ALTERA CORP

CIK:0000768251|SEC Filings

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2015	Sep. 26, 2014	Sep. 25, 2015	Sep. 26, 2014
Income Statement [Abstract]
Net sales	$ 399,567	$ 499,606	$ 1,249,214	$ 1,452,216
Cost of sales	133,667	166,019	416,520	480,279
Gross margin	265,900	333,587	832,694	971,937
Research and development expense	100,481	112,078	309,057	310,856
Selling, general, and administrative expense	74,745	77,724	220,262	231,205
Amortization of acquisition-related intangible assets	2,491	2,465	7,382	7,394
Merger expenses	10,421	0	28,879	0
Compensation (benefit)/expense - deferred compensation plan	(4,468)	(487)	(1,709)	4,093
Loss/(gain) on deferred compensation plan securities	4,468	487	1,709	(4,093)
Interest income and other	(9,590)	(4,558)	(24,681)	(18,362)
Gain reclassified from other comprehensive income	(1,644)	(59)	(5,613)	(150)
Interest expense	10,772	10,774	32,039	32,139
Income before income taxes	78,224	135,163	265,369	408,855
Income tax expense	16,706	17,154	38,660	47,328
Net income	61,518	118,009	226,709	361,527
Unrealized holding gain/(loss) on investments:
Unrealized holding gain/(loss) on investments arising during period, net of tax of $190, ($6), ($228) and $41	13,058	(4,929)	5,038	22,102
Less: Reclassification adjustments for gain on investments included in net income, net of tax of ($1), $11, $15 and $21	(1,644)	(48)	(5,598)	(129)
Other comprehensive income/(loss)	11,414	(4,977)	(560)	21,973
Comprehensive income	$ 72,932	$ 113,032	$ 226,149	$ 383,500
Net income per share (in dollars per share):
Basic (in dollars per share)	$ 0.20	$ 0.38	$ 0.75	$ 1.16
Diluted (in dollars per share)	$ 0.20	$ 0.38	$ 0.74	$ 1.15
Shares used in computing per share amounts (in shares):
Basic (in shares)	302,707	308,215	301,950	311,853
Diluted (in shares)	305,337	310,184	304,421	314,130
Dividends per common share	$ 0.18	$ 0.18	$ 0.54	$ 0.48

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 25, 2015	Sep. 26, 2014
Cash Flows from Operating Activities:
Net income	$ 226,709	$ 361,527
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	42,804	42,426
Amortization of acquisition-related intangible assets	7,382	7,394
Amortization of debt discount and debt issuance costs	2,337	2,337
Stock-based compensation	63,560	70,518
Net gain on sale of available-for-sale securities	(5,613)	(150)
Amortization of investment discount/premium	9,025	1,900
Deferred income tax expense	1,065	3,582
Tax effect of employee stock plans	3,352	7,434
Excess tax benefit from employee stock plans	(3,704)	(4,719)
Changes in assets and liabilities, net of the effects of acquisition:
Accounts receivable, net	(66,143)	76,324
Inventories	(5,923)	(22,458)
Other assets	(5,796)	(3,002)
Accounts payable and other liabilities	9,401	32,581
Deferred income and allowances on sales to distributors	95,336	(90,744)
Income taxes payable and receivable, net	26,202	36,345
Deferred compensation plan obligations	(7,123)	(5,858)
Net cash provided by operating activities	392,871	515,437
Cash Flows from Investing Activities:
Purchases of property and equipment	(52,243)	(34,946)
Sales of deferred compensation plan securities, net	7,123	5,858
Purchases of available-for-sale securities	(1,520,789)	(276,867)
Proceeds from sale of available-for-sale securities	804,163	79,424
Proceeds from maturity of available-for-sale securities	111,439	175,280
Acquisition, net of cash acquired	4,000	0
Purchases of intangible assets	(5,359)	(1,269)
Purchases of other investments	(2,000)	(8,224)
Net cash used in investing activities	(661,666)	(60,744)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock through stock plans	19,080	29,871
Shares withheld for employee taxes	(25,052)	(20,852)
Payment of dividends to stockholders	(162,947)	(149,844)
Holdback payment for prior acquisition	0	(3,353)
Long-term debt and credit facility issuance costs	0	(1,321)
Repurchases of common stock	(57,507)	(502,986)
Excess tax benefit from employee stock plans	3,704	4,719
Net cash used in financing activities	(222,722)	(643,766)
Net decrease in cash and cash equivalents	(491,517)	(189,073)
Cash and cash equivalents at beginning of period	2,426,367	2,869,158
Cash and cash equivalents at end of period	$ 1,934,850	$ 2,680,085

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 25, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 1,934,850	$ 2,426,367
Short-term investments	185,762	151,519
Total cash, cash equivalents, and short-term investments	2,120,612	2,577,886
Accounts receivable, net	444,107	377,964
Inventories	159,310	153,387
Deferred income taxes — current	60,210	56,048
Deferred compensation plan — marketable securities	57,781	69,367
Deferred compensation plan — restricted cash equivalents	17,166	14,412
Other current assets	50,718	39,479
Total current assets	2,909,904	3,288,543
Property and equipment, net	208,897	194,840
Long-term investments	2,504,693	1,942,343
Deferred income taxes — non-current	20,725	20,077
Goodwill	81,331	74,341
Acquisition-related intangible assets, net	66,989	72,291
Other assets, net	92,646	81,791
Total assets	5,885,185	5,674,226
Current liabilities:
Accounts payable	41,520	49,140
Accrued liabilities	47,523	28,384
Accrued compensation and related liabilities	74,113	69,837
Deferred compensation plan obligations	74,947	83,779
Deferred income and allowances on sales to distributors	439,504	344,168
Total current liabilities	677,607	575,308
Income taxes payable — non-current	352,433	313,447
Long-term debt	1,493,729	1,492,759
Other non-current liabilities	8,955	6,886
Total liabilities	$ 2,532,724	$ 2,388,400
Commitments and contingencies
Stockholders' equity:
Common stock: $.001 par value; 1,000,000 shares authorized; outstanding - 302,857 shares at September 25, 2015 and 302,430 shares at December 31, 2014	$ 303	$ 302
Capital in excess of par value	1,227,586	1,165,259
Retained earnings	2,115,487	2,110,620
Accumulated other comprehensive income	9,085	9,645
Total stockholders' equity	3,352,461	3,285,826
Total liabilities and stockholders' equity	$ 5,885,185	$ 5,674,226