| Equity
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1. 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 (“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 31, 2012, included in our Annual Report on Form 10-K filed with the Commission on May 30, 2012. In our opinion, the financial statements reflect all 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. Certain reclassifications have been made to the fiscal year 2012 presentation to conform to the fiscal year 2013 presentation. These reclassifications had no effect on the results of operations or stockholders’ equity.
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2. Recently Issued Accounting Pronouncements
In July 2012, the FASB issued ASU No. 2012-02, Intangibles – Goodwill and Other (ASC Topic 340) – Testing Indefinite-Lived Intangible Assets for Impairment. With the amendments in this update, an entity has the option to first assess qualitative factors to determine whether it is more likely than not that indefinite-lived assets, other than goodwill, are impaired. If, after the assessment, an entity concludes it is not more likely than not that the asset is impaired, then the entity is not required to assess further. If an entity concludes otherwise, the fair value determination and quantitative impairment test is required, in accordance with Subtopic 350-30. The amendments in this ASU are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption permitted. The adoption of this ASU is not expected to have a material impact on our consolidated financial position, results of operations or cash flows.
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3. 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 29, 2012 (in thousands):
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Estimated |
||||
|
|
|
Gross |
|
Gross |
|
Fair Value |
||||
|
Amortized |
|
Unrealized |
|
Unrealized |
|
(Net Carrying |
||||
|
Cost |
|
Gains |
|
Losses |
|
Amount) |
||||
Corporate debt securities |
$ |
19,453 |
|
$ |
6 |
|
$ |
(3) |
|
$ |
19,456 |
U.S. Treasury securities |
|
17,190 |
|
|
2 |
|
|
- |
|
|
17,192 |
Agency discount notes |
|
2,000 |
|
|
- |
|
|
- |
|
|
2,000 |
Commercial paper |
|
22,077 |
|
|
5 |
|
|
(13) |
|
|
22,069 |
Total securities |
$ |
60,720 |
|
$ |
13 |
|
$ |
(16) |
|
$ |
60,717 |
The Company’s specifically identified gross unrealized losses of $16 thousand relate to 15 different securities with total amortized cost of approximately $23.6 million at December 29, 2012. Because the Company does not intend to sell the investments at a loss and the Company will not be required to sell the investments before recovery of its amortized cost basis, it did not consider the investment in these securities to be other-than-temporarily impaired at December 29, 2012. Further, the securities with gross unrealized losses had been in a continuous unrealized loss position for less than 12 months as of December 29, 2012. All of the Company’s available-for-sale investments have contractual maturities of less than one year at December 29, 2012.
The following table is a summary of available-for-sale securities at March 31, 2012 (in thousands):
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Estimated |
||||
|
|
|
Gross |
|
Gross |
|
Fair Value |
||||
|
Amortized |
|
Unrealized |
|
Unrealized |
|
(Net Carrying |
||||
|
Cost |
|
Gains |
|
Losses |
|
Amount) |
||||
Corporate debt securities |
$ |
48,011 |
|
$ |
33 |
|
$ |
(19) |
|
$ |
48,025 |
U.S. Treasury securities |
|
30,264 |
|
|
1 |
|
|
(4) |
|
|
30,261 |
Agency discount notes |
|
16,789 |
|
|
8 |
|
|
(1) |
|
|
16,796 |
Commercial paper |
|
23,719 |
|
|
5 |
|
|
(15) |
|
|
23,709 |
Total securities |
$ |
118,783 |
|
$ |
47 |
|
$ |
(39) |
|
$ |
118,791 |
The Company’s specifically identified gross unrealized losses of $39 thousand relate to 37 different securities with total amortized cost of approximately $72.6 million at March 31, 2012. Because the Company does not intend to sell the investments at a loss and the Company will not be required to sell the investments before recovery of its amortized cost basis, it did not consider the investment in these securities to be other-than-temporarily impaired at March 31, 2012. Further, the securities with gross unrealized losses had been in a continuous unrealized loss position for less than 12 months as of March 31, 2012.
