(Mark
one)
|
|
R
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarterly period ended March 28, 2009
|
|
or
|
|
£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the transition period
from
to
|
Delaware
|
20-4623678
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
Large
accelerated filer R
|
Accelerated
filer £
|
Non-accelerated
filer £
|
Smaller
reporting company £
|
(Do
not check if a smaller reporting company)
|
Page
|
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3
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4
|
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5
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6
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19
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26
|
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27
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28
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28
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28
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29
|
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30
|
||
31
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Three
Months Ended
|
||||||||
March
28,
2009
|
March
29,
2008
|
|||||||
Net
sales
|
$ | 418,208 | $ | 196,915 | ||||
Cost
of sales
|
182,924 | 92,591 | ||||||
Gross
profit
|
235,284 | 104,324 | ||||||
Operating
expenses:
|
||||||||
Research
and development
|
11,704 | 4,760 | ||||||
Selling,
general and administrative
|
49,315 | 28,671 | ||||||
Production
start-up
|
6,209 | 12,761 | ||||||
Total
operating expenses
|
67,228 | 46,192 | ||||||
Operating
income
|
168,056 | 58,132 | ||||||
Foreign
currency gain
|
1,834 | 774 | ||||||
Interest
income
|
2,103 | 6,685 | ||||||
Interest
expense, net
|
(935 | ) | (4 | ) | ||||
Other
expense, net
|
(1,326 | ) | (378 | ) | ||||
Income
before income taxes
|
169,732 | 65,209 | ||||||
Income
tax expense
|
5,137 | 18,590 | ||||||
Net
income
|
$ | 164,595 | $ | 46,619 | ||||
Net
income per share:
|
||||||||
Basic
|
$ | 2.01 | $ | 0.59 | ||||
Diluted
|
$ | 1.99 | $ | 0.57 | ||||
Weighted-average
number of shares used in per share calculations:
|
||||||||
Basic
|
81,685 | 79,059 | ||||||
Diluted
|
82,612 | 81,607 |
March 28,
2009
|
December 27,
2008
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 624,932 | $ | 716,218 | ||||
Marketable
securities — current
|
172,176 | 76,042 | ||||||
Accounts
receivable, net
|
184,790 | 61,703 | ||||||
Inventories
|
131,468 | 121,554 | ||||||
Deferred
project costs
|
12,259 | 710 | ||||||
Economic
development funding receivable
|
— | 668 | ||||||
Deferred
tax asset, net — current
|
11,658 | 9,922 | ||||||
Prepaid
expenses and other current assets
|
102,421 | 90,584 | ||||||
Total
current assets
|
1,239,704 | 1,077,401 | ||||||
Property,
plant and equipment, net
|
867,660 | 842,622 | ||||||
Deferred
tax asset, net — noncurrent
|
61,987 | 61,325 | ||||||
Marketable
securities — noncurrent
|
14,460 | 29,559 | ||||||
Restricted
cash and investments
|
30,148 | 30,059 | ||||||
Investment
in related party
|
25,000 | 25,000 | ||||||
Goodwill
|
33,829 | 33,829 | ||||||
Other
assets — noncurrent
|
15,644 | 14,707 | ||||||
Total
assets
|
$ | 2,288,432 | $ | 2,114,502 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 41,853 | $ | 46,251 | ||||
Income
tax payable
|
102,242 | 99,938 | ||||||
Accrued
expenses
|
86,250 | 140,899 | ||||||
Current
portion of long-term debt
|
32,952 | 34,951 | ||||||
Other
current liabilities
|
52,542 | 59,738 | ||||||
Total
current liabilities
|
315,839 | 381,777 | ||||||
Accrued
collection and recycling liabilities
|
