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 |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
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(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
per share |
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Emerging growth company | ||||
Smaller reporting company |
Page No. |
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PART I. FINANCIAL INFORMATION |
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Item 1. |
Financial Statements (Unaudited): |
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1 |
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2 |
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3 |
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4 |
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5 |
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6 |
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Item 2. |
26 |
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Item 3. |
33 |
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Item 4. |
34 |
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PART II. OTHER INFORMATION |
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Item 1. |
34 |
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Item 1A. |
35 |
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Item 2. |
35 |
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Item 4. |
35 |
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Item 6. |
36 |
Item 1: |
Financial Statements |
April 3, 2022 |
December 31, 2021 |
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(in thousands, except per share amount) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Marketable securities |
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Accounts receivable, less allowance for credit losses of $ |
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Inventories, net |
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Prepayments |
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Other current assets |
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Total current assets |
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Property, plant and equipment, net |
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Operating lease right-of-use |
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Marketable securities |
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Deferred tax assets |
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Retirement plans assets |
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Other assets |
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Acquired intangible assets, net |
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Goodwill |
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Total assets |
$ | $ | ||||||
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LIABILITIES |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Accrued employees’ compensation and withholdings |
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Deferred revenue and customer advances |
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Other accrued liabilities |
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Operating lease liabilities |
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Income taxes payable |
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Current debt |
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Total current liabilities |
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Retirement plans liabilities |
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Long-term deferred revenue and customer advances |
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Long-term other accrued liabilities |
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Deferred tax liabilities |
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Long-term operating lease liabilities |
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Long-term incomes taxes payable |
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Debt |
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Total liabilities |
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Commitments and contingencies ( N ote Q ) |
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Mezzanine equity: |
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Convertible common shares |
— | |||||||
SHAREHOLDERS’ EQUITY |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated other comprehensive loss |
( |
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Retained earnings |
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Total shareholders’ equity |
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Total liabilities, convertible common shares and shareholders’ equity |
$ | $ | ||||||
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For the Three Months Ended |
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April 3, 2022 |
April 4, 2021 |
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(in thousands, except per share amount) |
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Revenues: |
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Products |
$ | $ | ||||||
Services |
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Total revenues |
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Cost of revenues: |
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Cost of products |
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Cost of services |
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Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) |
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Gross profit |
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Operating expenses: |
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Selling and administrative |
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Engineering and development |
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Acquired intangible assets amortization |
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Restructuring and other |
( |
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Total operating expenses |
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Income from operations |
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Non-operating (income) expense: |
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Interest income |
( |
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) | ||||
Interest expense |
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Other (income) expense, net |
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Income before income taxes |
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Income tax provision |
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Net income |
$ | $ | ||||||
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Net income per common share: |
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Basic |
$ | $ | ||||||
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Diluted |
$ | $ | ||||||
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Weighted average common shares—basic |
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Weighted average common shares—diluted |
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For the Three Months Ended |
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April 3, 2022 |
April 4, 2021 |
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(in thousands) |
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Net income |
$ | $ |
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Other comprehensive income, net of tax: |
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Foreign currency translation adjustment, net of tax of $ |
( |
) | ( |
) | ||||
Available-for-sale |
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Unrealized losses on marketable securities arising during period, net of tax of $( |
( |
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) | ||||
Less: Reclassification adjustment for gains included in net income, net of tax of $( |
( |
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) | ||||
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( |
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Defined benefit post-retirement plan: |
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Amortization of prior service credit, net of tax of $ |
( |
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) | ||||
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Other comprehensive loss |
( |
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Comprehensive income |
$ |
$ |
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Shareholders’ Equity |
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Convertible Common Shares Value |
Common Stock Shares |
Common Stock Par Value |
Additional Paid-in Capital |
Accumulated Other Comprehensive (Loss) Income |
Retained Earnings |
Total Shareholders’ Equity |
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(in thousands) |
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For the Three Months Ended April 3, 2022 |
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Balance, December 31, 2021 |
$ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||
Net issuance of common stock under stock-based plans |
( |
) | ( |
) | ||||||||||||||||||||||||
Stock-based compensation expense |
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Repurchase of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Cash dividends ($ |
( |
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Settlements of convertible notes |
( |
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Exercise of convertible notes hedge call options |
( |
) | ( |
) | — | |||||||||||||||||||||||
Cumulative-effect of change in accounting principle related to convertible debt |
( |
) | ( |
) | ( |
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Net income |
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Other comprehensive loss |
( |
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Balance, April 3, 2022 |
$ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||
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For the Three Months Ended April 4, 2021 |
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Balance, December 31, 2020 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Net issuance of common stock under stock-based plans |
( |
) | ( |
