the grant date and amortized over the requisite vesting period.  Generally, RSU’s vest 100 percent on the first to third anniversary of the grant date depending on the vesting specifications.  A summary of the activity for RSU’s in fiscal year 2017, 2016, and 2015 is presented below (in thousands, except year and per share amounts):



 

 

 

 



 

 

 

 



 

 

 

Weighted



 

 

 

Average



Shares

 

 

Fair Value

March 29, 2014

2,309 

 

$

25.26 

Granted

1,887 

 

 

22.04 

Vested

(1,224)

 

 

19.52 

Forfeited

(151)

 

 

26.17 

March 28, 2015

2,821 

 

 

25.57 

Granted

1,437 

 

 

31.51 

Vested

(992)

 

 

32.48 

Forfeited

(103)

 

 

24.75 

March 26, 2016

3,163 

 

 

26.14 

Granted

947 

 

 

52.40 

Vested

(1,032)

 

 

24.67 

Forfeited

(83)

 

 

28.40 

March 25, 2017

2,995 

 

$

34.91 

 

The aggregate intrinsic value of RSU’s outstanding as of March 25, 2017 was $179.9 million.  Additional information with regards to outstanding restricted stock units that are expected to vest as of March 25, 2017, is as follows (in thousands, except year and per share amounts): 

   



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

 

 

Weighted

 

Weighted Average



 

 

 

 

Average

 

Remaining Contractual



 

Shares

 

 

Fair Value

 

Term (years)

Expected to vest

 

2,870 

 

$

34.64 

 

1.43 



RSU’s outstanding that are expected to vest are presented net of estimated future forfeitures, which are estimated as compensation costs are recognized.  RSU’s with a fair value of $25.5 million and $32.2 million became vested during fiscal years 2017 and 2016, respectivelyThe majority of RSUs that vested in 2017 and 2016 were net settled such that the Company withheld a portion of the shares at fair value to satisfy tax withholding requirements.  In fiscal years 2017 and 2016, the vesting of RSU’s reduced the authorized and unissued share balance by approximately 1.0 million and 1.0 million, respectively.  Total shares withheld and subsequently retired out of the Plan were approximately 0.3 million and 0.2 million, and total payments for the employees’ tax obligations to taxing authorities were $14.1 million and $6.9 million for fiscal years 2017 and 2016, respectively.  A portion of RSUs that vested in fiscal year 2017 and 2016 were cash settled such that the Company received cash from employees in lieu of withholding shares to satisfy tax withholding requirements.  The total amount received from cash settled shares during fiscal year 2017 and 2016 was $0.1 million and $0.1 million, respectively.



Market Stock Units



In fiscal year 2015, the Company began granting market stock units (“MSU’s”) to select employees. MSU’s vest based upon the relative total shareholder return (“TSR”) of the Company as compared to that of the Index. The requisite service period for these MSU’s is also the vesting period, which is three years.  The fair value of each MSU granted was determined on the date of grant using the Monte Carlo simulation, which calculates the present value of the potential outcomes of future stock prices of the Company and the Index over the requisite service period.  The projection of the stock prices is based on the risk-free rate of return, the volatilities of the stock price of the Company and the Index, the correlation of the stock price of the Company with the Index, and the dividend yield.



The fair values estimated from the Monte Carlo simulation were calculated using a dividend yield of zero and the following additional assumptions:





 

 

 

 

 

 



 

Year Ended

 



 

March 25,

 

 

March 26,

 



 

2017

 

 

2016

 

Expected stock price volatility

 

47.66 

%

 

45.07 

%

Risk-free interest rate

 

0.98 

%

 

1.16 

%

Expected term (in years)

 

3.00 

 

 

3.00 

 



Using the Monte Carlo simulation, the weighted average estimated fair value of the MSU’s granted in fiscal year 2017 was $75.58.    A summary of the activity for MSU’s in fiscal year 2017, 2016 and 2015 is presented below (in thousands, except year and per share amounts):





 

 

 

 



 

 

 

Weighted



 

 

 

Average



Shares

 

 

Fair Value

March 29, 2014

 -

 

$

 -

Granted

35 

 

 

22.00 

Vested

 -

 

 

 -

Forfeited

 -

 

 

 -

March 28, 2015

35 

 

$

22.00 

Granted

90 

 

 

39.86 

Vested

 -

 

 

 -

Forfeited

 -

 

 

 -

March 26, 2016

125 

 

$

34.85 

Granted

55 

 

 

75.58 

Vested

 -

 

 

 -

Forfeited

 -

 

 

 -

March 25, 2017

180 

 

$

47.30 



The aggregate intrinsic value of MSU’s outstanding as of March 25, 2017 was $10.8 million.   Additional information with regard to outstanding MSU’s that are expected to vest as of March 25, 2017 is as follows (in thousands, except year and per share amounts):





 

 

 

 

 

 

 



 

 

 

 

Weighted

 

Weighted Average



 

 

 

 

Average

 

Remaining Contractual



 

Shares

 

 

Fair Value

 

Term (years)

Expected to vest

 

171 

 

$

46.89 

 

1.69 





No MSU’s became vested in 2017, 2016 and 2015.

Commitments and Contingencies
Commitments and Contingencies

11.      Commitments and Contingencies



Facilities and Equipment Under Operating and Capital Lease Agreements



We currently own our corporate headquarters and select surrounding properties, and a UK office.  We lease certain of our other facilities and certain equipment under operating lease agreements, some of which have renewal options.  Certain of these arrangements provide for lease payment increases based upon future fair market rates.  As of March 25, 2017, our principal facilities are located in Austin, Texas and Edinburgh, Scotland, United Kingdom. 

Total rent expense under operating leases was approximately $8.2 million, $5.2 million, and $4.0 million, for fiscal years 2017, 2016, and 2015, respectively.  Sublease rental income was $0.4 million, $0.3 million, and $0.1 million, for fiscal years 2017, 2016, and 2015, respectively. 



As of March 26, 2016, there was equipment held under a capital lease with a cost basis of $1.0 million and accumulated depreciation related to this equipment of $0.3 million, which was paid off in fiscal year 2017, leaving no related future capital lease commitments.

 

The aggregate minimum future rental commitments under all operating leases, net of sublease income for the following fiscal years are (in thousands): 





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Facilities

 

 

Subleases

 

 

Net Facilities Commitments

 

 

Equipment and Other Commitments

 

 

Total Commitments

2018

$

7,074 

 

$

386 

 

$

6,688 

 

$

67 

 

$

6,755 

2019

 

10,354 

 

 

391 

 

 

9,963 

 

 

115 

 

 

10,078 

2020

 

9,811 

 

 

266 

 

 

9,545 

 

 

110 

 

 

9,655 

2021

 

9,580 

 

 

245 

 

 

9,335 

 

 

110 

 

 

9,445 

2022

 

9,313 

 

 

251 

 

 

9,062 

 

 

110 

 

 

9,172 

Thereafter

 

39,071 

 

 

859 

 

 

38,212 

 

 

432 

 

 

38,644 

Total minimum lease payment

$

85,203 

 

$

2,398 

 

$

82,805 

 

$

944 

 

$

83,749 



Wafer, Assembly, Test and Other Purchase Commitments 



We rely primarily on third-party foundries for our wafer manufacturing needs.  Generally, our foundry agreements do not have volume purchase commitments and primarily provide for purchase commitments based on purchase orders, with the exception of a few "take or pay" clauses included in vendor contracts that are immaterial at March 25, 2017.  Cancellation fees or other charges may apply and are generally dependent upon whether wafers have been started or the stage of the manufacturing process at which the notice of cancellation is given.  As of March 25, 2017, we had foundry commitments of $182.3 million. 



In addition to our wafer supply arrangements, we contract with third-party assembly vendors to package the wafer die into finished products.  Assembly vendors provide fixed-cost-per-unit pricing, as is common in the semiconductor industry.  We had non-cancelable assembly purchase orders with numerous vendors totaling $3.6 million at March 25, 2017.



Test vendors provide fixed-cost-per-unit pricing, as is common in the semiconductor industry.  Our total non-cancelable commitment for outside test services as of March 25, 2017 was $14.5 million.



Other purchase commitments primarily relate to multi-year tool commitments, and were $21.6 million at March 25, 2017.

Legal Matters
Legal Matters

12.      Legal Matters



From time to time, we are involved in legal proceedings concerning matters arising in connection with the conduct of our business activities.  We regularly evaluate the status of legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred and to determine if accruals are appropriate.  We further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made.     

       

Stockholder's Equity
Stockholder's Equity

13.      Stockholders’ Equity



Share Repurchase Program



On October 28, 2015, the Company announced that the Board of Directors authorized a share repurchase program of up to $200 million of the Company’s common stock.  As of March 25, 2017, the Company had repurchased 0.8 million shares under this plan at a cost of approximately $24.2 million, or an average cost of $31.93 per share.  Of this total, 0.5 million shares were purchased in fiscal year 2017 at a cost of $15.4 million, or an average cost of $32.13 per share.  Approximately $175.8 million remains available for repurchase under this plan.  All of these shares were repurchased in the open market and were funded from existing cash.  All shares of our common stock that were repurchased were retired as of March 25, 2017.  



Preferred Stock



We have 5.0 million shares of Preferred Stock authorized.  As of March 25, 2017, we have not issued any of the authorized shares. 

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Loss Text Block

14.      Accumulated Other Comprehensive Income (Loss) 



Our accumulated other comprehensive income (loss) is comprised of foreign currency translation adjustments, unrealized gains and losses on investments classified as available-for-sale, and actuarial gains and losses on our pension plan assets.   



The following table summarizes the changes in the components of accumulated other comprehensive income (loss), net of tax (in thousands):





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

 

 

Unrealized Gains

 

 

Actuarial Gains

 

 



 

Foreign

 

 

(Losses) on

 

 

(Losses) on

 

 



 

Currency

 

 

Securities

 

 

Pension Plan

 

Total

Balance, March 28, 2015

$

(770)

 

$

(47)

 

$

(1,293)

$

(2,110)

Current period foreign exchange translation

 

294 

 

 

 -

 

 

 -

 

294 

Current period marketable securities activity

 

 -

 

 

(24)

 

 

 -

 

(24)

Current period actuarial gain/loss activity

 

 -

 

 

 -

 

 

2,660 

 

2,660 

Current period amortization of actuarial loss

 

 -

 

 

 -

 

 

49 

 

49 

Tax effect

 

 -

 

 

 

 

(546)

 

(537)

Balance, March 26, 2016

 

(476)

 

 

(62)

 

 

870 

 

332 

Current period foreign exchange translation

 

(826)

 

 

 -

 

 

 -

 

(826)

Current period marketable securities activity

 

 -

 

 

47 

 

 

 -

 

47 

Current period actuarial gain/loss activity

 

 -

 

 

 -

 

 

(79)

 

(79)

Current period amortization of actuarial loss

 

 -

 

 

 -

 

 

(89)

 

(89)

Tax effect

 

 -

 

 

(16)

 

 

58 

 

42 

Balance, March 25, 2017

$

(1,302)

 

$

(31)

 

$

760 

$

(573)



Income Taxes
Income Taxes



15.      Income Taxes



Income before income taxes consisted of (in thousands):

 



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

U.S.

$

137,654 

 

$

108,133 

 

$

133,295 

Non-U.S.

 

177,393 

 

 

67,856 

 

 

(41,746)



$

315,047 

 

$

175,989 

 

$

91,549 



The provision (benefit) for income taxes consists of (in thousands):











 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

Current:

 

 

 

 

 

 

 

 

U.S.

$

28,940 

 

$

28,313 

 

$

42,165 

Non-U.S.

 

7,234 

 

 

703 

 

 

445 

Total current tax provision

$

36,174 

 

$

29,016 

 

$

42,610 



 

 

 

 

 

 

 

 

Deferred:

 

 

 

 

 

 

 

 

U.S.

 

2,576 

 

 

18,242 

 

 

2,136 

Non-U.S.

 

15,088 

 

 

5,101 

 

 

(8,375)

Total deferred tax provision (benefit)

 

17,664 

 

 

23,343 

 

 

(6,239)

Total tax provision

$

53,838 

 

$

52,359 

 

$

36,371 



The effective income tax rates differ from the rates computed by applying the statutory federal rate to pretax income as follows (in percentages):



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

U.S. federal statutory rate

 

35.0 

 

 

35.0 

 

 

35.0 

Foreign income taxed at different rates

 

(8.6)

 

 

(0.6)

 

 

7.3 

Research and development tax credits

 

(1.8)

 

 

(5.6)

 

 

(3.6)

Stock based compensation

 

(7.3)

 

 

 -

 

 

 -

Nondeductible expenses

 

 -

 

 

0.1 

 

 

2.3 

Other

 

(0.2)

 

 

0.9 

 

 

(1.3)

Effective tax rate

 

17.1 

 

 

29.8 

 

 

39.7 



As disclosed in Note 2 – Summary of Significant Accounting Policies, the Company adopted ASU 2016-09 in the third quarter of fiscal year 2017.  The effect of the adoption reduced the provision for income taxes by $22.9 million for the year ended March 25, 2017.



Significant components of our deferred tax assets and liabilities as of March 25, 2017 and March 26, 2016 are (in thousands):





 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Deferred tax assets:

 

 

 

 

 

Accrued expenses and allowances

$

9,002 

 

$

3,761 

Net operating loss carryforwards

 

6,294 

 

 

24,592 

Research and development tax credit carryforwards

 

13,977 

 

 

9,649 

Stock based compensation

 

17,356 

 

 

16,071 

Other

 

9,141 

 

 

9,976 

Total deferred tax assets

$

55,770 

 

$

64,049 

Valuation allowance for deferred tax assets

 

(12,570)

 

 

(10,773)

Net deferred tax assets

$

43,200 

 

$

53,276 



 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

Depreciation and amortization

$

13,837 

 

$

13,607 

Acquisition intangibles

 

16,301 

 

 

21,844 

Total deferred tax liabilities

$

30,138 

 

$

35,451 

Total net deferred tax assets

$

13,062 

 

$

17,825 



Deferred tax assets and liabilities are recorded for the estimated tax impact of temporary differences between the tax basis and book basis of assets and liabilities.  A valuation allowance is established against a deferred tax asset when it is more likely than not that the deferred tax asset will not be realized.  The valuation allowance increased by $1.8 million in fiscal year 2017 with no material impact to income tax expense.  The Company continued to record a valuation allowance on various state net operating losses and tax credits due to the likelihood that they will expire or go unutilized because the Company does not expect to recognize sufficient income in the jurisdictions in which the tax attributes were created.  Management believes that the Company’s results from future operations will generate sufficient taxable income in the appropriate jurisdictions and of the appropriate character such that it is more likely than not that the remaining deferred tax assets will be realized.



At March 25, 2017, the Company had gross federal net operating loss carryforwards of $12.9 million, all of which related to acquired companies and are, therefore, subject to certain limitations under Section 382 of the Internal Revenue Code.  The federal net operating loss carryforwards expire in fiscal years 2019 through 2034The Company had $8.5 million of alternative minimum tax credit carryforwards that may be carried forward indefinitely.  The Company also had $4.0 million of federal research and development credit carryforwards which will expire in 2037.



At March 25, 2017, the Company had gross state net operating loss carryforwards of $44.7 million.  The state net operating loss carryforwards expire in fiscal years 2018 through 2033.  In addition, the Company had $15.4 million of state research and development tax credit carryforwards.  Certain of these state tax credits will expire in fiscal years 2022 through 2032.  The remaining state tax credit carryforwards do not expire.



At March 25, 2017, the Company does not have any foreign operating loss carryforward.



