Company Quick10K Filing
Quick10K
Skyworks Solutions
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$83.64 173 $14,440
10-Q 2019-06-28 Quarter: 2019-06-28
10-Q 2019-03-29 Quarter: 2019-03-29
10-Q 2018-12-28 Quarter: 2018-12-28
10-K 2018-09-28 Annual: 2018-09-28
10-Q 2018-06-29 Quarter: 2018-06-29
10-Q 2018-03-30 Quarter: 2018-03-30
10-Q 2017-12-29 Quarter: 2017-12-29
10-K 2017-09-29 Annual: 2017-09-29
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-Q 2016-12-30 Quarter: 2016-12-30
10-K 2016-09-30 Annual: 2016-09-30
10-Q 2016-07-01 Quarter: 2016-07-01
10-Q 2016-04-01 Quarter: 2016-04-01
10-Q 2016-01-01 Quarter: 2016-01-01
10-K 2015-10-02 Annual: 2015-10-02
10-Q 2015-07-03 Quarter: 2015-07-03
10-Q 2015-04-03 Quarter: 2015-04-03
10-Q 2015-01-02 Quarter: 2015-01-02
10-K 2014-10-03 Annual: 2014-10-03
10-Q 2014-06-27 Quarter: 2014-06-27
10-Q 2014-03-28 Quarter: 2014-03-28
10-Q 2013-12-27 Quarter: 2013-12-27
8-K 2019-08-07 Earnings, Other Events, Exhibits
8-K 2019-06-04 Regulation FD, Exhibits
8-K 2019-05-08 Shareholder Vote
8-K 2019-05-02 Earnings, Other Events, Exhibits
8-K 2019-02-05 Earnings, Other Events, Exhibits
8-K 2019-01-30 Other Events
8-K 2019-01-08 Earnings, Exhibits
8-K 2018-11-13 Officers
8-K 2018-11-08 Earnings, Other Events, Exhibits
8-K 2018-08-03 Enter Agreement, Regulation FD, Exhibits
8-K 2018-07-23 Officers
8-K 2018-07-19 Earnings, Other Events, Exhibits
8-K 2018-05-11 Shareholder Vote
8-K 2018-05-03 Earnings, Other Events, Exhibits
8-K 2018-02-14 Officers
WBK Westpac Banking 64,930
ABMD Abiomed 11,820
DCI Donaldson 6,650
CNDT Conduent 1,620
FMNB Farmers National Banc 407
DRYS Dryships 340
NBRV Nabriva Therapeutics 169
UG United Guardian 87
DXYN Dixie Group 11
EST Estre Ambiental 0
SWKS 2019-06-28
Part 1. 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 6. Exhibits.
EX-10.1 q319exhibit101.htm
EX-31.1 q319exhibit311.htm
EX-31.2 q319exhibit312.htm
EX-32.1 q319exhibit321.htm
EX-32.2 q319exhibit322.htm

