CIRRUS LOGIC, INC., 10-Q filed on 8/3/2020
Quarterly Report
v3.20.2
Cover - shares
3 Months Ended
Jun. 27, 2020
Jul. 30, 2020
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 27, 2020  
Document Transition Report false  
Entity File Number 0-17795  
Entity Registrant Name CIRRUS LOGIC, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 77-0024818  
Entity Address, Address Line One 800 W. 6th Street  
Entity Address, City or Town Austin,  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 78701  
City Area Code (512)  
Local Phone Number 851-4000  
Title of 12(g) Security Common stock, $0.001 par value  
Trading Symbol CRUS  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   58,392,848
Amendment Flag false  
Entity Central Index Key 0000772406  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --03-27  
v3.20.2
Consolidated Condensed Balance Sheets - USD ($)
$ in Thousands
Jun. 27, 2020
Mar. 28, 2020
Current assets:    
Cash and cash equivalents $ 285,922 $ 292,119
Marketable securities 29,943 22,008
Accounts receivable, net 136,539 153,998
Inventories 199,332 146,725
Prepaid assets 25,387 23,594
Other current assets 12,844 11,752
Total current assets 689,967 650,196
Long-term marketable securities 290,186 283,573
Right-of-use lease assets 139,492 141,274
Property and equipment, net 154,286 158,244
Intangibles, net 31,185 34,430
Goodwill 287,399 287,088
Deferred tax assets 6,970 10,052
Other assets 44,554 27,820
Total assets 1,644,039 1,592,677
Current liabilities:    
Accounts payable 95,523 78,412
Accrued salaries and benefits 28,768 42,439
Software license agreements 13,645 10,888
Current lease liabilities 13,887 13,580
Other accrued liabilities 11,221 13,318
Total current liabilities 163,044 158,637
Long-term liabilities:    
Software license agreements 9,949 3,806
Non-current income taxes 69,130 71,143
Non-current lease liabilities 129,627 129,312
Total long-term liabilities 208,706 204,261
Stockholders' equity:    
Capital stock 1,451,297 1,434,929
Accumulated deficit (184,049) (201,681)
Accumulated other comprehensive income (loss) 5,041 (3,469)
Total stockholders' equity 1,272,289 1,229,779
Total liabilities and stockholders' equity $ 1,644,039 $ 1,592,677
v3.20.2
Consolidated Condensed Statements of Income - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Jun. 27, 2020
Jun. 29, 2019
Income Statement [Abstract]    
Net sales $ 242,573 $ 238,253
Cost of sales 115,101 115,759
Gross profit 127,472 122,494
Operating expenses    
Research and development 78,741 88,830
Selling, general and administrative 29,704 29,520
Restructuring costs 352 0
Total operating expenses 108,797 118,350
Income from operations 18,675 4,144
Interest income 1,835 2,544
Interest expense (259) (259)
Other income (expense) 111 (378)
Income before income taxes 20,362 6,051
Provision for income taxes 2,153 1,433
Net income $ 18,209 $ 4,618
Basic earnings per share (in dollars per share) $ 0.31 $ 0.08
Diluted earnings per share (in dollars per share) $ 0.30 $ 0.08
Basic weighted average common shares outstanding (in shares) 58,313 58,540
Diluted weighted average common shares outstanding (in shares) 60,280 60,258
v3.20.2
Consolidated Condensed Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
Jun. 27, 2020
Jun. 29, 2019
Statement of Comprehensive Income [Abstract]    
Net income $ 18,209 $ 4,618
Other comprehensive income (loss), before tax    
Foreign currency translation gain 1,014 24
Unrealized gain on marketable securities 9,488 2,115
Cumulative effect of adoption of ASU 2018-02 0 (257)
Provision for income taxes (1,992) (444)
Comprehensive income $ 26,719 $ 6,056
Accounting Standards Update [Extensible List]   us-gaap:AccountingStandardsUpdate201802Member
v3.20.2
Consolidated Condensed Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Jun. 27, 2020
Jun. 29, 2019
Cash flows from operating activities:    
Net income $ 18,209 $ 4,618
Adjustments to reconcile net income to net cash generated by operating activities:    
Depreciation and amortization 11,745 19,745
Stock-based compensation expense 13,306 11,782
Deferred income taxes 673 (251)
Loss on retirement or write-off of long-lived assets 0 2