At March 25, 2017, the undistributed earnings of our foreign subsidiaries of approximately $201.3 million are intended to be indefinitely reinvested outside the U.S.  Accordingly, no provision for U.S. federal income and foreign withholding taxes associated with a distribution of these earnings has been made.  The amount of unrecognized deferred tax liability related to these undistributed earnings is estimated to be $65.5 million.    



The following table summarizes the changes in the unrecognized tax benefits (in thousands):





 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Beginning balance

$

18,796 

 

$

 -

Additions based on tax positions related to the current year

 

12,127 

 

 

12,592 

Additions based on tax positions related to prior years

 

 -

 

 

6,204 

Reductions based on tax positions related to the prior years

 

(65)

 

 

 -

Ending balance

$

30,858 

 

$

18,796 



The Company records unrecognized tax benefits for the estimated risk associated with tax positions taken on tax returns.  At March 25, 2017, the Company had gross unrecognized tax benefits of $30.9 million, all of which would impact the effective tax rate if recognized.  The Company believes it is reasonably possible that the gross unrecognized tax benefits could decrease by approximately $2.3 million in the next 12 months due to the lapse of the statute of limitations applicable to a tax deduction claimed on a prior year tax return.  During fiscal year 2017, the Company had gross increases of $12.1 million related to current year unrecognized tax benefits, as well as a  $0.1 million decrease related to tax positions taken in prior years.  The Company’s unrecognized tax benefits are classified as “Other long-term liabilities” in the Consolidated Balance Sheet. 



The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes.  During fiscal year 2017 we recognized interest expense, net of tax, of approximately $0.2 million.  No interest or penalties were recognized during fiscal year 2016.   



The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions.   Fiscal years 2014 through 2017 remain open to examination by the major taxing jurisdictions to which the Company is subject, although carry forward attributes that were generated in tax years prior to fiscal year 2014 may be adjusted upon examination by the tax authorities if they have been, or will be, used in a future period.  The Company is not currently under an income tax audit in any major taxing jurisdiction.   

Segment Information
Segment Information

16.      Segment Information



We determine our operating segments in accordance with Financial Accounting Standards Board (“FASB”) guidelines.  Our Chief Executive Officer (“CEO”) has been identified as the chief operating decision maker under these guidelines. 



The Company operates and tracks its results in one reportable segment, but reports revenue performance in two product lines, which currently are portable audio and non-portable audio and other.  Our CEO receives and uses enterprise-wide financial information to assess financial performance and allocate resources, rather than detailed information at a product line level.  Additionally, our product lines have similar characteristics and customers.  They share operations support functions such as sales, public relations, supply chain management, various research and development and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology.  Therefore, there is no complete, discrete financial information maintained for these product lines.  Revenue from our product lines are as follows (in thousands): 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

Portable Audio Products

$

1,373,848 

 

$

989,101 

 

$

740,301 

Non-Portable Audio and Other Products

 

165,092 

 

 

180,150 

 

 

176,267 



$

1,538,940 

 

$

1,169,251 

 

$

916,568 



Geographic Area



The following illustrates sales by geographic locations based on the sales office location (in thousands):





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

United States

$

36,024 

 

$

73,889 

 

$

31,977 

European Union (excluding United Kingdom)

 

9,809 

 

 

12,745 

 

 

13,629 

United Kingdom

 

5,741 

 

 

5,687 

 

 

2,805 

China

 

1,249,325 

 

 

823,843 

 

 

728,413 

Hong Kong

 

181,283 

 

 

10,647 

 

 

15,087 

Japan

 

11,819 

 

 

27,898 

 

 

14,353 

South Korea

 

2,403 

 

 

193,388 

 

 

69,327 

Taiwan

 

14,426 

 

 

9,249 

 

 

15,272 

Other Asia

 

16,585 

 

 

8,657 

 

 

10,991 

Other non-U.S. countries

 

11,525 

 

 

3,248 

 

 

14,714 

Total consolidated sales

$

1,538,940 

 

$

1,169,251 

 

$

916,568 



The following illustrates property, plant and equipment, net, by geographic locations, based on physical location (in thousands):





 

 

 

 

 



 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,



2017

 

2016

United States

$

120,212 

 

$

125,674 

European Union (excluding United Kingdom)

 

793 

 

 

253 

United Kingdom

 

44,981 

 

 

34,632 

China

 

565 

 

 

483 

Hong Kong

 

 

 

Japan

 

243 

 

 

260 

South Korea

 

202 

 

 

110 

Taiwan

 

231 

 

 

180 

Other Asia

 

50 

 

 

29 

Other non-U.S. countries

 

857 

 

 

1,034 

Total consolidated property, plant and equipment, net

$

168,139 

 

$

162,656 



Quarterly Results (Unaudited)
Quarterly Results (Unaudited)

17.      Quarterly Results (Unaudited)



The following quarterly results have been derived from our audited annual consolidated financial statements.  In the opinion of management, this unaudited quarterly information has been prepared on the same basis as the annual consolidated financial statements and includes all adjustments, including normal recurring adjustments, necessary for a fair presentation of this quarterly information.  This information should be read along with the financial statements and related notes.  The operating results for any quarter are not necessarily indicative of results to be expected for any future period. 



As a result of the early adoption of ASU 2016-09, discussed in more detail in Note 2, the net income and EPS for the first two quarters of fiscal year 2017 have been recast to conform to the new presentation. 



The unaudited quarterly statement of operations data for each quarter of fiscal years 2017 and 2016 were as follows (in thousands, except per share data):







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Fiscal Year 2017



1st

 

2nd

 

3rd

 

4th



Quarter

 

Quarter

 

Quarter

 

Quarter



 

 

 

 

 

 

 

 

 

 

 

Net sales

$

259,428 

 

$

428,619 

 

$

523,029 

 

$

327,864 

Gross profit

 

126,685 

 

 

211,699 

 

 

255,152 

 

 

164,279 

Net income

 

18,071 

 

 

86,039 

 

 

122,041 

 

 

35,058 

Basic income per share

$

0.29 

 

$

1.37 

 

$

1.91 

 

$

0.55 

Diluted income per share

 

0.27 

 

 

1.30 

 

 

1.83 

 

 

0.52 







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Fiscal Year 2016



1st

 

2nd

 

3rd

 

4th



Quarter

 

Quarter

 

Quarter

 

Quarter



 

 

 

 

 

 

 

 

 

 

 

Net sales

$

282,633 

 

$

306,756 

 

$

347,863 

 

$

231,999 

Gross profit

 

132,454 

 

 

142,221 

 

 

164,911 

 

 

115,254 

Net income

 

33,354 

 

 

34,880 

 

 

41,384 

 

 

14,012 

Basic income per share

$

0.53 

 

$

0.55 

 

$

0.65 

 

$

0.22 

Diluted income per share

 

0.50 

 

 

0.53 

 

 

0.63 

 

 

0.21 



Subsequent Event
Subsequent Events [Text Block]

18. Subsequent Event



On April 14, 2017, the Company purchased a small, privately-held technology group that augments our product offerings in the voice and speech domains.  The immaterial purchase was funded with existing cash.

Description of Business (Policy)

Basis of Presentation



We prepare financial statements on a 52- or 53-week year that ends on the last Saturday in March.  Fiscal years 2017, 2016, and 2015 were 52-week years.  The next 53-week year will be fiscal year 2018.

Principles of Consolidation



The accompanying consolidated financial statements have been prepared in accordance with U. S. generally accepted accounting principles (U.S. GAAP) and include the accounts of the Company and its wholly-owned subsidiaries.  All significant intercompany balances and transactions have been eliminated.

Reclassifications    



Certain reclassifications have been made to prior year balances in order to conform to the current year’s presentation of financial information.

Use of Estimates



The preparation of financial statements in accordance with U.S. GAAP requires the use of management estimates.  These estimates are subjective in nature and involve judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at fiscal year-end and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from these estimates

Summary of Significant Accounting Policies (Policy)

Cash and Cash Equivalents



Cash and cash equivalents consist primarily of money market funds, commercial paper, and U.S. Government Treasury and Agency instruments with original maturities of three months or less at the date of purchase.

Inventories 



We use the lower of cost or net realizable value to value our inventories, following the adoption of ASU 2015-11, with cost being determined on a first-in, first-out basis.  One of the factors we consistently evaluate in the application of this method is the extent to which products are accepted into the marketplace.  By policy, we evaluate market acceptance based on known business factors and conditions by comparing forecasted customer unit demand for our products over a specific future period, or demand horizon, to quantities on hand at the end of each accounting period.



On a quarterly and annual basis, we analyze inventories on a part-by-part basis.  Product life cycles and the competitive nature of the industry are factors considered in the evaluation of customer unit demand at the end of each quarterly accounting period.  Inventory quantities on-hand in excess of forecasted demand is considered to have reduced market value and, therefore, the cost basis is adjusted to the lower of cost or net realizable value.  Typically, market values for excess or obsolete inventories are considered to be zero.  Inventory charges recorded for excess and obsolete inventory, including scrapped inventory, represented $6.7 million and $4.8 million, in fiscal year 2017 and 2016, respectively.  Inventory charges in fiscal year 2017 and 2016 related to a combination of quality issues and inventory exceeding demand.    



Inventories were comprised of the following (in thousands):





 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Work in process

$

83,332 

 

$

67,827 

Finished goods

 

84,563 

 

 

74,188 



$

167,895 

 

$

142,015 



Property, Plant and Equipment, net



Property, plant and equipment is recorded at cost, net of depreciation and amortization.  Depreciation and amortization is calculated on a straight-line basis over estimated economic lives, ranging from three to 39 years.  Leasehold improvements are depreciated over the shorter of the term of the lease or the estimated useful life.  Furniture, fixtures, machinery, and equipment are all depreciated over a useful life of three to 10 years, while buildings are depreciated over a period of up to 39 years.  In general, our capitalized software is amortized over a useful life of three years, with capitalized enterprise resource planning software being amortized over a useful life of 10 years.  Gains or losses related to retirements or dispositions of fixed assets are recognized in the period incurred.  Additionally, if impairment indicators exist, the Company will assess the carrying value of the associated asset.  In the fourth quarter of fiscal year 2017, the Company reassessed the carrying value of the property located in Edinburgh, Scotland, resulting in an asset impairment charge of $9.8 million.



Property, plant and equipment was comprised of the following (in thousands):







 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Land

$

26,379 

 

$

26,379 

Buildings

 

74,266 

 

 

73,513 

Furniture and fixtures

 

14,231 

 

 

13,226 

Leasehold improvements

 

4,355 

 

 

2,637 

Machinery and equipment

 

123,054 

 

 

105,880 

Capitalized software

 

24,839 

 

 

25,127 

Construction in progress

 

22,972 

 

 

5,411 

Total property, plant and equipment

 

290,096 

 

 

252,173 

Less: Accumulated depreciation and amortization

 

(121,957)

 

 

(89,517)

Property, plant and equipment, net

$

168,139 

 

$

162,656 



Depreciation and amortization expense on property, plant, and equipment for fiscal years 2017, 2016, and 2015 was $26.1 million, $22.3 million, and $15.4 million, respectively.

Goodwill and Intangibles, net



Intangible assets include purchased technology licenses and patents that are reported at cost and are amortized on a straight-line basis over their useful lives, generally ranging from one to ten years.  Acquired intangibles include existing technology, core technology or patents, license agreements, in-process research & development, trademarks, tradenames, customer relationships, non-compete agreements, and backlog.  These assets are amortized on a straight-line basis over lives ranging from one to fifteen years. 



Goodwill is recorded at the time of an acquisition and is calculated as the difference between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired.  Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests.  The Company tests goodwill and indefinite lived intangibles for impairment on an annual basis or more frequently if the Company believes indicators of impairment exist.  Impairment evaluations involve management’s assessment of qualitative factors to determine whether it is more likely than not that goodwill and other intangible assets are impaired.  If management concludes from its assessment of qualitative factors that it is more likely than not that impairment exists, then a quantitative impairment test will be performed involving management estimates of asset useful lives and future cash flows.  Significant management judgment is required in the forecasts of future operating results that are used in these evaluations.  If our actual results, or the plans and estimates used in future impairment analyses, are lower than the original estimates used to assess the recoverability of these assets, we could incur additional impairment charges in a future period.  The Company has recorded no goodwill impairments in fiscal years 2017, 2016, and 2015.  There were no material intangible asset impairments in fiscal years 2017, 2016, or 2015.

Long-Lived Assets



We test for impairment losses on long-lived assets and definite-lived intangibles used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts.  We measure any impairment loss by comparing the fair value of the asset to its carrying amount.  We estimate fair value based on discounted future cash flows, quoted market prices, or independent appraisals.

Foreign Currency Translation

Prior to the fiscal year 2015 acquisition of Wolfson Microelectronics (“Wolfson,” the “Acquisition”), each Cirrus Logic legal entity was US dollar functional.  Additionally, each of the acquired Wolfson legal entities were also designated as US dollar functional.  These designations were determined individually by Cirrus Logic and Wolfson prior to the Acquisition.  Subsequent to the integration of Wolfson, the Company reassessed the functional currencies of each legal entity based on the relevant facts and circumstances, as well as in accordance with the applicable accounting guidance contained in Accounting Standards Codification (“ASC”) 830-10, “Foreign Currency Matters.”  Based on its analysis and on the change in operating structure brought about by the Acquisition, the Company determined that the functional currency of some of its subsidiaries had changed from the US dollar to the local currency.  The Company’s main entities, including the entities that generate the majority of sales and employ the majority of employees, remain US dollar functional.  The change was effective beginning in fiscal year 2016 and had an immaterial effect on the financial statements.  Beginning in fiscal year 2016 foreign currency translation gains and losses are reported as a component of Accumulated Other Comprehensive Gain / (Loss).

Pension 



Defined benefit pension plans are accounted for based upon the provisions of ASC Topic 715, “Compensation – Retirement Benefits.”  



The funded status of the plan is recognized in the Consolidated Balance Sheet.   Subsequent re-measurement of plan assets and benefit obligations, if deemed necessary, would be reflected in the Consolidated Balance Sheet in the subsequent interim period to reflect the overfunded or underfunded status of the plan.



The Company engages external actuaries on at least an annual basis to provide a valuation of the plan’s assets and projected benefit obligation and to record the net periodic pension cost.  On a quarterly basis, the Company will evaluate current information available to us to determine whether the plan’s assets and projected benefit obligation should be re-measured.

Concentration of Credit Risk



Financial instruments that potentially subject us to material concentrations of credit risk consist primarily of cash equivalents, marketable securities, long-term marketable securities, and trade accounts receivable.  We are exposed to credit risk to the extent of the amounts recorded on the balance sheet.  By policy, our cash equivalents, marketable securities, and long-term marketable securities are subject to certain nationally recognized credit standards, issuer concentrations, sovereign risk, and marketability or liquidity considerations.



In evaluating our trade receivables, we perform credit evaluations of our major customers’ financial condition and monitor closely all of our receivables to limit our financial exposure by limiting the length of time and amount of credit extended.  In certain situations, we may require payment in advance or utilize letters of credit to reduce credit risk.  By policy, we establish a reserve for trade accounts receivable based on the type of business in which a customer is engaged, the length of time a trade account receivable is outstanding, and other knowledge that we may possess relating to the probability that a trade receivable is at risk for non-payment. 



We had three contract manufacturers, Hongfujin Precision, Protek, and Jabil Circuits who represented 20 percent, 15 percent, and 13 percent, respectively of our consolidated gross trade accounts receivable as of the end of fiscal year 2017.  Hongfujin Precision and Protek represented 23 percent and 11 percent, respectively, and Samsung Electronics, a direct customer, represented 23 percent of our consolidated gross trade accounts receivable as of the end of fiscal year 2016.  No other distributor or customer had receivable balances that represented more than 10 percent of consolidated gross trade accounts receivable as of the end of fiscal year 2017 and 2016.



