THORATEC CORP

CIK:0000350907|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Product sales	$ 128,692	$ 118,063	$ 250,000	$ 243,760
Cost of product sales	39,897	34,307	77,026	74,333
Gross profit	88,795	83,756	172,974	169,427
Operating expenses:
Selling, general and administrative	43,932	35,477	84,049	70,978
Research and development	26,511	23,048	52,628	46,387
Total operating expenses	70,443	58,525	136,677	117,365
Income from operations	18,352	25,231	36,297	52,062
Other income and ( expense ):
Interest expense	(13)	(2)	(13)	(2)
Interest income and other	687	559	1,504	806
Income before income taxes	19,026	25,788	37,788	52,866
Income tax expense	(5,778)	(8,375)	(13,760)	(17,214)
Net income	$ 13,248	$ 17,413	$ 24,028	$ 35,652
Net income per share:
Basic (in dollars per share)	$ 0.24	$ 0.31	$ 0.44	$ 0.63
Diluted (in dollars per share)	$ 0.24	$ 0.30	$ 0.44	$ 0.62
Shares used to compute net income per share:
Basic (in shares)	54,481	56,723	54,246	56,781
Diluted (in shares)	55,261	57,188	55,155	57,538

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Cash flows from operating activities:
Net Income	$ 24,028	$ 35,652
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,943	8,207
Fixed assets write-down	172
Investment premium amortization, net	1,810	2,176
Allowance (reduction in ) for bad debt	463	(995)
Foreign currency re-measurement and other	5,149	232
Tax benefit related to stock plans	992	875
Change in fair value of contingent consideration	818	(1,436)
Share-based compensation expense	18,850	14,615
Excess tax benefits from share based compensation	(1,941)	(989)
Loss on disposal of assets	96	613
Change in net deferred tax liability	(428)	(226)
Changes in assets and liabilities:
Receivables	(8,858)	3,697
Inventories	(9,958)	(8,104)
Other current and non-current assets	3,136	559
Accounts payable	8,771	1,167
Income taxes, net	(11)	(7,410)
Other current and non-current liabilities	5,692	(7,799)
Net cash provided by operating activities	55,724	40,834
Cash flows from investing activities:
Purchases of available-for-sale investments	(90,937)	(86,877)
Sales and maturities of available-for-sale investments	116,891	94,232
Purchases of property, plant and equipment	(2,820)	(5,330)
Note receivable from Apica		(2,019)
Net cash provided by investing activities	23,134	6
Cash flows from financing activities:
Payment of contingent consideration	(7,699)	(6,107)
Proceeds from stock option exercises	23,463	2,867
Proceeds from stock issued under employee stock purchase plan	2,499	2,800
Excess tax benefits from share based compensation	1,941	989
Repurchase and retirement of common shares	(32,268)	(46,030)
Net cash used in financing activities	(12,064)	(45,481)
Effect of exchange rate changes on cash and cash equivalents	5,317	271
Net increase (decrease) in cash and cash equivalents	72,111	(4,370)
Net cash and cash equivalents at beginning of period	72,814	139,099
Net cash and cash equivalents at end of period	144,925	134,729
Supplemental disclosure of consolidated cash flow information:
Cash paid for taxes	13,239	24,206
Supplemental disclosure of consolidated non-cash investing and financing activities:
Transfers of equipment from inventory	605	1,012
Repurchases and retirement of common shares through other accrued liabilities	312	2,266
Purchases of property, plant and equipment through accounts payable and accrued liabilities	$ 221	$ 583

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Current assets:
Cash and cash equivalents	$ 144,925	$ 72,814
Short-term available-for-sale investments	129,042	157,664
Receivables, net of allowances of $1,892 in 2015 and $1,504 in 2014	79,915	72,847
Inventories	70,859	62,204
Deferred tax assets	15,782	15,727
Income tax receivable	14,476	10,778
Prepaid expenses and other assets	5,922	12,458
Total current assets	460,921	404,492
Property, plant and equipment, net	49,371	51,231
Goodwill	226,578	225,293
Purchased intangible assets, net	40,313	44,488
Long-term available-for-sale investments	4,212	4,239
Other long-term assets	35,787	34,240
Total Assets	817,182	763,983
Current liabilities:
Accounts payable	20,969	12,662
Accrued compensation	25,472	22,836
Warranty and related accrual	8,648	10,639
Contingent liabilities, current portion	5,782	14,902
Other accrued liabilities	22,391	20,441
Total current liabilities	83,262	81,480
Long-term deferred tax liability	4,376	3,592
Other long-term liabilities	17,079	14,458
Contingent liabilities, non-current portion (Notes 2)	32,237	31,656
Total Liabilities	$ 136,954	$ 131,186
Shareholders' equity:
Common shares: no par, authorized 100,000; issued and outstanding 54,741 in 2015 and 54,109 in 2014
Additional paid-in-capital	$ 652,793	$ 614,577
Retained earnings	45,335	40,242
Accumulated other comprehensive loss:	(17,900)	(22,022)
Total Shareholders' Equity	680,228	632,797
Total Liabilities and Shareholders' Equity	$ 817,182	$ 763,983