CIRRUS LOGIC INC, 10-Q filed on 2/5/2018
Quarterly Report
Document and Entity Information
9 Months Ended
Dec. 30, 2017
Feb. 1, 2018
Document and Entity Information [Abstract]
Document Type
10-Q
Amendment Flag
false
Entity Registrant Name
CIRRUS LOGIC INC
Entity Central Index Key
0000772406
Entity Filer Category
Large Accelerated Filer
Document Period End Date
Dec. 30, 2017
Document Fiscal Year Focus
2018
Document Fiscal Period Focus
Q3
Current Fiscal Year End Date
--03-31
Entity Common Stock, Shares Outstanding
63,366,331
Consolidated Condensed Balance Sheets(USD $)
In Thousands, unless otherwise specified
Dec. 30, 2017
Mar. 25, 2017
Current assets:
Cash and cash equivalents
$226,640
$351,166
Marketable securities
12,822
99,813
Accounts receivable, net
217,619
119,974
Inventories
192,967
167,895
Prepaid assets
19,425
24,987
Other current assets
10,020
12,093
Total current assets
679,493
775,928
Long-term marketable securities
173,717
0
Property and equipment, net
187,143
168,139
Intangibles, net
126,183
135,188
Goodwill
288,481
286,767
Deferred tax assets
16,467
32,841
Other assets
21,841
14,607
Total assets
1,493,325
1,413,470
Current liabilities:
Accounts payable
116,274
73,811
Accrued salaries and benefits
29,543
40,190
Software license agreements
7,270
14,990
Other accrued liabilities
22,633
15,084
Total current liabilities
175,720
144,075
Long-term liabilities:
Debt
0
60,000
Software license agreements
7,357
3,146
Other long-term liabilities
98,882
54,557
Total long-term liabilities
106,239
117,703
Stockholders' equity:
Capital stock
1,301,800
1,259,279
Accumulated deficit
(92,402)
(107,014)
Accumulated other comprehensive income (loss)
1,968
(573)
Total stockholders' equity
1,211,366
1,151,692
Total liabilities and stockholders' equity
$1,493,325
$1,413,470
Consolidated Condensed Statements of Income(USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Dec. 30, 2017
Dec. 24, 2016
Dec. 30, 2017
Dec. 24, 2016
Income Statement [Abstract]
Net sales
$482,741
$523,029
$1,229,013
$1,211,076
Cost of sales
247,653
267,877
620,927
617,540
Gross profit
235,088
255,152
608,086
593,536
Operating expenses
Research and development
96,978
76,079
270,888
225,686
Selling, general and administrative
34,604
32,884
95,504
95,513
Total operating expenses
131,582
108,963
366,392
321,199
Income from operations
103,506
146,189
241,694
272,337
Interest income
1,191
415
3,125
978
Interest expense
(279)
(765)
(894)
(3,020)
Other income (expense)
322
(47)
(813)
(161)
Income before income taxes
104,740
145,792
243,112
270,134
Provision for income taxes
70,961
23,751
93,100
44,000
Net income
$33,779
$122,041
$149,991
$226,151
Basic earnings per share (in dollars per share)
$0.53
$1.91
$2.36
$3.59
Diluted earnings per share (in dollars per share)
$0.52
$1.83
$2.26
$3.41
Basic weighted average common shares outstanding (in shares)
63,453
63,837
63,655
63,025
Diluted weighted average common shares outstanding (in shares)
65,557
66,748
66,377
66,378
Consolidated Condensed Statements of Comprehensive Income(USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Dec. 30, 2017
Dec. 24, 2016
Dec. 30, 2017
Dec. 24, 2016
Statement of Comprehensive Income [Abstract]
Net income
$33,779
$122,041
$149,991
$226,151
Other comprehensive income (loss), before tax
Foreign currency translation gain (loss)
(811)
(500)
2,500
(247)
Unrealized gain (loss) on marketable securities
(842)
40
(794)
31
Actuarial gain (loss) on pension plan
0
(2,646)
792
(2,646)
Reclassification of actuarial gain to net income
0
(27)
0
(80)
Benefit for income taxes
194
461
43
481
Comprehensive income
$32,320
$119,369
$152,532
$223,690
Consolidated Condensed Statements of Cash Flows(USD $)
In Thousands, unless otherwise specified
9 Months Ended
Dec. 30, 2017
Dec. 24, 2016
Cash flows from operating activities:
Net income
$149,991
$226,151
Adjustments to reconcile net income to net cash generated by operating activities:
Depreciation and amortization
59,175
47,989
Stock compensation expense
36,208
28,708
Deferred income taxes
13,260
5,285
Loss on retirement or write-off of long-lived assets
461
424
Other non-cash adjustments
(3,692)
(2,547)
Net change in operating assets and liabilities:
Accounts receivable, net
(97,645)
(158,098)
Inventories
(25,072)
(12,113)
Other assets
8,289
(1,215)
Accounts payable and other accrued liabilities
27,361
96,673
Income taxes payable
44,687
13,636
Net cash generated by operating activities
213,023
244,893
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities
128,536
157,234
Purchases of available-for-sale marketable securities
(215,878)
(148,342)
Purchases of property, equipment and software
(38,606)
(26,380)
Investments in technology
(23,280)
(8,920)
Net cash used in investing activities
(149,228)
(26,408)
Cash flows from financing activities:
Principal payments on long-term revolver
(60,000)
(60,439)
Debt issuance costs
0
(2,152)
Payments on capital lease agreements
0
(699)
Issuance of common stock, net of shares withheld for taxes
6,315
14,869
Repurchase of stock to satisfy employee tax withholding obligations
(19,086)
(13,043)
Repurchase and retirement of common stock
(115,550)
(15,439)
Net cash used in financing activities
(188,321)
(76,903)
Net (decrease) increase in cash and cash equivalents
(124,526)
141,582
Cash and cash equivalents at beginning of period
351,166
168,793
Cash and cash equivalents at end of period
$226,640
$310,375
Basis of Presentation
Basis of Presentation
Basis of Presentation
    