Since the components we produce are largely proprietary and generally not available from second sources, we consider our end customer to be the entity specifying the use of our component in their design.  These end customers may then purchase our products directly from us, from a distributor, or through a third party manufacturer contracted to produce their end product.  For fiscal years 2017, 2016, and 2015, our ten largest end customers represented approximately 92 percent, 89 percent, and 87 percent, of our sales, respectively.  For fiscal years 2017, 2016, and 2015,  we had one end customer, Apple Inc., who purchased through multiple contract manufacturers and represented approximately 79 percent, 66 percent, and 72 percent, of the Company’s total sales, respectively.  Samsung Electronics represented 15 percent of the Company’s total sales in fiscal year 2016.  No other customer or distributor represented more than 10 percent of net sales in fiscal years 2017, 2016, or 2015.

Revenue Recognition

We recognize revenue when all of the following criteria are met: persuasive evidence that an arrangement exists, delivery of goods has occurred, the sales price is fixed or determinable and collectability is reasonably assured.  Prior to the fourth quarter of fiscal year 2016, we had a number of arrangements with distributors whereby we deferred revenue at the time of shipment of our products to those distributors.  As part of those arrangements, when a distributor resold those products to an end customer, the Company would credit the distributor the difference between (1) the original distributor price and the distributor’s agreed upon margin and (2) the final sales price to the end customer (known as the “Ship and Debit Arrangement”).  For those transactions, revenue was deferred until the product was resold by the distributor and we determined that the final sales price to the distributor was fixed or determinable.  For certain of our smaller distributors, we did not have similar Ship and Debit Arrangements and the distributors were billed at a fixed upfront price.  For those transactions, revenue was recognized upon delivery to the distributor based upon the distributor’s individual shipping terms, less an allowance for estimated returns, as the Company determined that the revenue recognition criteria were met.

In light of the fact that the distributor program had been declining as a portion of the overall business for several years, in fiscal year 2016 the Company performed a review of all distributor arrangements in an effort to streamline our distribution program and reduce overhead costs.  Based upon this review, the Company terminated its Ship and Debit Arrangements with Distributors during the fourth quarter of fiscal year 2016.  Subsequent to the termination of the Ship and Debit Arrangements, the Company began recognizing revenue for all distributors upon delivery to the distributor based upon the distributor’s individual shipping terms, less an allowance for estimated returns, as the Company’s final sales price to the distributor was fixed and determinable and the Company determined that all four criteria for revenue recognition were met.

Although the Company terminated its Ship and Debit Arrangements with all distributors along with certain ancillary agreements related to the Ship and Debit Arrangements, the Company continues to grant varying levels of stock rotation and price protection rights based on individual distributor agreements.  To the extent these rights are implicated in any transaction with a distributor, we continue to evaluate their effect on when the revenue recognition criteria have been met.

Warranty Expense



We warrant our products and maintain a provision for warranty repair or replacement of shipped products.  The accrual represents management’s estimate of probable returns.  Our estimate is based on an analysis of our overall sales volume and historical claims experience.  The estimate is re-evaluated periodically for accuracy.

Shipping Costs



Our shipping and handling costs are included in cost of sales for all periods presented in the Consolidated Statements of Income.

Advertising Costs



Advertising costs are expensed as incurred.  Advertising costs were $1.7 million, $1.6 million, and $1.1 million, in fiscal years 2017, 2016, and 2015, respectively.

Stock-Based Compensation



Stock-based compensation is measured at the grant date based on the grant-date fair value of the awards and is recognized as an expense, on a ratable basis, over the vesting period, which is generally between zero and four years.  Determining the amount of stock-based compensation to be recorded requires the Company to develop estimates used in calculating the grant-date fair value of stock options and performance awards (also called market stock units).  The Company calculates the grant-date fair value for stock options and market stock units using the Black-Scholes valuation model and the Monte Carlo simulation, respectively.  The use of valuation models requires the Company to make estimates of assumptions such as expected volatility, expected term, risk-free interest rate, expected dividend yield, correlation of the Company’s stock price with the Philadelphia Semiconductor Index (“the Index”) and forfeiture rates.  The grant-date fair value of restricted stock units is the market value at grant date multiplied by the number of units. 

Income Taxes



We are required to calculate income taxes in each of the jurisdictions in which we operate.  This process involves calculating the actual current tax liability as well as assessing temporary differences in the recognition of income or loss for tax and accounting purposes.  These differences result in deferred tax assets and liabilities, which are included in our Consolidated Balance Sheet.  We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized.  The Company evaluates the ability to realize its deferred tax assets based on all the facts and circumstances, including projections of future taxable income and expiration dates of carryover tax attributes. 



The calculation of our tax liabilities involves assessing uncertainties with respect to the application of complex tax rules and the potential for future adjustment of our uncertain tax positions by the Internal Revenue Service or other taxing jurisdiction.  We recognize liabilities for uncertain tax positions based on the required two-step process.  The first step requires us to determine if the weight of available evidence indicates that the tax position has met the threshold for recognition; therefore, we must evaluate whether it is more likely than not that the position will be sustained on audit, including resolution of any related appeals or litigation processes.  The second step requires us to measure the tax benefit of the tax position taken, or expected to be taken, in an income tax return as the largest amount that is more than 50 percent likely of being realized upon ultimate settlement.  We reevaluate the uncertain tax positions each quarter based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, expirations of statutes of limitation, effectively settled issues under audit, and new audit activity.  A change in the recognition step or measurement step would result in the recognition of a tax benefit or an additional charge to the tax provision in the period. 



Although we believe the measurement of our liabilities for uncertain tax positions is reasonable, we cannot assure that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals.  If additional taxes are assessed as a result of an audit or litigation, it could have a material effect on our income tax provision and net income in the period or periods for which that determination is made.  We operate within multiple taxing jurisdictions and are subject to audit in these jurisdictions.  These audits can involve complex issues which may require an extended period of time to resolve and could result in additional assessments of income tax.  We believe adequate provisions for income taxes have been made for all periods.

Net Income Per Share



Basic net income per share is based on the weighted effect of common shares issued and outstanding and is calculated by dividing net income by the basic weighted average shares outstanding during the period.  Diluted net income per share is calculated by dividing net income by the weighted average number of common shares used in the basic net income per share calculation, plus the equivalent number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding.  These potentially dilutive items consist primarily of outstanding stock options and restricted stock grants.



The following table details the calculation of basic and diluted earnings per share for fiscal years 2017, 2016, and 2015, (in thousands, except per share amounts):





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

Numerator:

 

 

 

 

 

 

 

 

Net income

$

261,209 

 

$

123,630 

 

$

55,178 

Denominator:

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

63,329 

 

 

63,197 

 

 

62,503 

Effect of dilutive securities

 

3,232 

 

 

2,796 

 

 

2,732 

Weighted average diluted shares

 

66,561 

 

 

65,993 

 

 

65,235 

Basic earnings per share

$

4.12 

 

$

1.96 

 

$

0.88 

Diluted earnings per share

$

3.92 

 

$

1.87 

 

$

0.85 

   

The weighted outstanding options excluded from our diluted calculation for the years ended March 25, 2017, March 26, 2016, and March 28, 2015 were 389 thousand, 468 thousand, and 718 thousand, respectively, as the exercise price exceeded the average market price during the period.

Accumulated Other Comprehensive Income (Loss)



Our accumulated other comprehensive income (loss) is comprised of foreign currency translation adjustments, unrealized gains and losses on investments classified as available-for-sale and actuarial gains and losses on our pension plan assets.  See Note 14 – Accumulated Other Comprehensive Income (Loss) for additional discussion.

Recently Issued Accounting Pronouncements



In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (ASC Topic 606).  The purpose of this ASU is to converge revenue recognition requirements per GAAP and International Financial Reporting Standards (IFRS).  The core principle of the guidance is that an entity should recognize revenue to depict the transfer 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.  In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date after public comment supported a proposal to delay the effective date of this ASU to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period.  The Company is currently in the process of reviewing our customers’ contracts in respect of performance obligation identification and satisfaction, pricing, warranties, and return rights, among other considerations.  Through this process, the Company currently expects no material modifications to its financial statements upon adoption of this ASU. 



In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.  The amendments in this ASU provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures.  The amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter.  Early application is permitted.  The Company adopted this ASU in the fourth quarter of fiscal year 2017 with no material modifications to the Company’s financial statements as a result.



In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.  The amendments in this update require that debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability and that the amortization of debt issuance costs is reported as interest expense.  ASU 2015-03 is to be applied retrospectively and represents a change in accounting principle.  In August 2015, the FASB issued FASB ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.  ASU 2015-15 clarified the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements.  Debt issuance costs related to a line-of-credit arrangement may be presented in the balance sheet as an asset and subsequently amortized ratably over the term of the arrangement regardless of whether there are any outstanding borrowings.  Both ASU 2015-03 and ASU 2015-15 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years.  Earlier adoption is permitted for financial statements that have not been previously issued.  The Company adopted these ASUs in fiscal year 2017 with no material impact to its financial statements.



In April 2015, the FASB issued ASU No. 2015-04, Compensation – Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets.  The ASU is part of the FASB’s “Simplification Initiative” to reduce complexity in accounting standards.  The FASB decided to permit entities to measure defined benefit plan assets and obligations as of the month-end that is closest to their fiscal year-end.  An entity is required to disclose the accounting policy election and the date used to measure defined benefit plan assets and obligations in accordance with the amendments in this update.  The amendments in this update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with earlier application permitted.  The Company adopted this ASU in the first quarter of fiscal year 2017, with no material impact to its financial statements.   



In July 2015, ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory was issued.  This ASU requires companies to subsequently measure inventory at the lower of cost and net realizable value versus the previous lower of cost or market.  The amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, to be applied prospectively.  Early application is permitted.  The Company early adopted this ASU in fiscal year 2017 with no material modifications to its financial statements as a result. 



In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842).  The FASB issued this update to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key leasing arrangement details.  Lessees would recognize operating leases on the balance sheet under this ASU — with the future lease payments recognized as a liability, measured at present value, and the right-of-use asset recognized for the lease term. A single lease cost would be recognized over the lease term.  For terms less than twelve months, a lessee would be permitted to make an accounting policy election to recognize lease expense for such leases generally on a straight-line basis over the lease term.  This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  Early adoption is permitted.  The Company is currently evaluating the impact of this ASU.



In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.  This ASU requires all excess tax benefits and deficiencies to be recognized as income tax benefit / expense in the income statement and presented as an operating activity in the statement of cash flows.  Forfeitures can be calculated based on either the estimated number of awards that are expected to vest, as required by current guidance, or when forfeitures actually occur.  This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods.  Early adoption is permitted, but all amendments must be adopted in the same period and any adjustments should be reflected as of the beginning of the fiscal year if adopted in an interim period.  The Company early adopted in the third quarter of fiscal year 2017, which resulted in the following:



·

We recorded excess tax benefits within income tax expense, rather than in additional paid-in capital (“APIC”), of $2.2 million, $8.0 million, $10.8 million and $1.9 million for the first, second, third and fourth quarters of fiscal year 2017, respectively.

·

We recorded a cumulative-effect adjustment as of March 27, 2016 to increase retained earnings by $5.6 million, with a corresponding increase to deferred tax assets, to recognize net operating loss and tax credit carryforwards attributable to excess tax benefits on stock-based compensation that had not been previously recognized.

·

We now include the excess tax benefits in net operating cash rather than net financing cash in our Consolidated Statements of Cash Flows.  



 We applied this change in presentation prospectively and thus prior years have not been adjusted. 

  

We elected not to change our policy on accounting for forfeitures and continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period.

  

The adoption of this new guidance impacted our previously reported quarterly results for fiscal year 2017 as follows:







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

 

Six Months Ended



 

June 25, 2016

 

September 24, 2016

 

 

September 24, 2016



 

As reported

 

As adjusted

 

As reported

 

As adjusted

 

 

As reported

 

As adjusted



 

(in thousands, except per share data)

Consolidated Condensed Statements of Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

$

5,805 

$

3,598 

$

24,608 

$

16,634 

 

$

30,413 

$

20,232 

Net income

$

15,864 

$

18,071 

$

78,065 

$

86,039 

 

$

93,929 

$

104,110 

Basic net income per share

$

0.25 

$

0.29 

$

1.24 

$

1.37 

 

$

1.50 

$

1.66 

Diluted net income per share

$

0.24 

$

0.27 

$

1.19 

$

1.30 

 

$

1.43 

$

1.58 

Weighted average shares used in diluted net income per share computation

 

65,232 

 

65,723 

 

65,717 

 

66,410 

 

 

65,521 

 

66,101 



 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Condensed Statements of Cash Flows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

12,226 

$

12,756 

$

19,990 

$

24,091 

 

$

32,216 

$

36,847 

Net cash used in financing activities

$

(13,140)

$

(13,670)

$

(13,859)

$

(17,960)

 

$

(26,999)

$

(31,630)



In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  This ASU requires credit losses on available-for-sale debt securities to be presented as an allowance rather than a write-down. Unlike current U.S. GAAP, the credit losses could be reversed with changes in estimates, and recognized in current year earnings. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods.  Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods.  The Company is currently evaluating the impact of this ASU with no expected material impact. 

  

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.  This ASU covers several cash flow issues, including the presentation of contingent consideration payments made after a business combination.  Cash payments up to the amount of the liability recognized at the acquisition date (including measurement-period adjustments) should be classified as financing activities.  This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods.  Early adoption is permitted, including in an interim period, with a required retrospective transition method applied to each period presented.  The Company early adopted in the fourth quarter of fiscal year 2017.  See Statement of Cash Flows for presentation of contingent consideration payment. 

 

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.  This ASU relates to income tax consequences of non-inventory intercompany asset transfers.  This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods.  Early adoption is permitted, as of the beginning of an annual reporting period.  The guidance requires companies to apply a modified retrospective approach with a cumulative catch-up adjustment to beginning retained earnings in the period of adoption.  The Company is currently evaluating the impact of this ASU. 

  

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business.  The update states that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business, and should be treated as an asset acquisition instead.  This ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods.  Early adoption is permitted under specific circumstances, including in an interim period, with prospective application on or after the effective date.  The Company is currently evaluating the financial statement impact of this ASU, which is dependent upon the specific terms of any applicable future acquisitions or dispositions.       



In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323).  This ASU amends the disclosure requirements for ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ASU 2016-02, Leases (Topic 842) and ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  This ASU states that if a registrant does not know or cannot reasonably estimate the impact that the adoption of the above ASUs is expected to have on the financial statements, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the standard will have on the financial statements of the registrant when adopted. This ASU was effective upon issuance.  The adoption did not have a material impact on the Company’s financial statements.    