45,366 | 35,238 | ||||||
Long-term
debt
|
195,216 | 163,519 | ||||||
Other
liabilities — noncurrent
|
26,339 | 20,926 | ||||||
Total
liabilities
|
582,760 | 601,460 | ||||||
Stockholders’
equity:
|
||||||||
Common
stock, $0.001 par value per share; 500,000,000 shares
authorized; 81,844,290 and 81,596,810 shares issued and outstanding
at March 28, 2009 and December 27, 2008, respectively
|
82 | 82 | ||||||
Additional
paid-in capital
|
1,194,324 | 1,176,156 | ||||||
Accumulated
earnings
|
525,820 | 361,225 | ||||||
Accumulated
other comprehensive loss
|
(14,554 | ) | (24,421 | ) | ||||
Total
stockholders’ equity
|
1,705,672 | 1,513,042 | ||||||
Total
liabilities and stockholders’ equity
|
$ | 2,288,432 | $ | 2,114,502 |
Three
Months Ended
|
||||||||
March
28,
2009
|
March
29,
2008
|
|||||||
Cash
flows from operating activities:
|
||||||||
Cash
received from customers
|
$ | 325,712 | $ | 194,595 | ||||
Cash
paid to suppliers and associates
|
(259,726 | ) | (137,779 | ) | ||||
Interest
received
|
2,885 | 6,156 | ||||||
Interest
paid, net of amounts capitalized
|
(2,208 | ) | (4 | ) | ||||
Income
taxes paid, net of refunds
|
658 | 4,905 | ||||||
Excess
tax benefit from share-based compensation arrangements
|
(3,254 | ) | (4,255 | ) | ||||
Other
|
(326 | ) | (348 | ) | ||||
Net
cash provided by operating activities
|
63,741 | 63,270 | ||||||
Cash
flows from investing activities:
|
||||||||
Purchases
of property, plant and equipment
|
(86,404 | ) | (74,606 | ) | ||||
Purchases
of marketable securities
|
(117,554 | ) | (57,796 | ) | ||||
Proceeds
from maturities of marketable securities
|
7,000 | 11,250 | ||||||
Proceeds
from sales of marketable securities
|
29,787 | 223,902 | ||||||
Investment
in note receivable
|
(13,750 | ) | — | |||||
Increase
in restricted investments
|
(313 | ) | (12,091 | ) | ||||
Net
cash provided by (used in) investing activities
|
(181,234 | ) | 90,659 | |||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from issuance of common stock
|
1,440 | 5,935 | ||||||
Repayment
of long-term debt
|
(3,858 | ) | (25,740 | ) | ||||
Proceeds
from issuance of debt, net of issuance costs
|
45,267 | 57 | ||||||
Excess
tax benefit from share-based compensation arrangements
|
3,254 | 4,255 | ||||||
Proceeds
from economic development funding
|
615 | 35,661 | ||||||
Other
financing activities
|
(1 | ) | (2 | ) | ||||
Net
cash provided by financing activities
|
46,717 | 20,166 | ||||||
Effect
of exchange rate changes on cash and cash equivalents
|
(20,510 | ) | 12,175 | |||||
Net
increase (decrease) in cash and cash equivalents
|
(91,286 | ) | 186,270 | |||||
Cash
and cash equivalents, beginning of the period
|
716,218 | 404,264 | ||||||
Cash
and cash equivalents, end of the period
|
$ | 624,932 | $ | 590,534 | ||||
Supplemental
disclosure of noncash investing and financing activities:
|
||||||||
Property,
plant and equipment acquisitions funded by liabilities
|
$ | (30,687 | ) | $ | 26,500 |
As
of March 28, 2009
(Unaudited)
|
As
of December 27, 2008
|
||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Value
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Value
|
||||||||||||||
Customer
contracts in progress at the acquisition date
|
$ | 62 | $ | 62 | $ | — | $ | 62 | $ | 58 | $ | 4 | |||||||
Customer
contracts executed after the acquisition date
|
394 | 303 | 91 | 394 | 242 | 152 | |||||||||||||
Total
|
$ | 456 | $ | 365 | $ | 91 | $ | 456 | $ | 300 | $ | 156 |
March
28,
2009
|
December 27,
2008
|
||||||
Cash
and cash equivalents:
|
|||||||
Cash
|
$ | 539,642 | $ | 603,434 | |||
Cash
equivalents:
|
|||||||
Federal
agency debt
|
14,998 | 38,832 | |||||
Money
