Company Quick10K Filing
Cirrus Logic
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 60 $2,486
10-Q 2019-10-30 Quarter: 2019-09-28
10-Q 2019-07-31 Quarter: 2019-06-29
10-K 2019-05-24 Annual: 2019-03-30
10-Q 2019-01-30 Quarter: 2018-12-29
10-Q 2018-11-01 Quarter: 2018-09-29
10-Q 2018-08-01 Quarter: 2018-06-30
10-K 2018-05-30 Annual: 2018-03-31
10-Q 2018-02-05 Quarter: 2017-12-30
10-Q 2017-11-02 Quarter: 2017-09-23
10-Q 2017-08-02 Quarter: 2017-06-24
10-K 2017-05-24 Annual: 2017-03-25
10-Q 2017-02-01 Quarter: 2016-12-24
10-Q 2016-10-27 Quarter: 2016-09-24
10-Q 2016-07-27 Quarter: 2016-06-25
10-K 2016-05-25 Annual: 2016-03-26
10-Q 2016-01-27 Quarter: 2015-12-26
10-Q 2015-10-28 Quarter: 2015-09-26
10-Q 2015-07-22 Quarter: 2015-06-27
10-K 2015-05-27 Annual: 2015-03-28
10-Q 2015-01-28 Quarter: 2014-12-27
10-Q 2014-10-30 Quarter: 2014-09-27
10-Q 2014-07-23 Quarter: 2014-06-28
10-K 2014-05-28 Annual: 2014-03-29
10-Q 2014-01-28 Quarter: 2013-12-28
10-Q 2013-10-29 Quarter: 2013-09-28
10-Q 2013-07-25 Quarter: 2013-06-29
10-K 2013-05-29 Annual: 2013-03-30
10-Q 2013-01-24 Quarter: 2012-12-29
10-Q 2012-10-31 Quarter: 2012-09-29
10-Q 2012-07-30 Quarter: 2012-06-30
10-K 2012-05-30 Annual: 2012-03-31
10-Q 2012-01-26 Quarter: 2011-12-31
10-Q 2011-10-24 Quarter: 2011-09-24
10-Q 2011-07-25 Quarter: 2011-06-25
10-K 2011-05-25 Annual: 2011-03-26
10-Q 2011-01-27 Quarter: 2010-12-25
10-Q 2010-10-21 Quarter: 2010-09-25
10-Q 2010-07-20 Quarter: 2010-06-26
10-K 2010-06-01 Annual: 2010-03-27
10-Q 2010-01-28 Quarter: 2009-12-26
8-K 2019-10-30 Earnings, Regulation FD, Exhibits
8-K 2019-08-02 Shareholder Vote
8-K 2019-07-31 Earnings, Regulation FD, Exhibits
8-K 2019-05-20 Regulation FD, Exhibits
8-K 2019-05-01 Earnings, Regulation FD, Exhibits
8-K 2019-03-12 Officers
8-K 2019-01-30 Earnings, Regulation FD, Other Events, Exhibits
8-K 2018-12-12 Officers, Exhibits
8-K 2018-12-03 Regulation FD, Exhibits
8-K 2018-11-01 Earnings, Regulation FD, Exhibits
8-K 2018-08-17 Officers
8-K 2018-08-03 Shareholder Vote
8-K 2018-08-01 Earnings, Regulation FD, Exhibits
8-K 2018-05-02 Earnings, Regulation FD, Exhibits
8-K 2018-02-05 Earnings, Regulation FD, Other Events, Exhibits
CRUS 2019-09-28
Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 ex311-crus9282019.htm
EX-31.2 ex312-crus9282019.htm
EX-32.1 ex321-crus9282019.htm
EX-32.2 ex322-crus9282019.htm

Cirrus Logic Earnings 2019-09-28

CRUS 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
SEDG 3,049 1,222 542 1,097 354 111 145 2,873 32% 19.8 9%
FNSR 2,740 2,395 781 1,248 353 -43 78 1,857 28% 23.9 -2%
CRUS 2,486 1,470 353 1,169 595 99 181 2,288 51% 12.6 7%
ENPH 2,458 482 364 405 132 11 35 2,355 33% 66.8 2%
IPHI 2,269 890 547 333 190 -88 41 2,627 57% 64.6 -10%
POWI 2,158 620 77 395 202 58 86 2,058 51% 23.9 9%
AMBA 2,137 490 62 212 126 -41 -28 1,914 59% -68.3 -8%
OSIS 2,116 1,265 713 1,182 431 65 155 2,279 36% 14.7 5%
LSCC 2,046 617 321 398 172 16 70 2,115 43% 30.4 3%
OIIM 1,970 89 10 0 0 0 0 1,937 0%