The consolidated condensed financial statements have been prepared by Cirrus Logic, Inc. (“Cirrus Logic,” “we,” “us,” “our,” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”).  The accompanying unaudited consolidated condensed financial statements do not include complete footnotes and financial presentations.  As a result, these financial statements should be read along with the audited consolidated financial statements and notes thereto for the year ended March 25, 2017, included in our Annual Report on Form 10-K filed with the Commission on May 24, 2017.  In our opinion, the financial statements reflect all material adjustments, including normal recurring adjustments, necessary for a fair presentation of the financial position, operating results and cash flows for those periods presented.  The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect reported assets, liabilities, revenues and expenses, as well as disclosure of contingent assets and liabilities.  Actual results could differ from those estimates and assumptions.  Moreover, the results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the entire year.  Additionally, prior period amounts have been adjusted to conform to current year presentation.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements
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 U.S. 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. The process is substantially complete and the Company currently expects no material modifications to its financial statements upon adoption of this ASU. The standard may be adopted by full retrospective method, which applies retrospectively to each prior period presented, or by modified retrospective method with the cumulative effect adjustment recognized in beginning retained earnings as of the date of adoption. We anticipate using the modified retrospective adoption method.
 
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 on our financial statements.

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 the adoption of this ASU on our financial statements. 
    
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 early adopted this ASU in the first quarter of fiscal year 2018 with a $0.7 million impact to beginning retained earnings. 

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, and interim periods within those annual periods.  Early adoption is permitted under specific circumstances, including in an interim period, with prospective application. The Company adopted this ASU and applied the related guidance to an asset acquisition in the first quarter of fiscal year 2018.

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. 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, which will be applied prospectively.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU applies to any company that changes the terms or conditions of a share-based award, considered a modification. Modification accounting would be applied unless certain conditions were met related to the fair value of the award, the vesting conditions and the classification of the modified award. This ASU is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The standard should be applied prospectively to an award modified on or after the adoption date. The Company is currently evaluating the financial statement impact of this ASU.
Marketable Securities
Marketable Securities
Marketable Securities

The Company’s investments that have original maturities greater than 90 days have been classified as available-for-sale securities in accordance with U.S. GAAP.  Marketable securities are categorized on the consolidated condensed balance sheet as short- and long-term marketable securities, as appropriate.

The following table is a summary of available-for-sale securities at December 30, 2017 (in thousands):
As of December 30, 2017
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities
$
174,603

 
$
5

 
$
(787
)
 
$
173,821

Non-US government securities
11,819

 

 
(58
)
 
11,761

Certificates of deposit
500

 

 

 
500

Agency discount notes
459

 

 
(2
)
 
457

Total securities
$
187,381

 
$
5

 
$
(847
)
 
$
186,539


    
The Company typically invests in highly-rated securities with original maturities generally ranging from one to three years. The Company's specifically identified gross unrealized loss of $847 thousand related to securities with total amortized cost of approximately $181.0 million at December 30, 2017.  No securities have been in a continuous unrealized loss position for more than 12 months as of December 30, 2017. The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipated or actual changes in credit rating and duration management.  When evaluating an investment for other-than-temporary impairment, the Company reviews factors including the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, changes in market interest rates and whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s cost basis. As of December 30, 2017, the Company does not consider any of its investments to be other-than-temporarily impaired.   

The following table is a summary of available-for-sale securities at March 25, 2017 (in thousands):
໿
໿
As of March 25, 2017
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
(Net Carrying
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 related to securities with total amortized cost of approximately $99.9 million at March 25, 2017. Four securities had been in a continuous loss position for more than 12 months as of March 25, 2017 The gross unrealized loss on these securities was less than one percent of the position value.  The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipated or actual changes in credit rating and duration management.  When evaluating an investment for other-than-temporary impairment, the Company reviews factors including the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, changes in market interest rates and whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s cost basis. As of March 25, 2017, the Company did not consider any of its investments to be other-than-temporarily impaired.  

The cost and estimated fair value of available-for-sale securities by contractual maturities were as follows (in thousands):
໿

December 30, 2017
 
March 25, 2017

Amortized
 
Estimated
 
Amortized
 
Estimated

Cost
 
Fair Value
 
Cost
 
Fair Value
Within 1 year
$
12,846

 
$
12,822

 
$
99,868

 
$
99,813

After 1 year
174,535

 
173,717

 

 

Total
$
187,381

 
$
186,539

 
$
99,868

 
$
99,813



Fair Value of Financial Instruments
Fair Value of Financial Instruments
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 (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 debt securities, money market funds, and commercial paper and are reflected on our consolidated condensed balance sheets 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 pricing providers 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 prior acquisitions accounted for as a business combination, the Company reported contingent consideration based upon achievement of certain milestones.  This liability is classified as Level 3 and valued using a discounted cash flow model.  The assumptions used in preparing the discounted cash flow include discount rate estimates and cash flow amounts.  See additional details below. 

