☒ | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 95-2119684 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ (Do not check if a smaller reporting company) | Smaller reporting company | ☐ |
• | fluctuation in the Company’s future results; |
• | downturns in the business cycle; |
• | reduced demand for the Company’s products, including due to global economic conditions; |
• | business interruptions; |
• | the Company’s reliance on a limited number of suppliers and subcontractors for components and materials; |
• | potentially insufficient liability insurance if the Company’s products are found to be defective; |
• | obsolete inventories as a result of changes in demand and change in life cycles for the Company’s products; |
• | the Company’s inability to successfully develop and sell new products; |
• | lengthy and expensive product qualification processes without any assurance of product sales; |
• | the Company’s products failing to meet industry standards; |
• | the Company’s inability to protect intellectual property rights; |
• | the Company suffering losses if its products infringe the intellectual property rights of others; |
• | the Company’s need to commit resources to product production prior to receipt of purchase commitments; |
• | increased business risk from foreign customers; |
• | the Company’s foreign currency exposures; |
• | potential increased tax liabilities and effective tax rate if the Company needs to repatriate funds held by foreign subsidiaries; |
• | export restrictions and laws affecting the Company’s trade and investments; |
• | competition against larger, more established entities; |
• | increased competition due to industry consolidation; |
• | the loss of any one of the Company’s significant customers; |
• | volatility of customer demand; |
• | termination of a contract by a distributor; |
• | government regulations and other standards, including those that impose operational and reporting requirements; |
• | the Company’s failure to comply with applicable environmental regulations; |
• | compliance with conflict minerals regulations; |
• | increase in the Company’s cost of doing business as a result of having to comply with the codes of conduct of certain of the Company’s customers and suppliers; |
• | changes in tax laws and review by taxing authorities; |
• | taxation of the Company in other jurisdictions; |
• | the Company’s failure to maintain effective internal control over financial reporting and disclosure controls and procedures; |
• | the Company’s limited experience with government contracting; |
• | potential government investigations and inquiries; |
• | loss of the Company’s key personnel; |
• | risks associated with companies the Company has acquired in the past and may acquire in the future and the Company’s ability to successfully integrate acquired businesses and benefit from expected synergies; |
• | the Company may be required to recognize additional impairment charges; |
• | the Company may be adversely affected by new accounting pronouncements; |
• | the Company’s ability to generate cash to service its debt obligations; |
• | restrictive covenants in the Company’s credit agreement which may restrict its ability to pursue its business strategies; |
• | the Company’s reliance on certain critical information systems for the operation of its business; |
• | costs associated with the Company’s indemnification of certain customers, distributors and other parties; |
• | the Company’s share price could be subject to extreme price fluctuations; |
• | the impact on the Company’s common stock price if securities or industry analysts do not publish reports about the Company’s business or adversely change their recommendations regarding the Company’s common stock; |
• | anti-takeover provisions in the Company’s organizational documents could make an acquisition of the Company more difficult; |
• | the Company is subject to litigation risks which may be costly to defend; |
• | the Company’s ability to realize expected benefits from the implementation of a new enterprise resource planning (“ERP”) system, and disruption of the Company’s operations caused by the adjustment to the new ERP system and the transition from the Company’s legacy systems and databases. |
ITEM 1. | Financial Statements |
Three Months Ended | Nine Months Ended | ||||||||||||||
October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | ||||||||||||
Net sales | $ | 137,185 | $ | 115,810 | $ | 404,241 | $ | 371,610 | |||||||
Cost of sales | 56,120 | 46,226 | 162,877 | 148,050 | |||||||||||
Gross profit | 81,065 | 69,584 | 241,364 | 223,560 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Selling, general and administrative | 35,116 | 30,747 | 101,654 | 102,383 | |||||||||||
Product development and engineering | 25,600 | 26,855 | 77,097 | 84,771 | |||||||||||
Intangible amortization | 6,286 | 6,308 | 19,017 | 18,648 | |||||||||||
Gain on disposition of business operations | (25,036 | ) | — | (25,036 | ) | — | |||||||||
Changes in the fair value of contingent earn-out obligations | — | (14,186 | ) | (162 | ) | (13,618 | ) | ||||||||
Restructuring charge | — | 962 | — | 4,526 | |||||||||||
Total operating costs and expenses | 41,966 | 50,686 | 172,570 | 196,710 | |||||||||||
Operating income | 39,099 | 18,898 | 68,794 | 26,850 | |||||||||||
Interest expense, net | (1,890 | ) | (1,964 | ) | (5,857 | ) | (5,698 | ) | |||||||
Non-operating expense, net | (690 | ) | (777 | ) | (871 | ) | (1,152 | ) | |||||||
Income before taxes | 36,519 | 16,157 | 62,066 | 20,000 | |||||||||||
Provision for taxes | 5,743 | 5,453 | 15,424 | 9,750 | |||||||||||
Net income | $ | 30,776 | $ | 10,704 | $ | 46,642 | $ | 10,250 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.47 | $ | 0.16 | $ | 0.71 | $ | 0.16 | |||||||
Diluted | $ | 0.46 | $ | 0.16 | $ | 0.71 | $ | 0.15 | |||||||
Weighted average number of shares used in computing earnings per share: | |||||||||||||||
Basic | 65,549 | 65,117 | 65,331 | 65,920 | |||||||||||
Diluted | 66,206 | 65,217 | 65,899 | 66,251 |
Three Months Ended | Nine Months Ended | ||||||||||||||
October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | ||||||||||||
Net income | $ | 30,776 | $ | 10,704 | $ | 46,642 | $ | 10,250 | |||||||
Other comprehensive (loss) income: | |||||||||||||||
Foreign currency hedge: | |||||||||||||||
Unrealized (loss) gain on foreign currency cash flow hedges, net of tax | (422 | ) | — | 321 | — | ||||||||||
Adjustment for net gains realized and included in net income, net of tax | (88 | ) | — | (546 | ) | — | |||||||||
Interest rate hedge: | |||||||||||||||
Change in unrealized loss on interest rate cap, net of tax | — | — | — | (33 | ) | ||||||||||
Adjustment for net (loss) income realized and included in interest expense, net of tax | (37 | ) | 129 | 48 | 299 | ||||||||||
Benefit plans: | |||||||||||||||
Change in employee benefit plans, net of tax of $967 for the three and nine months ended October 30, 2016 | (3,429 | ) | — | (3,429 | ) | — | |||||||||
Other changes to comprehensive income | 129 | — | 129 | — | |||||||||||
Other comprehensive (loss) income, net of tax | (3,847 | ) | 129 | (3,477 | ) | 266 | |||||||||
Total comprehensive income | $ | 26,929 | $ | 10,833 | $ | 43,165 | $ | 10,516 |
October 30, 2016 | January 31, 2016 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 297,939 | $ | 211,810 | |||
Accounts receivable, less allowances of $8,103 at October 30, 2016 and $7,793 at January 31, 2016 | 59,193 | 44,132 | |||||
Inventories | 62,679 | 63,875 | |||||
Prepaid taxes | 6,982 | 5,236 | |||||
Other current assets | 11,917 | 16,168 | |||||
Total current assets | 438,710 | 341,221 | |||||
Non-current assets: | |||||||
Property, plant and equipment, net of accumulated depreciation of $156,549 at October 30, 2016 and $143,782 at January 31, 2016 | 95,547 | 101,006 | |||||
Deferred tax assets | 8,711 | 7,354 | |||||
Goodwill | 329,703 | 329,703 | |||||
Other intangible assets, net | 68,064 | 88,430 | |||||
Other assets | 60,314 | 43,803 | |||||
TOTAL ASSETS | $ | 1,001,049 | $ | 911,517 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 43,931 | $ | 35,486 | |||
Accrued liabilities | 43,731 | 41,204 | |||||
Deferred revenue | 11,026 | 8,628 | |||||
Current portion - long-term debt | 19,094 | 18,569 | |||||
Total current liabilities | 117,782 | 103,887 | |||||
Non-current liabilities: | |||||||
Deferred tax liabilities | 22,462 | 6,802 | |||||
Long term debt, less current portion | 228,795 | 239,177 | |||||
Other long-term liabilities | 46,115 | 33,600 | |||||
Stockholders’ equity: | |||||||
Common stock, $0.01 par value, 250,000,000 shares authorized, 78,136,144 issued and 65,598,116 outstanding on October 30, 2016 and 78,136,144 issued and 64,998,368 outstanding on January 31, 2016 | 785 | 785 | |||||
Treasury stock, at cost, 12,538,028 shares as of October 30, 2016 and 13,137,776 shares as of January 31, 2016 | (256,138 | ) | (266,175 | ) | |||
Additional paid-in capital | 384,150 | 379,508 | |||||
Retained earnings | 459,922 | 413,280 | |||||
Accumulated other comprehensive (loss) income | (2,824 | ) | 653 | ||||
Total stockholders’ equity | 585,895 | 528,051 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,001,049 | $ | 911,517 |
Nine Months Ended | |||||||
October 30, 2016 | October 25, 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 46,642 | $ | 10,250 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and impairments | 35,506 | 36,534 | |||||
Accretion of deferred financing costs and debt discount | 492 | 1,054 | |||||
Deferred income taxes | 15,659 | 4,366 | |||||
Share-based compensation | 21,198 | 13,398 | |||||
(Gain) loss on disposition of business operations and assets | (24,988 | ) | 23 | ||||
Earn-out liabilities | (162 | ) | (13,618 | ) | |||
Environmental reserve | (68 | ) | 2,855 | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | (15,994 | ) | 14,577 | ||||
Inventories | 1,302 | 2,694 | |||||
Prepaid expenses and other assets | (11,785 | ) | 5,975 | ||||
Accounts payable | 6,775 | 677 | |||||
Accrued liabilities | 8,885 | (15,631 | ) | ||||
Deferred revenue | 3,300 | 1,033 | |||||
Income taxes payable and prepaid taxes | (7,875 | ) | 2,086 | ||||
Other liabilities | 5,807 | 1,343 | |||||
Net cash provided by operating activities | 84,694 | 67,616 | |||||
Cash flows from investing activities: | |||||||
Purchase of property, plant and equipment | (13,754 | ) | (10,705 | ) | |||
Acquisitions, net of cash acquired | — | (44,432 | ) | ||||
Purchases of other investments | (3,248 | ) | (5,230 | ) | |||
Proceeds from disposition of business operations | 32,045 | — | |||||
Proceeds from sale of equity investments | 555 | 5,261 | |||||
Net cash provided by (used in) investing activities | 15,598 | (55,106 | ) | ||||
Cash flows from financing activities: | |||||||
Borrowings under line of credit | — | 35,000 | |||||
Payment for employee share-based compensation payroll taxes | (5,928 | ) | (6,070 | ) | |||
Proceeds from exercises of stock options | 1,678 | 3,965 | |||||
Repurchase of outstanding common stock | (539 | ) | (57,311 | ) | |||
Payment of long term debt | (9,374 | ) | (26,063 | ) | |||
Net cash used in financing activities | (14,163 | ) | (50,479 | ) | |||
Net increase (decrease) in cash and cash equivalents | 86,129 | (37,969 | ) | ||||
Cash and cash equivalents at beginning of period | 211,810 | 230,328 | |||||
Cash and cash equivalents at end of period | $ | 297,939 | $ | 192,359 |
(in thousands) | At March 4, 2015 | ||
Current assets | $ | 877 | |
Property, plant, and equipment, net | 226 | ||
Core technologies | 10,000 | ||
Customer relationships | 2,000 | ||
Goodwill | 49,384 | ||
Current liabilities | (1,287 | ) | |
Earn-out liability | (16,200 | ) | |
Total acquisition consideration | $ | 45,000 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(in thousands, except per share amounts) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||||||
Net income | $ | 30,776 | $ | 10,704 | $ | 46,642 | $ | 10,250 | |||||||
Weighted average common shares outstanding - basic | 65,549 | 65,117 | 65,331 | 65,920 | |||||||||||
Dilutive effect of options and restricted stock units | 657 | 100 | 568 | 331 | |||||||||||
Weighted average common shares outstanding - diluted | 66,206 | 65,217 | 65,899 | 66,251 | |||||||||||
Basic earnings per common share | $ | 0.47 | $ | 0.16 | $ | 0.71 | $ | 0.16 | |||||||
Diluted earnings per common share | $ | 0.46 | $ | 0.16 | $ | 0.71 | $ | 0.15 | |||||||
Anti-dilutive shares not included in the above calculations | 989 | 3,728 | 1,498 | 2,392 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(in thousands) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||||||
Revenue offset | $ | 3,669 | $ | — | $ | 3,669 | $ | — | |||||||
Cost of sales | 360 | 197 | 1,108 | 1,071 | |||||||||||
Selling, general and administrative | 3,965 | 2,933 | 12,001 | 6,006 | |||||||||||
Product development and engineering | 1,401 | 1,987 | 4,420 | 6,320 | |||||||||||
Share-based compensation | $ | 9,395 | $ | 5,117 | $ | 21,198 | $ | 13,397 | |||||||
Net change in share-based compensation capitalized into inventory | $ | 124 | $ | (233 | ) | $ | 106 | $ | 45 |
Three Months Ended | Nine Months Ended | ||||||
October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | ||||
Expected lives, in years | 4.2 | 4.2 | 4.1 - 4.5 | 4.2 - 4.3 | |||
Estimated volatility | 32% | 32% | 32% | 29% - 32% | |||
Dividend yield | — | — | — | — | |||
Risk-free interest rate | 1.0% | 1.3% | 1.1% - 1.3% | 1.24% - 1.29% | |||
Weighted average fair value on grant date | $7.10 | $4.80 | $5.67 | $6.09 |
(in thousands, except for per share amounts) | Number of Shares | Weighted Average Exercise Price (per share) | Aggregate Intrinsic Value | Aggregate Unrecognized Compensation | Number of Shares Exercisable | Weighted Average Contractual Term (in years) | ||||||||||||
Balance at January 31, 2016 | 1,507 | $ | 25.18 | $ | 962 | $ | 3,748 | 775 | ||||||||||
Options granted | 356 | 20.58 | ||||||||||||||||
Options exercised | (86 | ) | 19.17 | 482 | ||||||||||||||
Options cancelled/forfeited | (95 | ) | 22.10 | |||||||||||||||
Balance at October 30, 2016 | 1,682 | $ | 24.69 | $ | 3,419 | $ | 3,796 | 902 | ||||||||||
Exercisable at October 30, 2016 | 902 | $ | 26.30 | $ | 873 | 2.3 |
Subject to Share Settlement | Subject to Cash Settlement | Weighted Average Grant Date Fair Value (per unit) | Aggregate Unrecognized Compensation | Weighted Average Period Over Which Expected to be Recognized (in years) | ||||||||||||||||||
(in thousands, except for per unit amounts) | Total Units | Units | Units | Recorded Liability | ||||||||||||||||||
Balance at January 31, 2016 | 384 | 203 | 181 | $ | 237 | $ | 26.57 | $ | 1,925 | 1.5 | ||||||||||||
Performance-based units granted | 231 | 116 | 115 | 17.51 | ||||||||||||||||||
Performance-based units vested | — | — | — | — | ||||||||||||||||||
Performance-based units cancelled/forfeited | (12 | ) | (6 | ) | (6 | ) | 17.51 | |||||||||||||||
Change in liability | 621 | |||||||||||||||||||||
Balance at October 30, 2016 | 603 | 313 | 290 | $ | 858 | $ | 23.29 | $ | 7,989 | 1.3 |
Weighted Average Grant Date Fair Value (per unit) | Aggregate Unrecognized Compensation | Period Over Which Expected to be Recognized (in years) | ||||||||||
(in thousands, except for per unit amounts) | Total Units | |||||||||||
Balance at January 31, 2016 | 220 | $ | 15.59 | $ | 143 | 0.1 | ||||||
Market performance units granted | — | — | ||||||||||
Market performance units vested | — | — | ||||||||||
Market performance units cancelled/forfeited | — | — | ||||||||||
Balance at October 30, 2016 | 220 | $ | 15.59 | $ | — | 0.0 |
(in thousands, except for per unit amounts) | Number of Units | Weighted Average Grant Date Fair Value (per unit) | Aggregate Intrinsic Value (1) | Aggregate Unrecognized Compensation | Weighted Average Period Over Which Expected to be Recognized (in years) | |||||||||||
Balance at January 31, 2016 | 2,032 | $ | 23.70 | $ | 35,692 | 2.4 | ||||||||||
Restricted stock units granted | 1,147 | 21.76 | ||||||||||||||
Restricted stock units vested | (714 | ) | 25.28 | $ | 16,134 | |||||||||||
Restricted stock units forfeited | (270 | ) | 20.77 | |||||||||||||
Balance at October 30, 2016 | 2,195 | $ | 22.53 | $ | 41,348 | 2.6 |
(1) | Reflects the value of Semtech Corporation stock on the date that the restricted stock unit vested. |
(in thousands, except for per unit amounts) | Number of Units | Recorded Liability | Weighted Average Grant Date Fair Value (per unit) | Aggregate Unrecognized Compensation | Period Over Which Expected to be Recognized (in years) | |||||||||||
Balance at January 31, 2016 | 28 | $ | 3,870 | $ | 19.70 | $ | 221 | 0.4 | ||||||||
Restricted stock units granted | 25 | 23.40 | ||||||||||||||
Restricted stock units vested | (30 | ) | 19.65 | |||||||||||||
Restricted stock units forfeited | — | — | ||||||||||||||
Change in liability | 502 | |||||||||||||||
Balance at October 30, 2016 | 23 | $ | 4,372 | $ | 23.67 | $ | 403 | 0.6 |
(in thousands, except for per unit amounts) | Number of Units | Weighted Average Grant Date Fair Value (per unit) | Aggregate Intrinsic Value (1) | Aggregate Unrecognized Compensation | Period Over Which Expected to be Recognized (in years) | |||||||||||
Balance at January 31, 2016 | 24 | $ | 19.70 | $ | 186 | 0.4 | ||||||||||
Restricted stock units granted | 21 | 23.40 | ||||||||||||||
Restricted stock units vested | (25 | ) | 24.16 | $ | 616 | |||||||||||
Restricted stock units forfeited | — | — | ||||||||||||||
Balance at October 30, 2016 | 20 | $ | 23.67 | $ | 312 | 0.6 |
(1) | Reflects the value of Semtech Corporation stock on the date that the restricted stock unit vested. |
(in thousands, except for per Warrant Share amounts) | Number of Warrant Shares | Weighted Average Grant Date Fair Value (per Warrant Share) | Aggregate Intrinsic Value (1) | Aggregate Unrecognized Expense | ||||||||||
Balance at January 31, 2016 | — | $ | — | — | $ | — | ||||||||
Warrant shares granted | 1,087 | 27.74 | ||||||||||||
Warrant shares vested | (109 | ) | 27.74 | $ | 3,015 | |||||||||
Change in value | — | — | 23,674 | |||||||||||
Balance at October 30, 2016 | 978 | $ | 27.74 | $ | 23,674 |
(1) | Reflects the value of Semtech Corporation Warrant Shares on the date the Warrant Shares vested. |
October 30, 2016 | January 31, 2016 | ||||||||||||||||||||||
(in thousands) | Market Value | Adjusted Cost | Gross Unrealized Gain | Market Value | Adjusted Cost | Gross Unrealized Gain | |||||||||||||||||
Cash equivalents | $ | 16,908 | $ | 16,908 | $ | — | $ | 16,866 | $ | 16,866 | $ | — | |||||||||||
Total investments | $ | 16,908 | $ | 16,908 | $ | — | $ | 16,866 | $ | 16,866 | $ | — |
October 30, 2016 | January 31, 2016 | ||||||||||||||
(in thousands) | Market Value | Adjusted Cost | Market Value | Adjusted Cost | |||||||||||
Within 1 year | $ | 16,908 | $ | 16,908 | $ | 16,866 | $ | 16,866 | |||||||
After 1 year through 5 years | — | — | — | — | |||||||||||
Total investments | $ | 16,908 | $ | 16,908 | $ | 16,866 | $ | 16,866 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(in thousands) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||||||
Unrealized gain (loss), net of tax | $ | — | $ | 129 | $ | (85 | ) | $ | 266 | ||||||
Increase to deferred tax liability | — | 74 | — | 172 |
Entity Name | Investment Value | ||||||
(in thousands) | October 30, 2016 | January 31, 2016 | |||||
MultiPhy Ltd. | $ | 14,000 | $ | 12,000 | |||
Skorpios Technologies Inc. | 3,000 | 3,000 | |||||
Guangdong Dapu Telecom Technology Co., Ltd. | 3,300 | 3,300 | |||||
Senet, Inc. | 1,900 | 1,900 | |||||
Jariet Technologies Inc. | — | — | |||||
Total | $ | 22,200 | $ | 20,200 |
Fair Value as of October 30, 2016 | Fair Value as of January 31, 2016 | ||||||||||||||||||||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||
Cash equivalents | $ | 16,908 | $ | 16,908 | $ | — | $ | — | $ | 16,866 | $ | 16,866 | $ | — | $ | — | |||||||||||||||
Derivative financial instruments | 215 | — | 215 | — | — | — | — | — | |||||||||||||||||||||||
Total financial assets | $ | 17,123 | $ | 16,908 | $ | 215 | $ | — | $ | 16,866 | $ | 16,866 | $ | — | $ | — | |||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||
Triune Earn-out | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Cycleo Earn-out | 1,295 | — | — | 1,295 | 1,457 | — | — | 1,457 | |||||||||||||||||||||||
Derivative financial instruments | 445 | — | 445 | — | — | — | — | — | |||||||||||||||||||||||
Total financial liabilities | $ | 1,740 | $ | — | $ | 445 | $ | 1,295 | $ | 1,457 | $ | — | $ | — | $ | 1,457 |
(in thousands) | Cycleo | Triune | Total | ||||||||
Balance at January 31, 2016 | $ | 1,457 | $ | — | $ | 1,457 | |||||