In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.  This ASU eliminates step two of the goodwill impairment test.  An impairment charge is to be recognized for the amount by which the current value exceeds the fair value.  This ASU is effective for annual periods beginning after December 15, 2019, including interim periods.  Early adoption is permitted, for interim or annual goodwill impairment tests performed after January 1, 2017, and should be applied prospectively.  An entity is required to disclose the nature of and reason for the change in accounting principle upon transition.  That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update.  The Company is currently evaluating the impact of this ASU

Summary of Significant Accounting Policies (Tables)



 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Work in process

$

83,332 

 

$

67,827 

Finished goods

 

84,563 

 

 

74,188 



$

167,895 

 

$

142,015 





 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Land

$

26,379 

 

$

26,379 

Buildings

 

74,266 

 

 

73,513 

Furniture and fixtures

 

14,231 

 

 

13,226 

Leasehold improvements

 

4,355 

 

 

2,637 

Machinery and equipment

 

123,054 

 

 

105,880 

Capitalized software

 

24,839 

 

 

25,127 

Construction in progress

 

22,972 

 

 

5,411 

Total property, plant and equipment

 

290,096 

 

 

252,173 

Less: Accumulated depreciation and amortization

 

(121,957)

 

 

(89,517)

Property, plant and equipment, net

$

168,139 

 

$

162,656 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

Numerator:

 

 

 

 

 

 

 

 

Net income

$

261,209 

 

$

123,630 

 

$

55,178 

Denominator:

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

63,329 

 

 

63,197 

 

 

62,503 

Effect of dilutive securities

 

3,232 

 

 

2,796 

 

 

2,732 

Weighted average diluted shares

 

66,561 

 

 

65,993 

 

 

65,235 

Basic earnings per share

$

4.12 

 

$

1.96 

 

$

0.88 

Diluted earnings per share

$

3.92 

 

$

1.87 

 

$

0.85 





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

 

Six Months Ended



 

June 25, 2016

 

September 24, 2016

 

 

September 24, 2016



 

As reported

 

As adjusted

 

As reported

 

As adjusted

 

 

As reported

 

As adjusted



 

(in thousands, except per share data)

Consolidated Condensed Statements of Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

$

5,805 

$

3,598 

$

24,608 

$

16,634 

 

$

30,413 

$

20,232 

Net income

$

15,864 

$

18,071 

$

78,065 

$

86,039 

 

$

93,929 

$

104,110 

Basic net income per share

$

0.25 

$

0.29 

$

1.24 

$

1.37 

 

$

1.50 

$

1.66 

Diluted net income per share

$

0.24 

$

0.27 

$

1.19 

$

1.30 

 

$

1.43 

$

1.58 

Weighted average shares used in diluted net income per share computation

 

65,232 

 

65,723 

 

65,717 

 

66,410 

 

 

65,521 

 

66,101 



 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Condensed Statements of Cash Flows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

12,226 

$

12,756 

$

19,990 

$

24,091 

 

$

32,216 

$

36,847 

Net cash used in financing activities

$

(13,140)

$

(13,670)

$

(13,859)

$

(17,960)

 

$

(26,999)

$

(31,630)



Marketable Securities (Tables)



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

Estimated



 

 

 

Gross

 

Gross

 

Fair Value



Amortized

 

Unrealized

 

Unrealized

 

(Net Carrying

As of March 25, 2017

Cost

 

Gains

 

Losses

 

Amount)

Corporate debt securities

$

33,350 

 

$

 -

 

$

(20)

 

$

33,330 

Commercial paper

 

66,518 

 

 

 -

 

 

(35)

 

 

66,483 

Total securities

$

99,868 

 

$

 -

 

$

(55)

 

$

99,813 



The Company’s specifically identified gross unrealized losses of $55 thousand relates to 18 different securities with a total amortized cost of approximately $99.9 million at March 25, 2017. Four securities had been in a continuous unrealized loss position for more than 12 months as of March 25, 2017.  The gross unrealized loss on these securities was less than one tenth of one percent of the position value.  Because the Company does not intend to sell the investments at a loss and it is not more likely than not that the Company will be required to sell the investments before recovery of its amortized cost basis, the Company did not consider the investment in these securities to be other-than-temporarily impaired at March 25, 2017. 





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Estimated



 

 

Gross

 

Gross

 

Fair Value



Amortized

 

Unrealized

 

Unrealized

 

(Net Carrying

As of March 26, 2016

Cost

 

Gains

 

Losses

 

Amount)

Corporate debt securities

$

81,310 

 

$

 

$

(100)

 

$

81,213 





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

March 25, 2017

 

March 26, 2016



 

Amortized

 

Estimated

 

Amortized

 

Estimated



 

Cost

 

Fair Value

 

Cost

 

Fair Value

Within 1 year

 

$

99,868 

 

$

99,813 

 

$

60,603 

 

$

60,582 

After 1 year

 

 

 -

 

 

 -

 

 

20,707 

 

 

20,631 

Total

 

$

99,868 

 

$

99,813 

 

$

81,310 

 

$

81,213 



Fair Value of Financial Instruments (Tables)



Quoted Prices

 

 

 

 

 

 



in Active

 

Significant

 

 

 

 



Markets for

 

Other

 

Significant

 

 



Identical

 

Observable

 

Unobservable

 

 



Assets

 

Inputs

 

Inputs

 

 



Level 1

 

Level 2

 

Level 3

 

Total

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

313,982 

 

$

 -

 

$

 -

 

$

313,982 



 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

$

 -

 

$

33,330 

 

$

 -

 

$

33,330 

Commercial paper

 

 -

 

 

66,483 

 

 

 -

 

 

66,483 



$

 -

 

$

99,813 

 

$

 -

 

$

99,813 



 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Other accrued liabilities

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration - short-term

$

 -

 

$

 -

 

$

4,695 

 

$

4,695 



The following summarizes the fair value of our financial instruments at March 26, 2016 (in thousands):





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Quoted Prices

 

 

 

 

 

 



in Active

 

Significant

 

 

 

 



Markets for

 

Other

 

Significant

 

 



Identical

 

Observable

 

Unobservable

 

 



Assets

 

Inputs

 

Inputs

 

 



Level 1

 

Level 2

 

Level 3

 

Total

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

79,256 

 

$

 -

 

$

 -

 

$

79,256 



 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

$

 -

 

$

81,213 

 

$

 -

 

$

81,213 



 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Other accrued liabilities

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration - short-term

$

 -

 

$

 -

 

$

4,709 

 

$

4,709 

Other long-term liabilities

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration - long-term

$

 -

 

$

 -

 

$

4,359 

 

$

4,359 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

Maximum Value if Milestones Achieved
(in thousands)

 

Estimated Discount Rate (%)

 

 

Fair Value
(in thousands)

Tranche A - 18 month earn out period

 

$

5,000 

 

7.0 

 

$

 -

Tranche B - 30 month earn out period

 

 

5,000 

 

7.7 

 

 

4,695 



 

$

10,000 

 

 

 

$

4,695 





 

 



Fiscal year ended



March 25,



2017



(in thousands)

Beginning balance

$

9,068 

Adjustment to estimates (research and development expense)

 

(3,579)

Payout of Tranche A contingent consideration

 

(1,213)

Fair value charge recognized in earnings (research and development expense)

 

419 

Ending balance

$

4,695 



Accounts Receivable, Net (Tables)



 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Gross accounts receivable

$

120,408 

 

$

89,007 

Allowance for doubtful accounts

 

(434)

 

 

(475)

Accounts receivable, net

$

119,974 

 

$

88,532 





 

 



 

 

Balance, March 29, 2014

$

(229)

Bad debt expense, net of recoveries

 

(127)

Balance, March 28, 2015

 

(356)

Bad debt expense, net of recoveries

 

(119)

Balance, March 26, 2016

 

(475)

Bad debt expense, net of recoveries

 

41 

Balance, March 25, 2017

$

(434)



Intangibles, Net And Goodwill (Tables)



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

March 25, 2017

 

 

March 26, 2016

Intangible Category / Weighted-Average Amortization period (in years)

 

Gross Amount

 

 

Accumulated Amortization

 

 

Gross Amount

 

 

Accumulated Amortization

Core technology (a)

$

1,390 

 

$

(1,390)

 

$

1,390 

 

$

(1,390)

License agreement (a)

 

440 

 

 

(440)

 

 

440 

 

 

(440)

Existing technology (6.1)

 

117,975 

 

 

(53,960)

 

 

117,975 

 

 

(32,873)

In-process research & development ("IPR&D") (7.3)

 

72,750 

 

 

(24,245)

 

 

72,750 

 

 

(14,082)

Trademarks and tradename (10.0)

 

3,037 

 

 

(2,208)

 

 

3,037 

 

 

(2,076)

Customer relationships (10.0)

 

15,381 

 

 

(4,191)

 

 

15,381 

 

 

(2,655)

Backlog (a)

 

220 

 

 

(220)

 

 

220 

 

 

(147)

Non-compete agreements (a)

 

470 

 

 

(470)

 

 

470 

 

 

(209)

Technology licenses (3.1)

 

24,540 

 

 

(13,891)

 

 

16,661 

 

 

(11,620)

Total

$

236,203 

 

$

(101,015)

 

$

228,324 

 

$

(65,492)





 

 



 

 

For the year ended March 31, 2018

$

37,563 

For the year ended March 30, 2019

$

35,660 

For the year ended March 28, 2020

$

26,499 

For the year ended March 27, 2021

$

15,895 

For the year ended March 26, 2022

$

12,145 

Thereafter

$

8,523 



Postretirement Benefit Plans (Tables)



 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Change in benefit obligation:

 

 

 

 

 

Beginning balance

$

23,968 

 

$

27,091 

Expenses

 

 -

 

 

15 

Interest cost

 

759 

 

 

821 

Plan settlements

 

(4,517)

 

 

 -

Benefits paid and expenses

 

(264)

 

 

(1,095)

Change in foreign currency exchange rate

 

(2,763)

 

 

(1,221)

Actuarial (gain) / loss

 

3,940 

 

 

(1,643)

Total benefit obligation ending balance

 

21,123 

 

 

23,968 



 

 

 

 

 

Change in plan assets:

 

 

 

 

 

Beginning balance

 

25,688 

 

 

26,735 

Actual return on plan assets

 

3,933 

 

 

(155)

Employer contributions

 

990 

 

 

1,409 

Plan settlements

 

(5,243)

 

 

 -

Change in foreign currency exchange rate

 

(2,961)

 

 

(1,206)

Benefits paid and expenses

 

(264)

 

 

(1,095)

Fair value of plan assets ending balance

 

22,143 

 

 

25,688 



 

 

 

 

 

Funded status of Scheme at end of year

$

1,020 

 

$

1,720 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

Expenses

$

 -

 

$

15 

 

$

16 

Interest cost

 

759 

 

 

821 

 

 

544 

Expected return on plan assets

 

(1,126)

 

 

(1,212)

 

 

(792)

Settlement (gain) loss

 

1,063 

 

 

 -

 

 

 -

Amortization of actuarial (gain) loss 

 

(89)

 

 

49 

 

 

 -



$

607 

 

$

(327)

 

$

(232)





 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



2017

 

2016

 

2015

 

Discount rate

 

3.60 

%

 

3.20 

%

 

4.00 

%

Expected long-term return on plan assets

 

4.93 

%

 

4.65 

%

 

5.36 

%





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Quoted Prices

 

 

 

 

 

 

 

 

 



in Active

 

Significant

 

 

 

 

 

 



Markets for

 

Other

 

Significant

 

 

 



Identical

 

Observable

 

Unobservable

 

 

 



Assets

 

Inputs

 

Inputs

 

 

 



Level 1

 

Level 2

 

Level 3

 

Total

Plan Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash

$

160 

 

$

 -

 

$

 -

 

$

160 

Pension funds

 

 -

 

 

21,983 

 

 

 -

 

 

21,983 



$

160 

 

$

21,983 

 

$

 -

 

$

22,143 

The table below sets forth the fair value of our plan assets as of March 26, 2016, (in thousands):





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Quoted Prices

 

 

 

 

 

 

 

 

 



in Active

 

Significant

 

 

 

 

 

 



Markets for

 

Other

 

Significant

 

 

 



Identical

 

Observable

 

Unobservable

 

 

 



Assets

 

Inputs

 

Inputs

 

 

 



Level 1

 

Level 2

 

Level 3

 

Total

Plan Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash

$

42 

 

$

 -

 

$

 -

 

$

42 

Pension funds

 

 -

 

 

25,646 

 

 

 -

 

 

25,646 



$

42 

 

$

25,646 

 

$

 -

 

$

25,688 





 

 



 

 



 

Fiscal Year



 

2017

Net actuarial loss

$

(79)



 

 

Accumulated other comprehensive income, before tax

$

(79)





 

 



 

 



 

Fiscal Year



 

2018

Transition (asset) obligation

$

 -

Prior service cost

 

 -

Actuarial loss (gain)

 

(37)





 

 



 

Benefit



 

Payments

2018

$

266 

2019

 

411 

2020

 

481 

2021

 

472 

2022

 

415 

Thereafter

 

2,765 





 

 

 

 

 

 



 

 

 

 

 

 



Actual Allocation



2017

 

2016

 

Equity securities

 

33 

%

 

32 

%

Corporate bonds

 

48 

 

 

47 

 

Diversified growth

 

19 

 

 

21 

 

Cash

 

 -

 

 

 -

 

Total

 

100 

%

 

100 

%





 

 



 

 

Change

 

Approximate impact on liabilities

Decrease discount rate by 0.1%, per year

 

2% increase

Increase inflation linked assumptions by 0.1%, per year

 

2% increase (of inflation-linked liabilities)

Increase life expectancy by 1 year

 

2% increase



Equity Compensation (Tables)



 

 



 

 



 

Shares



 

Available for



 

Grant

Balance, March 29, 2014

 

3,547 

Shares added

 

3,300 

Granted

 

(3,181)

Forfeited

 

230 

Balance, March 28, 2015

 

3,896 

Shares added

 

4,900 

Granted

 

(2,676)

Forfeited

 

167 

Balance, March 26, 2016

 

6,287 

Shares added

 

 -

Granted

 

(1,719)

Forfeited

 

124 

Balance, March 25, 2017

 

4,692 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Year



 

2017

 

 

2016

 

 

2015

Cost of sales

$

1,071 

 

$

1,145 

 

$

747 

Research and development

 

21,186 

 

 

17,173 

 

 

11,222 

Sales, general and administrative

 

17,336 

 

 

15,188 

 

 

25,580 

Effect on pre-tax income

 

39,593 

 

 

33,506 

 

 

37,549 

Income Tax Benefit

 

(12,482)

 

 

(10,306)

 

 

(11,467)

Total share-based compensation expense (net of taxes)

 

27,111 

 

 

23,200 

 

 

26,082 

Share-based compensation effects on basic earnings per share

$

0.43 

 

$

0.37 

 

$

0.42 

Share-based compensation effects on diluted earnings per share

 

0.41 

 

 

0.35 

 

 

0.40 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 



 

March 25, 2017

 

 

March 26, 2016

 

 

March 28, 2015

 

Expected stock price volatility

 

47.66

%

 

40.13 

-

45.07

%

 

38.79 

-

42.12

%

Risk-free interest rate

 

1.13

%

 

0.94 

-

1.05

%

 

0.49 

-

0.91

%

Expected term (in years)

 

2.79

 

 

2.72 

-

2.97

 

 

2.15 

-

2.87

 





 

 

 

 

 



 

 

 

 

 



 

Outstanding Options



 

 

 

 

Weighted



 

 

 

 

Average



 

Number

 

 

Exercise Price

Balance, March 29, 2014

 

3,725 

 

$

12.42 

Options granted

 

310 

 

 

21.69 

Options exercised

 

(696)

 

 

7.47 

Options forfeited

 

(5)

 

 

19.94 

Options expired

 

(1)

 

 

4.65 

Balance, March 28, 2015

 

3,333 

 

$

14.31 

Options granted

 

387 

 

 

31.39 

Options exercised

 

(773)

 

 

8.46 

Options forfeited

 

 -

 

 

 -

Options expired

 

(22)

 

 

35.41 

Balance, March 26, 2016

 

2,925 

 

$

17.96 

Options granted

 

215 

 