Prior to paying off the Company’s long-term revolving facility in the first quarter of the current fiscal year, interest was applied at a base rate plus applicable margin or LIBOR plus applicable margin and the fair value of the revolving facility approximated carrying value.

As of December 30, 2017 and March 25, 2017, the Company classified all investment portfolio and pension plan assets and liabilities 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 three months ending December 30, 2017

The following summarizes the fair value of our financial instruments at December 30, 2017, exclusive of pension plan assets and liabilities (in thousands):

Quoted Prices
in Active
Markets for
Identical
Assets
Level 1
 
Significant
Other
Observable
Inputs
Level 2
 
Significant
Unobservable
Inputs
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
 

 
 

 
 

 
 

Money market funds
$
186,393

 
$

 
$

 
$
186,393

 
 
 
 
 
 
 
 
Available-for-sale securities
 

 
 

 
 

 
 

Corporate debt securities
$

 
$
173,821

 
$

 
$
173,821

Non-US government securities


11,761




11,761

Certificates of deposit


500




500

Agency discount notes


457




457


$

 
$
186,539

 
$

 
$
186,539

Liabilities:
 

 
 

 
 

 
 

Other accrued liabilities
 

 
 

 
 

 
 

Contingent consideration
$

 
$

 
$
671

 
$
671


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

Quoted Prices
in Active
Markets for
Identical
Assets
Level 1
 
Significant
Other
Observable
Inputs
Level 2
 
Significant
Unobservable
Inputs
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
$

 
$

 
$
4,695

 
$
4,695



Contingent consideration
The following summarizes the fair value of the liability for contingent consideration at December 30, 2017:

Maximum Value if Milestones Achieved
(in thousands)
 
Estimated Discount Rate (%)
 
Fair Value
(in thousands)
Tranche B - 30 month earn out period
$
5,000

 
7.7
%
 
$
671


The valuation of contingent consideration was initially based on a weighted-average discounted cash flow 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.  An increase or decrease in the probability of achieving certain milestones within the earn out period would be accompanied by a directionally similar change in the fair value of the recorded liability.  A change in discount rate would be accompanied by a directionally opposite change in fair value.  Changes in the fair value of the recorded liability are reported in research and development expense in the consolidated condensed statements of income.  In the first quarter of the current fiscal year, changes in the probability of achieving certain milestones associated with Tranche B of the earn out were determined following a review of product shipment forecasts within the earn out period.  The revised estimates reduced the fair value of the liability as of December 30, 2017 as shown in the table below. The final amount of the liability will be determined at the end of the earn-out period early in the fourth quarter of the current fiscal year and necessary adjustments will be made at that time.
໿

Nine Months Ended

December 30,

2017

(in thousands)
Beginning balance
$
4,695

Adjustment to estimates (research and development expense)
(4,049
)
Fair value charge recognized in earnings (research and development expense)
25

Ending balance
$
671

Accounts Receivable, net
Accounts Receivable, net
Accounts Receivable, net

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

December 30,
 
March 25,

2017
 
2017
Gross accounts receivable
$
218,063

 
$
120,408

Allowance for doubtful accounts
(444
)
 
(434
)
Accounts receivable, net
$
217,619

 
$
119,974


    
The increase in accounts receivable in the third quarter of the current fiscal year is due to the timing of sales and seasonality compared to the fourth quarter of fiscal year 2017.
Inventories
Inventories
Inventories

Inventories are comprised of the following (in thousands):

December 30,
 
March 25,

2017
 
2017
Work in process
$
102,670

 
$
83,332

Finished goods
90,297

 
84,563


$
192,967

 
$
167,895



Revolving Credit Facilities
Revolving Credit Facilities
Revolving Credit Facilities

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 refinancing an existing credit facility 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.  The Amended Facility is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries (the “Subsidiary Guarantors”).  The Amended Facility 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 our 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 0.50% 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 fiscal 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. 
 
As of December 30, 2017, the Company had no amounts outstanding under the Amended Facility and was in compliance with all covenants under the Amended Credit Agreement.
Pension Plan
Pension Plan
Pension Plan

As a result of the fiscal year 2015 acquisition of Wolfson Microelectronics, 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 participants in the Scheme no longer accrue benefits and therefore the Company will not be required to make contributions in respect of future accruals. 

The Company elected to make a contribution of £1.5 million based on the latest triennial actuarial valuation in the first quarter of the current fiscal year. As of December 30, 2017, the Scheme is in a net funded position (included within “Other assets” in the consolidated condensed balance sheet).
Income Taxes
Income Taxes
Income Taxes
໿
Our provision for income taxes is based on estimated effective tax rates derived from an estimate of annual consolidated earnings before taxes, adjusted for nondeductible expenses, other permanent items and any applicable credits.