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4. Fair Value of Financial Instruments
The Company has determined that the only assets and liabilities in the Company’s financial statements that are required to be measured at fair value on a recurring basis are the Company’s cash equivalents and investment portfolio assets. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
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• |
Level 1 - Quoted prices in active markets for identical assets or liabilities. |
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• |
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. |
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|
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• |
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 investment portfolio assets consist of money market funds, commercial paper, corporate debt, U.S. Treasury securities, and obligations of U.S. government-sponsored enterprises, and are reflected on our consolidated condensed balance sheet under the headings cash and cash equivalents, marketable securities, and long-term marketable securities. The Company determines the fair value of its investment portfolio assets by obtaining non-binding market prices from its third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. As of December 29, 2012, the Company classified its investment portfolio assets as Level 1 or Level 2 inputs. The Company has no Level 3 assets. There were no transfers between Level 1, Level 2, or Level 3 measurements for the nine month period ended December 29, 2012.
The fair value of our financial assets at December 29, 2012, was determined using the following inputs (in thousands):
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Quoted Prices |
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|
||||
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in Active |
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Significant |
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|
||||
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Markets for |
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Other |
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Significant |
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||||
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Identical |
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Observable |
|
Unobservable |
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|
||||
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Assets |
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Inputs |
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Inputs |
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||||
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Level 1 |
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Level 2 |
|
Level 3 |
|
Total |
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
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Money market funds |
$ |
52,883 |
|
$ |
- |
|
$ |
- |
|
$ |
52,883 |
Commercial paper |
|
- |
|
|
3,999 |
|
|
- |
|
|
3,999 |
|
$ |
52,883 |
|
$ |
3,999 |
|
$ |
- |
|
$ |
56,882 |
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
Corporate debt securities |
$ |
- |
|
$ |
19,456 |
|
$ |
- |
|
$ |
19,456 |
U.S. Treasury securities |
|
17,192 |
|
|
- |
|
|
- |
|
|
17,192 |
Agency discount notes |
|
- |
|
|
2,000 |
|
|
- |
|
|
2,000 |
Commercial paper |
|
- |
|
|
22,069 |
|
|
- |
|
|
22,069 |
|
$ |
17,192 |
|
$ |
43,525 |
|
$ |
- |
|
$ |
60,717 |
The fair value of our financial assets at March 31, 2012, was determined using the following inputs (in thousands):
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|
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|
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|
|
|
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Quoted Prices |
|
|
|
|
|
|
||||
|
in Active |
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Significant |
|
|
|
|
||||
|
Markets for |
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Other |
|
Significant |
|
|
||||
|
Identical |
|
Observable |
|
Unobservable |
|
|
||||
|
Assets |
|
Inputs |
|
Inputs |
|
|
||||
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
Money market funds |
$ |
40,557 |
|
$ |
- |
|
$ |
- |
|
$ |
40,557 |
Commercial paper |
|
- |
|
|
15,952 |
|
|
- |
|
|
15,952 |
Corporate debt securities |
|
- |
|
|
1,112 |
|
|
- |
|
|
1,112 |
|
$ |
40,557 |
|
$ |
17,064 |
|
$ |
- |
|
$ |
57,621 |
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
Corporate debt securities |
$ |
- |
|
$ |
48,025 |
|
$ |
- |
|
$ |
48,025 |
U.S. Treasury securities |
|
30,261 |
|
|
- |
|
|
- |
|
|
30,261 |
Agency discount notes |
|
- |
|
|
16,796 |
|
|
- |
|
|
16,796 |
Commercial paper |
|
- |
|
|
23,709 |
|
|
- |
|
|
23,709 |
|
$ |
30,261 |
|
$ |
88,530 |
|
$ |
- |
|
$ |
118,791 |
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5. Accounts Receivable, net
The following are the components of accounts receivable, net (in thousands):
|
|
|
|
|
|
|
December 29, |
|
March 31, |
||
|
2012 |
|
2012 |
||
Gross accounts receivable |
$ |
171,076 |
|
$ |
44,524 |
Allowance for doubtful accounts |
|
(393) |
|
|
(371) |
|
$ |
170,683 |
|
$ |
44,153 |
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6. Inventories
Inventories are comprised of the following (in thousands):
|
|
|
|
|
|
|
December 29, |
|
March 31, |
||
|
2012 |
|
2012 |
||
Work in process |
$ |
70,341 |
|
$ |
30,921 |
Finished goods |
|
64,682 |
|
|
24,994 |
|
$ |
135,023 |
|
$ |
55,915 |
The increase in inventory balances at December 29, 2012, as compared to March 31, 2012, is primarily related to the expected increased demand for our products, and reflects planned inventory builds.