Other non-cash adjustments 107 346
MEMS restructuring charges 352 0
Net change in operating assets and liabilities:    
Accounts receivable, net 17,459 9,159
Inventories (52,607) 18,416
Other assets (3,545) (2,966)
Accounts payable and other accrued liabilities 2,553 3,220
Income taxes payable (7,750) (7,084)
Net cash generated by operating activities 502 56,987
Cash flows from investing activities:    
Maturities and sales of available-for-sale marketable securities 33,965 42,057
Purchases of available-for-sale marketable securities (41,017) (68,663)
Purchases of property, equipment and software (2,054) (3,816)
Investments in technology (77) (4,301)
Net cash used in investing activities (9,183) (34,723)
Cash flows from financing activities:    
Issuance of common stock, net of shares withheld for taxes 3,061 260
Repurchase of stock to satisfy employee tax withholding obligations (577) (619)
Repurchase and retirement of common stock 0 (40,000)
Net cash generated by (used in) financing activities 2,484 (40,359)
Net decrease in cash and cash equivalents (6,197) (18,095)
Cash and cash equivalents at beginning of period 292,119 216,172
Cash and cash equivalents at end of period $ 285,922 $ 198,077
v3.20.2
Consolidated Condensed Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income / (Loss)
Accumulated Other Comprehensive Income / (Loss)
Cumulative Effect, Period of Adoption, Adjustment
Balance (in shares) at Mar. 30, 2019     58,954,000          
Beginning balance at Mar. 30, 2019 $ 1,140,240   $ 59 $ 1,363,677 $ (222,430)   $ (1,066)  
Beginning balance (Accounting Standards Update 2016-02) at Mar. 30, 2019   $ (726)       $ (726)    
Beginning balance (Accounting Standards Update 2018-02) at Mar. 30, 2019           $ 257   $ (257)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 4,618       4,618      
Change in unrealized gain (loss) on marketable securities, net of tax 1,671           1,671  
Change in foreign currency translation adjustments 24           24  
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes (in shares)     55,000          
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes (359)     260 (619)      
Repurchase and retirement of common stock (in shares)     (888,000)          
Repurchase and retirement of common stock (40,000)   $ (1)   (39,999)      
Stock-based compensation 11,782     11,782        
Balance (in shares) at Jun. 29, 2019     58,121,000          
Ending balance at Jun. 29, 2019 1,117,250   $ 58 1,375,719 (258,899)   372  
Balance (in shares) at Mar. 28, 2020     58,242,000          
Beginning balance at Mar. 28, 2020 1,229,779   $ 58 1,434,871 (201,681)   (3,469)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 18,209       18,209      
Change in unrealized gain (loss) on marketable securities, net of tax 7,496           7,496  
Change in foreign currency translation adjustments 1,014           1,014  
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes (in shares)     139,000          
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes $ 2,485     3,062 (577)      
Repurchase and retirement of common stock (in shares) 0              
Stock-based compensation $ 13,306     13,306        
Balance (in shares) at Jun. 27, 2020     58,381,000          
Ending balance at Jun. 27, 2020 $ 1,272,289   $ 58 $ 1,451,239 $ (184,049)   $ 5,041  
v3.20.2
Basis of Presentation
3 Months Ended
Jun. 27, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of PresentationThe 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 28, 2020, included in our Annual Report on Form 10-K filed with the Commission on May 20, 2020.  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.  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.
v3.20.2
Recently Issued Accounting Pronouncements
3 Months Ended
Jun. 27, 2020
Accounting Policies [Abstract]  
Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  This ASU requires credit losses on financial instruments, including 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.  The Company adopted this ASU in the first quarter of fiscal year 2021, with no material impact to the financial statements. 