The following table presents the provision for income taxes (in thousands) and the effective tax rates:

Three Months Ended
Nine Months Ended

December 30,
 
December 24,
December 30,
 
December 24,

2017
 
2016
2017
 
2016
Income before income taxes
$
104,740

 
$
145,792

$
243,112

 
$
270,134

Provision for income taxes
$
70,961

 
$
23,751

$
93,121

 
$
43,983

Effective tax rate
67.7
%
 
16.3
%
38.3
%
 
16.3
%

Our income tax expense was $71.0 million and $23.8 million for the third quarter of fiscal year 2018 and 2017, respectively, resulting in effective tax rates of 67.7% and 16.3% for the third quarter of fiscal year 2018 and 2017, respectively.  Our income tax expense was $93.1 million and $44.0 million for the first nine months of fiscal year 2018 and 2017, respectively, resulting in effective tax rates of 38.3% and 16.3% for the first nine months of fiscal year 2018 and 2017, respectively.  Our effective tax rate for the third quarter and first nine months of fiscal year 2018 was higher than the federal statutory rate primarily due to the impact of the legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act") enacted in the current quarter and described below, partially offset by income earned in certain foreign jurisdictions that is taxed below the federal statutory rate and excess tax benefits from stock-based compensation. Our effective tax rate for the third quarter and first nine months of fiscal year 2017 was below the federal statutory rate primarily due to income earned in certain foreign jurisdictions taxed below the federal statutory rate, excess tax benefits from stock-based compensation, and the U.S. R&D tax credit.

The Tax Act was enacted on December 22, 2017. The Tax Act reduces the U.S. federal corporate income tax rate from 35.0% to 21.0%, restricts the deductibility of certain business expenses, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax-deferred and creates new taxes on certain foreign sourced earnings, among other provisions. The reduction in the U.S. federal corporate income tax rate is effective January 1, 2018. The rate change is administratively effective at the beginning of our fiscal year 2018, resulting in a blended U.S. federal corporate income tax rate of 31.6% for the annual period. This reduction in the statutory U.S. tax rate, when coupled with changes in the deductibility of certain business expenses that are also effective in fiscal year 2018, resulted in an immaterial change to the estimated annual effective tax rate as of the third quarter of fiscal year 2018. The discrete tax effects of the enactment of the Tax Act are described below.
As of the end of the third quarter of fiscal year 2018, we have not completed our accounting for, and have made a reasonable estimate of, the income tax effects of the Tax Act. We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21.0%. We are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of these balances or give rise to new deferred tax amounts. The provisional amount recorded as a discrete component of income tax expense in the current quarter related to the remeasurement of our deferred tax balances was $6.1 million of tax expense. In addition, we recorded a provisional amount of $51.8 million for our one-time transition tax liability as a discrete component of income tax expense. The one-time transition tax is based on our total post-1986 earnings and profits (E&P) that were previously deferred from U.S. income taxes, and is based in part on the amount of those earnings held in cash and other specified assets. The amount may change when we finalize the calculation of E&P and finalize the amounts held in cash or other specified assets on the applicable measurement date.
The Company records unrecognized tax benefits for the estimated risk associated with tax positions taken on tax returns.  At December 30, 2017, the Company had unrecognized tax benefits of $36.2 million, all of which would impact the effective tax rate if recognized.  The Company recorded a gross decrease of $2.3 million due to the lapse of the statute of limitations in the first quarter of fiscal year 2018 applicable to a tax deduction claimed on a prior year tax return, as well as gross increases to its current year unrecognized tax benefits of $2.2 million, $2.8 million, and $2.6 million for the first, second and third quarters of fiscal year 2018, respectively. The Company believes it is reasonably possible that the gross unrecognized tax benefits could decrease by approximately $1.1 million in the next 12 months due to the lapse of the statute of limitations applicable to a tax position taken on a prior year tax return. The Company’s total unrecognized tax benefits are classified as “Other long-term liabilities” in the consolidated condensed balance sheets.
 
The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes.  As of December 30, 2017, the balance of accrued interest and penalties, net of tax, was $0.8 million

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.

Net Income Per Share
Net Income Per Share
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 awards (including restricted stock units and market stock units).

The following table details the calculation of basic and diluted earnings per share for the three and nine months ended December 30, 2017 and December 24, 2016 (in thousands, except per share amounts):
໿

Three Months Ended
 
Nine Months Ended

December 30,
 
December 24,
 
December 30,
 
December 24,

2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Net income
$
33,779

 
$
122,041

 
$
149,991

 
$
226,151

Denominator:
 

 
 

 
 

 
 

Weighted average shares outstanding
63,453

 
63,837

 
63,655

 
63,025

Effect of dilutive securities
2,104

 
2,911

 
2,722

 
3,353

Weighted average diluted shares
65,557

 
66,748

 
66,377

 
66,378

Basic earnings per share
$
0.53

 
$
1.91

 
$
2.36

 
$
3.59

Diluted earnings per share
$
0.52

 
$
1.83

 
$
2.26

 
$
3.41



The weighted outstanding shares excluded from our diluted calculation for the three and nine months ended December 30, 2017 were 824 thousand and 273 thousand, respectively, as the shares were anti-dilutive. The weighted outstanding shares excluded from our diluted calculation for the three and nine months ended December 24, 2016 were 157 thousand and 208 thousand, respectively, as the shares were anti-dilutive.
Legal Matters
Legal Matters
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 in order 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.    

Based on current knowledge, management does not believe that there are any pending matters that could potentially have a material adverse effect on our business, financial condition, results of operations or cash flows.  However, we are engaged in various legal actions in the normal course of business.  There can be no assurances in light of the inherent uncertainties involved in any potential legal proceedings, some of which are beyond our control, and an adverse outcome in any legal proceeding could be material to our results of operations or cash flows for any particular reporting period.
Stockholders' Equity
Stockholders' Equity
Stockholders’ Equity

Common Stock 
 
The Company issued a net 0.6 million and 1.0 million shares of common stock during the three and nine month periods ending December 30, 2017, respectively, primarily pursuant to the Company's 2006 Stock Incentive Plan. The Company issued a net 0.9 million and 2.0 million shares of common stock during the three and nine month periods ending December 24, 2016, respectively, primarily pursuant to the Company’s 2006 Stock Incentive Plan.     