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7. Asset Sale
The Company entered into an agreement to sell certain assets associated with Apex Precision Power (“Apex”) products in Tucson, Arizona for $26.1 million. On August 17, 2012, the Company closed the transaction under this agreement. After closing the transaction, the Company maintained a high voltage / high power IC design team in Tucson. See Note 9 for information regarding the subsequent closure and relocation of the Tucson design center. The Company received $22.2 million in cash and has recorded a long-term note receivable for $3.9 million to be paid in its entirety by August 17, 2014.
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8. Revolving Line of Credit
On April 19, 2012, the Company entered into a revolving credit agreement (“Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent and issuing lender, Barclays Bank, as syndication agent, Wells Fargo Securities, LLC and Barclays Capital, as joint lead arrangers and co-book managers. The aggregate borrowing limit under the unsecured revolving credit facility is $100 million with a $15 million letter of credit sublimit and is intended to provide the Company with short-term borrowings for working capital and other general corporate purposes. The interest rate payable is, at the Company's election, (i) a base rate plus the applicable margin, where the base rate is determined by reference to the highest of 1) the prime rate publicly announced by the administrative agent, 2) the Federal Funds Rate plus 0.50%, and 3) LIBOR for a one month period plus the difference between the applicable margin for LIBOR rate loans and the applicable margin for base rate loans, or (ii) the LIBOR rate plus the applicable margin that varies according to the leverage ratio of the borrower. Certain representations and warranties are required under the Credit Agreement, and the borrower must be in compliance with specified financial covenants, including (i) the requirement that the Company maintain a ratio of consolidated funded indebtedness to consolidated EBITDA of not greater than 1.75 to 1.0, computed in accordance with the terms of the Credit Agreement, and (ii) a minimum ratio of consolidated EBITDA to consolidated interest expense of not less than 3.50 to 1.0. At December 29, 2012, the Company was in compliance with these covenants.
At December 29, 2012, the Company had no outstanding amounts under the facility.
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9. Restructuring Costs
On November 6, 2012, the Company committed to a plan (the “Plan”) to close its Tucson, Arizona design center and move those operations, including development efforts related to motor control technology, to the Company’s headquarters in Austin, Texas. This restructuring eliminated approximately 25 employees in Tucson, Arizona, or 4% of the Company’s total workforce, as well as relocated to Austin, Texas approximately 20 positions, which are primarily research and development positions. As of December 29, 2012, the closure was materially completed.
The Company incurred a one-time charge for relocation, severance-related items and facility-related costs to operating expenses totaling $3.5 million in the third quarter of fiscal year 2013, presented as a separate line item on the consolidated condensed statement of comprehensive income in operating expenses under the caption “Restructuring and other costs, net,” which will be paid over the remainder of fiscal year 2013 through calendar year 2015. The charge includes $1.1 million in relocation and related costs and $2.4 million in facility related costs and other related charges.
Of the $3.5 million expense incurred, approximately $0.2 million was paid during the third quarter, and consisted primarily of severance-related costs. As of December 29, 2012, we have a remaining restructuring accrual of $3.3 million, included in “Other accrued liabilities” on the consolidated condensed balance sheet.