Skyworks Solutions Earnings 2019-06-28

SWKS 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
false--09-27Q320190000004127P3MP3MP1YP1Y6000007000000.250.2552500000052500000022840000022980000017740000017160000000000P0Y00250000002500000000 0000004127 2018-09-29 2019-06-28 0000004127 2019-08-01 0000004127 2017-09-30 2018-06-29 0000004127 2019-03-30 2019-06-28 0000004127 2018-03-31 2018-06-29 0000004127 2019-06-28 0000004127 2018-09-28 0000004127 us-gaap:AdditionalPaidInCapitalMember 2017-09-30 2017-12-29 0000004127 us-gaap:RetainedEarningsMember 2018-03-31 2018-06-29 0000004127 us-gaap:AdditionalPaidInCapitalMember 2018-06-29 0000004127 us-gaap:CommonStockMember 2018-03-30 0000004127 2017-12-29 0000004127 us-gaap:TreasuryStockMember 2018-09-29 2018-12-28 0000004127 us-gaap:TreasuryStockMember 2018-12-29 2019-03-29 0000004127 us-gaap:CommonStockMember 2018-12-28 0000004127 us-gaap:AdditionalPaidInCapitalMember 2018-09-29 2018-12-28 0000004127 us-gaap:RetainedEarningsMember 2019-03-29 0000004127 us-gaap:CommonStockMember 2017-12-30 2018-03-30 0000004127 us-gaap:RetainedEarningsMember 2017-12-30 2018-03-30 0000004127 us-gaap:TreasuryStockMember 2019-03-29 0000004127 us-gaap:TreasuryStockMember 2018-03-30 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-30 0000004127 us-gaap:CommonStockMember 2017-09-30 2017-12-29 0000004127 us-gaap:TreasuryStockMember 2017-12-30 2018-03-30 0000004127 us-gaap:AdditionalPaidInCapitalMember 2018-12-29 2019-03-29 0000004127 us-gaap:CommonStockMember 2019-03-29 0000004127 us-gaap:CommonStockMember 2019-03-30 2019-06-28 0000004127 us-gaap:RetainedEarningsMember 2018-12-29 2019-03-29 0000004127 us-gaap:AdditionalPaidInCapitalMember 2018-09-28 0000004127 us-gaap:CommonStockMember 2018-03-31 2018-06-29 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-28 0000004127 us-gaap:CommonStockMember 2018-09-28 0000004127 us-gaap:TreasuryStockMember 2017-12-29 0000004127 us-gaap:TreasuryStockMember 2017-09-30 2017-12-29 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-29 2018-12-28 0000004127 2018-06-29 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-09-30 2017-12-29 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-29 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-29 2019-03-29 0000004127 us-gaap:RetainedEarningsMember 2019-06-28 0000004127 2018-09-29 2018-12-28 0000004127 2017-09-30 2017-12-29 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-28 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 2018-06-29 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-30 2019-06-28 0000004127 us-gaap:CommonStockMember 2018-09-29 2018-12-28 0000004127 us-gaap:CommonStockMember 2017-12-29 0000004127 2018-12-29 2019-03-29 0000004127 us-gaap:RetainedEarningsMember 2017-09-29 0000004127 us-gaap:CommonStockMember 2018-12-29 2019-03-29 0000004127 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 2018-06-29 0000004127 us-gaap:TreasuryStockMember 2018-03-31 2018-06-29 0000004127 us-gaap:AdditionalPaidInCapitalMember 2019-03-30 2019-06-28 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-30 2018-03-30 0000004127 us-gaap:RetainedEarningsMember 2018-09-29 2018-12-28 0000004127 us-gaap:AdditionalPaidInCapitalMember 2017-09-29 0000004127 us-gaap:RetainedEarningsMember 2018-03-30 0000004127 us-gaap:TreasuryStockMember 2018-12-28 0000004127 us-gaap:TreasuryStockMember 2019-03-30 2019-06-28 0000004127 us-gaap:CommonStockMember 2019-06-28 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-29 0000004127 2018-12-28 0000004127 us-gaap:RetainedEarningsMember 2019-03-30 2019-06-28 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-09-29 0000004127 us-gaap:CommonStockMember 2017-09-29 0000004127 us-gaap:AdditionalPaidInCapitalMember 2017-12-29 0000004127 us-gaap:TreasuryStockMember 2019-06-28 0000004127 2017-09-29 0000004127 us-gaap:TreasuryStockMember 2017-09-29 0000004127 2017-12-30 2018-03-30 0000004127 us-gaap:TreasuryStockMember 2018-06-29 0000004127 us-gaap:DeferredTaxAssetDomain 2018-09-28 0000004127 us-gaap:RetainedEarningsMember 2017-12-29 0000004127 us-gaap:CommonStockMember 2018-06-29 0000004127 us-gaap:RetainedEarningsMember 2017-09-30 2017-12-29 0000004127 us-gaap:AdditionalPaidInCapitalMember 2017-12-30 2018-03-30 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-28 0000004127 us-gaap:TreasuryStockMember 2018-09-28 0000004127 us-gaap:RetainedEarningsMember 2018-09-28 0000004127 us-gaap:RetainedEarningsMember 2018-12-28 0000004127 us-gaap:AdditionalPaidInCapitalMember 2019-03-29 0000004127 2018-03-30 0000004127 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-29 0000004127 us-gaap:AdditionalPaidInCapitalMember 2018-12-28 0000004127 us-gaap:AdditionalPaidInCapitalMember 2018-03-30 0000004127 2019-03-29 0000004127 us-gaap:RetainedEarningsMember 2018-06-29 0000004127 us-gaap:AdditionalPaidInCapitalMember 2019-06-28 0000004127 2017-09-30 2018-09-28 0000004127 srt:MaximumMember us-gaap:AccountingStandardsUpdate201602Member 2018-09-29 2019-06-28 0000004127 srt:MinimumMember us-gaap:AccountingStandardsUpdate201602Member 2018-09-29 2019-06-28 0000004127 us-gaap:AccountingStandardsUpdate201409Member 2018-09-29 2019-06-28 0000004127 us-gaap:EMEAMember 2018-09-29 2019-06-28 0000004127 country:US 2018-03-31 2018-06-29 0000004127 country:US 2019-03-30 2019-06-28 0000004127 us-gaap:EMEAMember 2019-03-30 2019-06-28 0000004127 country:TW 2019-03-30 2019-06-28 0000004127 us-gaap:EMEAMember 2018-03-31 2018-06-29 0000004127 country:CN 2018-03-31 2018-06-29 0000004127 swks:AsiaOtherMember 2018-09-29 2019-06-28 0000004127 country:US 2017-09-30 2018-06-29 0000004127 swks:AsiaOtherMember 2018-03-31 2018-06-29 0000004127 swks:AsiaOtherMember 2019-03-30 2019-06-28 0000004127 country:US 2018-09-29 2019-06-28 0000004127 country:CN 2019-03-30 2019-06-28 0000004127 country:CN 2018-09-29 2019-06-28 0000004127 country:TW 2018-03-31 2018-06-29 0000004127 us-gaap:EMEAMember 2017-09-30 2018-06-29 0000004127 country:TW 2018-09-29 2019-06-28 0000004127 