 

54.65 

Options exercised

 

(1,382)

 

 

11.87 

Options forfeited

 

 -

 

 

 -

Options expired

 

 -

 

 

 -

Balance, March 25, 2017

 

1,758 

 

$

27.25 





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

 

 

Weighted

 

Weighted Average

 

 

 



 

Number of

 

 

Average

 

Remaining Contractual

 

 

Aggregate



 

Options

 

 

Exercise price

 

Term (years)

 

 

Intrinsic Value

Vested and expected to vest

 

1,757 

 

$

27.24

 

6.40

 

$

57,674

Exercisable

 

1,128 

 

$

21.77

 

5.18

 

$

43,196





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Options Outstanding

 

Options Exercisable



 

 

 

Weighted Average

 

 

 

 

 

 

 

 



 

 

 

Remaining

 

Weighted

 

 

 

Weighted



 

 

 

Contractual Life

 

Average Exercise

 

Number

 

Average

Range of Exercise Prices

 

Number

 

(years)

 

Price

 

Exercisable

 

Exercise Price

$2.90 - $15.41

 

371 

 

3.33 

 

$

11.01 

 

371 

 

$

11.01 

$16.21 - $20.37

 

328 

 

5.81 

 

 

18.63 

 

242 

 

 

18.02 

$20.40 - $24.14

 

265 

 

6.48 

 

 

23.29 

 

203 

 

 

23.30 

$31.25 - $31.25

 

331 

 

8.61 

 

 

31.25 

 

91 

 

 

31.25 

$32.29 - $38.99

 

248 

 

5.97 

 

 

38.00 

 

221 

 

 

38.60 

$54.65 - $54.65

 

215 

 

9.61 

 

 

54.65 

 

 -

 

 

 -



 

1,758 

 

6.40 

 

$

27.25 

 

1,128 

 

$

21.77 





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

 

 

Weighted

 

Weighted Average



 

 

 

 

Average

 

Remaining Contractual



 

Shares

 

 

Fair Value

 

Term (years)

Expected to vest

 

2,870 

 

$

34.64 

 

1.43 





 

 

 

 

 

 



 

Year Ended

 



 

March 25,

 

 

March 26,

 



 

2017

 

 

2016

 

Expected stock price volatility

 

47.66 

%

 

45.07 

%

Risk-free interest rate

 

0.98 

%

 

1.16 

%

Expected term (in years)

 

3.00 

 

 

3.00 

 





 

 

 

 



 

 

 

Weighted



 

 

 

Average



Shares

 

 

Fair Value

March 29, 2014

 -

 

$

 -

Granted

35 

 

 

22.00 

Vested

 -

 

 

 -

Forfeited

 -

 

 

 -

March 28, 2015

35 

 

$

22.00 

Granted

90 

 

 

39.86 

Vested

 -

 

 

 -

Forfeited

 -

 

 

 -

March 26, 2016

125 

 

$

34.85 

Granted

55 

 

 

75.58 

Vested

 -

 

 

 -

Forfeited

 -

 

 

 -

March 25, 2017

180 

 

$

47.30 





 

 

 

 

 

 

 



 

 

 

 

Weighted

 

Weighted Average



 

 

 

 

Average

 

Remaining Contractual



 

Shares

 

 

Fair Value

 

Term (years)

Expected to vest

 

171 

 

$

46.89 

 

1.69 





 

 

 

 



 

 

 

 



 

 

 

Weighted



 

 

 

Average



Shares

 

 

Fair Value

March 29, 2014

2,309 

 

$

25.26 

Granted

1,887 

 

 

22.04 

Vested

(1,224)

 

 

19.52 

Forfeited

(151)

 

 

26.17 

March 28, 2015

2,821 

 

 

25.57 

Granted

1,437 

 

 

31.51 

Vested

(992)

 

 

32.48 

Forfeited

(103)

 

 

24.75 

March 26, 2016

3,163 

 

 

26.14 

Granted

947 

 

 

52.40 

Vested

(1,032)

 

 

24.67 

Forfeited

(83)

 

 

28.40 

March 25, 2017

2,995 

 

$

34.91 



Commitments and Contingencies (Tables)
Schedule of Future Rental Commitments



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Facilities

 

 

Subleases

 

 

Net Facilities Commitments

 

 

Equipment and Other Commitments

 

 

Total Commitments

2018

$

7,074 

 

$

386 

 

$

6,688 

 

$

67 

 

$

6,755 

2019

 

10,354 

 

 

391 

 

 

9,963 

 

 

115 

 

 

10,078 

2020

 

9,811 

 

 

266 

 

 

9,545 

 

 

110 

 

 

9,655 

2021

 

9,580 

 

 

245 

 

 

9,335 

 

 

110 

 

 

9,445 

2022

 

9,313 

 

 

251 

 

 

9,062 

 

 

110 

 

 

9,172 

Thereafter

 

39,071 

 

 

859 

 

 

38,212 

 

 

432 

 

 

38,644 

Total minimum lease payment

$

85,203 

 

$

2,398 

 

$

82,805 

 

$

944 

 

$

83,749 



Accumulated Other Comprehensive Loss (Tables)
Summary of Changes in the Components of Accumulated Other Comprehensive Loss



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

 

 

Unrealized Gains

 

 

Actuarial Gains

 

 



 

Foreign

 

 

(Losses) on

 

 

(Losses) on

 

 



 

Currency

 

 

Securities

 

 

Pension Plan

 

Total

Balance, March 28, 2015

$

(770)

 

$

(47)

 

$

(1,293)

$

(2,110)

Current period foreign exchange translation

 

294 

 

 

 -

 

 

 -

 

294 

Current period marketable securities activity

 

 -

 

 

(24)

 

 

 -

 

(24)

Current period actuarial gain/loss activity

 

 -

 

 

 -

 

 

2,660 

 

2,660 

Current period amortization of actuarial loss

 

 -

 

 

 -

 

 

49 

 

49 

Tax effect

 

 -

 

 

 

 

(546)

 

(537)

Balance, March 26, 2016

 

(476)

 

 

(62)

 

 

870 

 

332 

Current period foreign exchange translation

 

(826)

 

 

 -

 

 

 -

 

(826)

Current period marketable securities activity

 

 -

 

 

47 

 

 

 -

 

47 

Current period actuarial gain/loss activity

 

 -

 

 

 -

 

 

(79)

 

(79)

Current period amortization of actuarial loss

 

 -

 

 

 -

 

 

(89)

 

(89)

Tax effect

 

 -

 

 

(16)

 

 

58 

 

42 

Balance, March 25, 2017

$

(1,302)

 

$

(31)

 

$

760 

$

(573)



Income Taxes (Tables)



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

U.S.

$

137,654 

 

$

108,133 

 

$

133,295 

Non-U.S.

 

177,393 

 

 

67,856 

 

 

(41,746)



$

315,047 

 

$

175,989 

 

$

91,549 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

Current:

 

 

 

 

 

 

 

 

U.S.

$

28,940 

 

$

28,313 

 

$

42,165 

Non-U.S.

 

7,234 

 

 

703 

 

 

445 

Total current tax provision

$

36,174 

 

$

29,016 

 

$

42,610 



 

 

 

 

 

 

 

 

Deferred:

 

 

 

 

 

 

 

 

U.S.

 

2,576 

 

 

18,242 

 

 

2,136 

Non-U.S.

 

15,088 

 

 

5,101 

 

 

(8,375)

Total deferred tax provision (benefit)

 

17,664 

 

 

23,343 

 

 

(6,239)

Total tax provision

$

53,838 

 

$

52,359 

 

$

36,371 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

U.S. federal statutory rate

 

35.0 

 

 

35.0 

 

 

35.0 

Foreign income taxed at different rates

 

(8.6)

 

 

(0.6)

 

 

7.3 

Research and development tax credits

 

(1.8)

 

 

(5.6)

 

 

(3.6)

Stock based compensation

 

(7.3)

 

 

 -

 

 

 -

Nondeductible expenses

 

 -

 

 

0.1 

 

 

2.3 

Other

 

(0.2)

 

 

0.9 

 

 

(1.3)

Effective tax rate

 

17.1 

 

 

29.8 

 

 

39.7 





 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Deferred tax assets:

 

 

 

 

 

Accrued expenses and allowances

$

9,002 

 

$

3,761 

Net operating loss carryforwards

 

6,294 

 

 

24,592 

Research and development tax credit carryforwards

 

13,977 

 

 

9,649 

Stock based compensation

 

17,356 

 

 

16,071 

Other

 

9,141 

 

 

9,976 

Total deferred tax assets

$

55,770 

 

$

64,049 

Valuation allowance for deferred tax assets

 

(12,570)

 

 

(10,773)

Net deferred tax assets

$

43,200 

 

$

53,276 



 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

Depreciation and amortization

$

13,837 

 

$

13,607 

Acquisition intangibles

 

16,301 

 

 

21,844 

Total deferred tax liabilities

$

30,138 

 

$

35,451 

Total net deferred tax assets

$

13,062 

 

$

17,825 





 

 

 

 

 



 

 

 

 

 



March 25,

 

March 26,



2017

 

2016

Beginning balance

$

18,796 

 

$

 -

Additions based on tax positions related to the current year

 

12,127 

 

 

12,592 

Additions based on tax positions related to prior years

 

 -

 

 

6,204 

Reductions based on tax positions related to the prior years

 

(65)

 

 

 -

Ending balance

$

30,858 

 

$

18,796 



Segment Information (Tables)



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

Portable Audio Products

$

1,373,848 

 

$

989,101 

 

$

740,301 

Non-Portable Audio and Other Products

 

165,092 

 

 

180,150 

 

 

176,267 



$

1,538,940 

 

$

1,169,251 

 

$

916,568 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,

 

March 28,



2017

 

2016

 

2015

United States

$

36,024 

 

$

73,889 

 

$

31,977 

European Union (excluding United Kingdom)

 

9,809 

 

 

12,745 

 

 

13,629 

United Kingdom

 

5,741 

 

 

5,687 

 

 

2,805 

China

 

1,249,325 

 

 

823,843 

 

 

728,413 

Hong Kong

 

181,283 

 

 

10,647 

 

 

15,087 

Japan

 

11,819 

 

 

27,898 

 

 

14,353 

South Korea

 

2,403 

 

 

193,388 

 

 

69,327 

Taiwan

 

14,426 

 

 

9,249 

 

 

15,272 

Other Asia

 

16,585 

 

 

8,657 

 

 

10,991 

Other non-U.S. countries

 

11,525 

 

 

3,248 

 

 

14,714 

Total consolidated sales

$

1,538,940 

 

$

1,169,251 

 

$

916,568 





 

 

 

 

 



 

 

 

 

 



Fiscal Years Ended



March 25,

 

March 26,



2017

 

2016

United States

$

120,212 

 

$

125,674 

European Union (excluding United Kingdom)

 

793 

 

 

253 

United Kingdom

 

44,981 

 

 

34,632 

China

 

565 

 

 

483 

Hong Kong

 

 

 

Japan

 

243 

 

 

260 

South Korea

 

202 

 

 

110 

Taiwan

 

231 

 

 

180 

Other Asia

 

50 

 

 

29 

Other non-U.S. countries

 

857 

 

 

1,034 

Total consolidated property, plant and equipment, net

$

168,139 

 

$

162,656 



Quarterly Results (Unaudited) (Tables)
Schedule of Unaudited Quarterly Statement of Operations Data



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Fiscal Year 2017



1st

 

2nd

 

3rd

 

4th



Quarter

 

Quarter

 

Quarter

 

Quarter



 

 

 

 

 

 

 

 

 

 

 

Net sales

$

259,428 

 

$

428,619 

 

$

523,029 

 

$

327,864 

Gross profit

 

126,685 

 

 

211,699 

 

 

255,152 

 

 

164,279 

Net income

 

18,071 

 

 

86,039 

 

 

122,041 

 

 

35,058 

Basic income per share

$

0.29 

 

$

1.37 

 

$

1.91 

 

$

0.55 

Diluted income per share

 

0.27 

 

 

1.30 

 

 

1.83 

 

 

0.52 







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Fiscal Year 2016



1st

 

2nd

 

3rd

 

4th



Quarter

 

Quarter

 

Quarter

 

Quarter



 

 

 

 

 

 

 

 

 

 

 

Net sales

$

282,633 

 

$

306,756 

 

$

347,863 

 

$

231,999 

Gross profit

 

132,454 

 

 

142,221 

 

 

164,911 

 

 

115,254 

Net income

 

33,354 

 

 

34,880 

 

 

41,384 

 

 

14,012 

Basic income per share

$

0.53 

 

$

0.55 

 

$

0.65 

 

$

0.22 

Diluted income per share

 

0.50 

 

 

0.53 

 

 

0.63 

 

 

0.21 



Summary of Significant Accounting Policies (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 25, 2017
Dec. 24, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Inventory write-down
 
 
 
 
$ 6,700 
$ 4,800 
 
Impairment of Real Estate
 
 
 
 
9,842 
 
 
Depreciation and amortization expense on property, plant and equipment
 
 
 
 
26,100 
22,300 
15,400 
Impairment of goodwill
 
 
 
 
Advertising expense
 
 
 
 
1,700 
1,600 
1,100 
Weighted outstanding options excluded from diluted calculation
 
 
 
 
389 
468 
718 
Share based compensation, excess tax benefits, amount
1,900 
10,800 
8,000 
2,200 
22,900 
 
 
Cumulative Effect of New Accounting Principle in Period of Adoption
$ 5,649 
 
 
 
$ 5,649 
 
 
Maximum [Member]
 
 
 
 
 
 
 
Intangible assets, useful life
 
 
 
 
10 years 
 
 
Acquired intangible assets, useful life
 
 
 
 
15 years 
 
 
Share-based compensation, vesting period
 
 
 
 
4 years 
 
 
Minimum [Member]
 
 
 
 
 
 
 
Intangible assets, useful life
 
 
 
 
1 year 
 
 
Acquired intangible assets, useful life
 
 
 
 
1 year 
 
 
Share-based compensation, vesting period
 
 
 
 
0 years 
 
 
Buildings [Member] |
Maximum [Member]
 
 
 
 
 
 
 
Estimated useful life
 
 
 
 
39 years 
 
 
Capitalized Software [Member]
 
 
 
 
 
 
 
Estimated useful life
 
 
 
 
3 years 
 
 
Furniture, Fixtures, Machinery and Equipment [Member] |
Maximum [Member]
 
 
 
 
 
 
 
Estimated useful life
 
 
 
 
10 years 
 
 
Furniture, Fixtures, Machinery and Equipment [Member] |
Minimum [Member]
 
 
 
 
 
 
 
Estimated useful life
 
 
 
 
3 years 
 
 
Capitalized Enterprise Resource Planning Software [Member]
 
 
 
 
 
 
 
Estimated useful life
 
 
 
 
10 years 
 
 
Property, Plant and Equipment [Member] |
Maximum [Member]
 
 
 
 
 
 
 
Estimated useful life
 
 
 
 
39 years 
 
 
Property, Plant and Equipment [Member] |
Minimum [Member]
 
 
 
 
 
 
 
Estimated useful life
 
 
 
 
3 years 
 
 
Hongfujin Precision [Member] |
Accounts Receivable [Member]
 
 
 
 
 
 
 
Concentration risk, percentage
 
 
 
 
20.00% 
23.00% 
 
Protek [Member] |
Accounts Receivable [Member]
 
 
 
 
 
 
 
Concentration risk, percentage
 
 
 
 
15.00% 
11.00% 
 
Jabil Circuits [Member] |
Accounts Receivable [Member]
 
 
 
 
 
 
 