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.  This ASU eliminates step two of the goodwill impairment test.  An impairment charge is to be recognized for the amount by which the current value exceeds the fair value. This ASU is effective for annual periods beginning after December 15, 2019, including interim periods.  Early adoption is permitted, for interim or annual goodwill impairment tests performed after January 1, 2017, and should be applied prospectively. The Company adopted this ASU in the first quarter of fiscal year 2021, with no material impact to the financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. This ASU adjusts current required disclosures related to fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. The Company adopted this ASU in the first quarter of fiscal year 2021, with no material impact to the financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU provides guidance on the accounting for implementation costs related to a cloud computing arrangement that is a service contract. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. The Company adopted this ASU in the first quarter of fiscal year 2021,with prospective application and no material impact to the financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of this ASU, but does not expect a material impact to the financial statements upon adoption.

In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321) - Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force). This ASU clarifies the interaction of the accounting for equity securities, investments accounted for under the equity method of accounting, and the accounting for certain forward contracts and purchased options. This ASU is effective for fiscal years beginning after
December 15, 2020, including interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of this ASU, but does not expect a material impact to the financial statements upon adoption.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU, effective immediately for reporting periods through December 31, 2022, provides accounting relief for contract modifications that replace an interest rate impacted by reference rate reform (e.g., LIBOR) with a new alternative reference rate. The guidance is applicable to investment securities, receivables, debt, leases, hedging relationships and other contractual arrangements. The Company adopted this ASU in the first quarter of fiscal year 2021, with no material impact to the financial statements.
v3.20.2
Marketable Securities
3 Months Ended
Jun. 27, 2020
Marketable Securities [Abstract]  
Marketable Securities Marketable Securities
The Company’s investments have been classified as available-for-sale securities in accordance with U.S. GAAP.  Marketable securities are categorized on the consolidated condensed balance sheet as "Marketable securities", within the short-term or long-term classification, as appropriate.

The following table is a summary of available-for-sale securities at June 27, 2020 (in thousands):
As of June 27, 2020Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities$294,015  $6,727  $(72) $300,670  
Non-U.S. government securities12,879  316  —  13,195  
U.S. Treasury securities5,267  108  —  5,375  
Agency discount notes889  —  —  889  
Total securities$313,050  $7,151  $(72) $320,129  

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 $0.1 million related to securities with total amortized costs of approximately $7.7 million at June 27, 2020. There were no securities that had been in a continuous unrealized loss position for more than 12 months as of June 27, 2020. 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.  The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors. When evaluating an investment for 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 June 27, 2020, the Company does not consider any of its investments to be impaired.   

The following table is a summary of available-for-sale securities at March 28, 2020 (in thousands):
໿
໿
As of March 28, 2020Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities$286,668  $1,157  $(3,993) $283,832  
Non-U.S. government securities12,483  260  —  12,743  
U.S. Treasury securities8,839  167  —  9,006  
Total securities$307,990  $1,584  $(3,993) $305,581  

The Company's specifically identified gross unrealized loss of $4.0 million related to securities with total amortized costs of approximately $172.9 million at March 28, 2020. There were no securities that had been in a continuous unrealized loss position for more than 12 months as of March 28, 2020. As of March 28, 2020, the Company did not consider any of its investments to be impaired.  
The cost and estimated fair value of available-for-sale securities by contractual maturities were as follows (in thousands):
໿
June 27, 2020March 28, 2020
AmortizedEstimatedAmortizedEstimated
CostFair ValueCostFair Value
Within 1 year$29,447  $29,943  $22,012  $22,008  
After 1 year283,603  290,186  285,978  283,573  
Total$313,050  $320,129  $307,990  $305,581  
v3.20.2
Fair Value of Financial Instruments
3 Months Ended
Jun. 27, 2020
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
The Company has determined that the only material 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 and marketable securities portfolio.  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 marketable securities portfolio consist of money market funds, debt securities, non-U.S. government securities, U.S. Treasury securities and securities of U.S. government-sponsored enterprises 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 marketable securities portfolio by obtaining non-binding market prices from 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.

The Company's long-term revolving credit facility, described in Note 8, bears interest at a base rate plus applicable margin or LIBOR plus applicable margin. As of June 27, 2020, there are no amounts drawn under the credit facility and the fair value is zero.

