%PDF-1.5 1 0 obj <> endobj 3 0 obj <>] /Rotate 0 /Contents 4 0 R>> endobj 4 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 772.60 Td (Use these links to rapidly review the document) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 759.2669921875 m 151.4208984375 759.2669921875 l s q 0 0 1 rg BT 50.00 760.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.31 760.60 Td (ABLE OF CONTENTS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 747.2669921875 m 86.82373046875 747.2669921875 l s q 0 0 1 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 1 rg BT 54.64 748.60 Td (AR) Tj ET Q q 0 0 1 rg BT 67.93 748.60 Td (T) Tj ET Q q 0 0 1 rg BT 73.86 748.60 Td ( IV) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 50 698.6 m 644 698.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 694.6 m 644 694.6 l s BT /F1 10.00 Tf ET BT /F2 16.00 Tf ET q 0 0 0 rg BT 243.35 669.90 Td (UNITED ST) Tj ET Q q 0 0 0 rg BT 327.97 669.90 Td (A) Tj ET Q q 0 0 0 rg BT 338.33 669.90 Td (TES) Tj ET Q BT /F2 16.00 Tf ET q 0 0 0 rg BT 134.15 647.70 Td (SECURITIES ) Tj ET Q q 0 0 0 rg BT 234.20 647.70 Td (AND EXCHANGE COMMISSION) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 251.20 633.90 Td (W) Tj ET Q q 0 0 0 rg BT 259.20 633.90 Td (ASHINGT) Tj ET Q q 0 0 0 rg BT 300.55 633.90 Td (ON, D.C. 20549) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 206.00 624.30 Td (__________________________________________________) Tj ET Q BT /F2 16.00 Tf ET q 0 0 0 rg BT 262.65 602.10 Td (FORM 10-K) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 580.05 Td (\(Mark One\)) Tj ET Q /GS0 gs q 9.54 0 0 8.78 64.70 566.37 cm /I1 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 92.50 569.05 Td (ANNUAL REPORT PURSUANT TO SECTION13 OR 15\(d\)OFTHE SECURITIESEXCHANGE ACT OF1934) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 224.65 554.05 Td (For the Fiscal Year Ended October 1, 2016) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 301.80 539.05 Td (or) Tj ET Q /GS0 gs q 8.02 0 0 8.78 65.45 521.37 cm /I2 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 92.50 524.05 Td (TRANSITION REPORT PURSUANT TO SECTION13 OR 15\(d\)OFTHE SECURITIESEXCHANGE ACT OF1934) Tj ET Q BT /F1 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 234.60 503.30 Td (Commission File Number: 001-33962) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 204.00 490.70 Td (___________________________________________________) Tj ET Q BT /F2 16.00 Tf ET q 0 0 0 rg BT 240.10 468.50 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 330.48 468.50 Td (,INC. ) Tj ET Q BT /F2 16.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 375.82 468.50 Td ( ) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 158.30 446.45 Td (Delaware) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 410.75 446.45 Td (94-1622541) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 124.25 435.26 Td (\(State or other jurisdiction of) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 122.35 426.31 Td (incorporation or or) Tj ET Q q 0 0 0 rg BT 190.17 426.31 Td (ganization\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.75 435.26 Td (\(I.R.S. Employer) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 426.31 Td (Identification No.\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 79.50 411.45 Td (5100 Patrick Henry Drive, Santa Clara, California) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 421.25 411.45 Td (95054) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 105.10 400.31 Td (\(Address of principal executive offices\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.60 400.31 Td (\(Zip Code\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 183.65 384.70 Td (Registrant's telephone number) Tj ET Q q 0 0 0 rg BT 292.38 384.70 Td (, including area code: ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 372.10 384.70 Td (\(408\)764-4000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 202.50 370.90 Td (Securities registered pursuant to Section12\(b\) of the ) Tj ET Q q 0 0 0 rg BT 393.95 370.90 Td (Act:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 66 341.4 m 257 341.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 341.4 m 527 341.4 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 134.70 345.46 Td (Title of each class) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 379.20 350.16 Td (Name of each exchange on which) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 413.65 343.21 Td (r) Tj ET Q q 0 0 0 rg BT 416.63 343.21 Td (egister) Tj ET Q q 0 0 0 rg BT 436.32 343.21 Td (ed) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 102.75 332.71 Td (Common Stock, $0.01 par value) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.50 332.71 Td (The NASDAQ Stock MarketLLC) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.35 321.71 Td (Nasdaq Global Select Market) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 191.65 306.10 Td (Securities registered pursuant to Section12\(g\) of the ) Tj ET Q q 0 0 0 rg BT 383.10 306.10 Td (Act: None) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 289.30 Td (Indicate by check mark if the registrant is a well-known seasoned issuer) Tj ET Q q 0 0 0 rg BT 335.30 289.30 Td (, as defined in Rule405 of the Securities ) Tj ET Q q 0 0 0 rg BT 483.27 289.30 Td (Act.) Tj ET Q q 0 0 0 rg BT 500.43 289.30 Td (Y) Tj ET Q q 0 0 0 rg BT 506.03 289.30 Td (es) Tj ET Q /GS0 gs q 9.54 0 0 9.18 515.78 287.36 cm /I3 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.32 289.30 Td (No) Tj ET Q /GS0 gs q 8.02 0 0 9.18 547.57 287.36 cm /I4 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 272.50 Td (Indicate by check mark if the registrant is not required to file reports pursuant to Section13 or Section15\(d\) of the Securities ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 261.70 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 86.73 261.70 Td (Act of 1934 \(the "Exchange ) Tj ET Q q 0 0 0 rg BT 189.13 261.70 Td (Act"\).) Tj ET Q q 0 0 0 rg BT 212.96 261.70 Td (Y) Tj ET Q q 0 0 0 rg BT 218.56 261.70 Td (es) Tj ET Q /GS0 gs q 8.02 0 0 9.18 228.30 259.76 cm /I5 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.32 261.70 Td (No) Tj ET Q /GS0 gs q 9.54 0 0 9.18 258.57 259.76 cm /I6 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 244.90 Td (Indicate by check mark whether the registrant \(1\)has filed all reports required to be filed by Section13 or 15\(d\) of the Securities ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 86.73 234.10 Td (Act of 1934 during the preceding 12months \(or for such shorter period that the registrant was required to file such reports\) and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 223.30 Td (\(2\)has been subject to such filing requirements for the past 90days.) Tj ET Q q 0 0 0 rg BT 297.10 223.30 Td (Y) Tj ET Q q 0 0 0 rg BT 302.70 223.30 Td (es) Tj ET Q /GS0 gs q 9.54 0 0 9.18 312.45 221.36 cm /I7 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.99 223.30 Td (No) Tj ET Q /GS0 gs q 8.02 0 0 9.18 344.24 221.36 cm /I8 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 206.50 Td (Indicate by check mark whether the registrant has submitted electronically and posted on its corporate ) Tj ET Q q 0 0 0 rg BT 445.96 206.50 Td (W) Tj ET Q q 0 0 0 rg BT 453.73 206.50 Td (eb site, if any) Tj ET Q q 0 0 0 rg BT 501.63 206.50 Td (, every ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 195.70 Td (Interactive Data File required to be submitted and posted pursuant to Rule405 of RegulationS-T) Tj ET Q q 0 0 0 rg BT 399.01 195.70 Td ( \(229.405 of this chapter\) during the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 184.90 Td (preceding 12months \(or for such shorter period that the registrant was required to submit and post such files.) Tj ET Q q 0 0 0 rg BT 444.57 184.90 Td (Y) Tj ET Q q 0 0 0 rg BT 450.17 184.90 Td (es) Tj ET Q /GS0 gs q 9.54 0 0 9.18 459.92 182.96 cm /I9 Do Q /GS0 gs q 9.00 0 0 9.18 469.46 182.96 cm /I10 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.46 184.90 Td (No) Tj ET Q /GS0 gs q 8.02 0 0 9.18 491.71 182.96 cm /I11 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 168.10 Td (Indicate by check mark if disclosure of delinquent filers pursuant to Item405 of RegulationS-K is not contained herein, and will not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 157.30 Td (be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in PartIII of this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 146.50 Td (Form10-K or any amendment to this Form10-K.) Tj ET Q /GS0 gs q 8.02 0 0 9.18 230.48 144.56 cm /I12 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 129.70 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 267.50 129.70 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 335.59 129.70 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 408.17 129.70 Td (, a non-accelerated filer) Tj ET Q q 0 0 0 rg BT 492.75 129.70 Td (, or a smaller ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 118.90 Td (reporting company) Tj ET Q q 0 0 0 rg BT 117.15 118.90 Td (. See definitions of "lar) Tj ET Q q 0 0 0 rg BT 200.39 118.90 Td (ge accelerated filer", "accelerated filer" and "smaller reporting company" in Rule12b-2 of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 108.10 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 86.73 108.10 Td (Act.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 48.70 85.86 Td (Lar) Tj ET Q q 0 0 0 rg BT 61.03 85.86 Td (ge accelerated filer) Tj ET Q /GS0 gs q 9.54 0 0 9.18 131.72 83.92 cm /I13 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 199.75 85.86 Td (Accelerated filer) Tj ET Q /GS0 gs q 8.02 0 0 9.18 262.21 83.92 cm /I14 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.75 85.86 Td (Non-accelerated filer) Tj ET Q /GS0 gs q 8.02 0 0 9.18 410.20 83.92 cm /I15 Do Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 309.95 78.25 Td (\(Do not check if a smaller reporting company\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.60 85.86 Td (Smaller reporting company) Tj ET Q /GS0 gs q 8.02 0 0 9.18 561.32 83.92 cm /I16 Do Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 59.30 Td (Indicate by check mark whether the registrant is a shell company \(as defined in Rule12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 466.62 59.30 Td (Act\).) Tj ET Q q 0 0 0 rg BT 486.77 59.30 Td (Y) Tj ET Q q 0 0 0 rg BT 492.37 59.30 Td (es) Tj ET Q /GS0 gs q 8.02 0 0 9.18 502.12 57.36 cm /I17 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.14 59.30 Td (No) Tj ET Q /GS0 gs q 9.54 0 0 9.18 532.39 57.36 cm /I18 Do Q endstream endobj 5 0 obj <>] /Rotate 0 /Contents 6 0 R>> endobj 6 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (Use these links to rapidly review the document) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 759.2669921875 m 151.4208984375 759.2669921875 l s q 0 0 1 rg BT 50.00 760.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.31 760.60 Td (ABLE OF CONTENTS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 747.2669921875 m 86.82373046875 747.2669921875 l s q 0 0 1 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 1 rg BT 54.64 748.60 Td (AR) Tj ET Q q 0 0 1 rg BT 67.93 748.60 Td (T) Tj ET Q q 0 0 1 rg BT 73.86 748.60 Td ( IV) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 695.80 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 98.50 695.80 Td (November28, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 170.24 695.80 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.74 695.80 Td (24,552,429) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.24 695.80 Td ( shares of common stock were outstanding. ) Tj ET Q q 0 0 0 rg BT 373.04 695.80 Td (The aggregate market value of the voting shares ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 685.00 Td (\(based on the closing price reported on the NASDAQ Global Select Market on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.68 685.00 Td (April2, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.93 685.00 Td (, of Coherent,Inc., held by nonaf) Tj ET Q q 0 0 0 rg BT 502.23 685.00 Td (filiates was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 674.20 Td (approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 103.73 674.20 Td ($1,492,502,204) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 159.98 674.20 Td (. For purposes of this disclosure, shares of common stock held by persons who own 5% or more of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 663.40 Td (outstanding common stock and shares of common stock held by each of) Tj ET Q q 0 0 0 rg BT 308.53 663.40 Td (ficer and director have been excluded in that such persons may be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 652.60 Td (deemed to be "af) Tj ET Q q 0 0 0 rg BT 110.23 652.60 Td (filiates" as that term is defined under the Rules and Regulations of the Exchange ) Tj ET Q q 0 0 0 rg BT 401.83 652.60 Td (Act. ) Tj ET Q q 0 0 0 rg BT 419.16 652.60 Td (This determination of af) Tj ET Q q 0 0 0 rg BT 506.22 652.60 Td (filiate status is ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 641.80 Td (not necessarily conclusive.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 205.45 628.00 Td (DOCUMENT) Tj ET Q q 0 0 0 rg BT 258.79 628.00 Td ( INCORPORA) Tj ET Q q 0 0 0 rg BT 315.87 628.00 Td (TED BY) Tj ET Q q 0 0 0 rg BT 348.79 628.00 Td ( REFERENCE) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 614.20 Td (Portions of the registrant's Proxy Statement for the registrant's ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.45 614.20 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.45 614.20 Td ( ) Tj ET Q q 0 0 0 rg BT 322.21 614.20 Td (Annual Meeting of Stockholders are incorporated by reference ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 603.40 Td (into PartIII of the Form10-K to the extent stated herein. ) Tj ET Q q 0 0 0 rg BT 256.03 603.40 Td (The Proxy Statement or an amended report on Form10-K will be filed within ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 592.60 Td (120days of the registrant's fiscal year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.57 592.60 Td (October1, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.80 592.60 Td (.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 8.5 582.1 m 602.5 582.1 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 8.5 578.1 m 602.5 578.1 l s BT /F1 10.00 Tf ET endstream endobj 7 0 obj <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>] /Rotate 0 /Contents 8 0 R>> endobj 8 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.65 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 258.58 742.25 Td (ABLE OF) Tj ET Q q 0 0 0 rg BT 301.82 742.25 Td ( CONTENTS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52 708.9833984375 m 81.6923828125 708.9833984375 l s q 0 0 1 rg BT 52.00 710.32 Td (P) Tj ET Q q 0 0 1 rg BT 56.64 710.32 Td (AR) Tj ET Q q 0 0 1 rg BT 69.93 710.32 Td (T) Tj ET Q q 0 0 1 rg BT 75.86 710.32 Td ( I) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.00 710.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.00 709.42 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 693.9833984375 m 113.4384765625 693.9833984375 l s q 0 0 1 rg BT 79.00 695.32 Td (ITEM 1.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 693.9833984375 m 188.236328125 693.9833984375 l s q 0 0 1 rg BT 141.00 695.32 Td (BUSINESS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 678.9833984375 m 120.66015625 678.9833984375 l s q 0 0 1 rg BT 79.00 680.32 Td (ITEM 1A.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 678.9833984375 m 210.375 678.9833984375 l s q 0 0 1 rg BT 141.00 680.32 Td (RISK F) Tj ET Q q 0 0 1 rg BT 171.10 680.32 Td (ACT) Tj ET Q q 0 0 1 rg BT 190.92 680.32 Td (ORS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 663.9833984375 m 120.1083984375 663.9833984375 l s q 0 0 1 rg BT 79.00 665.32 Td (ITEM 1B.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 663.9833984375 m 297.6357421875 663.9833984375 l s q 0 0 1 rg BT 141.00 665.32 Td (UNRESOL) Tj ET Q q 0 0 1 rg BT 186.20 665.32 Td (VED ST) Tj ET Q q 0 0 1 rg BT 220.12 665.32 Td (AFF COMMENTS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 648.9833984375 m 113.4384765625 648.9833984375 l s q 0 0 1 rg BT 79.00 650.32 Td (ITEM 2.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 648.9833984375 m 199.30078125 648.9833984375 l s q 0 0 1 rg BT 141.00 650.32 Td (PROPER) Tj ET Q q 0 0 1 rg BT 178.19 650.32 Td (TIES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 633.9833984375 m 113.4384765625 633.9833984375 l s q 0 0 1 rg BT 79.00 635.32 Td (ITEM 3.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 633.9833984375 m 244.7939453125 633.9833984375 l s q 0 0 1 rg BT 141.00 635.32 Td (LEGAL) Tj ET Q q 0 0 1 rg BT 173.40 635.32 Td ( PROCEEDINGS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 618.9833984375 m 113.4384765625 618.9833984375 l s q 0 0 1 rg BT 79.00 620.32 Td (ITEM 4.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 618.9833984375 m 276.2001953125 618.9833984375 l s q 0 0 1 rg BT 141.00 620.32 Td (MINE SAFETY) Tj ET Q q 0 0 1 rg BT 206.46 620.32 Td ( DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52 603.9833984375 m 85.0224609375 603.9833984375 l s q 0 0 1 rg BT 52.00 605.32 Td (P) Tj ET Q q 0 0 1 rg BT 56.64 605.32 Td (AR) Tj ET Q q 0 0 1 rg BT 69.93 605.32 Td (T) Tj ET Q q 0 0 1 rg BT 75.86 605.32 Td ( II) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.00 605.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.00 604.42 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 588.9833984375 m 113.4384765625 588.9833984375 l s q 0 0 1 rg BT 79.00 590.32 Td (ITEM 5.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 588.9833984375 m 491.712890625 588.9833984375 l s q 0 0 1 rg BT 141.00 590.32 Td (MARKET) Tj ET Q q 0 0 1 rg BT 183.04 590.32 Td ( FOR REGISTRANT'S COMMON EQUITY) Tj ET Q q 0 0 1 rg BT 364.12 590.32 Td (, RELA) Tj ET Q q 0 0 1 rg BT 394.12 590.32 Td (TED ST) Tj ET Q q 0 0 1 rg BT 427.55 590.32 Td (OCKHOLDER ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 578.9833984375 m 421.2197265625 578.9833984375 l s q 0 0 1 rg BT 141.00 580.32 Td (MA) Tj ET Q q 0 0 1 rg BT 156.00 580.32 Td (TTERS ) Tj ET Q q 0 0 1 rg BT 188.51 580.32 Td (AND ISSUER PURCHASES OF EQUITY) Tj ET Q q 0 0 1 rg BT 362.05 580.32 Td ( SECURITIES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 563.9833984375 m 113.4384765625 563.9833984375 l s q 0 0 1 rg BT 79.00 565.32 Td (ITEM 6.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 563.9833984375 m 275.09912109375 563.9833984375 l s q 0 0 1 rg BT 141.00 565.32 Td (SELECTED FINANCIAL) Tj ET Q q 0 0 1 rg BT 247.01 565.32 Td ( DA) Tj ET Q q 0 0 1 rg BT 262.85 565.32 Td (T) Tj ET Q q 0 0 1 rg BT 268.15 565.32 Td (A) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 548.9833984375 m 113.4384765625 548.9833984375 l s q 0 0 1 rg BT 79.00 550.32 Td (ITEM 7.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 548.9833984375 m 511.44921875 548.9833984375 l s q 0 0 1 rg BT 141.00 550.32 Td (MANAGEMENT'S DISCUSSION ) Tj ET Q q 0 0 1 rg BT 283.93 550.32 Td (AND ) Tj ET Q q 0 0 1 rg BT 307.54 550.32 Td (ANAL) Tj ET Q q 0 0 1 rg BT 334.32 550.32 Td (YSIS OF FINANCIAL) Tj ET Q q 0 0 1 rg BT 427.29 550.32 Td ( CONDITION ) Tj ET Q q 0 0 1 rg BT 487.28 550.32 Td (AND ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 538.9833984375 m 262.3232421875 538.9833984375 l s q 0 0 1 rg BT 141.00 540.32 Td (RESUL) Tj ET Q q 0 0 1 rg BT 171.75 540.32 Td (TS OF OPERA) Tj ET Q q 0 0 1 rg BT 232.88 540.32 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 523.9833984375 m 120.66015625 523.9833984375 l s q 0 0 1 rg BT 79.00 525.32 Td (ITEM 7A.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 523.9833984375 m 480.6923828125 523.9833984375 l s q 0 0 1 rg BT 141.00 525.32 Td (QUANTIT) Tj ET Q q 0 0 1 rg BT 184.63 525.32 Td (A) Tj ET Q q 0 0 1 rg BT 190.75 525.32 Td (TIVE ) Tj ET Q q 0 0 1 rg BT 215.46 525.32 Td (AND QUALIT) Tj ET Q q 0 0 1 rg BT 276.04 525.32 Td (A) Tj ET Q q 0 0 1 rg BT 282.15 525.32 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 1 rg BT 376.61 525.32 Td (ABOUT) Tj ET Q q 0 0 1 rg BT 410.87 525.32 Td ( MARKET) Tj ET Q q 0 0 1 rg BT 455.41 525.32 Td ( RISK) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 508.9833984375 m 113.4384765625 508.9833984375 l s q 0 0 1 rg BT 79.00 510.32 Td (ITEM 8.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 508.9833984375 m 398.15087890625 508.9833984375 l s q 0 0 1 rg BT 141.00 510.32 Td (FINANCIAL) Tj ET Q q 0 0 1 rg BT 194.52 510.32 Td ( ST) Tj ET Q q 0 0 1 rg BT 207.88 510.32 Td (A) Tj ET Q q 0 0 1 rg BT 214.00 510.32 Td (TEMENTS ) Tj ET Q q 0 0 1 rg BT 262.05 510.32 Td (AND SUPPLEMENT) Tj ET Q q 0 0 1 rg BT 349.87 510.32 Td (AR) Tj ET Q q 0 0 1 rg BT 363.21 510.32 Td (Y) Tj ET Q q 0 0 1 rg BT 370.06 510.32 Td ( DA) Tj ET Q q 0 0 1 rg BT 385.90 510.32 Td (T) Tj ET Q q 0 0 1 rg BT 391.21 510.32 Td (A) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 493.9833984375 m 113.4384765625 493.9833984375 l s q 0 0 1 rg BT 79.00 495.32 Td (ITEM 9.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 493.9833984375 m 502.240234375 493.9833984375 l s q 0 0 1 rg BT 141.00 495.32 Td (CHANGES IN ) Tj ET Q q 0 0 1 rg BT 203.23 495.32 Td (AND DISAGREEMENTS ) Tj ET Q q 0 0 1 rg BT 313.05 495.32 Td (WITH ) Tj ET Q q 0 0 1 rg BT 341.09 495.32 Td (ACCOUNT) Tj ET Q q 0 0 1 rg BT 388.63 495.32 Td (ANTS ON ) Tj ET Q q 0 0 1 rg BT 433.63 495.32 Td (ACCOUNTING ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 483.9833984375 m 282.85546875 483.9833984375 l s q 0 0 1 rg BT 141.00 485.32 Td (AND FINANCIAL) Tj ET Q q 0 0 1 rg BT 218.68 485.32 Td ( DISCLOSURE) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 468.9833984375 m 120.66015625 468.9833984375 l s q 0 0 1 rg BT 79.00 470.32 Td (ITEM 9A.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 468.9833984375 m 284.9111328125 468.9833984375 l s q 0 0 1 rg BT 141.00 470.32 Td (CONTROLS ) Tj ET Q q 0 0 1 rg BT 195.73 470.32 Td (AND PROCEDURES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 453.9833984375 m 120.1083984375 453.9833984375 l s q 0 0 1 rg BT 79.00 455.32 Td (ITEM 9B.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 453.9833984375 m 245.7216796875 453.9833984375 l s q 0 0 1 rg BT 141.00 455.32 Td (OTHER INFORMA) Tj ET Q q 0 0 1 rg BT 221.84 455.32 Td (TION) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52 438.9833984375 m 88.3525390625 438.9833984375 l s q 0 0 1 rg BT 52.00 440.32 Td (P) Tj ET Q q 0 0 1 rg BT 56.64 440.32 Td (AR) Tj ET Q q 0 0 1 rg BT 69.93 440.32 Td (T) Tj ET Q q 0 0 1 rg BT 75.86 440.32 Td ( III) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.00 440.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.00 439.42 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 423.9833984375 m 118.4384765625 423.9833984375 l s q 0 0 1 rg BT 79.00 425.32 Td (ITEM 10.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 423.9833984375 m 462.5087890625 423.9833984375 l s q 0 0 1 rg BT 141.00 425.32 Td (DIRECT) Tj ET Q q 0 0 1 rg BT 176.93 425.32 Td (ORS, EXECUTIVE OFFICERS ) Tj ET Q q 0 0 1 rg BT 308.61 425.32 Td (AND CORPORA) Tj ET Q q 0 0 1 rg BT 378.91 425.32 Td (TE GOVERNANCE) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 408.9833984375 m 118.0673828125 408.9833984375 l s q 0 0 1 rg BT 79.00 410.32 Td (ITEM 1) Tj ET Q q 0 0 1 rg BT 110.57 410.32 Td (1.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 408.9833984375 m 276.830078125 408.9833984375 l s q 0 0 1 rg BT 141.00 410.32 Td (EXECUTIVE COMPENSA) Tj ET Q q 0 0 1 rg BT 252.95 410.32 Td (TION) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 393.9833984375 m 118.4384765625 393.9833984375 l s q 0 0 1 rg BT 79.00 395.32 Td (ITEM 12.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 393.9833984375 m 515.5263671875 393.9833984375 l s q 0 0 1 rg BT 141.00 395.32 Td (SECURITY) Tj ET Q q 0 0 1 rg BT 189.52 395.32 Td ( OWNERSHIP) Tj ET Q q 0 0 1 rg BT 249.98 395.32 Td ( OF CER) Tj ET Q q 0 0 1 rg BT 286.62 395.32 Td (T) Tj ET Q q 0 0 1 rg BT 291.92 395.32 Td (AIN BENEFICIAL) Tj ET Q q 0 0 1 rg BT 370.16 395.32 Td ( OWNERS ) Tj ET Q q 0 0 1 rg BT 416.83 395.32 Td (AND MANAGEMENT) Tj ET Q q 0 0 1 rg BT 513.03 395.32 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 383.9833984375 m 333.3193359375 383.9833984375 l s q 0 0 1 rg BT 141.00 385.32 Td (AND RELA) Tj ET Q q 0 0 1 rg BT 190.17 385.32 Td (TED ST) Tj ET Q q 0 0 1 rg BT 223.59 385.32 Td (OCKHOLDER MA) Tj ET Q q 0 0 1 rg BT 302.76 385.32 Td (TTERS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 368.9833984375 m 118.4384765625 368.9833984375 l s q 0 0 1 rg BT 79.00 370.32 Td (ITEM 13.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 368.9833984375 m 488.96875 368.9833984375 l s q 0 0 1 rg BT 141.00 370.32 Td (CER) Tj ET Q q 0 0 1 rg BT 159.85 370.32 Td (T) Tj ET Q q 0 0 1 rg BT 165.16 370.32 Td (AIN RELA) Tj ET Q q 0 0 1 rg BT 210.43 370.32 Td (TIONSHIPS ) Tj ET Q q 0 0 1 rg BT 263.50 370.32 Td (AND RELA) Tj ET Q q 0 0 1 rg BT 312.66 370.32 Td (TED ) Tj ET Q q 0 0 1 rg BT 334.42 370.32 Td (TRANSACTIONS ) Tj ET Q q 0 0 1 rg BT 412.48 370.32 Td (AND DIRECT) Tj ET Q q 0 0 1 rg BT 472.58 370.32 Td (OR ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 358.9833984375 m 217.103515625 358.9833984375 l s q 0 0 1 rg BT 141.00 360.32 Td (INDEPENDENCE) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 343.9833984375 m 118.4384765625 343.9833984375 l s q 0 0 1 rg BT 79.00 345.32 Td (ITEM 14.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 343.9833984375 m 357.826171875 343.9833984375 l s q 0 0 1 rg BT 141.00 345.32 Td (PRINCIP) Tj ET Q q 0 0 1 rg BT 178.43 345.32 Td (AL) Tj ET Q q 0 0 1 rg BT 191.39 345.32 Td ( ) Tj ET Q q 0 0 1 rg BT 193.33 345.32 Td (ACCOUNTING FEES ) Tj ET Q q 0 0 1 rg BT 287.23 345.32 Td (AND SER) Tj ET Q q 0 0 1 rg BT 328.93 345.32 Td (VICES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52 328.9833984375 m 88.82373046875 328.9833984375 l s q 0 0 1 rg BT 52.00 330.32 Td (P) Tj ET Q q 0 0 1 rg BT 56.64 330.32 Td (AR) Tj ET Q q 0 0 1 rg BT 69.93 330.32 Td (T) Tj ET Q q 0 0 1 rg BT 75.86 330.32 Td ( IV) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.00 330.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.00 329.42 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 313.9833984375 m 118.4384765625 313.9833984375 l s q 0 0 1 rg BT 79.00 315.32 Td (ITEM 15.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 313.9833984375 m 365.19921875 313.9833984375 l s q 0 0 1 rg BT 141.00 315.32 Td (EXHIBITS, FINANCIAL) Tj ET Q q 0 0 1 rg BT 245.07 315.32 Td ( ST) Tj ET Q q 0 0 1 rg BT 258.44 315.32 Td (A) Tj ET Q q 0 0 1 rg BT 264.55 315.32 Td (TEMENT) Tj ET Q q 0 0 1 rg BT 304.92 315.32 Td ( SCHEDULES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52 298.9833984375 m 113.1181640625 298.9833984375 l s q 0 0 1 rg BT 52.00 300.32 Td (SIGNA) Tj ET Q q 0 0 1 rg BT 81.45 300.32 Td (TURES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 553 693.0833984375 m 558 693.0833984375 l s q 0 0 1 rg BT 553.00 694.42 Td (4) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 548 678.0833984375 m 558 678.0833984375 l s q 0 0 1 rg BT 548.00 679.42 Td (18) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 548 663.0833984375 m 558 663.0833984375 l s q 0 0 1 rg BT 548.00 664.42 Td (33) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 548 648.0833984375 m 558 648.0833984375 l s q 0 0 1 rg BT 548.00 649.42 Td (33) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 548 633.0833984375 m 558 633.0833984375 l s q 0 0 1 rg BT 548.00 634.42 Td (35) Tj ET Q 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 642.10 Td (In addition, we include forward-looking statements under the "Our Strategy" and "Future ) Tj ET Q q 0 0 0 rg BT 432.92 642.10 Td (T) Tj ET Q q 0 0 0 rg BT 438.68 642.10 Td (rends" headings set forth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (below in "Business" and under the "Bookings and Book-to-Bill Ratio" heading set forth below in "Management's Discussion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (and ) Tj ET Q q 0 0 0 rg BT 66.39 618.10 Td (Analysis of Financial Condition and Results of Operations.") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 598.10 Td (Y) Tj ET Q q 0 0 0 rg BT 80.22 598.10 Td (ou can identify these and other forward-looking statements by the use of the words such as "may) Tj ET Q q 0 0 0 rg BT 466.33 598.10 Td (," "will," "could," ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td ("would," "should," "expects," "plans," "anticipates," "estimates," "intends," "potential," "projected," "continue," "our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (observation," or the negative of such terms, or other comparable terminology) Tj ET Q q 0 0 0 rg BT 357.78 574.10 Td (. Forward-looking statements also include the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (assumptions underlying or relating to any of the foregoing statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 542.10 Td (Our actual results could dif) Tj ET Q q 0 0 0 rg BT 182.68 542.10 Td (fer materially from those anticipated in these forward-looking statements as a result of various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (factors, including those set forth below in "Business," "Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 394.83 530.10 Td (Analysis of Financial Condition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (Results of Operations" and under the heading "Risk Factors." ) Tj ET Q q 0 0 0 rg BT 297.21 518.10 Td (All forward-looking statements included in this document are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.10 Td (based on information available to us on the date hereof. ) Tj ET Q q 0 0 0 rg BT 274.47 506.10 Td (W) Tj ET Q q 0 0 0 rg BT 283.11 506.10 Td (e undertake no obligation to update these forward-looking statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (as a result of events or circumstances or to reflect the occurrence of unanticipated events or non-occurrence of anticipated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.10 Td (events, except to the extent required by law) Tj ET Q q 0 0 0 rg BT 223.17 482.10 Td (.) Tj ET Q endstream endobj 13 0 obj <>] /Rotate 0 /Contents 14 0 R>> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.80 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 295.17 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 309.26 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 315.75 742.25 Td ( I) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (ITEM 1.BUSINESS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (GENERAL) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (Business Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 658.25 Td (Our fiscal year ends on the Saturday closest to September30. Fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.25 658.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.25 658.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.25 658.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.25 658.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.69 658.