Restatement of Condensed Consolidated Financial Statements (Tables)

3 Months Ended

Dec. 31, 2022

Restatement of Condensed Consolidated Financial Statements

Impact of the financial statement adjustments on the Company's previously reported Condensed Consolidated Financial Statements

The following tables present the impact of the financial statement adjustments on the Company’s previously reported Condensed Consolidated Statements of Income for the three months ended December 31, 2022 and January 1, 2022.

	Three Months Ended								Three Months Ended
	December 31, 2022								January 1, 2022
	(Unaudited)								(Unaudited)
	Previously		Investigation		Other				Previously		Investigation		Other
	Reported		Adjustments		Adjustments		As Restated		Reported		Adjustments		Adjustments		As Restated
	(In thousands, except per share data)
Net sales	$	2,361,361	$	(5,553)	$	—	$	2,355,808	$	1,757,325	$	(999)	$	—	$	1,756,326
Cost of sales		2,170,654		(10,232)		—		2,160,422		1,612,836		2,193		—		1,615,029
Gross profit		190,707		4,679		—		195,386		144,489		(3,192)		—		141,297
Operating expenses:
Selling, general and administrative		60,730		—		—		60,730		61,475		—		—		61,475
Research and development		5,599		—		—		5,599		4,777		—		—		4,777
Restructuring and other		631		—		—		631		1,414		—		—		1,414
Gain on sale of long-lived assets		—		—		—		—		(4,610)		—		—		(4,610)
Total operating expenses		66,960		—		—		66,960		63,056		—		—		63,056
Operating income		123,747		4,679		—		128,426		81,433		(3,192)		—		78,241
Interest income		2,933		—		—		2,933		309		—		—		309
Interest expense		(8,681)		—		—		(8,681)		(4,877)		—		—		(4,877)
Other income (expense), net		(6,712)		—		—		(6,712)		2,072		—		—		2,072
Interest and other, net		(12,460)		—		—		(12,460)		(2,496)		—		—		(2,496)
Income before income taxes		111,287		4,679		—		115,966		78,937		(3,192)		—		75,745
Provision for income taxes		19,788		1,064		—		20,852		20,303		(735)		—		19,568
Net income before noncontrolling interest		91,499		3,615		—		95,114		58,634		(2,457)		—		56,177
Less: Net income due to noncontrolling interest		3,100		—		—		3,100		—		—		—		—
Net income due to common shareholders	$	88,399	$	3,615	$	—	$	92,014	$	58,634	$	(2,457)	$	—	$	56,177
Net income due to common shareholders per share:
Basic	$	1.53	$	0.06	$	—	$	1.59	$	0.91	$	(0.04)	$	—	$	0.87
Diluted	$	1.48	$	0.06	$	—	$	1.54	$	0.89	$	(0.04)	$	—	$	0.85
Weighted average shares used in computing per share amounts:
Basic		57,727		—		—		57,727		64,399		—		—		64,399
Diluted		59,867		—		—		59,867		66,233		—		—		66,233

The following tables present the impact of the financial statement adjustments on the Company’s previously reported Condensed Consolidated Balance Sheets as of December 31, 2022 and October 1, 2022.

	As of								As of
	December 31, 2022								October 1, 2022
	(Unaudited)								(Unaudited)
	Previously		Investigation		Other				Previously		Investigation		Other
	Reported		Adjustments		Adjustments		As Restated		Reported		Adjustments		Adjustments		As Restated
		(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	735,314	$	—	$	—	$	735,314	$	529,857	$	—	$	—	$	529,857
Accounts receivable, net of allowances		1,308,651		—		—		1,308,651		1,138,894		—		—		1,138,894
Contract assets		501,893		(17,423)		—		484,470		503,674		(27,953)		—		475,721
Inventories		1,728,000		(27,612)		—		1,700,388		1,691,081		(21,705)		14,723		1,684,099
Prepaid expenses and other current assets		80,675		—		—		80,675		62,044		—		—		62,044
Total current assets		4,354,533		(45,035)		—		4,309,498		3,925,550		(49,658)		14,723		3,890,615
Property, plant and equipment, net		591,155		—		—		591,155		575,170		—		—		575,170
Deferred tax assets		189,638		9,983		—		199,621		198,588		10,966		—		209,554
Other		171,886		—		—		171,886		160,192		—		—		160,192
Total assets	$	5,307,212	$	(35,052)	$	—	$	5,272,160	$	4,859,500	$	(38,692)	$	14,723	$	4,835,531
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,139,445	$	—	$	—	$	2,139,445	$	2,029,534	$	—	$	11,900	$	2,041,434
Accrued liabilities		292,212		1,466		1,600		295,278		275,735		1,441		4,423		281,599
Accrued payroll and related benefits		135,880		—		—		135,880		130,892		—		—		130,892
Short-term debt, including current portion of long-term debt		17,500		—		—		17,500		17,500		—		—		17,500
Total current liabilities		2,585,037		1,466		1,600		2,588,103		2,453,661		1,441		16,323		2,471,425
Long-term liabilities:
Long-term debt		325,007		—		—		325,007		329,237		—		—		329,237
Other		223,376		—		—		223,376		215,333		—		—		215,333
Total long-term liabilities		548,383		—		—		548,383		544,570		—		—		544,570
Contingencies (Note 8)
Stockholders’ equity		2,173,792		(36,518)		(1,600)		2,135,674		1,861,269		(40,133)		(1,600)		1,819,536
Total liabilities and stockholders’ equity	$	5,307,212	$	(35,052)	$	—	$	5,272,160	$	4,859,500	$	(38,692)	$	14,723	$	4,835,531

The following table presents the impact of the financial statement adjustments on the Company’s previously reported Condensed Consolidated Statements of Cash Flows for the three month period ended December 31, 2022 and January 1, 2022. There were no adjustments to cash flows provided by (used in) investing or financing activities for the three month period ended December 31, 2022 and January 1, 2022.

	Three Months Ended								Three Months Ended
	December 31, 2022								January 1, 2022
	(Unaudited)								(Unaudited)
	Previously		Investigation		Other				Previously		Investigation		Other
	Reported		Adjustments		Adjustments		As Restated		Reported		Adjustments		Adjustments		As Restated
		(In thousands)
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income before noncontrolling interest	$	91,499	$	3,615	$	—	$	95,114	$	58,634	$	(2,457)	$	—	$	56,177
Adjustments to reconcile net income before noncontrolling interest to cash provided by (used in) operating activities:
Depreciation and amortization		28,536		—		—		28,536		27,465		—		—		27,465
Stock-based compensation expense		11,609		—		—		11,609		9,032		—		—		9,032
Deferred income taxes		8,445		983		—		9,428		6,707		(648)		—		6,059
Other, net		(311)		—		—		(311)		(3,638)		—		—		(3,638)
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable		(166,333)		—		—		(166,333)		(106,972)		—		316		(106,656)
Contract assets		1,781		(10,530)		—		(8,749)		(15,666)		3,064		(2,791)		(15,393)
Inventories		(32,595)		5,907		14,723		(11,965)		(207,300)		88		(6,066)		(213,278)
Prepaid expenses and other assets		(27,657)		—		—		(27,657)		(2,939)		—		—		(2,939)
Accounts payable		101,265		—		(11,900)		89,365		234,525		—		6,066		240,591
Accrued liabilities		20,985		25		(2,823)		18,187		68,452		(47)		2,475		70,880
Cash provided by operating activities	$	37,224	$	—	$	—	$	37,224	$	68,300	$	—	$	—	$	68,300