Changes in the fair value of contingent earn-out obligations | (162 | ) | — | (162 | ) | ||||||
Balance as of October 30, 2016 | $ | 1,295 | $ | — | $ | 1,295 |
(in thousands) | October 30, 2016 | January 31, 2016 | |||||
Raw materials | $ | 3,342 | $ | 2,094 | |||
Work in progress | 40,731 | 40,940 | |||||
Finished goods | 18,606 | 20,841 | |||||
Inventories | $ | 62,679 | $ | 63,875 |
(in thousands) | Signal Integrity | Power and High Reliability | Wireless and Sensing | Total | |||||||||||
Balance at January 31, 2016 | $ | 261,891 | $ | 49,384 | $ | 18,428 | $ | 329,703 | |||||||
Additions | — | — | — | — | |||||||||||
Balance at October 30, 2016 | $ | 261,891 | $ | 49,384 | $ | 18,428 | $ | 329,703 |
October 30, 2016 | January 31, 2016 | ||||||||||||||||||||||||
(in thousands) | Estimated Useful Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Core technologies | 5-8 years | $ | 144,930 | $ | (87,753 | ) | $ | 57,177 | $ | 148,210 | $ | (74,006 | ) | $ | 74,204 | ||||||||||
Customer relationships | 5-10 years | 30,030 | (19,147 | ) | 10,883 | 30,030 | (15,847 | ) | 14,183 | ||||||||||||||||
Technology licenses (1) | 2 years | 100 | (96 | ) | 4 | 100 | (57 | ) | 43 | ||||||||||||||||
Other intangibles assets | 1-5 years | 6,600 | (6,600 | ) | — | 6,600 | (6,600 | ) | — | ||||||||||||||||
Total finite-lived intangible assets | $ | 181,660 | $ | (113,596 | ) | $ | 68,064 | $ | 184,940 | $ | (96,510 | ) | $ | 88,430 |
(1) | Technology licenses relate to end-license agreements for intellectual property that is used by the Company in research and development activities and also has alternative future uses. Amortization expense related to technology licenses is reported as “Product development and engineering” within the unaudited condensed consolidated statements of income. |
(in thousands) | |||||||||||||||
To be recognized in: | Core Technologies | Customer Relationships | Technology Licenses | Total | |||||||||||
Remaining three months of fiscal year 2017 | $ | 5,188 | $ | 1,100 | $ | 4 | $ | 6,292 | |||||||
Fiscal year 2018 | 20,744 | 4,400 | — | 25,144 | |||||||||||
Fiscal year 2019 | 17,332 | 4,400 | — | 21,732 | |||||||||||
Fiscal year 2020 | 9,905 | 950 | — | 10,855 | |||||||||||
Fiscal year 2021 | 3,056 | 33 | — | 3,089 | |||||||||||
Thereafter | 952 | — | — | 952 | |||||||||||
Total expected amortization expense | $ | 57,177 | $ | 10,883 | $ | 4 | $ | 68,064 |
(in thousands) | |||
Balance at January 31, 2016 | $ | 8,432 | |
Additions based on tax positions related to the current year | 80 | ||
Reductions for tax positions of prior years, net | (121 | ) | |
Reductions for settlements with tax authorities | — | ||
Balance as of October 30, 2016 | $ | 8,391 |
(in thousands) | October 30, 2016 | January 31, 2016 | |||||
Deferred tax assets - non-current | $ | 7,121 | $ | 7,162 | |||
Other long-term liabilities | 1,270 | 1,270 | |||||
Total accrued taxes | $ | 8,391 | $ | 8,432 |
(in thousands) | Accrued Liability | Other-Long Term Liability | Total | ||||||||
Balance at January 31, 2016 | $ | 1,150 | $ | 4,180 | $ | 5,330 | |||||
Change in estimate | (499 | ) | 499 | — | |||||||
Utilization | (116 | ) | — | (116 | ) | ||||||
Balance at October 30, 2016 | $ | 535 | $ | 4,679 | $ | 5,214 |
Balance at October 30, 2016 | Balance at January 31, 2016 | ||||||||||||||||||||||
(in thousands) | Cycleo | Triune | Total | Cycleo | Triune | Total | |||||||||||||||||
Compensation expense | $ | 6,379 | $ | — | $ | 6,379 | $ | 4,397 | $ | — | $ | 4,397 | |||||||||||
Not conditional upon continued employment | 1,295 | — | 1,295 | 1,457 | — | 1,457 | |||||||||||||||||
Interest expense | 590 | — | 590 | 405 | — | 405 | |||||||||||||||||
Total liability | $ | 8,264 | $ | — | $ | 8,264 | $ | 6,259 | $ | — | $ | 6,259 | |||||||||||
Amount expected to be settled within twelve months | $ | 1,829 | $ | — | $ | 1,829 | $ | 2,155 | $ | — | $ | 2,155 |
Three Months Ended | Nine Months Ended | ||||||||||
(percentage of net sales) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||
Arrow (and affiliates) | 11 | % | 10 | % | 9 | % | 9 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
(in thousands) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||||||
Semiconductor Products Group | $ | 137,185 | $ | 115,795 | $ | 404,036 | $ | 369,690 | |||||||
All others | — | 15 | 205 | 1,920 | |||||||||||
Total | $ | 137,185 | $ | 115,810 | $ | 404,241 | $ | 371,610 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(in thousands) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||||||
Semiconductor Products Group | $ | 33,013 | $ | 22,019 | $ | 92,973 | $ | 70,054 | |||||||
All others | 25,214 | (1,818 | ) | 22,738 | (6,375 | ) | |||||||||
Operating Income by segment | 58,227 | 20,201 | 115,711 | 63,679 | |||||||||||
Items to reconcile segment operating income to consolidated income before taxes | |||||||||||||||
Intangible amortization and impairments | 6,286 | 6,308 | 19,017 | 18,648 | |||||||||||
Share-based compensation | 9,395 | 5,117 | 21,199 | 13,397 | |||||||||||
Changes in the fair value of contingent earn-out obligations | — | (14,186 | ) | (162 | ) | (13,618 | ) | ||||||||
Restructuring charges | — | 962 | — | 4,526 | |||||||||||
Environmental reserve | — | — | — | 2,855 | |||||||||||
Other non-segment related (income) expenses | 3,139 | 2,792 | 5,938 | 10,073 | |||||||||||
Amortization of fair value adjustments related to acquired PP&E | 308 | 310 | 925 | 948 | |||||||||||
Interest expense, net | 1,890 | 1,964 | 5,857 | 5,698 | |||||||||||
Non-operating expense, net | 690 | 777 | 871 | 1,152 | |||||||||||
Income before taxes | $ | 36,519 | $ | 16,157 | $ | 62,066 | $ | 20,000 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
(in thousands, except percentages) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||||||||||||||||||
Signal Integrity | $ | 60,550 | 44 | % | $ | 52,449 | 45 | % | $ | 193,745 | 48 | % | $ | 165,780 | 44 | % | |||||||||||
Protection | 40,250 | 29 | % | 33,225 | 29 | % | 108,296 | 27 | % | 105,339 | 28 | % | |||||||||||||||
Wireless and Sensing | 24,070 | 18 | % | 16,567 | 14 | % | 60,514 | 15 | % | 54,898 | 15 | % | |||||||||||||||
Power and High-Reliability | 15,984 | 12 | % | 13,554 | 12 | % | 45,150 | 11 | % | 43,673 | 12 | % | |||||||||||||||
Systems Innovation | — | — | % | 15 | — | % | 205 | — | % | 1,920 | 1 | % | |||||||||||||||
Other: Warrant Shares | (3,669 | ) | (3 | )% | — | — | % | (3,669 | ) | (1 | )% | — | — | % | |||||||||||||
Total net sales | $ | 137,185 | 100 | % | $ | 115,810 | 100 | % | $ | 404,241 | 100 | % | $ | 371,610 | 100 | % |
Three Months Ended | Nine Months Ended | ||||||||||
October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | ||||||||
Asia-Pacific | 80 | % | 70 | % | 79 | % | 72 | % | |||
North America | 16 | % | 20 | % | 16 | % | 18 | % | |||
Europe | 7 | % | 10 | % | 8 | % | 10 | % | |||
Other: Warrant Shares | (3 | )% | — | % | (3 | )% | — | % | |||
100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended | Nine Months Ended | ||||||||||
(percentage of total sales) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||
China (including Hong Kong) | 46 | % | 45 | % | 45 | % | 44 | % | |||
United States | 11 | % | 14 | % | 11 | % | 12 | % | |||
Other: Warrant Shares | (3 | )% | — | % | (3 | )% | — | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
(in thousands) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||||||
Domestic | $ | 937 | $ | 21,146 | $ | (13,048 | ) | $ | 3,785 | ||||||
Canada | 31,385 | 2,440 | 49,302 | 16,494 | |||||||||||
United Kingdom | 3,568 | 4,984 | 14,150 | 17,328 | |||||||||||
Switzerland | 764 | (13,411 | ) | 7,791 | (5,063 | ) | |||||||||
Japan | 344 | 1,424 | 2,470 | 2,486 | |||||||||||
Other Foreign | (479 | ) | (426 | ) | 1,401 | (15,030 | ) | ||||||||
Total | $ | 36,519 | $ | 16,157 | $ | 62,066 | $ | 20,000 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | ||||||||||||||||||||||||
(in thousands, except number of shares) | Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Repurchase Program expenditures | — | $ | — | 491,316 | $ | 7,464 | 23,968 | $ | 538 | 2,681,476 | $ | 57,311 |
(in thousands) | One-time employee termination benefits | ||
Balance at January 31, 2016 | $ | 342 | |
Adjustments | — | ||
Cash payments | (336 | ) | |
Balance at October 30, 2016 | $ | 6 |
(in thousands) | ||||||||||
Foreign Exchange Contracts | Number of Instruments | Buy Notional Value | Sell Notional Value | |||||||
Sell USD/Buy CHF Forward Contract | 3 | Fr. | 2,672 | $ | 2,732 | |||||
Sell USD/Buy CAD Forward Contract | 3 | C$ | 6,337 | $ | 4,532 | |||||
Sell USD/Buy GBP Forward Contract | 15 | £ | 10,744 | $ | 13,568 | |||||
Total | 21 |
Carrying Values of Derivative Instruments as of October 30, 2016 | ||||||||||||
(in thousands) | Fair Value - Assets (2) | Fair Value - (Liabilities) (2) | Derivative Net Carrying Value | |||||||||
Derivatives designated as hedging instruments | ||||||||||||
Foreign exchange contracts (1) | $ | 215 | $ | (445 | ) | $ | (230 | ) | ||||
Total derivatives | $ | 215 | $ | (445 | ) | $ | (230 | ) | ||||
Carrying Values of Derivative Instruments as of January 31, 2016 | ||||||||||||
Fair Value - Assets (2) | Fair Value - (Liabilities) (2) | Derivative Net Carrying Value | ||||||||||
Derivatives designated as hedging instruments | ||||||||||||
Foreign exchange contracts (1) | $ | — | $ | — | $ | — | ||||||
Total derivatives | $ | — | $ | — | $ | — |
(1) | Assets are included in “Other current assets” and liabilities are included in “Accrued liabilities” within the condensed consolidated balance sheets. |
(2) | The fair values of the foreign exchange forward contracts are valued using Level 2 inputs. Please refer to Note 7. |
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Location of Gain or Loss into Income (Effective Portion) | Amount of (Gain) Loss Reclassified from AOCI into Income (Effective Portion) | Location of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
(in thousands) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||||||||||||||||
Sell USD/Buy CHF Forward Contract | $ | (85 | ) | $ | — | SG&A | $ | (24 | ) | $ | — | SG&A | $ | (1 | ) | $ | — | ||||||||||
Sell USD/Buy CAD Forward Contract | (141 | ) | — | SG&A | (334 | ) | — | SG&A | — | — | |||||||||||||||||
Sell USD/Buy GBP Forward Contract | (196 | ) | — | SG&A | 270 | — | SG&A | (2 | ) | — | |||||||||||||||||
$ | (422 | ) | $ | — | $ | (88 | ) | $ | — | $ | (3 | ) | $ | — |
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Location of Gain or Loss into Income (Effective Portion) | Amount of (Gain) Loss Reclassified from AOCI into Income (Effective Portion) | Location of Gain or Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(in thousands) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||||||||||||||||
Sell USD/Buy CHF Forward Contract | $ | 51 | $ | — | SG&A | $ | (72 | ) | $ | — | SG&A | $ | — | $ | — | ||||||||||||
Sell USD/Buy CAD Forward Contract | 1,113 | — | SG&A | (909 | ) | — | SG&A | 5 | — | ||||||||||||||||||
Sell USD/Buy GBP Forward Contract | (843 | ) | — | SG&A | 435 | — | SG&A | (3 | ) | — | |||||||||||||||||
$ | 321 | $ | — | $ | (546 | ) | $ | — | $ | 2 | $ | — |
Three Months Ended | Nine Months Ended | ||||||||||||||
(in thousands) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||||||
Signal Integrity | $ | 60,550 | $ | 52,449 | $ | 193,745 | $ | 165,780 | |||||||
Protection | 40,250 | 33,225 | 108,296 | 105,339 | |||||||||||
Wireless and Sensing | 24,070 | 16,567 | 60,514 | 54,898 | |||||||||||
Power and High-Reliability | 15,984 | 13,554 | 45,150 | 43,673 | |||||||||||
Systems Innovation | — | 15 | 205 | 1,920 | |||||||||||
Other: Warrant Shares | (3,669 | ) | — | (3,669 | ) | — | |||||||||
Total | $ | 137,185 | $ | 115,810 | $ | 404,241 | $ | 371,610 |
(in thousands) | October 30, 2016 | January 31, 2016 | |||||
Deferred revenues | $ | 9,650 | $ | 5,991 | |||
Deferred cost of revenues | (1,822 | ) | (1,139 | ) | |||
Deferred revenue, net | 7,828 | 4,852 | |||||
Deferred product design and engineering recoveries | 3,198 | 3,776 | |||||
Total deferred revenue | $ | 11,026 | $ | 8,628 |
Three Months Ended | Nine Months Ended | ||||||||||
October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | ||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Cost of sales | 40.9 | % | 39.9 | % | 40.3 | % | 39.8 | % | |||
Gross profit | 59.1 | % | 60.1 | % | 59.7 | % | 60.2 | % | |||
Operating costs and expenses: | |||||||||||
Selling, general and administrative | 25.6 | % | 26.5 | % | 25.1 | % | 27.6 | % | |||
Product development and engineering | 18.7 | % | 23.2 | % | 19.1 | % | 22.8 | % | |||
Intangible amortization | 4.6 | % | 5.4 | % | 4.7 | % | 5.0 | % | |||
Gain on disposition of business operations | (18.2 | )% | — | % | (6.2 | )% | — | % | |||
Changes in the fair value of contingent earn-out obligations | — | % | (12.2 | )% | — | % | (3.7 | )% | |||
Restructuring charge | — | % | 0.8 | % | — | % | 1.2 | % | |||
Total operating costs and expenses | 30.6 | % | 43.8 | % | 42.7 | % | 52.9 | % | |||
Operating income | 28.5 | % | 16.3 | % | 17.0 | % | 7.2 | % | |||
Interest expense, net | (1.4 | )% | (1.7 | )% | (1.4 | )% | (1.5 | )% | |||
Non-operating expense, net | (0.5 | )% | (0.7 | )% | (0.2 | )% | (0.3 | )% | |||
Income before taxes | 26.6 | % | 14.0 | % | 15.4 | % | 5.4 | % | |||
Provision for taxes | 4.2 | % | 4.7 | % | 3.8 | % | 2.6 | % | |||
Net income | 22.4 | % | 9.2 | % | 11.5 | % | 2.8 | % | |||
Percentages may not add precisely due to rounding. |
Three Months Ended | Nine Months Ended | ||||||||||||||
(in thousands) | October 30, 2016 | October 25, 2015 | October 30, 2016 | October 25, 2015 | |||||||||||
Domestic | $ | 937 | $ | 21,146 | $ | (13,048 | ) | $ | 3,785 | ||||||
Canada | 31,385 | 2,440 | 49,302 | 16,494 | |||||||||||
United Kingdom | 3,568 | 4,984 | 14,150 | 17,328 | |||||||||||
Switzerland | 764 | (13,411 | ) | 7,791 | (5,063 | ) | |||||||||
Japan | 344 | 1,424 | 2,470 | 2,486 | |||||||||||
Other Foreign | (479 | ) | (426 | ) | 1,401 | (15,030 | ) | ||||||||
Total | $ | 36,519 | $ | 16,157 | $ | 62,066 | $ | 20,000 |
Three Months Ended | |||||||||||||
(in thousands, except percentages) | October 30, 2016 | October 25, 2015 | |||||||||||
Enterprise Computing | $ | 37,239 | 27 | % | $ | 31,700 | 27 | % | |||||
Industrial | 36,931 | 27 | % | 29,671 | 26 | % | |||||||
High-End Consumer (1) | 41,924 | 31 | % | 31,088 | 27 | % | |||||||
Communications | 24,760 | 18 | % | 23,351 | 20 | % | |||||||
Other: Warrant Shares | (3,669 | ) | (3 | )% | — | — | % | ||||||
Total | $ | 137,185 | 100 | % | $ | 115,810 | 100 | % |
(1) | Approximately $11.4 million and $7.4 million of our total net sales to Samsung Electronics (and affiliates) in the third quarter of fiscal years 2017 and 2016, respectively, were for products that target the handheld market (which includes mobile phones). This activity is included in the high-end consumer end-market category. |
Three Months Ended | Change | |||||||||||||||
(in thousands, except percentages) | October 30, 2016 | October 25, 2015 | ||||||||||||||
Selling, general and administrative | $ | 35,116 | 84 | % | $ | 30,747 | 61 | % | 14 | % | ||||||
Product development and engineering | 25,600 | 61 | % | 26,855 | 53 | % | (5 | )% | ||||||||
Intangible amortization | 6,286 | 15 | % | 6,308 | 12 | % | — | % | ||||||||
Gain on disposition of business operations | (25,036 | ) | (60 | )% | — | — | % | 100 | % | |||||||
Restructuring | — | — | % | 962 | 2 | % | (100 | )% | ||||||||
Changes in the fair value of contingent earn-out obligations | — | — | % | (14,186 | ) | (28 | )% | (100 | )% | |||||||
Total operating costs and expenses | $ | 41,966 | 100 | % | $ | 50,686 | 100 | % | (17 | )% |
Nine Months Ended | |||||||||||||
(in thousands, except percentages) | October 30, 2016 | October 25, 2015 | |||||||||||
Enterprise Computing | $ | 126,952 | 31 | % | $ | 101,266 | 27 | % | |||||
Industrial | 104,281 | 26 | % | 96,103 | 26 | % | |||||||
High-End Consumer (1) | 103,644 | 26 | % | 99,386 | 27 | % | |||||||
Communications | 73,033 | 18 | % | 74,855 | 20 | % | |||||||
Other: Warrant Shares | (3,669 | ) | (1 | )% | — | — | % | ||||||
Total | $ | 404,241 | 100 | % | $ | 371,610 | 100 | % |
(1) | Approximately $29.8 million and $24.2 million of our total net sales to Samsung Electronics (and affiliates) in the first nine months of fiscal years 2017 and 2016, respectively, were for products that target the handheld market (which includes mobile phones). This activity is included in the high-end consumer end-market category. |
Nine Months Ended | Change | |||||||||||||||
(in thousands, except percentages) | October 30, 2016 | October 25, 2015 | ||||||||||||||
Selling, general and administrative | $ | 101,654 | 59 | % | $ | 102,383 | 52 | % | (1 | )% | ||||||
Product development and engineering | 77,097 | 45 | % | 84,771 | 44 | % | (9 | )% | ||||||||
Intangible amortization | 19,017 | 11 | % | 18,648 | 9 | % | 2 | % | ||||||||
Gain on disposition of business operations | (25,036 | ) | (15 | )% | — | — | % | 100 | % | |||||||
Restructuring | — | — | % | 4,526 | 2 | % | (100 | )% | ||||||||
Changes in the fair value of contingent earn-out obligations | (162 | ) | — | % | (13,618 | ) | (7 | )% | (99 | )% | ||||||
Total operating costs and expenses | $ | 172,570 | 100 | % | $ | 196,710 | 100 | % | (12 | )% |
Nine Months Ended | |||||||
(in millions) | October 30, 2016 | October 25, 2015 | |||||
Sources of Cash | |||||||
Operating activities | $ | 84.7 | $ | 67.6 | |||
Proceeds from exercise of stock options | 1.7 | 4.0 | |||||
Proceeds from disposition of business operations | 32.0 | — | |||||
Proceeds from sale of investments | 0.6 | 5.3 | |||||
Borrowings under line of credit | — | 35.0 | |||||
$ | 119.0 | $ | 111.9 | ||||
Uses of Cash | |||||||
Capital expenditures on property, plant and equipment, net of sale proceeds | (13.8 | ) | (10.7 | ) | |||
Purchases of other investments | (3.3 | ) | (5.2 | ) | |||
Payment for employee share-based compensation payroll taxes | (5.9 | ) | (6.1 | ) | |||
Acquisitions, net of cash acquired | — | (44.4 | ) | ||||
Payment of long-term debt | (9.4 | ) | (26.1 | ) | |||
Repurchase of common stock | (0.5 | ) | (57.3 | ) | |||
$ | (32.9 | ) | $ | (149.8 | ) | ||
Effect of exchange rate increase on cash and cash equivalents | — | — | |||||
Net increase (decrease) in cash and cash equivalents | $ | 86.1 | $ | (37.9 | ) |
ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk |
ITEM 4. | Controls and Procedures |
ITEM 1. | Legal Proceedings |
ITEM 1A. | Risk Factors |
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Fiscal Month/Year | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares That May Yet Be Purchased Under The Program (1) | ||||||||||
August 2017 (08/01/16-08/28/16) | — | $ | — | — | $ | 62.2 | million | |||||||
September 2017 (08/29/16-09/25/16) | — | — | — | $ | 62.2 | million | ||||||||
October 2017 (09/26/16-10/30/16) | — | — | — | $ | 62.2 | million | ||||||||
Total activity | — | $ | — | — |
(1) | We maintain an active stock repurchasing program which was approved by our Board of Directors in March 2008. The stock repurchase program does not have an expiration date and our Board of Directors has authorized expansion of the program over the years. |
ITEM 3. | Defaults Upon Senior Securities |
ITEM 4. | Mine Safety Disclosures |
ITEM 5. | Other Information |
ITEM 6. | Exhibits |
Exhibit No. | Description | Location | ||
3.1 | Restated Certificate of Incorporation of Semtech Corporation | Exhibit 3.1 to our Quarterly Report on Form 10-Q for the quarterly period ended October 26, 2003 | ||
3.2 | Bylaws of Semtech Corporation | Exhibit 3.2 to our Annual Report on Form 10-K for the year ended January 27, 2008 | ||
10.1 | Warrant dated October 5, 2016 issued by Semtech Corporation to Comcast Cable Communications Management, LLC. | Exhibit 10.1 to our Current Report on Form 8-K filed on October 5, 2016 | ||
10.2 | Amended and Restated Credit Agreement dated November 15, 2016 entered into among Semtech Corporation, the guarantors party thereto, the lenders party thereto and HSBC Bank USA, National Association, as administrative agent and as swing line lender and L/C issuer. | Exhibit 10.1 to our Current Report on Form 8-K filed on November 16, 2016 | ||
31.1 | Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended | Filed herewith | ||
31.2 | Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended | Filed herewith | ||
32.1 | Certification of the Chief Executive Officer Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Exhibit 32.1 is being furnished and shall not be deemed “filed”) | Filed herewith | ||
32.2 | Certification of the Chief Financial Officer Pursuant 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Exhibit 32.2 is being furnished and shall not be deemed “filed”) | Filed herewith | ||
