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)
 9 Months Ended
Sep. 29, 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 was as follows:
 
Three months ended September 29, 2017
 
Nine months ended September 29, 2017
 
As Previously Reported
 
Adjustment
 
As Adjusted
 
As Previously Reported
 
Adjustment
 
As Adjusted
 
(In millions, except per share amounts)
Net revenue
$
1,643

 
$
(59
)
 
$
1,584

 
$
3,849

 
$
64

 
$
3,913

Cost of sales
1,070

 
(57
)
 
1,013

 
2,541

 
37

 
2,578

Gross margin
573

 
(2
)
 
571

 
1,308

 
27

 
1,335

Research and development
315

 
5

 
320

 
860

 
16

 
876

Marketing, general and administrative
132

 
—

 
132

 
378

 
4

 
382

Licensing gain
—

 
—

 
—

 
(52
)
 
—

 
(52
)
Operating income (loss)
126

 
(7
)
 
119

 
122

 
7

 
129

Interest expense
(31
)
 
—

 
(31
)
 
(95
)
 
—

 
(95
)
Other expense, net
(3
)
 
—

 
(3
)
 
(11
)
 
—

 
(11
)
Income (loss) before equity loss and income taxes
92

 
(7
)
 
85

 
16

 
7

 
23

Provision for income taxes
19

 
3

 
22

 
27

 
3

 
30

Equity loss in investee
(2
)
 
—

 
(2
)
 
(7
)
 
—

 
(7
)
Net income (loss)
$
71

 
$
(10
)
 
$
61

 
$
(18
)
 
$
4

 
$
(14
)
Earnings (loss) per share
 
 
 
 

 
 
 
 
 
 
  Basic
$
0.07

 
$
(0.01
)
 
$
0.06

 
$
(0.02
)
 
$
0.01

 
$
(0.01
)
  Diluted
$
0.07

 
$
(0.01
)
 
$
0.06

 
$
(0.02
)
 
$
0.01

 
$
(0.01
)
Shares used in per share calculation
 
 
 
 

 
 
 
 
 
 
  Basic
957

 


 
957

 
947

 
 
 
947

  Diluted
1,042

 


 
1,042

 
947

 
 
 
947


The impact on the Company’s previously reported Consolidated Balance Sheets line items affected by the adoption of the new standard was 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
)