Share Repurchase Program   
    
Since inception, $139.8 million of the Company’s common stock has been repurchased under the Company’s 2015 $200 million share repurchase program, leaving $60.2 million available for repurchase under this plan as of December 30, 2017.  During the three and nine months ended December 30, 2017, respectively, the Company repurchased 0.4 million shares of its common stock, for $20.0 million, at an average cost of $55.01 per share and 2.0 million shares of its common stock, for $115.6 million, at an average cost of $58.89 per share.  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 December 30, 2017.
Segment Information
Segment Information
Segment Information

We determine our operating segments in accordance with 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, 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 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.
Revenues from our product lines are as follows (in thousands):

Three Months Ended
 
Nine Months Ended

December 30,
 
December 24,
 
December 30,
 
December 24,

2017
 
2016
 
2017
 
2016
Portable Audio Products
$
438,650

 
$
483,712

 
$
1,101,099

 
$
1,083,190

Non-Portable Audio and Other Products
44,091

 
39,317

 
127,914

 
127,886


$
482,741

 
$
523,029

 
$
1,229,013

 
$
1,211,076

Subsequent Event
Subsequent Event
Subsequent Event

In January 2018, the Board of Directors authorized the repurchase of up to an additional $200 million of the Company’s common stock, in addition to the $60.2 million remaining from the Board’s previous share repurchase authorization in October 2015, described above in Note 12.
Recently Issued Accounting Pronouncements (Policies)
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 U.S. 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. The process is substantially complete and the Company currently expects no material modifications to its financial statements upon adoption of this ASU. The standard may be adopted by full retrospective method, which applies retrospectively to each prior period presented, or by modified retrospective method with the cumulative effect adjustment recognized in beginning retained earnings as of the date of adoption. We anticipate using the modified retrospective adoption method.
 
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 on our financial statements.

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 the adoption of this ASU on our financial statements. 
    
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 early adopted this ASU in the first quarter of fiscal year 2018 with a $0.7 million impact to beginning retained earnings. 

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, and interim periods within those annual periods.  Early adoption is permitted under specific circumstances, including in an interim period, with prospective application. The Company adopted this ASU and applied the related guidance to an asset acquisition in the first quarter of fiscal year 2018.

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. 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, which will be applied prospectively.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU applies to any company that changes the terms or conditions of a share-based award, considered a modification. Modification accounting would be applied unless certain conditions were met related to the fair value of the award, the vesting conditions and the classification of the modified award. This ASU is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The standard should be applied prospectively to an award modified on or after the adoption date. The Company is currently evaluating the financial statement impact of this ASU.
The Company operates and tracks its results in one reportable segment, but reports revenue performance in two product lines, 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 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.
Marketable Securities (Tables)
The following table is a summary of available-for-sale securities at December 30, 2017 (in thousands):
As of December 30, 2017
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities
$
174,603

 
$
5

 
$
(787
)
 
$
173,821

Non-US government securities
11,819

 

 
(58
)
 
11,761

Certificates of deposit
500

 

 

 
500

Agency discount notes
459

 

 
(2
)
 
457

Total securities
$
187,381

 
$
5

 
$
(847
)
 
$
186,539

The following table is a summary of available-for-sale securities at March 25, 2017 (in thousands):
໿
໿
As of March 25, 2017
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities
33,350

 
$

 
$
(20
)
 
$
33,330

Commercial paper
66,518

 

 
(35
)
 
66,483

Total securities
$
99,868

 
$

 
$
(55
)
 
$
99,813

The cost and estimated fair value of available-for-sale securities by contractual maturities were as follows (in thousands):
໿

December 30, 2017
 
March 25, 2017

Amortized
 
Estimated
 
Amortized
 
Estimated

Cost
 
Fair Value
 
Cost
 
Fair Value
Within 1 year
$
12,846

 
$
12,822

 
$
99,868

 
$
99,813

After 1 year
174,535

 
173,717

 

 

Total
$
187,381

 
$
186,539

 
$
99,868

 
$
99,813

Fair Value of Financial Instruments (Tables)
The following summarizes the fair value of our financial instruments at December 30, 2017, exclusive of pension plan assets and liabilities (in thousands):

Quoted Prices
in Active
Markets for
Identical
Assets
Level 1
 
Significant
Other
Observable
Inputs
Level 2
 
Significant
Unobservable
Inputs
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
 

 
 

 
 

 
 

Money market funds
$
186,393

 
$

 
$

 
$
186,393

 
 
 
 
 
 
 
 
Available-for-sale securities
 

 
 

 
 

 
 

Corporate debt securities
$

 
$
173,821

 
$

 
$
173,821

Non-US government securities


11,761




11,761

Certificates of deposit


500




500

Agency discount notes


457




457


$

 
$
186,539

 
$

 
$
186,539

Liabilities:
 

 
 

 
 

 
 

Other accrued liabilities
 

 
 

 
 

 
 

