Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation and Significant Accounting Policies (Tables)

v3.10.0.1
Basis of Presentation and Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The impact on the Company’s previously reported Consolidated Statement of Operations as a result of the adoption of the new standard is as follows:
 
Three months ended July 1, 2017
 
Six months ended July 1, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
 
As Previously Reported
 
Adjustment
 
As Adjusted
 
(In millions, except per share amounts)
Net revenue
$
1,222

 
$
(71
)
 
$
1,151

 
$
2,206

 
$
123

 
$
2,329

Cost of sales
818

 
(53
)
 
765

 
1,471

 
94

 
1,565

Gross margin
404

 
(18
)
 
386

 
735

 
29

 
764

Research and development
279

 
6

 
285

 
545

 
11

 
556

Marketing, general and administrative
125

 
2

 
127

 
246

 
4

 
250

Licensing gain
(25
)
 
—

 
(25
)
 
(52
)
 
—

 
(52
)
Operating income (loss)
25

 
(26
)
 
(1
)
 
(4
)
 
14

 
10

Interest expense
(32
)
 
—

 
(32
)
 
(64
)
 
—

 
(64
)
Other income (expense), net
(3
)
 
—

 
(3
)
 
(8
)
 
—

 
(8
)
Income (loss) before equity loss and income taxes
(10
)
 
(26
)
 
(36
)
 
(76
)
 
14

 
(62
)
Provision for income taxes
3

 
—

 
3

 
8

 
—

 
8

Equity loss in investee
(3
)
 
—

 
(3
)
 
(5
)
 
—

 
(5
)
Net income (loss)
$
(16
)
 
$
(26
)
 
$
(42
)
 
$
(89
)
 
$
14

 
$
(75
)
Earnings (loss) per share
 
 
 
 

 
 
 
 
 
 
  Basic
$
(0.02
)
 
$
(0.02
)
 
$
(0.04
)
 
$
(0.09
)
 
$
0.01

 
$
(0.08
)
  Diluted
$
(0.02
)
 
$
(0.02
)
 
$
(0.04
)
 
$
(0.09
)
 
$
0.01

 
$
(0.08
)
Shares used in per share calculation
 
 
 
 

 
 
 
 
 
 
  Basic
945

 


 
945

 
942

 
 
 
942

  Diluted
945

 


 
945

 
942

 
 
 
942


The impact on the Company’s previously reported Consolidated Balance Sheets line items affected by the adoption of the new standard is as follows:
 
December 30, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
 
(In millions, except per share amounts)
Accounts receivable, net
$
400

 
$
54

 
$
454

Inventories, net
739

 
(45
)
 
694

Other current assets
188

 
3

 
191

Accrued liabilities
541

 
14

 
555

Other current liabilities
57

 
35

 
92

Deferred income on shipments to distributors
22

 
(22
)
 
—

Accumulated deficit
$
(7,760
)
 
$
(15
)
 
$
(7,775
)