2015 Q3 Form 10-Q Financial Statement

#000082705415000218 Filed on November 09, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2014 Q3
Revenue $541.4M $546.2M
YoY Change -0.89% 10.87%
Cost Of Revenue $240.4M $238.8M
YoY Change 0.69% 17.16%
Gross Profit $301.0M $307.5M
YoY Change -2.12% 6.44%
Gross Profit Margin 55.59% 56.29%
Selling, General & Admin $80.26M $71.11M
YoY Change 12.86% 2.52%
% of Gross Profit 26.67% 23.13%
Research & Development $95.26M $88.81M
YoY Change 7.25% 13.49%
% of Gross Profit 31.65% 28.89%
Depreciation & Amortization $26.20M $24.30M
YoY Change 7.82% 5.65%
% of Gross Profit 8.71% 7.9%
Operating Expenses $226.0M $206.1M
YoY Change 9.64% 20.3%
Operating Profit $74.95M $101.3M
YoY Change -26.03% -13.78%
Interest Expense $25.64M $14.02M
YoY Change 82.92% 13.48%
% of Operating Profit 34.22% 13.84%
Other Income/Expense, Net -$1.696M -$1.091M
YoY Change 55.45% -150.91%
Pretax Income $53.96M $90.70M
YoY Change -40.51% -18.44%
Income Tax -$10.94M -$1.334M
% Of Pretax Income -20.28% -1.47%
Net Earnings $64.90M $93.64M
YoY Change -30.69% -6.18%
Net Earnings / Revenue 11.99% 17.14%
Basic Earnings Per Share $0.32 $0.47
Diluted Earnings Per Share $0.30 $0.42
COMMON SHARES
Basic Shares Outstanding 204.3M shares 200.6M shares
Diluted Shares Outstanding 217.1M shares 225.3M shares

Balance Sheet

Concept 2015 Q3 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.002B $1.283B
YoY Change 56.04% 11.37%
Cash & Equivalents $539.1M $481.4M
Short-Term Investments $1.462B $802.0M
Other Short-Term Assets $24.62M $35.88M
YoY Change -31.36% -38.86%
Inventory $363.8M $275.7M
Prepaid Expenses $38.55M $34.35M
Receivables $281.1M $287.5M
Other Receivables $3.000M $2.000M
Total Short-Term Assets $2.779B $1.979B
YoY Change 40.42% 8.68%
LONG-TERM ASSETS
Property, Plant & Equipment $631.6M $585.1M
YoY Change 7.95% 12.91%
Goodwill $1.009B $558.0M
YoY Change 80.79% 107.75%
Intangibles $702.4M $599.0M
YoY Change 17.25% 24.62%
Long-Term Investments $585.0M $841.0M
YoY Change -30.44% 1.33%
Other Assets $79.81M $48.29M
YoY Change 65.26% 2.43%
Total Long-Term Assets $3.007B $2.632B
YoY Change 14.28% 22.73%
TOTAL ASSETS
Total Short-Term Assets $2.779B $1.979B
Total Long-Term Assets $3.007B $2.632B
Total Assets $5.786B $4.611B
YoY Change 25.5% 16.28%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $72.36M $94.40M
YoY Change -23.35% 21.39%
Accrued Expenses $119.5M $114.0M
YoY Change 4.79% 12.09%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $17.50M
YoY Change -100.0% 108.96%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $371.8M $385.5M
YoY Change -3.56% 13.75%
LONG-TERM LIABILITIES
Long-Term Debt $2.688B $1.324B
YoY Change 103.02% 32.67%
Other Long-Term Liabilities $41.04M $40.35M
YoY Change 1.71% 6.08%
Total Long-Term Liabilities $41.04M $40.35M
YoY Change 1.71% 6.08%
TOTAL LIABILITIES
Total Short-Term Liabilities $371.8M $385.5M
Total Long-Term Liabilities $41.04M $40.35M
Total Liabilities $412.8M $425.8M
YoY Change -3.06% 12.97%
SHAREHOLDERS EQUITY
Retained Earnings $1.600B $1.508B
YoY Change 6.11% 8.36%
Common Stock $1.383B $201.0K
YoY Change 687970.15% 1.52%
Preferred Stock
YoY Change
Treasury Stock (at cost) $850.6M $548.9M
YoY Change 54.98% -12.33%
Treasury Stock Shares 24.36M shares 17.83M shares
Shareholders Equity $2.129B $2.203B
YoY Change
Total Liabilities & Shareholders Equity $5.786B $4.611B
YoY Change 25.5% 16.28%

Cashflow Statement

Concept 2015 Q3 2014 Q3
OPERATING ACTIVITIES
Net Income $64.90M $93.64M
YoY Change -30.69% -6.18%
Depreciation, Depletion And Amortization $26.20M $24.30M
YoY Change 7.82% 5.65%
Cash From Operating Activities $149.9M $192.0M
YoY Change -21.93% 19.63%
INVESTING ACTIVITIES
Capital Expenditures -$30.00M -$38.80M
YoY Change -22.68% 41.61%
Acquisitions
YoY Change
Other Investing Activities -$510.7M -$209.0M
YoY Change 144.35% 37.05%
Cash From Investing Activities -$540.7M -$247.8M
YoY Change 118.2% 37.74%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 366.3M -80.40M
YoY Change -555.6% 102.52%
NET CHANGE
Cash From Operating Activities 149.9M 192.0M
Cash From Investing Activities -540.7M -247.8M
Cash From Financing Activities 366.3M -80.40M
Net Change In Cash -24.50M -136.2M
YoY Change -82.01% 130.46%
FREE CASH FLOW
Cash From Operating Activities $149.9M $192.0M
Capital Expenditures -$30.00M -$38.80M
Free Cash Flow $179.9M $230.8M
YoY Change -22.05% 22.83%