country:KR 2017-09-30 2018-06-29 0000004127 country:TW 2017-09-30 2018-06-29 0000004127 swks:AsiaOtherMember 2017-09-30 2018-06-29 0000004127 country:CN 2017-09-30 2018-06-29 0000004127 country:KR 2018-09-29 2019-06-28 0000004127 country:KR 2018-03-31 2018-06-29 0000004127 country:KR 2019-03-30 2019-06-28 0000004127 us-gaap:USStatesAndPoliticalSubdivisionsMember 2018-09-28 0000004127 us-gaap:CorporateDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:USTreasuryAndGovernmentMember 2019-06-28 0000004127 us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-06-28 0000004127 us-gaap:OtherNoncurrentAssetsMember us-gaap:USTreasuryAndGovernmentMember 2019-06-28 0000004127 us-gaap:OtherNoncurrentAssetsMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-06-28 0000004127 us-gaap:OtherNoncurrentAssetsMember us-gaap:CorporateDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:OtherCurrentAssetsMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-06-28 0000004127 us-gaap:OtherCurrentAssetsMember us-gaap:USTreasuryAndGovernmentMember 2018-09-28 0000004127 us-gaap:OtherNoncurrentAssetsMember 2019-06-28 0000004127 us-gaap:OtherNoncurrentAssetsMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2018-09-28 0000004127 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:OtherCurrentAssetsMember us-gaap:CorporateDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:OtherNoncurrentAssetsMember 2018-09-28 0000004127 us-gaap:OtherCurrentAssetsMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2018-09-28 0000004127 us-gaap:OtherNoncurrentAssetsMember us-gaap:USTreasuryAndGovernmentMember 2018-09-28 0000004127 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:OtherCurrentAssetsMember us-gaap:CorporateDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:OtherCurrentAssetsMember 2018-09-28 0000004127 us-gaap:OtherCurrentAssetsMember us-gaap:USTreasuryAndGovernmentMember 2019-06-28 0000004127 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:OtherNoncurrentAssetsMember us-gaap:CorporateDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:OtherCurrentAssetsMember 2019-06-28 0000004127 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-28 0000004127 us-gaap:ForeignGovernmentDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-09-28 0000004127 us-gaap:FairValueMeasurementsRecurringMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2019-06-28 0000004127 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2019-06-28 0000004127 us-gaap:FairValueMeasurementsRecurringMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2019-06-28 0000004127 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2018-09-28 0000004127 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2018-09-28 0000004127 us-gaap:BuildingAndBuildingImprovementsMember 2018-09-28 0000004127 us-gaap:LandAndLandImprovementsMember 2018-09-28 0000004127 us-gaap:LandAndLandImprovementsMember 2019-06-28 0000004127 us-gaap:FurnitureAndFixturesMember 2019-06-28 0000004127 us-gaap:FurnitureAndFixturesMember 2018-09-28 0000004127 us-gaap:BuildingAndBuildingImprovementsMember 2019-06-28 0000004127 us-gaap:ConstructionInProgressMember 2018-09-28 0000004127 us-gaap:ConstructionInProgressMember 2019-06-28 0000004127 us-gaap:MachineryAndEquipmentMember 2019-06-28 0000004127 us-gaap:MachineryAndEquipmentMember 2018-09-28 0000004127 us-gaap:InProcessResearchAndDevelopmentMember 2018-09-28 0000004127 us-gaap:TradeNamesMember 2019-06-28 0000004127 us-gaap:CustomerRelationshipsMember 2018-09-29 2019-06-28 0000004127 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-09-28 0000004127 us-gaap:ComputerSoftwareIntangibleAssetMember 2019-06-28 0000004127 us-gaap:InProcessResearchAndDevelopmentMember 2019-06-28 0000004127 us-gaap:CustomerRelationshipsMember 2019-06-28 0000004127 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-09-29 2019-06-28 0000004127 us-gaap:CustomerRelationshipsMember 2018-09-28 0000004127 us-gaap:TradeNamesMember 2018-09-28 0000004127 us-gaap:ComputerSoftwareIntangibleAssetMember 2018-09-28 0000004127 us-gaap:TechnologyBasedIntangibleAssetsMember 2019-06-28 0000004127 us-gaap:TradeNamesMember 2018-09-29 2019-06-28 0000004127 us-gaap:ComputerSoftwareIntangibleAssetMember 2018-09-29 2019-06-28 0000004127 us-gaap:CostOfSalesMember 2019-06-28 0000004127 us-gaap:OperatingExpenseMember 2019-06-28 0000004127 us-gaap:InProcessResearchAndDevelopmentMember 2018-09-29 2019-06-28 0000004127 swks:YearFiveMemberDomain 2019-06-28 0000004127 swks:YearSevenMember 2019-06-28 0000004127 swks:YearSixMember 2019-06-28 0000004127 swks:YearsOnethroughFourMemberDomain 2019-06-28 0000004127 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-03-31 2018-06-29 0000004127 us-gaap:ResearchAndDevelopmentExpenseMember 2019-03-30 2019-06-28 0000004127 us-gaap:CostOfSalesMember 2017-09-30 2018-06-29 0000004127 us-gaap:ResearchAndDevelopmentExpenseMember 2018-03-31 2018-06-29 0000004127 us-gaap:ResearchAndDevelopmentExpenseMember 2017-09-30 2018-06-29 0000004127 us-gaap:CostOfSalesMember 2018-09-29 2019-06-28 0000004127 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-03-30 2019-06-28 0000004127 us-gaap:ResearchAndDevelopmentExpenseMember 2018-09-29 2019-06-28 0000004127 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2017-09-30 2018-06-29 0000004127 us-gaap:CostOfSalesMember 2019-03-30 2019-06-28 0000004127 us-gaap:CostOfSalesMember 2018-03-31 2018-06-29 0000004127 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-09-29 2019-06-28 0000004127 2019-01-30 2019-01-30 0000004127 2019-01-30 0000004127 us-gaap:DividendDeclaredMember us-gaap:SubsequentEventMember 2019-09-17 2019-09-17 0000004127 us-gaap:DividendDeclaredMember us-gaap:SubsequentEventMember 2019-09-17 0000004127 us-gaap:DividendDeclaredMember us-gaap:SubsequentEventMember 2019-08-07 2019-08-07 0000004127 us-gaap:DividendDeclaredMember us-gaap:SubsequentEventMember 2019-08-27 2019-08-27 xbrli:shares xbrli:pure iso4217:USD iso4217:USD xbrli:shares
Table of Contents