market mutual fund
|
70,292 | 73,952 | |||||
Total cash and cash equivalents
|
624,932 | 716,218 | |||||
Marketable
securities:
|
|||||||
Federal
agency debt
|
143,527 | 68,086 | |||||
Foreign
agency debt
|
— | 6,977 | |||||
Corporate
debt securities
|
43,109 | 30,538 | |||||
Total marketable securities
|
186,636 | 105,601 | |||||
Total
cash, cash equivalents and marketable securities
|
$ | 811,568 | $ | 821,819 |
As
of March 28, 2009
(Unaudited)
|
|||||||||||||
Security Type
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
|||||||||
Federal
agency debt
|
$ | 143,209 | $ | 318 | $ | — | $ | 143,527 | |||||
Corporate
debt securities
|
42,863 | 246 | — | 43,109 | |||||||||
Total
|
$ | 186,072 | $ | 564 | $ | — | $ | 186,636 |
As
of December 27, 2008
|
|||||||||||||
Security Type
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
|||||||||
Federal
agency debt
|
$ | 67,813 | $ | 273 | $ | — | $ | 68,086 | |||||
Foreign
agency debt
|
6,990 | — | 13 | 6,977 | |||||||||
Corporate
debt securities
|
30,425 | 129 | 16 | 30,538 | |||||||||
Total
|
$ | 105,228 | $ | 402 | $ | 29 | $ | 105,601 |
As
of March 28, 2009
(Unaudited)
|
|||||||||||||
Maturity
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
|||||||||
One
year or less
|
$ | 171,816 | $ | 360 | $ | — | $ | 172,176 | |||||
One
year to two years
|
14,256 | 204 | — | 14,460 | |||||||||
Total
|
$ | 186,072 | $ | 564 | $ | — | $ | 186,636 |
As
of December 27, 2008
|
|||||||||||||
Maturity
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
|||||||||
One
year or less
|
$ | 75,856 | $ | 199 | $ | 13 | $ | 76,042 | |||||
One
year to two years
|
29,372 | 203 | 16 | 29,559 | |||||||||
Total
|
$ | 105,228 | $ | 402 | $ | 29 | $ | 105,601 |
March
28,
2009
|
December
27,
2008
|
||||||
Accounts
receivable, gross
|
$ | 184,790 | $ | 61,703 | |||
Allowance
for doubtful accounts
|
— | — | |||||
Accounts
receivable, net
|
$ | 184,790 | $ | 61,703 |
March
28,
2009
|
December
27,
2008
|
||||||
Raw
materials
|
$ | 104,763 | $ | 103,725 | |||
Work
in process
|
7,562 | 4,038 | |||||
Finished
goods
|
19,143 | 13,791 | |||||
Total
inventories
|
$ | 131,468 | $ | 121,554 |
March
28,
2009
|
December
27,
2008
|
||||||
Prepaid
expenses
|
$ | 6,193 | $ | 6,699 | |||
Prepaid
supplies
|
12,984 | 12,556 | |||||
Capitalized
equipment spares
|
14,204 | 12,900 | |||||
Prepaid
taxes — current
|
2,028 | 4 | |||||
Derivative
instruments — current
|
29,690 | 34,931 | |||||
Other
receivable from financial institution
|
9,232 | 10,764 | |||||
Note
receivable
|
13,750 | — | |||||
Costs
and estimated earnings in excess of billings
|
— | 114 | |||||
Other
current assets
|
14,340 | 12,616 | |||||
Total
prepaid expenses and other current assets
|
$ | 102,421 | $ | 90,584 |
March
28,
2009
|
December
27,
2008
|
||||||
Buildings
and improvements
|
$ | 177,791 | $ | 137,116 | |||
Machinery
and equipment
|
685,488 | 559,566 | |||||
Office
equipment and furniture
|
26,732 | 22,842 | |||||
Leasehold
improvements
|
14,555 | 11,498 | |||||
Depreciable
property, plant and equipment, gross
|
904,566 | 731,022 | |||||
Accumulated
depreciation
|
(125,285 | ) | (100,939 | ) | |||
Depreciable
property, plant and equipment, net
|
779,281 | 630,083 | |||||
Land
|
5,658 | 5,759 | |||||
Construction
in progress
|
82,721 | 206,780 | |||||
Property,
plant and equipment, net
|
$ | 867,660 | $ | 842,622 |
Three
Months Ended
|
|||||||
March
28,
2009
|
March
29,
2008
|
||||||
Interest
cost incurred
|
$ | 2,414 | $ | 1,509 | |||
Interest
cost capitalized
|
(1,479 | ) | (1,505 | ) | |||
Interest
expense, net
|
$ | 935 | $ | 4 |
March
28,
2009
|
December
27,
2008
|
||||||
Product
