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

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

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

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

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

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 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

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

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

໿

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

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

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

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

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

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)

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.

Segment Reporting, Policy

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)

Schedule of Available-for-sale Securities

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

Schedule of Cost and Estimated Fair Value of Available-for-sale Securities by Contractual Maturity

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)

Schedule of Fair Value of Financial Assets and Liabilities

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

Schedule of Fair Value of Financial Instruments - 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

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

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

Contingent consideration

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

Significant Unobservable Inputs Level 3

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Available-for-sale securities

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

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

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

Money market funds |
Significant Unobservable Inputs Level 3

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Cash equivalents

$ 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

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

Balance of accrued interest and penalties, net of tax

$ 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

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

Remaining amount available for share repurchases under stock repurchase program

$ 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

Remaining amount available for share repurchases under stock repurchase program

$ 60,200,000