101.INS | XBRL Instance Document | Filed herewith | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith |
SEMTECH CORPORATION | |
Registrant | |
Date: November 30, 2016 | /s/ Mohan R. Maheswaran |
Mohan R. Maheswaran | |
President and Chief Executive Officer | |
Date: November 30, 2016 | /s/ Emeka N. Chukwu |
Emeka N. Chukwu | |
Executive Vice President and | |
Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Semtech Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Mohan R. Maheswaran |
Mohan R. Maheswaran |
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Semtech Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Emeka N. Chukwu |
Emeka N. Chukwu |
Executive Vice President and Chief Financial Officer |
1. | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Mohan R. Maheswaran |
Mohan R. Maheswaran |
President and Chief Executive Officer |
1. | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Emeka N. Chukwu |
Emeka N. Chukwu |
Executive Vice President and Chief Financial Officer |
Document And Entity Information - shares |
9 Months Ended | |
---|---|---|
Oct. 30, 2016 |
Nov. 25, 2016 |
|
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Oct. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | SEMTECH CORP | |
Entity Central Index Key | 0000088941 | |
Current Fiscal Year End Date | --01-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 65,636,833 |
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Net sales | $ 137,185 | $ 115,810 | $ 404,241 | $ 371,610 |
Cost of sales | 56,120 | 46,226 | 162,877 | 148,050 |
Gross profit | 81,065 | 69,584 | 241,364 | 223,560 |
Operating costs and expenses: | ||||
Selling, general and administrative | 35,116 | 30,747 | 101,654 | 102,383 |
Product development and engineering | 25,600 | 26,855 | 77,097 | 84,771 |
Intangible amortization | 6,286 | 6,308 | 19,017 | 18,648 |
Gain on disposition of business operations | (25,036) | 0 | (25,036) | 0 |
Changes in the fair value of contingent earn-out obligations | 0 | (14,186) | (162) | (13,618) |
Restructuring charge | 0 | 962 | 0 | 4,526 |
Total operating costs and expenses | 41,966 | 50,686 | 172,570 | 196,710 |
Operating income | 39,099 | 18,898 | 68,794 | 26,850 |
Interest expense, net | (1,890) | (1,964) | (5,857) | (5,698) |
Non-operating expense, net | (690) | (777) | (871) | (1,152) |
Income before taxes | 36,519 | 16,157 | 62,066 | 20,000 |
Provision for taxes | 5,743 | 5,453 | 15,424 | 9,750 |
Net income | $ 30,776 | $ 10,704 | $ 46,642 | $ 10,250 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.47 | $ 0.16 | $ 0.71 | $ 0.16 |
Diluted (in dollars per share) | $ 0.46 | $ 0.16 | $ 0.71 | $ 0.15 |
Weighted average number of shares used in computing earnings per share: | ||||
Basic (in shares) | 65,549 | 65,117 | 65,331 | 65,920 |
Diluted (in shares) | 66,206 | 65,217 | 65,899 | 66,251 |
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Net income | $ 30,776 | $ 10,704 | $ 46,642 | $ 10,250 |
Other comprehensive (loss) income: | ||||
Unrealized (loss) gain on foreign currency cash flow hedges, net of tax | (422) | 0 | 321 | 0 |
Adjustment for net gains realized and included in net income, net of tax | (88) | 0 | (546) | 0 |
Change in unrealized loss on interest rate cap, net of tax | 0 | 0 | 0 | (33) |
Adjustment for net (loss) income realized and included in interest expense, net of tax | (37) | 129 | 48 | 299 |
Change in employee benefit plans, net of tax of $967 for the three and nine months ended October 30, 2016 | (3,429) | 0 | (3,429) | 0 |
Other changes to comprehensive income | 129 | 0 | 129 | 0 |
Other comprehensive (loss) income, net of tax | (3,847) | 129 | (3,477) | 266 |
Total comprehensive income | $ 26,929 | $ 10,833 | $ 43,165 | $ 10,516 |
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Oct. 30, 2016 |
Oct. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Change in employee benefit plans, tax | $ 967 | $ 967 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, receivables | $ 8,103 | $ 7,793 |
Accumulated depreciation | $ 156,549 | $ 143,782 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 78,136,144 | 78,136,144 |
Common stock, shares outstanding | 65,598,116 | 64,998,368 |
Treasury stock, shares | 12,538,028 | 13,137,776 |
Organization and Basis of Presentation |
9 Months Ended |
---|---|
Oct. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Nature of Business Semtech Corporation (together with its subsidiaries, the “Company” or “Semtech”) is a global supplier of analog and mixed-signal semiconductor products. The end-customers for the Company’s products are primarily original equipment manufacturers (“OEM’s”) that produce and sell electronics. The Company designs, develops and markets a wide range of products for commercial applications, the majority of which are sold into the enterprise computing, communications, high-end consumer and industrial end-markets. Enterprise Computing: datacenters, passive optical networks, desktops, notebooks, servers, graphic boards, monitors, printers and other computer peripherals. Communications: base stations, optical networks, carrier networks, switches and routers, cable modems, wireless LAN and other communication infrastructure equipment. High-End Consumer: handheld products, smartphones, wireless charging, set-top boxes, digital televisions, tablets, digital video recorders and other consumer equipment. Industrial: video broadcast equipment, automated meter reading, Internet of Things (“IoT”), smart grid, wireless charging, military and aerospace, medical, security systems, automotive, industrial and home automation, video security and surveillance and other industrial equipment. Fiscal Year The Company reports results on the basis of 52 and 53 week periods and ends its fiscal year on the last Sunday in January. The other quarters generally end on the last Sunday of April, July and October. All quarters consist of 13 weeks except for one 14-week period in the fourth quarter of 53-week years. The third quarter of fiscal years 2017 and 2016 each consisted of 13 weeks. Principles of Consolidation The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company, in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to quarterly report on Form 10-Q under the Securities Exchange Act of 1934, as amended, and Article 10 of Regulation S-X. In the opinion of the Company, these unaudited statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, the financial position of the Company for the interim periods presented. All significant intercompany balances have been eliminated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, and the Company believes that the included disclosures are adequate to make the information presented not misleading. The Company evaluated all subsequent events through the date these interim unaudited condensed consolidated financial statements were issued. On March 4, 2015, the Company completed the acquisition of Triune Systems, L.L.C. (“Triune”). On January 13, 2015, the Company completed the acquisition of selected assets from EnVerv, Inc. (“EnVerv”). The interim unaudited condensed consolidated financial statements include the results of income of Triune and EnVerv commencing as of the acquisition dates. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2016. The results reported in these interim unaudited condensed consolidated financial statements should not be regarded as indicative of results that may be expected for any subsequent period or for the entire year. Segment Information The Company’s Chief Executive Officer (“CEO”) has been identified as the Chief Operating Decision Maker (“CODM”) as defined by guidance regarding segment disclosures (see Note 14 for further discussion). In fiscal year 2016, the Company updated its assessment of its operations in light of its restructuring efforts (see Note 17 for further discussion) and strategic business decisions. Based on this assessment, at that time the Company had identified five operating segments in total. Four of the operating segments aggregated into one reportable segment, the Semiconductor Products Group. The remaining operating segment, the Systems Innovation Group (shown as “All others”), could not be aggregated with the other operating segments and did not meet the criteria for a separate reportable segment as defined by the guidance regarding segment disclosure. As a result, the financial activity associated with the Systems Innovation Group was reported separately from the Company’s Semiconductor Products Group. This separate reporting was included in the “All others” category. On August 5, 2016, the Company completed its divestiture of its Snowbush Intellectual Property (“Snowbush IP”) business (previously part of the Company’s Systems Innovation Group) to Rambus Inc. (“Rambus”) for a purchase price of $32.0 million in cash along with the opportunity to receive additional payments from Rambus through 2022 based upon a percentage of sales by Rambus of new products expected to be developed by Rambus from the disposed assets. Beginning in the third quarter of fiscal year 2017, the Company no longer has a Systems Innovation Group or an “All others” category, and therefore has only four operating segments that aggregate into one reportable segment, the Semiconductor Products Group. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Derivatives and Hedging Activities Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging, provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. In accordance with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Recent Accounting Pronouncements On August 26, 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” The primary purpose of this ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. This ASU is effective for fiscal years beginning after December 15, 2017. This ASU will be effective for the Company as of the beginning of Fiscal 2019. Early adoption is permitted in any interim or annual period. The Company is in the process of determining the impact of the adoption of this guidance on its consolidated financial statements or notes thereto; however, it does not anticipate that the new guidance will have a significant impact on its consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842), which will require that substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The standard requires modified retrospective adoption and will be effective December 15, 2018, with early adoption permitted. The Company does not expect the adoption of this update to have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) Related to Simplifying the Measurement of Inventory which will apply to all inventory except inventory that is measured using last-in, first-out (“LIFO”) or the retail inventory method. Inventory measured using first-in, first-out or average cost is covered by the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the impact this update will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which will require an entity to recognize revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance addresses, in particular, contracts with more than one performance obligation, as well as the accounting for some costs to obtain or fulfill a contract with a customer, and provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. Public entities are required to apply the amendments on either a full- or modified-retrospective basis for annual periods beginning after December 15, 2017 and for interim periods within those annual periods. This update will be effective for the Company beginning in the first quarter of fiscal year 2019. Early adoption is not permitted. The Company is currently assessing the basis of adoption and evaluating the impact of the adoption of the update on its consolidated financial statements. |
Acquisitions |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure | Acquisitions Triune Systems, L.L.C On March 4, 2015, the Company acquired Triune Systems, L.L.C., a privately-held supplier of isolated switching, wireless charging and power management platforms targeted at, among other things, high and low power, high efficiency applications. Under the terms of the purchase agreement, the Company acquired all of the outstanding equity interest in Triune for a guaranteed minimum purchase price of $45.0 million consisting of $35.0 million in cash paid at closing, with an additional cash consideration of $10.0 million of which $9.5 million was paid in September 2015 and $0.5 million was paid in the second quarter of fiscal year 2017. In March 2015, the Company borrowed $35.0 million under its prior revolving line of credit in connection with this acquisition (see Note 10 for discussion regarding Credit Facilities). Subject to achieving certain future financial goals (“Triune Earn-out”), up to $70.0 million of contingent consideration will be paid over the next two years if certain net revenue targets are achieved in each of fiscal years 2017 and 2018. An additional payment of up to $16.0 million will be paid after fiscal year 2018 if certain cumulative net revenue and contribution margin targets are achieved. The Triune Earn-out targets for fiscal year 2016 were not met and the Company does not expect the fiscal year 2017 or 2018 targets to be achieved. The fair value of the Triune Earn-out liability was zero as of October 30, 2016. See Notes 7 and 12. The Triune business meets the definition of a business and is accounted for under the acquisition method of accounting in accordance with the FASB’s ASC Topic 805, Business Combinations. The purchase price allocation for the Triune acquisition was finalized in the second quarter of fiscal year 2016. Total acquisition consideration has been allocated to the acquired tangible and intangible assets and assumed liabilities of Triune based on their respective estimated fair values as of the acquisition date. Acquisition-related transaction costs are not included as a component of consideration transferred, but are accounted for as an expense in the period in which the costs are incurred. Any excess of the acquisition consideration over the fair value of the assets acquired and liabilities assumed has been allocated to goodwill. The goodwill resulted from expected synergies from the transaction, including complementary products that will enhance the Company’s overall product portfolio, and opportunities within new markets. The Company expects that all such goodwill will be deductible for tax purposes. The Company’s allocation of the total purchase price for Triune is summarized below:
Triune’s technology complemented the portfolio of products offered in the Company’s legacy Power and High-Reliability reporting unit. The Company concluded that the Triune and legacy Power and High-Reliability components should be aggregated and deemed a single reporting unit after considering similarities among different economic characteristics such as concentration of key customers, unit selling price decreases, increased competitors due to market expansion and chain of command of the newly acquired business. Net revenues and earnings attributable to Triune since the acquisition date have not been material. Pro forma results of operations have not been presented as Triune’s annual operating results are not material to the Company’s unaudited condensed consolidated financial statements. EnVerv, Inc. On January 13, 2015, the Company paid $4.9 million to acquire selected assets from EnVerv, Inc., a privately-held supplier of power line communications and Smart Grid solutions targeted at advanced metering infrastructure, home energy management systems and IoT applications. The Company has concluded that the acquired assets constituted a business and accordingly accounted for this transaction as a business combination. The purchase price allocation for the EnVerv acquisition was finalized in the first quarter of fiscal year 2016. Total acquisition consideration has been allocated to the acquired tangible and intangible assets and assumed liabilities based on their respective estimated fair values as of the acquisition date. The excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed has been allocated to goodwill. As of January 25, 2015, $1.4 million of the total acquisition consideration has been allocated to core technologies and $3.4 million has been allocated to goodwill. The remaining balance has been allocated to acquired tangible assets and assumed liabilities. The Company expects that all such goodwill will be deductible for tax purposes. Net revenues and earnings attributable to EnVerv since the acquisition date have not been material. Pro forma results of operations have not been presented as EnVerv’s annual operating results are not material to the Company’s unaudited condensed consolidated financial statements. |
Earnings Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings per Share The computation of basic and diluted earnings per common share is as follows:
Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the reporting period. Diluted earnings per common share incorporate the incremental shares issuable, calculated using the treasury stock method, upon the assumed exercise of stock options and the vesting of restricted stock. |
Revenue Recognition |
9 Months Ended |
---|---|
Oct. 30, 2016 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes product revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. Recovery of costs associated with product design and engineering services are recognized during the period in which services are performed. The product design and engineering recovery, when recognized, will be reported as a reduction to product development and engineering expense. Historically, these recoveries have not exceeded the cost of the related development efforts. The Company includes revenue related to technology licenses as part of “Net sales.” Historically, revenue from these arrangements has not been significant though it is part of the Company’s recurring ordinary business. The Company defers revenue recognition on shipment of products to certain customers, principally distributors, under agreements which provide for limited pricing credits or return privileges, until these products are sold through to end users or the return privileges lapse. For sales subject to certain pricing credits or return privileges, the amount of future pricing credits or inventory returns cannot be reasonably estimated given the relatively long period in which a particular product may be held by the customer. Therefore, the Company has concluded that sales to customers under these agreements are not fixed and determinable at the date of the sale and revenue recognition has been deferred. The Company estimates the deferred gross margin on these sales by applying an average gross profit margin to the actual gross sales. The average gross profit margin is calculated for each category of material using standard costs which is expected to approximate actual costs at the date of sale. The estimated deferred gross margins on these sales, where there are no outstanding receivables, are recorded on the condensed consolidated balance sheets under the heading of “Deferred revenue.” The Company records a provision for estimated sales returns in the same period as the related revenues are recorded. The Company bases these estimates on historical sales returns and other known factors. Actual returns could be different from Company estimates and current provisions for sales returns and allowances, resulting in future charges to earnings. There were no significant impairments of deferred cost of sales in the third quarters of fiscal years 2017 or 2016. The Company records a provision for sales rebates in the same period as the related revenues are recorded. These estimates are based on sales activity during the period. Actual rebates given could be different from our estimates and current provisions for sales rebates, resulting in future charges to earnings. The estimated sales rebates for sales activity during the period where there are no outstanding receivables are recorded on the condensed consolidated balance sheets under the heading of “Accrued liabilities.” The portion of the estimated sales rebate where there are outstanding receivables is recorded on the balance sheet as a reduction to accounts receivable. |
Share-Based Compensation |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation Financial Statement Effects and Presentation. The following table summarizes pre-tax, share-based compensation included in the unaudited condensed consolidated statements of income for the three and nine months ended October 30, 2016 and October 25, 2015.