warranty liability — current portion
|
$ | 5,311 | $ | 4,040 | |||
Accrued
compensation and benefits
|
11,922 | 32,145 | |||||
Accrued
property, plant and equipment
|
22,099 | 44,115 | |||||
Accrued
inventory
|
19,621 | 31,438 | |||||
Accrued
utilities and plant services
|
6,827 | 5,100 | |||||
Accrued
subcontractor services and materials
|
582 | 2,934 | |||||
Accrued
taxes — other
|
1,406 | 6,182 | |||||
Other
accrued expenses
|
18,482 | 14,945 | |||||
Total
accrued expenses
|
$ | 86,250 | $ | 140,899 |
March
28,
2009
|
December
27,
2008
|
||||||
Derivative
instruments — current
|
$ | 18,438 | $ | 50,733 | |||
Deferred
revenue (1)
|
26,550 | — | |||||
Billings
in excess of costs and estimated earnings
|
2,919 | 2,159 | |||||
Other
current liabilities
|
4,635 | 6,846 | |||||
Total
other current liabilities
|
$ | 52,542 | $ | 59,738 |
(1)
|
Deferred
revenue relates to solar module shipments that have not met the revenue
recognition criteria at March 28, 2009 and are expected to be recognized
in the second fiscal quarter of
2009.
|
Asset
Derivatives
|
Liability
Derivatives
|
|||||||||
Balance Sheet
Location
|
Fair Value
|
Balance Sheet
Location
|
Fair Value
|
|||||||
Derivatives designated as hedging
instruments under SFAS 133:
|
||||||||||
Foreign exchange
forward contracts
|
Other current
assets
|
$ | 20,696 |
Other
liabilities - current
|
$ | 12,258 | ||||
Other non-current
assets
|
171 |
Other
liabilities - non current
|
278 | |||||||
Interest rate swap
contracts
|
— |
Other
liabilities - current
|
539 | |||||||
Other
liabilities - non current
|
1,616 | |||||||||
Total derivatives designated as
hedging instruments under SFAS 133
|
$ | 20,867 | $ | 14,691 | ||||||
Derivatives not designated as
hedging instruments under SFAS 133:
|
||||||||||
Foreign exchange
forward
contracts
|
Other current
assets
|
$ | 8,733 |
Other
liabilities - current
|
$ | 5,502 | ||||
Credit default
swaps
|
Other current
assets
|
261 | — | |||||||
Total derivatives not designated
as hedging instruments under SFAS 133
|
8,994 | 5,502 | ||||||||
Total derivative
instruments
|
$ | 29,861 | $ | 20,193 |
Amount of Gain (Loss) Recognized
in Other Comprehensive Income on Derivatives
|
Amount of Gain (Loss) Reclassified
from Accumulated Other Comprehensive Income into
Income
|
||||||||
Derivatives designated under SFAS
133
|
Three Months
Ended
March 28,
2009
|
Location of Gain (Loss)
Reclassified from Accumulated Other Comprehensive Income into
Income
|
Three Months
Ended
March 28,
2009
|
||||||
Derivatives designated as cash
flow hedges:
|
|||||||||
Foreign exchange
forward
contracts
|
$ | 23,876 |
Net sales
|
$ | 22,190 | ||||
Interest rate swaps
|
(777 | ) | — | ||||||
Total derivatives designated as cash flow
hedges
|
$ | 23,099 | $ | 22,190 |
Amount of Gain (Loss) on
Derivatives recognized in Income
|
|||||
Three Months
Ended
March 28,
2009
|
Location of Gain (Loss) Recognized
in Income on Derivatives
|
||||
Derivatives designated as cash
flow hedges under SFAS 133:
|
|||||
Foreign
exchange forward contracts
|
$ | 22,190 |
Net
sales
|
||
Interest
rate swaps
|
$ | (134 | ) |
Interest income
(expense)
|
|
Derivatives not designated as
hedging instruments under SFAS 133:
|
|||||
Foreign exchange
forward
contracts
|
$ | (4,889 | ) |
Other income
(expense)
|
|
Foreign exchange
forward
contracts
|
$ | (1,455 | ) |
Cost of
sales
|
|
Credit default
swaps
|
$ | (1,000 | ) |
Other income
(expense)
|
|
•
|
Level 1 —
Valuation techniques in which all significant inputs are unadjusted quoted
prices from active markets for assets or liabilities that are identical to
the assets or liabilities being
measured.