 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 28, 2019
OR
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 001-05560
Skyworks Solutions, Inc.
(Exact name of registrant as specified in its charter)
Delaware
04-2302115
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
20 Sylvan Road,
Woburn
Massachusetts
01801
(Address of principal executive offices)
(Zip Code)
 
 
 
 
 
(781)
376-3000
 
(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, par value $0.25 per share
SWKS
Nasdaq Global Select Market

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.   þ Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).  þ 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 the 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
þ
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 provided 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 þ No

As of August 1, 2019, the registrant had 171,703,134 shares of common stock, par value $0.25 per share, outstanding.


1


SKYWORKS SOLUTIONS, INC.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 28, 2019

TABLE OF CONTENTS
 
PAGE NO.
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1

Table of Contents

PART 1. FINANCIAL INFORMATION

Item 1. Financial Statements.

SKYWORKS SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in millions, except per share amounts)
 
Three Months Ended
 
Nine Months Ended
 
June 28,
2019
 
June 29,
2018
 
June 28,
2019
 
June 29,
2018
Net revenue
$
767.0

 
$
894.3

 
$
2,549.4

 
$
2,859.6

Cost of goods sold
454.5

 
442.7

 
1,351.6

 
1,412.5

Gross profit
312.5

 
451.6

 
1,197.8

 
1,447.1

Operating expenses:


 


 
 
 
 
Research and development
100.6

 
96.8

 
317.3

 
301.5

Selling, general and administrative
46.8

 
44.6

 
142.5

 
153.4

Amortization of intangibles
5.5

 
3.9

 
18.6

 
12.0

Restructuring and other charges

 

 
1.3

 
1.0

Total operating expenses
152.9

 
145.3

 
479.7

 
467.9

Operating income
159.6

 
306.3

 
718.1

 
979.2

Other income, net
2.3

 
4.5

 
8.9

 
9.5

Income before income taxes
161.9

 
310.8

 
727.0

 
988.7

Provision for income taxes
17.8

 
24.3

 
84.0

 
355.8

Net income
$
144.1

 
$
286.5

 
$
643.0

 
$
632.9

Earnings per share:


 


 
 
 
 
Basic
$
0.83

 
$
1.58

 
$
3.69

 
$
3.47

Diluted
$
0.83

 
$
1.57

 
$
3.67

 
$
3.44

Weighted average shares:
 
 
 
 
 
 
 
Basic
172.6

 
181.2

 
174.3

 
182.3

Diluted
173.4

 
182.8

 
175.2

 
184.2

 
 
 
 
 
 
 
 
Cash dividends declared and paid per share
$
0.38

 
$
0.32

 
$
1.14

 
$
0.96


    
See accompanying Notes to Consolidated Financial Statements.



2

Table of Contents

SKYWORKS SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited, in millions)
 
Three Months Ended
 
Nine Months Ended
 
June 28,
2019
 
June 29,
2018
 
June 28,
2019
 
June 29,
2018
Net income
$
144.1

 
$
286.5

 
$
643.0

 
$
632.9

Other comprehensive income
 
 
 
 
 
 
 
Fair value of investments
0.3

 
(0.1
)
 
0.5

 
(0.1
)
Pension adjustments

 

 
0.5

 

Foreign currency translation adjustment

 
0.1

 

 
(0.2
)
Comprehensive income
$
144.4

 
$
286.5

 
$
644.0

 
$
632.6


See accompanying Notes to Consolidated Financial Statements.

3

Table of Contents


SKYWORKS SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except per share amounts)
 
As of
 
June 28,
2019
 
September 28,
2018
ASSETS
(unaudited)
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
742.8

 
$
733.3

Marketable securities
192.2

 
294.1

Receivables, net of allowance for doubtful accounts of $0.7 and $0.6, respectively
557.8

 
655.8

Inventory
580.8

 
490.2

Other current assets
132.7

 
88.8

Total current assets
2,206.3

 
2,262.2

Property, plant and equipment, net
1,230.1

 
1,140.9

Goodwill
1,189.8

 
1,189.8

Intangible assets, net
114.1

 
143.7

Deferred tax assets, net
33.7

 
36.5

Marketable securities
35.1

 
22.8

Other long-term assets
33.2

 
33.0

Total assets
$
4,842.3

 
$
4,828.9

LIABILITIES AND STOCKHOLDERS’ EQUITY


 


Current liabilities:


 


Accounts payable
$
218.9

 
$
229.9

Accrued compensation and benefits
85.2

 
85.2

Other current liabilities
92.4

 
74.6

Total current liabilities
396.5

 
389.7

Long-term tax liabilities
315.5

 
310.5

Other long-term liabilities
30.4

 
31.7

Total liabilities
742.4

 
731.9

Commitments and contingencies (Note 9)


 


Stockholders’ equity:


 


Preferred stock, no par value: 25.0 shares authorized, no shares issued

 

Common stock, $0.25 par value: 525.0 shares authorized; 229.8 shares issued and 171.6 shares outstanding at June 28, 2019, and 228.4 shares issued and 177.4 shares outstanding at September 28, 2018
42.9

 
44.4

Additional paid-in capital
3,153.3

 
3,061.0

Treasury stock, at cost
(3,265.6
)
 
(2,732.5
)
Retained earnings
4,177.1

 
3,732.9

Accumulated other comprehensive loss
(7.8
)
 
(8.8
)
Total stockholders’ equity
4,099.9

 
4,097.0

Total liabilities and stockholders’ equity
$
4,842.3

 
$
4,828.9


See accompanying Notes to Consolidated Financial Statements.