Contingent consideration
$

 
$

 
$
671

 
$
671


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

Quoted Prices
in Active
Markets for
Identical
Assets
Level 1
 
Significant
Other
Observable
Inputs
Level 2
 
Significant
Unobservable
Inputs
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
$

 
$

 
$
4,695

 
$
4,695

The following summarizes the fair value of the liability for contingent consideration at December 30, 2017:

Maximum Value if Milestones Achieved
(in thousands)
 
Estimated Discount Rate (%)
 
Fair Value
(in thousands)
Tranche B - 30 month earn out period
$
5,000

 
7.7
%
 
$
671

The revised estimates reduced the fair value of the liability as of December 30, 2017 as shown in the table below. The final amount of the liability will be determined at the end of the earn-out period early in the fourth quarter of the current fiscal year and necessary adjustments will be made at that time.
໿

Nine Months Ended

December 30,

2017

(in thousands)
Beginning balance
$
4,695

Adjustment to estimates (research and development expense)
(4,049
)
Fair value charge recognized in earnings (research and development expense)
25

Ending balance
$
671

Accounts Receivable, net (Tables)
Components of Accounts Receivable, net
The following are the components of accounts receivable, net (in thousands):

December 30,
 
March 25,

2017
 
2017
Gross accounts receivable
$
218,063

 
$
120,408

Allowance for doubtful accounts
(444
)
 
(434
)
Accounts receivable, net
$
217,619

 
$
119,974

Inventories (Tables)
Schedule of Inventories
Inventories are comprised of the following (in thousands):

December 30,
 
March 25,

2017
 
2017
Work in process
$
102,670

 
$
83,332

Finished goods
90,297

 
84,563


$
192,967

 
$
167,895

Income Taxes (Tables)
Schedule of Provision for Income Taxes and Effective Tax Rates
The following table presents the provision for income taxes (in thousands) and the effective tax rates:

Three Months Ended
Nine Months Ended

December 30,
 
December 24,
December 30,
 
December 24,

2017
 
2016
2017
 
2016
Income before income taxes
$
104,740

 
$
145,792

$
243,112

 
$
270,134

Provision for income taxes
$
70,961

 
$
23,751

$
93,121

 
$
43,983

Effective tax rate
67.7
%
 
16.3
%
38.3
%
 
16.3
%
Net Income Per Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
The following table details the calculation of basic and diluted earnings per share for the three and nine months ended December 30, 2017 and December 24, 2016 (in thousands, except per share amounts):
໿

Three Months Ended
 
Nine Months Ended

December 30,
 
December 24,
 
December 30,
 
December 24,

2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Net income
$
33,779

 
$
122,041

 
$
149,991

 
$
226,151

Denominator:
 

 
 

 
 

 
 

Weighted average shares outstanding
63,453

 
63,837

 
63,655

 
63,025

Effect of dilutive securities
2,104

 
2,911

 
2,722

 
3,353

Weighted average diluted shares
65,557

 
66,748

 
66,377

 
66,378

Basic earnings per share
$
0.53

 
$
1.91

 
$
2.36

 
$
3.59

Diluted earnings per share
$
0.52

 
$
1.83

 
$
2.26

 
$
3.41

Segment Information (Tables)
Schedule of Segment Revenue from Product Lines
Revenues from our product lines are as follows (in thousands):