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us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Before Reclassification And Tax
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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CY2015Q3 us-gaap Treasury Stock Value
TreasuryStockValue
850635000 USD
CY2015Q3 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
363800000 USD
CY2015Q3 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
225100000 USD
us-gaap Unrecognized Tax Benefits Period Increase Decrease
UnrecognizedTaxBenefitsPeriodIncreaseDecrease
26200000 USD
CY2014Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
3767000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
3780000 shares
CY2015Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
3065000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
3228000 shares
CY2014Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
225284000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
224906000 shares
CY2015Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
217099000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
216933000 shares
CY2014Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
200629000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
200408000 shares
CY2015Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
204275000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
203254000 shares
us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Recently Issued Accounting Pronouncements</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09-</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue from Contracts with Customers</font><font style="font-family:inherit;font-size:10pt;">, which will supersede nearly all existing revenue recognition guidance under US GAAP.&#160; The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company is evaluating its existing revenue recognition policies to determine whether any contracts in the scope of the guidance will be materially affected by the new requirements.&#160; The effects may include identifying performance obligations in existing arrangements, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation.&#160; On July 9, 2015, the FASB delayed the effective date of the new standard by one year to December 15, 2017, for annual and interim reporting periods beginning after that date. In accordance with the delay, the new standard will be effective for the Company beginning no later than April 1, 2018.&#160; Early adoption is permitted, but not before the original effective date of December 15, 2016.&#160; The standard allows for either "full retrospective" adoption, meaning the standard is applied to all of the periods presented, or "modified retrospective" adoption, meaning the standard is applied only to the most current period presented in the financial statements. &#160;The Company is currently evaluating the transition method that will be elected. </font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2015, the FASB issued ASU 2015-03-</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Simplifying the Presentation of Debt Issuance Costs.</font><font style="font-family:inherit;font-size:10pt;"> This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. ASU 2015-03 is effective for interim and annual reporting periods beginning after December 15, 2015 and requires retrospective application. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2015, the FASB issued ASU 2015-05-</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)</font><font style="font-family:inherit;font-size:10pt;">,</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> Customer's Accounting for Fees Paid in a Cloud Computing Arrangement</font><font style="font-family:inherit;font-size:10pt;">. This standard provides guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. This standard can be adopted either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In July 2015, the FASB issued ASU 2015-11-</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Simplifying the Measurement of Inventory. </font><font style="font-family:inherit;font-size:10pt;">This standard requires that entities measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective for interim and annual reporting periods beginning after December 15, 2016 and is applied prospectively. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> </font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In September 2015, the FASB issued ASU 2015-16-</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments</font><font style="font-family:inherit;font-size:10pt;">. This standard amends existing guidance to require acquiring entities in a business combination to recognize measurement-period adjustments in the reporting period in which the adjustment amounts are determined. The standard also requires entities to present separately on the face of the income statement (or disclose in the notes to the financial statements) the amount of the adjustment reflected in the current period earnings, by line item, that would have been recognized in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption permitted. The standard is to be applied prospectively to measurement-period adjustments that occur after the effective date. The Company adopted this standard beginning in the second quarter of fiscal 2016 and the adoption of this standard did not have a material impact on its consolidated financial statements.</font></div></div>
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Contingencies</font></div><div style="line-height:120%;text-align:left;padding-left:48px;text-indent:-48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In the ordinary course of the Company's business, it is involved in a limited number of legal actions, both as plaintiff and defendant, and could incur uninsured liability in any one or more of them.&#160;&#160;The Company also periodically receives notifications from various third parties alleging infringement of patents, intellectual property rights or other matters.&#160;&#160;With respect to pending legal actions to which the Company is a party, although the outcomes of these actions are not generally determinable, the Company believes that the ultimate resolution of these matters will not have a material adverse effect on its financial position, cash flows or results of operations.&#160;&#160;Litigation relating to the semiconductor industry is not uncommon, and the Company is, and from time to time has been, subject to such litigation.&#160;&#160;No assurances can be given with respect to the extent or outcome of any such litigation in the future.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's technology license agreements generally include an indemnification clause that indemnifies the licensee against liability and damages (including legal defense costs) arising from any claims of patent, copyright, trademark or trade secret infringement by the Company's proprietary technology.&#160;&#160;The terms of these indemnification provisions approximate the terms of the outgoing technology license agreements, which are typically perpetual unless terminated by either party for breach.&#160;&#160;The possible amount of future payments the Company could be required to make based on agreements that specify indemnification limits, if such indemnifications were required on all of these agreements, is approximately $</font><font style="font-family:inherit;font-size:10pt;">139 million</font><font style="font-family:inherit;font-size:10pt;">. There are some licensing agreements in place that do not specify indemnification limits.&#160;&#160;The Company had not recorded any liabilities related to these indemnification obligations&#160;as of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">September&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div>

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