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 28, 2019
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from ____ to ____
Commission File Number 0-17795
CIRRUS LOGIC, INC.
(Exact name of registrant as specified in its charter)
Delaware 77-0024818
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
800 W. 6th StreetAustin,Texas78701
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:(512)851-4000


 
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:

Title of each classTrading SymbolName of each exchange on which registered
Common stock, $0.001 par valueCRUSThe NASDAQ Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes   No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes       No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
Accelerated Filer
Non-accelerated Filer  
Smaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). 
Yes    No
The number of shares of the registrant's common stock, $0.001 par value, outstanding as of October 28, 2019 was 57,799,337.




CIRRUS LOGIC, INC.
FORM 10-Q QUARTERLY REPORT
QUARTERLY PERIOD ENDED SEPTEMBER 28, 2019
TABLE OF CONTENTS
໿
PART I - FINANCIAL INFORMATION
 
Item 1.Financial Statements 
 
Consolidated Condensed Balance Sheets - September 28, 2019 (unaudited) and March 30, 2019 
  
Consolidated Condensed Statements of Income (unaudited) - Three and Six Months Ended September 28, 2019 and September 29, 2018 
  
Consolidated Condensed Statements of Comprehensive Income (unaudited) - Three and Six Months Ended September 28, 2019 and September 29, 2018 
  
Consolidated Condensed Statements of Cash Flows (unaudited) - Six Months Ended September 28, 2019 and September 29, 2018 
Consolidated Condensed Statements of Stockholders' Equity (unaudited) - Three and Six Months Ended September 28, 2019 and September 29, 2018  
Notes to Consolidated Condensed Financial Statements (unaudited)
  
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
  
Item 3.Quantitative and Qualitative Disclosures about Market Risk
  
Item 4.Controls and Procedures
  
PART II - OTHER INFORMATION
  
Item 1.Legal Proceedings
  
Item 1A.Risk Factors
  
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
  
Item 3.Defaults Upon Senior Securities
  
Item 4.Mine Safety Disclosures
  
Item 5.Other Information
  
Item 6.Exhibits
  
Signatures
໿
໿

2


Part I. FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
September 28,March 30,
20192019
(unaudited) 
Assets  
Current assets:  
Cash and cash equivalents$221,937  $216,172  
Marketable securities22,563  70,183  
Accounts receivable, net217,962  120,656  
Inventories144,829  164,733  
Prepaid assets28,454  30,794  
Other current assets16,275  22,445  
Total current assets652,020  624,983  
  
Long-term marketable securities238,741  158,968  
Right-of-use lease assets142,834  —  
Property and equipment, net178,420  186,185  
Intangibles, net54,780  67,847  
Goodwill285,321  286,241  
Deferred tax assets9,026  8,727  
Other assets22,489  19,689  
Total assets$1,583,631  $1,352,640  
  
Liabilities and Stockholders' Equity  
Current liabilities:  
Accounts payable$109,374  $48,398  
Accrued salaries and benefits34,870  29,289  
Software license agreements17,915  21,514  
Lease liabilities13,751  —  
Other accrued liabilities16,886  16,339  
Total current liabilities192,796  115,540  
  
Long-term liabilities:  
Software license agreements2,258  8,662  
Non-current income taxes76,847  78,309  
Non-current lease liabilities133,105  —  
Other long-term liabilities  9,889  
Total long-term liabilities212,210  96,860  
  
Stockholders' equity:  
Capital stock1,392,650  1,363,736  
Accumulated deficit(213,274) (222,430) 
Accumulated other comprehensive loss(751) (1,066) 
Total stockholders' equity1,178,625  1,140,240  
Total liabilities and stockholders' equity$1,583,631  $1,352,640  

The accompanying notes are an integral part of these consolidated condensed financial statements.
໿
3


CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share amounts; unaudited)
Three Months EndedSix Months Ended
September 28,September 29,September 28,September 29,
2019201820192018
Net sales$388,912  $366,305  $627,165  $620,788  
Cost of sales180,979  181,186  296,738  311,110  
Gross profit207,933  185,119  330,427  309,678  
Operating expenses  
Research and development88,239  96,381  177,069  194,313  
Selling, general and administrative33,018  33,160  62,538  65,944  
Total operating expenses121,257  129,541  239,607  260,257  
Income from operations86,676  55,578  90,820  49,421  
Interest income2,530  1,805  5,074  3,511  
Interest expense(280) (280) (539) (539) 
Other expense(568) (378) (946) (168) 
Income before income taxes88,358  56,725  94,409  52,225  
Provision (benefit) for income taxes12,148  (1,448) 13,581  (1,676) 
Net income$76,210  $58,173  $80,828  $53,901  
  