Grant Date Fair Values and Underlying Assumptions: Contractual Terms The Company uses the Black-Scholes pricing model to value stock options. The estimated fair value of restricted stock units, for which vesting is not linked to a market condition, is calculated based on the market price of the Company’s common stock on the date of grant. For restricted stock units that vest according to a market condition, the Company uses a Monte Carlo simulation model to value the award. Some of the restricted stock units granted in the first nine months of fiscal year 2017 and prior years are classified as liabilities rather than equity. For grants classified as equity, share-based compensation is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the grantee’s requisite service period. For grants classified as liabilities, share-based compensation is measured at fair value at the end of each reporting period until the date of settlement, and is recognized as an expense over the grantee’s requisite service period. Expected volatilities are based on historical volatility using daily and monthly stock price observations. The following table summarizes the assumptions used in the Black-Scholes model to determine the fair value of stock options granted in the three and nine months ended October 30, 2016 and October 25, 2015, respectively:
Stock Options. The Company has historically granted stock options to both employees and non-employee directors. The fair values of these grants were measured on the grant date. The grant dates for these awards are equal to the measurement date. These awards are valued as of the measurement date and recognized as an expense over the requisite vesting period (typically 3-4 years). The following table summarizes the activity for stock options for the nine months ended October 30, 2016:
Performance-Based Restricted Stock Units. The Company grants performance-based restricted stock units to select employees. These awards have a performance condition in addition to a service condition. The performance metrics are determined based on a pre-defined cumulative three-year performance of the Company’s net revenue and non-GAAP operating income measured against internal goals. The performance award which is granted in any fiscal year will be tied to the Company’s performance of that fiscal year and the succeeding two fiscal years. The performance award recipients must be employed for the entire three-year period, which is the explicit service and requisite service period, and be an active employee at the time of vesting of the awards (cliff vesting at the end of the third year). Under the terms of these awards, assuming the highest performance level of 200% with no cancellations due to forfeitures, the maximum number of shares that can be earned would be 582,032 shares and an additional 582,032 shares would be settled in cash. The Company would have a liability accrued under “Other liabilities” within the condensed consolidated balance sheets equal to the value of 582,032 shares on the settlement date, which would be settled in cash. Only cash performance-based restricted stock unit awards are classified as liabilities and the value of these awards is re-measured at each reporting date. At October 30, 2016, the performance metrics associated with the outstanding awards issued in fiscal years 2017 and 2016 are expected to be met at a level which would result in a grant at 190% and 0% of target, respectively. In the first quarter of fiscal year 2016, the Company granted performance-based vesting restricted stock units to select employees as part of the EnVerv acquisition. These awards have a performance condition in addition to a service condition. The performance metrics are determined based on a pre-defined net revenue target. In addition to the performance vesting condition, these awards have a requisite four year vesting term (which is also the requisite vesting period) whereby 25% will vest, subject to attainment of the performance condition, on each anniversary of the grant date. Under the terms of these awards, assuming the highest performance level of 100% with no cancellations due to forfeitures, the maximum number of shares that can be earned would be 24,000. At October 30, 2016, the performance metrics associated with the outstanding awards issued in fiscal year 2016 are not expected to be met which would result in none of the shares being issued. The performance-based restricted stock units are valued as of the measurement date and expense is recognized on a straight line basis for the awards expected to vest based on the probability of attainment of the performance condition for each separately vesting portion of the award. The following table summarizes the activity for performance-based restricted stock units for the nine months ended October 30, 2016:
Changes in the liability associated with performance-based restricted stock units, which is recorded in “Other long-term liabilities” within the condensed consolidated balance sheets, is due to changes in proportionate vesting and estimated forfeitures, re-measurement adjustments related to changes in market value and changes in the expected performance results. Market Performance Restricted Stock Units. On February 26, 2014, the Company granted its CEO restricted stock units with a market performance condition. The award is eligible to vest during the period commencing February 26, 2014 and ending February 26, 2019 (the “Performance Period”) as follows: 30% of the restricted stock units covered by the award will vest if, during any consecutive 120 calendar day period that commences and ends during the Performance Period, the average per-share closing price of the Company’s common stock equals or exceeds $35.00 (“Tranche 1”) and the award will vest in full if, during any consecutive 120 calendar day period that commences and ends during the Performance Period, the average per-share closing price of the Company’s common stock equals or exceeds $40.00 (“Tranche 2”). The award will also vest if a majority change in control of the Company occurs during the Performance Period and, in connection with such event, the Company’s stockholders become entitled to receive per-share consideration having a value equal to or greater than $40.00. The fair value of the awards was determined to be $17.26 and $14.88 for Tranche 1 and Tranche 2, respectively, on the grant date by application of the Monte Carlo simulation model. The following table summarizes the activity for market performance restricted stock units for the nine months ended October 30, 2016:
Restricted Stock Units, Employees. The Company grants restricted stock units to employees which are expected to be settled with stock. The grant date for these awards is equal to the measurement date. These awards are valued as of the measurement date and recognized as an expense over the requisite vesting period (typically 4 years). The following table summarizes the employees’ restricted stock unit activity for the nine months ended October 30, 2016:
Restricted Stock Units, Cash Settled, Non-Employee Directors. The Company maintains a compensation program pursuant to which restricted stock units are granted to the Company’s directors that are not employed by the Company or any of its subsidiaries. In June 2015, the Company changed its director compensation program so that a portion of the restricted stock units granted under the program would be settled in cash and a portion would be settled in stock. Restricted stock units awarded under the program are scheduled to vest on the earlier of (i) one year after the grant date or (ii) the day immediately preceding the annual meeting of shareholders in the year following the grant. The portion of a restricted stock unit award under the program that is to be settled in cash will, subject to vesting, be settled when the director who received the award separates from the board of directors. The portion of a restricted stock unit award under the program that is to be settled in stock will, subject to vesting, be settled promptly following vesting. There were no changes to the terms and conditions of the existing awards. The restricted stock units that are to be settled in cash are accounted for as liabilities. Because these awards are not typically settled until a non-employee director’s separation from service, the value of these awards is re-measured at the end of each reporting period until settlement. The following table summarizes the non-employee directors’ activity for restricted stock units settled in cash for the nine months ended October 30, 2016:
As of October 30, 2016, the total number of vested but unsettled restricted stock units for non-employee directors is 173,657 units. As of October 30, 2016, $4.4 million of the liability associated with these awards is included in “Other long-term liabilities” within the condensed consolidated balance sheets. Restricted Stock Units, Stock Settled, Non-Employee Directors. As a result of the June 2015 changes to the Company’s director compensation program, beginning in July 2015, the Company began granting new restricted stock units to non-employee directors which are expected to be settled with stock at the time of vesting. The grant date for these awards is equal to the measurement date. These awards are valued as of the measurement date and recognized as an expense over the requisite vesting period (typically one year). The following table summarizes the non-employee directors’ activity for restricted stock units settled with stock for the nine months ended October 30, 2016:
Modification of Awards On December 19, 2014 and August 17, 2015, the Company modified the equity awards of certain executive officers by providing for the acceleration of vesting upon termination of their employment in certain circumstances in connection with a change in control of the Company. These modifications impacted the stock awards of 12 executive employees and resulted in no incremental compensation cost for the fiscal year ended January 31, 2016 or the three or nine month periods ended October 30, 2016 and October 25, 2015. Warrant. On October 5, 2016 the Company issued a warrant (the “Warrant”) to Comcast Cable Communications Management LLC (“Comcast”) to purchase up to 1,086,957 shares (the “Warrant Shares”) of the Company’s common stock, par value $0.01 per share, representing a total of $30.0 million worth of common stock based on the average closing price over the 10-trading day period ending October 4, 2016, at an exercise price of $0.01 per Warrant Share. The Warrant provides for net share settlement that, if elected by Comcast, will reduce the number of Warrant Shares issued upon exercise to reflect net settlement of the exercise price. Comcast may also request cash settlement of the Warrant upon exercise in lieu of the issuance of Warrant Shares; however, such cash settlement is at the sole and absolute discretion of the Company. The Warrant vested 10% on its issuance, and the remainder vests based on the achievement during the subsequent 30-month period (“Milestone Period”) by Comcast (or its designee) of certain milestones related to the deployment of a LoRaWAN™-based network in cities around the country. The number of Warrant Shares are subject to customary adjustment provisions for stock split, reclassification, reorganization, consolidation, merger, and similar transactions. The Warrant has a term of seven years from October 5, 2016. The Warrant was issued by the Company to Comcast in connection with an agreement between the parties regarding the intended trial deployment by Comcast of a low-power wide-area Network (LPWAN) in the United States, based on the Company’s LoRa® Wireless Radio Frequency Technology. The Warrant is accounted for as equity. The cost of the Warrant is recognized as an offset to net sales over the respective performance period. The Warrant consists of five performance tranches. The cost associated with each tranche is recognized based on the fair value at each reporting date until vesting which is the measurement date. The following table summarizes the underlying Warrant Shares issued to Comcast for the nine months ended October 30, 2016:
Given the nominal exercise price of the Warrant Shares, the Company valued the awards using the closing price of the Company’s stock on the measurement date for shares that have vested and the fair value on the condensed consolidated balance sheets date for the other shares. As of October 30, 2016, no part of the Warrant has been exercised, and the Warrant has an estimated life of seven years. |
Investments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Investments that have original maturities of three months or less are accounted for as cash equivalents. This includes money market funds, time deposits and United States (“U.S.”) government obligations. Temporary and long-term investments consist of government, bank and corporate obligations, with original maturity dates in excess of three months. Temporary investments have original maturities in excess of three months, but mature within twelve months of the balance sheet date. Long-term investments have original maturities in excess of twelve months. The Company determines the cost of securities sold based on the specific identification method. Realized gains or losses are reported in “Non-operating expense, net” within the unaudited condensed consolidated statements of income. The Company classifies its investments as “available-for-sale” because it may sell some securities prior to maturity. The Company’s investments are subject to market risk, primarily interest rate and credit risks. The Company’s investments are managed by a limited number of outside professional managers that operate within investment guidelines set by the Company. These guidelines include specified permissible investments, minimum credit quality ratings and maximum average duration restrictions and are intended to limit market risk by restricting the Company’s investments to high quality debt instruments with relatively short-term maturities. As of October 30, 2016, the Company did not have any long-term investments. The following table summarizes the Company’s available-for-sale investments:
The following table summarizes the maturities of the Company’s available-for-sale investments:
Unrealized gains and losses are the result of fluctuations in the market value of the Company’s available-for-sale investments and are included in “Accumulated other comprehensive income” within the condensed consolidated balance sheets. The following table summarizes net unrealized losses arising in the periods presented in addition to the tax associated with these comprehensive income items:
The Company did not generate any significant interest income in the three or nine month periods ended October 30, 2016 and October 25, 2015. Equity and Cost Method Investments The Company accounts for its equity investments under the cost method of accounting when it does not have the ability to exercise significant influence over the investees. For investments where the Company has the ability to exercise significant influence, it uses the equity method of accounting. The Company’s total equity and cost method investments were $22.2 million and $20.2 million as of October 30, 2016 and January 31, 2016. All of these investments are in private companies and are included in “Other assets” within the condensed consolidated balance sheets. The Company has the following investments which are accounted for as cost method investments:
The Company evaluated its cost method investments for indicators of impairment at October 30, 2016. The Company did not identify any events or changes in circumstances that may have a significant adverse effect on the fair value of the investments and as a result did not estimate the fair value of its investments. On January 11, 2016, the Company announced that it had entered into a strategic agreement to accelerate the introduction of a 100Gbps single wavelength optical module solution. As part of this agreement, the Company made an investment under which the Company acquired preferred stock and a call option that is exercisable through June 30, 2018, that would allow the Company to purchase all of the outstanding equity of MultiPhy Ltd. (“MultiPhy”) at a fixed price. The Company does not expect to exercise this option within the next twelve months. |
Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Instruments Measured at Fair Value on a Recurring Basis Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented within the Company’s condensed consolidated balance sheets as follows:
During the nine months ended October 30, 2016, the Company had no transfers of financial assets or liabilities between Level 1, Level 2 or Level 3. As of October 30, 2016 and January 31, 2016, the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted. The Company’s available-for-sale securities consist primarily of money market accounts that do not have a stated maturity date. The fair values of the foreign exchange forward contracts are valued using Level 2 inputs. Foreign currency forward contracts are valued using readily available foreign currency forward and interest rate curves. The fair value of each contract is determined by comparing the contract rate to the forward rate and discounting to the present value. Contracts in a gain position are recorded in the condensed consolidated balance sheets under the caption “Other current assets” and the value of contracts in a loss position are recorded under the caption “Accrued liabilities” within the condensed consolidated balance sheets. Please see Note 19 for further discussion of the Company’s derivative instruments. The Triune Earn-out liability is valued utilizing estimates of annual revenue and operating income (Level 3 inputs) during a period of approximately two-years ending January 2018. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Cycleo Earn-out liability (see “Earn-out Liability” in Note 12) is valued utilizing estimates of annual revenue and operating income (Level 3 inputs) during a four-year period ending April 2020. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Company measures contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. The Company uses a Monte Carlo valuation method as a valuation technique to determine the value of the earn-out liability. The significant unobservable inputs used in the fair value measurements are revenue projections over the earn-out period, and the probability outcome percentages assigned to each scenario. Significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability, with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. For both the Triune Earn-out and Cycleo Earn-out, these companies have business profiles comparable to a start-up company. Accordingly, their respective revenue projections are subject to significant revisions. This characteristic has resulted in volatile changes to the measurement of fair value of the Triune Earn-out since the time of the Triune acquisition. The Company reviews and re-assesses the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could differ materially from the previous estimates. Changes in the estimated fair value of the Company’s contingent earn-out liabilities related to the time component of the present value calculation are reported in “Interest expense” within the unaudited condensed consolidated statements of income. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. A reconciliation of the change in the earn-out liability during the nine months ended October 30, 2016 is as follows:
Instruments Not Recorded at Fair Value on a Recurring Basis Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities include: cash and cash equivalents, net receivables, certain other assets, accounts payable, accrued expenses, accrued personnel costs, and other current liabilities. The Company’s long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes. The fair value of the Company’s Term Loans (as defined in Note 10) is $67.8 million and $77.1 million and Revolving Commitments (as defined in Note 10) is $181.0 million as of both October 30, 2016 and January 31, 2016, respectively. These are based on Level 2 inputs which are derived from transactions with similar amounts, maturities, credit ratings and payment terms. Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis The Company reduces the carrying amounts of its goodwill, intangible assets, long-lived assets and non-marketable equity securities to fair value when held for sale or determined to be impaired. For its investment in equity interests, the Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of its equity investments during the first nine months of fiscal year 2017. |
Inventories |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories, consisting of material, material overhead, labor, and manufacturing overhead, are stated at the lower of cost (first-in, first-out) or market and consist of the following:
|
Goodwill and Intangible Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill – Changes in the carrying amount of goodwill were as follows:
Goodwill is not amortized, but is tested for impairment using a two-step method on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair market value of the reporting unit. Goodwill is allocated to three reporting units (Signal Integrity, Power and High Reliability and Wireless and Sensing) (see Note 14). The difference between the fair value and the carrying amount of these reporting units is one of several factors the Company will consider before reaching its conclusion about whether to perform the first step of the goodwill impairment test. Goodwill was tested for impairment as of November 30, 2015, the date of the Company’s annual impairment review, at the reporting unit level for Signal Integrity, Power and High Reliability and Wireless and Sensing. The Company estimated the fair values using an income approach, as well as other generally accepted valuation methodologies. The cash flows for each reporting unit were based on discrete financial forecasts developed by management for planning purposes. Cash flows beyond the discrete forecasts were estimated using a terminal value calculation, which incorporated historical and forecasted financial trends for each identified reporting unit and considered perpetual earnings growth rates for publicly traded peer companies. Goodwill is measured at fair value on a non-recurring basis. That is, goodwill is not measured at fair value on an ongoing basis, but is subject to fair value adjustments using Level 3 inputs in certain circumstances (e.g., when there is evidence of impairment). At October 30, 2016, the Company concluded that there were no indicators of such impairment. Purchased Intangibles – The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions and technology licenses purchased, which continue to be amortized:
For the three months ended October 30, 2016 and October 25, 2015, amortization expense related to acquired finite-lived intangible assets was $6.3 million and $6.3 million, respectively. For the nine months ended October 30, 2016 and October 25, 2015, amortization expense related to acquired finite-lived intangible assets was $19.0 million and $18.6 million, respectively. Amortization expense related to acquired finite-lived intangible assets is reported as “Intangible amortization” within the unaudited condensed consolidated statements of income. The estimated annual amount of future amortization expense for all finite-lived intangible assets will be as follows:
As of October 30, 2016, the Company had no intangible assets classified as having an indefinite life. |
Credit Facilities |
9 Months Ended |
---|---|
Oct. 30, 2016 | |
Debt Instruments [Abstract] | |
Credit Facilities | Credit Facilities On May 2, 2013, Semtech Corporation, with each of its domestic subsidiaries as guarantors (the “Prior Guarantors”), entered into a credit agreement (the “Prior Credit Agreement”) with the lenders referred to therein (the “Prior Lenders”) and HSBC Bank USA, National Association, as administrative agent and as swing line lender and letter of credit issuer. In accordance with the Prior Credit Agreement, the Prior Lenders provided Semtech Corporation with senior secured first lien credit facilities in an aggregate principal amount of $400.0 million for a five year term, consisting of term loans in an aggregate initial principal amount of $150.0 million (the “Prior Term Loans”) and revolving credit commitments in an aggregate principal amount of $250.0 million (the “Prior Revolving Commitments”). The Prior Revolving Commitments contained sub-facilities that could be used as follows: up to $40.0 million for letters of credit, up to $25.0 million for Swing Line Loans (as defined below), and up to $40.0 million for revolving loans and letters of credit in certain currencies other than U.S. Dollars (“Alternative Currencies”). “Swing Line Loans” refer to Base Rate (as defined below) loans made in immediately available funds denominated in dollars by the swing line lender in its sole and absolute discretion. As of October 30, 2016, there were no amounts outstanding under the letters of credit, Swing Line Loans, and Alternative Currencies. Interest on loans made under the Prior Credit Agreement in U.S. Dollars accrued, at Semtech’s option, at a rate per annum equal to (1) the Base Rate plus a margin ranging from 0.25% to 1.25% depending upon Semtech’s consolidated leverage ratio or (2) London Interbank Offered Rate (“LIBOR”) (determined with respect to deposits in U.S. Dollars) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. The “Base Rate” is equal to a fluctuating rate equal to the highest of (a) the prime rate (as published by The Wall Street Journal), (b) ½ of 1% above the federal funds effective rate or (c) one-month LIBOR (determined with respect to deposits in U.S. Dollars) plus 1%. Interest on loans in Alternative Currencies, other than Canadian Dollars, accrued at a rate per annum equal to LIBOR (determined with respect to deposits in the applicable Alternative Currency) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. Interest on loans in Canadian Dollars accrued at a rate per annum equal to the CDOR Rate (as defined below) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. The “CDOR Rate” for any interest period is the rate equal to the sum of: (a) the rate determined by the administrative agent with reference to the arithmetic average of the discount rate quotations of all institutions listed for CAD Dollar-denominated bankers’ acceptances displayed and identified on the “Reuters Screen CDOR Page” and (b) 0.10% per annum. CDOR Commitment fees on the unused portion of the Prior Revolving Commitments accrued at a rate per annum ranging from 0.20% to 0.45% depending upon Semtech’s consolidated leverage ratio. Interest was payable monthly for a Base Rate loan and swing line loan and quarterly for a Euro dollar rate loan. As of October 30, 2016, the interest rates payable on both the Prior Term Loans and the Prior Revolving Commitments was 2.28%. As of October 30, 2016, there was $67.8 million outstanding under the Prior Term Loans and $181.0 million in revolving loans outstanding pursuant to the Prior Revolving Commitments. The Prior Term Loans and the Prior Revolving Commitments (and related revolving loans) were scheduled to mature on May 1, 2018. All obligations of Semtech Corporation under the Prior Credit Agreement were unconditionally guaranteed by each of the Prior Guarantors and were secured by a first priority security interest in substantially all of the assets of Semtech Corporation and the Prior Guarantors, subject to certain customary exceptions. Semtech Corporation and the Prior Guarantors were subject to customary covenants under the Prior Credit Agreement, including the maintenance of a minimum interest ratio of 3.50 to 1.00 and a maximum total consolidated leverage ratio of 3.00 to 1.00. Semtech Corporation and the Prior Guarantors were in compliance with such financial covenants as of October 30, 2016. The Prior Credit Agreement also contained customary provisions pertaining to events of default. If any event of default had occurred, the principal, interest, and any other monetary obligations on all the then outstanding amounts could have become due and payable immediately. On November 15, 2016, the Company, with each of its domestic subsidiaries as guarantors, entered into an amended and restated credit agreement (the “Amended and Restated Credit Agreement”) with the lenders referred to therein (the “Lenders”) and HSBC Bank USA, National Association, as administrative agent and as swing line lender and letter of credit issuer. The Amended and Restated Credit Agreement consists of a senior secured term A loan facility in the principal amount of $150.0 million and a senior secured revolving credit facility in the principal amount of $250.0 million, each of which is scheduled to mature in November 2021. The Amended and Restated Credit Agreement amended and restated the Prior Credit Agreement that was scheduled to mature in May of 2018 (see Note 20 for discussion regarding Subsequent Events). |
Income Taxes |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company’s effective tax rate differs from the statutory federal income tax rate of 35% due primarily to regional mix of income, valuation allowances in the U.S., and certain undistributed foreign earnings for which no U.S. taxes are provided because such earnings are intended to be indefinitely reinvested outside of the U.S. The Company uses a two-step approach to recognize and measure uncertain tax positions (“UTP”). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of net unrecognized tax benefits is as follows:
The gross unrecognized tax benefit (before federal impact of state items) was $10.6 million at both October 30, 2016 and January 31, 2016. Included in the balance of unrecognized tax benefits at October 30, 2016 and January 31, 2016, is $8.4 million and $8.4 million of net tax benefit (after federal impact of state items), respectively, that, if recognized, would impact the effective tax rate, subject to the valuation allowance. The liability for UTP is reflected within the condensed consolidated balance sheets as follows:
The Company’s policy is to include net interest and penalties related to unrecognized tax benefits within the provision for taxes within the unaudited condensed consolidated statements of income. The Company had approximately $293,000 of net interest and penalties accrued at October 30, 2016 and January 31, 2016. Tax years prior to 2012 (the Company’s fiscal year 2013) are generally not subject to examination by the U.S. Internal Revenue Service (“IRS”) except for items involving tax attributes that have been carried forward to tax years whose statute of limitations remains open. The Company is currently under IRS audit for fiscal years 2012 and 2013 and expects to close those audits within the next twelve months. The Company’s reserves for UTP’s are expected to be sufficient to address matters that may arise under examination. For state returns, the Company is generally not subject to income tax examinations for years prior to 2011 (the Company’s fiscal year 2012). The Company has a significant tax presence in Switzerland for which Swiss tax filings have been examined through fiscal year 2015. The Company is also subject to routine examinations by various foreign tax jurisdictions in which it operates. |
Commitments and Contingencies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments And Contingencies | Commitments and Contingencies In accordance with accounting standards regarding loss contingencies, the Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. The Company also discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its financial statements not to be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. The Company evaluates at least quarterly, developments in its legal matters that could affect the amount of liability that has been previously accrued, and makes adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount. The Company may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (i) if the damages sought are indeterminate; (ii) if the proceedings are in early stages, (iii) if there is uncertainty as to the outcome of pending appeals, motions or settlements, (iv) if there are significant factual issues to be determined or resolved, and (v) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any. From time to time, the Company is involved in various claims, litigation, and other legal actions that are normal to the nature of its business, including with respect to intellectual property, contract, product liability, employment, and environmental matters. The Company’s evaluation of legal matters and proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. While the consequences of certain unresolved matters and proceedings are not presently determinable, and an estimate of the probable and reasonably possible loss or range of loss in excess of amounts accrued for such proceedings cannot be reasonably made, an adverse outcome from such proceedings could have a material adverse effect on the Company’s earnings in any given reporting period. However, in the opinion of management, after consulting with legal counsel, and taking into account insurance coverage, any ultimate liability related to current outstanding claims and lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on the Company’s financial statements, as a whole. However, legal matters are inherently unpredictable and subject to significant uncertainties, some of which are beyond the Company’s control. As such, even though the Company intends to vigorously defend itself with respect to its legal matters, there can be no assurance that the final outcome of these matters will not materially and adversely affect the Company’s business, financial condition, results of operations, or cash flows. The Company’s currently pending legal matters of note are discussed below: Environmental Matters In 2001, the Company was notified by the California Department of Toxic Substances Control (“State”) that it may have liability associated with the clean-up of the one-third acre Davis Chemical Company site in Los Angeles, California. The Company has been included in the clean-up program because it was one of the companies that used the Davis Chemical Company site for waste recycling and/or disposal between 1949 and 1990. The Company joined with other potentially responsible parties that sent acetone to the site and entered into a Consent Order with the State that required the group to perform a soils investigation at the site and submit a remediation plan. The State has approved the remediation plan, which addressed the group’s initial obligations under the Consent Order. The Consent Order does not require the group to remediate the site and the State has indicated it intends to look to other parties for remediation. To date, the Company’s share of the group’s expenses has not been material and has been expensed as incurred. There is a pending settlement offer that would potentially resolve most, if not all, of the acetone group’s potential liability. More recently, the State has indicated that it will pursue a smaller group of parties for additional remediation and/or costs, in particular parties the State alleges provided chlorinated solvents for recycling, including the Company. Due to the fact that there are fewer parties that are alleged to have provided chlorinated solvent wastes, the potential share of this alleged liability is much larger than the Company’s share of acetone group potential liability. Settlement discussions regarding the potential liability for chlorinated solvents at the site have recently been initiated, but it is too soon to tell if those discussions will lead to a negotiated resolution of the issues. The Company has used an environmental firm, specializing in hydrogeology, to perform monitoring of the groundwater at the Company’s former facility in Newbury Park, California that was leased for approximately 40 years. The Company vacated the building in May 2002. Certain contaminants have been found in the local groundwater and site soils. The location of key soil contamination (and some related site groundwater impact associated with the soil contamination) is concentrated in and found to emanate from an area of an underground storage tank that the Company believes to have been installed and primarily used in the early 1960s by a former tenant at the site who preceded the Company’s tenancy. There are no litigation claims pending with respect to environmental matters at the Newbury Park site. The Los Angeles Regional Water Quality Control Board (“RWQCB”) having authority over the site issued joint instructions in November 2008, ordering the Company and the current owner of the site to perform additional assessments and surveys, and to create ongoing groundwater monitoring plans before any final regulatory action for “no further action” may be approved. In September 2009, the regulatory agency issued supplemental instructions to the Company and the current site owner regarding previously ordered site assessments, surveys and groundwater monitoring. In October 2013, an order was issued including a scope of proposed additional site work, monitoring, and proposed remediation activities. The Company filed appeals of the October 2013 order seeking reconsideration by the RWQCB and review by the State Water Resources Control Board (“SWRCB”) of the removal of two other potentially responsible parties, and seeking clarification of certain other factual findings. In April 2015, the RWQCB denied the Company’s request to name the two other potentially responsible parties to the order, but did correct certain findings of fact identified by the Company in its petition for reconsideration. The SWRCB has not yet ruled on the Company’s petition for review of the RWQCB’s action as the petition was filed with a request it be held in abeyance. The Company has been engaged with the regulatory agency, including technical discussion between the Company’s environmental firm and RWQCB staff, and has initiated the technical efforts to comply with the order. The Company submitted technical reports prepared by the environmental firm to the RWQCB and has received confirmation regarding the satisfaction of portions of the order. The Company also submitted a remedial action plan prepared by the environmental firm outlining the cleanup of soil, groundwater, and soil vapor at the site. The Company's contractors have installed new monitoring wells and have submitted plans and applications in order to initiate pilot testing of a soil vapor extraction system. The parties are continuing to work toward compliance with the October 2013 order and anticipate working cooperatively on any ultimate proposed cleanup and abatement work. The Company has accrued liabilities where it is probable that a loss will be incurred and the cost or amount of loss can be reasonably estimated. Based on the latest determinations by the RWQCB and the draft remedial action plan, the Company determined a revised range of probable loss between $5.2 million and $7.5 million. Given the uncertainties associated with environmental assessment and the remediation activities, the Company is unable to determine a best estimate within the range of loss. Therefore, the Company has recorded the minimum amount of probable loss as follows within the Company’s condensed consolidated balance sheets.