|
|
•
|
Level 2 —
Valuation techniques in which significant inputs include quoted prices
from active markets for assets or liabilities that are similar to the
assets or liabilities being measured and/or quoted prices for assets or
liabilities that are identical or similar to the assets or liabilities
being measured from markets that are not active. Also, model-derived
valuations in which all significant inputs and significant value drivers
are observable in active markets are Level 2 valuation
techniques.
|
|
•
|
Level 3 —
Valuation techniques in which one or more significant inputs or
significant value drivers are unobservable. Unobservable inputs are
valuation technique inputs that reflect our own assumptions about the
assumptions that market participants would use in pricing an asset or
liability.
|
|
•
|
Cash
Equivalents. At March 28, 2009, our cash equivalents
consisted of federal agency debt and money market mutual funds. We value
some of our cash equivalents using observable inputs that reflect quoted
prices for securities with identical characteristics, and accordingly, we
classify the valuation techniques that use these inputs as Level 1.
We also have cash equivalents which we value using other observable inputs
(such as interest rates that are observable at commonly quoted intervals)
and accordingly, we classify the valuation techniques that use these
inputs as Level 2. We consider the effect of our counterparties’
credit standings in our valuations of our marketable securities
holdings.
|
|
•
|
Marketable
securities. At March 28, 2009, our marketable securities
consisted of federal agency debt and corporate debt securities. We value
our marketable securities using quoted prices for securities with similar
characteristics and other observable inputs (such as interest rates that
are observable at commonly quoted intervals), and accordingly, we classify
the valuation techniques that use these inputs as Level 2. We also
consider the effect of our counterparties’ credit standings in these fair
value measurements.
|
|
•
|
Derivative assets and
liabilities. At March 28, 2009, our derivative assets
and liabilities consist of foreign exchange forward contracts involving
major currencies, interest rate swap contracts involving a benchmark
interest rate and credit default swaps. Since our derivative assets and
liabilities are not traded on an exchange, we value them using valuation
models. Interest rate yield curves, foreign exchange rates and credit
default swap spreads are the significant inputs into these valuation
models. These inputs are observable in active markets over the terms of
the instruments we hold, and accordingly, we classify these valuation
techniques as Level 2. We consider the effect of our own credit
standing and that of our counterparties in our valuations of our
derivative financial assets and
liabilities.
|
|
•
|
Product collection and
recycling liability. We account for our obligation to
collect and recycle the solar modules that we sell in a similar manner to
the accounting for asset retirement obligations that is prescribed by
SFAS 143, Accounting for Asset
Retirement Obligations. When we sell solar modules, we initially
record our liability for collecting and recycling those particular solar
modules at the fair value of this liability, and then in subsequent
periods, we accrete this fair value to the estimated future cost of
collecting and recycling the solar modules. Therefore, this is a one-time
nonrecurring fair value measurement of the collection and recycling
liability associated with each particular solar module
sold.
|
|
Since
there is not an established market for collecting and recycling our solar
modules, we value our liability using a valuation model (an income
approach). This fair value measurement requires us to use significant
unobservable inputs, which are primarily estimates of collection and
recycling process costs and estimates of future changes in costs due to
inflation and future currency exchange rates. Accordingly, we classify
these valuation techniques as Level 3. We estimate collection and
recycling process costs based on analyses of the collection and recycling
technologies that we are currently developing; we estimate future
inflation costs based on analysis of historical trends; and we estimate
future currency exchange rates based on current rate information. We
consider the effect of our own credit standing in our measurement of the
fair value of this liability.