4

Table of Contents

SKYWORKS SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In millions)
 
Shares of common stock
 
Par value of common stock
 
Shares of treasury stock
 
Value of treasury stock
 
Additional paid-in capital
 
Retained earnings
 
Accumulated other comprehensive loss
 
Total stockholders equity
Balance at September 28, 2018
177.4

 
$
44.4

 
51.0

 
$
(2,732.5
)
 
$
3,061.0

 
$
3,732.9

 
$
(8.8
)
 
$
4,097.0

Net income

 

 

 

 

 
284.9

 

 
284.9

Exercise and settlement of share based awards and related tax benefit, net of shares withheld for taxes
0.7

 
0.1

 
0.2

 
(19.6
)
 
5.1

 

 

 
(14.4
)
Share-based compensation expense

 

 

 

 
21.3

 

 

 
21.3

Stock repurchase program
(4.0
)
 
(1.0
)
 
4.0

 
(284.0
)
 
1.0

 

 

 
(284.0
)
Dividends declared

 

 

 

 

 
(67.1
)
 

 
(67.1
)
Other comprehensive loss

 

 

 

 

 

 
0.6

 
0.6

Balance at December 28, 2018
174.1

 
$
43.5

 
55.2

 
$
(3,036.1
)
 
$
3,088.4

 
$
3,950.7

 
$
(8.2
)
 
$
4,038.3

Net income

 

 

 

 

 
214.0

 

 
214.0

Exercise and settlement of share based awards and related tax benefit, net of shares withheld for taxes
0.3

 
0.1

 
0.1

 
(1.5
)
 
15.5

 

 

 
14.2

Share-based compensation expense

 

 

 

 
21.8

 

 

 
21.8

Stock repurchase program
(1.7
)
 
(0.4
)
 
1.7

 
(141.5
)
 
0.5

 

 

 
(141.5
)
Dividends declared

 

 

 

 

 
(66.0
)
 

 
(66.0
)
Other comprehensive loss

 

 

 

 

 

 
0.1

 
0.1

Balance at March 29, 2019
172.7

 
$
43.2

 
57.0

 
$
(3,179.1
)
 
$
3,126.2

 
$
4,098.7

 
$
(8.1
)
 
$
4,080.9

    Net income

 

 

 

 

 
144.1

 

 
144.1

Exercise and settlement of share based awards and related tax benefit, net of shares withheld for taxes
0.2

 

 

 
(0.7
)
 
7.8

 

 

 
7.1

Share-based compensation expense

 

 

 

 
19.0

 

 

 
19.0

Stock repurchase program
(1.2
)
 
(0.3
)
 
1.2

 
(85.8
)
 
0.2

 

 

 
(85.8
)
Dividends declared

 

 

 

 

 
(65.7
)
 

 
(65.7
)
Other comprehensive loss

 

 

 

 

 

 
0.3

 
0.3

Balance at June 28, 2019
171.6

 
$
42.9

 
58.2

 
$
(3,265.6
)
 
$
3,153.3

 
$
4,177.1

 
$
(7.8
)
 
$
4,099.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at September 29, 2017
183.1

 
$
45.8

 
42.9

 
$
(1,925.0
)
 
$
2,893.8

 
$
3,059.6

 
$
(8.5
)
 
$
4,065.7

Net income

 

 

 

 

 
70.4

 

 
70.4

Exercise and settlement of share based awards and related tax benefit, net of shares withheld for taxes
0.9

 
0.2

 
0.4

 
(44.7
)
 
14.7

 

 

 
(29.8
)
Share-based compensation expense

 

 

 

 
27.4

 
(1.9
)
 

 
25.5

Stock repurchase program
(1.6
)
 
(0.4
)
 
1.6

 
(172.5
)
 
0.4

 

 

 
(172.5
)
Dividends declared

 

 

 

 

 
(58.8
)
 

 
(58.8
)
Other comprehensive income

 

 

 

 

 

 

 

Balance at December 29, 2017
182.4

 
$
45.6

 
44.9

 
$
(2,142.2
)
 
$
2,936.3

 
$
3,069.3

 
$
(8.5
)
 
$
3,900.5

Net income

 

 

 

 

 
276.0

 

 
276.0

Exercise and settlement of share based awards and related tax benefit, net of shares withheld for taxes
0.7

 
0.2

 

 
(1.7
)
 
27.7

 

 

 
26.2

Share-based compensation expense

 

 

 

 
38.1

 

 

 
38.1

Stock repurchase program
(1.0
)
 
(0.3
)
 
1.0

 
(111.8
)
 
0.3

 

 

 
(111.8
)
Dividends declared

 

 

 

 

 
(58.5
)
 

 
(58.5
)
Other comprehensive income

 

 

 

 

 

 
(0.3
)
 
(0.3
)

5

Table of Contents

Balance at March 30, 2018
182.1

 
$
45.5

 
45.9

 
$
(2,255.7
)
 
$
3,002.4

 
$
3,286.8

 
$
(8.8
)
 
$
4,070.2

    Net income

 

 

 

 

 
286.5

 

 
286.5

Exercise and settlement of share based awards and related tax benefit, net of shares withheld for taxes
0.1

 

 

 
(1.0
)
 
3.6

 

 

 
2.6

Share-based compensation expense

 

 

 

 
21.7

 

 

 
21.7

Stock repurchase program
(2.5
)
 
(0.6
)
 
2.5

 
(240.2
)
 
0.6

 

 

 
(240.2
)
Dividends declared

 

 

 

 