These estimates could change as a result of changes in planned remedial actions, further actions from the regulatory agency, remediation technology, and other factors. Indemnification The Company has entered into agreements with its current and former executives and directors indemnifying them against certain liabilities incurred in connection with the performance of their duties. The Company’s Certificate of Incorporation and Bylaws contain comparable indemnification obligations with respect to the Company’s current directors and employees. Product Warranties The Company’s general warranty policy provides for repair or replacement of defective parts. In some cases, a refund of the purchase price is offered. In certain instances the Company has agreed to other or additional warranty terms, including indemnification provisions. The product warranty accrual reflects the Company’s best estimate of probable liability under its product warranties. The Company accrues for known warranty issues if a loss is probable and can be reasonably estimated, and accrues for estimated incurred but unidentified issues based on historical experience. Historically, warranty expense has been immaterial to the Company’s consolidated financial statements. Earn-out Liability Pursuant to the terms of the amended earn-out arrangement (“Cycleo Amended Earn-out”) with the former stockholders of Cycleo SAS (“Cycleo Earn-out Beneficiaries”), which the Company acquired on March 7, 2012, the Company potentially may make payments totaling up to approximately $16.0 million based on the achievement of a combination of certain revenue and operating income milestones over a defined period (“Cycleo Defined Earn-out Period”). The Cycleo Defined Earn-out Period covers the period April 27, 2015 to April 26, 2020. For certain of the Cycleo Earn-out Beneficiaries, payment of the earn-out liability is contingent upon continued employment and is accounted for as post-acquisition compensation expense over the service period. The portion of the earn-out liability that is not dependent on continued employment is not considered as compensation expense. The Company recorded a liability for the Cycleo Amended Earn-out of $8.3 million and $6.3 million as of October 30, 2016 and January 31, 2016, respectively, of which $1.8 million is expected to be paid within twelve months. Pursuant to the terms of the Triune Earn-out with the former members of Triune (“Triune Earn-out Beneficiaries”), which the Company acquired on March 4, 2015, the Company potentially may make payments totaling up to approximately $70.0 million based on achievement of certain net revenue targets measured at each fiscal year end, starting with fiscal year 2016 and ending in fiscal year 2018. An additional payment of up to $16.0 million may be made based upon a combination of cumulative revenue and contribution margin targets measured from the acquisition date through the end of the Company’s fiscal year 2018. For certain of the Triune Earn-out Beneficiaries, payment of the earn-out liability is contingent upon continued employment and is accounted for as post-acquisition compensation expense over the service period. The portion of the earn-out liability that is not dependent on continued employment is not considered as compensation expense. The Triune Earn-out targets for fiscal year 2016 were not met and the Company does not expect the fiscal year 2017 or 2018 targets to be achieved. Refer to Note 7 for additional discussion regarding fair value measurements. A summary of earn-out liabilities by classification follows:
|
Concentration of Risk |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Risk | Concentration of Risk The following significant customers accounted for at least 10% of net sales in one or more of the periods indicated:
The Company did not have any customer that accounted for at least 10% of total net receivables as of October 30, 2016 or January 31, 2016. Outside Subcontractors and Suppliers The Company relies on a limited number of outside subcontractors and suppliers for the production of silicon wafers, packaging and certain other tasks. Disruption or termination of supply sources or subcontractors, including due to natural disasters such as an earthquake or other causes, could delay shipments and could have a material adverse effect on the Company. Although there are generally alternate sources for these materials and services, qualification of the alternate sources could cause delays sufficient to have a material adverse effect on the Company. Several of the Company’s outside subcontractors and suppliers, including third-party foundries that supply silicon wafers, are located in foreign countries, including China, Taiwan, Europe and Israel. The Company’s largest source of silicon wafers is an outside foundry located in China and a significant amount of the Company’s assembly and test operations are conducted by third-party contractors in China, Malaysia, Taiwan, Thailand, Korea and the Philippines. For the third quarter of fiscal years 2017 and 2016, respectively, approximately 24% and 29%, respectively, of the Company’s silicon in terms of cost of wafers was supplied by a third-party foundry in China, and these percentages could be higher in future periods. In the third quarter of fiscal year 2017, authorized distributors accounted for approximately 64% of the Company’s net sales compared to approximately 56% in the third quarter of fiscal year 2016. Generally, the Company does not have long-term contracts with its distributors and most can terminate their agreement with little or no notice. For the third quarter of fiscal year 2017, our two largest distributors were based in Asia. |
Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment information Segment Information The Company had five operating segments that existed prior to the third quarter of fiscal year 2017 and currently has four. The Company’s CEO functions as the CODM. The Company’s CODM makes operating decisions and assesses performance based on these operating segments. The four operating segments: Protection Products Group, Power and High Reliability Products Group, Signal Integrity Products Group, and Wireless and Sensing Products Group, all have similar economic characteristics and have been aggregated into one reportable segment identified in the table below as the “Semiconductor Products Group”. On August 5, 2016, the Company completed its divestiture of its Snowbush IP business. Beginning in the third quarter of fiscal year 2017, the Company no longer has a Systems Innovation Group or an “All others” category, which used to be a separate operating segment. The Company’s assets are commingled among the various reporting units and the CODM does not use that information in making operating decisions or assessing performance. Therefore, the Company has not included asset information by segment below. Net sales by segment are as follows:
Income by segment and reconciliation to consolidated operating income:
Information by Product Line The Company operates exclusively in the semiconductor industry and primarily within the analog and mixed-signal sector. The table below provides net sales activity by product line on a comparative basis for all periods.
The cost of the Warrant granted is recognized as an offset to net sales over the respective performance period (see Note 5 for discussion regarding Share-Based Compensation). Geographic Information The Company generates virtually all of its sales from its Semiconductor Products Group through sales of analog and mixed-signal devices. Net sales activity by geographic region is as follows:
The Company attributes sales to a country based on the ship-to address. The table below summarizes sales activity to countries that represented greater than 10% of total net sales for one or more of the periods presented:
The Company’s regional income (loss) from continuing operations before income taxes is as follows:
Additionally, the impact of the Warrant is included in the domestic performance above. |
Stock Repurchase Program |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Repurchase Program | Stock Repurchase Program Stock Repurchase Program The Company maintains a stock repurchase program that was initially approved by its Board of Directors in March 2008. The stock repurchase program does not have an expiration date and the Company’s Board of Directors has authorized expansion of the program over the years. The following table summarizes activity under the repurchase program for the three and nine month periods listed below:
As of October 30, 2016, the Company had repurchased $136.2 million in shares of its common stock under the program since inception and the current remaining authorization under the program is $62.2 million. Under the program, the Company may repurchase its common stock at any time or from time to time, without prior notice, subject to market conditions and other considerations. The Company’s repurchases may be made through Rule 10b5-1 or other trading plans, open market purchases, privately negotiated transactions, block purchases or other transactions. The Company intends to fund repurchases under the program from cash on hand. The Company has no obligation to repurchase any shares under the program and may suspend or discontinue it at any time. |
Divestitures |
9 Months Ended |
---|---|
Oct. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | Divestitures In the first quarter of fiscal year 2016, the Company completed its divestiture of its defense and microwave communications infrastructure business to Jariet Technologies, Inc. (“Jariet”) in exchange for an equity interest in that company. For the three months ended October 25, 2015, the defense and microwave communications infrastructure business accounted for $0.2 million in net revenue and non-recurring engineering (“NRE”) reimbursements. For the nine months ended October 25, 2015, the defense and microwave communications infrastructure business accounted for $4.3 million in net revenue and NRE reimbursements. This business was part of the Sierra Monolithics, Inc. acquisition completed by the Company in December 2009. Under the terms of the transaction with Jariet, the Company contributed assets, including inventory and equipment with a net book value of $0.6 million in exchange for an equity interest in the form of preferred stock, representing an approximately 21% voting interest in Jariet. Due to the anticipated continuing cash flows from its investment in Jariet, the Company did not account for the divestiture as a discontinued operation. In addition to the contribution of assets, certain contracts were novated with future performance responsibilities being transferred to Jariet. The investment in Jariet was written off in the third quarter of fiscal year 2016. On August 5, 2016, the Company completed its divestiture of its Snowbush IP business (previously part of the Company’s Systems Innovation Group) to Rambus for a purchase price of $32.0 million in cash along with the opportunity to receive additional payments from Rambus through 2022 based upon a percentage of sales by Rambus of new products expected to be developed by Rambus from the disposed assets. The Company recognized a gain of $25.0 million on the disposition of this business in the third quarter of fiscal year 2017, which is recorded in “Gain on disposition of business operations” within the condensed consolidated statements of income. The Company is accounting for any potential receipt of proceeds a gain contingency; therefore, any additional payments will be recognized as they are received. The cash proceeds from the disposition of this business are included in “Proceeds from disposition of business operations” within the cash flows from investing activities section of the unaudited condensed consolidated statements of cash flows. |
Restructuring |
9 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure | Restructuring During fiscal year 2016, Semtech Corporation announced a worldwide reduction in force as part of an overall plan to align operating expenses with business conditions and to leverage recent infrastructure investments. Restructuring related liabilities are included within “Accrued liabilities” within the condensed consolidated balance sheets as of October 30, 2016 and January 31, 2016, respectively. Restructuring charges, if any, are presented within “Restructuring charge” within the unaudited condensed consolidated statements of income. The following table summarizes the restructuring activity for the nine months ended October 30, 2016:
|
Variable Interest Entities |
9 Months Ended |
---|---|
Oct. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company analyzes its investments or other interests to determine whether it represents a variable interest in a variable interest entity (“VIE”). If so, the Company evaluates the facts to determine whether it is the primary beneficiary. The Company considers itself to be the primary beneficiary when it has both the power to direct activities of the VIE that most significantly impact the VIEs economic performance and the obligation to absorb losses from or the right to receive benefits of the VIE that could potentially be significant to the VIE. With regards to its investment in MultiPhy, the Company concluded that its equity interest represents a variable interest, but it is not the primary beneficiary as prescribed in ASC 810. Specifically, in reaching this conclusion, the Company considered the activities that most significantly drive profitability for MultiPhy and determined that the activity that most significantly drove profitability was related to the technology and related product road maps. The Company has a board observer role and thus concluded that it was not in a position of decision-making or other authority to influence MultiPhy’s activities that could be considered significant with respect to its operations, including research and development plans and changes to the product road map. As of October 30, 2016, the Company’s maximum exposure to loss as a result of its investment in MultiPhy is limited to the $14.0 million investment as described further in Note 6. As part of its investment in MultiPhy, the Company received a call option that would allow the Company to purchase all of the outstanding equity interests of MultiPhy. The call option, which is currently out of the money, is exercisable through June 30, 2018. |
Derivatives and Hedging Activities |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivatives and Hedging Activities The Company is exposed to certain risk arising from both its business operations and economic conditions and principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company, on a routine basis and in the normal course of business, experiences expenses denominated in Swiss Franc (“CHF”), Canadian Dollar (“CAD”) and Great British Pound (“GBP”). Such expenses expose the Company to exchange rate fluctuations between these foreign currencies and the U.S. Dollar (“USD”). The Company uses derivative financial instruments in the form of forward contracts, to mitigate risk associated with adverse movements in these foreign currency exchange rates on a portion of foreign denominated expenses expected to be realized during the current and following fiscal year. Currency forward contracts involve fixing the exchange rate for delivery of a specified amount of foreign currency on a specified date. The Company records all derivatives within the condensed consolidated balance sheets at fair value, with assets included in “Other current assets” and liabilities included in “Accrued liabilities”. The Company’s accounting treatment for these instruments is based on whether or not the instruments are designated as a hedging instrument. The Company is currently applying hedge accounting to all foreign currency derivatives and has designated these hedges as cash flow hedges. At October 30, 2016, the Company had the following outstanding foreign exchange contracts:
These contracts, with maturities extending into the subsequent fiscal year, met the criteria for cash flow hedges and the unrealized gains or losses, after tax, are recorded as a component of accumulated other comprehensive gain in shareholders’ equity. The effective portions of cash flow hedges are recorded in accumulated other comprehensive income (“AOCI”) until the hedged item is recognized in selling, general and administrative (“SG&A”) expense within the unaudited condensed consolidated statements of income when the underlying hedged expense is recognized. Any ineffective portions of cash flow hedges are recorded in “Non-operating (expense) income, net” within the Company’s unaudited condensed consolidated statements of income. The Company presents its derivative assets and liabilities at their gross fair values on the condensed consolidated balance sheets. The table below summarizes the carrying values of derivative instruments as of October 30, 2016 and January 31, 2016:
The following table summarizes the amount of income recognized from derivative instruments for the three months ended October 30, 2016 and October 25, 2015 as well as the line items within the accompanying unaudited condensed consolidated statements of income where the results are recorded for cash flow hedges:
The following table summarizes the amount of income recognized from derivative instruments for the nine months ended October 30, 2016 and October 25, 2015 as well as the line items within the accompanying unaudited condensed consolidated statements of income where the results are recorded for cash flow hedges:
The amount of losses, net of tax, related to the effective portion of derivative instruments designated as cash flow hedges included in “Accumulated other comprehensive income” within the condensed consolidated balance sheets as of October 30, 2016 and October 25, 2015 was $0.2 million and $0.0 million. Any gains or losses under these contracts are expected to be realized and reclassified to selling, general and administrative within the next fifteen months. |
Subsequent Events |
9 Months Ended |
---|---|
Oct. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 15, 2016 (the “Closing Date”), the Company, with certain of its domestic subsidiaries as guarantors (the “Guarantors”), entered into the Amended and Restated Credit Agreement with the Lenders, and HSBC Bank USA, National Association, as administrative agent and as swing line lender and letter of credit issuer. The Amended and Restated Credit Agreement amended and restated the Prior Credit Agreement. Pursuant to the Amended and Restated Credit Agreement, the Lenders provided the Company with senior secured first lien credit facilities in an aggregate principal amount of $400.0 million, consisting of term loans in an aggregate initial principal amount of $150.0 million and revolving commitments in an aggregate principal amount of $250.0 million. Up to $40.0 million of the revolving commitments may be used to obtain letters of credit, up to $25.0 million of the revolving commitments may be used to obtain swing line loans, and up to $40.0 million of the revolving commitments may be used to obtain revolving loans and letters of credit in certain currencies other than U.S. Dollars. Each of the term loans and the revolving commitments is scheduled to mature on November 12, 2021. As of November 15, 2016, there were no amounts outstanding under the letters of credit, swing line loans and alternative currency sub-facilities. As of November 15, 2016, $247.0 million of borrowings were outstanding under the Amended and Restated Credit Agreement, consisting of $150.0 million in term loans and $97.0 million in revolving loans, and there was $153.0 million of undrawn revolving commitments. The proceeds of the revolving credit facility may be used by the Company for capital expenditures, permitted acquisitions, permitted dividends, working capital and general corporate purposes. The Amended and Restated Credit Agreement provides that, subject to certain conditions, the Company may request the establishment of one or more additional term loan facilities and/or increases to the revolving commitments in an aggregate principal amount not to exceed the sum of (a) $150.0 million and (b) the aggregate principal amount of all voluntary prepayments of term loans made prior to the date of incurrence of such additional term loan facilities and/or increases to the revolving commitments. The Lenders will have an opportunity to, but are not required to participate in the additional term loan facilities and/or revolving commitment increases. If the Lenders do not agree to provide such incremental facilities, the Company may request such additional and/or increased facilities from additional lenders. Interest on loans made under the Amended and Restated Credit Agreement in U.S. Dollars accrues, at Semtech’s option, at a rate per annum equal to (1) the New Base Rate (as defined below) plus a margin ranging from 0.25% to 1.25% depending upon Semtech’s consolidated leverage ratio or (2) LIBOR (determined with respect to deposits in U.S. Dollars) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio (such margin, the “New Applicable Margin”). The initial interest margin will be 2.00% for Base Rate loans and 1.00% for LIBOR rate loans, applicable until 2 business days following delivery of a compliance certificate by Semtech to the administrative agent with respect to the first fiscal period ending after the Closing Date. The “New Base Rate” is equal to a fluctuating rate equal to the highest of (a) the prime rate of the administrative agent, (b) ½ of 1% above the federal funds effective rate published by the Federal Reserve Bank of New York and (c) one-month LIBOR (determined with respect to deposits in U.S. Dollars) plus 1.00%. Interest on loans made under the Amended and Restated Credit Agreement in alternative currencies accrues at a rate per annum equal to LIBOR (determined with respect to deposits in the applicable alternative currency) (other than loans made in Canadian Dollars, for which a special reference rate for Canadian Dollars applies) for an interest period to be selected by Semtech plus the New Applicable Margin. Commitment fees on the unused portion of the revolving commitments accrue at a rate per annum ranging from 0.20% to 0.45% depending upon Semtech’s consolidated leverage ratio, provided the initial commitment fee shall be 0.40% per annum, applicable until 2 business days following delivery of a compliance certificate by Semtech to the administrative agent with respect to the first fiscal period ending after the Closing Date. With respect to letters of credit, Semtech will pay the administrative agent, for the account of the lenders under the revolving credit facility, letter of credit participation fees at a rate per annum equal to the applicable margin then in effect with respect to LIBOR-based loans under the revolving commitments on the face amount of all outstanding letters of credit. Semtech will also pay HSBC Bank USA, N.A., as the issuing bank, a fronting fee for each letter of credit issued under the Amended and Restated Credit Agreement at a rate equal to 0.125% per annum based on the maximum amount available to be drawn under each such letter of credit, as well as its customary documentation fees. All obligations of Semtech under the Amended and Restated Credit Agreement are unconditionally guaranteed by each of the Guarantors, which currently consist of all of the direct and indirect domestic subsidiaries of Semtech. Semtech and the Guarantors have also pledged substantially all of their assets to secure their obligations under the Amended and Restated Credit Agreement, including Semtech’s owned real property located in Camarillo, California. The outstanding principal balance of the term loans will be subject to repayment in quarterly installments beginning on the last day of Semtech’s fiscal quarter ending closest to January 31, 2017 in an amount equal to $3,750,000 per quarter for the first two years after the Closing Date, $4,697,500 per quarter in the third and fourth years following the Closing Date, and $5,625,000 per quarter in the fifth year following the Closing Date, with the balance being due at maturity on November 12, 2021. No amortization is required with respect to the revolving credit facility. Semtech may voluntarily prepay borrowings under the Amended and Restated Credit Agreement at any time and from time to time, without premium or penalty, other than customary “breakage costs” and fees for LIBOR-based loans. The term loans must be mandatorily prepaid using the proceeds of certain dispositions of assets and receipt of insurance proceeds, subject to agreed-upon thresholds and exceptions and customary reinvestment rights. The Amended and Restated Credit Agreement contains customary covenants, including limitations on Company’s ability to, among other things, incur indebtedness, create liens on assets, engage in certain fundamental corporate changes, make investments, sell or otherwise dispose of assets, repurchase stock, pay dividends or make similar distributions, engage in certain transactions with affiliates and make capital expenditures. In addition, the Company must comply with the following financial covenants, tested at the end of each fiscal quarter on a trailing four-quarter basis: (i) a minimum consolidated interest coverage ratio of 3.00 to 1.00 and (ii) a maximum consolidated leverage ratio of 3.00 to 1.00 provided that, such maximum consolidated leverage ratio may be increased to 3.25 to 1.00 or 3.50 to 1.00, as applicable, for the four consecutive fiscal quarters ending on or after the date of consummation of a permitted acquisition which constitutes a “Material Acquisition” under the Amended and Restated Credit Agreement, subject to the satisfaction of certain conditions. |
Organization and Basis of Presentation (Policy) |
9 Months Ended |
---|---|
Oct. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Year | Fiscal Year The Company reports results on the basis of 52 and 53 week periods and ends its fiscal year on the last Sunday in January. The other quarters generally end on the last Sunday of April, July and October. All quarters consist of 13 weeks except for one 14-week period in the fourth quarter of 53-week years. The third quarter of fiscal years 2017 and 2016 each consisted of 13 weeks. |