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.69 658.25 Td ( ended on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.07 658.25 Td (October1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.77 658.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (October3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.71 646.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.65 646.25 Td (September27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.91 646.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 219.57 646.25 Td (, and are referred to in this annual report as fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.37 646.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.37 646.25 Td (, fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.53 646.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.53 646.25 Td ( and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.12 646.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.12 646.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (for convenience. Fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.12 634.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.12 634.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.55 634.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.55 634.25 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.99 634.25 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.99 634.25 Td ( weeks and fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.78 634.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.78 634.25 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.21 634.25 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.21 634.25 Td (weeks.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 614.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 614.25 Td (e are one of the world's leading providers of lasers and laser) Tj ET Q q 0 0 0 rg BT 322.21 614.25 Td (-based technology in a broad range of scientific, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.25 Td (commercial and industrial applications. ) Tj ET Q q 0 0 0 rg BT 210.05 602.25 Td (W) Tj ET Q q 0 0 0 rg BT 218.69 602.25 Td (e design, manufacture, service and market lasers and related accessories for a diverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.25 Td (group of customers. Since inception in 1966, we have grown through internal expansion and through strategic acquisitions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (complementary businesses, technologies, intellectual property) Tj ET Q q 0 0 0 rg BT 297.61 578.25 Td (, manufacturing processes and product of) Tj ET Q q 0 0 0 rg BT 462.38 578.25 Td (ferings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 558.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 558.25 Td (e are or) Tj ET Q q 0 0 0 rg BT 112.43 558.25 Td (ganized into two operating segments: Specialty Lasers and Systems \("SLS"\) and Commercial Lasers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.25 Td (Components \("CLC"\). ) Tj ET Q q 0 0 0 rg BT 142.15 546.25 Td (This segmentation reflects the go-to-market strategies for various products and markets. ) Tj ET Q q 0 0 0 rg BT 496.30 546.25 Td (While both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.25 Td (segments deliver cost-ef) Tj ET Q q 0 0 0 rg BT 147.01 534.25 Td (fective photonics solutions, SLS develops and manufactures configurable, advanced performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.25 Td (products lar) Tj ET Q q 0 0 0 rg BT 97.30 522.25 Td (gely serving the microelectronics, scientific research and government programs and original equipment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.25 Td (manufacturer \("OEM"\) components and instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 314.85 510.25 Td (The size and complexity of many of the SLS products require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.25 Td (service to be performed at the customer site by factory-trained field service engineers. CLC focuses on higher volume products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.25 Td (that are of) Tj ET Q q 0 0 0 rg BT 90.35 486.25 Td (fered in set configurations. ) Tj ET Q q 0 0 0 rg BT 199.86 486.25 Td (The product architectures are designed for easy exchange at the point of use such that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (substantially all product service and repairs are based upon advanced replacement and depot \(i.e.,factory\) repair) Tj ET Q q 0 0 0 rg BT 499.25 474.25 Td (. CLC's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (primary markets include materials processing, OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 442.25 Td (Income from operations is the measure of profit and loss that our chief operating decision maker \("CODM"\) uses to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (assess performance and make decisions. Income from operations represents the sales less the cost of sales and direct operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (expenses incurred within the operating segments as well as allocated expenses such as shared sales and manufacturing costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 406.25 Td (e do not allocate to our operating segments certain operating expenses, which we manage separately at the corporate level. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (These unallocated costs include stock-based compensation and corporate functions \(certain advanced research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (development, management, finance, legal and human resources\) and are included in Corporate and other) Tj ET Q q 0 0 0 rg BT 467.62 382.25 Td (. Management does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (consider unallocated Corporate and other costs in its measurement of segment performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 350.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 350.25 Td (e were originally incorporated in California on May26, 1966 and reincorporated in Delaware on October1, 1990. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.25 Td (common stock is listed on the NASDAQ Global Select Market and we are a member of the Standard & Poor's SmallCap 600 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.25 Td (Index and the Russell 2000 Index.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 306.25 Td (Additional information about Coherent,Inc. \(referred to herein as the Company) Tj ET Q q 0 0 0 rg BT 392.14 306.25 Td (, we, our) Tj ET Q q 0 0 0 rg BT 426.73 306.25 Td (, or Coherent\) is available on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.25 Td (web site at www) Tj ET Q q 0 0 0 rg BT 116.28 294.25 Td (.coherent.com. ) Tj ET Q q 0 0 0 rg BT 177.74 294.25 Td (W) Tj ET Q q 0 0 0 rg BT 186.38 294.25 Td (e make available, free of char) Tj ET Q q 0 0 0 rg BT 304.45 294.25 Td (ge on our web site, access to our annual report on Form10-K, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.25 Td (our quarterly reports on Form10-Q, our current reports on Form8-K and amendments to those reports filed or furnished ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.25 Td (pursuant to Section13\(a\) or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 297.15 270.25 Td (Act of 1934, as amended \(the "Exchange ) Tj ET Q q 0 0 0 rg BT 462.85 270.25 Td (Act"\), as soon as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.25 Td (reasonably practicable after we file or furnish them electronically with the Securities and Exchange Commission \("SEC"\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.25 Td (Information contained on our web site is not part of this annual report or our other filings with the SEC. ) Tj ET Q q 0 0 0 rg BT 466.87 246.25 Td (Any product, product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.25 Td (name, process, or technology described in these materials is the property of Coherent.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 208.85 Td (RECENT) Tj ET Q q 0 0 0 rg BT 91.49 208.85 Td ( EVENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 188.85 Td (On November7, 2016, we completed our previously announced acquisition of Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 437.85 188.85 Td (T) Tj ET Q q 0 0 0 rg BT 443.26 188.85 Td (echnologies Inc. \("Rofin"\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 176.85 Td (pursuant to the Mer) Tj ET Q q 0 0 0 rg BT 128.41 176.85 Td (ger ) Tj ET Q q 0 0 0 rg BT 143.13 176.85 Td (Agreement dated March 16, 2016. Rofin is one of the world's leading developers and manufacturers of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 164.85 Td (high-performance industrial laser sources and laser) Tj ET Q q 0 0 0 rg BT 253.89 164.85 Td (-based solutions and components. ) Tj ET Q q 0 0 0 rg BT 390.82 164.85 Td (As a condition of the acquisition, we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 152.85 Td (required to divest ourselves of Rofin) Tj ET Q q 0 0 0 rg BT 199.14 152.85 Td (s low power CO2 laser business based in Hull, United Kingdom, and will report this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 140.85 Td (business separately as a discontinued operation until it is divested. ) Tj ET Q q 0 0 0 rg BT 317.27 140.85 Td (The acquisition was an all-cash transaction at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 128.85 Td ($32.50 per share of Rofin common stock. ) Tj ET Q q 0 0 0 rg BT 218.40 128.85 Td (The aggregate consideration paid by us to the former Rofin stockholders was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 116.85 Td (approximately $904.5 million, excluding related transaction fees and expenses. ) Tj ET Q q 0 0 0 rg BT 368.61 116.85 Td (W) Tj ET Q q 0 0 0 rg BT 377.25 116.85 Td (e also paid $15.3 million due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 104.85 Td (cancellation of options held by employees of Rofin. ) Tj ET Q q 0 0 0 rg BT 259.49 104.85 Td (W) Tj ET Q q 0 0 0 rg BT 268.13 104.85 Td (e funded the payment of the aggregate consideration with a combination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 92.85 Td (of our available cash on hand and the proceeds from the Euro ) Tj ET Q q 0 0 0 rg BT 298.06 92.85 Td (T) Tj ET Q q 0 0 0 rg BT 303.47 92.85 Td (erm Loan described below) Tj ET Q q 0 0 0 rg BT 409.17 92.85 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 72.85 Td (As a result of the acquisition of Rofin, and subsequent to fiscal 2016 year) Tj ET Q q 0 0 0 rg BT 365.62 72.85 Td (-end, we announced that in the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 60.85 Td (fiscal 2017 we will reor) Tj ET Q q 0 0 0 rg BT 144.79 60.85 Td (ganize our existing two segments into two new reporting segments for the combined company) Tj ET Q q 0 0 0 rg BT 521.00 60.85 Td (, OEM ) Tj ET Q endstream endobj 15 0 obj <>] /Rotate 0 /Contents 16 0 R>> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Laser Systems and Industrial Lasers and Systems. ) Tj ET Q q 0 0 0 rg BT 251.64 742.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 300.97 742.10 Td (, our segment information will be restated retroactively in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (first quarter of fiscal 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 710.10 Td (On November7, 2016, we entered into a Credit ) Tj ET Q q 0 0 0 rg BT 264.45 710.10 Td (Agreement \(the Credit ) Tj ET Q q 0 0 0 rg BT 360.80 710.10 Td (Agreement\) with Barclays Bank PLC, Bank of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (America, N.A., and ) Tj ET Q q 0 0 0 rg BT 130.63 698.10 Td (The Bank of ) Tj ET Q q 0 0 0 rg BT 182.93 698.10 Td (T) Tj ET Q q 0 0 0 rg BT 188.34 698.10 Td (okyo-Mitsubishi UFJ, Ltd. ) Tj ET Q q 0 0 0 rg BT 297.34 698.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 342.33 698.10 Td (Agreement provided for a 670.0 million Euro senior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (secured term loan facility and a $100.0 million senior secured revolving credit facility) Tj ET Q q 0 0 0 rg BT 393.40 686.10 Td (. On November7, 2016, the Euro ) Tj ET Q q 0 0 0 rg BT 529.31 686.10 Td (T) Tj ET Q q 0 0 0 rg BT 534.72 686.10 Td (erm ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (Loan was drawn in full and its proceeds were used to finance the acquisition of Rofin and pay related fees and expenses. ) Tj ET Q q 0 0 0 rg BT 534.01 674.10 Td (Also, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (on November7, 2016, we used 10.0 million Euro of the capacity under the revolving credit facility for the issuance of a letter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (of credit.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (INDUSTR) Tj ET Q q 0 0 0 rg BT 94.66 630.10 Td (Y) Tj ET Q q 0 0 0 rg BT 101.51 630.10 Td ( BACKGROUND) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 610.10 Td (The word "laser" is an acronym for "light amplification by stimulated emission of radiation." ) Tj ET Q q 0 0 0 rg BT 447.75 610.10 Td (A) Tj ET Q q 0 0 0 rg BT 454.42 610.10 Td ( laser emits an intense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (coherent beam of light with some unique and highly useful properties. Most importantly) Tj ET Q q 0 0 0 rg BT 402.34 598.10 Td (, a laser is orders of magnitude brighter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (than any lamp. ) Tj ET Q q 0 0 0 rg BT 111.10 586.10 Td (As a result of its coherence, the beam can be focused to a very small and intense spot, useful for applications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (requiring very high power densities including cutting and other materials processing procedures. ) Tj ET Q q 0 0 0 rg BT 438.33 574.10 Td (The laser's high spatial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (resolution is also useful for microscopic imaging and inspection applications. Laser light can be monochromaticall of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (beam ener) Tj ET Q q 0 0 0 rg BT 91.18 550.10 Td (gy is confined to a narrow wavelength band. Some lasers can be used to create ultrafast outputa series of pulses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (with pulse durations as short as attoseconds \(i.e.,10) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 257.47 541.73 Td (-18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.40 538.10 Td ( seconds\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 518.10 Td (There are many types of lasers and one way of classifying them is by the material or medium used to create the lasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.10 Td (action. ) Tj ET Q q 0 0 0 rg BT 79.25 506.10 Td (This can be in the form of a gas, liquid, semiconductor) Tj ET Q q 0 0 0 rg BT 297.69 506.10 Td (, solid state crystal or fiber) Tj ET Q q 0 0 0 rg BT 403.77 506.10 Td (. Lasers can also be classified by their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (output wavelength: ultraviolet, visible, infrared or wavelength tunable. ) Tj ET Q q 0 0 0 rg BT 335.01 494.10 Td (W) Tj ET Q q 0 0 0 rg BT 343.65 494.10 Td (e manufacture all of these laser types. ) Tj ET Q q 0 0 0 rg BT 496.74 494.10 Td (There are also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.10 Td (many options in terms of pulsed output versus continuous wave, pulse duration, output power) Tj ET Q q 0 0 0 rg BT 424.27 482.10 Td (, beam dimensions, etc. In fact, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 470.10 Td (each application has its specific requirements in terms of laser performance. ) Tj ET Q q 0 0 0 rg BT 356.36 470.10 Td (The broad technical depth at Coherent enables us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.10 Td (to of) Tj ET Q q 0 0 0 rg BT 68.43 458.10 Td (fer a diverse set of product lines characterized by lasers tar) Tj ET Q q 0 0 0 rg BT 303.13 458.10 Td (geted at growth opportunities and key applications. In all cases, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.10 Td (we aim to be the supplier of choice by of) Tj ET Q q 0 0 0 rg BT 213.38 446.10 Td (fering a high-value combination of superior technical performance and high reliability) Tj ET Q q 0 0 0 rg BT 557.60 446.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 426.10 Td (Photonics has taken its place alongside electronics as a critical enabling technology for the twenty-first century) Tj ET Q q 0 0 0 rg BT 517.37 426.10 Td (. Photonics ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (based solutions are entrenched in a broad array of industries that include industrial automation, textile processing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 Td (microelectronics, flat panel displays and medical diagnostics, with adoption continuing in ever more diverse applications. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (Growth in these applications stems from two sources. First, there are many applications where the laser is displacing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.10 Td (conventional technology because it can do the job faster) Tj ET Q q 0 0 0 rg BT 273.96 378.10 Td (, better or more economically) Tj ET Q q 0 0 0 rg BT 391.32 378.10 Td (. Second, there are new applications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (where the laser is the enabling tool that makes the work possible \(e.g.,the production of sub 50 micron microvias\); these lasers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (are used in the manufacturing of high density printed circuit boards \("PCBs"\) found in the latest smart phones and tablet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (computers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 322.10 Td (Key laser applications include: semiconductor inspection; manufacturing of advanced PCBs; flat panel display ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (manufacturing; solar cell production; medical and bio-instrumentation; materials processing; metals cutting and welding; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (industrial process and quality control; marking; imaging and printing; graphic arts and display; and, research and development. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (For example, ultraviolet \(UV\) lasers are enabling the move towards miniaturization, which drives innovation and growth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (many markets. In addition, the advent of industrial grade ultrafast lasers continues to open up new applications for laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (processing.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (OUR STRA) Tj ET Q q 0 0 0 rg BT 100.65 242.10 Td (TEGY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 222.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 222.10 Td (e strive to develop innovative and proprietary products and solutions that meet the needs of our customers and that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.10 Td (based on our core expertise in lasers and optical technologies. In pursuit of our strategy) Tj ET Q q 0 0 0 rg BT 398.41 210.10 Td (, we intend to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 189.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 189.10 Td (Leverage our) Tj ET Q q 0 0 0 rg BT 160.74 189.10 Td ( technology portfolio and application engineering to lead the pr) Tj ET Q q 0 0 0 rg BT 429.73 189.10 Td (oliferation of photonics into ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 177.10 Td (br) Tj ET Q q 0 0 0 rg BT 113.82 177.10 Td (oader) Tj ET Q q 0 0 0 rg BT 138.08 177.10 Td ( markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.57 177.10 Td (W) Tj ET Q q 0 0 0 rg BT 194.21 177.10 Td (e will continue to identify opportunities in which our technology portfolio and application ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 165.10 Td (engineering can be used to of) Tj ET Q q 0 0 0 rg BT 221.28 165.10 Td (fer innovative solutions and gain access to new markets. ) Tj ET Q q 0 0 0 rg BT 448.81 165.10 Td (W) Tj ET Q q 0 0 0 rg BT 457.45 165.10 Td (e plan to utilize our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 153.10 Td (expertise to increase our market share in the mid to high power material processing applications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 132.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 132.10 Td (Optimize our) Tj ET Q q 0 0 0 rg BT 160.75 132.10 Td ( leadership position in existing markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.71 132.10 Td (There are a number of markets where we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 120.10 Td (historically been at the forefront of technological development and product deployment and from which we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 108.10 Td (derived a substantial portion of our revenues. ) Tj ET Q q 0 0 0 rg BT 287.10 108.10 Td (W) Tj ET Q q 0 0 0 rg BT 295.74 108.10 Td (e plan to optimize our financial returns from these markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 87.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 87.10 Td (Maintain and develop additional str) Tj ET Q q 0 0 0 rg BT 257.18 87.10 Td (ong collaborative customer) Tj ET Q q 0 0 0 rg BT 372.53 87.10 Td ( and industry r) Tj ET Q q 0 0 0 rg BT 436.53 87.10 Td (elationships) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.11 87.10 Td (W) Tj ET Q q 0 0 0 rg BT 505.74 87.10 Td (e believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 75.10 Td (the Coherent brand name and reputation for product quality) Tj ET Q q 0 0 0 rg BT 341.61 75.10 Td (, technical performance and customer satisfaction will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 63.10 Td (help us to further develop our loyal customer base. ) Tj ET Q q 0 0 0 rg BT 309.32 63.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.96 63.10 Td (e plan to maintain our current customer relationships and ) Tj ET Q endstream endobj 17 0 obj <>] /Rotate 0 /Contents 18 0 R>> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 742.10 Td (develop new ones with customers who are industry leaders and work together with these customers to design and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 730.10 Td (develop innovative product systems and solutions as they develop new technologies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 709.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 709.10 Td (Develop and acquir) Tj ET Q q 0 0 0 rg BT 187.16 709.10 Td (e new technologies and market shar) Tj ET Q q 0 0 0 rg BT 339.47 709.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.91 709.10 Td (W) Tj ET Q q 0 0 0 rg BT 362.54 709.10 Td (e will continue to enhance our market position ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 697.10 Td (through our existing technologies and develop new technologies through our internal research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 685.10 Td (ef) Tj ET Q q 0 0 0 rg BT 111.59 685.10 Td (forts, as well as through the acquisition of additional complementary technologies, intellectual property) Tj ET Q q 0 0 0 rg BT 524.71 685.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 673.10 Td (manufacturing processes and product of) Tj ET Q q 0 0 0 rg BT 263.77 673.10 Td (ferings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 652.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 652.10 Td (Str) Tj ET Q q 0 0 0 rg BT 117.15 652.10 Td (eamline our) Tj ET Q q 0 0 0 rg BT 167.79 652.10 Td ( manufacturing structur) Tj ET Q q 0 0 0 rg BT 271.50 652.10 Td (e and impr) Tj ET Q q 0 0 0 rg BT 317.98 652.10 Td (ove our) Tj ET Q q 0 0 0 rg BT 349.74 652.10 Td ( cost structur) Tj ET Q q 0 0 0 rg BT 406.21 652.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 652.10 Td (W) Tj ET Q q 0 0 0 rg BT 429.29 652.10 Td (e will focus on optimizing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 640.10 Td (mix of products that we manufacture internally and externally) Tj ET Q q 0 0 0 rg BT 351.04 640.10 Td (. ) Tj ET Q q 0 0 0 rg BT 355.86 640.10 Td (W) Tj ET Q q 0 0 0 rg BT 364.50 640.10 Td (e will utilize vertical integration where our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 628.10 Td (internal manufacturing process is considered proprietary and seek to leverage external sources when the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 616.10 Td (capabilities and cost structure are well developed and on a path towards commoditization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 595.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 595.10 Td (Focus on long-term impr) Tj ET Q q 0 0 0 rg BT 210.20 595.10 Td (ovement of adjusted EBITDA, in dollars and as a per) Tj ET Q q 0 0 0 rg BT 436.71 595.10 Td (centage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.07 595.10 Td (W) Tj ET Q q 0 0 0 rg BT 536.71 595.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 583.10 Td (define adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 203.42 583.10 Td ( as operating income adjusted for depreciation, amortization, stock-based compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 571.10 Td (expense, major restructuring costs and certain other non-operating income and expense items. Key initiatives to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 559.10 Td (reach our goals for EBITDA) Tj ET Q q 0 0 0 rg BT 217.85 559.10 Td ( improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 381.15 559.10 Td (Asian manufacturing locations, rationalizing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 547.10 Td (our supply chain and continued leveraging of our infrastructure.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 527.10 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 93.70 527.10 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 507.10 Td (Our products address a broad range of applications that we group into the following markets: Microelectronics, Materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 495.10 Td (Processing, OEM Components and Instrumentation and Scientific Research and Government Programs.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 473.53505859375 m 121.2646484375 473.53505859375 l s q 0 0 0 rg BT 50.00 475.10 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 475.10 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 475.10 Td (onics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 455.10 Td (Nowhere is the trend towards miniaturization more prevalent than in the Microelectronics market where smart phones, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 443.10 Td (tablets, personal computers \("PC's"\), televisions \("TV's"\) and "wearables" are driving advances in displays, integrated circuits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 431.10 Td (and PCBs. In response to market demands and expectations, semiconductor and device manufacturers are continually seeking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 419.10 Td (to improve their process and design technologies in order to manufacture smaller) Tj ET Q q 0 0 0 rg BT 373.67 419.10 Td (, more powerful and more reliable devices at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 407.10 Td (lower cost. New laser applications and new laser technologies are a key element in delivering higher resolution and higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 395.10 Td (precision at lower manufacturing cost.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 375.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 375.10 Td (e support three major markets in the microelectronics industry: \(1\)flat panel display \("FPD"\) manufacturing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 363.10 Td (\(2\)advanced packaging and interconnects \("API"\) and \(3\)semiconductor front-end \("SEMI"\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 343.10 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 343.10 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 343.10 Td (onicsflat panel display manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 323.10 Td (The high-volume consumer market is driving the production of FPDs in applications such as mobile phones, tablets, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 311.10 Td (laptop computers, ) Tj ET Q q 0 0 0 rg BT 123.97 311.10 Td (TVs and wearables. ) Tj ET Q q 0 0 0 rg BT 205.42 311.10 Td (There are several types of established and emer) Tj ET Q q 0 0 0 rg BT 394.88 311.10 Td (ging displays based on quite dif) Tj ET Q q 0 0 0 rg BT 521.63 311.10 Td (ferent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 299.10 Td (technologies, including liquid crystal \("LCD"\) and or) Tj ET Q q 0 0 0 rg BT 263.22 299.10 Td (ganic light emitting diodes \("OLED"\). Each of these technologies utilize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 287.10 Td (laser applications due to the fact that lasers enable higher process speed, better yield, improved battery life, lower cost and/or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 275.10 Td (superior display brightness and resolution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 255.10 Td (Several display types require a high-density pattern of silicon thin film transistors \("TFT) Tj ET Q q 0 0 0 rg BT 427.31 255.10 Td (s"\). If this silicon is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 243.10 Td (polycrystalline as opposed to amorphous, the display performance is greatly enhanced. In the past, these polysilicon layers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 231.10 Td (could only be produced on expensive special glass at high temperatures. However) Tj ET Q q 0 0 0 rg BT 377.28 231.10 Td (, excimer) Tj ET Q q 0 0 0 rg BT 414.28 231.10 Td (-based processes, such as excimer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 219.10 Td (laser annealing \("ELA"\) have allowed high-volume production of low-temperature polysilicon \("L) Tj ET Q q 0 0 0 rg BT 443.43 219.10 Td (TPS"\) on conventional glass ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 207.10 Td (substrates as well as flexible displays on plastic substrates. Our excimer lasers provide a unique solution for L) Tj ET Q q 0 0 0 rg BT 488.98 207.10 Td (TPS because they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 195.10 Td (are the only industrial-grade excimer lasers optimized for this application. ) Tj ET Q q 0 0 0 rg BT 348.33 195.10 Td (The current state-of-the-art product for this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 183.10 Td (application is our excimer ) Tj ET Q q 0 0 0 rg BT 156.45 183.10 Td (VYPER laser) Tj ET Q q 0 0 0 rg BT 210.21 183.10 Td (, which delivers over 1000W) Tj ET Q q 0 0 0 rg BT 325.83 183.10 Td ( of power) Tj ET Q q 0 0 0 rg BT 363.75 183.10 Td (, enabling customers to scale to current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 171.10 Td (Generation 5.5 & 6 substrates all the way up to Generation 8 sizes. ) Tj ET Q q 0 0 0 rg BT 319.47 171.10 Td (These systems are integral to the manufacturing process on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 159.10 Td (all leading L) Tj ET Q q 0 0 0 rg BT 99.62 159.10 Td (TPS-based smart phone displays, with the highest commercially available pixel densities of greater than 300 pixels ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 147.10 Td (per inch \(ppi\), with the current trends going to even higher ppi \(>500 ppi\) for high end smart phones, and hold the potential for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 135.10 Td (deployment in tablet display and OLED ) Tj ET Q q 0 0 0 rg BT 212.01 135.10 Td (TV) Tj ET Q q 0 0 0 rg BT 225.16 135.10 Td ( manufacturing. Excimer based L) Tj ET Q q 0 0 0 rg BT 357.80 135.10 Td (TPS is also enabling a new generation of flexible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 123.10 Td (OLED displays which have already seen some implementation in leading smart phones and wearables and are poised for rapid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 111.10 Td (growth in the near future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 91.10 Td (Our ) Tj ET Q q 0 0 0 rg BT 91.50 91.10 Td (A) Tj ET Q q 0 0 0 rg BT 97.43 91.10 Td (VIA, Rapid, ) Tj ET Q q 0 0 0 rg BT 148.91 91.10 Td (T) Tj ET Q q 0 0 0 rg BT 154.32 91.10 Td (alisker) Tj ET Q q 0 0 0 rg BT 180.58 91.10 Td (, Monaco and DIAMOND CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 302.51 89.