Three Months Ended
 
Nine Months Ended

December 30,
 
December 24,
 
December 30,
 
December 24,

2017
 
2016
 
2017
 
2016
Portable Audio Products
$
438,650

 
$
483,712

 
$
1,101,099

 
$
1,083,190

Non-Portable Audio and Other Products
44,091

 
39,317

 
127,914

 
127,886


$
482,741

 
$
523,029

 
$
1,229,013

 
$
1,211,076

Recently Issued Accounting Pronouncements (Narrative) (Details) (Accounting Standards Update 2016-16, New Accounting Pronouncement, Early Adoption, Effect, Retained Earnings, USD $)
In Millions, unless otherwise specified
Jun. 24, 2017
Accounting Standards Update 2016-16 |
New Accounting Pronouncement, Early Adoption, Effect |
Retained Earnings
New Accounting Pronouncement, Early Adoption [Line Items]
Impact to beginning retained earnings from adoption of ASU 2016-16
$0.7
Marketable Securities (Schedule of Available-for-sale Securities) (Details)(USD $)
In Thousands, unless otherwise specified
Dec. 30, 2017
Mar. 25, 2017
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost
$187,381
$99,868
Gross Unrealized Gains
5
0
Gross Unrealized Losses
(847)
(55)
Estimated Fair Value (Net Carrying Amount)
186,539
99,813
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost
174,603
33,350
Gross Unrealized Gains
5
0
Gross Unrealized Losses
(787)
(20)
Estimated Fair Value (Net Carrying Amount)
173,821
33,330
Non-US government securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost
11,819
Gross Unrealized Gains
0
Gross Unrealized Losses
(58)
Estimated Fair Value (Net Carrying Amount)
11,761
Certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost
500
Gross Unrealized Gains
0
Gross Unrealized Losses
0
Estimated Fair Value (Net Carrying Amount)
500
Agency discount notes
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost
459
Gross Unrealized Gains
0
Gross Unrealized Losses
(2)
Estimated Fair Value (Net Carrying Amount)
457
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost
66,518
Gross Unrealized Gains
0
Gross Unrealized Losses
(35)
Estimated Fair Value (Net Carrying Amount)
$66,483
Marketable Securities (Narrative) (Details)(USD $)
9 Months Ended
Dec. 30, 2017
security
Mar. 25, 2017
security
Dec. 30, 2017
Minimum
Dec. 30, 2017
Maximum
Schedule of Available-for-sale Securities [Line Items]
Maturity period for highly-rated securities
1 year
3 years
Gross unrealized losses
$847,000
$55,000
Amortized cost on available for sale securities held at gross unrealized loss
$181,000,000
$99,900,000
Number of securities in unrealized loss position greater than one year
0
4
Percentage of gross unrealized loss to position (less than)
1.00%
Marketable Securities (Schedule of Cost and Estimated Fair Value of Available-for-sale Securities by Contractual Maturity) (Details)(USD $)
In Thousands, unless otherwise specified
Dec. 30, 2017
Mar. 25, 2017
Amortized Cost
Within 1 year
$12,846
$99,868
After 1 year
174,535
0
Amortized Cost
187,381
99,868
Estimated Fair Value
Within 1 year
12,822
99,813
After 1 year
173,717
0
Estimated Fair Value
$186,539
$99,813
Fair Value of Financial Instruments (Schedule of Fair Value of Financial Assets and Liabilities) (Details)(USD $)
In Thousands, unless otherwise specified
Dec. 30, 2017
Mar. 25, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
$186,539
$99,813
Contingent consideration
671
4,695
Quoted Prices in Active Markets for Identical Assets Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
0
0
Contingent consideration
0
0
Significant Other Observable Inputs Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
186,539
99,813
Contingent consideration
0
0
Significant Unobservable Inputs Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
0
0
Contingent consideration
671
4,695
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
173,821
33,330
Corporate debt securities |
Quoted Prices in Active Markets for Identical Assets Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
0
0
Corporate debt securities |
Significant Other Observable Inputs Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
173,821
33,330
Corporate debt securities |
Significant Unobservable Inputs Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
0
0
Non-US government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
11,761
Non-US government securities |
Quoted Prices in Active Markets for Identical Assets Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
0
Non-US government securities |
Significant Other Observable Inputs Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
11,761
Non-US government securities |
Significant Unobservable Inputs Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
0
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
500
Certificates of deposit |
Quoted Prices in Active Markets for Identical Assets Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
0
Certificates of deposit |
Significant Other Observable Inputs Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
500
Certificates of deposit |
Significant Unobservable Inputs Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
0
Agency discount notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
457
Agency discount notes |
Quoted Prices in Active Markets for Identical Assets Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
0
Agency discount notes |
Significant Other Observable Inputs Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
457
Agency discount notes |
Significant Unobservable Inputs Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
66,483
Commercial paper |
Significant Other Observable Inputs Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
66,483
Commercial paper |
Significant Unobservable Inputs Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents
186,393
313,982
Money market funds |
Quoted Prices in Active Markets for Identical Assets Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents
186,393
313,982
Money market funds |
Significant Other Observable Inputs Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents
0
0
Money market funds |
Significant Unobservable Inputs Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents
$0
$0
Fair Value of Financial Instruments (Schedule of Contingent Consideration) (Details)(USD $)
In Thousands, unless otherwise specified
9 Months Ended
Dec. 30, 2017
Mar. 25, 2017
Dec. 30, 2017
Tranche B - 30 month earn out period
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maximum Value if Milestones Achieved (in thousands)
$5,000
Estimated Discount Rate (%)
7.70%
Fair Value (in thousands)
$671