Principles of Consolidation | Principles of Consolidation The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company, in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to quarterly report on Form 10-Q under the Securities Exchange Act of 1934, as amended, and Article 10 of Regulation S-X. In the opinion of the Company, these unaudited statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, the financial position of the Company for the interim periods presented. All significant intercompany balances have been eliminated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, and the Company believes that the included disclosures are adequate to make the information presented not misleading. The Company evaluated all subsequent events through the date these interim unaudited condensed consolidated financial statements were issued. On March 4, 2015, the Company completed the acquisition of Triune Systems, L.L.C. (“Triune”). On January 13, 2015, the Company completed the acquisition of selected assets from EnVerv, Inc. (“EnVerv”). The interim unaudited condensed consolidated financial statements include the results of income of Triune and EnVerv commencing as of the acquisition dates. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2016. The results reported in these interim unaudited condensed consolidated financial statements should not be regarded as indicative of results that may be expected for any subsequent period or for the entire year. |
Segment Information | Segment Information The Company’s Chief Executive Officer (“CEO”) has been identified as the Chief Operating Decision Maker (“CODM”) as defined by guidance regarding segment disclosures (see Note 14 for further discussion). In fiscal year 2016, the Company updated its assessment of its operations in light of its restructuring efforts (see Note 17 for further discussion) and strategic business decisions. Based on this assessment, at that time the Company had identified five operating segments in total. Four of the operating segments aggregated into one reportable segment, the Semiconductor Products Group. The remaining operating segment, the Systems Innovation Group (shown as “All others”), could not be aggregated with the other operating segments and did not meet the criteria for a separate reportable segment as defined by the guidance regarding segment disclosure. As a result, the financial activity associated with the Systems Innovation Group was reported separately from the Company’s Semiconductor Products Group. This separate reporting was included in the “All others” category. On August 5, 2016, the Company completed its divestiture of its Snowbush Intellectual Property (“Snowbush IP”) business (previously part of the Company’s Systems Innovation Group) to Rambus Inc. (“Rambus”) for a purchase price of $32.0 million in cash along with the opportunity to receive additional payments from Rambus through 2022 based upon a percentage of sales by Rambus of new products expected to be developed by Rambus from the disposed assets. Beginning in the third quarter of fiscal year 2017, the Company no longer has a Systems Innovation Group or an “All others” category |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Derivatives | Derivatives and Hedging Activities Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging, provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. In accordance with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The Company records all derivatives within the condensed consolidated balance sheets at fair value, with assets included in “Other current assets” and liabilities included in “Accrued liabilities”. The Company’s accounting treatment for these instruments is based on whether or not the instruments are designated as a hedging instrument. The Company is currently applying hedge accounting to all foreign currency derivatives |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On August 26, 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” The primary purpose of this ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. This ASU is effective for fiscal years beginning after December 15, 2017. This ASU will be effective for the Company as of the beginning of Fiscal 2019. Early adoption is permitted in any interim or annual period. The Company is in the process of determining the impact of the adoption of this guidance on its consolidated financial statements or notes thereto; however, it does not anticipate that the new guidance will have a significant impact on its consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842), which will require that substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The standard requires modified retrospective adoption and will be effective December 15, 2018, with early adoption permitted. The Company does not expect the adoption of this update to have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) Related to Simplifying the Measurement of Inventory which will apply to all inventory except inventory that is measured using last-in, first-out (“LIFO”) or the retail inventory method. Inventory measured using first-in, first-out or average cost is covered by the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the impact this update will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which will require an entity to recognize revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance addresses, in particular, contracts with more than one performance obligation, as well as the accounting for some costs to obtain or fulfill a contract with a customer, and provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. Public entities are required to apply the amendments on either a full- or modified-retrospective basis for annual periods beginning after December 15, 2017 and for interim periods within those annual periods. This update will be effective for the Company beginning in the first quarter of fiscal year 2019. Early adoption is not permitted. The Company is currently assessing the basis of adoption and evaluating the impact of the adoption of the update on its consolidated financial statements. |
Earnings Per Share | Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the reporting period. Diluted earnings per common share incorporate the incremental shares issuable, calculated using the treasury stock method, upon the assumed exercise of stock options and the vesting of restricted stock. |
Revenue Recognition | Revenue Recognition The Company recognizes product revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. Recovery of costs associated with product design and engineering services are recognized during the period in which services are performed. The product design and engineering recovery, when recognized, will be reported as a reduction to product development and engineering expense. Historically, these recoveries have not exceeded the cost of the related development efforts. The Company includes revenue related to technology licenses as part of “Net sales.” Historically, revenue from these arrangements has not been significant though it is part of the Company’s recurring ordinary business. The Company defers revenue recognition on shipment of products to certain customers, principally distributors, under agreements which provide for limited pricing credits or return privileges, until these products are sold through to end users or the return privileges lapse. For sales subject to certain pricing credits or return privileges, the amount of future pricing credits or inventory returns cannot be reasonably estimated given the relatively long period in which a particular product may be held by the customer. Therefore, the Company has concluded that sales to customers under these agreements are not fixed and determinable at the date of the sale and revenue recognition has been deferred. The Company estimates the deferred gross margin on these sales by applying an average gross profit margin to the actual gross sales. The average gross profit margin is calculated for each category of material using standard costs which is expected to approximate actual costs at the date of sale. The estimated deferred gross margins on these sales, where there are no outstanding receivables, are recorded on the condensed consolidated balance sheets under the heading of “Deferred revenue.” The Company records a provision for estimated sales returns in the same period as the related revenues are recorded. The Company bases these estimates on historical sales returns and other known factors. Actual returns could be different from Company estimates and current provisions for sales returns and allowances, resulting in future charges to earnings. There were no significant impairments of deferred cost of sales in the third quarters of fiscal years 2017 or 2016. The Company records a provision for sales rebates in the same period as the related revenues are recorded. These estimates are based on sales activity during the period. Actual rebates given could be different from our estimates and current provisions for sales rebates, resulting in future charges to earnings. The estimated sales rebates for sales activity during the period where there are no outstanding receivables are recorded on the condensed consolidated balance sheets under the heading of “Accrued liabilities.” The portion of the estimated sales rebate where there are outstanding receivables is recorded on the balance sheet as a reduction to accounts receivable. |
Share-based Compensation, Option and Incentive Plans | Grant Date Fair Values and Underlying Assumptions: Contractual Terms The Company uses the Black-Scholes pricing model to value stock options. The estimated fair value of restricted stock units, for which vesting is not linked to a market condition, is calculated based on the market price of the Company’s common stock on the date of grant. For restricted stock units that vest according to a market condition, the Company uses a Monte Carlo simulation model to value the award. Some of the restricted stock units granted in the first nine months of fiscal year 2017 and prior years are classified as liabilities rather than equity. For grants classified as equity, share-based compensation is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the grantee’s requisite service period. For grants classified as liabilities, share-based compensation is measured at fair value at the end of each reporting period until the date of settlement, and is recognized as an expense over the grantee’s requisite service period. Expected volatilities are based on historical volatility using daily and monthly stock price observations. |
Investments | Investments that have original maturities of three months or less are accounted for as cash equivalents. This includes money market funds, time deposits and United States (“U.S.”) government obligations. Temporary and long-term investments consist of government, bank and corporate obligations, with original maturity dates in excess of three months. Temporary investments have original maturities in excess of three months, but mature within twelve months of the balance sheet date. Long-term investments have original maturities in excess of twelve months. The Company determines the cost of securities sold based on the specific identification method. Realized gains or losses are reported in “Non-operating expense, net” within the unaudited condensed consolidated statements of income. |
Fair Value of Financial Instruments | Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis The Company reduces the carrying amounts of its goodwill, intangible assets, long-lived assets and non-marketable equity securities to fair value when held for sale or determined to be impaired. Instruments Not Recorded at Fair Value on a Recurring Basis Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities include: cash and cash equivalents, net receivables, certain other assets, accounts payable, accrued expenses, accrued personnel costs, and other current liabilities. The Triune Earn-out liability is valued utilizing estimates of annual revenue and operating income (Level 3 inputs) during a period of approximately two-years ending January 2018. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Cycleo Earn-out liability (see “Earn-out Liability” in Note 12) is valued utilizing estimates of annual revenue and operating income (Level 3 inputs) during a four-year period ending April 2020. These estimates represent inputs for which market data are not available and are developed using the best information available about the assumptions that market participants would use when pricing the liability. The Company measures contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. The Company uses a Monte Carlo valuation method as a valuation technique to determine the value of the earn-out liability. The significant unobservable inputs used in the fair value measurements are revenue projections over the earn-out period, and the probability outcome percentages assigned to each scenario. Significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability, with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. For both the Triune Earn-out and Cycleo Earn-out, these companies have business profiles comparable to a start-up company. Accordingly, their respective revenue projections are subject to significant revisions. This characteristic has resulted in volatile changes to the measurement of fair value of the Triune Earn-out since the time of the Triune acquisition. The Company reviews and re-assesses the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could differ materially from the previous estimates. Changes in the estimated fair value of the Company’s contingent earn-out liabilities related to the time component of the present value calculation are reported in “Interest expense” within the unaudited condensed consolidated statements of income. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. |
Goodwill | Goodwill is not amortized, but is tested for impairment using a two-step method on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair market value of the reporting unit. Goodwill is allocated to three reporting units (Signal Integrity, Power and High Reliability and Wireless and Sensing) (see Note 14). The difference between the fair value and the carrying amount of these reporting units is one of several factors the Company will consider before reaching its conclusion about whether to perform the first step of the goodwill impairment test. |
Product Warranties | The Company’s general warranty policy provides for repair or replacement of defective parts. In some cases, a refund of the purchase price is offered. In certain instances the Company has agreed to other or additional warranty terms, including indemnification provisions. The product warranty accrual reflects the Company’s best estimate of probable liability under its product warranties. The Company accrues for known warranty issues if a loss is probable and can be reasonably estimated, and accrues for estimated incurred but unidentified issues based on historical experience. Historically, warranty expense has been immaterial to the Company’s consolidated financial statements. |
Variable Interest Entities | The Company analyzes its investments or other interests to determine whether it represents a variable interest in a variable interest entity (“VIE”). If so, the Company evaluates the facts to determine whether it is the primary beneficiary. The Company considers itself to be the primary beneficiary when it has both the power to direct activities of the VIE that most significantly impact the VIEs economic performance and the obligation to absorb losses from or the right to receive benefits of the VIE that could potentially be significant to the VIE. |
Derivatives, Methods of Accounting, Hedging Derivatives | The effective portions of cash flow hedges are recorded in accumulated other comprehensive income (“AOCI”) until the hedged item is recognized in selling, general and administrative (“SG&A”) expense within the unaudited condensed consolidated statements of income when the underlying hedged expense is recognized. Any ineffective portions of cash flow hedges are recorded in “Non-operating (expense) income, net” within the Company’s unaudited condensed consolidated statements of income. The Company presents its derivative assets and liabilities at their gross fair values on the condensed consolidated balance sheets. |
Acquisitions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The Company’s allocation of the total purchase price for Triune is summarized below:
|
Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Common Share | The computation of basic and diluted earnings per common share is as follows:
|
Share-Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation Of Stock-Based Compensation | The following table summarizes pre-tax, share-based compensation included in the unaudited condensed consolidated statements of income for the three and nine months ended October 30, 2016 and October 25, 2015.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Fair Value Assumptions, Stock Options | The following table summarizes the assumptions used in the Black-Scholes model to determine the fair value of stock options granted in the three and nine months ended October 30, 2016 and October 25, 2015, respectively:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of The Activity For Stock Option Awards | The following table summarizes the activity for stock options for the nine months ended October 30, 2016:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of The Activity For Employee Stock Unit Awards | The following table summarizes the employees’ restricted stock unit activity for the nine months ended October 30, 2016:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of The Activity For Warrants | The following table summarizes the underlying Warrant Shares issued to Comcast for the nine months ended October 30, 2016:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance shares [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of The Activity For Performance Unit Awards | The following table summarizes the activity for performance-based restricted stock units for the nine months ended October 30, 2016:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market performance shares [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of The Activity For Performance Unit Awards | The following table summarizes the activity for market performance restricted stock units for the nine months ended October 30, 2016:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subject To Cash Settlement [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of The Activity For Non-Employee Directors Stock Unit Awards | The following table summarizes the non-employee directors’ activity for restricted stock units settled in cash for the nine months ended October 30, 2016:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subject To Share Settlement [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of The Activity For Non-Employee Directors Stock Unit Awards | The following table summarizes the non-employee directors’ activity for restricted stock units settled with stock for the nine months ended October 30, 2016:
|
Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Investments | The following table summarizes the Company’s available-for-sale investments:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments, Classified By Maturity Period | The following table summarizes the maturities of the Company’s available-for-sale investments:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Unrealized Gains (Losses) On Investments | The following table summarizes net unrealized losses arising in the periods presented in addition to the tax associated with these comprehensive income items:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cost Method Investments | The Company has the following investments which are accounted for as cost method investments:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented within the Company’s condensed consolidated balance sheets as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | A reconciliation of the change in the earn-out liability during the nine months ended October 30, 2016 is as follows:
|
Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Inventories | Inventories, consisting of material, material overhead, labor, and manufacturing overhead, are stated at the lower of cost (first-in, first-out) or market and consist of the following:
|
Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amounts of Goodwill | Changes in the carrying amount of goodwill were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions and technology licenses purchased, which continue to be amortized:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Amortization Expense for Intangible Assets | The estimated annual amount of future amortization expense for all finite-lived intangible assets will be as follows:
|
Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of net unrecognized tax benefits is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Liability For Uncertain Tax Positions | The liability for UTP is reflected within the condensed consolidated balance sheets as follows:
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Environmental Loss Contingencies by Contingency | Therefore, the Company has recorded the minimum amount of probable loss as follows within the Company’s condensed consolidated balance sheets.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Earn-out Liabilities by Classification | A summary of earn-out liabilities by classification follows:
|
Concentration of Risk (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Significant Customers Accounting For At Least 10% Of Net Sales or Receivables | The following significant customers accounted for at least 10% of net sales in one or more of the periods indicated:
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Segment | Net sales by segment are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) by Segment and Reconciliation to Consolidated Operating Income | Income by segment and reconciliation to consolidated operating income:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales Activity By Product Line | The table below provides net sales activity by product line on a comparative basis for all periods.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales Activity By Geographic Region | Net sales activity by geographic region is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Sales Activity To Countries That Represented Greater Than 10% Of Total Net Sales | The table below summarizes sales activity to countries that represented greater than 10% of total net sales for one or more of the periods presented:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) From Continuing Operations Before Income Taxes | The Company’s regional income (loss) from continuing operations before income taxes is as follows:
|
Stock Repurchase Program (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of Treasury Stock | The following table summarizes activity under the repurchase program for the three and nine month periods listed below:
|
Restructuring (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the restructuring activity for the nine months ended October 30, 2016:
|
Derivatives and Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Open Foreign Currency Contracts | At October 30, 2016, the Company had the following outstanding foreign exchange contracts:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Carrying Values of Derivative Instruments | The table below summarizes the carrying values of derivative instruments as of October 30, 2016 and January 31, 2016:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Gain (Loss) Recognized From Derivative Instruments | The following table summarizes the amount of income recognized from derivative instruments for the three months ended October 30, 2016 and October 25, 2015 as well as the line items within the accompanying unaudited condensed consolidated statements of income where the results are recorded for cash flow hedges:
The following table summarizes the amount of income recognized from derivative instruments for the nine months ended October 30, 2016 and October 25, 2015 as well as the line items within the accompanying unaudited condensed consolidated statements of income where the results are recorded for cash flow hedges:
|
Organization and Basis of Presentation (Fiscal Year) (Details) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Oct. 30, 2016
weeks
|
Oct. 25, 2015
weeks
|
Oct. 30, 2016
weeks
week
|
|
52 Week Fiscal Year [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Number of weeks in the fiscal year reporting period | 52 | ||
Number of weeks in a quarter for 52 week fiscal period | 13 | 13 | 13 |
53 Week Fiscal Year [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Number of weeks in the fiscal year reporting period | 53 | ||
Number of weeks in the 4th quarter for 53 week fiscal period | week | 14 |
Organization and Basis of Presentation (Segment Information) (Details) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Oct. 30, 2016
operating_segment
|
Jul. 31, 2016
operating_segment
|
Oct. 30, 2016
reportable_segment
|
Aug. 05, 2016
USD ($)
|
|
Organization And Basis Of Presentation [Line Items] | ||||
Number of operating segments | operating_segment | 4 | 5 | ||
Number of operating segments that aggregate into one reportable segment | 4 | |||
Number of reportable segments | 1 | |||
Systems Innovation [Member] | Snowbush IP Business [Member] | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Cash consideration received related to divestiture | $ | $ 32.0 |
Acquisitions - Triune Purchase Price Allocation (Details) - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
Mar. 04, 2015 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 329,703 | $ 329,703 | |
Earn-out liability | (8,264) | (6,259) | |
Triune Systems [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | $ 877 | ||
Property, plant, and equipment, net | 226 | ||
Goodwill | 49,384 | ||
Current liabilities | (1,287) | ||
Earn-out liability | $ 0 | $ 0 | (16,200) |
Total acquisition consideration | 45,000 | ||
Core Technologies [Member] | Triune Systems [Member] | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | 10,000 | ||
Customer Relationships [Member] | Triune Systems [Member] | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | $ 2,000 |
Earnings Per Share - Computation Of Basic And Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 30,776 | $ 10,704 | $ 46,642 | $ 10,250 |
Weighted average common shares outstanding - basic | 65,549 | 65,117 | 65,331 | 65,920 |
Dilutive effect of options and restricted stock units | 657 | 100 | 568 | 331 |