As of June 27, 2020 and March 28, 2020, the Company has no material Level 3 assets or liabilities.  There were no transfers between Level 1, Level 2, or Level 3 measurements for the three months ended June 27, 2020. 
The following summarizes the fair value of our financial instruments at June 27, 2020 (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$249,837  $—  $—  $249,837  
Available-for-sale securities    
Corporate debt securities$—  $300,670  $—  $300,670  
Non-U.S. government securities—  13,195  —  13,195  
U.S. Treasury securities5,375  —  —  5,375  
Agency discount notes—  889  —  889  
$5,375  $314,754  $—  $320,129  
໿

The following summarizes the fair value of our financial instruments at March 28, 2020 (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$237,714  $—  $—  $237,714  
Available-for-sale securities    
Corporate debt securities$—  $283,832  $—  $283,832  
Non-U.S. government securities—  12,743  —  12,743  
U.S. Treasury securities9,006  —  —  9,006  
$9,006  $296,575  $—  $305,581  
໿
v3.20.2
Derivative Financial Instruments
3 Months Ended
Jun. 27, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-U.S. dollar balance sheet exposures. The Company recognizes both the gains and losses on foreign currency forward contracts and the gains and losses on the remeasurement of non-U.S. dollar denominated assets and liabilities within "Other income (expense)" in the consolidated condensed statements of income. The Company does not apply hedge accounting to these foreign currency derivative instruments.

As of June 27, 2020, the Company held one foreign currency forward contract denominated in British Pound Sterling with a notional value of $24.6 million. The fair value of this contract was not material as of June 27, 2020.
The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands):

Three Months Ended
June 27,June 29,
20202019Location
Gain (loss) recognized in income:
Foreign currency forward contracts$1,183  $(2,363) Other income (expense)
v3.20.2
Accounts Receivable, net
3 Months Ended
Jun. 27, 2020
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts Receivable, net Accounts Receivable, net
The following are the components of accounts receivable, net (in thousands):
June 27,March 28,
20202020
Gross accounts receivable$136,539  $153,998  
Allowance for doubtful accounts—  —  
Accounts receivable, net$136,539  $153,998  
v3.20.2
Inventories
3 Months Ended
Jun. 27, 2020
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories are comprised of the following (in thousands):
June 27,March 28,
20202020
Work in process$111,679  $82,494  
Finished goods87,653  64,231  
$199,332  $146,725  
v3.20.2
Revolving Credit Facility
3 Months Ended
Jun. 27, 2020
Line of Credit Facility [Abstract]  
Revolving Credit Facility Revolving Credit Facility
On July 12, 2016, Cirrus Logic entered into an amended and restated credit agreement (the “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 Credit Agreement provides for a $300 million senior secured revolving credit facility (the “Credit Facility”). The Credit Facility matures on July 12, 2021. The Credit Facility is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries (the “Subsidiary Guarantors”). The Credit Facility is secured by substantially all of the assets of Cirrus Logic and any Subsidiary Guarantors, except for certain excluded assets.

Borrowings under the Credit 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 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 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 June 27, 2020, the Company had no amounts outstanding under the Credit Facility and was in compliance with all covenants under the Credit Agreement.
v3.20.2
Revenues
3 Months Ended
Jun. 27, 2020
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Disaggregation of revenue

We disaggregate revenue from contracts with customers based on the ship to location of the customer. The geographic regions that are reviewed are the United States and countries outside of the United States (primarily located in Asia).

Total net sales based on the disaggregation criteria described above are as follows:
Three Months Ended
June 27,June 29,
20202019
Non-United States$238,497  $234,042  
United States4,076  4,211  
$242,573  $238,253  

Performance obligations

The Company's single performance obligation is the delivery of promised goods to the customer. The promised goods are explicitly stated in the customer contract and are comprised of either a single type of good or a series of goods that are substantially the same, have the same pattern of transfer to the customer, and are neither capable of being distinct nor separable from the other promised goods in the contract. This performance obligation is satisfied upon transfer of control of the promised goods to the customer, as defined per the shipping terms within the customer's contract. The vast majority of the Company's contracts with customers have an original expected term length of one year or less. As allowed by Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, the Company has not disclosed the value of any unsatisfied performance obligations related to these contracts.

The Company’s products typically include a warranty period of one to three years. These warranties qualify as assurance-type warranties, as goods can be returned for product non-conformance and defect only. As such, these warranties are accounted for under ASC 460, Guarantees, and are not considered a separate performance obligation.

Contract balances

Payments are typically due within 30 to 60 days of invoicing and terms do not include significant financing components or noncash consideration. There have been no material impairment losses on accounts receivable. There are no material contract assets or contract liabilities recorded on the consolidated condensed balance sheets.