|
Fair
Value Measurements at Reporting
Date
Using
|
|||||||||||||
Total
Fair
Value
and
Carrying
Value
on Our
Balance
Sheet
|
Quoted
Prices
in
Active
Markets
for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level
3)
|
||||||||||
Assets:
|
|||||||||||||
Cash
equivalents:
|
|||||||||||||
Federal
agency debt
|
$ | 14,998 | $ | — | $ | 14,998 | $ | — | |||||
Money
market mutual funds
|
70,292 | 70,292 | — | — | |||||||||
Marketable
securities:
|
|||||||||||||
Federal
agency debt
|
143,527 | — | 143,527 | — | |||||||||
Corporate
debt securities
|
43,109 | — | 43,109 | — | |||||||||
Derivative
assets
|
29,861 | — | 29,861 | — | |||||||||
Total
assets
|
$ | 301,787 | $ | 70,292 | $ | 231,495 | $ | — | |||||
Liabilities:
|
|||||||||||||
Derivative
liabilities
|
$ | 20,193 | $ | — | $ | 20,193 | $ | — |
March
28,
2009
|
December 27,
2008
|
||||||
Euro
denominated loan, variable interest Euribor plus 1.6%, due 2008 through
2012
|
$ | 48,993 | $ | 54,982 | |||
Euro
denominated loan, variable interest Euribor plus 0.55%, due 2008 through
2016
|
85,702 | 66,975 | |||||
Euro
denominated 4.54% loan, due 2008 through 2016
|
85,702 | 66,975 | |||||
2.25%
loan, due 2006 through 2015
|
11,133 | 11,694 | |||||
0.25% —
3.25% loan, due 2007 through 2009
|
1,250 | 1,528 | |||||
Capital
lease obligations
|
4 | 5 | |||||
232,784 | 202,159 | ||||||
Less
unamortized discount
|
(4,616 | ) | (3,689 | ) | |||
Total
long-term debt
|
228,168 | 198,470 | |||||
Less
current portion
|
32,952 | 34,951 | |||||
Noncurrent
portion
|
$ | 195,216 | $ | 163,519 |
Three
Months Ended
|
|||||||
March
28,
2009
|
March
29,
2008
|
||||||
Product
warranty liability, beginning of period
|
$ | 11,905 | $ | 7,276 | |||
Accruals
for new warranties issued (warranty expense)
|
3,091 | 1,992 | |||||
Settlements
|
(208 | ) | (8 | ) | |||
Change
in estimate of warranty liability
|
(1,231 | ) | 1 | ||||
Product
warranty liability, end of period
|
$ | 13,557 | $ | 9,261 | |||
Current
portion of warranty liability
|
$ | 5,311 | $ | 3,921 | |||
Non-current
portion of warranty liability
|
$ | 8,246 | $ | 5,340 |
Three
Months Ended
|
|||||||
March
28,
2009
|
March
29,
2008
|
||||||
Share-based
compensation expense included in:
Cost
of sales
|
$ | 3,019 | $ | 2,208 | |||
Research
and development
|
1,819 | 965 | |||||
Selling,
general and administrative
|
9,874 | 7,400 | |||||
Production
start-up
|
472 | 286 | |||||
Total
share-based compensation expense
|
$ | 15,184 | $ | 10,859 |
Three
Months Ended
|
|||||||
March
28,
2009
|
March
29,
2008
|
||||||
Stock
options
|
$ | 2,054 | $ | 5,060 | |||
Restricted
stock units
|
13,243 | 5,528 | |||||
Unrestricted
stock
|
113 | 81 | |||||
Net
amount absorbed into inventory
|
(226 | ) | 190 | ||||
Total
share-based compensation expense
|
$ | 15,184 | $ | 10,859 |
Three
Months Ended
|
|||||||
March
28,
2009
|
March
29,
2008
|
||||||
Basic
net income per share
|
|||||||
Numerator:
|
|||||||
Net
income
|
$ | 164,595 | $ | 46,619 | |||
Denominator:
|
|||||||
Weighted-average
shares used in computing basic net income per share
|
81,685 | 79,059 | |||||
Diluted
net income per share
|
|||||||
Denominator:
|
|||||||
Weighted-average
shares used in computing basic net income per share
|
