(2) $5.2 million stock-based compensation expense; $1 million acquisition-related costs; $0.3 million recovery of termination and separation costs; $9.9 million amortization of purchased intangible assets; $1.1 million foreign exchange gain on foreign tax liabilities; $0.1 million lease exit costs; and $2.2 million provision for income taxes which includes $0.9 million income tax provision related to unrecognized tax benefits, $1.1 million income tax provision related to prepaid tax amortization, and $0.2 million income tax provision from adjustments related to prior periods.
(3) $6.8 million stock-based compensation expense; $1.1 million acquisition-related costs; $4.1 million termination and separation costs; $1.2 million asset impairment; $1.3 million reversal of accrual; $0.1 million lease exit costs; $13.5 million amortization of purchased intangible assets; $2.6 million foreign exchange gain on foreign tax liabilities; and $11.8 million provision for income taxes which includes $1.9 million income tax recovery relating to intercompany transactions, $2.5 million income tax recovery for adjustments relating to prior periods and changes in estimates, $0.9 million arrears interest relating to unrecognized tax benefits, $3.3 million provision related to non-deductible intangible asset amortization, $0.7 million income tax provision relating to foreign exchange translation of a foreign subsidiary, $10.4 million deferred tax effect related to changes in assessments for certain income tax credits, and $0.9 million income tax provision related to tax deductible goodwill and other items above.
(4) $23.2 million stock-based compensation expense; $3.4 million acquisition-related costs; $1.9 million termination and separation costs; $0.5 million asset impairment; $0.3 million reversal of accruals; $0.2 million lease exit costs; $43.2 million amortization of purchased intangible assets; $3.6 million foreign exchange gain on foreign tax liabilities; $0.1 million gain on disposal of investment; $0.3 million amortization of discount on long-term obligations; $0.1 million other nonrecurring expenses; and $10.7 million provision for income taxes which includes $6.5 million arrears interest relating to unrecognized tax benefits, $5.7 million income tax provision related to prepaid tax amortization, $6.5 million income tax provision related to tax deductible goodwill, and $8 million income tax recovery related to change in valuation allowance and other deductible items above.
(5) $26.3 million stock-based compensation expense; $4.8 million acquisition-related costs and deferred tax effects; $6.1 million termination and separation costs; $2.8 million asset impairment; $6.5 million reversal of accruals; $0.1 million lease exit costs; $48.2 million amortization of purchased intangible assets; $4.7 million foreign exchange gain on foreign tax liabilities; $1.8 million gain on disposal of investment and $25.4 million provision for income taxes which includes $0.2 million income tax provision relating to intercompany transactions, $2.6 million arrears interest relating to unrecognized tax benefits, $11.7 million provision related to non-deductible intangible asset amortization and impairment, $2 million income tax recovery for adjustments relating to prior periods and changes in estimates, $1.2 million income tax provision relating to foreign exchange translation of a foreign subsidiary, $10.4 million deferred tax effect related to change in assessment for certain income tax credit, and $1.3 million income tax provision related to tax deductible goodwill and other items above.
|
PMC-Sierra, Inc. |
||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| December 27, | December 28, | |||||||
| 2014 | 2013 | |||||||
| ASSETS: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 112,570 | $ | 100,038 | ||||
| Short-term investments | 45,885 | 10,894 | ||||||
| Cash, cash equivalents and short-term investments | 158,455 | 110,932 | ||||||
| Accounts receivable, net | 55,414 | 56,112 | ||||||
| Inventories, net | 37,949 | 31,074 | ||||||
| Prepaid expenses and other current assets | 16,473 | 19,855 | ||||||
| Income tax receivable | 1,968 | 2,640 | ||||||
| Prepaid tax expense | 51 | 5,695 | ||||||
|
Deferred tax assets (1) |
4,079 | 43,131 | ||||||
| Total current assets | 274,389 | 269,439 | ||||||
| Investment securities | 107,509 | 103,391 | ||||||
| Investments and other assets | 7,683 | 10,750 | ||||||
| Prepaid tax expense | 42 | 93 | ||||||