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10. 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. Our income tax expense is primarily a non-cash charge due to the utilization of U.S. net operating losses.
The following table presents the provision for income taxes and the effective tax rates (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
December 29, |
|
December 31, |
|
December 29, |
|
December 31, |
||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
||||
Income before income taxes |
$ |
106,174 |
|
$ |
26,440 |
|
$ |
167,265 |
|
$ |
58,911 |
Provision for income taxes |
$ |
38,312 |
|
$ |
9,709 |
|
$ |
57,027 |
|
$ |
21,755 |
Effective tax rate |
|
36.1% |
|
|
36.7% |
|
|
34.1% |
|
|
36.9% |
Our income tax expense for the third quarter of fiscal year 2013 was slightly above the federal statutory rate primarily due to the effect of state income taxes and nondeductible expenses. Our income tax expense for the first nine months of fiscal year 2013 was slightly below the federal statutory rate primarily due to the release of valuation allowance on the Company’s deferred tax assets in the second quarter of fiscal year 2013. The release was due to the sale of assets to Apex, which generated sufficient capital gain to utilize a capital loss carry forward that was previously expected to expire unutilized. Our income tax expense for the third quarter and first nine months of fiscal year 2012 was slightly above the federal statutory rate primarily due to the effect of state income taxes and nondeductible expenses.
We had no unrecognized tax benefits as of December 29, 2012. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. Our policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 29, 2012, the balance of accrued interest and penalties was zero. No interest or penalties were incurred during the first nine months of fiscal year 2013.
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 2010 through 2012 remain open to examination by the major taxing jurisdictions to which we are subject.
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11. Legal Matters
From time to time, we are involved in legal proceedings concerning matters arising in connection with the conduct of our business activities. We regularly evaluate the status of legal proceedings in which we are involved, to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred and 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, if accruals are not appropriate.
For the cases described below, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought or specified; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition. However, the ultimate resolutions of these various proceedings and matters are inherently difficult to predict; as such, our operating results could be materially affected by the unfavorable resolution of one or more of these proceedings or matters for any particular period, depending, in part, upon the operating results for such period.
On June 4, 2012, U.S. Ethernet Innovations, LLC (the “Plaintiff”) filed suit against Cirrus Logic and two other defendants in the U.S. District Court, Eastern District of Texas. The Plaintiff alleges that Cirrus Logic infringed four U.S. patents relating to Ethernet technology. In its complaint, the Plaintiff indicated that it is seeking unspecified monetary damages, including up to treble damages for willful infringement. We answered the complaint on June 29, 2012 denying the allegations of infringement and seeking a declaratory judgment that the patents in suit were invalid and not infringed. On September 21, 2012, the Plaintiff amended its complaint to allege that we infringed on a fifth patent related to similar technology. We answered the amended complaint on October 8, 2012, again denying the allegations of infringement and seeking a declaratory judgment that the patents in suit were invalid and not infringed.
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12. Equity
Common Stock
The Company issued 0.3 million and 1.4 million shares of common stock for the three and nine month periods ended December 29, 2012, respectively, in connection with stock option exercises during the periods and grants to certain members of our Board of Directors. The Company issued 0.1 million and 0.3 million shares of common stock, respectively, for the three and nine month periods ended December 31, 2011, in connection with stock option exercises during the prior fiscal year and grants to certain members of our Board of Directors.
Earnings Per Share
Basic earnings 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 earnings per share is calculated by dividing net income by the weighted average number of common shares used in the basic earnings per share calculation, plus the equivalent number of common shares that would be issued assuming exercise or conversion of all potentially dilutive items outstanding. These potentially dilutive items consist primarily of outstanding stock options and restricted stock units.
The weighted average outstanding options excluded from our diluted calculation for the three and nine months ended December 29, 2012, were 924,000 and 309,000, respectively. The weighted average outstanding options excluded from our diluted calculation for the three and nine months ended December 31, 2011, were 1,254,000 and 1,043,000, respectively. These were excluded as the strike price of the options exceeded the average market price during the periods.