Basic earnings per share$1.31  $0.96  $1.39  $0.88  
Diluted earnings per share$1.27  $0.93  $1.34  $0.86  
Basic weighted average common shares outstanding58,011  60,472  58,276  60,967  
Diluted weighted average common shares outstanding60,213  62,431  60,260  62,810  

The accompanying notes are an integral part of these consolidated condensed financial statements.
4


CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands; unaudited)
Three Months EndedSix Months Ended
September 28,September 29,September 28,September 29,
2019201820192018
Net income$76,210  $58,173  $80,828  $53,901  
Other comprehensive income (loss), before tax  
Foreign currency translation gain (loss)(1,427) 204  (1,403) (1,986) 
Unrealized gain on marketable securities385  198  2,500  239  
Cumulative effect of adoption of ASU 2018-02    (257)   
Provision for income taxes(81) (42) (525) (50) 
Comprehensive income $75,087  $58,533  $81,143  $52,104  

The accompanying notes are an integral part of these consolidated condensed financial statements.
5


CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
Six Months Ended
September 28,September 29,
20192018
Cash flows from operating activities:  
Net income$80,828  $53,901  
Adjustments to reconcile net income to net cash generated by operating activities:  
Depreciation and amortization37,911  45,296  
Stock-based compensation expense25,540  25,925  
Deferred income taxes(1,919) (1,497) 
Loss on retirement or write-off of long-lived assets5  883  
Other non-cash adjustments453  216  
Net change in operating assets and liabilities:  
Accounts receivable, net(97,305) (100,448) 
Inventories19,904  63,054  
Other assets(6,816) (4,001) 
Accounts payable and other accrued liabilities61,525  (516) 
Income taxes payable(2,291) (3,863) 
Net cash generated by operating activities117,835  78,950  
  
Cash flows from investing activities:  
Maturities and sales of available-for-sale marketable securities90,922  30,295  
Purchases of available-for-sale marketable securities(121,100) (31,118) 
Purchases of property, equipment and software(9,333) (18,842) 
Investments in technology(4,730) (2,248) 
Net cash used in investing activities(44,241) (21,913) 
  
Cash flows from financing activities:  
Issuance of common stock, net of shares withheld for taxes3,374  228  
Repurchase of stock to satisfy employee tax withholding obligations(1,202) (2,015) 
Repurchase and retirement of common stock(70,001) (94,997) 
Net cash used in financing activities(67,829) (96,784) 
  
Net increase (decrease) in cash and cash equivalents5,765  (39,747) 
  
Cash and cash equivalents at beginning of period216,172  235,604  
Cash and cash equivalents at end of period$221,937  $195,857  

The accompanying notes are an integral part of these consolidated condensed financial statements.
6


CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands; unaudited)
Common StockAdditional Paid-In CapitalAccumulated DeficitAccumulated Other Comprehensive Income / (Loss)Total
Three Months EndedSharesAmount
Balance, June 30, 201860,990  $61  $1,325,226  $(184,673) $(13,518) $1,127,096  
Net income—  —  —  58,173  —  58,173  
Change in unrealized gain (loss) on marketable securities, net of tax—  —  —  —  156  156  
Change in foreign currency translation adjustments—  —  —  —  204  204  
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes108  —  169  (957) —  (788) 
Repurchase and retirement of common stock(1,274) (1) —  (54,996) —  (54,997) 
Stock-based compensation—  —  13,131  —  —  13,131  
Balance, September 29, 201859,824  $60  $1,338,526  $(182,453) $(13,158) $1,142,975  
Balance, June 29, 201958,121  $58  $1,375,719  $(258,899) $372  $1,117,250  
Net income—  —  —  76,210  —  76,210  
Change in unrealized gain (loss) on marketable securities, net of tax—  —  —  —  304  304  
Change in foreign currency translation adjustments—  —  —  —  (1,427) (1,427) 
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes224  —  3,115  (584) —  2,531  
Repurchase and retirement of common stock(559) —  —  (30,001) —  (30,001) 
Stock-based compensation—  —  13,758  —  —  13,758  
Balance, September 28, 201957,786  $58  $1,392,592  $(213,274) $(751) $1,178,625  
Six Months Ended
Balance, March 31, 201861,960  $62  $1,312,372  $(139,345) $(11,361) $1,161,728  
Net income—  —  —  53,901  —  53,901  
Change in unrealized gain (loss) on marketable securities, net of tax—  —  —  —  189  189  
Change in foreign currency translation adjustments—  —  —  —  (1,986) (1,986) 
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes167  —  229  (2,014) —  (1,785) 
Repurchase and retirement of common stock(2,303) (2) —  (94,995) —  (94,997) 
Stock-based compensation—  —  25,925  —  —  25,925  
Balance, September 29, 201859,824  $60  $1,338,526  $(182,453) $(13,158) $1,142,975  
Balance, March 30, 201958,954  $59  $1,363,677  $(222,430) $(1,066) $1,140,240  
Net income—  —  —  80,828  —  80,828  
Change in unrealized gain (loss) on marketable securities, net of tax—  —  —  —  1,975  1,975  
Change in foreign currency translation adjustments—  —  —  —  (1,403) (1,403) 
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes279  —  3,375  (1,203) —  2,172  
Cumulative effect of adoption of ASU 2016-02, net of tax—  —  —  (726) —  (726) 
Cumulative effect of adoption of ASU 2018-02—  —  —  257  (257) —  
Repurchase and retirement of common stock(1,447) (1) —  (70,000) —  (70,001) 
Stock-based compensation—  —  25,540  —  —  25,540  
Balance, September 28, 201957,786  $58  $1,392,592  $(213,274) $(751) $1,178,625  

The accompanying notes are an integral part of these consolidated condensed financial statements.

7


CIRRUS LOGIC, INC.
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
1. Basis of Presentation

The consolidated condensed financial statements have been prepared by Cirrus Logic, Inc. (“Cirrus Logic,” “we,” “us,” “our,” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”).  The accompanying unaudited consolidated condensed financial statements do not include complete footnotes and financial presentations.  As a result, these financial statements should be read along with the audited consolidated financial statements and notes thereto for the year ended March 30, 2019, included in our Annual Report on Form 10-K filed with the Commission on May 24, 2019.  In our opinion, the financial statements reflect all material adjustments, including normal recurring adjustments, necessary for a fair presentation of the financial position, operating results and cash flows for those periods presented.  The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect reported assets, liabilities, revenues and expenses.  Actual results could differ from those estimates and assumptions.  Moreover, the results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the entire year. Additionally, certain prior period amounts have been reclassified to conform to current year presentation, with no impact to earnings.

2. Recently Issued Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases, which the Company adopted in the first quarter of fiscal year 2020. The new standard provides a number of optional practical expedients in transition. We elected the use-of-hindsight practical expedient and the ‘package of practical expedients’ which permit us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. This means, for qualifying leases, which are those with initial terms of less than twelve months, we will not recognize right-of-use ("ROU") assets or lease liabilities. We also do not separate lease and non-lease components for all classes of assets. Most of our operating lease commitments were subject to the new standard and recognized as ROU assets and operating lease liabilities upon adoption, which materially increased the total assets and total liabilities that we reported relative to such amounts prior to adoption.

In applying the use-of-hindsight practical expedient, we re-assessed whether we were reasonably certain to exercise extension options within our lease agreements. This resulted in the lease term being extended on a number of leases. The previously capitalized initial direct costs and accrued lease payments were recalculated assuming these extended lease terms had always applied, resulting in an adjustment of $0.7 million net of tax, to opening retained earnings on transition.

On adoption, we recognized additional operating liabilities, with corresponding ROU assets based on the present value of the lease payments over the lease term under current leasing contracts for existing operating leases. In addition, existing capitalized initial direct costs and accrued lease payments were reclassified from prepayments and accruals to the ROU asset. There was no income statement or material cash flow statement impact on adoption, nor were prior periods adjusted.

The effects of the changes made to our balance sheet at adoption were as follows (in thousands):

Balance at March 30, 2019Impact from ASU 2016-02 AdoptionBalance at March 31, 2019
Financial statement line item:
Prepaid assets$30,794  $(2,833) $27,961  
Right-of-use lease assets—  149,746  149,746  
Lease liabilities—  (14,899) (14,899) 
Other accrued liabilities(16,339) 11,071  (5,268) 
Non-current lease liabilities—  (143,085) (143,085) 
Other long-term liabilities(9,889) (965) (10,854) 
Accumulated deficit(222,430) 965  (221,465) 

8


In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  This ASU requires credit losses on available-for-sale debt securities to be presented as an allowance rather than a write-down. Unlike current U.S. GAAP, the credit losses could be reversed with changes in estimates, and recognized in current year earnings.  This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods.  Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods.  The Company is currently evaluating the impact of this ASU, but does not expect a material impact to the financial statements upon adoption. 