$4,695
$671
Fair Value of Financial Instruments (Schedule of Fair Value of Contingent Consideration) (Details)(USD $)
In Thousands, unless otherwise specified
9 Months Ended
Dec. 30, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance
$4,695
Adjustment to estimates (research and development expense)
(4,049)
Fair value charge recognized in earnings (research and development expense)
25
Ending balance
$671
Accounts Receivable, net (Components of Accounts Receivable, net) (Details)(USD $)
In Thousands, unless otherwise specified
Dec. 30, 2017
Mar. 25, 2017
Accounts Receivable, Net [Abstract]
Gross accounts receivable
$218,063
$120,408
Allowance for doubtful accounts
(444)
(434)
Accounts receivable, net
$217,619
$119,974
Inventories (Schedule of Inventories) (Details)(USD $)
In Thousands, unless otherwise specified
Dec. 30, 2017
Mar. 25, 2017
Inventory Disclosure [Abstract]
Work in process
$102,670
$83,332
Finished goods
90,297
84,563
Total inventories
$192,967
$167,895
Revolving Credit Facilities (Narrative) (Details)(USD $)
0 Months Ended
Dec. 30, 2017
Mar. 25, 2017
Dec. 30, 2017
Wells Fargo Bank
Amended Credit Agreement
Amended Facility
Jul. 12, 2016
Wells Fargo Bank
Amended Credit Agreement
Amended Facility
Jul. 12, 2016
Wells Fargo Bank
Amended Credit Agreement
Amended Facility
Minimum
Jul. 12, 2016
Wells Fargo Bank
Amended Credit Agreement
Amended Facility
Maximum
Jul. 12, 2016
Wells Fargo Bank
Amended Credit Agreement
Amended Facility
Base Rate
Minimum
Jul. 12, 2016
Wells Fargo Bank
Amended Credit Agreement
Amended Facility
Base Rate
Maximum
Jul. 12, 2016
Wells Fargo Bank
Amended Credit Agreement
Amended Facility
London Interbank Offered Rate (LIBOR)
Minimum
Jul. 12, 2016
Wells Fargo Bank
Amended Credit Agreement
Amended Facility
London Interbank Offered Rate (LIBOR)
Maximum
Line of Credit Facility [Line Items]
Line of credit facility maximum borrowing capacity
$300,000,000
Basis spread on variable rate
0.00%
0.50%
1.25%
2.00%
Line of credit facility, unused capacity, commitment fee percentage
0.20%
0.30%
Covenant terms, leverage ratio requirement
300.00%
Covenant terms fixed charge ratio requirement
125.00%
Long-term line of credit, noncurrent
$0
$60,000,000
$0
Pension Plan Pension Plan (Details)(GBP )
In Millions, unless otherwise specified
3 Months Ended
Jun. 24, 2017
Retirement Benefits [Abstract]
Contributions by employer
1.5
Income Taxes (Provision for Income Taxes) (Details)(USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Dec. 30, 2017
Dec. 24, 2016
Dec. 30, 2017
Dec. 24, 2016
Income Tax Disclosure [Abstract]
Income before income taxes
$104,740
$145,792
$243,112
$270,134
Provision for income taxes
$70,961
$23,751
$93,100
$44,000
Effective tax rate
67.70%
16.30%
38.30%
16.30%
Income Taxes (Narrative) (Details)(USD $)
3 Months Ended 9 Months Ended 12 Months Ended
Dec. 30, 2017
Sep. 23, 2017
Jun. 24, 2017
Dec. 24, 2016
Dec. 30, 2017
Dec. 24, 2016
Mar. 31, 2018
Scenario, Forecast
Income Taxes [Line Items]
Provision for income taxes
$70,961,000
$23,751,000
$93,100,000
$44,000,000
Effective tax rate
67.70%
16.30%
38.30%
16.30%
Federal blended corporate income tax rate, percent
31.60%
Provision related to remeasurement of deferred tax balances
6,100,000
Provision for one-time transition tax liability
51,800,000
Unrecognized tax benefits
36,200,000
36,200,000
Unrecognized tax benefits, gross decrease due to lapse of the statute of limitations applicable to a prior year tax deduction
2,300,000
Unrecognized tax benefits, gross increase due to current year unrecognized tax benefits
2,600,000
2,800,000
2,200,000
Decrease in unrecognized tax benefits is reasonably possible
1,100,000
1,100,000
Balance of accrued interest and penalties, net of tax
$800,000
$800,000
Net Income Per Share (Calculation Of Basic And Diluted Earnings Per Share) (Details)(USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Dec. 30, 2017
Dec. 24, 2016
Dec. 30, 2017
Dec. 24, 2016
Numerator:
Net income
$33,779
$122,041
$149,991
$226,151
Denominator:
Weighted average shares outstanding (in shares)
63,453
63,837
63,655
63,025
Effect of dilutive securities (in shares)
2,104
2,911
2,722
3,353
Weighted average diluted shares (in shares)
65,557
66,748
66,377
66,378
Basic earnings per share (in dollars per share)
$0.53
$1.91
$2.36
$3.59
Diluted earnings per share (in dollars per share)
$0.52
$1.83
$2.26
$3.41
Net Income Per Share (Narrative) (Details)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Dec. 30, 2017
Dec. 24, 2016
Dec. 30, 2017
Dec. 24, 2016
Earnings Per Share [Abstract]
Weighted average shares outstanding excluded from diluted calculation (in shares)
824
157
273
208
Stockholders' Equity (Common Stock) (Details)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Dec. 30, 2017
Dec. 24, 2016
Dec. 30, 2017
Dec. 24, 2016
Stockholders' Equity Note [Abstract]
Common stock issued as part of stock incentive plan (in shares)
0.6
0.9
1.0
2.0
Stockholders' Equity (Stock Repurchase Program) (Details)(USD $)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended 26 Months Ended
Dec. 30, 2017
Dec. 30, 2017
Dec. 30, 2017
Stockholders' Equity Note [Abstract]
Repurchase and retirement of common stock, value
$20,000,000
$115,600,000
$139,800,000
Share repurchase program, amount approved
200,000,000
200,000,000
200,000,000
Remaining amount available for share repurchases under stock repurchase program
$60,200,000
$60,200,000
$60,200,000
Repurchase and retirement of common stock (in shares)
0.4
2.0
Average cost per share repurchased (in dollars per share)
$55.01
$58.89
Segment Information (Narrative) (Details)
9 Months Ended
Dec. 30, 2017
product_line
segment
Segment Reporting [Abstract]
Number of reportable segments
1
Number of product lines
2
Segment Information (Schedule of Segment Revenue from Product Lines) (Details)(USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Dec. 30, 2017
Dec. 24, 2016
Dec. 30, 2017
Dec. 24, 2016
Segment Reporting Information [Line Items]
Net sales
$482,741
$523,029
$1,229,013
$1,211,076
Portable Audio Products
Segment Reporting Information [Line Items]
Net sales
438,650
483,712
1,101,099
1,083,190
Non-Portable Audio and Other Products
Segment Reporting Information [Line Items]
Net sales
$44,091
$39,317
$127,914
$127,886
Subsequent Event (Details)(USD $)
Dec. 30, 2017
Jan. 31, 2018
Subsequent Event
Subsequent Event [Line Items]
Share repurchase program, amount approved
$200,000,000
$200,000,000
Remaining amount available for share repurchases under stock repurchase program
$60,200,000