Transaction price

The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods to the customer. Fixed pricing is the consideration that is agreed upon in the customer contract. Variable pricing includes rebates, rights of return, warranties, price protection and stock rotation. Rebates are granted as a customer account credit, based on agreed-upon sales thresholds. Rights of return and warranty costs are estimated using the "most likely amount" method by reviewing historical returns to determine the most likely customer return rate and applying materiality thresholds. Price protection includes price adjustments available to certain distributors based upon established book price and a stated adjustment period. Stock rotation is also available to certain distributors based on a stated maximum of prior billings.

The Company estimates all variable consideration at the most likely amount that it expects to be entitled. The estimate is based on current and historical information, including recent sales activity and pricing, available to the Company. Variable consideration is only included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company defers all variable consideration that does not meet the revenue recognition criteria.
v3.20.2
Restructuring Costs
3 Months Ended
Jun. 27, 2020
Restructuring and Related Activities [Abstract]  
Restructuring Costs Restructuring Costs
During the fourth quarter of fiscal year 2020, the Company approved a restructuring plan (the “MEMS Restructuring”), including discontinuing efforts relating to the microelectromechanical systems ("MEMS") microphone product line, which allowed the Company to concentrate resources on projects with an anticipated larger return on investment. The MEMS Restructuring is substantially complete as of the first quarter of fiscal year 2021.

The following table details the total restructuring charges presented in the consolidated condensed statements of income within the "Restructuring Costs" line item (in thousands):

Three Months Ended
June 27,
2020
Disposal of equipment$130  
Other exit costs222  
Total$352  

Restructuring liabilities are presented in the “Other accrued liabilities” line item of our consolidated condensed  balance sheet. The activity related to restructuring liabilities is detailed below (in thousands):

Restructuring Liability
Beginning balance as of March 28, 2020$982  
Other exit costs222  
Cash payments(703) 
Ending balance as of June 27, 2020$501  
v3.20.2
Income Taxes
3 Months Ended
Jun. 27, 2020
Income Tax Disclosure [Abstract]  
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 income tax credits.

The following table presents the provision for income taxes (in thousands) and the effective tax rates:
Three Months Ended
June 27,June 29,
20202019
Income before income taxes$20,362  $6,051  
Provision for income taxes$2,153  $1,433  
Effective tax rate10.6 %23.7 %

Our income tax expense was $2.2 million and $1.4 million for the first quarters of fiscal years 2021 and 2020, respectively, resulting in effective tax rates of 10.6% and 23.7% for the first quarter of fiscal years 2021 and 2020, respectively.  Our effective tax rate for the first quarter of fiscal year 2021 was lower than the federal statutory rate primarily due to the effect of 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 first quarter of fiscal year 2020 was higher than the federal statutory rate primarily due to interest accrued on unrecognized tax benefits recorded discretely in the quarter, partially offset by the effect of income earned in certain foreign jurisdictions that is taxed below the federal statutory rate.

The Company records unrecognized tax benefits for the estimated risk associated with tax positions taken on tax returns.  At June 27, 2020, the Company had unrecognized tax benefits of $36.2 million, all of which would impact the effective tax rate if recognized.  The Company’s total unrecognized tax benefits are classified as “Non-current income taxes" 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 June 27, 2020, the balance of accrued interest and penalties, net of tax, was $3.9 million. 

On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. et al. v. Commissioner which concluded that the regulations relating to the treatment of stock-based compensation expense in intercompany cost-sharing arrangements were invalid. In 2016 the U.S. Internal Revenue Service appealed the decision to the U.S. Court of Appeals for the Ninth Circuit (the “Ninth Circuit”). On July 24, 2018, the Ninth Circuit issued a decision that was subsequently withdrawn and a reconstituted panel conferred on the appeal. On June 7, 2019, the Ninth Circuit reversed the decision of the U.S. Tax Court and upheld the cost-sharing regulations. On February 10, 2020, Altera Corp. filed a Petition for a Writ of Certiorari with the Supreme Court of the United States, which was denied by the Supreme Court on June 22, 2020. Although the issue is now resolved in the Ninth Circuit, the Ninth Circuit's opinion is not binding in other circuits. The potential impact of this issue on the Company, which is not located within the jurisdiction of the Ninth Circuit, is unclear at this time. We will continue to monitor developments related to this issue and the potential impact of those developments on the Company's current and prior fiscal years.

