Note 4. Supplemental Financial Information (in thousands)

Consolidated Balance Sheets

 

		July 30,				January 30,
		2016				2016
Inventories:
Work-in-process		$	129,460			$	131,471
Finished goods			73,257				78,546
Total inventories		$	202,717			$	210,017

Inventory held by third-party logistics providers is recorded as consigned inventory on the Company’s consolidated balance sheet. The amount of inventory held at third-party logistics providers was $24.3 million and $21.0 million at July 30, 2016 and January 30, 2016, respectively.

 

		July 30,				January 30,
		2016				2016
Property and equipment, net:
Machinery and equipment		$	587,919			$	578,627
Buildings			144,320				144,320
Computer software			99,016				102,928
Land			53,373				53,373
Building improvements			49,947				49,927
Leasehold improvements			50,151				50,192
Furniture and fixtures			24,233				27,119
Construction in progress			3,448				1,353
			1,012,407				1,007,839
Less: Accumulated depreciation and amortization			(737,633	)			(708,299	)
Total property and equipment, net		$	274,774			$	299,540
		July 30,				January 30,
		2016				2016
Other non-current assets:
Technology and other licenses		$	40,874			$	48,770
Deferred tax assets			36,928				34,505
Investments in privately-held companies			5,804				5,804
Prepaid land use rights			12,966				13,123
Deposits			50,351				51,512
Other			13,663				10,996
Total other non-current assets		$	160,586			$	164,710
		July 30,				January 30,
		2016				2016
Accrued liabilities:
Accrued rebates		$	24,387			$	41,320
Accrued royalties			16,361				16,217
Technology license obligations			16,753				17,985
Accrued legal expense			9,105				9,761
Accrued litigation			3,235				3,830
Other			43,135				42,947
Total accrued liabilities		$	112,976			$	132,060
		July 30,				January 30,
		2016				2016
Deferred income:
Deferred revenue		$	102,212			$	77,935
Deferred cost of goods sold			(30,163	)			(22,213	)
Deferred income		$	72,049			$	55,722

Deferred income at July 30, 2016 includes deferred revenue and cost of goods sold arising from shipments to a direct customer based on a firm purchase order. However, the Company determined that the revenue recognition criteria was not met because there was a contract amendment that changed the pricing terms and it was not signed until August 2016. The Company will recognize revenue of $15.6 million related to these shipments in the third quarter of fiscal 2017.

 

		July 30,				January 30,
		2016				2016
Other non-current liabilities:
Technology license obligations		$	4,539			$	12,461
Long-term accrued employee compensation			6,363				6,078
Other			6,381				8,424
Other non-current liabilities		$	17,283			$	26,963

Accumulated other comprehensive income (loss)

The changes in accumulated other comprehensive income (loss) by components are presented in the following tables (in thousands):

 

		Unrealized Gain (Loss) on Marketable Securities				Unrealized Gain (Loss) on Auction Rate Securities				Unrealized Gain (Loss) on Cash Flow Hedges				Total
Balance at January 30, 2016		$	(656	)		$	—			$	(139	)		$	(795	)
Other comprehensive income before reclassifications			4,471				—				788				5,259
Amounts reclassified from accumulated other comprehensive loss			(62	)			—				(387	)			(449	)
Other comprehensive income, net of tax			4,409				—				401				4,810
Balance at July 30, 2016		$	3,753			$	—			$	262			$	4,015
		Unrealized Gain (Loss) on Marketable Securities				Unrealized Gain (Loss) on Auction Rate Securities				Unrealized Gain (Loss) on Cash Flow Hedges				Total
Balance at January 31, 2015		$	3,768			$	(2,274	)		$	(1,186	)		$	308
Other comprehensive income (loss) before reclassifications			(2,865	)			(103	)			1,166				(1,802	)
Amounts reclassified from accumulated other comprehensive income (loss)			(453	)			—				669				216
Other comprehensive income (loss), net of tax			(3,318	)			(103	)			1,835				(1,586	)
Balance at August 1, 2015		$	450			$	(2,377	)		$	649			$	(1,278	)

The amounts reclassified from accumulated other comprehensive income (loss) by components are presented in the following table (in thousands):

 

		Three Months Ended								Six Months Ended
Affected Line Item in the  Statement of Operations		July 30, 2016				August 1, 2015				July 30, 2016				August 1, 2015
Interest and other income, net:
Available-for-sale securities:
Marketable securities		$	178			$	121			$	62			$	453
Operating cost and expenses:
Cash flow hedges:
Research and development			390				251				339				(613	)
Selling and marketing			8				4				7				(63	)
General and administrative			46				20				41				7
Total		$	622			$	396			$	449			$	(216	)

 

Consolidated Statements of Operations

 

		Three Months Ended								Six Months Ended
		July 30,				August 1,				July 30,				August 1,
		2016				2015				2016				2015
Interest and other income, net:
Interest income		$	3,193			$	3,971			$	6,635			$	8,048
Net realized gain on investments			261				25				425				361
Foreign currency exchange gain			2,958				3,494				1,017				3,901
Other income (expense)			(31	)			(508	)			(90	)			59
Interest expense			(97	)			(192	)			(215	)			(412	)
		$	6,284			$	6,790			$	7,772			$	11,957

Net income (loss) per share

The Company reports both basic net income (loss) per share, which is based on the weighted average number of common shares outstanding during the period, and diluted net income (loss) per share, which is based on the weighted average number of common shares outstanding and potentially dilutive common shares outstanding during the period. The computations of basic and diluted net income (loss) per share are presented in the following table (in thousands, except per share amounts):

 

		Three Months Ended								Six Months Ended
		July 30,				August 1,				July 30,				August 1,
		2016				2015				2016				2015
Numerator:
Net income (loss)		$	51,305			$	(771,940	)		$	28,626			$	(757,850	)
Denominator:
Weighted average shares — basic			511,235				516,368				510,014				516,298
Effect of dilutive securities:
Share-based awards			3,079				—				3,655				—
Weighted average shares — diluted			514,314				516,368				513,669				516,298
Net income (loss) per share:
Basic		$	0.10			$	(1.49	)		$	0.06			$	(1.47	)
Diluted		$	0.10			$	(1.49	)		$	0.06			$	(1.47	)

Potential dilutive securities include dilutive common shares from share-based awards attributable to the assumed exercise of stock options, restricted stock units and employee stock purchase plan shares using the treasury stock method. Under the treasury stock method, potential common shares outstanding are not included in the computation of diluted net income per share, if their effect is anti-dilutive.

Anti-dilutive potential shares are presented in the following table (in thousands):

 

		Three Months Ended								Six Months Ended
		July 30,				August 1,				July 30,				August 1,
		2016				2015				2016				2015
Weighted average shares outstanding:
Share-based awards			38,873				57,437				38,264				57,519

Anti-dilutive potential shares from share-based awards are excluded from the calculation of diluted earnings per share for all periods reported above because either their exercise price exceeded the average market price during the period or the share-based awards were determined to be anti-dilutive based on applying the treasury stock method. Anti-dilutive potential shares from share-based awards are also excluded from the calculation of diluted earnings per share for the three and six months ended August 1, 2015 due to the net loss reported in those periods.