Share Repurchase Program
On November 4, 2010, we announced that our Board of Directors authorized an $80 million share repurchase program. As of December 31, 2011, the Company had repurchased 5.1 million shares at a cost of $79.5 million, or an average cost of $15.51 per share. For the nine months ended December 31, 2011, we purchased 4.9 million shares at a cost of $76.8 million, or an average cost of $15.63 per share. During the December 29, 2012 quarter, the Company completed this stock repurchase program and repurchased the remaining outstanding shares in conjunction with the new share repurchase program, announced below. There are no outstanding remaining available repurchase obligations under this plan. All repurchased common stock shares were retired.
On November 20, 2012, we announced that our Board of Directors authorized a share repurchase program of up to $200 million of the Company’s common stock. The Company repurchased 1.5 million shares of its common stock for $47.9 million (including the remaining $0.5 million available under the 2010 plan discussed above) during the third quarter of fiscal year 2013, at an average cost of $30.96 per share, leaving approximately $152.6 million available for repurchase under this plan as of December 29, 2012. 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 29, 2012.
|
13. 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 based on the aggregation of activity from its two product lines. Our CEO receives and uses enterprise-wide financial information to assess financial performance and allocate resources, rather than detailed information at a product line level. Additionally, our product lines have similar characteristics and customers. They share operations support functions such as sales, public relations, supply chain management, various research and development and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology. Therefore, there is no complete, discrete financial information maintained for these product lines.
Revenue from our product lines are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
December 29, |
|
December 31, |
|
December 29, |
|
December 31, |
||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
||||
Audio Products |
$ |
300,010 |
|
$ |
105,418 |
|
$ |
558,671 |
|
$ |
260,220 |
Energy Products |
|
10,123 |
|
|
16,950 |
|
|
44,242 |
|
|
55,992 |
|
$ |
310,133 |
|
$ |
122,368 |
|
$ |
602,913 |
|
$ |
316,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated |
||||
|
|
|
Gross |
|
Gross |
|
Fair Value |
||||
|
Amortized |
|
Unrealized |
|
Unrealized |
|
(Net Carrying |
||||
|
Cost |
|
Gains |
|
Losses |
|
Amount) |
||||
Corporate debt securities |
$ |
19,453 |
|
$ |
6 |
|
$ |
(3) |
|
$ |
19,456 |
U.S. Treasury securities |
|
17,190 |
|
|
2 |
|
|
- |
|
|
17,192 |
Agency discount notes |
|
2,000 |
|
|
- |
|
|
- |
|
|
2,000 |
Commercial paper |
|
22,077 |
|
|
5 |
|
|
(13) |
|
|
22,069 |
Total securities |
$ |
60,720 |
|
$ |
13 |
|
$ |
(16) |
|
$ |
60,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated |
||||
|
|
|
Gross |
|
Gross |
|
Fair Value |
||||
|
Amortized |
|
Unrealized |
|
Unrealized |
|
(Net Carrying |
||||
|
Cost |
|
Gains |
|
Losses |
|
Amount) |
||||
Corporate debt securities |
$ |
48,011 |
|
$ |
33 |
|
$ |
(19) |
|
$ |
48,025 |
U.S. Treasury securities |