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.76 91.10 Td ( and CO lasers are also used in other production processes for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 79.10 Td (FPDs. ) Tj ET Q q 0 0 0 rg BT 77.06 79.10 Td (These processes include drilling, cutting, patterning, marking and yield improvement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 59.10 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 59.10 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 59.10 Td (onicsadvanced packaging and inter) Tj ET Q q 0 0 0 rg BT 259.72 59.10 Td (connects) Tj ET Q endstream endobj 19 0 obj <>] /Rotate 0 /Contents 20 0 R>> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (After a wafer is patterned, there are then a host of other processes, referred to as back-end processing, which finally result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (in a packaged encapsulated silicon chip. Ultimately) Tj ET Q q 0 0 0 rg BT 255.11 730.10 Td (, these chips are then assembled into finished products. ) Tj ET Q q 0 0 0 rg BT 477.38 730.10 Td (The advent of high-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (speed logic and high-memory content devices has caused chip manufacturers to look for alternative technologies to improve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (performance and lower process costs. In terms of materials, this search includes new types of materials, such as low-k and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (thinner silicon. Our ) Tj ET Q q 0 0 0 rg BT 129.99 694.10 Td (A) Tj ET Q q 0 0 0 rg BT 135.92 694.10 Td (VIA, Rapid, ) Tj ET Q q 0 0 0 rg BT 187.40 694.10 Td (T) Tj ET Q q 0 0 0 rg BT 192.81 694.10 Td (alisker) Tj ET Q q 0 0 0 rg BT 219.07 694.10 Td (, Monaco and Matrix lasers provide economical methods of cutting and scribing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (these wafers while delivering higher yields than traditional mechanical methods. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 662.10 Td (There are similar trends in chip packaging and PCB manufacturing requiring more compact packaging and denser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (interconnects. In many cases, lasers present enabling technologies. For instance, lasers are now the only economically practical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (method for drilling microvias in chip substrates and in both rigid and flexible PCBs. ) Tj ET Q q 0 0 0 rg BT 388.94 638.10 Td (These microvias are tiny interconnects that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (are essential for enabling high-density circuitry commonly used in smart phones, tablets and advanced computing systems. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (DIAMOND CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 114.72 612.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.97 614.10 Td ( and ) Tj ET Q q 0 0 0 rg BT 136.86 614.10 Td (A) Tj ET Q q 0 0 0 rg BT 142.79 614.10 Td (VIA) Tj ET Q q 0 0 0 rg BT 160.01 614.10 Td ( diode pumped solid state \("DPSS"\) lasers are the lasers of choice in this application. ) Tj ET Q q 0 0 0 rg BT 501.81 614.10 Td (The ability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (these lasers to operate at very high repetition rates translates into faster drilling speeds and increased throughput in microvia ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (processing applications. In addition, multi-layer circuit boards require more flexible production methods than conventional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (printing technologies can of) Tj ET Q q 0 0 0 rg BT 161.73 578.10 Td (fer) Tj ET Q q 0 0 0 rg BT 172.43 578.10 Td (, which has led to widespread adoption of laser direct imaging \("LDI"\). Our Paladin laser is used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (for this application.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 546.10 Td (Lasers have also become a valuable tool in high-brightness \("HB"\) light-emitting diode \("LED"\) manufacturing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (improving LED performance and yield. LEDs have widespread adoption as the light source in all categories of LCD displays, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (from phones all the way to full size ) Tj ET Q q 0 0 0 rg BT 193.67 522.10 Td (TVs and moving into general lighting. Our lasers are used in back-end processing of HB-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (LEDs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 490.10 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 490.10 Td (onicssemiconductor) Tj ET Q q 0 0 0 rg BT 193.85 490.10 Td ( fr) Tj ET Q q 0 0 0 rg BT 203.94 490.10 Td (ont-end) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 470.10 Td (The term "front-end" refers to the production of semiconductor devices which occurs prior to packaging.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 450.10 Td (As semiconductor device geometries decrease in size, devices become increasingly susceptible to smaller defects during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (each phase of the manufacturing process and these defects can negatively impact yield. One of the semiconductor industry's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (responses to the increasing vulnerability of semiconductor devices to smaller defects has been to use defect detection and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (inspection techniques that are closely linked to the manufacturing process. For example, automated laser) Tj ET Q q 0 0 0 rg BT 468.28 414.10 Td (-based inspection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 Td (systems are now used to detect and locate defects as small as 0.01 micron, which may not be observable by conventional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (optical microscopes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 370.10 Td (Detecting the presence of defects is only the first step in preventing their recurrence. ) Tj ET Q q 0 0 0 rg BT 413.59 370.10 Td (After detection, defects must be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (examined in order to identify their size, shape and the process step in which the defect occurred. ) Tj ET Q q 0 0 0 rg BT 437.18 358.10 Td (This examination is called ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (defect classification. Identification of the sources of defects in the lengthy and complex semiconductor manufacturing process ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (has become essential for maintaining high yield production. Semiconductor manufacturing has become an around-the-clock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (operation and it is important for products used for inspection, measurement and testing to be reliable and to have long lifetimes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (Our ) Tj ET Q q 0 0 0 rg BT 67.50 310.10 Td (Azure, Paladin and Excimer lasers are used to detect and characterize defects in semiconductor chips.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 288.53505859375 m 138.4130859375 288.53505859375 l s q 0 0 0 rg BT 50.00 290.10 Td (Materials pr) Tj ET Q q 0 0 0 rg BT 103.41 290.10 Td (ocessing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 270.10 Td (Lasers are widely accepted today in many important industrial manufacturing applications including cutting, welding, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (joining, drilling, perforating, and marking of metals and nonmetals. ) Tj ET Q q 0 0 0 rg BT 322.26 258.10 Td (W) Tj ET Q q 0 0 0 rg BT 330.90 258.10 Td (e supply high-power lasers for metal processing and low-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.10 Td (to-medium power lasers for laser marking, nonmetals processing and precision micromachining.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 226.10 Td (Our high power industrial laser systems are used for cutting, welding, cladding and hardening of metals, as well as other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (materials processing applications. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 194.10 Td (Our Semiconductor business provides higher power arrays with powers in excess of 50 kilowatts through proprietary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (cooling and stacking technology) Tj ET Q q 0 0 0 rg BT 179.04 182.10 Td (. ) Tj ET Q q 0 0 0 rg BT 183.86 182.10 Td (This unique technology provides the engine for both our Highlight direct diode systems as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (well as our Highlight multi-kilowatt class fiber lasers. Our dif) Tj ET Q q 0 0 0 rg BT 296.99 170.10 Td (ferentiated fiber laser design of) Tj ET Q q 0 0 0 rg BT 421.75 170.10 Td (fers our customers a higher level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (of integration and additional options for product serviceability) Tj ET Q q 0 0 0 rg BT 298.45 158.10 Td (. Our fiber lasers are used for metal cutting, cladding, welding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (and additive manufacturing applications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 126.10 Td (Complementing our high power solid state lasers is our industry leading DIAMOND E1000 CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 456.62 124.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.87 126.10 Td ( laser) Tj ET Q q 0 0 0 rg BT 480.70 126.10 Td (. ) Tj ET Q q 0 0 0 rg BT 485.52 126.10 Td (This laser remains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (in high demand due to its high power) Tj ET Q q 0 0 0 rg BT 198.75 114.10 Td (, small size and completely sealed designall ideal for materials processing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.54 94.10 Td (ith the broadest product portfolio in the laser industry) Tj ET Q q 0 0 0 rg BT 294.73 94.10 Td (, we of) Tj ET Q q 0 0 0 rg BT 322.04 94.10 Td (fer solutions for almost any application on any material to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (our customers. Combining the high power Direct Diode, Fiber and CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 332.73 80.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.98 82.10 Td ( products with our MET) Tj ET Q q 0 0 0 rg BT 431.83 82.10 Td (A) Tj ET Q q 0 0 0 rg BT 438.50 82.10 Td ( flatbed cutting tool provides a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (strong, compelling four) Tj ET Q q 0 0 0 rg BT 143.95 70.10 Td (-pronged approach to meeting the needs of our diverse high power materials processing customers. ) Tj ET Q q 0 0 0 rg BT 542.26 70.10 Td (W) Tj ET Q q 0 0 0 rg BT 550.90 70.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (are vertically integrated with world class diode and active fiber manufacturing, which makes us very well positioned to succeed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (in both the near and long term in the high power fiber laser market. ) Tj ET Q endstream endobj 21 0 obj <>] /Rotate 0 /Contents 22 0 R>> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 742.10 Td (e also participate in the low to medium power area, including such applications as the cutting, drilling and joining of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (host of materials using our DIAMOND CO and CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 257.20 728.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.45 730.10 Td ( lasers; Highlight fiber array product \("F) Tj ET Q q 0 0 0 rg BT 421.53 730.10 Td (AP"\) semiconductor lasers in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (OEM opportunities and direct end user applications with MET) Tj ET Q q 0 0 0 rg BT 299.70 718.10 Td (A) Tj ET Q q 0 0 0 rg BT 306.37 718.10 Td ( cutting tools; applications including cutting, perforating and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (scoring of paper) Tj ET Q q 0 0 0 rg BT 114.58 706.10 Td (, thin metals and packaging materials; and various cutting and patterning applications in the textile, wood and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (sign industries. In the specific area of textiles and clothing, our DIAMOND lasers service older applications, such as cutting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (complex shapes in leather for footwear) Tj ET Q q 0 0 0 rg BT 205.37 682.10 Td (, as well as newer applications such as creating detailed fade patterns on designer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (denims.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 650.10 Td (Laser marking and coding are generally considered part of the precision materials processing applications market for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (which we remain a leading supplier) Tj ET Q q 0 0 0 rg BT 191.90 638.10 Td (. ) Tj ET Q q 0 0 0 rg BT 196.72 638.10 Td (The optimum choice of laser depends on the material being marked, whether it is a surface ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (mark \(engraved\) or a sub-surface mark, and the specific economics of the application. Our DIAMOND J, C and GEM Series of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 63.89 612.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.14 614.10 Td ( lasers provide many systems manufacturers with a reliable cost ef) Tj ET Q q 0 0 0 rg BT 332.43 614.10 Td (fective source for marking and engraving on non-metals. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (In addition, our Matrix and Helios product lines of reliable, compact and low-cost DPSS lasers provide an ideal solution for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (marking of other materials in high volume manufacturing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 570.10 Td (W) Tj ET Q q 0 0 0 rg BT 83.04 570.10 Td (ith our lar) Tj ET Q q 0 0 0 rg BT 122.29 570.10 Td (ge portfolio of Ultrafast laser technology) Tj ET Q q 0 0 0 rg BT 285.20 570.10 Td (, we serve customers with a variety of laser micromachining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (solutions, including our Integrated Optics Systems group which will develop sub systems and new applications in the fast ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (growing micro materials processing market.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 524.53505859375 m 217.5146484375 524.53505859375 l s q 0 0 0 rg BT 50.00 526.10 Td (OEM components and instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 506.10 Td (Instrumentation is one of our more mature commercial applications. Representative applications within this market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (include bio-instrumentation, medical OEMs, graphic arts and display and machine vision.) Tj ET Q q 0 0 0 rg BT 411.40 494.10 Td (W) Tj ET Q q 0 0 0 rg BT 420.04 494.10 Td (e also support the laser) Tj ET Q q 0 0 0 rg BT 511.48 494.10 Td (-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.10 Td (instrumentation market with a range of laser) Tj ET Q q 0 0 0 rg BT 226.96 482.10 Td (-related components, including diode lasers for optical pumping. Our OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 470.10 Td (component business includes sales to other) Tj ET Q q 0 0 0 rg BT 221.51 470.10 Td (, less integrated laser manufacturers participating in OEM markets such as materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.10 Td (processing, scientific, and medical.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (Bio-instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 418.10 Td (Bio-instrumentation applications for lasers include bio-agent detection for point source and standof) Tj ET Q q 0 0 0 rg BT 470.66 418.10 Td (f detection of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (pathogens or other bio-toxins; confocal microscopy for biological imaging that allows researchers and clinicians to visualize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (cellular and subcellular structures and processes with an incredible amount of detail; DNA) Tj ET Q q 0 0 0 rg BT 411.55 394.10 Td ( sequencing that provides automation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (and data acquisition rates that would be impossible by any other method; drug discoverygenomic and proteomic analyses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (that enable drug discovery to proceed at very high throughput rates; and flow cytometry for analyzing single cells or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (populations of cells in a heterogeneous mixture, including blood samples. Our OBIS, Flare, Galaxy) Tj ET Q q 0 0 0 rg BT 446.77 358.10 Td (, Sapphire, BioRay and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (Genesis lasers are used in several bio-instrumentation applications.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (Medical Therapy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 306.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 306.10 Td (e sell a variety of components and lasers to medical laser companies in end-user applications such as ophthalmology) Tj ET Q q 0 0 0 rg BT 547.69 306.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (aesthetic, sur) Tj ET Q q 0 0 0 rg BT 102.02 294.10 Td (gical, therapeutic and dentistry) Tj ET Q q 0 0 0 rg BT 224.66 294.10 Td (. Our DIAMOND seriesCO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 337.70 292.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.95 294.10 Td ( lasers are widely used in ophthalmic, aesthetic and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (sur) Tj ET Q q 0 0 0 rg BT 62.04 282.10 Td (gical markets. ) Tj ET Q q 0 0 0 rg BT 120.45 282.10 Td (W) Tj ET Q q 0 0 0 rg BT 129.09 282.10 Td (e have a leading position in Lasik and photorefractive keratectomy sur) Tj ET Q q 0 0 0 rg BT 410.47 282.10 Td (gery methods with our ExciStar XS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 Td (excimer laser platform. ) Tj ET Q q 0 0 0 rg BT 145.33 270.10 Td (W) Tj ET Q q 0 0 0 rg BT 153.97 270.10 Td (e also provide ultrafast lasers for use in cataract sur) Tj ET Q q 0 0 0 rg BT 358.98 270.10 Td (gery) Tj ET Q q 0 0 0 rg BT 376.10 270.10 Td (, a growing applications space.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 250.10 Td (The unique ability of our optically pumped semiconductor lasers \("OPSL"\) technology to match a wavelength to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (application has led to the development of a high-power yellow \(577nm\) laser for the treatment of eye related diseases, such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (Age Related Macular Degeneration and retinal diseases associated with diabetes. ) Tj ET Q q 0 0 0 rg BT 376.08 226.10 Td (The 577nm wavelength was designed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (match the peak in absorption of oxygenated hemoglobin thereby allowing treatment to occur at a lower power level, and thus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (reducing stress and heat-load placed on the eye with traditional green-based \(530nm\) solid state lasers. Other applications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (where our OBIS, Genesis and Sapphire series of lasers are used include the retinal scanning market in diagnostic imaging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (systems as well as new ground breaking in-vivo imaging.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 156.53505859375002 m 244.4189453125 156.53505859375002 l s q 0 0 0 rg BT 50.00 158.10 Td (Scientific r) Tj ET Q q 0 0 0 rg BT 96.19 158.10 Td (esear) Tj ET Q q 0 0 0 rg BT 118.22 158.10 Td (ch and government pr) Tj ET Q q 0 0 0 rg BT 212.76 158.10 Td (ograms) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 138.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 138.10 Td (e are widely recognized as a technology innovator and the scientific market has historically provided an ideal "test ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (market" for our leading-edge innovations. ) Tj ET Q q 0 0 0 rg BT 219.96 126.10 Td (These have included ultrafast lasers, DPSS lasers, continuous-wave \("CW"\) systems, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (excimer gas lasers and water) Tj ET Q q 0 0 0 rg BT 164.75 114.10 Td (-cooled ion gas lasers. Our portfolio of lasers that address the scientific research market is broad ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (and includes our Chameleon, COMPexPro, Evolution, Fidelity) Tj ET Q q 0 0 0 rg BT 300.72 102.10 Td (, Legend, Libra, MBD, MBR, Monaco, ) Tj ET Q q 0 0 0 rg BT 459.96 102.10 Td (V) Tj ET Q q 0 0 0 rg BT 466.58 102.10 Td (itara, Mephisto, Mira ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (and ) Tj ET Q q 0 0 0 rg BT 66.76 90.10 Td (V) Tj ET Q q 0 0 0 rg BT 72.87 90.10 Td (erdi lasers. Many of the innovations and products pioneered in the scientific marketplace have become commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (successes for both our OEM customers and us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 58.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 58.10 Td (e have a lar) Tj ET Q q 0 0 0 rg BT 128.26 58.10 Td (ge installed base of scientific lasers which are used in a wide range of applications spanning virtually every ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (branch of science and engineering. ) Tj ET Q q 0 0 0 rg BT 191.42 46.10 Td (These applications include biology and life science, engineering, physical chemistry and ) Tj ET Q endstream endobj 23 0 obj <>] /Rotate 0 /Contents 24 0 R>> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (physics. Most of these applications require the use of ultrafast lasers that enable the generation of pulses short enough to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (measured in femto- or attoseconds \(10) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 203.56 734.63 Td (-15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.23 730.10 Td ( to 10) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 235.01 734.63 Td (-18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.67 730.10 Td ( seconds\). Because of these very short pulse durations, ultrafast lasers enable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (the study of fundamental physical and chemical processes with temporal resolution unachievable with any other tool. ) Tj ET Q q 0 0 0 rg BT 521.07 718.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (lasers also deliver very high peak power and lar) Tj ET Q q 0 0 0 rg BT 240.86 706.10 Td (ge bandwidths, which can be used to generate many exotic ef) Tj ET Q q 0 0 0 rg BT 485.87 706.10 Td (fects. Some of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (these are now finding their way into mainstream applications, such as microscopy or materials processing. ) Tj ET Q q 0 0 0 rg BT 477.76 694.10 Td (The use of ultrafast ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (lasers such as the Chameleon in microscopy is now a common occurrence in bio-imaging labs, and they have become a crucial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (tool in modern brain research. ) Tj ET Q q 0 0 0 rg BT 172.55 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 181.19 670.10 Td (e recently released a new product called the Chameleon Discovery tar) Tj ET Q q 0 0 0 rg BT 460.33 670.10 Td (geted to this market.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (FUTURE ) Tj ET Q q 0 0 0 rg BT 93.43 650.10 Td (TRENDS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 630.10 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 630.10 Td (onics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 610.10 Td (Lasers are widely used in mass production microelectronics applications lar) Tj ET Q q 0 0 0 rg BT 376.78 610.10 Td (gely because they enable entirely new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (application capabilities that cannot be realized by any other known means. ) Tj ET Q q 0 0 0 rg BT 350.27 598.10 Td (These laser) Tj ET Q q 0 0 0 rg BT 395.32 598.10 Td (-based fabrication and testing methods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (provide a level of precision, typically on a micrometer and nanometer level, that are unique, faster) Tj ET Q q 0 0 0 rg BT 442.22 586.10 Td (, are touch free, deliver ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (superior end products, increase yields, and/or cut production costs. ) Tj ET Q q 0 0 0 rg BT 319.19 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 327.83 574.10 Td (e anticipate this trend to continue, driven primarily by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (increasing sophistication and miniaturization of consumer electronic goods and their conver) Tj ET Q q 0 0 0 rg BT 417.49 562.10 Td (gence via the internet, resulting in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (increasing demand for better displays, more bandwidth and memory) Tj ET Q q 0 0 0 rg BT 322.33 550.10 Td (, and all packaged into devices which are lighter) Tj ET Q q 0 0 0 rg BT 514.91 550.10 Td (, thinner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (and consume less power) Tj ET Q q 0 0 0 rg BT 146.92 538.10 Td (. ) Tj ET Q q 0 0 0 rg BT 151.37 538.10 Td (Although this market follows the macro-economic trends and carries inherent risks, we believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (we are well positioned to continue to capitalize on the current market trends and that we will see continued increased adoption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (of our solid-state, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 136.66 512.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.90 514.10 Td (, fiber) Tj ET Q q 0 0 0 rg BT 163.38 514.10 Td (, direct diode and excimer lasers, as all these lasers enable entirely new applications, performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (improvements and reduced process costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.10 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 482.10 Td (Excimer laser based L) Tj ET Q q 0 0 0 rg BT 174.21 482.10 Td (TPS is a key technology for producing high resolution OLED displays in general and flexible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 470.10 Td (OLED displays in particular) Tj ET Q q 0 0 0 rg BT 162.48 470.10 Td (. ) Tj ET Q q 0 0 0 rg BT 167.29 470.10 Td (W) Tj ET Q q 0 0 0 rg BT 175.93 470.10 Td (e believe we are well positioned to take advantage of the rapid growth that is projected for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.10 Td (OLED displays in smart phones and other mobile devices over the next several years with our ) Tj ET Q q 0 0 0 rg BT 428.05 458.10 Td (V) Tj ET Q q 0 0 0 rg BT 434.17 458.10 Td (yper and LineBeam systems.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 438.10 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 87.89 436.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.14 438.10 Td (, ) Tj ET Q q 0 0 0 rg BT 95.59 438.10 Td (A) Tj ET Q q 0 0 0 rg BT 102.07 438.10 Td (via, Matrix, Rapid, ) Tj ET Q q 0 0 0 rg BT 180.21 438.10 Td (T) Tj ET Q q 0 0 0 rg BT 185.62 438.10 Td (alisker) Tj ET Q q 0 0 0 rg BT 211.87 438.10 Td (, Helios and direct diode lasers all seem aligned with the need for related FPD touch ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (panel, film cutting, light guide technology) Tj ET Q q 0 0 0 rg BT 217.93 426.10 Td (, repair) Tj ET Q q 0 0 0 rg BT 245.84 426.10 Td (, frit welding, as well as sapphire and glass-cutting applications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 402.10 Td (The trend for thinner and lighter devices is impacting the glass substrates used in today) Tj ET Q q 0 0 0 rg BT 423.53 402.10 Td (s mobile devices requiring thinner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (glass with higher degrees of mechanical strength and scratch resistance. ) Tj ET Q q 0 0 0 rg BT 339.43 390.10 Td (This trend also includes use of sapphire instead of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.10 Td (glass. Mechanical means of cutting these glass and sapphire pieces are no longer adequate to meet future requirements and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (expect lasers to play an increased role. Our CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 257.43 364.67 Td (2, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.93 366.10 Td (Monaco and Rapid lasers are well positioned to take advantage of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (trend.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 334.10 Td (Semiconductor devices look set to continue Moore's Law) Tj ET Q q 0 0 0 rg BT 302.60 334.10 Td (, shrinking device geometries for at least another decade, as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (as expanding vertically into new 3D structures. ) Tj ET Q q 0 0 0 rg BT 240.51 322.10 Td (As a result we believe our many UV) Tj ET Q q 0 0 0 rg BT 386.12 322.10 Td ( laser sources \(such as ) Tj ET Q q 0 0 0 rg BT 476.92 322.10 Td (Azure, Paladin, ) Tj ET Q q 0 0 0 rg BT 540.80 322.10 Td (A) Tj ET Q q 0 0 0 rg BT 547.28 322.10 Td (via, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (Rapid, ExiStar and Matrix\) will continue to find increasing adoption, since their unique optical properties align well with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (process demands of a nanometer scale world. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 278.10 Td (The same lasers plus Monaco, Rapid FX, CO and CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 288.69 276.