Weighted average common shares outstanding - diluted | 66,206 | 65,217 | 65,899 | 66,251 |
Basic earnings per common share (in dollars per share) | $ 0.47 | $ 0.16 | $ 0.71 | $ 0.16 |
Diluted earnings per common share (in dollars per share) | $ 0.46 | $ 0.16 | $ 0.71 | $ 0.15 |
Anti-dilutive shares not included in the above calculations | 989 | 3,728 | 1,498 | 2,392 |
Share-Based Compensation - Summary of Fair Value Assumptions (Details) - Stock options [Member] - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected lives | 4 years 2 months | 4 years 2 months | ||
Estimated volatility | 32.00% | 32.00% | 32.00% | |
Estimated volatility, minimum | 29.00% | |||
Estimated volatility, maximum | 32.00% | |||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.00% | 1.30% | ||
Risk-free interest rate, minimum | 1.10% | 1.24% | ||
Risk-free interest rate, maximum | 1.30% | 1.29% | ||
Weighted average fair value on grant date | $ 7.10 | $ 4.80 | $ 5.67 | $ 6.09 |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected lives | 4 years 1 month | 4 years 2 months | ||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected lives | 4 years 6 months | 4 years 4 months |
Share-Based Compensation - Summary of the Activity for Market Performance Units Awards (Details) - Market performance shares [Member] - USD ($) $ / shares in Units, shares in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Oct. 30, 2016 |
Jan. 31, 2016 |
|
Units | ||
Beginning balance (in shares) | 220 | |
Performance units granted (in shares) | 0 | |
Performance units vested (in shares) | 0 | |
Performance units cancelled/forfeited (in shares) | 0 | |
Ending balance (in shares) | 220 | 220 |
Weighted Average Grant Date Fair Value (per share) | ||
Beginning balance | $ 15.59 | |
Performance units granted (in dollars per share) | 0 | |
Performance units vested (in dollars per share) | 0 | |
Performance units forfeited (in dollars per share) | 0 | |
Ending balance | $ 15.59 | $ 15.59 |
Aggregate Unrecognized Compensation | ||
Beginning balance | $ 143 | |
Ending balance | $ 0 | $ 143 |
Weighted Average Period Over Which Expected to be Recognized (in years) | ||
Weighted average period over which expected to be recognized | 0 years | 1 month |
Share-Based Compensation - Summary of the Activity for Cash Settled Non-Employee Directors Stock Unit Awards (Details) - Subject To Cash Settlement [Member] - Non-employee director stock unit awards [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Oct. 30, 2016 |
Jan. 31, 2016 |
|
Number of Units | ||
Beginning balance (in shares) | 28 | |
Stock units granted (in shares) | 25 | |
Stock units vested (in shares) | (30) | |
Stock units forfeited (in shares) | 0 | |
Ending balance (in shares) | 23 | 28 |
Recorded Liability | ||
Beginning balance | $ 3,870 | |
Change in liability | 502 | |
Ending balance | $ 4,372 | $ 3,870 |
Weighted Average Grant Date Fair Value (per unit) | ||
Beginning balance | $ 19.70 | |
Stock units granted (in dollars per share) | 23.40 | |
Stock units vested (in dollars per share) | 19.65 | |
Stock units forfeited (in dollars per share) | 0.00 | |
Ending balance | $ 23.67 | $ 19.70 |
Aggregate Unrecognized Compensation | ||
Beginning balance | $ 221 | |
Ending balance | $ 403 | $ 221 |
Period Over Which Expected to be Recognized (in years) | ||
Weighted average period over which expected to be recognized | 7 months | 5 months |
Share-Based Compensation - Summary of Activity for Stock Settled Non-Employee Directors Stock Unit Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
Jan. 31, 2016 |
|||
Weighted Average Grant Date Fair Value (per unit) | |||||||
Increase to deferred tax liability | $ 0 | $ 74 | $ 0 | $ 172 | |||
Subject To Share Settlement [Member] | Non-employee director stock unit awards [Member] | |||||||
Number of Units | |||||||
Beginning balance (in shares) | 24 | ||||||
Stock units granted (in shares) | 21 | ||||||
Stock units vested (in shares) | (25) | ||||||
Stock units forfeited (in shares) | 0 | ||||||
Ending balance (in shares) | 20 | 20 | 24 | ||||
Weighted Average Grant Date Fair Value (per unit) | |||||||
Beginning balance | $ 19.70 | ||||||
Stock units granted (in dollars per share) | 23.40 | ||||||
Stock units vested (in dollars per share) | 24.16 | ||||||
Warrant shares forfeited (in dollars per share) | 0.00 | ||||||
Ending balance | $ 23.67 | $ 23.67 | $ 19.70 | ||||
Aggregate Intrinsic Value | |||||||
Aggregate intrinsic value of stock units vested | [1] | $ 616 | |||||
Aggregate Unrecognized Compensation | |||||||
Beginning balance | 186 | ||||||
Ending balance | $ 312 | $ 312 | $ 186 | ||||
Period Over Which Expected to be Recognized (in years) | |||||||
Weighted average period over which expected to be recognized | 7 months | 5 months | |||||
|
Share-Based Compensation - Summary of Activity for Warrants (Details) - USD ($) |
9 Months Ended | ||||
---|---|---|---|---|---|
Oct. 30, 2016 |
Jan. 31, 2016 |
||||
Aggregate Intrinsic Value | |||||
Aggregate intrinsic value of warrant shares outstanding | [1] | $ 0 | |||
Aggregate Unrecognized Compensation | |||||
Change in value | $ 23,674,000 | ||||
Warrant [Member] | |||||
Units | |||||
Beginning balance (in shares) | 0 | ||||
Warrants shares granted (in shares) | 1,087,000 | ||||
Warrants shares vested (in shares) | (109,000) | ||||
Ending balance (in shares) | 978,000 | ||||
Weighted Averaged Grant Date Fair Value (per unit) | |||||
Beginning balance | $ 0 | ||||
Warrant shares granted (in dollars per share) | 27.74 | ||||
Warrant shares vested (in dollars per share) | 27.74 | ||||
Ending balance | $ 27.74 | ||||
Aggregate Intrinsic Value | |||||
Aggregate intrinsic value of warrant shares vested | [1] | $ 3,015,000 | |||
Aggregate Unrecognized Compensation | |||||
Beginning balance | 0 | ||||
Ending balance | $ 23,674,000 | ||||
|
Investments - Narrative (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Oct. 30, 2016 |
Jan. 31, 2016 |
|
Investment [Line Items] | ||
Total cost method investment in privately traded companies | $ 22,200 | $ 20,200 |
Minimum [Member] | ||
Investment [Line Items] | ||
Investment maturity period | 3 months | |
Short-term Investments [Member] | Minimum [Member] | ||
Investment [Line Items] | ||
Investment maturity period | 3 months | |
Short-term Investments [Member] | Maximum [Member] | ||
Investment [Line Items] | ||
Investment maturity period | 12 months | |
Other Long-term Investments [Member] | Minimum [Member] | ||
Investment [Line Items] | ||
Investment maturity period | 12 months | |
Other Assets [Member] | ||
Investment [Line Items] | ||
Total cost method investment in privately traded companies | $ 22,200 | $ 20,200 |
Investments - Summary Of Investments (Details) - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
---|---|---|
Investment [Line Items] | ||
Available-for-sale securities, market value | $ 16,908 | $ 16,866 |
Available-for-sale investments, adjusted cost | 16,908 | 16,866 |
Available-for-sale investments, gross unrealized gain | 0 | 0 |
Cash Equivalents [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, market value | 16,908 | 16,866 |
Available-for-sale investments, adjusted cost | 16,908 | 16,866 |
Available-for-sale investments, gross unrealized gain | $ 0 | $ 0 |
Investments - Schedule Of Investments, Classified By Maturity Period (Details) - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
---|---|---|
Investment [Line Items] | ||
Available-for-sale securities, market value | $ 16,908 | $ 16,866 |
Available-for-sale investments, adjusted cost | 16,908 | 16,866 |
Within 1 Year [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, market value | 16,908 | 16,866 |
Available-for-sale investments, adjusted cost | 16,908 | 16,866 |
After 1 Year Through 5 Years [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, market value | 0 | 0 |
Available-for-sale investments, adjusted cost | $ 0 | $ 0 |
Investments - Summary Of Unrealized Gains (Losses) On Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Investments [Abstract] | ||||
Unrealized gain (loss), net of tax | $ 0 | $ 129 | $ (85) | $ 266 |
Increase to deferred tax liability | $ 0 | $ 74 | $ 0 | $ 172 |
Investments - Summary of Cost Method Investments (Details) - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
---|---|---|
Schedule of Cost-method Investments [Line Items] | ||
Total cost method investment in privately traded companies | $ 22,200 | $ 20,200 |
MultiPhy Ltd [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Total cost method investment in privately traded companies | 14,000 | 12,000 |
Skorpios Technologies Inc [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Total cost method investment in privately traded companies | 3,000 | 3,000 |
Guangdong Dapu Telecom Technology Co., Ltd [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Total cost method investment in privately traded companies | 3,300 | 3,300 |
Senet, Inc [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Total cost method investment in privately traded companies | 1,900 | 1,900 |
Jariet Technologies Inc [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Total cost method investment in privately traded companies | $ 0 | $ 0 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Oct. 30, 2016 |
Jan. 31, 2016 |
|
Cycleo [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Period over which contingent consideration is valued | 4 years | |
Earn-out Payable Within First Three Fiscal Years Of Acquisition Date [Member] | Triune Systems [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Period over which contingent consideration is valued | 2 years | |
Level 2 [Member] | Term Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 67.8 | $ 77.1 |
Level 2 [Member] | Revolving Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 181.0 | $ 181.0 |
Fair Value Measurements - Financial Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative financial instruments (asset) | $ 215 | $ 0 |
Total financial assets | 17,123 | 16,866 |
Derivative financial instruments (liability) | 445 | 0 |
Total financial liabilities | 1,740 | 1,457 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative financial instruments (asset) | 0 | 0 |
Total financial assets | 16,908 | 16,866 |
Derivative financial instruments (liability) | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative financial instruments (asset) | 215 | 0 |
Total financial assets | 215 | 0 |
Derivative financial instruments (liability) | 445 | 0 |
Total financial liabilities | 445 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative financial instruments (asset) | 0 | 0 |
Total financial assets | 0 | 0 |
Derivative financial instruments (liability) | 0 | 0 |
Total financial liabilities | 1,295 | 1,457 |
Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 16,908 | 16,866 |
Cash Equivalents [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 16,908 | 16,866 |
Cash Equivalents [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Cash Equivalents [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Triune Systems [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 0 | 0 |
Triune Systems [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 0 | 0 |
Triune Systems [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 0 | 0 |
Triune Systems [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 0 | 0 |
Not Conditional Upon Continued Employment [Member] | Cycleo [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 1,295 | 1,457 |
Not Conditional Upon Continued Employment [Member] | Cycleo [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 0 | 0 |
Not Conditional Upon Continued Employment [Member] | Cycleo [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | 0 | 0 |
Not Conditional Upon Continued Employment [Member] | Cycleo [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Earn-out liability | $ 1,295 | $ 1,457 |
Fair Value Measurements - Level 3 Reconciliation of the Earn-out Liability (Details) $ in Thousands |
9 Months Ended |
---|---|
Oct. 30, 2016
USD ($)
| |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 1,457 |
Changes in the fair value of contingent earn-out obligations | (162) |
Ending balance | 1,295 |
Cycleo [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 1,457 |
Changes in the fair value of contingent earn-out obligations | (162) |
Ending balance | 1,295 |
Triune Systems [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 0 |
Changes in the fair value of contingent earn-out obligations | 0 |
Ending balance | $ 0 |
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,342 | $ 2,094 |
Work in progress | 40,731 | 40,940 |
Finished goods | 18,606 | 20,841 |
Inventories | $ 62,679 | $ 63,875 |
Goodwill and Intangible Assets - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016
USD ($)
|
Oct. 25, 2015
USD ($)
|
Oct. 30, 2016
USD ($)
reporting_unit
|
Oct. 25, 2015
USD ($)
|
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Number of reporting units | reporting_unit | 3 | |||
Amortization expense related to finite-lived intangible assets | $ 6,286 | $ 6,308 | $ 19,017 | $ 18,648 |
Indefinite-lived intangible assets | $ 0 | $ 0 |
Goodwill and Intangible Assets - Changes in Carrying Amounts of Goodwill (Details) $ in Thousands |
9 Months Ended |
---|---|
Oct. 30, 2016
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 329,703 |
Additions | 0 |
Ending balance | 329,703 |
Signal Integrity [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 261,891 |
Additions | 0 |
Ending balance | 261,891 |
Power and High Reliability [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 49,384 |
Additions | 0 |
Ending balance | 49,384 |
Wireless and Sensing [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 18,428 |
Additions | 0 |
Ending balance | $ 18,428 |
Goodwill and Intangible Assets - Schedule Of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Oct. 30, 2016 |
Jan. 31, 2016 |
||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | $ 181,660 | $ 184,940 | |||
Accumulated amortization | (113,596) | (96,510) | |||
Net carrying amount | 68,064 | 88,430 | |||
Core Technologies [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 144,930 | 148,210 | |||
Accumulated amortization | (87,753) | (74,006) | |||
Net carrying amount | $ 57,177 | 74,204 | |||
Core Technologies [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 5 years | ||||
Core Technologies [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 8 years | ||||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | $ 30,030 | 30,030 | |||
Accumulated amortization | (19,147) | (15,847) | |||
Net carrying amount | $ 10,883 | 14,183 | |||
Customer Relationships [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 5 years | ||||
Customer Relationships [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 10 years | ||||
Technology Licenses [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | [1] | 2 years | |||
Gross carrying amount | [1] | $ 100 | 100 | ||
Accumulated amortization | [1] | (96) | (57) | ||
Net carrying amount | [1] | 4 | 43 | ||
Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 6,600 | 6,600 | |||
Accumulated amortization | (6,600) | (6,600) | |||
Net carrying amount | $ 0 | $ 0 | |||
Other Intangible Assets [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 1 year | ||||
Other Intangible Assets [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 5 years | ||||
|
Goodwill and Intangible Assets - Future Amortization Expense For Intangible Assets (Details) - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
||
---|---|---|---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
Remaining three months of fiscal year 2017 | $ 6,292 | |||
Fiscal year 2018 | 25,144 | |||
Fiscal year 2019 | 21,732 | |||
Fiscal year 2020 | 10,855 | |||
Fiscal year 2021 | 3,089 | |||
Thereafter | 952 | |||
Net carrying amount | 68,064 | $ 88,430 | ||
Core Technologies [Member] | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
Remaining three months of fiscal year 2017 | 5,188 | |||
Fiscal year 2018 | 20,744 | |||
Fiscal year 2019 | 17,332 | |||
Fiscal year 2020 | 9,905 | |||
Fiscal year 2021 | 3,056 | |||
Thereafter | 952 | |||
Net carrying amount | 57,177 | 74,204 | ||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
Remaining three months of fiscal year 2017 | 1,100 | |||
Fiscal year 2018 | 4,400 | |||
Fiscal year 2019 | 4,400 | |||
Fiscal year 2020 | 950 | |||
Fiscal year 2021 | 33 | |||
Thereafter | 0 | |||
Net carrying amount | 10,883 | 14,183 | ||
Technology Licenses [Member] | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
Remaining three months of fiscal year 2017 | 4 | |||
Fiscal year 2018 | 0 | |||
Fiscal year 2019 | 0 | |||
Fiscal year 2020 | 0 | |||
Fiscal year 2021 | 0 | |||
Thereafter | 0 | |||
Net carrying amount | [1] | $ 4 | $ 43 | |
|
Credit Facilities - Narrative (Details) |
9 Months Ended | ||||
---|---|---|---|---|---|
Nov. 15, 2016
USD ($)
|
Mar. 04, 2015
USD ($)
|
May 02, 2013
USD ($)
|
Oct. 30, 2016
USD ($)
|
Oct. 25, 2015
USD ($)
|
|
Borrowings under line of credit | $ 35,000,000 | $ 0 | $ 35,000,000 | ||
Minimum [Member] | |||||
Interest coverage ratio | 3.50 | ||||
Maximum [Member] | |||||
Total leverage ratio | 3.00 | ||||
Prior Credit Agreement [Member] | |||||
Facilities, maximum borrowing capacity | $ 400,000,000 | ||||
Facilities, term | 5 years | ||||
Prior Credit Agreement [Member] | Base Rate [Member] | |||||
Description of variable rate basis | the highest of (a) the prime rate (as published by The Wall Street Journal), (b) ½ of 1% above the federal funds effective rate or (c) one-month LIBOR (determined with respect to deposits in U.S. Dollars) plus 1%. | ||||
Prior Credit Agreement [Member] | Base Rate [Member] | Minimum [Member] | |||||
Basis spread on variable rate | 0.25% | ||||
Prior Credit Agreement [Member] | Base Rate [Member] | Maximum [Member] | |||||
Basis spread on variable rate | 1.25% | ||||
Prior Credit Agreement [Member] | LIBOR [Member] | |||||
Basis spread on variable rate | 1.00% | ||||
Prior Credit Agreement [Member] | LIBOR [Member] | Minimum [Member] | |||||
Basis spread on variable rate | 1.25% | ||||
Prior Credit Agreement [Member] | LIBOR [Member] | Maximum [Member] | |||||
Basis spread on variable rate | 2.25% | ||||
Prior Credit Agreement [Member] | Federal Funds [Member] | |||||
Basis spread on variable rate | 1.00% | ||||
Prior Credit Agreement [Member] | CDOR [Member] | |||||
Description of variable rate basis | the sum of: (a) the rate determined by Administrative Agent with reference to the arithmetic average of the discount rate quotations of all institutions listed for CAD Dollar-denominated bankers’ acceptances displayed and identified on the “Reuters Screen CDOR Page” and (b) 0.10% per annum | ||||
Basis spread on variable rate | 0.10% | ||||
Prior Credit Agreement [Member] | CDOR [Member] | Minimum [Member] | |||||
Basis spread on variable rate | 1.25% | ||||
Prior Credit Agreement [Member] | CDOR [Member] | Maximum [Member] | |||||
Basis spread on variable rate | 2.25% | ||||
Prior Credit Agreement Term Loans [Member] | |||||
Facilities, maximum borrowing capacity | $ 150,000,000 | ||||
Facilities, amount outstanding | $ 67,800,000 | ||||
Facilities, Interest rate at period end | 2.28% | ||||
Facilities, maturity date | May 01, 2018 | ||||
Prior Credit Agreement Revolving Line of Credit [Member] | |||||
Facilities, maximum borrowing capacity | $ 250,000,000 | ||||
Facilities, amount outstanding | $ 181,000,000 | ||||
Facilities, Interest rate at period end | 2.28% | ||||
Prior Credit Agreement Revolving Line of Credit [Member] | Minimum [Member] | |||||
Facilities, unused capacity, commitment fee percentage | 0.20% | ||||
Prior Credit Agreement Revolving Line of Credit [Member] | Maximum [Member] | |||||
Facilities, unused capacity, commitment fee percentage | 0.45% | ||||
Prior Credit Agreement Letter of Credit [Member] | |||||
Facilities, maximum borrowing capacity | $ 40,000,000 | ||||
Facilities, amount outstanding | $ 0 | ||||
Prior Credit Agreement Swingline Loans [Member] | |||||
Facilities, maximum borrowing capacity | $ 25,000,000 | ||||
Facilities, amount outstanding | 0 | ||||
Alternative Currencies, Except Canadian [Member] | |||||
Description of variable rate basis | a rate per annum equal to LIBOR (determined with respect to deposits in the applicable Alternative Currency) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. | ||||
Prior Credit Agreement Alternative Currencies Line of Credit [Member] | |||||
Facilities, maximum borrowing capacity | $ 40,000,000 | ||||
Facilities, amount outstanding | $ 0 | ||||
United States of America, Dollars | Prior Credit Agreement [Member] | |||||
Description of variable rate basis | (1) the Base Rate plus a margin ranging from 0.25% to 1.25% depending upon Semtech’s consolidated leverage ratio or (2) LIBOR (determined with respect to deposits in U.S. Dollars) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. | ||||
Canada, Dollars | Prior Credit Agreement [Member] | |||||
Description of variable rate basis | a rate per annum equal to the CDOR Rate for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. | ||||
Subsequent Event [Member] | New Credit Agreement Term Loans [Member] | |||||
Facilities, maximum borrowing capacity | $ 150,000,000 | ||||
Facilities, amount outstanding | 150,000,000 | ||||
Subsequent Event [Member] | New Credit Agreement Revolving Line of Credit [Member] | |||||
Facilities, maximum borrowing capacity | 250,000,000 | ||||
Facilities, amount outstanding | $ 97,000,000 | ||||
Facilities, unused capacity, commitment fee percentage | 0.40% | ||||
Subsequent Event [Member] | New Credit Agreement Revolving Line of Credit [Member] | Minimum [Member] | |||||
Facilities, unused capacity, commitment fee percentage | 0.20% | ||||
Subsequent Event [Member] | New Credit Agreement Revolving Line of Credit [Member] | Maximum [Member] | |||||
Facilities, unused capacity, commitment fee percentage | 0.45% | ||||
Subsequent Event [Member] | New Credit Agreement [Member] | |||||
Facilities, maximum borrowing capacity | $ 400,000,000 | ||||
Facilities, amount outstanding | $ 247,000,000 | ||||
Facilities, maturity date | Nov. 12, 2021 | ||||
Subsequent Event [Member] | New Credit Agreement [Member] | Maximum [Member] | |||||
Total leverage ratio | 3.00 | ||||
Subsequent Event [Member] | New Credit Agreement [Member] | Base Rate [Member] | |||||
Description of variable rate basis | the highest of (a) the prime rate of the administrative agent, (b) ½ of 1% above the federal funds effective rate published by the Federal Reserve Bank of New York and (c) one-month LIBOR (determined with respect to deposits in U.S. Dollars) plus 1.00%. | ||||
Basis spread on variable rate | 2.00% | ||||
Subsequent Event [Member] | New Credit Agreement [Member] | Base Rate [Member] | Minimum [Member] | |||||
Basis spread on variable rate | 0.25% | ||||
Subsequent Event [Member] | New Credit Agreement [Member] | Base Rate [Member] | Maximum [Member] | |||||
Basis spread on variable rate | 1.25% | ||||
Subsequent Event [Member] | New Credit Agreement [Member] | LIBOR [Member] | |||||
Basis spread on variable rate | 1.00% | ||||
Subsequent Event [Member] | New Credit Agreement [Member] | LIBOR [Member] | Minimum [Member] | |||||
Basis spread on variable rate | 1.25% | ||||
Subsequent Event [Member] | New Credit Agreement [Member] | LIBOR [Member] | Maximum [Member] | |||||
Basis spread on variable rate | 2.25% | ||||
Subsequent Event [Member] | New Credit Agreement [Member] | Federal Funds [Member] | |||||
Basis spread on variable rate | 1.00% | ||||
Subsequent Event [Member] | United States of America, Dollars | New Credit Agreement [Member] | |||||
Description of variable rate basis | (1) the New Base Rate (as defined below) plus a margin ranging from 0.25% to 1.25% depending upon Semtech’s consolidated leverage ratio or (2) LIBOR (determined with respect to deposits in U.S. Dollars) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio (such margin, the “New Applicable Margin”). |
Income Taxes - Narrative (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Oct. 30, 2016 |
Jan. 31, 2016 |
|
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate | 35.00% | |
Percentage of uncertain tax positions evaluating criteria | 50.00% | |
Gross unrecognized tax benefit before federal impact of state items | $ 10,600,000 | $ 10,600,000 |
Net tax benefits, if recognized, would impact the effective tax rate | 8,400,000 | 8,400,000 |
Unrecognized tax benefits, interest and penalties | $ 293,000 | $ 293,000 |
Income Taxes - Summary of Income Tax Contingencies (Details) $ in Thousands |
9 Months Ended |
---|---|
Oct. 30, 2016
USD ($)
| |
Income Tax Contingency [Line Items] | |
Beginning balance | $ 8,432 |
Additions based on tax positions related to the current year | 80 |
Reductions for tax positions of prior years, net | (121) |
Reductions for settlements with tax authorities | 0 |
Ending balance | $ 8,391 |
Income Taxes - Liability For Uncertain Tax Positions (Details) - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
---|---|---|
Income Tax Contingency [Line Items] | ||
Liability for UTP | $ 8,391 | $ 8,432 |
Non-current deferred tax asset [Member] | ||
Income Tax Contingency [Line Items] | ||
Liability for UTP | 7,121 | 7,162 |
Other liabilities [Member] | ||
Income Tax Contingency [Line Items] | ||
Liability for UTP | $ 1,270 | $ 1,270 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
Mar. 04, 2015 |
---|---|---|---|
Commitments and Contingencies [Line Items] | |||
Potential payments under earn-out arrangements, high estimate | $ 70,000 | ||
Earn-out liability booked | $ 8,264 | $ 6,259 | |
Amount expected to be settled within twelve months | 1,829 | 2,155 | |
Cycleo [Member] | |||
Commitments and Contingencies [Line Items] | |||
Potential payments under earn-out arrangements, high estimate | 16,000 | ||
Earn-out liability booked | 8,264 | 6,259 | |
Amount expected to be settled within twelve months | 1,829 | 2,155 | |
Triune Systems [Member] | |||
Commitments and Contingencies [Line Items] | |||
Earn-out liability booked | 0 | 0 | 16,200 |
Amount expected to be settled within twelve months | 0 | $ 0 | |
Additional Earn-out Payable After Third Fiscal Year From Acquisition Date [Member] | Triune Systems [Member] | |||
Commitments and Contingencies [Line Items] | |||
Potential payments under earn-out arrangements, high estimate | $ 16,000 | ||
Minimum [Member] | Environmental Issue | |||
Commitments and Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | 5,200 | ||
Maximum [Member] | Environmental Issue | |||
Commitments and Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ 7,500 |
Commitments and Contingencies - Summary of Accrual for Environmental Loss Contingencies (Details) $ in Thousands |