 
(57.8
)
 

 
(57.8
)
Other comprehensive income

 

 

 

 

 

 

 

Balance at June 29, 2018
179.7

 
$
44.9

 
48.4

 
$
(2,496.9
)
 
$
3,028.3

 
$
3,515.4

 
$
(8.8
)
 
$
4,082.9



6

Table of Contents


SKYWORKS SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)
 
Nine Months Ended
 
June 28,
2019
 
June 29,
2018
Cash flows from operating activities:
 
 
 
Net income
$
643.0

 
$
632.9

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Share-based compensation
58.6

 
86.3

Depreciation
235.4

 
198.9

Amortization of intangible assets, including inventory step-up
43.3

 
16.5

Deferred income taxes
(12.1
)
 
35.6

Changes in fair value of contingent consideration
(3.1
)
 
(7.8
)
    Other, net
0.1

 
0.3

Changes in assets and liabilities:


 


Receivables, net
98.0

 
(13.7
)
Inventory
(89.7
)
 
(10.2
)
Other current and long-term assets
(44.1
)
 
(45.8
)
Accounts payable
(24.5
)
 
(56.3
)
Other current and long-term liabilities
45.5

 
216.3

Net cash provided by operating activities
950.4

 
1,053.0

Cash flows from investing activities:
 
 
 
Capital expenditures
(314.0
)
 
(310.0
)
Purchased intangibles
(11.8
)
 
(8.6
)
Purchases of marketable securities
(243.7
)
 
(523.2
)
Sales and maturities of marketable securities
334.4

 
32.6

Net cash used in investing activities
(235.1
)
 
(809.2
)
Cash flows from financing activities:
 
 
 
Repurchase of common stock - payroll tax withholdings on equity awards
(21.6
)
 
(47.5
)
Repurchase of common stock - stock repurchase program
(511.3
)
 
(524.5
)
Dividends paid
(198.8
)
 
(175.2
)
Net proceeds from exercise of stock options
14.6

 
34.8

Proceeds from employee stock purchase plan
11.3

 
9.9

Net cash used in financing activities
(705.8
)
 
(702.5
)
Net increase (decrease) in cash and cash equivalents
9.5

 
(458.7
)
Cash and cash equivalents at beginning of period
733.3

 
1,616.8

Cash and cash equivalents at end of period
$
742.8

 
$
1,158.1

Supplemental cash flow disclosures:
 
 
 
Income taxes paid
$
116.5

 
$
117.1

 
See accompanying Notes to Consolidated Financial Statements.


7

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.     DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Skyworks Solutions, Inc., together with its consolidated subsidiaries (“Skyworks” or the “Company”), is empowering the wireless networking revolution. The Company’s analog semiconductors are connecting people, places, and things, spanning a number of new applications within the aerospace, automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet and wearable markets.

The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and footnote disclosures, normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. However, in management’s opinion, the financial information reflects all adjustments, including those of a normal recurring nature, necessary to present fairly the results of operations, financial position, and cash flows of the Company for the periods presented. The results of operations, financial position, and cash flows for the Company during the interim periods are not necessarily indicative of those expected for the full year. This information should be read in conjunction with the Company’s financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2018, filed with the SEC on November 15, 2018, as amended by Amendment No. 1 to such Annual Report on Form 10-K, filed with the SEC on January 25, 2019 (the “2018 10-K”).

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenue, expenses, comprehensive income and accumulated other comprehensive loss that are reported in these unaudited consolidated financial statements and accompanying disclosures. The Company evaluates its estimates on an ongoing basis using historical experience and other factors, including the current economic environment. Significant judgment is required in determining the reserves for and fair value of items such as overall fair value assessments of assets and liabilities, particularly those classified as Level 2 or Level 3 in the fair value hierarchy, marketable securities, inventory, intangible assets associated with business combinations, share-based compensation, loss contingencies, and income taxes. In addition, significant judgment is required in determining whether a potential indicator of impairment of long-lived assets exists and in estimating future cash flows for any necessary impairment testing. Actual results could differ significantly from these estimates.

The Company’s fiscal year ends on the Friday closest to September 30. Fiscal 2019 consists of 52 weeks and ends on September 27, 2019. Fiscal 2018 consisted of 52 weeks and ended on September 28, 2018. The third quarters of fiscal 2019 and 2018 each consisted of 13 weeks and ended on June 28, 2019, and June 29, 2018, respectively.

Recently Adopted Accounting Pronouncements
In August 2015, the Financial Accounting Standards Board (“FASB”) deferred the effective date of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted ASU 2014-09 at the beginning of the first quarter of fiscal 2019 using the modified retrospective approach, with the cumulative effect of applying the new guidance recognized as an adjustment to the opening retained earnings balance. The Company has determined the impact of the new revenue standard on its business processes, systems, controls and consolidated financial statements is not material. Refer to Note 2, Revenue Recognition, for additional information.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-entity Transfers of an Asset Other than Inventory (“ASU 2016-16”). This ASU provides guidance that changes the accounting for income tax effects of intra-entity transfers of assets other than inventory. Under the new guidance, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The Company adopted ASU 2016-16 during the first quarter of fiscal 2019. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.
In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 320), (“ASU 2016-13”). This ASU requires a financial asset (or a group of financial assets) measured on the basis of amortized cost to be presented at the net amount expected to be collected. This ASU requires that the income statement reflect the measurement of credit losses for newly recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This ASU requires that credit losses of debt securities designated as available-for-sale be recorded through an allowance for credit losses. The ASU also limits the credit loss to the amount by which fair value is below

