Business Combinations

3 Months Ended

Jan. 02, 2015

Business Combinations [Abstract]

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS

On August 1, 2014, the Company entered into a joint venture, referred to as FilterCo, with Panasonic Corporation (“Panasonic”) with respect to the design, manufacture and sale of Panasonic’s surface acoustic wave (“SAW”) and temperature-compensated (“TC”) SAW filter products. The Company acquired a controlling 66% interest in FilterCo with the right to acquire from Panasonic and Panasonic’s right to sell to the Company (collectively the “purchase option”) the remaining 34% interest in FilterCo upon the second anniversary of the acquisition. As a result of the purchase option the Company consolidates 100% of FilterCo’s operations. During the three months ended January 2, 2015, Panasonic identified and contributed an additional $7.2 million of fixed assets related to filter production as well as additional employee related liabilities to FilterCo. The Company and Panasonic agreed upon these additional amounts and accordingly the working capital adjustment was increased by $6.9 million which resulted in the total fair value for FilterCo increasing to $240.1 million. These changes did not impact the preliminary determination of goodwill for the three months ended January 2, 2015. The Company considers the allocation of purchase price preliminary and subject to change within the measurement period of up to one year from the date of the acquisition.

As of January 2, 2015, the Company had accrued $17.8 million for the working capital adjustment that was classified in other current liabilities on the consolidated balance sheet.