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 2017 through 2020 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 2017 may be adjusted upon examination by the tax authorities if they have been, or will be, used in a future period.  The Company's federal income tax returns for fiscal years 2017, 2018, and 2019 are under examination by the U.S. Internal Revenue Service.  The Company believes it has accrued adequate reserves related to the matters under examination. The Company is not under an income tax audit in any other major taxing jurisdiction.
v3.20.2
Net Income Per Share
3 Months Ended
Jun. 27, 2020
Earnings Per Share [Abstract]  
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 restricted stock grants.

The following table details the calculation of basic and diluted earnings per share for the three months ended June 27, 2020 and June 29, 2019 (in thousands, except per share amounts):
໿
Three Months Ended
June 27,June 29,
20202019
Numerator:  
Net income$18,209  $4,618  
Denominator:  
Weighted average shares outstanding58,313  58,540  
Effect of dilutive securities1,967  1,718  
Weighted average diluted shares60,280  60,258  
Basic earnings per share$0.31  $0.08  
Diluted earnings per share$0.30  $0.08  
The weighted outstanding shares excluded from our diluted calculation for the three months ended June 27, 2020 and June 29, 2019 were 240 thousand and 734 thousand, respectively, as the shares were anti-dilutive.
v3.20.2
Legal Matters
3 Months Ended
Jun. 27, 2020
Commitments and Contingencies Disclosure [Abstract]  
Legal Matters Legal MattersFrom 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.
v3.20.2
Stockholders' Equity
3 Months Ended
Jun. 27, 2020
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders’ Equity
Common Stock 
 
The Company issued a net 0.1 million shares of common stock during each of the three months ended June 27, 2020 and June 29, 2019, pursuant to the Company's equity incentive plans.

Share Repurchase Program   
    
Since inception, approximately $80 million of the Company’s common stock has been repurchased under the Company’s 2019 $200 million share repurchase program, leaving approximately $120 million available for repurchase under this plan as of June 27, 2020.  During the three months ended June 27, 2020, the Company repurchased no shares of its common stock.
v3.20.2
Segment Information
3 Months Ended
Jun. 27, 2020
Segment Reporting [Abstract]  
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 in two product lines, Portable and Non-Portable 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
June 27,June 29,
20202019
Portable Products$210,661  $202,938  
Non-Portable and Other Products31,912  35,315  
$242,573  $238,253  
v3.20.2
Recently Issued Accounting Pronouncements (Policies)
3 Months Ended
Jun. 27, 2020
Accounting Policies [Abstract]  
Recently Issued Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  This ASU requires credit losses on financial instruments, including 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.  The Company adopted this ASU in the first quarter of fiscal year 2021, with no material impact to the financial statements. 

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.  This ASU eliminates step two of the goodwill impairment test.  An impairment charge is to be recognized for the amount by which the current value exceeds the fair value. This ASU is effective for annual periods beginning after December 15, 2019, including interim periods.  Early adoption is permitted, for interim or annual goodwill impairment tests performed after January 1, 2017, and should be applied prospectively. The Company adopted this ASU in the first quarter of fiscal year 2021, with no material impact to the financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. This ASU adjusts current required disclosures related to fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. The Company adopted this ASU in the first quarter of fiscal year 2021, with no material impact to the financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU provides guidance on the accounting for implementation costs related to a cloud computing arrangement that is a service contract. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. The Company adopted this ASU in the first quarter of fiscal year 2021,with prospective application and no material impact to the financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of this ASU, but does not expect a material impact to the financial statements upon adoption.

In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321) - Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force). This ASU clarifies the interaction of the accounting for equity securities, investments accounted for under the equity method of accounting, and the accounting for certain forward contracts and purchased options. This ASU is effective for fiscal years beginning after
December 15, 2020, including interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of this ASU, but does not expect a material impact to the financial statements upon adoption.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU, effective immediately for reporting periods through December 31, 2022, provides accounting relief for contract modifications that replace an interest rate impacted by reference rate reform (e.g., LIBOR) with a new alternative reference rate. The guidance is applicable to investment securities, receivables, debt, leases, hedging relationships and other contractual arrangements. The Company adopted this ASU in the first quarter of fiscal year 2021, with no material impact to the financial statements.
Fair Value of Financial Instruments
The Company has determined that the only material 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 and marketable securities portfolio.  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 marketable securities portfolio consist of money market funds, debt securities, non-U.S. government securities, U.S. Treasury securities and securities of U.S. government-sponsored enterprises 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 marketable securities portfolio by obtaining non-binding market prices from 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.
Revenues
Disaggregation of revenue

We disaggregate revenue from contracts with customers based on the ship to location of the customer. The geographic regions that are reviewed are the United States and countries outside of the United States (primarily located in Asia).