8

Table of Contents

amortized cost. The Company adopted ASU 2016-13 during the first quarter of fiscal 2019. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 320), (“ASU 2016-01”). This ASU provides guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. The Company adopted ASU 2016-01 during the first quarter of fiscal 2019. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.
In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-based Payments (“ASU 2018-07”). This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted ASU 2018-07 during the second quarter of fiscal 2019. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Topic 350), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). The new guidance clarifies the accounting for implementation costs in cloud computing arrangements. The Company adopted ASU 2018-15, on a prospective basis, during the second quarter of fiscal 2019. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). This ASU requires lessees to reflect leases with a term greater than one year on their balance sheet as assets and obligations. The Company plans to adopt the new guidance in the first quarter of fiscal 2020. The Company will utilize the modified retrospective method and will recognize any cumulative effect adjustment in retained earnings at the beginning of the period of adoption. The Company plans to elect the package of three practical expedients that permits the Company to maintain its historical conclusions about lease identification, lease classification and initial direct costs for leases that exist at the date of adoption. Further, upon implementation of the new guidance, the Company intends to elect the practical expedient to not separate lease and non-lease components. The Company has performed an assessment of the impact that the adoption of ASU 2016-02 will have on the consolidated financial statements and related disclosures. Based on that assessment, the Company has estimated that the adoption of ASU 2016-02 will result in the recognition of approximately $150 million to $170 million of right-of-use assets and lease liabilities based on the present value of future minimum lease payments for currently executed leases. The Company does not expect the adoption of this new guidance to have a significant impact on its Consolidated Statements of Operations or its Consolidated Statements of Cash Flows.

Supplemental Cash Flow Information
At June 28, 2019, the Company had $13.9 million accrued to other long-term liabilities for capital equipment, and $80.6 million accrued to accounts payable for capital equipment. At September 28, 2018, the Company had $13.9 million accrued to other long-term liabilities for capital equipment, and $94.1 million accrued to accounts payable for capital equipment. These amounts accrued at June 28, 2019, for capital equipment purchases have been excluded from the consolidated statements of cash flows for the nine months ended June 28, 2019, and are expected to be paid in subsequent periods.

2.    REVENUE RECOGNITION

Change in Accounting Policy
The Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), in the first quarter of fiscal 2019 for open contracts not completed as of the adoption date using the modified retrospective approach. The impact from the cumulative effect adjustment was not material and comparative information for prior periods has not been adjusted. The impact of applying the new standard on the Company’s consolidated financial statements for the nine months ended June 28, 2019, was not material, except for an increase in accounts receivable and other current liabilities in the amount of $29.4 million to reflect customer credits as a liability.

Revenue Recognition Policy
The Company derives its revenue primarily from the sale of semiconductor products under individual customer purchase orders, some of which have underlying master sales agreements that specify terms governing the product sales. In the absence of a sales agreement, the Company’s standard terms and conditions apply. Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company applies a five-step approach as defined in the new standard in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction

9

Table of Contents

price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied.

Performance Obligations
Each distinct promise to transfer products is considered to be an identified performance obligation for which revenue is recognized at a point in time upon transfer of control of the products to the customer. Transfer of control occurs upon shipment to the distributor or direct customer or when products are pulled from consignment inventory by the customer. Point in time recognition is determined as products manufactured under non-cancellable orders create an asset with an alternative use to the Company. Returns under the Company’s general assurance warranty of products have not been material and warranty-related services are not considered a separate performance obligation. As of June 28, 2019, the amount of remaining performance obligation that has not been recognized as revenue is not material.

Transaction Price
Pricing adjustments and estimates of returns are treated as variable consideration for purposes of determining the transaction price. Sales returns are generally accepted at the Company’s discretion or from distributors with stock rotation rights. Stock rotation allows distributors limited levels of returns and is based on the distributor’s prior purchases. Price protection represents price discounts granted to certain distributors and is based on negotiations on sales to end customers. Variable consideration is estimated using the expected value method considering all reasonably available information, including the Company’s historical experience and its current expectations, and is reflected in the transaction price when sales are recorded. The Company records net revenue excluding taxes collected on its sales to trade customers.

Contract Balances
Accounts receivable represents the Company’s unconditional right to receive consideration from its customer. Payments are due within one year of invoicing and do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. There were no material contract assets or contract liabilities recorded on the consolidated balance sheet in any of the periods presented. All incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration.

Disaggregate Revenue
The Company has a single reportable operating segment which designs, develops, manufactures and markets similar proprietary semiconductor products, including intellectual property. In reaching this conclusion, management considers the definition of the chief operating decision maker (“CODM”), how the business is defined by the CODM, the nature of the information provided to the CODM and how that information is used to make operating decisions, allocate resources and assess performance. The Company’s CODM is the president and chief executive officer. The results of operations provided to and analyzed by the CODM are at the consolidated level, and accordingly, key resource decisions and assessment of performance are performed at the consolidated level. The Company assesses its determination of operating segments at least annually.

The Company disaggregates revenue from contracts with customers by geography as it believes that doing so best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Net revenue by geographic area is presented based upon the location of the original equipment manufacturers’ (“OEMs”) headquarters and is as follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
June 28,
2019
 
June 29,
2018
 
June 28,
2019
 
June 29,
2018
United States
$
355.7

 
$
390.2

 
$
1,358.9

 
$
1,436.9

China
212.9

 
272.6

 
606.8

 
714.3

South Korea
76.9

 
94.2

 
282.0

 
331.0

Taiwan
78.0

 
90.9

 
182.8

 
252.5

Europe, Middle East and Africa
36.4

 
40.7

 
100.2

 
108.0

Other Asia-Pacific
7.0

 
5.7

 
18.7

 
16.9

Total
$
767.0

 
$
894.3

 
$
2,549.4

 
$
2,859.6


The Company’s revenue from external customers is generated principally from the sale of semiconductor products that facilitate various wireless communication applications. Accordingly, the Company considers its product offerings to be similar in nature and therefore not segregated for reporting purposes.