Concentration risk, percentage
 
 
 
 
13.00% 
 
 
Apple, Inc. [Member] |
Sales Revenue, Net [Member]
 
 
 
 
 
 
 
Concentration risk, percentage
 
 
 
 
79.00% 
66.00% 
72.00% 
Samsung Electronics [Member] |
Sales Revenue, Net [Member]
 
 
 
 
 
 
 
Concentration risk, percentage
 
 
 
 
 
15.00% 
 
Samsung Electronics [Member] |
Accounts Receivable [Member]
 
 
 
 
 
 
 
Concentration risk, percentage
 
 
 
 
 
23.00% 
 
Ten Largest Customers [Member]
 
 
 
 
 
 
 
Number of customers responsible for sales concentration
 
 
 
 
10 
 
 
Summary of Significant Accounting Policies (Schedule of Inventories) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Mar. 26, 2016
Summary of Significant Accounting Policies [Abstract]
 
 
Work in process
$ 83,332 
$ 67,827 
Finished goods
84,563 
74,188 
Total inventories
$ 167,895 
$ 142,015 
Summary of Significant Accounting Policies (Components of Property, Plant and Equipment) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Mar. 26, 2016
Property, Plant and Equipment [Line Items]
 
 
Total property, plant and equipment
$ 290,096 
$ 252,173 
Less: Accumulated depreciation and amortization
(121,957)
(89,517)
Property, plant and equipment, net
168,139 
162,656 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property, plant and equipment
26,379 
26,379 
Buildings [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property, plant and equipment
74,266 
73,513 
Furniture and Fixtures [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property, plant and equipment
14,231 
13,226 
Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property, plant and equipment
4,355 
2,637 
Machinery and Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property, plant and equipment
123,054 
105,880 
Capitalized Software [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property, plant and equipment
24,839 
25,127 
Construction in Progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property, plant and equipment
$ 22,972 
$ 5,411 
Summary of Significant Accounting Policies (Calculation of Basic and Diluted Earnings Per Share) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Mar. 25, 2017
Dec. 24, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 26, 2016
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Sep. 24, 2016
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$ 35,058 
$ 122,041 
$ 86,039 
$ 18,071 
$ 14,012 
$ 41,384 
$ 34,880 
$ 33,354 
$ 104,110 
$ 261,209 
$ 123,630 
$ 55,178 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
Basic weighted average common shares outstanding
 
 
 
 
 
 
 
 
 
63,329 
63,197 
62,503 
Effect of dilutive securities
 
 
 
 
 
 
 
 
 
3,232 
2,796 
2,732 
Weighted average diluted shares
 
 
66,410 
65,723 
 
 
 
 
66,101 
66,561 
65,993 
65,235 
Basic earnings per share
$ 0.55 
$ 1.91 
$ 1.37 
$ 0.29 
$ 0.22 
$ 0.65 
$ 0.55 
$ 0.53 
$ 1.66 
$ 4.12 
$ 1.96 
$ 0.88 
Diluted earnings per share
$ 0.52 
$ 1.83 
$ 1.30 
$ 0.27 
$ 0.21 
$ 0.63 
$ 0.53 
$ 0.50 
$ 1.58 
$ 3.92 
$ 1.87 
$ 0.85 
Summary of Significant Accounting Policies (Schedule of ASU 2016-09 Early Adoption Impact) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Mar. 25, 2017
Dec. 24, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 26, 2016
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Sep. 24, 2016
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Provision (benefit) for income taxes
 
 
$ 16,634 
$ 3,598 
 
 
 
 
$ 20,232 
$ 53,838 
$ 52,359 
$ 36,371 
Net income
35,058 
122,041 
86,039 
18,071 
14,012 
41,384 
34,880 
33,354 
104,110 
261,209 
123,630 
55,178 
Basic earnings per share
$ 0.55 
$ 1.91 
$ 1.37 
$ 0.29 
$ 0.22 
$ 0.65 
$ 0.55 
$ 0.53 
$ 1.66 
$ 4.12 
$ 1.96 
$ 0.88 
Diluted earnings per share
$ 0.52 
$ 1.83 
$ 1.30 
$ 0.27 
$ 0.21 
$ 0.63 
$ 0.53 
$ 0.50 
$ 1.58 
$ 3.92 
$ 1.87 
$ 0.85 
Diluted weighted average common shares outstanding
 
 
66,410 
65,723 
 
 
 
 
66,101 
66,561 
65,993 
65,235 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
 
 
24,091 
12,756 
 
 
 
 
36,847 
369,751 
149,046 
163,477 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
 
 
(17,960)
(13,670)
 
 
 
 
(31,630)
(117,513)
(76,897)
205,475 
As Reported [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Provision (benefit) for income taxes
 
 
24,608 
5,805 
 
 
 
 
30,413 
 
 
 
Net income
 
 
78,065 
15,864 
 
 
 
 
93,929 
 
 
 
Basic earnings per share
 
 
$ 1.24 
$ 0.25 
 
 
 
 
$ 1.50 
 
 
 
Diluted earnings per share
 
 
$ 1.19 
$ 0.24 
 
 
 
 
$ 1.43 
 
 
 
Diluted weighted average common shares outstanding
 
 
65,717 
65,232 
 
 
 
 
65,521 
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
 
 
19,990 
12,226 
 
 
 
 
32,216 
 
 
 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
 
 
$ (13,859)
$ (13,140)
 
 
 
 
$ (26,999)
 
 
 
Marketable Securities (Narrative) (Details) (USD $)
Mar. 25, 2017
security
Mar. 26, 2016
security
Marketable Securities [Abstract]
 
 
Gross Unrealized Losses
$ (55,000)
$ (100,000)
Amortized cost on available for sale securities held at gross unrealized loss
$ 99,900,000 
$ 64,700,000 
Number of securities
18 
21 
Marketable Securities (Schedule of Available-for-sale Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Mar. 26, 2016
Schedule of Available-for-sale Securities [Line Items]
 
 
Estimated Fair Value (Net Carrying Amount)
$ 99,813 
$ 81,213 
Gross Unrealized Losses
(55)
(100)
Amortized Cost
99,868 
81,310 
Corporate Debt Securities - U.S. [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Estimated Fair Value (Net Carrying Amount)
33,330 
81,213 
Gross Unrealized Losses
(20)
(100)
Gross Unrealized Gains
 
Amortized Cost
33,350 
81,310 
Commercial Paper [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Estimated Fair Value (Net Carrying Amount)
66,483 
 
Gross Unrealized Losses
(35)
 
Amortized Cost
$ 66,518 
 
Marketable Securities (Schedule of Cost and Estimated Fair Value of Available-for-sale Securities by Contractual Maturity) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Mar. 26, 2016
Marketable Securities [Abstract]
 
 
Within 1 year, Amortized Cost
$ 99,868 
$ 60,603 
After 1 year, Amortized Cost
 
20,707 
Within 1 year, Estimated Fair Value
99,813 
60,582 
After 1 year, Estimated Fair Value
 
20,631 
Amortized Cost
99,868 
81,310 
Estimated Fair Value
$ 99,813 
$ 81,213 
Fair Value of Financial Instruments (Schedule of Fair Value of Financial Assets and Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Mar. 26, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
$ 22,143 
$ 25,688 
Fair Value, Net Asset (Liability)
4,695 
9,068 
Other Accrued Liability - Contingent Consideration [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value, Net Asset (Liability)
4,695 
4,709 
Other Long-Term Liability - Contingent Consideration [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value, Net Asset (Liability)
 
4,359 
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
160 
42 
Significant Other Observable Inputs Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
21,983 
25,646 
Significant Unobservable Inputs Level 3 [Member] |
Other Accrued Liability - Contingent Consideration [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value, Net Asset (Liability)
4,695 
4,709 
Significant Unobservable Inputs Level 3 [Member] |
Other Long-Term Liability - Contingent Consideration [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value, Net Asset (Liability)
 
4,359 
Cash Equivalents [Member] |
Money-Market Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
313,982 
79,256 
Cash Equivalents [Member] |
Money-Market Funds [Member] |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
313,982 
79,256 
Available-for-sale Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
99,813 
 
Available-for-sale Securities [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
99,813 
 
Available-for-sale Securities [Member] |
Corporate debt securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
33,330 
81,213 
Available-for-sale Securities [Member] |
Corporate debt securities [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
33,330 
81,213 
Available-for-sale Securities [Member] |
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
66,483 
 
Available-for-sale Securities [Member] |
Commercial Paper [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
$ 66,483 
 
Fair Value of Financial Instruments (Schedule of Fair Value of Financial Instruments - Contingent Consideration) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 25, 2017
Tranche A [Member]
Mar. 25, 2017
Tranche B [Member]
Mar. 25, 2017
Weighted Average [Member]
Mar. 25, 2017
Weighted Average [Member]
Tranche A [Member]
Mar. 25, 2017
Weighted Average [Member]
Tranche B [Member]
Fair Value Inputs, Discount Rate
 
 
7.00% 
7.70% 
 
 
 
Fair Value, Net Asset (Liability)
$ 4,695 
$ 9,068 
 
$ 4,695 
$ 10,000 
$ 5,000 
$ 5,000 
Fair Value of Financial Instruments (Schedule of Fair Value of Contingent Consideration Rollforward) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]
 
Beginning balance
$ 9,068 
Adjustment to estimates (research and development expense)
(3,579)
Payout of Tranche A contingent consideration
(1,213)
Fair value charge recognized in earnings (research and development expense)
419 
Ending balance
$ 4,695 
Accounts Receivable, Net (Components of Accounts Receivable, Net) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Mar. 29, 2014
Accounts Receivable, Net [Abstract]
 
 
 
 
Gross accounts receivable
$ 120,408 
$ 89,007 
 
 
Allowance for doubtful accounts
(434)
(475)
(356)
(229)
Accounts receivable, net
$ 119,974 
$ 88,532 
 
 
Accounts Receivable, Net (Changes in the Allowance for Doubtful Accounts) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Accounts Receivable, Net [Abstract]
 
 
 
Beginning balance
$ (475)
$ (356)
$ (229)
Bad debt expense, net of recoveries
41 
(119)
(127)
Ending balance
$ (434)
$ (475)
$ (356)
Intangibles, Net And Goodwill (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Intangibles, Net And Goodwill [Abstract]
 
 
 
Finite-Lived Intangible Assets, Net
$ 135,188 
$ 162,832 
 
Goodwill
286,767 
287,518 
 
Amortization expense for intangibles
$ 37,400 
$ 35,700 
$ 18,200 
Intangibles, Net And Goodwill (Schedule of Gross Carrying Amount and Amortization of Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Mar. 26, 2016
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Amount
$ 236,203 
$ 228,324 
Accumulated Amortization
(101,015)
(65,492)
Core Technology [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Amount
1,390 
1,390 
Accumulated Amortization
(1,390)
(1,390)
License Agreement [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Amount
440 
440 
Accumulated Amortization
(440)
(440)
Existing Technology [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Amount
117,975 
117,975 
Accumulated Amortization
(53,960)
(32,873)
In Process Research Development [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Amount
72,750 
72,750 
Accumulated Amortization
(24,245)
(14,082)
Trademarks and Tradenames [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Amount
3,037 
3,037 
Accumulated Amortization
(2,208)
(2,076)
Customer Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Amount
15,381 
15,381 
Accumulated Amortization
(4,191)
(2,655)
Backlog [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Amount
220 
220 
Accumulated Amortization
(220)
(147)
Non-compete Agreements [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Amount
470 
470 
Accumulated Amortization
(470)
(209)
Technology Licenses [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Amount
24,540 
16,661 
Accumulated Amortization
$ (13,891)
$ (11,620)
Intangibles, Net And Goodwill (Schedule of Estimated Aggregate Amortization Expense for Intangibles) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Intangibles, Net And Goodwill [Abstract]
 
Estimated aggregate amortization expense for the year ended March 31, 2018
$ 37,563 
Estimated aggregate amortization expense for the year ended March 30, 2019
35,660 
Estimated aggregate amortization expense for the year ended March 28, 2020
26,499 
Estimated aggregate amortization expense for the year ended March 27, 2021
15,895 
Estimated aggregate amortization expense for the year ended March 26, 2022
12,145 
Thereafter
$ 8,523 
Revolving Line of Credit (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Borrowing limit under the revolving credit facility
 
$ 250,000 
Line of credit facility leverage ratio covenant
3.00% 
 
Line of Credit Facility, Fixed Charges Ratio
1.25% 
 
Line of Credit Facility, Amount Outstanding
60,000 
160,439 
$300M Amended Wells Line of Credit [Member]
 
 
Borrowing limit under the revolving credit facility
$ 300,000 
 
Minimum [Member]
 
 
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage
0.20% 
 
Maximum [Member]
 
 
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage
0.30% 
 
Base Rate [Member] |
Minimum [Member]
 
 
Line of Credit Facility, Interest Rate Description
0% 
 
Base Rate [Member] |
Maximum [Member]
 
 
Line of Credit Facility, Interest Rate Description
.50% 
 
London Interbank Offered Rate (LIBOR) [Member] |
Minimum [Member]
 
 
Line of Credit Facility, Interest Rate Description
1.25% 
 
London Interbank Offered Rate (LIBOR) [Member] |
Maximum [Member]
 
 
Line of Credit Facility, Interest Rate Description
2.00% 
 
Restructuring Costs (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 28, 2015
Restructuring Costs [Abstract]
 
Restructuring and other, net
$ 1,455 
Postretirement Benefit Plans (Details) (USD $)
3 Months Ended 12 Months Ended
Jun. 25, 2016
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Accrued salaries and benefits
 
$ 40,190,000 
$ 21,239,000 
 
Number of Pension Plan Participants Offered ETV
 
49 
 
 
Number of Pension Plan Participants Accepting ETV
 
 
 
Pension Contributions
500,000 
500,000 
 
 
ETV pension expense
 
400,000 
 
 
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate
 
2.70% 
3.60% 
3.20% 
Maximum employer contribution matching percentage
 
50.00% 
 
 
Percentage of employees' annual contribution that qualifies for employer contribution matching
 
8.00% 
 
 
Employee matching contribution expense
 
5,500,000 
4,300,000 
2,500,000 
Pension Plan [Member]
 
 
 
 
Accrued salaries and benefits
 
 
$ 500,000 
 
Postretirement Benefit Plans (Schedule of Benefit Obligation, Fair Value of Plan Assets and Funded Status) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Postretirement Benefit Plans [Abstract]
 
 
 
Defined Benefit Plan, Benefit Obligation, Beginning Balance
$ 23,968 
$ 27,091 
 
Expenses
 
15 
16 
Interest cost
759 
821 
544 
Plan settlements
(4,517)
 
 
Benefits paid and expenses
(264)
(1,095)
 
Change in foreign currency exchange rate
(2,763)
(1,221)
 
Actuarial (gain) / loss
3,940 
(1,643)
 
Defined Benefit Plan, Benefit Obligation, Ending Balance
21,123 
23,968 
27,091 
Defined Benefit Plan, Fair Value of Plan Assets, Beginning Balance
25,688 
26,735 
 
Actual return on plan assets
3,933 
(155)
 
Employer contributions
990 
1,409 
 
Plan settlements
(5,243)
 
 
Change in foreign currency exchange rate
(2,961)
(1,206)
 
Defined Benefit Plan, Fair Value of Plan Assets, Ending Balance
22,143 
25,688 
26,735 
Funded status of Scheme at end of year
1,020 
1,720 
 
Net Periodic Benefit Cost, Total
$ 607 
$ (327)
$ (232)
Postretirement Benefit Plans (Schedule of Net Periodic Pension Expense) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Postretirement Benefit Plans [Abstract]
 