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.  This ASU eliminates step two of the goodwill impairment test.  An impairment charge is to be recognized for the amount by which the current value exceeds the fair value. This ASU is effective for annual periods beginning after December 15, 2019, including interim periods.  Early adoption is permitted, for interim or annual goodwill impairment tests performed after January 1, 2017, and should be applied prospectively. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. The Company is currently evaluating the impact of this ASU, but does not expect a material impact to the financial statements upon adoption.

In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows for the classification of stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income to retained earnings. This ASU is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The standard should be applied in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in tax rate is recognized. The Company adopted this ASU in the first quarter of fiscal year 2020 and elected to reclassify the stranded tax effects of $0.3 million from accumulated other comprehensive income to retained earnings in the period of adoption.

In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This ASU expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees and will apply to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year, with early adoption permitted. The Company adopted this ASU in the first quarter of fiscal year 2020, with no material impact to the financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. This ASU adjusts current required disclosures related to fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of this ASU, but does not expect a material impact to the financial statements upon adoption.

In August 2018, the Commission adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The final rule was published in the Federal Register on October 4, 2018, effective November 5, 2018. The Company adopted the amendments in the first quarter of fiscal year 2020. See consolidated condensed statements of stockholders' equity.

3. Marketable Securities

The Company’s investments that have original maturities greater than 90 days have been classified as available-for-sale securities in accordance with U.S. GAAP.  Marketable securities are categorized on the consolidated condensed balance sheet as short- and long-term marketable securities, as appropriate.


9


The following table is a summary of available-for-sale securities at September 28, 2019 (in thousands):
As of September 28, 2019Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities$234,115  $2,810  $(30) $236,895  
Non-U.S. government securities14,404  111  (7) 14,508  
U.S. Treasury securities9,891  32  (22) 9,901  
Total securities$258,410  $2,953  $(59) $261,304  

The Company typically invests in highly-rated securities with original maturities generally ranging from one to three years. The Company's specifically identified gross unrealized loss of $0.1 million related to securities with total amortized cost of approximately $28.2 million at September 28, 2019.  Securities in a continuous unrealized loss position for more than 12 months as of September 28, 2019 had an aggregate amortized cost of $5.5 million and an immaterial amount of aggregate unrealized loss. The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipated or actual changes in credit rating and duration management.  When evaluating an investment for other-than-temporary impairment, the Company reviews factors including the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, changes in market interest rates and whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s cost basis. As of September 28, 2019, the Company did not consider any of its investments to be other-than-temporarily impaired.   

The following table is a summary of available-for-sale securities at March 30, 2019 (in thousands):
໿
໿
As of March 30, 2019Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities$215,098  $1,027  $(600) $215,525  
Non-U.S. government securities13,209  8  (40) 13,177  
Agency discount notes450    (1) 449  
Total securities$228,757  $1,035  $(641) $229,151  

The Company’s specifically identified gross unrealized losses of $0.6 million related to securities with total amortized cost of approximately $123.1 million at March 30, 2019. Securities in a continuous unrealized loss position for more than 12 months as of March 30, 2019 had an aggregate amortized cost of $120.3 million and an aggregate unrealized loss of $0.6 million. The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipated or actual changes in credit rating and duration management.  When evaluating an investment for other-than-temporary impairment, the Company reviews factors including the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, changes in market interest rates and whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s cost basis. As of March 30, 2019, the Company did not consider any of its investments to be other-than-temporarily impaired.  

The cost and estimated fair value of available-for-sale securities by contractual maturities were as follows (in thousands):
໿
September 28, 2019March 30, 2019
AmortizedEstimatedAmortizedEstimated
CostFair ValueCostFair Value
Within 1 year$22,527  $22,563  $70,490  $70,183  
After 1 year235,883  238,741  158,267  158,968  
Total$258,410  $261,304  $228,757  $229,151  

໿
໿
10


4. Fair Value of Financial Instruments

The Company has determined that the only material assets and liabilities in the Company’s financial statements that are required to be measured at fair value on a recurring basis are the Company’s cash equivalents and marketable securities portfolio.  The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and signi