Total net sales based on the disaggregation criteria described above are as follows:
Three Months Ended
June 27,June 29,
20202019
Non-United States$238,497  $234,042  
United States4,076  4,211  
$242,573  $238,253  

Performance obligations

The Company's single performance obligation is the delivery of promised goods to the customer. The promised goods are explicitly stated in the customer contract and are comprised of either a single type of good or a series of goods that are substantially the same, have the same pattern of transfer to the customer, and are neither capable of being distinct nor separable from the other promised goods in the contract. This performance obligation is satisfied upon transfer of control of the promised goods to the customer, as defined per the shipping terms within the customer's contract. The vast majority of the Company's contracts with customers have an original expected term length of one year or less. As allowed by Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, the Company has not disclosed the value of any unsatisfied performance obligations related to these contracts.

The Company’s products typically include a warranty period of one to three years. These warranties qualify as assurance-type warranties, as goods can be returned for product non-conformance and defect only. As such, these warranties are accounted for under ASC 460, Guarantees, and are not considered a separate performance obligation.

Contract balances

Payments are typically due within 30 to 60 days of invoicing and terms do not include significant financing components or noncash consideration. There have been no material impairment losses on accounts receivable. There are no material contract assets or contract liabilities recorded on the consolidated condensed balance sheets.

Transaction price

The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods to the customer. Fixed pricing is the consideration that is agreed upon in the customer contract. Variable pricing includes rebates, rights of return, warranties, price protection and stock rotation. Rebates are granted as a customer account credit, based on agreed-upon sales thresholds. Rights of return and warranty costs are estimated using the "most likely amount" method by reviewing historical returns to determine the most likely customer return rate and applying materiality thresholds. Price protection includes price adjustments available to certain distributors based upon established book price and a stated adjustment period. Stock rotation is also available to certain distributors based on a stated maximum of prior billings.

The Company estimates all variable consideration at the most likely amount that it expects to be entitled. The estimate is based on current and historical information, including recent sales activity and pricing, available to the Company. Variable consideration is only included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company defers all variable consideration that does not meet the revenue recognition criteria.
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 in two product lines, Portable and Non-Portable 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.
v3.20.2
Marketable Securities (Tables)
3 Months Ended
Jun. 27, 2020
Marketable Securities [Abstract]  
Schedule of Available-for-sale Securities
The following table is a summary of available-for-sale securities at June 27, 2020 (in thousands):
As of June 27, 2020Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities$294,015  $6,727  $(72) $300,670  
Non-U.S. government securities12,879  316  —  13,195  
U.S. Treasury securities5,267  108  —  5,375  
Agency discount notes889  —  —  889  
Total securities$313,050  $7,151  $(72) $320,129  

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 $0.1 million related to securities with total amortized costs of approximately $7.7 million at June 27, 2020. There were no securities that had been in a continuous unrealized loss position for more than 12 months as of June 27, 2020. 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.  The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors. When evaluating an investment for 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 June 27, 2020, the Company does not consider any of its investments to be impaired.   

The following table is a summary of available-for-sale securities at March 28, 2020 (in thousands):
໿
໿
As of March 28, 2020Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities$286,668  $1,157  $(3,993) $283,832  
Non-U.S. government securities12,483  260  —  12,743  
U.S. Treasury securities8,839  167  —  9,006  
Total securities$307,990  $1,584  $(3,993) $305,581  
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):
໿
June 27, 2020March 28, 2020
AmortizedEstimatedAmortizedEstimated
CostFair ValueCostFair Value
Within 1 year$29,447  $29,943  $22,012  $22,008  
After 1 year283,603  290,186  285,978  283,573  
Total$313,050  $320,129  $307,990  $305,581  
v3.20.2
Fair Value of Financial Instruments (Tables)
3 Months Ended
Jun. 27, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Financial Assets and Liabilities
The following summarizes the fair value of our financial instruments at June 27, 2020 (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$249,837  $—  $—  $249,837  
Available-for-sale securities    
Corporate debt securities$—  $300,670  $—  $300,670  
Non-U.S. government securities—  13,195  —  13,195  
U.S. Treasury securities5,375  —  —  5,375  
Agency discount notes—  889  —  889  
$5,375  $314,754  $—  $320,129  
໿