 
 
Expenses
 
$ 15 
$ 16 
Interest cost
759 
821 
544 
Expected return on plan assets
(1,126)
(1,212)
(792)
Settlement (gain) loss
1,063 
 
 
Amortization of actuarial loss
(89)
49 
 
Defined Benefit Plan, Net Periodic Benefit Cost, Total
$ 607 
$ (327)
$ (232)
Postretirement Benefit Plans (Weighted-Average Assumptions Used in Net Periodic Benefit Costs) (Details)
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Postretirement Benefit Plans [Abstract]
 
 
 
Discount rate
3.60% 
3.20% 
4.00% 
Expected long-term return on plan assets
4.93% 
4.65% 
5.36% 
Postretirement Benefit Plans (Schedule of Fair Value of Pension Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Mar. 26, 2016
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets, Fair Value Disclosure
$ 22,143 
$ 25,688 
Cash [Member] |
Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets, Fair Value Disclosure
160 
42 
Pension Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets, Fair Value Disclosure
21,983 
25,646 
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets, Fair Value Disclosure
160 
42 
Quoted Prices In Active Markets For Identical Assets Level 1 [Member] |
Cash [Member] |
Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets, Fair Value Disclosure
160 
42 
Significant Other Observable Inputs Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets, Fair Value Disclosure
21,983 
25,646 
Significant Other Observable Inputs Level 2 [Member] |
Pension Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Assets, Fair Value Disclosure
$ 21,983 
$ 25,646 
Postretirement Benefit Plans (Amounts Recognized in AOCI Not Yet Recognized in Net Periodic Benefit Cost) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Postretirement Benefit Plans [Abstract]
 
 
 
Net actuarial gain
$ (79)
$ 2,660 
$ (1,625)
Accumulated other comprehensive income, before tax
$ (79)
 
 
Postretirement Benefit Plans (Schedule of Future Benefit Payments) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Postretirement Benefit Plans [Abstract]
 
2018
$ 266 
2019
411 
2020
481 
2021
472 
2022
415 
Thereafter
$ 2,765 
Postretirement Benefit Plans (Schedule of Allocation of Plan Assets) (Details)
Mar. 25, 2017
Mar. 26, 2016
Equity securities [Member]
 
 
Defined Benefit Plan, Actual Plan Asset Allocations
33.00% 
32.00% 
Corporate debt securities [Member]
 
 
Defined Benefit Plan, Actual Plan Asset Allocations
48.00% 
47.00% 
Diversified growth [Member]
 
 
Defined Benefit Plan, Actual Plan Asset Allocations
19.00% 
21.00% 
Equity Compensation (Narrative) (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 25, 2017
Dec. 24, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Stock compensation expense
 
 
 
 
$ 39,593,000 
$ 33,506,000 
$ 37,549,000 
Share based compensation, excess tax benefits, amount
1,900,000 
10,800,000 
8,000,000 
2,200,000 
22,900,000 
 
 
Net amount received from exercise of stock options granted
 
 
 
 
16,400,000 
6,500,000 
5,200,000 
Number, exercised
 
 
 
 
1,382,000 
773,000 
696,000 
Total intrinsic value of stock options exercised
 
 
 
 
52,200,000 
19,700,000 
12,800,000 
Shares reserved for issuance under the Stock Option Plans
13,300,000 
 
 
 
13,300,000 
 
 
Fair value of options that became vested during the period
 
 
 
 
3,800,000 
3,400,000 
4,400,000 
Number of options exercisable
1,128,000 
 
 
 
1,128,000 
2,200,000 
 
Shares available for grant reduction ratio
 
 
 
 
1.5 
 
 
Number of Shares, Vested
 
 
 
 
1,000,000 
1,000,000 
 
Shares withheld to satisfy tax withholding requirements
 
 
 
 
300,000 
200,000 
 
Employee Stock Option [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Compensation costs related to equity incentive plans, weighted average recognition period
 
 
 
 
1 year 3 months 15 days 
 
 
Restricted Stock Awards [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Fair value of awards vested
 
 
 
 
 
 
86,000 
Number of Shares, Vested
 
 
 
 
 
Restricted Stock Units (RSUs) [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Compensation costs related to equity incentive plans, weighted average recognition period
 
 
 
 
1 year 5 months 12 days 
 
 
Vesting percentage
 
 
 
 
100.00% 
 
 
Intrinsic value of awards outstanding
179,900,000 
 
 
 
179,900,000 
 
 
Fair value of awards vested
 
 
 
 
25,500,000 
32,200,000 
 
Number of Shares, Vested
 
 
 
 
1,032,000 
992,000 
1,224,000 
Payment to taxing authorities
 
 
 
 
14,100,000 
6,900,000 
 
Cash received from cash settled shares
 
 
 
 
100,000 
100,000 
 
Market Stock Unit (MSUs) [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Share-based compensation, vesting period
 
 
 
 
3 years 
 
 
Compensation costs related to equity incentive plans, weighted average recognition period
 
 
 
 
1 year 8 months 12 days 
 
 
Intrinsic value of awards outstanding
10,800,000 
 
 
 
10,800,000 
 
 
RSAs RSUs and MSUs [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Stock compensation expense
 
 
 
 
35,500,000 
30,300,000 
34,000,000 
Options RSUs and MSUs [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Compensation costs related to equity incentive plans not yet recognized
$ 75,200,000 
 
 
 
$ 75,200,000 
 
 
Maximum [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Share-based compensation, vesting period
 
 
 
 
4 years 
 
 
Maximum [Member] |
Employee Stock Option [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Share-based compensation, vesting period
 
 
 
 
4 years 
 
 
Share based compensation, period from grant date options are exercisable
 
 
 
 
10 years 
 
 
Maximum [Member] |
Restricted Stock Units (RSUs) [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Share-based compensation, vesting period
 
 
 
 
3 years 
 
 
Minimum [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Share-based compensation, vesting period
 
 
 
 
0 years 
 
 
Minimum [Member] |
Employee Stock Option [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Share-based compensation, vesting period
 
 
 
 
0 years 
 
 
Minimum [Member] |
Restricted Stock Units (RSUs) [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Share-based compensation, vesting period
 
 
 
 
1 year 
 
 
Weighted Average Estimated Fair Value Using Black-Scholes Option Valuation Model [Member]
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Fair value of stock options granted under the Black-Scholes valuation model
 
 
 
 
$ 22.84 
$ 12.58 
$ 7.26 
Equity Compensation (Summary of Activity in Total Stock Available for Grant) (Details)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Equity Compensation [Abstract]
 
 
 
Shares available for grant, beginning balance
6,287 
3,896 
3,547 
Shares Available for Grant, Shares Added
 
4,900 
3,300 
Shares available for grant, granted
(1,719)
(2,676)
(3,181)
Shares available for grant, forfeited
124 
167 
230 
Shares available for grant, ending balance
4,692 
6,287 
3,896 
Equity Compensation (Summary of Effect of Stock-Based Compensation on Cost of Goods Sold) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Effect on pre-tax income
$ 39,593 
$ 33,506 
$ 37,549 
Income Tax Benefit
(12,482)
(10,306)
(11,467)
Total share based compensation expense (net of taxes)
27,111 
23,200 
26,082 
Share based compensation effects on basic earnings per share
$ 0.43 
$ 0.37 
$ 0.42 
Share based compensation effects on diluted earnings per share
$ 0.41 
$ 0.35 
$ 0.40 
Cost of Sales [Member]
 
 
 
Effect on pre-tax income
1,071 
1,145 
747 
Research and Development [Member]
 
 
 
Effect on pre-tax income
21,186 
17,173 
11,222 
Selling, General and Administrative [Member]
 
 
 
Effect on pre-tax income
$ 17,336 
$ 15,188 
$ 25,580 
Equity Compensation (Schedule of Fair Value of Stock Option Grants) (Details)
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Maximum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected stock price volatility
47.66% 
45.07% 
42.12% 
Risk-free interest rate
1.13% 
1.05% 
0.91% 
Expected term (in years)
2 years 9 months 15 days 
2 years 11 months 19 days 
2 years 10 months 13 days 
Minimum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected stock price volatility
 
40.13% 
38.79% 
Risk-free interest rate
 
0.94% 
0.49% 
Expected term (in years)
 
2 years 8 months 19 days 
2 years 1 month 24 days 
Equity Compensation (Schedule of Stock Option Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Equity Compensation [Abstract]
 
 
 
Number, beginning balance
2,925 
3,333 
3,725 
Number, granted
215 
387 
310 
Number, exercised
(1,382)
(773)
(696)
Number, forfeited
 
 
(5)
Number, expired
 
(22)
(1)
Number, ending balance
1,758 
2,925 
3,333 
Weighted average exercise price, beginning balance
$ 17.96 
$ 14.31 
$ 12.42 
Weighted average exercise price, options granted
$ 54.65 
$ 31.39 
$ 21.69 
Weighted average exercise price, options exercised
$ 11.87 
$ 8.46 
$ 7.47 
Weighted average exercise price, options forfeited
 
 
$ 19.94 
Weighted average exercise price, options expired
 
$ 35.41 
$ 4.65 
Weighted average exercise price, ending balance
$ 27.25 
$ 17.96 
$ 14.31 
Equity Compensation (Summary of Outstanding Options Vesting, Expected to Vest, or Exercisable) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Equity Compensation [Abstract]
 
 
Number of Options, Vested and expected to vest
1,757 
 
Weighted Average Exercise Price, Vested and expected to vest
$ 27.24 
 
Weighted Average Remaining Contractual Term, Vested and expected to vest
6 years 4 months 24 days 
 
Aggregate Intrinsic Value, Vested and expected to vest
$ 57,674 
 
Number of Options, Exercisable
1,128 
2,200 
Weighted Average Exercise Price, Exercisable
$ 21.77 
 
Weighted Average Remaining Contractual Term, Exercisable
5 years 2 months 5 days 
 
Aggregate Intrinsic Value, Exercisable
$ 43,196 
 
Equity Compensation (Summary of Outstanding and Exercisable Options) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Options Outstanding, Number
1,758 
Options Outstanding, Weighted Average Remaining Contractual Life
6 years 4 months 24 days 
Options Outstanding, Weighted Average Exercise Price
$ 27.25 
Options Exercisable, Number Exercisable
1,128 
Options Exercisable, Weighted Average Exercise Price
$ 21.77 
$2.90 - $15.41 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices, lower limit
$ 2.90 
Range of Exercise Prices, upper limit
$ 15.41 
Options Outstanding, Number
371 
Options Outstanding, Weighted Average Remaining Contractual Life
3 years 3 months 29 days 
Options Outstanding, Weighted Average Exercise Price
$ 11.01 
Options Exercisable, Number Exercisable
371 
Options Exercisable, Weighted Average Exercise Price
$ 11.01 
$16.21 - $20.37 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices, lower limit
$ 16.21 
Range of Exercise Prices, upper limit
$ 20.37 
Options Outstanding, Number
328 
Options Outstanding, Weighted Average Remaining Contractual Life
5 years 9 months 22 days 
Options Outstanding, Weighted Average Exercise Price
$ 18.63 
Options Exercisable, Number Exercisable
242 
Options Exercisable, Weighted Average Exercise Price
$ 18.02 
$20.40 - $24.14 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices, lower limit
$ 20.40 
Range of Exercise Prices, upper limit
$ 24.14 
Options Outstanding, Number
265 
Options Outstanding, Weighted Average Remaining Contractual Life
6 years 5 months 23 days 
Options Outstanding, Weighted Average Exercise Price
$ 23.29 
Options Exercisable, Number Exercisable
203 
Options Exercisable, Weighted Average Exercise Price
$ 23.30 
$31.25 - $31.25 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices, lower limit
$ 31.25 
Range of Exercise Prices, upper limit
$ 31.25 
Options Outstanding, Number
331 
Options Outstanding, Weighted Average Remaining Contractual Life
8 years 7 months 10 days 
Options Outstanding, Weighted Average Exercise Price
$ 31.25 
Options Exercisable, Number Exercisable
91 
Options Exercisable, Weighted Average Exercise Price
$ 31.25 
$32.29 - $38.99 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices, lower limit
$ 32.29 
Range of Exercise Prices, upper limit
$ 38.99 
Options Outstanding, Number
248 
Options Outstanding, Weighted Average Remaining Contractual Life
5 years 11 months 19 days 
Options Outstanding, Weighted Average Exercise Price
$ 38.00 
Options Exercisable, Number Exercisable
221 
Options Exercisable, Weighted Average Exercise Price
$ 38.60 
$54.65 - $54.65 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Range of Exercise Prices, lower limit
$ 54.65 
Range of Exercise Prices, upper limit
$ 54.65 
Options Outstanding, Number
215 
Options Outstanding, Weighted Average Remaining Contractual Life
9 years 7 months 10 days 
Options Outstanding, Weighted Average Exercise Price
$ 54.65 
Equity Compensation (Summary of Restricted Stock Award Activity) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number of Shares, Vested
(1,000,000)
(1,000,000)
 
Restricted Stock Awards [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number of Shares, Vested
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value
 
 
$ 86 
Market Stock Unit (MSUs) [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number of Shares, Balance
125,000 
35,000 
 
Number of Shares, Granted
55,000 
90,000 
35,000 
Number of Shares, Balance
180,000 
125,000 
35,000 
Weighted Average Grant Date Fair Value (per share), Beginning Balance
$ 34.85 
$ 22.00 
 
Weighted Average Grant Date Fair Value (per share), Granted
$ 75.58 
$ 39.86 
$ 22.00 
Weighted Average Grant Date Fair Value (per share), Ending Balance
$ 47.30 
$ 34.85 
$ 22.00 
Equity Compensation (Summary of Restricted Stock Unit Activity) (Details) (USD $)
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number of Shares, Vested
(1,000,000)
(1,000,000)
 
Restricted Stock Units (RSUs) [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number of Shares, Balance
3,163,000 
2,821,000 
2,309,000 
Number of Shares, Granted
947,000 
1,437,000 
1,887,000 
Number of Shares, Vested
(1,032,000)
(992,000)
(1,224,000)
Number of Shares, Forfeited
(83,000)
(103,000)
(151,000)
Number of Shares, Balance
2,995,000 
3,163,000 
2,821,000 
Weighted Average Grant Date Fair Value (per share), Beginning Balance
$ 26.14 
$ 25.57 
$ 25.26 
Weighted Average Grant Date Fair Value (per share), Granted
$ 52.40 
$ 31.51 
$ 22.04 
Weighted Average Grant Date Fair Value (per share), Vested
$ 24.67 
$ 32.48 
$ 19.52 
Weighted Average Grant Date Fair Value (per share), Forfeited
$ 28.40 
$ 24.75 
$ 26.17 
Weighted Average Grant Date Fair Value (per share), Ending Balance
$ 34.91 
$ 26.14 
$ 25.57 
Equity Compensation (Summary of Restricted Stock Units Vested and Expected to Vest) (Details) (Restricted Stock Units (RSUs) [Member], USD $)
Share data in Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Shares, Vested and expected to vest
2,870 
Weighted Average Fair Value, Vested and expected to vest
$ 34.64 
Weighted Average Remaining Contractual Term, Vested and expected to vest
1 year 5 months 5 days 
Equity Compensation (Schedule of Fair Value Market Stock Units Assumptions) (Details)
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Market Stock Unit (MSUs) [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected stock price volatility
47.66% 
45.07% 
 
Risk-free interest rate
0.98% 
1.16% 
 
Expected term (in years)
3 years 
3 years 
 
Maximum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected stock price volatility
47.66% 
45.07% 
42.12% 
Risk-free interest rate
1.13% 
1.05% 
0.91% 
Expected term (in years)
2 years 9 months 15 days 
2 years 11 months 19 days 
2 years 10 months 13 days 
Minimum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected stock price volatility
 