|
30,264 |
|
|
1 |
|
|
(4) |
|
|
30,261 |
Agency discount notes |
|
16,789 |
|
|
8 |
|
|
(1) |
|
|
16,796 |
Commercial paper |
|
23,719 |
|
|
5 |
|
|
(15) |
|
|
23,709 |
Total securities |
$ |
118,783 |
|
$ |
47 |
|
$ |
(39) |
|
$ |
118,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices |
|
|
|
|
|
|
||||
|
in Active |
|
Significant |
|
|
|
|
||||
|
Markets for |
|
Other |
|
Significant |
|
|
||||
|
Identical |
|
Observable |
|
Unobservable |
|
|
||||
|
Assets |
|
Inputs |
|
Inputs |
|
|
||||
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
Money market funds |
$ |
52,883 |
|
$ |
- |
|
$ |
- |
|
$ |
52,883 |
Commercial paper |
|
- |
|
|
3,999 |
|
|
- |
|
|
3,999 |
|
$ |
52,883 |
|
$ |
3,999 |
|
$ |
- |
|
$ |
56,882 |
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
Corporate debt securities |
$ |
- |
|
$ |
19,456 |
|
$ |
- |
|
$ |
19,456 |
U.S. Treasury securities |
|
17,192 |
|
|
- |
|
|
- |
|
|
17,192 |
Agency discount notes |
|
- |
|
|
2,000 |
|
|
- |
|
|
2,000 |
Commercial paper |
|
- |
|
|
22,069 |
|
|
- |
|
|
22,069 |
|
$ |
17,192 |
|
$ |
43,525 |
|
$ |
- |
|
$ |
60,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices |
|
|
|
|
|
|
||||
|
in Active |
|
Significant |
|
|
|
|
||||
|
Markets for |
|
Other |
|
Significant |
|
|
||||
|
Identical |
|
Observable |
|
Unobservable |
|
|
||||
|
Assets |
|
Inputs |
|
Inputs |
|
|
||||
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
Money market funds |
$ |
40,557 |
|
$ |
- |
|
$ |
- |
|
$ |
40,557 |
Commercial paper |
|
- |
|
|
15,952 |
|
|
- |
|
|
15,952 |
Corporate debt securities |
|
- |
|
|
1,112 |
|
|
- |
|
|
1,112 |
|
$ |
40,557 |
|
$ |
17,064 |
|
$ |
- |
|
$ |
57,621 |
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
Corporate debt securities |
$ |
- |
|
$ |
48,025 |
|
$ |
- |
|
$ |
48,025 |
U.S. Treasury securities |
|
30,261 |
|
|
- |
|
|
- |
|
|
30,261 |
Agency discount notes |
|
- |
|
|
16,796 |
|
|
- |
|
|
16,796 |
Commercial paper |
|
- |
|
|
23,709 |
|
|
- |
|
|
23,709 |
|
$ |
30,261 |
|
$ |
88,530 |
|
$ |
- |
|
$ |
118,791 |
|
|
|
|
|
|
|
|
December 29, |
|
March 31, |
||
|
2012 |
|
2012 |
||
Gross accounts receivable |
$ |
171,076 |
|
$ |
44,524 |
Allowance for doubtful accounts |
|
(393) |
|
|
(371) |
|
$ |
170,683 |
|
$ |
44,153 |
|
|
|
|
|
|
|
|
December 29, |
|
March 31, |
||
|
2012 |
|
2012 |
||
Work in process |
$ |
70,341 |
|
$ |
30,921 |
Finished goods |
|
64,682 |
|
|
24,994 |
|
$ |
135,023 |
|
$ |
55,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
December 29, |
|
December 31, |
|
December 29, |
|
December 31, |
||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
||||
Income before income taxes |
$ |
106,174 |
|
$ |
26,440 |
|
$ |
167,265 |
|
$ |
58,911 |
Provision for income taxes |
$ |
38,312 |
|
$ |
9,709 |
|
$ |
57,027 |
|
$ |
21,755 |
Effective tax rate |
|
36.1% |
|
|
36.7% |
|
|
34.1% |
|
|
36.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
December 29, |
|
December 31, |
|
December 29, |
|
December 31, |
||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
||||
Audio Products |
$ |
300,010 |
|
$ |
105,418 |
|
$ |
558,671 |
|
$ |
260,220 |
Energy Products |
|
10,123 |
|
|
16,950 |
|
|
44,242 |
|
|
55,992 |
|
$ |
310,133 |
|
$ |
122,368 |
|
$ |
602,913 |
|
$ |
316,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|