| Property and equipment, net | 37,311 | 39,149 | ||||||
| Goodwill and other intangible assets, net | 426,919 | 425,823 | ||||||
| Deferred tax assets (1) | 13,412 | 1,306 | ||||||
| Long-term income tax receivable | 457 | - | ||||||
| $ | 867,722 | $ | 849,951 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 23,360 | $ | 23,173 | ||||
| Accrued liabilities | 74,135 | 64,257 | ||||||
| Credit facility | - | 30,000 | ||||||
| Income taxes payable | 1,062 | 632 | ||||||
| Liability for unrecognized tax benefit (1) | 16,076 | 54,127 | ||||||
| Current deferred income taxes | 7,644 | 71 | ||||||
| Deferred income | 4,530 | 7,481 | ||||||
| Total current liabilities | 126,807 | 179,741 | ||||||
| Long-term obligations | 36,305 | 11,108 | ||||||
| Deferred income taxes | 52,130 | 43,143 | ||||||
|
Liability for unrecognized tax benefit (1) |
25,244 | 27,947 | ||||||
| PMC special shares convertible into 278 (2013 - 1,019) | 745 | 1,188 | ||||||
| shares of common stock | ||||||||
| Stockholders' equity: | ||||||||
| Common stock and additional paid in capital | 1,595,809 | 1,550,385 | ||||||
| Accumulated other comprehensive loss | (2,355 | ) | (526 | ) | ||||
| Accumulated deficit | (966,963 | ) | (963,035 | ) | ||||
| Total stockholders' equity | 626,491 | 586,824 | ||||||
| $ | 867,722 | $ | 849,951 | |||||
| (1) Effective from the beginning of the first quarter of 2014, the Company adopted Financial Accounting Standards Board's Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists.” Approximately $44 million of deferred tax assets of a foreign subsidiary were derecognized along with the related liability for unrecognized tax benefits as a result of this presentation adoption, with no impact to the Condensed Consolidated Statements of Operations. | ||||||||
| PMC-Sierra, Inc. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
|
|
Twelve Months Ended |
|||||||
| December 27, | December 28, | |||||||
| 2014 | 2013 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | 82 | $ | (32,254 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 65,477 | 71,432 | ||||||
| Stock-based compensation | 23,181 | 26,264 | ||||||
| Unrealized foreign exchange gain, net | (5,846 | ) | (2,251 | ) | ||||
| Net amortization of premiums and accrued interest of investments | 718 | 1,580 | ||||||
| Asset impairments | 770 | 2,966 | ||||||
| Gain on investment securities and other investments | (131 | ) | (1,796 | ) | ||||
| Loss on disposal of property and equipment | 4 | 6 | ||||||
| Amortization of discount on long-term obligations | 350 | - | ||||||
| Excess tax benefits from stock option transactions | - | (842 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 598 | 6,330 | ||||||
| Inventories, net | (6,875 | ) | (3,625 | ) | ||||
| Prepaid expenses and other current assets | 1,349 | 1,315 | ||||||
| Accounts payable and accrued liabilities | 878 | (5,551 | ) | |||||
| Deferred income taxes and income taxes receivables/payables | 12,970 | 15,900 | ||||||
| Deferred income | (2,951 | ) | (632 | ) | ||||
| Net cash provided by operating activities | 90,574 | 78,842 | ||||||
| Cash flows from investing activities: | ||||||||
| Business acquisition | (10,000 | ) | (96,098 | ) | ||||
| Investment in long term deposits | - | (1,127 | ) | |||||
| Purchases of property and equipment | (13,945 | ) | (16,851 | ) | ||||
| Purchases of intangible assets | (1,437 | ) | (3,979 | ) | ||||
| Redemption of short-term investments | 5,670 | 8,466 | ||||||
| Disposals of investment securities and other investments | 61,695 | 162,773 | ||||||
| Purchases of investment securities and other investments | (106,076 | ) | (179,837 | ) | ||||
| Net cash used in investing activities | (64,093 | ) | (126,653 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payment of debt issuance costs | - | (928 | ) | |||||
| Proceeds from credit facility | 30,000 | 30,000 | ||||||
| Repayment of credit facility | (60,000 | ) | - | |||||
| Proceeds from issuance of common stock | 29,175 | 25,247 | ||||||
| Repurchases of common stock | (11,496 | ) | (76,335 | ) | ||||
| Excess tax benefits from stock option transactions | - | 842 | ||||||
| Net cash used in financing activities | (12,321 | ) | (21,174 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (1,628 | ) | (947 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 12,532 | (69,932 | ) | |||||
| Cash and cash equivalents, beginning of the period | 100,038 | 169,970 | ||||||
| Cash and cash equivalents, end of the period | $ | 112,570 | $ | 100,038 | ||||