The following summarizes the fair value of our financial instruments at March 28, 2020 (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$237,714  $—  $—  $237,714  
Available-for-sale securities    
Corporate debt securities$—  $283,832  $—  $283,832  
Non-U.S. government securities—  12,743  —  12,743  
U.S. Treasury securities9,006  —  —  9,006  
$9,006  $296,575  $—  $305,581  
v3.20.2
Derivative Financial Instruments (Tables)
3 Months Ended
Jun. 27, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Before-Tax Effect of Derivative Instruments Not Designated as Hedging Instruments
The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands):

Three Months Ended
June 27,June 29,
20202019Location
Gain (loss) recognized in income:
Foreign currency forward contracts$1,183  $(2,363) Other income (expense)
v3.20.2
Accounts Receivable, net (Tables)
3 Months Ended
Jun. 27, 2020
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Components of Accounts Receivable, net
The following are the components of accounts receivable, net (in thousands):
June 27,March 28,
20202020
Gross accounts receivable$136,539  $153,998  
Allowance for doubtful accounts—  —  
Accounts receivable, net$136,539  $153,998  
v3.20.2
Inventories (Tables)
3 Months Ended
Jun. 27, 2020
Inventory Disclosure [Abstract]  
Schedule of Inventories
Inventories are comprised of the following (in thousands):
June 27,March 28,
20202020
Work in process$111,679  $82,494  
Finished goods87,653  64,231  
$199,332  $146,725  
v3.20.2
Revenues (Tables)
3 Months Ended
Jun. 27, 2020
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Total net sales based on the disaggregation criteria described above are as follows:
Three Months Ended
June 27,June 29,
20202019
Non-United States$238,497  $234,042  
United States4,076  4,211  
$242,573  $238,253  
v3.20.2
Restructuring Costs (Tables)
3 Months Ended
Jun. 27, 2020
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Charges
The following table details the total restructuring charges presented in the consolidated condensed statements of income within the "Restructuring Costs" line item (in thousands):

Three Months Ended
June 27,
2020
Disposal of equipment$130  
Other exit costs222  
Total$352  
Schedule of Restructuring Liabilities
Restructuring liabilities are presented in the “Other accrued liabilities” line item of our consolidated condensed  balance sheet. The activity related to restructuring liabilities is detailed below (in thousands):

Restructuring Liability
Beginning balance as of March 28, 2020$982  
Other exit costs222  
Cash payments(703) 
Ending balance as of June 27, 2020$501  
v3.20.2
Income Taxes (Tables)
3 Months Ended
Jun. 27, 2020
Income Tax Disclosure [Abstract]  
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
June 27,June 29,
20202019
Income before income taxes$20,362  $6,051  
Provision for income taxes$2,153  $1,433  
Effective tax rate10.6 %23.7 %
v3.20.2
Net Income Per Share (Tables)
3 Months Ended
Jun. 27, 2020
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table details the calculation of basic and diluted earnings per share for the three months ended June 27, 2020 and June 29, 2019 (in thousands, except per share amounts):
໿
Three Months Ended
June 27,June 29,
20202019
Numerator:  
Net income$18,209  $4,618  
Denominator:  
Weighted average shares outstanding58,313  58,540  
Effect of dilutive securities1,967  1,718  
Weighted average diluted shares60,280  60,258  
Basic earnings per share$0.31  $0.08  
Diluted earnings per share$0.30  $0.08  
v3.20.2
Segment Information (Tables)
3 Months Ended
Jun. 27, 2020
Segment Reporting [Abstract]  
Schedule of Segment Revenue from Product Lines
Revenues from our product lines are as follows (in thousands):
Three Months Ended
June 27,June 29,
20202019
Portable Products$210,661  $202,938