|
ALTERA CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||
|
| |||||||||||||||
|
|
|
Three Months Ended |
|
Years Ended | |||||||||||
|
(In thousands, except per share amounts) |
|
December 31, 2013 |
|
September 27, 2013 |
|
December 31, 2012 |
|
December 31, 2013 |
|
December 31, 2012 | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net sales |
|
$ |
454,367 |
|
$ |
445,945 |
|
$ |
439,440 |
|
$ |
1,732,572 |
|
$ |
1,783,035 |
|
Cost of sales |
|
144,024 |
|
141,525 |
|
133,367 |
|
546,736 |
|
541,523 | |||||
|
Gross margin |
|
310,343 |
|
304,420 |
|
306,073 |
|
1,185,836 |
|
1,241,512 | |||||
|
Operating expense |
|
|
|
|
|
|
|
|
|
| |||||
|
Research and development expense |
|
106,643 |
|
95,336 |
|
93,949 |
|
385,185 |
|
359,568 | |||||
|
Selling, general, and administrative expense |
|
84,692 |
|
78,907 |
|
74,030 |
|
320,068 |
|
289,854 | |||||
|
Amortization of acquisition-related intangible assets |
|
1,850 |
|
1,846 |
|
213 |
|
4,824 |
|
853 | |||||
|
Total operating expense |
|
193,185 |
|
176,089 |
|
168,192 |
|
710,077 |
|
650,275 | |||||
|
Operating margin (1) |
|
117,158 |
|
128,331 |
|
137,881 |
|
475,759 |
|
591,237 | |||||
|
Compensation expense - deferred compensation plan |
|
3,881 |
|
3,462 |
|
358 |
|
10,605 |
|
7,055 | |||||
|
Gain on deferred compensation plan securities |
|
(3,881) |
|
(3,462) |
|
(358) |
|
(10,605) |
|
(7,055) | |||||
|
Interest income and other |
|
(4,902) |
|
(2,214) |
|
(2,390) |
|
(11,553) |
|
(8,388) | |||||
|
Gain reclassified from other comprehensive income |
|
(24) |
|
(33) |
|
(205) |
|
(153) |
|
(268) | |||||
|
Interest expense |
|
8,272 |
|
2,511 |
|
2,589 |
|
16,637 |
|
7,976 | |||||
|
Income before income taxes |
|
113,812 |
|
128,067 |
|
137,887 |
|
470,828 |
|
591,917 | |||||
|
Income tax expense |
|
14,878 |
|
8,635 |
|
17,082 |
|
30,763 |
|
35,110 | |||||
|
Net income |
|
$ |
98,934 |
|
$ |
119,432 |
|
$ |
120,805 |
|
$ |
440,065 |
|
$ |
556,807 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Other comprehensive (loss)/ income: |
|
|
|
|
|
|
|
|
|
| |||||
|
Unrealized (loss)/gain on investments: |
|
|
|
|
|
|
|
|
|
| |||||
|
Unrealized holding (loss)/gain on investments arising during period, net of tax of ($11), $30, ($11), ($1) and $114 |
|
(26,811) |
|
2,419 |
|
(889) |
|
(33,424) |
|
5,839 | |||||
|
Less: Reclassification adjustments for gain on investments included in net income, net of tax of $2, $11, $24, $23 and $25 |
|
(22) |
|
(22) |
|
(44) |
|
(130) |
|
(114) | |||||
|
|
|
(26,833) |
|
2,397 |
|
(933) |
|
(33,554) |
|
5,725 | |||||
|
Unrealized gain on derivatives: |
|
|
|
|
|
|
|
|
|
| |||||
|
Unrealized gain on derivatives arising during period, net of tax of $9 and $45 |
|
— |
|
— |
|
17 |
|
— |
|
84 | |||||
|
Less: Reclassification adjustments for gain on derivatives included in net income, net of tax of $48 and $45 |
|
— |
|
— |
|
(89) |
|
— |
|
(84) | |||||
|
|
|
— |
|
— |
|
(72) |
|
— |
|
— | |||||
|
Other comprehensive (loss)/ income: |
|
(26,833) |
|
2,397 |
|
(1,005) |
|
(33,554) |
|
5,725 | |||||
|
Comprehensive income |
|
$ |
72,101 |
|
$ |
121,829 |
|
$ |
119,800 |
|
$ |
406,511 |
|
$ |
562,532 |
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net income per share: |
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
$ |
0.31 |
|
$ |
0.37 |
|
$ |
0.38 |
|
$ |
1.37 |
|
$ |
1.74 |
|
Diluted |
|
$ |
0.31 |
|
$ |
0.37 |
|
$ |
0.37 |
|
$ |
1.36 |
|
$ |
1.72 |
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Shares used in computing per share amounts: |
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
319,993 |
|
320,445 |
|
319,765 |
|
320,195 |
|
320,830 | |||||
|
Diluted |
|
322,018 |
|
323,505 |
|
322,209 |
|
323,018 |
|
324,497 | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Dividends per common share |
|
$ |
0.15 |
|
$ |
0.15 |
|
$ |
0.10 |
|
$ |
0.50 |
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Tax rate |
|
13.1% |
|
6.7% |
|
12.4% |
|
6.5% |
|
5.9% | |||||
|
% of Net sales: |
|
|
|
|
|
|
|
|
|
| |||||
|
Gross margin |
|
68.3% |
|
68.3% |
|
69.7% |
|
68.4% |
|
69.6% | |||||
|
Research and development |
|
23.5% |
|
21.4% |
|
21.4% |
|
22.2% |
|
20.2% | |||||
|
Selling, general, and administrative |
|
18.6% |
|
17.7% |
|
16.8% |
|
18.5% |
|
16.3% | |||||
|
Operating margin (1) |
|
25.8% |
|
28.8% |
|
31.4% |
|
27.5% |
|
33.2% | |||||
|
Net income |
|
21.8% |
|
26.8% |
|
27.5% |
|
25.4% |
|
31.2% | |||||
|
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|
Notes: | ||||||||||||||||||||
|
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|
(1) We define operating margin as gross margin less research and development and selling, general and administrative expenses and amortization of acquisition-related intangible assets, as presented above. This presentation differs from income from operations as defined by U.S. Generally Accepted Accounting Principles ("GAAP"), as it excludes the effect of compensation associated with the deferred compensation plan obligations. Since the effect of compensation associated with our deferred compensation plan obligations is offset by gains and losses from related securities, we believe this presentation provides a more meaningful representation of our ongoing operating performance. A reconciliation of operating margin to income from operations follows: | ||||||||||||||||||||
|
|
|
|
|
Three Months Ended |
|
Years Ended | |||||||||||
|
(In thousands) |
|
December 31, 2013 |
|
September 27, 2013 |
|
December 31, 2012 |
|
December 31, 2013 |
|
December 31, 2012 | |||||
|
Operating margin (non-GAAP) |
|
$ |
117,158 |
|
$ |
128,331 |
|
$ |
137,881 |
|
$ |
475,759 |
|
$ |
591,237 |
|
Compensation expense — deferred compensation plan |
|
3,881 |
|
3,462 |
|
358 |
|
10,605 |
|
7,055 | |||||
|
Income from operations (GAAP) |
|
$ |
113,277 |
|
$ |
124,869 |
|
$ |
137,523 |
|
$ |
465,154 |
|
$ |
584,182 |