40.13% 
38.79% 
Risk-free interest rate
 
0.94% 
0.49% 
Expected term (in years)
 
2 years 8 months 19 days 
2 years 1 month 24 days 
Equity Compensation (Summary of Market Stock Unit Activity) (Details) (USD $)
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number of Shares, Vested
(1,000,000)
(1,000,000)
 
Market Stock Unit (MSUs) [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number of Shares, Balance
125,000 
35,000 
 
Number of Shares, Granted
55,000 
90,000 
35,000 
Number of Shares, Balance
180,000 
125,000 
35,000 
Weighted Average Grant Date Fair Value (per share), Beginning Balance
$ 34.85 
$ 22.00 
 
Weighted Average Grant Date Fair Value (per share), Granted
$ 75.58 
$ 39.86 
$ 22.00 
Weighted Average Grant Date Fair Value (per share), Ending Balance
$ 47.30 
$ 34.85 
$ 22.00 
Market Stock Unit (MSUs) [Member] |
Weighted Average Estimated Fair Value Using Monte Carlo Simulation Model [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted Average Grant Date Fair Value (per share), Granted
$ 75.58 
 
 
Equity Compensation (Summary of Market Stock Units Expected to Vest) (Details) (Market Stock Unit (MSUs) [Member], USD $)
Share data in Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Market Stock Unit (MSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Shares, Vested and expected to vest
171 
Weighted Average Fair Value, Vested and expected to vest
$ 46.89 
Weighted Average Remaining Contractual Term, Vested and expected to vest
1 year 8 months 9 days 
Commitments and Contingencies (Narrative) (Details) (USD $)
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Purchase Commitment, Excluding Long-term Commitment [Line Items]
 
 
 
Rent expense
$ 8,200,000 
$ 5,200,000 
$ 4,000,000 
Sublease rental income
400,000 
300,000 
100,000 
Total property, plant and equipment
290,096,000 
252,173,000 
 
Accumulated depreciation
121,957,000 
89,517,000 
 
Assets Held under Capital Leases [Member]
 
 
 
Purchase Commitment, Excluding Long-term Commitment [Line Items]
 
 
 
Total property, plant and equipment
 
1,000,000 
 
Accumulated depreciation
 
300,000 
 
Foundry Commitments [Member]
 
 
 
Purchase Commitment, Excluding Long-term Commitment [Line Items]
 
 
 
Non-cancelable purchase commitments
182,300,000 
 
 
Assembly Purchase Order Commitments [Member]
 
 
 
Purchase Commitment, Excluding Long-term Commitment [Line Items]
 
 
 
Non-cancelable purchase commitments
3,600,000 
 
 
Outside Test Services Commitments [Member]
 
 
 
Purchase Commitment, Excluding Long-term Commitment [Line Items]
 
 
 
Non-cancelable purchase commitments
14,500,000 
 
 
Long-term Other Purchase Obligation [Member]
 
 
 
Purchase Commitment, Excluding Long-term Commitment [Line Items]
 
 
 
Non-cancelable purchase commitments
$ 21,600,000 
 
 
Commitments and Contingencies (Schedule of Future Rental Commitments) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Rental Commitments [Line Items]
 
2018
$ 6,755 
2019
10,078 
2020
9,655 
2021
9,445 
2022
9,172 
Thereafter
38,644 
Total minimum lease payment
83,749 
Facilities [Member]
 
Rental Commitments [Line Items]
 
2018
7,074 
2019
10,354 
2020
9,811 
2021
9,580 
2022
9,313 
Thereafter
39,071 
Total minimum lease payment
85,203 
Subleases [Member]
 
Rental Commitments [Line Items]
 
2018
386 
2019
391 
2020
266 
2021
245 
2022
251 
Thereafter
859 
Total minimum lease payment
2,398 
Net Facilities Commitments [Member]
 
Rental Commitments [Line Items]
 
2018
6,688 
2019
9,963 
2020
9,545 
2021
9,335 
2022
9,062 
Thereafter
38,212 
Total minimum lease payment
82,805 
Equipment Commitments [Member]
 
Rental Commitments [Line Items]
 
2018
67 
2019
115 
2020
110 
2021
110 
2022
110 
Thereafter
432 
Total minimum lease payment
$ 944 
Stockholder's Equity (Details) (USD $)
12 Months Ended 18 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Mar. 25, 2017
October 2015 Repurchase Program [Member]
Mar. 25, 2017
Series A Participating Preferred Stock [Member]
Share repurchase program, amount approved
 
 
 
$ 200,000,000 
 
Repurchase and retirement of common stock, shares
500,000 
 
 
800,000 
 
Repurchase and retirement of common stock, value
15,439,000 
60,503,000 
10,534,000 
24,200,000 
 
Average cost per share repurchased
32.13 
 
 
31.93 
 
Remaining amount available for share repurchases under stock repurchase program
 
 
 
$ 175,800,000 
 
Preferred stock, shares authorized
5,000,000 
5,000,000 
 
 
5,000,000 
Preferred Stock, shares issued
 
 
 
 
Accumulated Other Comprehensive Loss (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive loss
$ 332 
$ (2,110)
 
Foreign currency translation (gain) loss
(826)
294 
 
Unrealized (gain) loss on marketable securities
47 
(24)
107 
Actuarial (gain) loss on pension plan
(79)
2,660 
(1,625)
Reclassification of actuarial (gain) loss to net income
(89)
49 
 
Tax effect
42 
(537)
 
Ending balance, accumulated other comprehensive loss
(573)
332 
(2,110)
Foreign Currency [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive loss
(476)
(770)
 
Foreign currency translation (gain) loss
(826)
294 
 
Ending balance, accumulated other comprehensive loss
(1,302)
(476)
 
Unrealized Gains (Losses) on Securities [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive loss
(62)
(47)
 
Unrealized (gain) loss on marketable securities
47 
(24)
 
Tax effect
(16)
 
Ending balance, accumulated other comprehensive loss
(31)
(62)
 
Actuarial Gains (Losses) on Pension Plan [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive loss
870 
(1,293)
 
Actuarial (gain) loss on pension plan
(79)
2,660 
 
Reclassification of actuarial (gain) loss to net income
(89)
49 
 
Tax effect
58 
(546)
 
Ending balance, accumulated other comprehensive loss
$ 760 
$ 870 
 
Income Taxes (Narrative) (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 25, 2017
Dec. 24, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Income Taxes [Line Items]
 
 
 
 
 
 
 
Share based compensation, excess tax benefits, amount
$ 1,900,000 
$ 10,800,000 
$ 8,000,000 
$ 2,200,000 
$ 22,900,000 
 
 
Increase (decrease) in valuation allowance
 
 
 
 
1,800,000 
 
 
Net operating loss included in deferred tax assets
6,294,000 
 
 
 
6,294,000 
24,592,000 
 
Alternative minimum tax operating loss carryforwards
8,500,000 
 
 
 
8,500,000 
 
 
Undistributed earnings in foreign subsidiaries
201,300,000 
 
 
 
201,300,000 
 
 
Unrecognized deferred tax liability on undistributed earnings
65,500,000 
 
 
 
65,500,000 
 
 
Ending balance
30,858,000 
 
 
 
30,858,000 
18,796,000 
 
Decrease in Unrecognized Tax Benefits is Reasonably Possible
2,300,000 
 
 
 
2,300,000 
 
 
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions
 
 
 
 
12,127,000 
12,592,000 
 
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions
 
 
 
 
 
6,204,000 
 
Interest and penalties incurred during period
 
 
 
 
200,000 
Federal [Member]
 
 
 
 
 
 
 
Income Taxes [Line Items]
 
 
 
 
 
 
 
Net operating loss carryforwards
12,900,000 
 
 
 
12,900,000 
 
 
State [Member]
 
 
 
 
 
 
 
Income Taxes [Line Items]
 
 
 
 
 
 
 
Net operating loss carryforwards
44,700,000 
 
 
 
44,700,000 
 
 
Research Tax Credit Carryforward [Member] |
Federal [Member]
 
 
 
 
 
 
 
Income Taxes [Line Items]
 
 
 
 
 
 
 
Tax credit carryforward
4,000,000 
 
 
 
4,000,000 
 
 
Research Tax Credit Carryforward [Member] |
State [Member]
 
 
 
 
 
 
 
Income Taxes [Line Items]
 
 
 
 
 
 
 
Tax credit carryforward
$ 15,400,000 
 
 
 
$ 15,400,000 
 
 
Income Taxes (Summary of Income Before Income Taxes) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Income Taxes [Abstract]
 
 
 
United States
$ 137,654 
$ 108,133 
$ 133,295 
Non-U.S.
177,393 
67,856 
(41,746)
Income before income taxes
$ 315,047 
$ 175,989 
$ 91,549 
Income Taxes (Summary of Provision (Benefit) for Income Taxes) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Sep. 24, 2016
Jun. 25, 2016
Sep. 24, 2016
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Income Taxes [Line Items]
 
 
 
 
 
 
Total current tax provision
 
 
 
$ 36,174 
$ 29,016 
$ 42,610 
Total deferred tax provision (benefit)
 
 
 
17,664 
23,343 
(6,239)
Total provision for income taxes
16,634 
3,598 
20,232 
53,838 
52,359 
36,371 
U.S [Member]
 
 
 
 
 
 
Income Taxes [Line Items]
 
 
 
 
 
 
Total current tax provision
 
 
 
28,940 
28,313 
42,165 
Total deferred tax provision (benefit)
 
 
 
2,576 
18,242 
2,136 
Non-U.S [Member]
 
 
 
 
 
 
Income Taxes [Line Items]
 
 
 
 
 
 
Total current tax provision
 
 
 
7,234 
703 
445 
Total deferred tax provision (benefit)
 
 
 
$ 15,088 
$ 5,101 
$ (8,375)
Income Taxes (Summary of Provision (Benefit) for Income Taxes, Statutory Federal Rate Pretax Income Reconciliation) (Details)
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Income Taxes [Abstract]
 
 
 
Expected income tax provision at the U.S. federal statutory rate
35.00% 
35.00% 
35.00% 
Foreign taxes at different rates
(8.60%)
(0.60%)
7.30% 
Research and development tax credits
(1.80%)
(5.60%)
(3.60%)
Stock based compensation
(7.30%)
 
 
Nondeductible expenses
 
0.10% 
2.30% 
Other
(0.20%)
0.90% 
(1.30%)
Provision for income taxes
17.10% 
29.80% 
39.70% 
Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Mar. 26, 2016
Deferred tax assets:
 
 
Accrued expenses and allowances
$ 9,002 
$ 3,761 
Net operating loss carryforwards
6,294 
24,592 
Research and development tax credit carryforwards
13,977 
9,649 
Stock based compensation
17,356 
16,071 
Other
9,141 
9,976 
Total deferred tax assets
55,770 
64,049 
Valuation allowance for deferred tax assets
(12,570)
(10,773)
Net deferred tax assets
43,200 
53,276 
Deferred tax liabilities:
 
 
Depreciation and amortization
13,837 
13,607 
Acquisition intangibles
16,301 
21,844 
Total deferred tax liabilities
30,138 
35,451 
Total net deferred tax assets
$ 13,062 
$ 17,825 
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Mar. 25, 2017
Mar. 26, 2016
Income Tax Uncertainties [Abstract]
 
 
Beginning balance
$ 18,796 
 
Additions based on tax positions related to the current year
12,127 
12,592 
Additions based on tax positions related to prior years
 
6,204 
Reductions based on tax positions related to the prior years
(65)
 
Ending balance
$ 30,858 
$ 18,796 
Segment Information (Narrative) (Details)
12 Months Ended
Mar. 25, 2017
segment
Segment Information [Abstract]
 
Number of reportable segments
Segment Information (Schedule of Segment Revenue from Product Lines) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 25, 2017
Dec. 24, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 26, 2016
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 327,864 
$ 523,029 
$ 428,619 
$ 259,428 
$ 231,999 
$ 347,863 
$ 306,756 
$ 282,633 
$ 1,538,940 
$ 1,169,251 
$ 916,568 
Audio Products [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
1,373,848 
989,101 
740,301 
Non-Portable Audio and Other Products [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
$ 165,092 
$ 180,150 
$ 176,267 
Segment Information (Schedule of Sales by Geographic Location Based on the Sales Office Location) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 25, 2017
Dec. 24, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 26, 2016
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 327,864 
$ 523,029 
$ 428,619 
$ 259,428 
$ 231,999 
$ 347,863 
$ 306,756 
$ 282,633 
$ 1,538,940 
$ 1,169,251 
$ 916,568 
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
36,024 
73,889 
31,977 
European Union (Excluding United Kingdom) [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
9,809 
12,745 
13,629 
United Kingdom [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
5,741 
5,687 
2,805 
China [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
1,249,325 
823,843 
728,413 
Hong Kong [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
181,283 
10,647 
15,087 
Japan [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
11,819 
27,898 
14,353 
South Korea [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
2,403 
193,388 
69,327 
Taiwan [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
14,426 
9,249 
15,272 
Other Asia [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
16,585 
8,657 
10,991 
Other Non-U.S. Countries [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
$ 11,525 
$ 3,248 
$ 14,714 
Segment Information (Schedule of Property, Plant, and Equipment, Net, by Geographic Location) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 25, 2017
Mar. 26, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property and equipment, net
$ 168,139 
$ 162,656 
United States [Member]
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property and equipment, net
120,212 
125,674 
European Union (Excluding United Kingdom) [Member]
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property and equipment, net
793 
253 
United Kingdom [Member]
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property and equipment, net
44,981 
34,632 
China [Member]
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property and equipment, net
565 
483 
Hong Kong [Member]
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property and equipment, net
Japan [Member]
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property and equipment, net
243 
260 
South Korea [Member]
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property and equipment, net
202 
110 
Taiwan [Member]
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property and equipment, net
231 
180 
Other Asia [Member]
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property and equipment, net
50 
29 
Other Non-U.S. Countries [Member]
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property and equipment, net
$ 857 
$ 1,034 
Quarterly Results (Unaudited) (Schedule of Unaudited Quarterly Statement of Operations Data) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Mar. 25, 2017
Dec. 24, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 26, 2016
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Sep. 24, 2016
Mar. 25, 2017
Mar. 26, 2016
Mar. 28, 2015
Quarterly Results (Unaudited) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 327,864 
$ 523,029 
$ 428,619 
$ 259,428 
$ 231,999 
$ 347,863 
$ 306,756 
$ 282,633 
 
$ 1,538,940 
$ 1,169,251 
$ 916,568 
Gross profit
164,279 
255,152 
211,699 
126,685 
115,254 
164,911 
142,221 
132,454 
 
757,815 
554,840 
425,748 
Net income
$ 35,058 
$ 122,041 
$ 86,039 
$ 18,071 
$ 14,012 
$ 41,384 
$ 34,880 
$ 33,354 
$ 104,110 
$ 261,209 
$ 123,630 
$ 55,178 
Basic earnings per share
$ 0.55 
$ 1.91 
$ 1.37 
$ 0.29 
$ 0.22 
$ 0.65 
$ 0.55 
$ 0.53 
$ 1.66 
$ 4.12 
$ 1.96 
$ 0.88 
Diluted earnings per share
$ 0.52 
$ 1.83 
$ 1.30 
$ 0.27 
$ 0.21 
$ 0.63 
$ 0.53 
$ 0.50 
$ 1.58 
$ 3.92 
$ 1.87 
$ 0.85