81,685 | 79,059 | |||||
Effect
of stock options and restricted stock units outstanding
|
927 | 2,548 | |||||
Weighted-average
shares used in computing diluted net income per share
|
82,612 | 81,607 |
Three
Months Ended
|
|||||||
March
28,
2009
|
March
29,
2008
|
||||||
Restricted
stock units and options to purchase common stock
|
261 |
131
|
Three
Months Ended
|
|||||||
March
28,
2009
|
March
29,
2008
|
||||||
Net
income
|
$ | 164,595 | $ | 46,619 | |||
Foreign
currency translation adjustments
|
(13,886 | ) | 9,442 | ||||
Change
in unrealized gain on marketable securities, net of tax of $(59) for
2009
|
103 | 288 | |||||
Change
in unrealized gain (loss) on derivative instruments, net of tax of $550
for 2009
|
23,650 | (23,298 | ) | ||||
Comprehensive
income
|
$ | 174,462 | $ | 33,051 |
March
28,
2009
|
December
27,
2008
|
||||||
Foreign
currency translation adjustments
|
$ | (21,711 | ) | $ | (7,825 | ) | |
Unrealized
gain on marketable securities, net of tax of $203 for 2009 and $(144) for
2008
|
365 | 262 | |||||
Unrealized
gain (loss) on derivative instruments, net of tax of $(615) for 2009 and
$65 for 2008
|
6,792 | (16,858 | ) | ||||
Accumulated
other comprehensive loss
|
$ | (14,554 | ) | $ | (24,421 | ) |
Three
Months Ended
|
|||||||
March
28,
2009
|
March
29,
2008
|
||||||
Net
income
|
$ | 164,595 | $ | 46,619 | |||
Adjustments
to reconcile net income to cash provided by (used in) operating
activities:
|
|||||||
Depreciation
and amortization
|
26,085 | 9,064 | |||||
Share-based
compensation
|
15,184 | 10,859 | |||||
Remeasurement
of debt
|
(255 | ) | — | ||||
Deferred
income taxes
|
(1,874 | ) | 1,027 | ||||
Excess
tax benefits from share-based compensation arrangements
|
(3,254 | ) | (4,255 | ) | |||
Loss
on disposal of property and equipment
|
294 | 30 | |||||
Provision
for doubtful accounts receivable
|
— | 669 | |||||
Provision
for excess and obsolete inventories
|
2,165 | 82 | |||||
Gain
on sales of investments, net
|
(7 | ) | (280 | ) | |||
Changes
in operating assets and liabilities:
|
|||||||
Accounts
receivable
|
(93,204 | ) | (3,000 | ) | |||
Inventories
|
(12,649 | ) | (17,254 | ) | |||
Deferred
project costs
|
(11,370 | ) | 1,424 | ||||
Prepaid
expenses and other current assets
|
(6,723 | ) | (2,031 | ) | |||
Costs
and estimated earnings in excess of billings
|
114 | 6 | |||||
Other
noncurrent assets
|
(1,888 | ) | (1,761 | ) | |||
Billings
in excess of costs and estimated earnings
|
951 | (909 | ) | ||||
Accounts
payable and accrued expenses
|
(14,423 | ) | 22,980 | ||||
Total
adjustments
|
(100,854 | ) | 16,651 | ||||
Net
cash provided by operating activities
|
$ | 63,741 | $ | 63,270 |
Three
Months Ended
|
Three
Months Ended
|
||||||||||||||||||
March
28, 2009
|
March
29, 2008
|
||||||||||||||||||
Components
|
Other
|
Total
|
Components
|
Other
|
Total
|
||||||||||||||
Net
sales
|
$ | 413,062 | $ | 5,146 | $ | 418,208 | $ | 193,862 | $ | 3,053 | $ | 196,915 | |||||||
Income
(loss) before income taxes
|
$ | 173,124 | $ | (3,392 | ) | $ | 169,732 | $ | 68,116 | $ | (2,907 | ) | $ | 65,209 | |||||
Goodwill
|
$ | — | $ | 33,829 | $ | 33,829 | $ | — | $ | 33,829 | $ | 33,829 | |||||||
Assets
|
$ | 2,240,394 | $ | 48,038 | $ | 2,288,432 | $ | 1,427,316 | $ | 49,843 | $ | 1,477,159 |