9 Months Ended |
---|---|
Oct. 30, 2016
USD ($)
| |
Site Contingency [Line Items] | |
Beginning balance | $ 5,330 |
Change in estimate | 0 |
Utililzation | (116) |
Ending balance | 5,214 |
Accrued Liabilities [Member] | |
Site Contingency [Line Items] | |
Beginning balance | 1,150 |
Change in estimate | (499) |
Utililzation | (116) |
Ending balance | 535 |
Other Long-term Liabilities [Member] | |
Site Contingency [Line Items] | |
Beginning balance | 4,180 |
Change in estimate | 499 |
Utililzation | 0 |
Ending balance | $ 4,679 |
Commitments and Contingencies - Summary of Earn-out Liability (Details) - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
Mar. 04, 2015 |
---|---|---|---|
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | $ 8,264 | $ 6,259 | |
Amount expected to be settled within twelve months | 1,829 | 2,155 | |
Compensation Expense [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | 6,379 | 4,397 | |
Not Conditional Upon Continued Employment [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | 1,295 | 1,457 | |
Interest Expense [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | 590 | 405 | |
Triune Systems [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | 0 | 0 | $ 16,200 |
Amount expected to be settled within twelve months | 0 | 0 | |
Triune Systems [Member] | Compensation Expense [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | 0 | 0 | |
Triune Systems [Member] | Not Conditional Upon Continued Employment [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | 0 | 0 | |
Triune Systems [Member] | Interest Expense [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | 0 | 0 | |
Cycleo [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | 8,264 | 6,259 | |
Amount expected to be settled within twelve months | 1,829 | 2,155 | |
Cycleo [Member] | Compensation Expense [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | 6,379 | 4,397 | |
Cycleo [Member] | Not Conditional Upon Continued Employment [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | 1,295 | 1,457 | |
Cycleo [Member] | Interest Expense [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Earn-out liability booked | $ 590 | $ 405 |
Concentration of Risk - Narrative (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Concentration Risk [Line Items] | ||||
Description of geographic concentration risk related to distributors | For the third quarter of fiscal year 2017, our two largest distributors were based in Asia. | |||
Sales Revenue, Goods, Net [Member] | ||||
Concentration Risk [Line Items] | ||||
Minimum concentration risk threshold | 10.00% | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Accounts Receivable [Member] | ||||
Concentration Risk [Line Items] | ||||
Minimum concentration risk threshold | 10.00% | |||
Net sales [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Net sales [Member] | Distributor concentration risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 64.00% | 56.00% | ||
China | Cost of Silicon Wafers [Member] | Supplier concentration risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 24.00% | 29.00% |
Concentration of Risk - Schedule Of Significant Customers Accounting For At Least 10% Of Net Sales During Period (Details) - Sales Revenue, Goods, Net [Member] |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Concentration Risk [Line Items] | ||||
Minimum concentration risk threshold | 10.00% | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Customer Concentration Risk [Member] | Arrow (and affiliates) [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 11.00% | 10.00% | 9.00% | 9.00% |
Segment Information - Narrative (Details) |
3 Months Ended | 6 Months Ended | 9 Months Ended |
---|---|---|---|
Oct. 30, 2016
operating_segment
|
Jul. 31, 2016
operating_segment
|
Oct. 30, 2016
reportable_segment
|
|
Segment Reporting [Abstract] | |||
Number of operating segments | operating_segment | 4 | 5 | |
Number of operating segments that aggregate into one reportable segment | 4 | ||
Number of reportable segments | 1 |
Segment Information - Net Sales Activity by Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Revenue from External Customer [Line Items] | ||||
Net sales | $ 137,185 | $ 115,810 | $ 404,241 | $ 371,610 |
Semiconductor Products Group [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 137,185 | 115,795 | 404,036 | 369,690 |
All others [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 0 | $ 15 | $ 205 | $ 1,920 |
Segment Information - Income (Loss) by Segment and Reconciliation to Income Before Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ 39,099 | $ 18,898 | $ 68,794 | $ 26,850 |
Items to reconcile segment operating income to consolidated income before taxes | ||||
Share-based compensation | 9,395 | 5,117 | 21,198 | 13,397 |
Changes in the fair value of contingent earn-out obligations | 0 | (14,186) | (162) | (13,618) |
Restructuring charge | 0 | 962 | 0 | 4,526 |
Interest expense, net | 1,890 | 1,964 | 5,857 | 5,698 |
Non-operating expense, net | 690 | 777 | 871 | 1,152 |
Income before taxes | 36,519 | 16,157 | 62,066 | 20,000 |
Corporate, Non-Segment [Member] | ||||
Items to reconcile segment operating income to consolidated income before taxes | ||||
Intangible amortization and impairments | 6,286 | 6,308 | 19,017 | 18,648 |
Share-based compensation | 9,395 | 5,117 | 21,199 | 13,397 |
Changes in the fair value of contingent earn-out obligations | 0 | (14,186) | (162) | (13,618) |
Restructuring charge | 0 | 962 | 0 | 4,526 |
Environmental reserve | 0 | 0 | 0 | 2,855 |
Other non-segment related (income) expenses | 3,139 | 2,792 | 5,938 | 10,073 |
Amortization of fair value adjustments related to acquired PP&E | 308 | 310 | 925 | 948 |
Interest expense, net | 1,890 | 1,964 | 5,857 | 5,698 |
Non-operating expense, net | 690 | 777 | 871 | 1,152 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 58,227 | 20,201 | 115,711 | 63,679 |
Semiconductor Products Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 33,013 | 22,019 | 92,973 | 70,054 |
All others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ 25,214 | $ (1,818) | $ 22,738 | $ (6,375) |
Segment Information - Revenue by Product Line (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Revenue from External Customer [Line Items] | ||||
Net sales | $ 137,185,000 | $ 115,810,000 | $ 404,241,000 | $ 371,610,000 |
Signal Integrity [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 60,550,000 | 52,449,000 | 193,745,000 | 165,780,000 |
Protection [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 40,250,000 | 33,225,000 | 108,296,000 | 105,339,000 |
Wireless and Sensing [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 24,070,000 | 16,567,000 | 60,514,000 | 54,898,000 |
Power and High Reliability [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 15,984,000 | 13,554,000 | 45,150,000 | 43,673,000 |
Systems Innovation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 0 | 15,000 | 205,000 | 1,920,000 |
Other: Warrant Shares [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales offset | $ (3,669,000) | $ 0 | $ (3,669,000) | $ 0 |
Net sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Net sales [Member] | Signal Integrity [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 44.00% | 45.00% | 48.00% | 44.00% |
Net sales [Member] | Protection [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 29.00% | 29.00% | 27.00% | 28.00% |
Net sales [Member] | Wireless and Sensing [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 18.00% | 14.00% | 15.00% | 15.00% |
Net sales [Member] | Power and High Reliability [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 12.00% | 12.00% | 11.00% | 12.00% |
Net sales [Member] | Systems Innovation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | 0.00% | 0.00% | 0.00% | 1.00% |
Net sales [Member] | Other: Warrant Shares [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage | (3.00%) | 0.00% | (1.00%) | 0.00% |
Segment Information - Net Sales Activity by Geographic Region (Details) - Sales Revenue, Goods, Net [Member] |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Asia-Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 80.00% | 70.00% | 79.00% | 72.00% |
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 16.00% | 20.00% | 16.00% | 18.00% |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 7.00% | 10.00% | 8.00% | 10.00% |
Other: Warrant Shares [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | (3.00%) | 0.00% | (3.00%) | 0.00% |
Segment Information - Summary of Sales Activity to Countries that Represented Greater than 10% of Total Net Sales (Details) - Sales Revenue, Goods, Net [Member] |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Minimum concentration risk threshold | 10.00% | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Other: Warrant Shares [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | (3.00%) | 0.00% | (3.00%) | 0.00% |
Geographic Concentration Risk [Member] | China Including Hong Kong [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 46.00% | 45.00% | 45.00% | 44.00% |
Geographic Concentration Risk [Member] | United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 11.00% | 14.00% | 11.00% | 12.00% |
Geographic Concentration Risk [Member] | Other: Warrant Shares [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | (3.00%) | 0.00% | (3.00%) | 0.00% |
Segment Information - Income (Loss) from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) before taxes | $ 36,519 | $ 16,157 | $ 62,066 | $ 20,000 |
Domestic | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) before taxes | 937 | 21,146 | (13,048) | 3,785 |
Canada | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) before taxes | 31,385 | 2,440 | 49,302 | 16,494 |
United Kingdom | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) before taxes | 3,568 | 4,984 | 14,150 | 17,328 |
Switzerland | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) before taxes | 764 | (13,411) | 7,791 | (5,063) |
Japan | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) before taxes | 344 | 1,424 | 2,470 | 2,486 |
Other Foreign [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (loss) before taxes | $ (479) | $ (426) | $ 1,401 | $ (15,030) |
Stock Repurchase Program - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 103 Months Ended | ||
---|---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
|
Equity [Abstract] | |||||
Repurchased shares of common stock, cost | $ 0 | $ 7,464 | $ 538 | $ 57,311 | $ 136,200 |
Remaining authorization under stock repurchase program | $ 62,200 | $ 62,200 | $ 62,200 |
Stock Repurchase Program - Summary of Stock Repurchases (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 103 Months Ended | ||
---|---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
|
Equity [Abstract] | |||||
Repurchase Program expenditures, shares | 0 | 491,316 | 23,968 | 2,681,476 | |
Repurchase Program expenditures, value | $ 0 | $ 7,464 | $ 538 | $ 57,311 | $ 136,200 |
Divestitures - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
Aug. 05, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposition of business operations | $ 25,036 | $ 0 | $ 25,036 | $ 0 | |
Defense And Microwave Communications Infrastructure Business [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenues and NRE reimbursements | $ 200 | $ 4,300 | |||
Noncash divestiture, description | Under the terms of the transaction with Jariet, the Company contributed assets, including inventory and equipment with a net book value of $0.6 million in exchange for an equity interest in the form of preferred stock, representing an approximately 21% voting interest in Jariet. Due to the anticipated continuing cash flows from its investment in Jariet, the Company did not account for the divestiture as a discontinued operation. In addition to the contribution of assets, certain contracts were novated with future performance responsibilities being transferred to Jariet. The investment in Jariet was written off in the third quarter of fiscal year 2016. | ||||
Net book value of contributed assets | $ 600 | ||||
Type of consideration received | equity interest in the form of preferred stock | ||||
Voting interest acquired | 21.00% | ||||
Systems Innovation [Member] | Snowbush IP Business [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash consideration received related to divestiture | $ 32,000 | ||||
Gain on Disposition of Business Operations [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposition of business operations | $ 25,036 |
Restructuring Activity (Details) - One-time Termination Benefits [Member] $ in Thousands |
9 Months Ended |
---|---|
Oct. 30, 2016
USD ($)
| |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | $ 342 |
Adjustments | 0 |
Cash payments | (336) |
Ending balance | $ 6 |
Variable Interest Entities (Details) $ in Millions |
9 Months Ended |
---|---|
Oct. 30, 2016
USD ($)
| |
Variable Interest Entity [Line Items] | |
Nature and extent of involvement in VIE | With regards to its investment in MultiPhy, the Company concluded that its equity interest represents a variable interest, but it is not the primary beneficiary as prescribed in ASC 810. Specifically, in reaching this conclusion, the Company considered the activities that most significantly drive profitability for MultiPhy and determined that the activity that most significantly drove profitability was related to the technology and related product road maps. The Company has a board observer role and thus concluded that it was not in a position of decision-making or other authority to influence MultiPhy’s activities that could be considered significant with respect to its operations, including research and development plans and changes to the product road map. |
MultiPhy Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Maximum exposure to loss as a result of investment | $ 14.0 |
Derivatives and Hedging Activities - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Derivative [Line Items] | ||||
Objectives for using derivative instruments | The Company is exposed to certain risk arising from both its business operations and economic conditions and principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company, on a routine basis and in the normal course of business, experiences expenses denominated in Swiss Franc (“CHF”), Canadian Dollar (“CAD”) and Great British Pound (“GBP”). Such expenses expose the Company to exchange rate fluctuations between these foreign currencies and the U.S. Dollar (“USD”). The Company uses derivative financial instruments in the form of forward contracts, to mitigate risk associated with adverse movements in these foreign currency exchange rates on a portion of foreign denominated expenses expected to be realized during the current and following fiscal year. | |||
Other comprehensive (income) loss, net of tax | $ 3,847 | $ (129) | $ 3,477 | $ (266) |
Foreign Contract | ||||
Derivative [Line Items] | ||||
Other comprehensive (income) loss, net of tax | $ 225 | $ 0 |
Derivatives and Hedging Activities - Summary of Open Foreign Currency Contracts (Details) £ in Thousands, SFr in Thousands, CAD in Thousands, $ in Thousands |
Oct. 30, 2016
USD ($)
|
Oct. 30, 2016
GBP (£)
|
Oct. 30, 2016
CAD
|
Oct. 30, 2016
CHF (SFr)
|
---|---|---|---|---|
Derivative [Line Items] | ||||
Number of Instruments | 21 | 21 | 21 | 21 |
Sell USD/Buy CHF Forward Contract [Member] | ||||
Derivative [Line Items] | ||||
Number of Instruments | 3 | 3 | 3 | 3 |
Sell USD/Buy CAD Forward Contract [Member] | ||||
Derivative [Line Items] | ||||
Number of Instruments | 3 | 3 | 3 | 3 |
Sell USD/Buy GBP Forward Contract [Member] | ||||
Derivative [Line Items] | ||||
Number of Instruments | 15 | 15 | 15 | 15 |
Short [Member] | Sell USD/Buy CHF Forward Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional Value | $ 2,732 | |||
Short [Member] | Sell USD/Buy CAD Forward Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional Value | 4,532 | |||
Short [Member] | Sell USD/Buy GBP Forward Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional Value | $ 13,568 | |||
Long [Member] | Sell USD/Buy CHF Forward Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional Value | SFr | SFr 2,672 | |||
Long [Member] | Sell USD/Buy CAD Forward Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional Value | CAD | CAD 6,337 | |||
Long [Member] | Sell USD/Buy GBP Forward Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional Value | £ | £ 10,744 |
Derivatives and Hedging Activities - Summary of the Carrying Values of Derivative Instruments (Details) - USD ($) $ in Thousands |
Oct. 30, 2016 |
Jan. 31, 2016 |
|||||
---|---|---|---|---|---|---|---|
Derivatives, Fair Value [Line Items] | |||||||
Fair Value - Assets | $ 215 | $ 0 | |||||
Fair Value - (Liabilities) | (445) | 0 | |||||
Derivative Net Carrying Value | (230) | 0 | |||||
Foreign Exchange Contract [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Net Carrying Value | [1] | (230) | 0 | ||||
Level 2 [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Fair Value - Assets | [1],[2] | 215 | 0 | ||||
Level 2 [Member] | Foreign Exchange Contract [Member] | Accrued Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Fair Value - (Liabilities) | [1],[2] | $ (445) | $ 0 | ||||
|
Derivatives and Hedging Activities - Summary of Gain (Loss) Recognized From Derivative Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Oct. 25, 2015 |
Oct. 30, 2016 |
Oct. 25, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain recognized in AOCI on derivative (effective portion) | $ 321 | |||
Amount of loss recognized in AOCI on derivative (effective portion) | $ (422) | |||
Amount of (gain) loss reclassified from AOCI into income (effective portion) | (88) | $ 0 | (546) | $ 0 |
SG&A | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (gain) loss reclassified from AOCI into income (effective portion) | (88) | 0 | (546) | 0 |
Amount of gain (loss) recognized into income on derivative (ineffective portion and amount excluded from effectiveness testing) | (3) | 0 | 2 | 0 |
Sell USD/Buy CHF Forward Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain recognized in AOCI on derivative (effective portion) | 51 | |||
Amount of loss recognized in AOCI on derivative (effective portion) | (85) | |||
Sell USD/Buy CHF Forward Contract [Member] | SG&A | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (gain) loss reclassified from AOCI into income (effective portion) | (24) | 0 | (72) | 0 |
Amount of gain (loss) recognized into income on derivative (ineffective portion and amount excluded from effectiveness testing) | (1) | 0 | 0 | 0 |
Sell USD/Buy CAD Forward Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain recognized in AOCI on derivative (effective portion) | 1,113 | |||
Amount of loss recognized in AOCI on derivative (effective portion) | (141) | |||
Sell USD/Buy CAD Forward Contract [Member] | SG&A | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (gain) loss reclassified from AOCI into income (effective portion) | (334) | 0 | (909) | 0 |
Amount of gain (loss) recognized into income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 5 | 0 |
Sell USD/Buy GBP Forward Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of loss recognized in AOCI on derivative (effective portion) | (196) | (843) | ||
Sell USD/Buy GBP Forward Contract [Member] | SG&A | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (gain) loss reclassified from AOCI into income (effective portion) | 270 | 0 | 435 | 0 |
Amount of gain (loss) recognized into income on derivative (ineffective portion and amount excluded from effectiveness testing) | $ (2) | $ 0 | $ (3) | $ 0 |
Subsequent Events (Details) |
9 Months Ended | ||
---|---|---|---|
Nov. 15, 2016
USD ($)
|
May 02, 2013
USD ($)
|
Oct. 30, 2016 |
|
Prior Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Facilities, maximum borrowing capacity | $ 400,000,000 | ||
New Credit Agreement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Facilities, maximum borrowing capacity | $ 400,000,000 | ||
Facilities, maturity date | Nov. 12, 2021 | ||
Facilities, amount outstanding | $ 247,000,000 | ||
Minimum percentage of lenders as represented by revolving commitments and outstanding term loans | 50.00% | ||
New Credit Agreement Term Loans [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Facilities, maximum borrowing capacity | $ 150,000,000 | ||
Facilities, amount outstanding | $ 150,000,000 | ||
Debt, payment terms | The outstanding principal balance of the term loans will be subject to repayment in quarterly installments beginning on the last day of Semtech’s fiscal quarter ending closest to January 31, 2017 in an amount equal to $3,750,000 per quarter for the first two years after the Closing Date, $4,697,500 per quarter in the third and fourth years following the Closing Date, and $5,625,000 per quarter in the fifth year following the Closing Date, with the balance being due at maturity on November 12, 2021. | ||
Percentage of long-term debt subject to repayment in years one and two | 10.00% | ||
Percentage of long-term debt subject to repayment in years three and four | 12.50% | ||
Percentage of long-term debt subject to repayment in year five | 15.00% | ||
New Credit Agreement Revolving Line of Credit [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Facilities, maximum borrowing capacity | $ 250,000,000 | ||
Facilities, amount outstanding | $ 97,000,000 | ||
Facilities, unused capacity, commitment fee percentage | 0.40% | ||
New Credit Agreement Letter of Credit [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Facilities, maximum borrowing capacity | $ 40,000,000 | ||
Facilities, amount outstanding | |||
Fronting fee percentage for each letter of credit issued | 0.125% | ||
New Credit Agreement Swingline Loans [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Facilities, maximum borrowing capacity | $ 25,000,000 | ||
Facilities, amount outstanding | |||
Facilities, balance undrawn | 153,000,000 | ||
New Credit Agreement Foreign Line of Credit [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Facilities, maximum borrowing capacity | 40,000,000 | ||
Facilities, amount outstanding | |||
New Credit Agreement Additional Term Loan or Increase in Revolver [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Facilities, maximum borrowing capacity | $ 150,000,000.0 | ||
Federal Funds [Member] | Prior Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Federal Funds [Member] | New Credit Agreement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Base Rate [Member] | Prior Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Description of variable rate basis | the highest of (a) the prime rate (as published by The Wall Street Journal), (b) ½ of 1% above the federal funds effective rate or (c) one-month LIBOR (determined with respect to deposits in U.S. Dollars) plus 1%. | ||
Base Rate [Member] | New Credit Agreement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Description of variable rate basis | the highest of (a) the prime rate of the administrative agent, (b) ½ of 1% above the federal funds effective rate published by the Federal Reserve Bank of New York and (c) one-month LIBOR (determined with respect to deposits in U.S. Dollars) plus 1.00%. | ||
Basis spread on variable rate | 2.00% | ||
LIBOR [Member] | Prior Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
LIBOR [Member] | New Credit Agreement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Minimum [Member] | New Credit Agreement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Maximum leverage ratio following a material acquisition | 3.25 | ||
Minimum [Member] | New Credit Agreement Revolving Line of Credit [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Facilities, unused capacity, commitment fee percentage | 0.20% | ||
Minimum [Member] | Base Rate [Member] | Prior Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Minimum [Member] | Base Rate [Member] | New Credit Agreement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Minimum [Member] | LIBOR [Member] | Prior Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Minimum [Member] | LIBOR [Member] | New Credit Agreement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Maximum [Member] | |||
Subsequent Event [Line Items] | |||
Total leverage ratio | 3.00 | ||
Maximum [Member] | New Credit Agreement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Total leverage ratio | 3.00 | ||
Maximum leverage ratio following a material acquisition | 3.50 | ||
Maximum [Member] | New Credit Agreement Revolving Line of Credit [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Facilities, unused capacity, commitment fee percentage | 0.45% | ||
Maximum [Member] | Base Rate [Member] | Prior Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Maximum [Member] | Base Rate [Member] | New Credit Agreement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Maximum [Member] | LIBOR [Member] | Prior Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
Maximum [Member] | LIBOR [Member] | New Credit Agreement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
United States of America, Dollars | Prior Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Description of variable rate basis | (1) the Base Rate plus a margin ranging from 0.25% to 1.25% depending upon Semtech’s consolidated leverage ratio or (2) LIBOR (determined with respect to deposits in U.S. Dollars) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio. | ||
United States of America, Dollars | New Credit Agreement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Description of variable rate basis | (1) the New Base Rate (as defined below) plus a margin ranging from 0.25% to 1.25% depending upon Semtech’s consolidated leverage ratio or (2) LIBOR (determined with respect to deposits in U.S. Dollars) for an interest period to be selected by Semtech plus a margin ranging from 1.25% to 2.25% depending upon Semtech’s consolidated leverage ratio (such margin, the “New Applicable Margin”). |
I O]_UD!!Z\+RJU^;]*12X' \?Y#UEU;_ %!+
M P04 " !+A'Y)VHJYA:(! "Q P &0 'AL+W=O K7:'/" BX%G"9"_6)'@_(KZ$
MX'>]IUFP HJ%Q2$GTYP#TH%(5_X[ZSY43(0+]=G]9^Q6^_^*"S1->UAC=LTXU.IS_N0
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MFE!D32BR)A19$XJL*476E")K2I$UIL8?N2Q.W^.N+HC'W0T,HNSGQL0[.@[.L6,CNEH\61$
MNB/P\\Q&YCJY$8%WG8'-;;L;+1*"6H6!X2"8<;9PW#XAK#L#TV0C$XYIXKG5
MTC'D1A[X:6X,C'@H #=(<:/FHUMWCM;RZ:PW+OJ63#55>\X%Z^MV'_LSY]@W
MX]-#Q?9"WH;]?3NTI\.#X*=KMSVU_.E_4$L#!!0 ( $N$?DFPU[[=P $
M $@$ 8 >&PO=V]R:W-H965T
&^6AJW8?4"4Q:E5\7[!2$
M/F$."<,39D$PK[Z4X/\O<> 7='Z=OO["X3K2U[/#_+I _H5 '@7R66!SM<7/
MF.T_1=C%F6HP;7PZEE0X]BX=WI)=7N<=CW?R 2^+0;3P($PK>TN.Z/S-QKMI
M$!UX$]G-AI+._Y\E4-"XL/SFUR8]J10X',X?9/FEY3M02P,$% @ 2X1^
M28TJ2]VB 0 L0, !D !X;"]W;W)K