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.94 278.10 Td ( are also widely adopted for back end ) Tj ET Q q 0 0 0 rg BT 443.55 278.10 Td (Advanced Packaging and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (Interconnect \(API\) applications. ) Tj ET Q q 0 0 0 rg BT 180.88 266.10 Td (W) Tj ET Q q 0 0 0 rg BT 189.92 266.10 Td (ith dimension roadmaps showing a decade of dimension shrink on PCBs, interconnects, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (Silicon & LED scribe widths and wafer thickness, we believe that our portfolio of lasers aligns well with these demands as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (as new processes that seem likely to be enabled by our lasers, to meet the increasing demands and decreasing tolerances of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (these markets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 210.10 Td (Materials pr) Tj ET Q q 0 0 0 rg BT 103.41 210.10 Td (ocessing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 190.10 Td (The market for low to medium power CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 240.90 188.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.15 190.10 Td (, solid state and semiconductor lasers used in industrial materials processing is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (very diverse. New product introductions such as our Diamond J-series CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 347.44 176.67 Td (2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.31 178.10 Td (and CO lasers continue to support our growth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (this area. ) Tj ET Q q 0 0 0 rg BT 88.41 166.10 Td (These lasers represent a cost-ef) Tj ET Q q 0 0 0 rg BT 213.17 166.10 Td (fective manufacturing solution for cutting, joining, marking and engraving of non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (metal materials including marking/coding, flat bed cutting, engraving, as well as the production of capital equipment for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (apparel and leather goods manufacturing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 122.10 Td (The market for kW) Tj ET Q q 0 0 0 rg BT 150.73 122.10 Td ( class fiber lasers has seen strong growth in recent years, replacing legacy multi-kW) Tj ET Q q 0 0 0 rg BT 486.54 122.10 Td ( CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 502.93 120.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.18 122.10 Td ( lasers in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (metal cutting and other applications. ) Tj ET Q q 0 0 0 rg BT 198.11 110.10 Td (This trend will likely continue into the future. ) Tj ET Q q 0 0 0 rg BT 383.17 110.10 Td (The favorable cost of ownership of high ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (power diode and fiber lasers has expanded their use in a number of metal processing applications in addition to cutting. ) Tj ET Q q 0 0 0 rg BT 529.41 98.10 Td (They ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (have seen adoption in welding and brazing applications as well as newer growth areas in additive manufacturing like cladding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (and 3D printing. ) Tj ET Q q 0 0 0 rg BT 118.14 74.10 Td (W) Tj ET Q q 0 0 0 rg BT 126.78 74.10 Td (e believe we are well positioned to benefit from these lar) Tj ET Q q 0 0 0 rg BT 353.74 74.10 Td (ge and growing markets with our line of kW) Tj ET Q q 0 0 0 rg BT 531.29 74.10 Td ( fiber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (and diode lasers.) Tj ET Q endstream endobj 25 0 obj <>] /Rotate 0 /Contents 26 0 R>> endobj 26 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 742.10 Td (e have developed an expanded portfolio of lasers with a broad spectrum of wavelengths and power levels, enabling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (optimum solutions for virtually every metal and non-metal material type. ) Tj ET Q q 0 0 0 rg BT 344.10 730.10 Td (At the same time, the higher reliability of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (products has lowered the cost of ownership.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (OEM components and instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 678.10 Td (The bio instrumentation market is on a steady path in the most important areas: microscopy) Tj ET Q q 0 0 0 rg BT 439.38 678.10 Td (, flow cytometry and DNA) Tj ET Q q 0 0 0 rg BT 546.30 678.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 Td (sequencing, which all are enjoying solid research funding on a worldwide basis with some local variations. In this field, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 Td (OPSL) Tj ET Q q 0 0 0 rg BT 74.08 654.10 Td ( technology gives us dif) Tj ET Q q 0 0 0 rg BT 169.44 654.10 Td (ferentiated products at a number of important wavelengths. ) Tj ET Q q 0 0 0 rg BT 408.35 654.10 Td (This advantage coupled with strong ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 Td (focus on meeting our customers) Tj ET Q q 0 0 0 rg BT 180.34 642.10 Td ( demands for more compact and cost ef) Tj ET Q q 0 0 0 rg BT 337.60 642.10 Td (fective sources has made us very successful and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (expect that to continue. Our OPSL) Tj ET Q q 0 0 0 rg BT 187.93 630.10 Td ( technology resulted in the first truly continuous wave solid-state UV) Tj ET Q q 0 0 0 rg BT 464.37 630.10 Td ( laser which enables the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (use of UV) Tj ET Q q 0 0 0 rg BT 90.92 618.10 Td ( in a clinical as well as a research environment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 598.10 Td (In the medical therapeutic area, we see solid business with several opportunities for growth. ) Tj ET Q q 0 0 0 rg BT 443.71 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 452.34 598.10 Td (e supply excimer lasers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (used in refractive eye sur) Tj ET Q q 0 0 0 rg BT 150.33 586.10 Td (gery and are actively involved in further developments in laser vision correction including the use of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (ultrafast lasers in applications such as laser cataract sur) Tj ET Q q 0 0 0 rg BT 270.29 574.10 Td (gery where higher precision and use of advanced implants enable better ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (and more reliable patient outcomes. Laser cataract sur) Tj ET Q q 0 0 0 rg BT 265.83 562.10 Td (gery is still at a relatively early stage of adoption and is expected to see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (continued growth over the next several years. ) Tj ET Q q 0 0 0 rg BT 234.20 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 242.84 550.10 Td (e also have opportunities in dental procedures for both hard and soft tissue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (ablation, with greatly improved patient comfort and outcome. In the area of photocoagulation, our Genesis OPSL) Tj ET Q q 0 0 0 rg BT 502.84 538.10 Td ( yellow lasers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (are being used as the wavelength is particularly suitable for the treatment of blood vessels. In aesthetic laser procedures, we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (an OEM supplier of CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 146.10 512.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.35 514.10 Td ( and semiconductor lasers to the major manufacturers of equipment used in the latest procedures in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (dermatology and hair removal. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 482.10 Td (Scientific r) Tj ET Q q 0 0 0 rg BT 96.19 482.10 Td (esear) Tj ET Q q 0 0 0 rg BT 118.22 482.10 Td (ch and government pr) Tj ET Q q 0 0 0 rg BT 212.76 482.10 Td (ograms) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 462.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 462.10 Td (orldwide scientific funding seems very stable overall, with some regions growing and others just holding their current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (level. Bright spots include the strong push in neuroscience to better understand how the brain functions. Lasers play a very ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (important role in imaging brain structure as well as tracking activity in animal brains using techniques such as optogenetics. ) Tj ET Q q 0 0 0 rg BT 548.03 438.10 Td (W) Tj ET Q q 0 0 0 rg BT 556.67 438.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (believe that our current and upcoming products are well positioned to take advantage of this exciting opportunity) Tj ET Q q 0 0 0 rg BT 501.45 426.10 Td (. In physics ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (and chemistry applications, our recent product introductions of high performance and industrially hardened ultrafast products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 Td (have been very well received. ) Tj ET Q q 0 0 0 rg BT 171.42 402.10 Td (While this is a very competitive market, we expect that our new products will position us for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (growth.) Tj ET Q endstream endobj 27 0 obj <>] /Rotate 0 /Contents 28 0 R>> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 31.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (MARKET) Tj ET Q q 0 0 0 rg BT 94.82 742.25 Td ( ) Tj ET Q q 0 0 0 rg BT 96.77 742.25 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 140.47 742.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 722.25 Td (e design, manufacture and market lasers, laser tools, precision optics and related accessories for a diverse group of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (customers. ) Tj ET Q q 0 0 0 rg BT 95.37 710.25 Td (The following table lists our major markets and the Coherent technologies serving these markets.*) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 678.75 m 405 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 678.75 m 512 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 99 678.75 m 249 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 618.75 m 405 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 618.75 m 512 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 570.75 m 405 570.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 570.75 m 512 570.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 99 513.75 m 249 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 513.75 m 405 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 513.75 m 512 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 456.75 m 405 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 456.75 m 512 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 423.75 m 405 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 423.75 m 512 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 99 352.75 m 249 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 352.75 m 405 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 352.75 m 512 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 313.75 m 405 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 313.75 m 512 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 289.75 m 405 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 289.75 m 512 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 99 225.75 m 249 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 225.75 m 405 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 225.75 m 512 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 99 177.75 m 249 177.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 177.75 m 405 177.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 177.75 m 512 177.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 101.50 682.98 Td (Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.45 682.98 Td (Application) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.55 682.98 Td (Technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 669.32 Td (Microelectronics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 669.32 Td (Flat panel display) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 663.42 Td (CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 450.28 661.99 Td (2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 653.42 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 643.42 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 633.42 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 623.42 Td (Semiconductor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 609.32 Td (Advanced packaging and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 599.32 Td (interconnects) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 605.42 Td (CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 450.28 603.99 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 595.42 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 585.42 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 575.42 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 561.32 Td (Semiconductor front-end) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 558.42 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 556.99 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 548.42 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 538.42 Td (OPSL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 528.42 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 518.42 Td (Ion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 504.32 Td (Materials processing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 504.32 Td (Metal cutting, drilling, joining, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 494.32 Td (cladding, surface treatment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 484.32 Td (additive manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 504.32 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 502.89 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 494.32 Td (Fiber) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 484.32 Td (Semiconductor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 474.32 Td (Laser Machine ) Tj ET Q q 0 0 0 rg BT 479.51 474.32 Td (T) Tj ET Q q 0 0 0 rg BT 484.92 474.32 Td (ools ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 464.32 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 447.32 Td (Laser marking and coding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 447.32 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 445.89 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 437.32 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 427.32 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 414.32 Td (Non-metal cutting, drilling) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 407.42 Td (CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 450.28 405.99 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 397.42 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 387.42 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 377.42 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 367.42 Td (Semiconductor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 357.42 Td (Laser Machine ) Tj ET Q q 0 0 0 rg BT 479.51 357.42 Td (T) Tj ET Q q 0 0 0 rg BT 484.92 357.42 Td (ools) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 343.32 Td (OEM components and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 333.32 Td (instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 343.32 Td (Bio-Instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 343.32 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 333.32 Td (OPSL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 323.32 Td (Semiconductor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 304.32 Td (Graphic arts and display) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 304.32 Td (OPSL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 294.32 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 292.89 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 280.32 Td (Medical therapy \(OEM\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 280.32 Td (CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 450.28 278.89 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 270.32 Td (DPSS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 260.32 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 250.32 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 240.32 Td (OPSL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 230.32 Td (Semiconductor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 216.32 Td (Scientific research and government) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 206.32 Td (programs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 216.32 Td (All scientific applications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 212.42 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 202.42 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 192.42 Td (OPSL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 182.42 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 168.32 Td (*Coherent sells its laser measurement and control products into a number of these applications.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 143.25 Td (In addition to products we provide, we invest routinely in the core technologies needed to create substantial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 131.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.93 131.25 Td (ferentiation for our products in the marketplace. Our semiconductor) Tj ET Q q 0 0 0 rg BT 331.82 131.25 Td (, crystal, fiber and lar) Tj ET Q q 0 0 0 rg BT 417.16 131.25 Td (ge form factor optics facilities all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 119.25 Td (maintain an external customer base providing value-added solutions. ) Tj ET Q q 0 0 0 rg BT 327.24 119.25 Td (W) Tj ET Q q 0 0 0 rg BT 335.88 119.25 Td (e direct significant engineering ef) Tj ET Q q 0 0 0 rg BT 470.08 119.25 Td (forts to produce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 107.25 Td (unique solutions tar) Tj ET Q q 0 0 0 rg BT 128.70 107.25 Td (geted for internal consumption. ) Tj ET Q q 0 0 0 rg BT 256.54 107.25 Td (These investments, once integrated into our broader product portfolio, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 95.25 Td (provide our customers with uniquely dif) Tj ET Q q 0 0 0 rg BT 210.63 95.25 Td (ferentiated solutions and the opportunity to substantially enhance the performance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 83.25 Td (reliability and capability of the products we of) Tj ET Q q 0 0 0 rg BT 235.04 83.25 Td (fer) Tj ET Q q 0 0 0 rg BT 245.59 83.25 Td (.) Tj ET Q endstream endobj 29 0 obj <>] /Rotate 0 /Contents 30 0 R>> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (TECHNOLOGIES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (Diode-pumped solid-state lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 702.25 Td (DPSS lasers use semiconductor lasers to pump a crystal to produce a laser beam. By changing the ener) Tj ET Q q 0 0 0 rg BT 484.82 702.25 Td (gy) Tj ET Q q 0 0 0 rg BT 494.17 702.25 Td (, optical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 690.25 Td (components and the types of crystals used in the laser) Tj ET Q q 0 0 0 rg BT 264.27 690.25 Td (, dif) Tj ET Q q 0 0 0 rg BT 280.20 690.25 Td (ferent wavelengths and types of laser light can be produced.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 670.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.63 670.25 Td (ficiency) Tj ET Q q 0 0 0 rg BT 131.19 670.25 Td (, reliability) Tj ET Q q 0 0 0 rg BT 174.42 670.25 Td (, longevity and relatively low cost of DPSS lasers make them ideally suited for a wide range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (OEM and end-user applications, particularly those requiring 24-hour operations. Our DPSS systems are compact and self-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (contained sealed units. Unlike conventional tools and other lasers, our DPSS lasers require minimal maintenance since they do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (not have internal controls or components that require adjusting and cleaning to maintain consistency) Tj ET Q q 0 0 0 rg BT 450.63 634.25 Td (. ) Tj ET Q q 0 0 0 rg BT 455.45 634.25 Td (They are also less af) Tj ET Q q 0 0 0 rg BT 536.90 634.25 Td (fected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (by environmental changes in temperature and humidity) Tj ET Q q 0 0 0 rg BT 270.40 622.25 Td (, which can alter alignment and inhibit performance in many systems.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 602.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 602.25 Td (e manufacture a variety of types of DPSS lasers for dif) Tj ET Q q 0 0 0 rg BT 301.28 602.25 Td (ferent applications including semiconductor inspection; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.25 Td (advanced packaging and interconnects; laser pumping; spectroscopy; bio-agent detection; DNA) Tj ET Q q 0 0 0 rg BT 432.38 590.25 Td ( sequencing; drug discovery; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (flow cytometry; forensics; computer) Tj ET Q q 0 0 0 rg BT 195.59 578.25 Td (-to-plate printing; entertainment lighting \(display\); medical; rapid prototyping and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (marking, welding, engraving, cutting and drilling.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 546.25 Td (Fiber lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 526.25 Td (Fiber lasers use semiconductor lasers to pump a doped optical fiber to produce a laser beam. ) Tj ET Q q 0 0 0 rg BT 445.65 526.25 Td (The unique features of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (fiber laser make them suitable for producing high power) Tj ET Q q 0 0 0 rg BT 275.08 514.25 Td (, continuous wave laser beams. ) Tj ET Q q 0 0 0 rg BT 401.81 514.25 Td (W) Tj ET Q q 0 0 0 rg BT 410.45 514.25 Td (e introduced a multi kilowatt fiber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (laser platform in fiscal 2015. Our fiber laser design has several unique features including a modular design for improved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (serviceability and diode bar based pumping. Due to packaging ef) Tj ET Q q 0 0 0 rg BT 309.74 490.25 Td (ficiency) Tj ET Q q 0 0 0 rg BT 341.29 490.25 Td (, diode bars reduce the overall cost of a fiber laser) Tj ET Q q 0 0 0 rg BT 540.37 490.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (Some of the most critical components inside a fiber laser include the gain fiber itself and the diodes providing the pump power) Tj ET Q q 0 0 0 rg BT 556.26 478.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 466.25 Td (e are well positioned as a fiber laser supplier since we are vertically integrated with respect to these key technologies; we use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (diode bars and fiber manufactured in-house. ) Tj ET Q q 0 0 0 rg BT 228.92 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 237.56 454.25 Td (e plan to continue to drive cost reduction in our diode laser pumps and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (demonstrate the scalability of the platform by moving up the power scale into the multi kilowatt regime. ) Tj ET Q q 0 0 0 rg BT 469.16 442.25 Td (This platform will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (address the lar) Tj ET Q q 0 0 0 rg BT 107.57 430.25 Td (ge growing high power metal cutting and joining market.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (Gas lasers \(CO, CO) Tj ET Q BT /F3 10.00 Tf ET BT /F3 6.50 Tf ET q 0 0 0 rg BT 131.12 408.82 Td (2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 134.37 410.25 Td (, Excimer) Tj ET Q q 0 0 0 rg BT 173.81 410.25 Td (, Ion\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 390.25 Td (The breadth of our gas laser portfolio is industry leading, encompassing CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 396.71 388.82 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.96 390.25 Td (, excimer and ion laser technologies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.25 Td (Gas lasers derive their name from the use of one or more gases as a lasing medium. ) Tj ET Q q 0 0 0 rg BT 385.83 378.25 Td (They collectively span an extremely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.25 Td (diverse and useful emission range, from the very deep ultraviolet to the far infrared. ) Tj ET Q q 0 0 0 rg BT 387.48 366.25 Td (This diverse range of available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.25 Td (wavelengths, coupled with high optical output power) Tj ET Q q 0 0 0 rg BT 262.06 354.25 Td (, and an abundance of other attractive characteristics, makes gas lasers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.25 Td (extremely useful and popular for a variety of microelectronics, scientific, medical therapeutic and materials processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.25 Td (applications.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (Optically Pumped Semiconductor Lasers \("OPSL"\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 290.25 Td (Our OPSL) Tj ET Q q 0 0 0 rg BT 116.13 290.25 Td ( platform is a surface emitting semiconductor laser that is ener) Tj ET Q q 0 0 0 rg BT 365.31 290.25 Td (gized or pumped by a semiconductor laser) Tj ET Q q 0 0 0 rg BT 534.15 290.25 Td (. ) Tj ET Q q 0 0 0 rg BT 538.97 290.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.25 Td (use of optical pumping circumvents inherent power scaling limitations of electrically pumped lasers, enabling very high ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.25 Td (powered devices. ) Tj ET Q q 0 0 0 rg BT 121.36 266.25 Td (A) Tj ET Q q 0 0 0 rg BT 128.03 266.25 Td ( wide range of wavelengths can be achieved by varying the semiconductor materials used in the device and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.25 Td (changing the frequency of the laser beam using techniques common in solid state lasers. ) Tj ET Q q 0 0 0 rg BT 405.00 254.25 Td (The platform leverages high reliability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.25 Td (technologies developed for telecommunications and produces a compact, rugged, high power) Tj ET Q q 0 0 0 rg BT 422.81 242.25 Td (, single-mode laser) Tj ET Q q 0 0 0 rg BT 498.07 242.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 222.25 Td (Our OPSL) Tj ET Q q 0 0 0 rg BT 116.13 222.25 Td ( products are well suited to a wide range of applications, including the bio-instrumentation, medical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.25 Td (therapeutics and graphic arts and display markets. ) Tj ET Q q 0 0 0 rg BT 251.97 210.25 Td (W) Tj ET Q q 0 0 0 rg BT 260.61 210.25 Td (e continue to expand our ultraviolet version of the OPSL) Tj ET Q q 0 0 0 rg BT 487.13 210.25 Td ( platform called ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.25 Td (the Genesis, which was developed for the bio-instrumentation market.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (Semiconductor lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 158.25 Td (High power edge emitting semiconductor diode lasers use the same principles as widely-used CD and DVD lasers, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.25 Td (produce significantly higher power levels. ) Tj ET Q q 0 0 0 rg BT 220.88 146.25 Td (The advantages of this type of laser include smaller size, longer life, enhanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.25 Td (reliability and greater ef) Tj ET Q q 0 0 0 rg BT 146.16 134.25 Td (ficiency) Tj ET Q q 0 0 0 rg BT 177.71 134.25 Td (. ) Tj ET Q q 0 0 0 rg BT 182.53 134.25 Td (W) Tj ET Q q 0 0 0 rg BT 191.17 134.25 Td (e manufacture a wide range of discrete semiconductor laser products with wavelengths ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.25 Td (ranging from 650nm to over 1000nm and output powers ranging from 1W) Tj ET Q q 0 0 0 rg BT 346.71 122.25 Td ( to over 100W) Tj ET Q q 0 0 0 rg BT 403.28 122.25 Td (, with highly integrated products in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.25 Td (kW) Tj ET Q q 0 0 0 rg BT 64.26 110.25 Td ( range. ) Tj ET Q q 0 0 0 rg BT 93.78 110.25 Td (These products are available in a variety of industry standard form factors including the following: bare die, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.25 Td (packaged and fiber coupled single emitters and bars, monolithic stacks and fully integrated modules with microprocessor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.25 Td (controlled units that contain power supplies and active coolers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 66.25 Td (Our semiconductor lasers are used internally as the pump lasers in DPSS, fiber and OPSL) Tj ET Q q 0 0 0 rg BT 432.73 66.25 Td ( products that are manufactured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 54.25 Td (by us, as well as a wide variety of external medical, OEM, military and industrial applications, including aesthetic \(hair ) Tj ET Q endstream endobj 31 0 obj <>] /Rotate 0 /Contents 32 0 R>> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (removal, cosmetic dentistry\), graphic arts, counter measures, rangefinders, tar) Tj ET Q q 0 0 0 rg BT 361.09 742.10 Td (get designators, cladding, hardening and plastic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (welding.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (Ultrafast \("UF"\) Lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 690.10 Td (Ultrafast lasers are lasers generating light pulses with durations of a few femtoseconds \(10) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 435.84 693.73 Td (-15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.77 690.10 Td ( seconds\) to a few tens of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.10 Td (picoseconds \(10) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 114.71 681.73 Td (-1) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 118.85 681.73 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.44 678.10 Td ( seconds\). ) Tj ET Q q 0 0 0 rg BT 163.75 678.10 Td (These types of lasers are used for medical, advanced microelectronics and materials processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 Td (applications as well as scientific research. UF laser oscillators generate a train of pulses at 50-100 MHz, with peak powers of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 Td (tens of kilowatts, and UF laser amplifiers generate pulses at 1-2000 kHz, with peak powers up to several ) Tj ET Q q 0 0 0 rg BT 470.26 654.10 Td (T) Tj ET Q q 0 0 0 rg BT 475.67 654.10 Td (erawatts.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 634.10 Td (The extremely short duration of UF laser pulses enables temporally resolving fast events like the dynamics of atoms or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (electrons. In addition, the high peak power enables so-called non-linear ef) Tj ET Q q 0 0 0 rg BT 345.82 622.10 Td (fects where several photons can be absorbed by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (molecule at the same time. ) Tj ET Q q 0 0 0 rg BT 159.22 610.10 Td (This type of process enables applications like multi-photon excitation microscopy or UF ablation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (materials with high precision and minimal thermal damage. ) Tj ET Q q 0 0 0 rg BT 290.59 598.10 Td (The use of our ultrafast lasers in applications outside science has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (been growing rapidly over the last several years, particularly in microelectronics and materials processing applications. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (SALES ) Tj ET Q q 0 0 0 rg BT 83.63 566.10 Td (AND MARKETING) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 546.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 546.10 Td (e primarily market our products in the United States through a direct sales force. ) Tj ET Q q 0 0 0 rg BT 406.52 546.10 Td (W) Tj ET Q q 0 0 0 rg BT 415.16 546.10 Td (e sell internationally through direct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (sales personnel located in Canada, France, Germany) Tj ET Q q 0 0 0 rg BT 258.72 534.10 Td (, Italy) Tj ET Q q 0 0 0 rg BT 281.39 534.10 Td (, Japan, the Netherlands, China, South Korea, ) Tj ET Q q 0 0 0 rg BT 466.17 534.10 Td (T) Tj ET Q q 0 0 0 rg BT 471.58 534.10 Td (aiwan and the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (Kingdom, as well as through independent representatives in certain jurisdictions around the world. Our foreign sales are made ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (principally to customers in South Korea, Japan, Germany) Tj ET Q q 0 0 0 rg BT 279.02 510.10 Td (, China and other European and ) Tj ET Q q 0 0 0 rg BT 407.59 510.10 Td (Asia-Pacific countries. Foreign sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.19 498.10 Td (76%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.52 498.10 Td ( of our net sales in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.77 498.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.77 498.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.77 498.10 Td (73%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.10 498.10 Td ( of our net sales in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.35 498.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.35 498.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.79 498.10 Td (74%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.12 498.10 Td ( of our net sales in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.37 498.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.37 498.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (Sales made to independent representatives and distributors are generally priced in U.S. dollars. ) Tj ET Q q 0 0 0 rg BT 431.00 486.10 Td (A) Tj ET Q q 0 0 0 rg BT 437.67 486.10 Td ( lar) Tj ET Q q 0 0 0 rg BT 450.54 486.10 Td (ge portion of foreign sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (that we make directly to customers are priced in local currencies and are therefore subject to currency exchange fluctuations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (Foreign sales are also subject to other normal risks of foreign operations such as protective tarif) Tj ET Q q 0 0 0 rg BT 432.21 462.10 Td (fs, export and import controls ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (and political instability) Tj ET Q q 0 0 0 rg BT 141.56 450.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 430.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 430.10 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.51 430.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.95 430.10 Td ( customer) Tj ET Q q 0 0 0 rg BT 159.71 430.10 Td (, ) Tj ET Q q 0 0 0 rg BT 164.16 430.10 Td (Advanced Process Systems Corporation, who contributed more than 10% of revenue during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 418.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 418.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 418.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.44 418.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.44 418.10 Td (. ) Tj ET Q q 0 0 0 rg BT 139.26 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 147.90 418.10 Td (e had another major customer) Tj ET Q q 0 0 0 rg BT 266.34 418.10 Td (, Japanese Steel ) Tj ET Q q 0 0 0 rg BT 331.69 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 340.33 418.10 Td (orks, Ltd., who contributed more than 10% of revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.76 406.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.76 406.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 386.10 Td (T) Tj ET Q q 0 0 0 rg BT 79.41 386.10 Td (o support our sales ef) Tj ET Q q 0 0 0 rg BT 164.77 386.10 Td (forts we maintain and continue to invest in a number of applications centers around the world, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (where our applications experts work closely with customers on developing laser processes to meet their manufacturing needs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (The applications span a wide range, but are mostly centered around the materials processing and microelectronics markets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (Locations include several facilities in the US, Europe and ) Tj ET Q q 0 0 0 rg BT 282.15 350.10 Td (Asia.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 330.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 330.10 Td (e maintain customer support and field service staf) Tj ET Q q 0 0 0 rg BT 281.56 330.10 Td (f in major markets within the United States, Europe, Japan, China, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (South Korea, ) Tj ET Q q 0 0 0 rg BT 105.09 318.10 Td (T) Tj ET Q q 0 0 0 rg BT 110.50 318.10 Td (aiwan and other ) Tj ET Q q 0 0 0 rg BT 176.31 318.10 Td (Asia-Pacific countries. ) Tj ET Q q 0 0 0 rg BT 269.71 318.10 Td (This or) Tj ET Q q 0 0 0 rg BT 298.13 318.10 Td (ganization works closely with customers, customer groups and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (independent representatives in servicing equipment, training customers to use our products and exploring additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (applications of our technologies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 274.10 Td (e typically provide parts and service warranties on our lasers, laser) Tj ET Q q 0 0 0 rg BT 348.73 274.10 Td (-based systems, optical and laser components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (related accessories and services. ) Tj ET Q q 0 0 0 rg BT 181.14 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 189.78 262.10 Td (arranties on some of our products and services may be shorter or longer than one year) Tj ET Q q 0 0 0 rg BT 532.17 262.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 250.10 Td (arranty reserves, as reflected on our consolidated balance sheets, have generally been suf) Tj ET Q q 0 0 0 rg BT 413.85 250.10 Td (ficient to cover product warranty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (repair and replacement costs. ) Tj ET Q q 0 0 0 rg BT 168.93 238.10 Td (The weighted average warranty period covered is approximately 15months.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (RESEARCH ) Tj ET Q q 0 0 0 rg BT 107.51 218.10 Td (AND DEVELOPMENT) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 198.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 198.10 Td (e are constantly developing and introducing new products as well as improving and refining existing products to better ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 186.10 Td (serve the markets we participate in. Our development ef) Tj ET Q q 0 0 0 rg BT 273.90 186.10 Td (forts are focused on designing and developing products, services and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (solutions that anticipate customers' changing needs and emer) Tj ET Q q 0 0 0 rg BT 293.50 174.10 Td (ging technological trends. Our ef) Tj ET Q q 0 0 0 rg BT 425.22 174.10 Td (forts are also focused on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (identifying the areas where we believe we can make valuable contributions. Research and development expenditures for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 150.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.43 150.10 Td ($81.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.32 150.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.15 150.10 Td (9.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.98 150.10 Td ( of net sales compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.17 150.10 Td ($81.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.06 150.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.89 150.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.72 150.10 Td ( of net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.02 150.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.02 150.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.46 150.10 Td ($79.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 138.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.72 138.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.55 138.10 Td ( of net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.85 138.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.85 138.10 Td (. ) Tj ET Q q 0 0 0 rg BT 233.67 138.10 Td (W) Tj ET Q q 0 0 0 rg BT 242.31 138.10 Td (e work closely with customers, both individually and through our sponsored ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (seminars, to develop products to meet customer application and performance needs. In addition, we are working with leading ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (research and educational institutions to develop new photonics based solutions.) Tj ET Q endstream endobj 33 0 obj <>] /Rotate 0 /Contents 34 0 R>> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (MANUF) Tj ET Q q 0 0 0 rg BT 86.47 742.25 Td (ACTURING) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (Strategies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 702.25 Td (One of our core manufacturing strategies is to tightly control our supply of key parts, components, sub-assemblies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 690.25 Td (outsourcing partners. ) Tj ET Q q 0 0 0 rg BT 136.74 690.25 Td (W) Tj ET Q q 0 0 0 rg BT 145.38 690.25 Td (e primarily utilize vertical integration when we have proprietary internal capabilities that are not cost-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 678.25 Td (fectively available from external sources. ) Tj ET Q q 0 0 0 rg BT 225.11 678.25 Td (W) Tj ET Q q 0 0 0 rg BT 233.75 678.25 Td (e believe this is essential to maintain high quality products and enable rapid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (development and deployment of new products and technologies. ) Tj ET Q q 0 0 0 rg BT 310.03 666.25 Td (W) Tj ET Q q 0 0 0 rg BT 318.67 666.25 Td (e provide customers with 24-hour technical expertise and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (quality that is International Or) Tj ET Q q 0 0 0 rg BT 170.90 654.25 Td (ganization for Standardization \("ISO"\) certified at our principal manufacturing sites.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 634.25 Td (Committed to quality and customer satisfaction, we design and produce many of our own components and sub-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (assemblies in order to retain quality and performance control. ) Tj ET Q q 0 0 0 rg BT 298.62 622.25 Td (W) Tj ET Q q 0 0 0 rg BT 307.26 622.25 Td (e have also outsourced certain components, sub-assemblies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (finished goods where we can maintain our high quality standards while improving our cost structure. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 590.25 Td (As part of our strategy to increase our market share and customer support in ) Tj ET Q q 0 0 0 rg BT 380.02 590.25 Td (Asia as well as our continuing ef) Tj ET Q q 0 0 0 rg BT 510.92 590.25 Td (forts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (manage costs, we have transferred the production of additional products into both of our Singapore and Malaysia factories. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (addition, we expanded our repair activities in our China and South Korea operations and also opened a tube refurbishment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (manufacturing site in South Korea. ) Tj ET Q q 0 0 0 rg BT 192.56 554.25 Td (This has allowed us to reduce service response time and inventories, providing benefits to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (us and to our customers.) Tj ET Q q 0 0 0 rg BT 149.80 542.25 Td (W) Tj ET Q q 0 0 0 rg BT 158.44 542.25 Td (e have also established an International Procurement Of) Tj ET Q q 0 0 0 rg BT 381.79 542.25 Td (fice in Singapore and have been increasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (our sourcing of materials from ) Tj ET Q q 0 0 0 rg BT 174.14 530.25 Td (Asia to reduce material costs on a global basis. In fiscal 2015, we increased our vertical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td (integration capabilities with the asset acquisition of the ) Tj ET Q q 0 0 0 rg BT 272.54 518.25 Td (T) Tj ET Q q 0 0 0 rg BT 278.30 518.25 Td (insley Optics business from L-3 Communications Corporation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 498.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 498.25 Td (e have designed and implemented proprietary manufacturing tools, equipment and techniques in an ef) Tj ET Q q 0 0 0 rg BT 489.55 498.25 Td (fort to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.25 Td (products that dif) Tj ET Q q 0 0 0 rg BT 115.36 486.25 Td (ferentiate us from our competitors. ) Tj ET Q q 0 0 0 rg BT 256.80 486.25 Td (These proprietary manufacturing techniques are utilized in a number of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (product lines including our gas laser production, crystal growth, beam alignment as well as the wafer growth for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (semiconductor and optically pumped semiconductor laser product family) Tj ET Q q 0 0 0 rg BT 341.77 462.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 442.25 Td (Raw materials or sub-components required in the manufacturing process are generally available from several sources. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (However) Tj ET Q q 0 0 0 rg BT 86.25 430.25 Td (, we currently purchase several key components and materials, including exotic materials, crystals and optics, used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (the manufacture of our products from sole source or limited source suppliers. ) Tj ET Q q 0 0 0 rg BT 361.12 418.25 Td (W) Tj ET Q q 0 0 0 rg BT 369.76 418.25 Td (e also purchase assemblies and turnkey ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (solutions from contract manufacturers based on our proprietary designs. ) Tj ET Q q 0 0 0 rg BT 340.29 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 348.93 406.25 Td (e rely on our own production and design capability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (to manufacture and specify certain strategic components, crystals, fibers, semiconductor lasers, lasers and laser based systems.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 374.25 Td (For a discussion of the importance to our business of, and the risks attendant to sourcing, see "Risk Factors" in item 1A) Tj ET Q q 0 0 0 rg BT 550.70 374.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.25 Td ( "W) Tj ET Q q 0 0 0 rg BT 75.22 362.25 Td (e depend on sole source or limited source suppliers, both internal and external, for some of our key components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.25 Td (materials, including exotic materials, certain cutting-edge optics and crystals, in our products, which make us susceptible to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.25 Td (supply shortages or price fluctuations that could adversely af) Tj ET Q q 0 0 0 rg BT 293.08 338.25 Td (fect our business.") Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 318.25 Td (Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 298.25 Td (Our products are manufactured at our sites in Santa Clara, Sunnyvale and Richmond, California; ) Tj ET Q q 0 0 0 rg BT 462.60 298.25 Td (W) Tj ET Q q 0 0 0 rg BT 471.64 298.25 Td (ilsonville, Oregon; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (East Hanover) Tj ET Q q 0 0 0 rg BT 103.75 286.25 Td (, New Jersey; Bloomfield, Connecticut; Salem, New Hampshire; Lbeck, Germany; Gttingen, Germany; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (Kaiserslautern, Germany; Glasgow) Tj ET Q q 0 0 0 rg BT 190.14 274.25 Td (, Scotland; ) Tj ET Q q 0 0 0 rg BT 235.04 274.25 Td (Y) Tj ET Q q 0 0 0 rg BT 241.26 274.25 Td (ongIn-Si, South Korea; Kallang Sector) Tj ET Q q 0 0 0 rg BT 396.11 274.25 Td (, Singapore; and Penang, Malaysia. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (addition, we also use contract manufacturers for the production of certain assemblies and turnkey solutions. Our ion gas lasers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.25 Td (a portion of our DPSS lasers that are used in microelectronics, scientific research and materials processing applications, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (semiconductor lasers, OPS lasers, fiber lasers and ultrafast scientific lasers are manufactured at our Santa Clara, California site. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (Our laser diode module products, laser instrumentation products, test and measurement equipment products are manufactured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (in ) Tj ET Q q 0 0 0 rg BT 60.10 214.25 Td (W) Tj ET Q q 0 0 0 rg BT 69.14 214.25 Td (ilsonville, Oregon. ) Tj ET Q q 0 0 0 rg BT 146.17 214.25 Td (W) Tj ET Q q 0 0 0 rg BT 154.80 214.25 Td (e manufacture exotic crystals in East Hanover) Tj ET Q q 0 0 0 rg BT 338.22 214.25 Td (, New Jersey and both active and passive fibers are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (manufactured in our Salem, New Hampshire facility) Tj ET Q q 0 0 0 rg BT 259.00 202.25 Td (. Our CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 295.95 200.82 Td (2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.82 202.25 Td (and CO gas lasers are manufactured in Bloomfield, Connecticut. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 190.25 Td (e manufacture our LMT) Tj ET Q q 0 0 0 rg BT 154.80 190.25 Td ( products in Bloomfield, Connecticut and Singapore. ) Tj ET Q q 0 0 0 rg BT 368.20 190.25 Td (W) Tj ET Q q 0 0 0 rg BT 376.84 190.25 Td (e manufacture a portion of our DPSS lasers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (used in microelectronics and OEM components and instrumentation applications in Lbeck, Germany) Tj ET Q q 0 0 0 rg BT 457.58 178.25 Td (. ) Tj ET Q q 0 0 0 rg BT 462.40 178.25 Td (W) Tj ET Q q 0 0 0 rg BT 471.04 178.25 Td (e manufacture a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (portion of our DPSS lasers used in microelectronics, OEM components and instrumentation and materials processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (applications in Kaiserslautern, Germany) Tj ET Q q 0 0 0 rg BT 210.41 154.25 Td (. Our excimer gas laser products are manufactured in Gttingen, Germany) Tj ET Q q 0 0 0 rg BT 506.32 154.25 Td (. ) Tj ET Q q 0 0 0 rg BT 511.14 154.25 Td (W) Tj ET Q q 0 0 0 rg BT 519.78 154.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (refurbish excimer tubes at our manufacturing site in South Korea. ) Tj ET Q q 0 0 0 rg BT 315.02 142.25 Td (W) Tj ET Q q 0 0 0 rg BT 323.66 142.25 Td (e manufacture the fiber) Tj ET Q q 0 0 0 rg BT 416.46 142.25 Td (-based lasers and a portion of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (DPSS lasers used in microelectronics and scientific research applications in Glasgow) Tj ET Q q 0 0 0 rg BT 389.81 130.25 Td (, Scotland. Our facility in Sunnyvale, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (California grows the aluminum-free materials that are incorporated into our semiconductor lasers. Our facility in Richmond, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (California manufactures lar) Tj ET Q q 0 0 0 rg BT 159.77 106.25 Td (ge form factor optics for our Linebeam excimer laser annealing systems. ) Tj ET Q q 0 0 0 rg BT 452.26 106.25 Td (W) Tj ET Q q 0 0 0 rg BT 460.90 106.25 Td (e have transferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (several products and subassemblies for manufacture at our Singapore and Malaysia facilities and are continuing to transfer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (additional product manufacturing to Singapore and Malaysia as part of our worldwide manufacturing cost reduction strategy) Tj ET Q q 0 0 0 rg BT 547.26 82.25 Td (. ) Tj ET Q endstream endobj 35 0 obj <>] /Rotate 0 /Contents 36 0 R>> endobj 36 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (INTELLECTUAL) Tj ET Q q 0 0 0 rg BT 128.92 742.25 Td ( PROPER) Tj ET Q q 0 0 0 rg BT 172.17 742.25 Td (TY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 722.25 Td (e rely on a combination of patent, copyright, trademark and trade secret laws and restrictions on disclosure to protect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (our intellectual property rights. ) Tj ET Q q 0 0 0 rg BT 176.36 710.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.80 710.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.51 710.25 Td (, we held approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.64 710.25 Td (565) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.64 710.25 Td ( U.S. and foreign patents, which expire from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (2016 through 2032 \(depending on the payment of maintenance fees\) and we have approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.76 698.25 Td (133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.76 698.25 Td ( additional pending patent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (applications that have been filed. ) Tj ET Q q 0 0 0 rg BT 184.21 686.25 Td (The issued patents cover various products in all of the major markets that we serve.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 666.25 Td (For a discussion of the importance to our business of, and the risks attendant to intellectual property rights, see "Risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (Factors" in Item 1A) Tj ET Q q 0 0 0 rg BT 128.79 654.25 Td ( "W) Tj ET Q q 0 0 0 rg BT 156.51 654.25 Td (e may not be able to protect our proprietary technology which could adversely af) Tj ET Q q 0 0 0 rg BT 479.83 654.25 Td (fect our competitive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (advantage" and "W) Tj ET Q q 0 0 0 rg BT 126.77 642.25 Td (e may) Tj ET Q q 0 0 0 rg BT 150.28 642.25 Td (, in the future, be subject to claims or litigation from third parties, for claims of infringement of their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.25 Td (proprietary rights or to determine the scope and validity of our proprietary rights or the proprietary rights of competitors or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.25 Td (other rights holders. ) Tj ET Q q 0 0 0 rg BT 132.58 618.25 Td (These claims could result in costly litigation and the diversion of our technical and management personnel. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.25 Td (Adverse resolution of litigation may harm our operating results or financial condition.") Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (COMPETITION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 566.25 Td (Competition in the various photonics markets in which we provide products is very intense. ) Tj ET Q q 0 0 0 rg BT 442.92 566.25 Td (W) Tj ET Q q 0 0 0 rg BT 451.56 566.25 Td (e compete against a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (number of lar) Tj ET Q q 0 0 0 rg BT 104.24 554.25 Td (ge public and private companies including CVI Melles Griot, Novanta Inc., IPG Photonics Corporation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (Lumentum Holdings Inc., MKS Instruments, Inc., and ) Tj ET Q q 0 0 0 rg BT 269.24 542.25 Td (T) Tj ET Q q 0 0 0 rg BT 275.00 542.25 Td (rumpfGmbH, as well as other smaller companies. ) Tj ET Q q 0 0 0 rg BT 478.10 542.25 Td (W) Tj ET Q q 0 0 0 rg BT 486.73 542.25 Td (e compete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (globally based on our broad product of) Tj ET Q q 0 0 0 rg BT 205.34 530.25 Td (fering, reliability) Tj ET Q q 0 0 0 rg BT 272.44 530.25 Td (, cost, and performance advantages for the widest range of commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td (and scientific research applications. Other considerations by our customers include warranty) Tj ET Q q 0 0 0 rg BT 418.95 518.25 Td (, global service and support and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (distribution.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 486.25 Td (BACKLOG) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 466.25 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.66 466.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.66 466.25 Td (year) Tj ET Q q 0 0 0 rg BT 150.16 466.25 Td (-end, our backlog of orders scheduled for shipment \(within one year\) was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.46 466.25 Td ($605.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.35 466.25 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td ($309.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.89 454.25 Td ( at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.26 454.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.26 454.25 Td (year) Tj ET Q q 0 0 0 rg BT 184.77 454.25 Td (-end. By segment, backlog for SLS was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.13 454.25 Td ($515.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.02 454.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.46 454.25 Td ($219.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.35 454.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 536.02 454.25 Td (, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 442.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 442.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.59 442.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.59 442.25 Td ( year) Tj ET Q q 0 0 0 rg BT 153.10 442.25 Td (-ends. Backlog for CLC was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.75 442.25 Td ($90.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.64 442.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.08 442.25 Td ($90.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.97 442.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 449.63 442.25 Td (, at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 442.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 442.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.94 442.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.94 442.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (year) Tj ET Q q 0 0 0 rg BT 67.01 430.25 Td (-ends. ) Tj ET Q q 0 0 0 rg BT 93.49 430.25 Td (The increase in SLS backlog from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.05 430.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.05 430.25 Td ( to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.98 430.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.98 430.25 Td ( year) Tj ET Q q 0 0 0 rg BT 353.49 430.25 Td (-end is primarily due to timing of lar) Tj ET Q q 0 0 0 rg BT 499.66 430.25 Td (ge excimer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (laser annealing system orders, net of shipments, for the flat panel display market, which explains the increase in overall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (company backlog as well. Orders used to compute backlog are generally cancelable and, depending on the notice period, are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (subject to rescheduling by our customers without substantial penalties. Historically) Tj ET Q q 0 0 0 rg BT 381.51 394.25 Td (, we have not experienced a significant rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (of cancellation or rescheduling, though we cannot guarantee that the rate of cancellations or rescheduling will not increase in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (the future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 350.25 Td (SEASONALITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 330.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 330.25 Td (e have historically experienced decreased revenue in the first fiscal quarter compared to other quarters in our fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.25 Td (due to the impact of time of) Tj ET Q q 0 0 0 rg BT 160.90 318.25 Td (f and business closures at our facilities and those of many of our customers due to year) Tj ET Q q 0 0 0 rg BT 507.83 318.25 Td (-end ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.25 Td (holidays. For example over the past 10 years we have noted, excluding certain recovery years, our first fiscal quarter revenues ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.25 Td (have ranged 2%-12% below the fourth quarter of the prior fiscal years. ) Tj ET Q q 0 0 0 rg BT 335.54 294.25 Td (This historical pattern should not be considered a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.25 Td (reliable indicator of the Company's future net sales or financial performance.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (EMPLOYEES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 242.25 Td (As of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.60 242.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.60 242.25 Td (year) Tj ET Q q 0 0 0 rg BT 162.11 242.25 Td (-end, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.97 242.25 Td (2,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.47 242.25 Td ( employees. ) Tj ET Q q 0 0 0 rg BT 288.18 242.25 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.23 242.25 Td (396) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.23 242.25 Td ( of our employees are involved in research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.25 Td (development; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.93 230.25 Td (1,786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.43 230.25 Td ( of our employees are involved in operations, manufacturing, service and quality assurance; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.41 230.25 Td (605) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.41 230.25 Td ( of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.25 Td (employees are involved in sales, order administration, marketing, finance, information technology) Tj ET Q q 0 0 0 rg BT 442.01 218.25 Td (, general management and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.25 Td (other administrative functions. Our success will depend in lar) Tj ET Q q 0 0 0 rg BT 295.59 206.25 Td (ge part upon our ability to attract and retain employees. ) Tj ET Q q 0 0 0 rg BT 519.50 206.25 Td (W) Tj ET Q q 0 0 0 rg BT 528.14 206.25 Td (e face ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.25 Td (competition in this regard from other companies, research and academic institutions, government entities and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.25 Td (or) Tj ET Q q 0 0 0 rg BT 58.15 182.25 Td (ganizations. ) Tj ET Q q 0 0 0 rg BT 108.51 182.25 Td (W) Tj ET Q q 0 0 0 rg BT 117.15 182.25 Td (e consider our relations with our employees to be good.