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Stock-based compensation expense |
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Repurchase of common stock |
( |
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) | ( |
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Cash dividends ($ |
( |
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Settlements of convertible notes |
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Exercise of convertible notes hedge call options |
( |
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) | ( |
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Convertible common shares |
( |
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Net income |
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Other comprehensive loss |
( |
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Balance, April 4, 2021 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
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For the Three Months Ended |
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April 3, 2022 |
April 4, 2021 |
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(in thousands) |
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Cash flows from operating activities: |
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Net income |
$ | $ | ||||||
Adjustments to reconcile net income from operations to net cash provided by operating activities: |
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Depreciation |
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Stock-based compensation |
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Amortization |
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Deferred taxes |
( |
) | ||||||
Losses (gains) on investments |
( |
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Provision for excess and obsolete inventory |
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Loss on convertible debt conversion s |
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Contingent consideration fair value adjustment s |
( |
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Other |
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Changes in operating assets and liabilities |
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Accounts receivable |
( |
) | ||||||
Inventories |
( |
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Prepayments and other assets |
( |
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Accounts payable and other accrued expenses |
( |
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Deferred revenue and customer advances |
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Retirement plan contributions |
( |
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Income taxes |
( |
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Net cash provided by operating activities |
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Cash flows from investing activities: |
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Purchases of property, plant and equipment |
( |
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Purchases of marketable securities |
( |
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Proceeds from maturities of marketable securities |
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Proceeds from sales of marketable securities |
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Net cash (used for) provided by investing activities |
( |
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Cash flows from financing activities: |
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Issuance of common stock under stock purchase and stock option plans |
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Repurchase of common stock |
( |
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Payments related to net settlement of employee stock compensation awards |
( |
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Payments of convertible debt principal |
( |
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Dividend payments |
( |
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Net cash used for financing activities |
( |
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Effects of exchange rate changes on cash and cash equivalents |
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Decrease in cash and cash equivalents |
( |
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Cash and cash equivalents at beginning of period |
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Cash and cash equivalents at end of period |
$ | $ | ||||||
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Non-cash investing activities: |
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Capital expenditures incurred but not yet paid: |
$ | $ |
• | semiconductor test (“Semiconductor Test”) systems; |
• | storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); |
• | wireless test (“Wireless Test”) systems; and |
• | industrial automation (“Industrial Automation”) products. |
Semiconductor Test |
Industrial Automation |
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System on-a- Chip |
Memory |
System Test |
Universal Robots |
Mobile Industrial Robots |
AutoGuide |
Wireless Test |
Corporate and Eliminations |
Total |
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(in thousands) |
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For the Three Months Ended April 3, 2022 (1) |
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Timing of Revenue Recognition |
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Point in Time |
$ | $ | $ | $ | $ | $ | $ | $ | ( |
) | $ | |||||||||||||||||||||||||
Over Time |
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Total |
$ | $ | $ | $ | $ | $ | $ | $ | ( |
) | $ | |||||||||||||||||||||||||
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Geographical Market |
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Asia Pacific |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Americas |
( |
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Europe, Middle East and Africa |
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Total |
$ | $ | $ | $ | $ | $ | $ | $ | ( |
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For the Three Months Ended April 4, 2021 (1) |
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Timing of Revenue Recognition |
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Point in Time |
$ | $ | $ | $ | $ | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||||||||
Over Time |
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Total |
$ | $ | $ | $ | $ | $ | $ | $ | ( |
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Geographical Market |
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Asia Pacific |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Americas |
( |
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Europe, Middle East and Africa |
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Total |
$ | $ | $ | $ | $ | $ | $ | $ | ( |
) | $ | |||||||||||||||||||||||||
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(1) | Includes $ “Revenue from Contracts with Customers.” |
April 3, 2022 |
December 31, 2021 |
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(in thousands) |
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Maintenance, service and training |
$ |
$ |
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Customer advances, undelivered elements and other |
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Extended warranty |
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Total deferred revenue and customer advances |
$ |
$ |
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April 3, 2022 |
December 31, 2021 |
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(in thousands) |
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Raw material |
$ | $ | ||||||
Work-in-process |
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Finished goods |
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$ | $ | |||||||
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April 3, 2022 |
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Quoted Prices in Active Markets for Identical Instruments (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total |
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(in thousands) |
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Assets |
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Cash |
$ | $ | $ | $ | ||||||||||||
Cash equivalents |
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Available-for-sale |
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Commercial paper |
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U.S. Treasury securities |
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Corporate debt securities |
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Debt mutual funds |
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U.S. government agency securities |
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Certificates of deposit and time deposits |
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Non-U.S. government securities |
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Equity securities: |
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Mutual funds |
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$ | $ | $ | $ | |||||||||||||
Derivative assets |
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Total |
$ | $ | $ | $ | ||||||||||||
Liabilities |
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Derivative liabilities |
$ | $ | $ | $ | ||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
Reported as follows: |
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(Level 1) |
(Level 2) |
(Level 3) |
Total |
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(in thousands) |
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Assets |
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Cash and cash equivalents |
$ | $ | $ | $ | ||||||||||||
Marketable securities |
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Long-term marketable securities |
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Prepayments |
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Total |
$ | $ | $ | $ | ||||||||||||
Liabilities |
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Other current liabilities |
$ | $ | $ | $ | ||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||