10

Table of Contents

3.    MARKETABLE SECURITIES

The Company's portfolio of available-for-sale marketable securities consists of the following (in millions):
    
 
Current
 
Noncurrent
Available for sale:
June 28, 2019
 
September 28,
2018
 
June 28, 2019
 
September 28,
2018
U.S. Treasury and government
$
44.4

 
$
65.0

 
$
10.0

 
$

Corporate bonds and notes
83.9

 
204.1

 
10.5

 
12.0

Municipal bonds
62.6

 
2.0

 
14.6

 
0.8

Other government
1.3

 
23.0

 

 
10.0

Total
$
192.2

 
$
294.1

 
$
35.1

 
$
22.8



The contractual maturities of noncurrent available-for-sale marketable securities were due within two years or less. There were unrealized gains of $0.1 million on U.S. Treasury securities, $0.1 million on corporate bonds and notes, and $0.1 million on municipal bonds at June 28, 2019, and $0.1 million in unrealized losses on municipal bonds at September 28, 2018.


4.    FAIR VALUE

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
The Company groups its financial assets and liabilities measured at fair value on a recurring basis in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data.
Level 3 - Fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including assumptions and judgments made by the Company.

Assets and liabilities recorded at fair value on a recurring basis consisted of the following (in millions):         
 
As of June 28, 2019
 
As of September 28, 2018
 
 
 
Fair Value Measurements
 
 
 
Fair Value Measurements
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents*
$
742.8

 
$
696.4

 
$
46.4

 
$

 
$
733.3

 
$
683.7

 
$
49.6

 
$

U.S. Treasury and government securities
54.4

 
20.3

 
34.1

 

 
65.0

 
15.0

 
50.0

 

Corporate bonds and notes
94.4

 

 
94.4

 

 
216.0

 

 
216.0

 

Municipal bonds
77.2

 

 
77.2

 

 
2.8

 

 
2.8

 

Other government securities
1.3

 

 
1.3

 

 
33.1

 

 
33.1

 

Total
$
970.1

 
$
716.7

 
$
253.4

 
$

 
$
1,050.2

 
$
698.7

 
$
351.5

 
$

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
$

 
$

 
$

 
$

 
$
3.1

 
$

 
$

 
$
3.1

Total
$

 
$

 
$

 
$

 
$
3.1

 
$

 
$

 
$
3.1


* Cash equivalents included in level 1 and 2 consist of money market funds and corporate bonds and notes, foreign government bonds, commercial paper, and agency securities purchased with less than ninety days until maturity.

The following table summarizes changes to the fair value of the Level 3 liabilities during the three and nine months ended June 28, 2019 (in millions):

11

Table of Contents

 
Contingent consideration
Balance as of September 28, 2018
$
3.1

Decreases to contingent consideration included in earnings
(3.1
)
Balance as of June 28, 2019
$



Assets Measured and Recorded at Fair Value on a Nonrecurring Basis
The Company’s non-financial assets and liabilities, such as goodwill, intangible assets, and other long-lived assets resulting from business combinations, are measured at fair value using income approach valuation methodologies at the date of acquisition and are subsequently re-measured if there are indicators of impairment. There were no indicators of impairment identified during the three and nine months ended June 28, 2019.

5.     INVENTORY

Inventory consists of the following (in millions):
 
As of
 
June 28,
2019
 
September 28,
2018
Raw materials
$
20.3

 
$
20.2

Work-in-process
349.2

 
340.7

Finished goods
208.3

 
124.8

Finished goods held on consignment by customers
3.0

 
4.5

Total inventory
$
580.8

 
$
490.2



6.     PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consists of the following (in millions):
 
As of
 
June 28,
2019
 
September 28,
2018
Land and improvements
$
11.7

 
$
11.6

Buildings and improvements
349.6

 
238.0

Furniture and fixtures
32.4

 
31.5

Machinery and equipment
2,282.9

 
2,089.6

Construction in progress
185.9

 
179.0

Total property, plant and equipment, gross
2,862.5

 
2,549.7

Accumulated depreciation
(1,632.4
)
 
(1,408.8
)
Total property, plant and equipment, net
$
1,230.1

 
$
1,140.9



7.     GOODWILL AND INTANGIBLE ASSETS

There were no changes to the carrying amount of goodwill during the three and nine months ended June 28, 2019.

The Company tests its goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if certain events occur indicating the carrying value of goodwill may be impaired. There were no indicators of impairment noted during the three and nine months ended June 28, 2019.


12

Table of Contents

Intangible assets consist of the following (in millions):
 
 
As of
 
As of
 

Weighted
Average
Amortization
Period (Years)
June 28, 2019
 
September 28, 2018
 
 
 
Gross
Carrying
Amount
 

Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying Amount
 

Accumulated
Amortization
 
Net
Carrying
Amount
Customer relationships
3.4
$
31.7

 
$
(23.8
)
 
$
7.9

 
$
31.7

 
$
(13.2
)
 
$
18.5

Developed technology and other
4.1
100.0

 
(46.4
)
 
53.6

 
89.9

 
(23.5