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 162.25 Td (ACQUISITIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 142.25 Td (On November 7, 2016, we acquired Rofin, one of the world's leading developers and manufacturers of high-performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (industrial laser sources and laser) Tj ET Q q 0 0 0 rg BT 179.76 130.25 Td (-based solutions and components. See "Recent Developments" for further discussion of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (acquisition and the Credit ) Tj ET Q q 0 0 0 rg BT 154.98 118.25 Td (Agreement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 98.25 Td (In July 2015, we acquired certain assets of Raydiance, Inc. \("Raydiance"\) for approximately $5.0 million, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.25 Td (transaction costs. Raydiance manufactured complete tools and lasers for ultrafast processing systems and subsystems in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.25 Td (precision micromachining processing market. ) Tj ET Q q 0 0 0 rg BT 235.04 74.25 Td (The Raydiance assets have been included in our Specialty Lasers and Systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.25 Td (segment.) Tj ET Q endstream endobj 37 0 obj <>] /Rotate 0 /Contents 38 0 R>> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 742.10 Td (In July 2015, we acquired the assets and certain liabilities of the ) Tj ET Q q 0 0 0 rg BT 330.85 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 336.61 742.10 Td (insley Optics \("T) Tj ET Q q 0 0 0 rg BT 404.78 742.10 Td (insley"\) business from L-3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (Communications Corporation for approximately $4.3 million, excluding transaction costs. ) Tj ET Q q 0 0 0 rg BT 413.09 730.10 Td (T) Tj ET Q q 0 0 0 rg BT 418.85 730.10 Td (insley is a specialized manufacturer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (of high precision optical components and subsystems sold primarily in the aerospace and defense industry) Tj ET Q q 0 0 0 rg BT 473.70 718.10 Td (. ) Tj ET Q q 0 0 0 rg BT 478.52 718.10 Td (T) Tj ET Q q 0 0 0 rg BT 484.27 718.10 Td (insley ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (manufactures the lar) Tj ET Q q 0 0 0 rg BT 131.45 706.10 Td (ge form factor optics for our excimer laser annealing systems. ) Tj ET Q q 0 0 0 rg BT 381.46 706.10 Td (The ) Tj ET Q q 0 0 0 rg BT 399.32 706.10 Td (T) Tj ET Q q 0 0 0 rg BT 405.08 706.10 Td (insley assets have been included in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (Specialty Lasers and Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 674.10 Td (Please refer to "Note3. Business Combinations" of Notes to Consolidated Financial Statements under Item15 of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (annual report for further discussion of recent acquisitions completed.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 Td (GOVERNMENT) Tj ET Q q 0 0 0 rg BT 123.71 642.10 Td ( REGULA) Tj ET Q q 0 0 0 rg BT 168.25 642.10 Td (TION) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (Environmental regulation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 602.10 Td (Our operations are subject to various federal, state, local and foreign environmental regulations relating to the use, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (storage, handling and disposal of regulated materials, chemicals, various radioactive materials and certain waste products. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (the United States, we are subject to the federal regulation and control of the Environmental Protection ) Tj ET Q q 0 0 0 rg BT 459.59 578.10 Td (Agency) Tj ET Q q 0 0 0 rg BT 490.04 578.10 Td (. Comparable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (authorities are involved in other countries. Such rules are subject to change by the governing agency and we monitor those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (changes closely) Tj ET Q q 0 0 0 rg BT 112.38 554.10 Td (. ) Tj ET Q q 0 0 0 rg BT 117.20 554.10 Td (W) Tj ET Q q 0 0 0 rg BT 125.84 554.10 Td (e expect all operations to meet the legal and regulatory environmental requirements and believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (compliance with those regulations will not have a material adverse ef) Tj ET Q q 0 0 0 rg BT 326.94 542.10 Td (fect on our capital expenditures, earnings and competitive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (and financial position.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 510.10 Td (Although we believe that our safety procedures for using, handling, storing and disposing of such materials comply with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (the standards required by federal and state laws and regulations, we cannot completely eliminate the risk of accidental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (contamination or injury from these materials. In the event of such an accident involving such materials, we could be liable for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (damages and such liability could exceed the amount of our liability insurance coverage and the resources of our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 454.10 Td (e may face the potential of increasing complexity in our product designs and procurement operations due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (evolving nature of product compliance standards. ) Tj ET Q q 0 0 0 rg BT 250.03 442.10 Td (Those standards may impact the material composition of our products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (entering specific markets. Such regulations went into ef) Tj ET Q q 0 0 0 rg BT 272.53 430.10 Td (fect in the European Union \("EU"\) in 2006, \(The Restriction of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (Hazardous Substances Directive \(RoHS\)\) and 2007 \(Registration, Evaluation, ) Tj ET Q q 0 0 0 rg BT 363.26 418.10 Td (Authorisation and Restriction of Chemicals ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (\(REACH\)\), and China in 2007 \(Management Methods for Controlling Pollution Caused by Electronic Information Products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (Regulation \(China-RoHS\)\), and the US Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 261.18 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 269.82 394.10 Td (all Street Reform and Consumer Protection ) Tj ET Q q 0 0 0 rg BT 444.79 394.10 Td (Act of 2010. Furthermore, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (we could face costs and liabilities in connection with product take-back legislation. Beginning in 2006, the EU ) Tj ET Q q 0 0 0 rg BT 494.99 382.10 Td (W) Tj ET Q q 0 0 0 rg BT 503.62 382.10 Td (aste Electrical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (and Electronic Equipment Directive made producers of electrical goods financially responsible for specified collection, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (recycling, treatment and disposal of past and future covered products. Similar laws are now pending in various jurisdictions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (around the world, including the United States.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (Environmental liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 306.10 Td (Our operations are subject to various laws and regulations governing the environment, including the dischar) Tj ET Q q 0 0 0 rg BT 504.15 306.10 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (pollutants and the management and disposal of hazardous substances. ) Tj ET Q q 0 0 0 rg BT 330.49 294.10 Td (As a result of our historic as well as on-going operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (we could incur substantial costs, including remediation costs. ) Tj ET Q q 0 0 0 rg BT 297.55 282.10 Td (The costs under environmental laws and the timing of these costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 Td (are dif) Tj ET Q q 0 0 0 rg BT 75.63 270.10 Td (ficult to predict. Our accruals for such costs and liabilities may not be adequate because the estimates on which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (accruals are based depend on a number of factors including the nature of the matter) Tj ET Q q 0 0 0 rg BT 382.79 258.10 Td (, the complexity of the site, site geology) Tj ET Q q 0 0 0 rg BT 542.39 258.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.10 Td (nature and extent of contamination, the type of remedy) Tj ET Q q 0 0 0 rg BT 268.99 246.10 Td (, the outcome of discussions with regulatory agencies and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.10 Td (Potentially Responsible Parties \(PRPs\) at multi-party sites and the number and financial viability of other PRPs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 214.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 214.10 Td (e further discuss the impact of environmental regulation under "Risk Factors" in Item 1A) Tj ET Q q 0 0 0 rg BT 438.22 214.10 Td ( "Compliance or the failure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (to comply with current and future environmental regulations could cause us significant expense.") Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (SEGMENT) Tj ET Q q 0 0 0 rg BT 99.83 182.10 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 150.47 182.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 162.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 162.10 Td (e are or) Tj ET Q q 0 0 0 rg BT 112.43 162.10 Td (ganized into two operating segments: SLS and CLC. ) Tj ET Q q 0 0 0 rg BT 325.28 162.10 Td (This segmentation reflects the go-to-market strategies for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (various products and markets. ) Tj ET Q q 0 0 0 rg BT 172.29 150.10 Td (While both segments deliver cost-ef) Tj ET Q q 0 0 0 rg BT 316.51 150.10 Td (fective photonics solutions, SLS develops and manufactures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (configurable, advanced performance products lar) Tj ET Q q 0 0 0 rg BT 246.11 138.10 Td (gely serving the microelectronics, scientific research and government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (programs and OEM components and instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 301.44 126.10 Td (The size and complexity of many of the SLS products require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (service to be performed at the customer site by factory-trained field service engineers. CLC focuses on higher volume products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (that are of) Tj ET Q q 0 0 0 rg BT 90.35 102.10 Td (fered in set configurations. ) Tj ET Q q 0 0 0 rg BT 199.86 102.10 Td (The product architectures are designed for easy exchange at the point of use such that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (substantially all product service and repairs are based upon advanced replacement and depot \(i.e.,factory\) repair) Tj ET Q q 0 0 0 rg BT 499.25 90.10 Td (. CLC's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (primary markets include materials processing, OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 58.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 58.10 Td (e have identified SLS and CLC as operating segments for which discrete financial information was available. Both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (units have dedicated engineering, manufacturing, product business management and product line management functions. ) Tj ET Q q 0 0 0 rg BT 535.41 46.10 Td (A) Tj ET Q q 0 0 0 rg BT 542.08 46.10 Td ( ) Tj ET Q endstream endobj 39 0 obj <>] /Rotate 0 /Contents 40 0 R>> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (small portion of our outside revenue is attributable to projects and recently developed products for which a segment has not yet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (been determined. ) Tj ET Q q 0 0 0 rg BT 121.18 730.10 Td (The associated direct and indirect costs are presented in the category of Corporate and other) Tj ET Q q 0 0 0 rg BT 488.40 730.10 Td (, along with other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (corporate costs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 106.12 698.10 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 156.76 698.10 Td (TION ) Tj ET Q q 0 0 0 rg BT 184.27 698.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 219.65 698.10 Td ( FOREIGN ) Tj ET Q q 0 0 0 rg BT 270.77 698.10 Td (AND DOMESTIC OPERA) Tj ET Q q 0 0 0 rg BT 386.14 698.10 Td (TIONS ) Tj ET Q q 0 0 0 rg BT 419.21 698.10 Td (AND EXPOR) Tj ET Q q 0 0 0 rg BT 478.03 698.10 Td (T) Tj ET Q q 0 0 0 rg BT 484.52 698.10 Td ( SALES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 678.10 Td (Financial information relating to foreign and domestic operations for fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.73 678.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.73 678.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.73 678.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.73 678.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.17 678.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.17 678.10 Td (, is set forth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 Td (Note15, "Segment and Geographic Information" of our Notes to Consolidated Financial Statements under Item15 of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 Td (annual report.) Tj ET Q endstream endobj 41 0 obj <>] /Rotate 0 /Contents 42 0 R>> endobj 42 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (ITEM 1A. RISK F) Tj ET Q q 0 0 0 rg BT 128.21 742.25 Td (ACT) Tj ET Q q 0 0 0 rg BT 149.14 742.25 Td (ORS) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 72.00 722.25 Td (Y) Tj ET Q q 0 0 0 rg BT 76.64 722.25 Td (ou should car) Tj ET Q q 0 0 0 rg BT 131.27 722.25 Td (efully consider the followings risks when considering an investment in our Common Stock. These risks ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 710.25 Td (could materially affect our business, r) Tj ET Q q 0 0 0 rg BT 201.34 710.25 Td (esults of operations or financial condition, cause the trading price of our Common Stock ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (to decline materially or cause our actual r) Tj ET Q q 0 0 0 rg BT 218.82 698.25 Td (esults to differ materially fr) Tj ET Q q 0 0 0 rg BT 328.45 698.25 Td (om those expected or those expr) Tj ET Q q 0 0 0 rg BT 456.64 698.25 Td (essed in any forwar) Tj ET Q q 0 0 0 rg BT 534.88 698.25 Td (d-) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (looking statements made by us. These risks ar) Tj ET Q q 0 0 0 rg BT 234.94 686.25 Td (e not exclusive, and additional risks to which we ar) Tj ET Q q 0 0 0 rg BT 440.10 686.25 Td (e subject include, but ar) Tj ET Q q 0 0 0 rg BT 536.10 686.25 Td (e not ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (limited to, the factors mentioned under Forwar) Tj ET Q q 0 0 0 rg BT 243.28 674.25 Td (d-Looking Statements and the risk of our businesses described elsewher) Tj ET Q q 0 0 0 rg BT 535.94 674.25 Td (e in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (this annual r) Tj ET Q q 0 0 0 rg BT 100.25 662.25 Td (eport. ) Tj ET Q q 0 0 0 rg BT 126.17 662.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 175.06 662.25 Td (, these risks and uncertainties described her) Tj ET Q q 0 0 0 rg BT 351.05 662.25 Td (ein ar) Tj ET Q q 0 0 0 rg BT 374.29 662.25 Td (e not the only ones facing us. Other events ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (that we do not curr) Tj ET Q q 0 0 0 rg BT 125.79 650.25 Td (ently anticipate or that we curr) Tj ET Q q 0 0 0 rg BT 250.13 650.25 Td (ently deem immaterial also may affect our business, r) Tj ET Q q 0 0 0 rg BT 463.89 650.25 Td (esults of operations or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (financial condition.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 49.5 611.28505859375 m 282.5224609375 611.28505859375 l s q 0 0 0 rg BT 49.50 612.85 Td (RISKS RELA) Tj ET Q q 0 0 0 rg BT 109.06 612.85 Td (TED ) Tj ET Q q 0 0 0 rg BT 131.94 612.85 Td (T) Tj ET Q q 0 0 0 rg BT 138.43 612.85 Td (O ) Tj ET Q q 0 0 0 rg BT 148.52 612.85 Td (THE MERGER ) Tj ET Q q 0 0 0 rg BT 219.46 612.85 Td (WITH ROFIN) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 592.85 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 592.85 Td (e may not be able to integrate the business of Rofin successfully with our own or realize the anticipated benefits of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 580.85 Td (merger) Tj ET Q q 0 0 0 rg BT 78.39 580.85 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 560.85 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 560.85 Td (e will be required to devote significant management attention and resources to integrating our business practices with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.85 Td (those of Rofin. Potential dif) Tj ET Q q 0 0 0 rg BT 160.70 548.85 Td (ficulties that we may encounter as part of the integration process include the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 528.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 528.85 Td (the inability to successfully combine our business with Rofin in a manner that permits the combined company to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 516.85 Td (achieve the full syner) Tj ET Q q 0 0 0 rg BT 171.12 516.85 Td (gies and other benefits anticipated to result from the mer) Tj ET Q q 0 0 0 rg BT 397.25 516.85 Td (ger;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 496.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 496.85 Td (complexities associated with managing the combined businesses, including dif) Tj ET Q q 0 0 0 rg BT 399.98 496.85 Td (ficulty addressing possible dif) Tj ET Q q 0 0 0 rg BT 520.06 496.85 Td (ferences ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 484.85 Td (in corporate cultures and management philosophies and the challenge of integrating products, services, complex and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 472.85 Td (dif) Tj ET Q q 0 0 0 rg BT 96.43 472.85 Td (ferent information technology systems, technology) Tj ET Q q 0 0 0 rg BT 299.34 472.85 Td (, networks and other assets of each of the companies in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 460.85 Td (cohesive manner; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 440.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 440.85 Td (potential unknown liabilities and unforeseen increased expenses or delays related to the mer) Tj ET Q q 0 0 0 rg BT 453.53 440.85 Td (ger and the integration of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 428.85 Td (Rofin, including as a result of the requirement for holding separate Rofin) Tj ET Q q 0 0 0 rg BT 380.42 428.85 Td (s business located in Hull, England.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 408.85 Td (In addition, we have operated independently prior to the mer) Tj ET Q q 0 0 0 rg BT 314.51 408.85 Td (ger and it is possible that the integration process following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.85 Td (the mer) Tj ET Q q 0 0 0 rg BT 79.58 396.85 Td (ger could result in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 376.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 376.85 Td (diversion of the attention of our management; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 356.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 356.85 Td (the disruption of, or the loss of momentum in, our business or inconsistencies in standards, controls, procedures or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 344.85 Td (policies, any of which could adversely af) Tj ET Q q 0 0 0 rg BT 249.43 344.85 Td (fect our ability to maintain relationships with customers, suppliers, employees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 332.85 Td (and other constituencies or our ability to achieve the anticipated benefits of the mer) Tj ET Q q 0 0 0 rg BT 418.81 332.85 Td (ger) Tj ET Q q 0 0 0 rg BT 431.18 332.85 Td (, or could reduce our earnings or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 320.85 Td (otherwise adversely af) Tj ET Q q 0 0 0 rg BT 175.28 320.85 Td (fect our business and financial results. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 300.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 300.85 Td (In addition, prior to the mer) Tj ET Q q 0 0 0 rg BT 196.40 300.85 Td (ger) Tj ET Q q 0 0 0 rg BT 208.77 300.85 Td (, Rofin) Tj ET Q q 0 0 0 rg BT 239.33 300.85 Td (s business faced risks and uncertainties, including those faced by our business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 288.85 Td (and identified below) Tj ET Q q 0 0 0 rg BT 167.05 288.85 Td (. Rofin) Tj ET Q q 0 0 0 rg BT 197.60 288.85 Td (s business may not meet future expectations due to these factors despite our integration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 276.85 Td (ef) Tj ET Q q 0 0 0 rg BT 93.09 276.85 Td (forts.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 256.85 Td (Our future results will suf) Tj ET Q q 0 0 0 rg BT 156.58 256.85 Td (fer if we do not ef) Tj ET Q q 0 0 0 rg BT 228.88 256.85 Td (fectively manage our expanded operations following the merger) Tj ET Q q 0 0 0 rg BT 490.81 256.85 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 236.85 Td (Following the mer) Tj ET Q q 0 0 0 rg BT 145.70 236.85 Td (ger) Tj ET Q q 0 0 0 rg BT 158.07 236.85 Td (, the size of the business of the combined company has increased significantly) Tj ET Q q 0 0 0 rg BT 469.83 236.85 Td (. Our future success ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.85 Td (depends, in part, upon our ability to manage this expanded business, which will pose substantial challenges for management, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.85 Td (including challenges related to the management and monitoring of new operations and associated increased costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.85 Td (complexity) Tj ET Q q 0 0 0 rg BT 93.84 200.85 Td (. ) Tj ET Q q 0 0 0 rg BT 98.66 200.85 Td (There can be no assurances that we will be successful or that we will realize the expected syner) Tj ET Q q 0 0 0 rg BT 479.71 200.85 Td (gies and benefits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.85 Td (anticipated from the mer) Tj ET Q q 0 0 0 rg BT 147.89 188.85 Td (ger) Tj ET Q q 0 0 0 rg BT 160.11 188.85 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 168.85 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 168.85 Td (e have incurred and will continue to incur substantial expenses related to the merger with and the integration of Rofin.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 148.85 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 148.85 Td (e have and expect to continue to incur substantial expenses in connection with the mer) Tj ET Q q 0 0 0 rg BT 425.91 148.85 Td (ger and the integration of Rofin. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.85 Td (There are a lar) Tj ET Q q 0 0 0 rg BT 107.33 136.85 Td (ge number of processes, policies, procedures, operations, technologies and systems that will need to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.85 Td (integrated, including purchasing, accounting and finance, sales, payroll, pricing, marketing and employee benefits. ) Tj ET Q q 0 0 0 rg BT 510.28 124.85 Td (While we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.85 Td (have assumed that a certain level of expenses will be incurred, there are many factors beyond our control that could af) Tj ET Q q 0 0 0 rg BT 521.63 112.85 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.85 Td (total amount or the timing of the integration expenses. Moreover) Tj ET Q q 0 0 0 rg BT 307.92 100.85 Td (, many of the expenses that will be incurred are, by their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.85 Td (nature, dif) Tj ET Q q 0 0 0 rg BT 90.41 88.85 Td (ficult to estimate accurately) Tj ET Q q 0 0 0 rg BT 200.54 88.85 Td (. ) Tj ET Q q 0 0 0 rg BT 205.36 88.85 Td (These expenses could, particularly in the near term, exceed the savings we expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 76.85 Td (achieve from the elimination of duplicative expenses and the realization of economies of scale and cost savings. ) Tj ET Q q 0 0 0 rg BT 499.72 76.85 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 64.85 Td (integration expenses could result in significant char) Tj ET Q q 0 0 0 rg BT 255.37 64.85 Td (ges to earnings which we cannot currently quantify) Tj ET Q q 0 0 0 rg BT 459.38 64.85 Td (. ) Tj ET Q endstream endobj 43 0 obj <>] /Rotate 0 /Contents 44 0 R>> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (19) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Charges to earnings resulting from the application of the purchase method of accounting to the Rofin acquisition may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (adversely af) Tj ET Q q 0 0 0 rg BT 98.46 730.25 Td (fect our results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 710.25 Td (In accordance with generally accepted accounting principles, we will account for the Rofin acquisition using the purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (method of accounting, which will result in char) Tj ET Q q 0 0 0 rg BT 238.71 698.25 Td (ges to earnings that could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 447.61 698.25 Td (fect on the market value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (our common stock following completion of the acquisition. Under the purchase method of accounting, we will allocate the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (purchase price of Rofin) Tj ET Q q 0 0 0 rg BT 146.41 674.25 Td (s net tangible and identifiable intangible assets based upon their estimated fair values at the acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (date. ) Tj ET Q q 0 0 0 rg BT 70.97 662.25 Td (The excess of the purchase price over net tangible and identifiable intangible assets will be recorded as goodwill. ) Tj ET Q q 0 0 0 rg BT 525.36 662.25 Td (W) Tj ET Q q 0 0 0 rg BT 534.00 662.25 Td (e will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (incur additional depreciation and amortization expense over the useful lives of certain of the net tangible and intangible assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (acquired in connection with the acquisition. In addition, to the extent the value of goodwill or intangible assets with indefinite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (lives becomes impaired, we may be required to incur material char) Tj ET Q q 0 0 0 rg BT 316.16 626.25 Td (ges relating to the impairment of those assets. ) Tj ET Q q 0 0 0 rg BT 501.21 626.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (depreciation, amortization and potential impairment char) Tj ET Q q 0 0 0 rg BT 277.01 614.25 Td (ges could have a material impact on our results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 594.25 Td (Our indebtedness following the merger is substantially greater than our indebtedness prior to the merger) Tj ET Q q 0 0 0 rg BT 479.55 594.25 Td (. This increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 582.25 Td (level of indebtedness could adversely af) Tj ET Q q 0 0 0 rg BT 211.22 582.25 Td (fect us, including by decreasing our business flexibility) Tj ET Q q 0 0 0 rg BT 436.97 582.25 Td (, and will increase our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 570.25 Td (borrowing costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 550.25 Td (In November 2016 we entered into the Credit ) Tj ET Q q 0 0 0 rg BT 255.34 550.25 Td (Agreement which provides for a 670 million Euro term loan, all of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (has been drawn, and a $100 million revolving credit facility) Tj ET Q q 0 0 0 rg BT 288.23 538.25 Td (, under which a 10 million Euro letter of credit has been issued. ) Tj ET Q q 0 0 0 rg BT 544.36 538.25 Td (W) Tj ET Q q 0 0 0 rg BT 553.00 538.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (may incur additional indebtedness in the future by accessing the revolving credit facility under the Credit ) Tj ET Q q 0 0 0 rg BT 472.15 526.25 Td (Agreement and/or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (entering into new financing arrangements. Our ability to pay interest and repay the principal of our current indebtedness is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (dependent upon our ability to manage our business operations and the ongoing interest rate environment. ) Tj ET Q q 0 0 0 rg BT 471.44 502.25 Td (There can be no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (assurance that we will be able to manage any of these risks successfully) Tj ET Q q 0 0 0 rg BT 335.98 490.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 470.25 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 116.49 470.25 Td (Agreement contains customary af) Tj ET Q q 0 0 0 rg BT 250.98 470.25 Td (firmative covenants, including covenants regarding the payment of taxes and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (other obligations, maintenance of insurance, reporting requirements and compliance with applicable laws and regulations, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (negative covenants, including covenants limiting the ability of us and our subsidiaries to, among other things, incur debt, grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (liens, make investments, make certain restricted payments, transact with af) Tj ET Q q 0 0 0 rg BT 348.66 434.25 Td (filiates, and sell assets. ) Tj ET Q q 0 0 0 rg BT 442.35 434.25 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 487.34 434.25 Td (Agreement also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (requires us and our subsidiaries to maintain a senior secured net leverage ratio as of the last day of each fiscal quarter of less of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (than or equal to 3.50 to 1.00.) Tj ET Q q 0 0 0 rg BT 169.58 410.25 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 214.57 410.25 Td (Agreement contains customary events of default that include, among other things, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (payment defaults, cross defaults with certain other indebtedness, violation of covenants, inaccuracy of representations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (warranties in any material respect, change in control of the Company and the Borrower) Tj ET Q q 0 0 0 rg BT 397.86 386.25 Td (, judgment defaults, and bankruptcy and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (insolvency events.If an event of default exists, the lenders may require the immediate payment of all Obligations, as defined in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (the Credit ) Tj ET Q q 0 0 0 rg BT 91.16 362.25 Td (Agreement, and may exercise certain other rights and remedies provided for under the Credit ) Tj ET Q q 0 0 0 rg BT 465.19 362.25 Td (Agreement, the other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (loan documents and applicable law) Tj ET Q q 0 0 0 rg BT 189.36 350.25 Td (. ) Tj ET Q q 0 0 0 rg BT 194.18 350.25 Td (The acceleration of such obligations is automatic upon the occurrence of a bankruptcy and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (insolvency event of default. ) Tj ET Q q 0 0 0 rg BT 162.89 338.25 Td (There can be no assurance that we will have suf) Tj ET Q q 0 0 0 rg BT 354.02 338.25 Td (ficient financial resources or we will be able to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (arrange financing to repay our borrowings at such time. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 306.25 Td (Our substantially increased indebtedness and higher debt-to-equity ratio following completion of the mer) Tj ET Q q 0 0 0 rg BT 492.26 306.25 Td (ger in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.25 Td (comparison to that prior to the mer) Tj ET Q q 0 0 0 rg BT 188.73 294.25 Td (ger will have the ef) Tj ET Q q 0 0 0 rg BT 265.74 294.25 Td (fect, among other things, of reducing our flexibility to respond to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.25 Td (changing business and economic conditions and will increase our borrowing costs. In addition, the amount of cash required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.25 Td (service our increased indebtedness levels and thus the demands on our cash resources will be greater than the amount of cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.25 Td (flows required to service our indebtedness or that of Rofin individually prior to the mer) Tj ET Q q 0 0 0 rg BT 398.68 258.25 Td (ger) Tj ET Q q 0 0 0 rg BT 410.90 258.25 Td (. ) Tj ET Q q 0 0 0 rg BT 415.72 258.25 Td (The increased levels of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.25 Td (indebtedness could also reduce funds available for our investments in product development as well as capital expenditures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.25 Td (dividends, share repurchases and other activities and may create competitive disadvantages for us relative to other companies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.25 Td (with lower debt levels.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 202.25 Td (e may not be able to divest the Rofin business located in Hull, England on favorable terms.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 182.25 Td (On October26, 2016, the European Commission approved under the EU Mer) Tj ET Q q 0 0 0 rg BT 382.03 182.25 Td (ger Regulation our acquisition of Rofin, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.25 Td (conditional on the divestment of Rofin) Tj ET Q q 0 0 0 rg BT 206.98 170.25 Td (s low power CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 272.25 168.82 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 170.25 Td ( laser business based in Hull, United Kingdom \(the Hull Business\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.25 Td (after the closing of the acquisition.) Tj ET Q q 0 0 0 rg BT 190.67 158.25 Td (W) Tj ET Q q 0 0 0 rg BT 199.30 158.25 Td (e are required to hold the Hull Business separate until such time as it is divested. During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.25 Td (fiscal years 2013 through 2015, the Hull Business had annual revenues of approximately 23-25 million British Pound Sterling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.25 Td (and, accordingly) Tj ET Q q 0 0 0 rg BT 115.49 134.25 Td (, we will not have the revenue from the Hull Business once it is sold. If we are unable to successfully timely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.25 Td (divest the Hull Business or if the European Commission does not approve a proposed sale thereof, then a divestiture trustee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.25 Td (may be appointed by the European Commission and the terms for any sale of the Hull Business will be at the discretion of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.25 Td (trustee. During the period of time in which we are holding the Hull Business separate, the conditions for such structure may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.25 Td (a distraction on certain members of our senior management team.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 49.5 44.68505859375 m 297.9130859375 44.68505859375 l s q 0 0 0 rg BT 49.50 46.25 Td (BUSINESS ENVIRONMENT) Tj ET Q q 0 0 0 rg BT 177.41 46.25 Td ( ) Tj ET Q q 0 0 0 rg BT 179.35 46.25 Td (AND INDUSTR) Tj ET Q q 0 0 0 rg BT 248.18 46.25 Td (Y) Tj ET Q q 0 0 0 rg BT 255.03 46.25 Td ( ) Tj ET Q q 0 0 0 rg BT 257.35 46.25 Td (TRENDS) Tj ET Q endstream endobj 45 0 obj <>] /Rotate 0 /Contents 46 0 R>> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (20) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Our operating results, including net sales, net income \(loss\) and adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 389.28 742.25 Td ( in dollars and as a percentage of net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (sales, as well as our stock price have varied in the past, and our future operating results, including those results from the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (newly acquired Rofin business, will continue to be subject to quarterly and annual fluctuations based upon numerous ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (factors, including those discussed in this Item 1A) Tj ET Q q 0 0 0 rg BT 251.20 706.25 Td ( and throughout this report. Our stock price will continue to be subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (daily variations as well. Our future operating results and stock price may not follow any past trends or meet our guidance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (and expectations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 662.25 Td (Our net sales and operating results, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 321.11 662.25 Td ( percentage, net income \(loss\) and operating expenses, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (our stock price have varied in the past and may vary significantly from quarter to quarter and from year to year in the future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 638.25 Td (e believe a number of factors, many of which are outside of our control, could cause these variations and make them dif) Tj ET Q q 0 0 0 rg BT 536.96 638.25 Td (ficult ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (to predict, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 606.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 606.25 Td (general economic uncertainties in the macroeconomic and local economies facing us, our customers and the markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 594.25 Td (we serve;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 574.25 Td (fluctuations in demand for our products or downturns in the industries that we serve;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 554.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 554.25 Td (the ability of our suppliers, both internal and external, to produce and deliver components and parts, including sole or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 542.25 Td (limited source components, in a timely manner) Tj ET Q q 0 0 0 rg BT 273.11 542.25 Td (, in the quantity) Tj ET Q q 0 0 0 rg BT 335.23 542.25 Td (, quality and prices desired;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 522.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 522.25 Td (the timing of receipt and conversion of bookings to net sales;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 502.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 502.25 Td (the concentration of a significant amount of our backlog, and resultant net sales, with a few customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 482.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 482.25 Td (rescheduling of shipments or cancellation of orders by our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 462.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 462.25 Td (fluctuations in our product mix;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 442.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 442.25 Td (the ability of our customers' other suppliers to provide suf) Tj ET Q q 0 0 0 rg BT 316.80 442.25 Td (ficient material to support our customers' products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 422.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 422.25 Td (currency fluctuations and stability) Tj ET Q q 0 0 0 rg BT 221.20 422.25 Td (, in particular the Euro, the Japanese ) Tj ET Q q 0 0 0 rg BT 368.83 422.25 Td (Y) Tj ET Q q 0 0 0 rg BT 375.05 422.25 Td (en, the South Korean ) Tj ET Q q 0 0 0 rg BT 461.79 422.25 Td (W) Tj ET Q q 0 0 0 rg BT 470.43 422.25 Td (on, the Chinese RMB ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 410.25 Td (and the US dollar as compared to other currencies;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 390.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 390.25 Td (commodity pricing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 370.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 370.25 Td (introductions of new products and product enhancements by our competitors, entry of new competitors into our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 358.25 Td (markets, pricing pressures and other competitive factors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 338.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 338.25 Td (our ability to develop, introduce, manufacture and ship new and enhanced products in a timely manner without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 326.25 Td (defects;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 306.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 306.25 Td (our ability to successfully expand our manufacturing capacity in Gttingen, Germany and add optics fabrication ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 294.25 Td (capacity at our site in Richmond, California;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 274.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 274.25 Td (our ability to manage our manufacturing capacity and that of our suppliers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 254.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 254.25 Td (our reliance on contract manufacturing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 234.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 234.25 Td (the rate of market acceptance of our new products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 214.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 214.25 Td (the ability of our customers to pay for our products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 194.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 194.25 Td (expenses associated with acquisition-related activities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 174.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 174.25 Td (seasonal sales trends;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 154.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 154.25 Td (access to applicable credit markets by us, our customers and their end customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 134.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 134.25 Td (delays or reductions in customer purchases of our products in anticipation of the introduction of new and enhanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 122.25 Td (products by us or our competitors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 102.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 102.25 Td (our ability to control expenses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 82.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 82.25 Td (the level of capital spending of our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 62.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 62.25 Td (potential excess and/or obsolescence of our inventory;) Tj ET Q endstream endobj 47 0 obj <>] /Rotate 0 /Contents 48 0 R>> endobj 48 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 742.10 Td (costs and timing of adhering to current and developing governmental regulations and reviews relating to our products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 730.10 Td (and business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 710.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 710.10 Td (costs related to acquisitions of technology or businesses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 690.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 690.10 Td (impairment of goodwill, intangible assets and other long-lived assets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 670.10 Td (our ability to meet our expectations and forecasts and those of public market analysts and investors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 650.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 650.10 Td (the availability of research funding by governments with regard to our customers in the scientific business, such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 638.10 Td (universities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 618.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 618.10 Td (continued government spending on defense-related projects where we are a subcontractor;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 598.10 Td (maintenance of supply relating to products sold to the government on terms which we would prefer not to accept;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 578.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 578.10 Td (changes in policy) Tj ET Q q 0 0 0 rg BT 154.83 578.10 Td (, interpretations, or challenges to the allowability of costs incurred under government cost accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 566.10 Td (standards;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 546.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 546.10 Td (damage to our reputation as a result of coverage in social media, Internet blogs or other media outlets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 526.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 526.10 Td (managing our and other parties' compliance with contracts in multiple languages and jurisdictions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 506.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 506.10 Td (managing our internal and third party sales representatives and distributors, including compliance with all applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 494.10 Td (laws;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 474.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 474.10 Td (impact of government economic policies on macroeconomic conditions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 454.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 454.10 Td (costs and expenses from litigation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 434.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 434.10 Td (costs associated with designing around or payment of licensing fees associated with issued patents in our fields of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 422.10 Td (business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 402.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 402.10 Td (government support of alternative ener) Tj ET Q q 0 0 0 rg BT 240.82 402.10 Td (gy industries, such as solar;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 382.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 382.10 Td (negative impacts related to the recent Brexit vote by the United Kingdom, particularly with regard to sales from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 370.10 Td (Glasgow) Tj ET Q q 0 0 0 rg BT 120.40 370.10 Td (, Scotland facility to other jurisdictions and purchases of supplies from outside the United Kingdom by such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 358.10 Td (facility; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 338.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 338.10 Td (the future impact of legislation, rulemaking, and changes in accounting, tax, defense procurement, or export policies; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 326.10 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 306.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 306.10 Td (distraction of management related to acquisition or divestment activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 286.10 Td (In addition, we often recognize a substantial portion of our sales in the last month of our fiscal quarters. Our expenses for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (any given quarter are typically based on expected sales and if sales are below expectations in any given quarter) Tj ET Q q 0 0 0 rg BT 493.37 274.10 Td (, the adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (impact of the shortfall on our operating results may be magnified by our inability to adjust spending quickly enough to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (compensate for the shortfall. ) Tj ET Q q 0 0 0 rg BT 166.22 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 174.86 250.10 Td (e also base our manufacturing on our forecasted product mix for the quarter) Tj ET Q q 0 0 0 rg BT 476.98 250.10 Td (. If the actual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (product mix varies significantly from our forecast, we may not be able to fill some orders during that quarter) Tj ET Q q 0 0 0 rg BT 483.69 238.10 Td (, which would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (result in delays in the shipment of our products. ) Tj ET Q q 0 0 0 rg BT 242.25 226.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 291.58 226.10 Td (, variations in timing of sales, particularly for our higher priced, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (higher mar) Tj ET Q q 0 0 0 rg BT 92.91 214.10 Td (gin products, can cause significant fluctuations in quarterly operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 194.10 Td (Due to these and other factors, such as varying product mix, we believe that quarter) Tj ET Q q 0 0 0 rg BT 406.13 194.10 Td (-to-quarter and year) Tj ET Q q 0 0 0 rg BT 485.33 194.10 Td (-to-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (comparisons of our historical operating results may not be meaningful. ) Tj ET Q q 0 0 0 rg BT 334.90 182.10 Td (Y) Tj ET Q q 0 0 0 rg BT 341.12 182.10 Td (ou should not rely on our results for any quarter or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (year as an indication of our future performance. Our operating results in future quarters and years may be below public market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (analysts' or investors' expectations, which would likely cause the price of our stock to fall. In addition, over the past several ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (years, U.S. and global equity markets have experienced significant price and volume fluctuations that have af) Tj ET Q q 0 0 0 rg BT 486.95 146.10 Td (fected the stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (prices of many technology companies both in and outside our industry) Tj ET Q q 0 0 0 rg BT 330.46 134.10 Td (. ) Tj ET Q q 0 0 0 rg BT 335.28 134.10 Td (There has not always been a direct correlation between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (this volatility and the performance of particular companies subject to these stock price fluctuations. ) Tj ET Q q 0 0 0 rg BT 448.91 122.10 Td (These factors, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (general economic and political conditions or investors' concerns regarding the credibility of corporate financial statements, may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (have a material adverse ef) Tj ET Q q 0 0 0 rg BT 153.70 98.10 Td (fect on the market price of our stock in the future.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 78.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 78.10 Td (e depend on sole source or limited source suppliers, both internal and external, for some of our key components and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 66.10 Td (materials, including exotic materials, certain cutting-edge optics and crystals, in our products, which make us susceptible to ) Tj ET Q endstream endobj 49 0 obj <>] /Rotate 0 /Contents 50 0 R>> endobj 50 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (22) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (supply shortages or price fluctuations that could adversely af) Tj ET Q q 0 0 0 rg BT 299.88 742.25 Td (fect our business, particularly our ability to meet our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (customers' delivery requirements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 710.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 710.25 Td (e currently purchase several key components and materials used in the manufacture of our products from sole source or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (limited source suppliers, both internal and external. In particular) Tj ET Q q 0 0 0 rg BT 306.24 698.25 Td (, from time-to-time our customers require us to ramp up ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (production and/or accelerate delivery schedules of our products. Our key suppliers may not have the ability to increase their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (production in line with our customers) Tj ET Q q 0 0 0 rg BT 202.34 674.25 Td ( demands. ) Tj ET Q q 0 0 0 rg BT 245.21 674.25 Td (This can become acute during times of high growth in our customers) Tj ET Q q 0 0 0 rg BT 523.01 674.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (businesses. Our failure to timely receive these key components and materials would likely cause delays in the shipment of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (products, which would likely negatively impact both our customers and our business. Some of these suppliers are relatively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (small private companies that may discontinue their operations at any time and which may be particularly susceptible to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (prevailing economic conditions. Some of our suppliers are located in regions which may be susceptible to natural disasters, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (such as the flooding in ) Tj ET Q q 0 0 0 rg BT 142.36 614.25 Td (Thailand and the earthquake, tsunami and resulting nuclear disaster in Japan and severe flooding and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (power loss in the Eastern part of the United States in recent years. Some may be vulnerable to man-made disasters, such as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (recent worldwide shortage of neon gas as a result of the conflict in Ukraine. ) Tj ET Q q 0 0 0 rg BT 355.05 590.25 Td (W) Tj ET Q q 0 0 0 rg BT 363.68 590.25 Td (e typically purchase our components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (materials through purchase orders or agreed upon terms and conditions and we do not have guaranteed supply arrangements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (with many of these suppliers. For certain long-lead time supplies or in order to lock-in pricing, we may be obligated to place ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (purchase orders which are not cancelable or otherwise assume liability for a lar) Tj ET Q q 0 0 0 rg BT 365.86 554.25 Td (ge amount of the ordered supplies, which limit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (our ability to adjust down our inventory liability in the event of market downturns or other customer cancellations or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (rescheduling of their purchase orders for our products. Some of our products, particularly in the flat panel display industry) Tj ET Q q 0 0 0 rg BT 538.16 530.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (require designs and specifications which are at the cutting-edge of available technologies. Our and our customers' designs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (specifications frequently change to meet rapidly evolving market demands. ) Tj ET Q q 0 0 0 rg BT 352.18 506.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 401.52 506.25 Td (, certain of our products require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (components and supplies which may be technologically dif) Tj ET Q q 0 0 0 rg BT 286.21 494.25 Td (ficult and unpredictable to manufacture. By their very nature, these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (types of components may only be available by a single supplier) Tj ET Q q 0 0 0 rg BT 302.78 482.25 Td (. ) Tj ET Q q 0 0 0 rg BT 307.60 482.25 Td (These characteristics further pressure the timely delivery of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (such components. ) Tj ET Q q 0 0 0 rg BT 123.47 470.25 Td (W) Tj ET Q q 0 0 0 rg BT 132.11 470.25 Td (e may fail to obtain these supplies in a timely manner in the future. ) Tj ET Q q 0 0 0 rg BT 402.14 470.25 Td (W) Tj ET Q q 0 0 0 rg BT 410.77 470.25 Td (e may experience dif) Tj ET Q q 0 0 0 rg BT 494.16 470.25 Td (ficulty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (identifying alternative sources of supply for certain components used in our products and may have to incur expenses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (management distraction in assisting our current and future suppliers to meet our and our customers' technical requirements. ) Tj ET Q q 0 0 0 rg BT 544.87 446.25 Td (W) Tj ET Q q 0 0 0 rg BT 553.50 446.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (would experience further delays while identifying, evaluating and testing the products of these potential alternative suppliers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (Furthermore, financial or other dif) Tj ET Q q 0 0 0 rg BT 186.77 422.25 Td (ficulties faced by these suppliers or significant changes in demand for these components or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (materials could limit their availability) Tj ET Q q 0 0 0 rg BT 199.92 410.25 Td (. ) Tj ET Q q 0 0 0 rg BT 204.74 410.25 Td (W) Tj ET Q q 0 0 0 rg BT 213.38 410.25 Td (e continue to consolidate our supply base and move supplier locations. ) Tj ET Q q 0 0 0 rg BT 498.13 410.25 Td (When we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (transition locations we may increase our inventory of such products as a safety stock during the transition, which may cause ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (the amount of inventory reflected on our balance sheet to increase. ) Tj ET Q q 0 0 0 rg BT 317.73 386.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 367.63 386.25 Td (, many of our customers rely on sole source ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (suppliers. In the event of a disruption of our customers' supply chain, orders from our customers could decrease or be delayed. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 354.25 Td (Any interruption or delay in the supply of any of these components or materials, or the inability to obtain these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.25 Td (components and materials from alternate sources at acceptable prices and within a reasonable amount of time, or our failure to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.25 Td (properly manage these moves, would impair our ability to meet scheduled product deliveries to our customers and could cause ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (customers to cancel orders. ) Tj ET Q q 0 0 0 rg BT 160.67 318.25 Td (W) Tj ET Q q 0 0 0 rg BT 169.30 318.25 Td (e have historically relied exclusively on our own production capability to manufacture certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.25 Td (strategic components, crystals, semiconductor lasers, lasers and laser) Tj ET Q q 0 0 0 rg BT 324.77 306.25 Td (-based systems and recently acquired the capability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.25 Td (manufacture certain lar) Tj ET Q q 0 0 0 rg BT 142.04 294.25 Td (ge format optics. Because we manufacture, package and test these components, products and systems at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.25 Td (our own facilities, and such components, products and systems are not readily available from other sources, any interruption in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.25 Td (manufacturing would adversely af) Tj ET Q q 0 0 0 rg BT 186.21 270.25 Td (fect our business. Since many of our products have lengthy qualification periods, our ability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.25 Td (to introduce multiple suppliers for parts may be limited. In addition, our failure to achieve adequate manufacturing yields of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.25 Td (these items at our manufacturing facilities may materially and adversely af) Tj ET Q q 0 0 0 rg BT 348.09 246.25 Td (fect our operating results and financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 226.25 Td (e participate in the microelectronics market, which requires significant research and development expenses to develop and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (maintain products and a failure to achieve market acceptance for our products could have a significant negative impact on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (our business and results of operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 182.25 Td (The microelectronics market is characterized by rapid technological change, frequent product introductions, the volatility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.25 Td (of product supply and demand, changing customer requirements and evolving industry standards. ) Tj ET Q q 0 0 0 rg BT 441.45 170.25 Td (The nature of this market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.25 Td (requires significant research and development expenses to participate, with substantial resources invested in advance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.25 Td (material sales of our products to our customers in this market. ) Tj ET Q q 0 0 0 rg BT 298.89 146.