Three
Months Ended
|
||||||||
March
28,
2009
|
March
29,
2008
|
|||||||
Net
sales
|
100.0 | % | 100.0 | % | ||||
Cost
of sales
|
43.7 | % | 47.0 | % | ||||
Gross
profit
|
56.3 | % | 53.0 | % | ||||
Research
and development
|
2.8 | % | 2.4 | % | ||||
Selling,
general and administrative
|
11.8 | % | 14.6 | % | ||||
Production
start-up
|
1.5 | % | 6.5 | % | ||||
Operating
income
|
40.2 | % | 29.5 | % | ||||
Foreign
currency gain
|
0.4 | % | 0.4 | % | ||||
Interest
income
|
0.5 | % | 3.4 | % | ||||
Interest
expense, net
|
(0.2) | % | 0.0 | % | ||||
Other
expense, net
|
(0.3) | % | (0.2) | % | ||||
Income
tax expense
|
1.2 | % | 9.4 | % | ||||
Net
income
|
39.4 | % | 23.7 | % |
Three
Months Ended
|
|||||||||||||
(Dollars
in thousands)
|
March
28, 2009
|
March
29, 2008
|
Three
Month Period Change
|
||||||||||
Net
sales
|
$ | 418,208 | $ | 196,915 | $ | 221,293 | 112 | % |
Three
Months Ended
|
|||||||||||||
(Dollars
in thousands)
|
March
28, 2009
|
March
29, 2008
|
Three
Month Period Change
|
||||||||||
Cost
of sales
|
$ | 182,924 | $ | 92,591 | $ | 90,333 | 98 | % | |||||
%
of net sales
|
43.7 | % | 47.0 | % |
Three
Months Ended
|
|||||||||||||||
(Dollars
in thousands)
|
March
28, 2009
|
March
29, 2008
|
Three
Month Period Change
|
||||||||||||
Gross
profit
|
$ | 235,284 | $ | 104,324 | $ | 130,960 | 126 | % | |||||||
%
of net sales
|
56.3 | % | 53.0 | % |
Three
Months Ended
|
|||||||||||||
(Dollars
in thousands)
|
March
28, 2009
|
March
29, 2008
|
Three
Month Period Change
|
||||||||||
Research
and development
|
$ | 11,704 | $ | 4,760 | $ | 6,944 | 146 | % | |||||
%
of net sales
|
2.8 | % | 2.4 | % |
Three
Months Ended
|
|||||||||||||
(Dollars
in thousands)
|
March
28, 2009
|
March
29, 2008
|
Three
Month Period Change
|
||||||||||
Selling,
general and administrative
|
$ | 49,315 | $ | 28,671 | $ | 20,644 | 72 | % | |||||
%
of net sales
|
11.8 | % | 14.6 | % |
Three
Months Ended
|
|||||||||||||
(Dollars
in thousands)
|
March
28, 2009
|
March
29, 2008
|
Three
Month Period Change
|
||||||||||
Production
start-up
|
$ | 6,209 | $ | 12,761 | $ | (6,552 | ) | (51 | )% | ||||
%
of net sales
|
1.5 | % | 6.5 | % |
Three
Months Ended
|
|||||||||||||
(Dollars
in thousands)
|
March
28, 2009
|
March
29, 2008
|
Three
Month Period Change
|
||||||||||
Foreign
currency gain
|
$ | 1,834 | $ | 774 | $ | 1,060 | 137 | %. |
Three
Months Ended
|
|||||||||||||
(Dollars
in thousands)
|
March
28, 2009
|
March
29, 2008
|
Three
Month Period Change
|
||||||||||
Interest
income
|
$ | 2,103 | $ | 6,685 | $ | (4,582 | ) | (69 | )% |
Three
Months Ended
|
|||||||||||||
(Dollars
in thousands)
|
March
28, 2009
|
March
29, 2008
|
Three
Month Period Change
|
||||||||||
Interest
expense, net
|
$ | 935 | $ | 4 | $ | 931 | N.M. |
Three
Months Ended
|
|||||||||||||
(Dollars
in thousands)
|
March
28, 2009
|
March
29, 2008
|
Three
Month Period Change
|
||||||||||
Other
expense
|
$ | 1,326 | $ | 378 | $ | 948 | 251 | % |
Three
Months Ended
|
|||||||||||||
(Dollars
in thousands)
|
March
28, 2009
|
March
29, 2008
|
Three
Month Period Change
|
||||||||||
Income
tax expense
|
$ | 5,137 | $ | 18,590 | $ | (13,453 | ) | (72 | )% | ||||
Effective
tax rate (%)
|
3.0 | % | 28.5 | % |