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 348.79 146.25 Td (, our product of) Tj ET Q q 0 0 0 rg BT 410.82 146.25 Td (ferings may become obsolete given ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.25 Td (the frequent introduction of alternative technologies. In the event either our customers' or our products fail to gain market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.25 Td (acceptance, or the microelectronics market fails to grow) Tj ET Q q 0 0 0 rg BT 273.19 122.25 Td (, it would likely have a significant negative ef) Tj ET Q q 0 0 0 rg BT 456.01 122.25 Td (fect on our business and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.25 Td (results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 90.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 90.25 Td (e participate in the flat panel display market, which has a relatively limited number of end customer manufacturers. Our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 78.25 Td (backlog, timing of net sales and results of operations could be negatively impacted in the event our customers reschedule or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 66.25 Td (cancel orders.) Tj ET Q endstream endobj 51 0 obj <>] /Rotate 0 /Contents 52 0 R>> endobj 52 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 742.10 Td (In the flat panel display market, there are a relatively limited number of manufacturers who are the end customers for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (annealing products. In fiscal 2016, ) Tj ET Q q 0 0 0 rg BT 189.74 730.10 Td (Advanced Process Systems Corporation, an integrator in the flat panel display market based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (in South Korea, and Japanese Steel ) Tj ET Q q 0 0 0 rg BT 192.34 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 200.97 718.10 Td (orks, Ltd., an integrator in the flat panel display market based in Japan, contributed more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (than 10% of our revenue. Given macroeconomic conditions, varying consumer demand and technical process limitations at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (manufacturers, our customers may seek to reschedule or cancel orders. ) Tj ET Q q 0 0 0 rg BT 334.76 694.10 Td (This was recently seen with a requested expedited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (shipment of a Linebeam 1500 product for our third fiscal quarter of 2015, which delivery date was then changed at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (customer) Tj ET Q q 0 0 0 rg BT 86.53 670.10 Td () Tj ET Q q 0 0 0 rg BT 89.30 670.10 Td (s request back to its originally scheduled date in the fourth fiscal quarter of 2015. ) Tj ET Q q 0 0 0 rg BT 416.25 670.10 Td (These lar) Tj ET Q q 0 0 0 rg BT 453.00 670.10 Td (ger flat panel-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (systems have lar) Tj ET Q q 0 0 0 rg BT 115.41 658.10 Td (ge average selling prices. ) Tj ET Q q 0 0 0 rg BT 218.43 658.10 Td (Any rescheduling or canceling of such orders by our customers will likely have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (significant impact on our quarterly or annual net sales and results of operations and could negatively impact inventory values ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (and backlog. ) Tj ET Q q 0 0 0 rg BT 102.54 634.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 152.44 634.10 Td (, challenges in meeting evolving technological requirements for these complex products by us and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (suppliers could also result in delays in shipments, rescheduled or canceled orders by our customers. ) Tj ET Q q 0 0 0 rg BT 450.05 622.10 Td (This could negatively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (impact our backlog, timing of net sales and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 590.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 590.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.15 590.10 Td (, flat panel display systems represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.27 590.10 Td (63%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.60 590.10 Td ( of our backlog, compared to 32% at October 3, 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (Since our backlog includes higher average selling price flat panel display systems, any delays or cancellation of shipments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 178.42 566.10 Td (fect on our financial results.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (Some of our laser systems are complex in design and may contain defects that are not detected until deployed by our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (customers, which could increase our costs and reduce our net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 514.10 Td (Lasers and laser systems are inherently complex in design and require ongoing regular maintenance. ) Tj ET Q q 0 0 0 rg BT 475.85 514.10 Td (The manufacture of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (our lasers, laser products and systems involves a highly complex and precise process. ) Tj ET Q q 0 0 0 rg BT 393.03 502.10 Td (As a result of the technological ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (complexity of our products, in particular the flat panel annealing systems, changes in our or our suppliers' manufacturing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (processes or the inadvertent use of defective materials by us or our suppliers could result in a material adverse ef) Tj ET Q q 0 0 0 rg BT 499.99 478.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (ability to achieve acceptable manufacturing yields and product reliability) Tj ET Q q 0 0 0 rg BT 340.96 466.10 Td (. ) Tj ET Q q 0 0 0 rg BT 345.78 466.10 Td (T) Tj ET Q q 0 0 0 rg BT 351.19 466.10 Td (o the extent that we do not achieve and maintain our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (projected yields or product reliability) Tj ET Q q 0 0 0 rg BT 197.69 454.10 Td (, our business, operating results, financial condition and customer relationships would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 442.10 Td (fected. ) Tj ET Q q 0 0 0 rg BT 127.15 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 135.78 442.10 Td (e provide warranties on a majority of our product sales, and reserves for estimated warranty costs are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (recorded during the period of sale. ) Tj ET Q q 0 0 0 rg BT 189.54 430.10 Td (The determination of such reserves requires us to make estimates of failure rates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (expected costs to repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 300.13 418.10 Td (. ) Tj ET Q q 0 0 0 rg BT 304.95 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 313.59 418.10 Td (e typically establish warranty reserves based on historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (warranty costs for each product line. If actual return rates and/or repair and replacement costs dif) Tj ET Q q 0 0 0 rg BT 436.93 406.10 Td (fer significantly from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (estimates, adjustments to cost of sales may be required in future periods which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 465.30 394.10 Td (fect on our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 362.10 Td (Our customers may discover defects in our products after the products have been fully deployed and operated, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (under the end user's peak stress conditions. In addition, some of our products are combined with products from other vendors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (which may contain defects. ) Tj ET Q q 0 0 0 rg BT 160.85 338.10 Td (As a result, should problems occur) Tj ET Q q 0 0 0 rg BT 299.31 338.10 Td (, it may be dif) Tj ET Q q 0 0 0 rg BT 354.95 338.10 Td (ficult to identify the source of the problem. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (are unable to identify and fix defects or other problems, we could experience, among other things:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 306.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 306.10 Td (loss of customers or orders;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 286.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 286.10 Td (increased costs of product returns and warranty expenses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 266.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 266.10 Td (damage to our brand reputation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 246.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 246.10 Td (failure to attract new customers or achieve market acceptance;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 226.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 226.10 Td (diversion of development, engineering and manufacturing resources; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 206.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 206.10 Td (legal actions by our customers and/or their end users.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 186.10 Td (The occurrence of any one or more of the foregoing factors could seriously harm our business, financial condition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (Continued volatility in the advanced packaging and semiconductor manufacturing markets could adversely af) Tj ET Q q 0 0 0 rg BT 501.55 154.10 Td (fect our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 122.10 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 122.10 Td ( portion of our net sales in the microelectronics market depends on the demand for our products by advanced packaging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (applications and semiconductor equipment companies. ) Tj ET Q q 0 0 0 rg BT 270.93 110.10 Td (These markets have historically been characterized by sudden and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (severe cyclical variations in product supply and demand, which have often severely af) Tj ET Q q 0 0 0 rg BT 393.91 98.10 Td (fected the demand for semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (manufacturing equipment, including laser) Tj ET Q q 0 0 0 rg BT 216.47 86.10 Td (-based tools and systems. ) Tj ET Q q 0 0 0 rg BT 320.45 86.10 Td (The timing, severity and duration of these market cycles are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 74.10 Td (ficult to predict, and we may not be able to respond ef) Tj ET Q q 0 0 0 rg BT 276.29 74.10 Td (fectively to these cycles. ) Tj ET Q q 0 0 0 rg BT 376.90 74.10 Td (The continuing uncertainty in these markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (severely limits our ability to predict our business prospects or financial results in these markets.) Tj ET Q endstream endobj 53 0 obj <>] /Rotate 0 /Contents 54 0 R>> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 742.10 Td (During industry downturns, our net sales from these markets may decline suddenly and significantly) Tj ET Q q 0 0 0 rg BT 472.93 742.10 Td (. Our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (rapidly and ef) Tj ET Q q 0 0 0 rg BT 104.85 730.10 Td (fectively reduce our cost structure in response to such downturns is limited by the fixed nature of many of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (expenses in the near term and by our need to continue our investment in next-generation product technology and to support and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (service our products. In addition, due to the relatively long manufacturing lead times for some of the systems and subsystems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (we sell to these markets, we may incur expenditures or purchase raw materials or components for products we cannot sell. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 98.84 682.10 Td (, downturns in the semiconductor capital equipment market may materially harm our operating results. Conversely) Tj ET Q q 0 0 0 rg BT 556.95 682.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (when upturns in these markets occur) Tj ET Q q 0 0 0 rg BT 195.45 670.10 Td (, we must be able to rapidly and ef) Tj ET Q q 0 0 0 rg BT 333.28 670.10 Td (fectively increase our manufacturing capacity to meet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (increases in customer demand that may be extremely rapid, and if we fail to do so we may lose business to our competitors and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (our relationships with our customers may be harmed.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 626.10 Td (e are exposed to risks associated with worldwide economic conditions and related uncertainties which could negatively ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (impact demand for our products and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 594.10 Td (V) Tj ET Q q 0 0 0 rg BT 77.93 594.10 Td (olatility and disruption in the capital and credit markets, depressed consumer confidence, government economic policies, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (negative economic conditions, volatile corporate profits and reduced capital spending could negatively impact demand for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (products. In particular) Tj ET Q q 0 0 0 rg BT 137.68 570.10 Td (, it is dif) Tj ET Q q 0 0 0 rg BT 170.83 570.10 Td (ficult to develop and implement strategy) Tj ET Q q 0 0 0 rg BT 332.08 570.10 Td (, sustainable business models and ef) Tj ET Q q 0 0 0 rg BT 476.32 570.10 Td (ficient operations, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (well as ef) Tj ET Q q 0 0 0 rg BT 87.63 558.10 Td (fectively manage supply chain relationships in the face of such conditions including uncertainty regarding the ability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (of some of our suppliers to continue operations and provide us with uninterrupted supply flow) Tj ET Q q 0 0 0 rg BT 425.45 546.10 Td (. Our ability to maintain our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (research and development investments in our broad product of) Tj ET Q q 0 0 0 rg BT 299.24 534.10 Td (ferings may be adversely impacted in the event that our sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (decline and do not increase in the future. Spending and the timing thereof by consumers and businesses have a significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (impact on our results and, where such spending is delayed or canceled, it could have a material negative impact on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (operating results. Current global economic conditions remain uncertain and challenging. ) Tj ET Q q 0 0 0 rg BT 405.33 498.10 Td (W) Tj ET Q q 0 0 0 rg BT 413.96 498.10 Td (eakness in our end markets could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.10 Td (negatively impact our net sales, gross mar) Tj ET Q q 0 0 0 rg BT 217.33 486.10 Td (gin and operating expenses, and consequently have a material adverse ef) Tj ET Q q 0 0 0 rg BT 507.31 486.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.10 Td (business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 454.10 Td (Uncertainty in global fiscal policy has likely had an adverse impact on global financial markets and overall economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (activity in recent years.Should this uncertain financial policy recur) Tj ET Q q 0 0 0 rg BT 317.89 442.10 Td (, it would likely negatively impact global economic activity) Tj ET Q q 0 0 0 rg BT 555.79 442.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (Any weakness in global economies would also likely have negative repercussions on U.S. and global credit and financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (markets, and further exacerbate sovereign debt concerns in the European Union.) Tj ET Q q 0 0 0 rg BT 372.43 418.10 Td (All of these factors would likely adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (impact the global demand for our products and the performance of our investments, and would likely have a material adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 394.10 Td (fect on our business, results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 374.10 Td (The financial turmoil that has af) Tj ET Q q 0 0 0 rg BT 200.88 374.10 Td (fected the banking system and financial markets in recent years could result in tighter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (credit markets and lower levels of liquidity in some financial markets. ) Tj ET Q q 0 0 0 rg BT 332.01 362.10 Td (There could be a number of follow-on ef) Tj ET Q q 0 0 0 rg BT 494.83 362.10 Td (fects from a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (tightened credit environment on our business, including the insolvency of key suppliers or their inability to obtain credit to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (finance development and/or manufacture products resulting in product delays; inability of customers to obtain credit to finance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (purchases of our products and/or customer insolvencies; and failure of financial institutions negatively impacting our treasury ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (functions. In the event our customers are unable to obtain credit or otherwise pay for our shipped products it could significantly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (impact our ability to collect on our outstanding accounts receivable. Other income and expense also could vary materially from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (expectations depending on gains or losses realized on the sale or exchange of financial instruments; impairment char) Tj ET Q q 0 0 0 rg BT 515.83 290.10 Td (ges ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (resulting from revaluations of debt and equity securities and other investments; interest rates; cash balances; and changes in fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (value of derivative instruments. ) Tj ET Q q 0 0 0 rg BT 178.45 266.10 Td (V) Tj ET Q q 0 0 0 rg BT 184.38 266.10 Td (olatility in the financial markets and any overall economic uncertainty increase the risk that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (the actual amounts realized in the future on our financial instruments could dif) Tj ET Q q 0 0 0 rg BT 363.11 254.10 Td (fer significantly from the fair values currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (assigned to them. Uncertainty about current global economic conditions could also continue to increase the volatility of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (stock price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 210.10 Td (In addition, political and social turmoil related to international conflicts, terrorist acts, civil unrest and mass migration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (may put further pressure on economic conditions in the United States and the rest of the world. Unstable economic, political ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (and social conditions make it dif) Tj ET Q q 0 0 0 rg BT 179.57 186.10 Td (ficult for our customers, our suppliers and us to accurately forecast and plan future business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (activities. If such conditions persist, our business, financial condition and results of operations could suf) Tj ET Q q 0 0 0 rg BT 465.63 174.10 Td (fer) Tj ET Q q 0 0 0 rg BT 476.17 174.10 Td (. ) Tj ET Q q 0 0 0 rg BT 480.62 174.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 530.53 174.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (unstable economic conditions can provide significant pressures and burdens on individuals, which could cause them to engage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (in inappropriate business conduct. See PartII,Item9A. CONTROLS ) Tj ET Q q 0 0 0 rg BT 333.06 150.10 Td (AND PROCEDURES.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (Our cash and cash equivalents and short-term investments are managed through various banks around the world and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (volatility in the capital and credit market conditions could cause financial institutions to fail or materially harm service ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (levels provided by such banks, both of which could have an adverse impact on our ability to timely access funds.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 86.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 86.10 Td (orld capital and credit markets have been and may continue to experience volatility and disruption. In some cases, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (markets have exerted downward pressure on stock prices and credit capacity for certain issuers, as well as pressured the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (solvency of some financial institutions. ) Tj ET Q q 0 0 0 rg BT 208.74 62.10 Td (These financial institutions, including banks, have had dif) Tj ET Q q 0 0 0 rg BT 439.90 62.10 Td (ficulty timely performing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.10 Td (regular services and in some cases have failed or otherwise been lar) Tj ET Q q 0 0 0 rg BT 320.04 50.10 Td (gely taken over by governments. ) Tj ET Q q 0 0 0 rg BT 453.15 50.10 Td (W) Tj ET Q q 0 0 0 rg BT 461.79 50.10 Td (e maintain our cash, ) Tj ET Q endstream endobj 55 0 obj <>] /Rotate 0 /Contents 56 0 R>> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (cash equivalents and short-term investments with a number of financial institutions around the world. Should some or all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (these financial institutions fail or otherwise be unable to timely perform requested services, we would likely have a limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (ability to timely access our cash deposited with such institutions, or) Tj ET Q q 0 0 0 rg BT 319.33 718.10 Td (, in extreme circumstances the failure of such institutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (could cause us to be unable to access cash for the foreseeable future. If we are unable to quickly access our funds when we need ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (them, we may need to increase the use of our existing credit lines or access more expensive credit, if available. If we are unable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (to access our cash or if we access existing or additional credit or are unable to access additional credit, it could have a negative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (impact on our operations, including our reported net income. In addition, the willingness of financial institutions to continue to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (accept our cash deposits will impact our ability to diversify our investment risk among institutions.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 638.10 Td (e are exposed to credit risk and fluctuations in the market values of our investment portfolio.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 618.10 Td (Although we have not recognized any material losses on our cash, cash equivalents and short-term investments, future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (declines in their market values could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 303.09 606.10 Td (fect on our financial condition and operating results. Given the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (global nature of our business, we have investments both domestically and internationally) Tj ET Q q 0 0 0 rg BT 404.32 594.10 Td (. ) Tj ET Q q 0 0 0 rg BT 409.14 594.10 Td (There has recently been growing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (pressure on the creditworthiness of sovereign nations, particularly in Europe where a significant portion of our cash, cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (equivalents and short-term investments are invested, which results in corresponding pressure on the valuation of the securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (issued by such nations. ) Tj ET Q q 0 0 0 rg BT 143.67 558.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 193.57 558.10 Td (, our overall investment portfolio is often concentrated in government-issued securities such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (as U.S. ) Tj ET Q q 0 0 0 rg BT 80.43 546.10 Td (T) Tj ET Q q 0 0 0 rg BT 86.19 546.10 Td (reasury securities and government agencies, corporate notes, commercial paper and money market funds. Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (ratings and pricing of these investments can be negatively impacted by liquidity) Tj ET Q q 0 0 0 rg BT 368.49 534.10 Td (, credit deterioration or losses, financial results, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (or other factors. ) Tj ET Q q 0 0 0 rg BT 115.03 522.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 164.93 522.10 Td (, liquidity issues or political actions by sovereign nations could result in decreased values for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (investments in certain government securities. ) Tj ET Q q 0 0 0 rg BT 232.23 510.10 Td (As a result, the value or liquidity of our cash, cash equivalents and short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (investments could decline or become materially impaired, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 439.72 498.10 Td (fect on our financial condition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.10 Td (and operating results. See Item7A. Quantitative and Qualitative Disclosures about Market Risk.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (Our future success depends on our ability to increase our sales volumes and decrease our costs to of) Tj ET Q q 0 0 0 rg BT 460.72 466.10 Td (fset potential declines in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (the average selling prices \(ASPs\) of our products and, if we are unable to realize greater sales volumes and lower costs, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (our operating results may suf) Tj ET Q q 0 0 0 rg BT 170.45 442.10 Td (fer) Tj ET Q q 0 0 0 rg BT 181.56 442.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 422.10 Td (Our ability to increase our sales volume and our future success depends on the continued growth of the markets for lasers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (laser systems and related accessories, as well as our ability to identify) Tj ET Q q 0 0 0 rg BT 327.65 410.10 Td (, in advance, emer) Tj ET Q q 0 0 0 rg BT 400.49 410.10 Td (ging markets for laser) Tj ET Q q 0 0 0 rg BT 487.76 410.10 Td (-based systems. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 398.10 Td (e cannot assure you that we will be able to successfully identify) Tj ET Q q 0 0 0 rg BT 312.14 398.10 Td (, on a timely basis, new high-growth markets in the future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Moreover) Tj ET Q q 0 0 0 rg BT 88.53 386.10 Td (, we cannot assure you that new markets will develop for our products or our customers' products, or that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (technology or pricing will enable such markets to develop. Future demand for our products is uncertain and will depend to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (great degree on continued technological development and the introduction of new or enhanced products. If this does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (continue, sales of our products may decline and our business will be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 330.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 330.10 Td (e have in the past experienced decreases in the ) Tj ET Q q 0 0 0 rg BT 268.61 330.10 Td (ASPs of some of our products. ) Tj ET Q q 0 0 0 rg BT 393.33 330.10 Td (As competing products become more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (widely available, the ) Tj ET Q q 0 0 0 rg BT 134.47 318.10 Td (ASPs of our products may decrease. If we are unable to of) Tj ET Q q 0 0 0 rg BT 367.55 318.10 Td (fset any decrease in our ) Tj ET Q q 0 0 0 rg BT 463.89 318.10 Td (ASPs by increasing our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (sales volumes, our net sales will decline. In addition, to maintain our gross mar) Tj ET Q q 0 0 0 rg BT 365.92 306.10 Td (gins, we must continue to reduce the cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (manufacturing our products while maintaining their high quality) Tj ET Q q 0 0 0 rg BT 306.29 294.10 Td (. From time to time, our products, like many complex ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (technological products, may fail in greater frequency than anticipated. ) Tj ET Q q 0 0 0 rg BT 332.26 282.10 Td (This can lead to further char) Tj ET Q q 0 0 0 rg BT 445.08 282.10 Td (ges, which can result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (higher costs, lower gross mar) Tj ET Q q 0 0 0 rg BT 166.79 270.10 Td (gins and lower operating results. Furthermore, as ) Tj ET Q q 0 0 0 rg BT 364.81 270.10 Td (ASPs of our current products decline, we must ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (develop and introduce new products and product enhancements with higher mar) Tj ET Q q 0 0 0 rg BT 369.77 258.10 Td (gins. If we cannot maintain our gross mar) Tj ET Q q 0 0 0 rg BT 536.22 258.10 Td (gins, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (our operating results could be seriously harmed, particularly if the ) Tj ET Q q 0 0 0 rg BT 315.81 246.10 Td (ASPs of our products decrease significantly) Tj ET Q q 0 0 0 rg BT 490.40 246.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (Our future success depends on our ability to develop and successfully introduce new and enhanced products that meet the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (needs of our customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 194.10 Td (Our current products address a broad range of commercial and scientific research applications in the photonics markets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 182.10 Td (e cannot assure you that the market for these applications will continue to generate significant or consistent demand for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (products. Demand for our products could be significantly diminished by disrupting technologies or products that replace them ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (or render them obsolete. Furthermore, the new and enhanced products in certain markets generally continue to be smaller in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (size and have lower ) Tj ET Q q 0 0 0 rg BT 130.58 146.10 Td (ASPs, and therefore, we have to sell more units to maintain revenue levels. ) Tj ET Q q 0 0 0 rg BT 432.72 146.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 482.06 146.10 Td (, we must continue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (to invest in research and development in order to develop competitive products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 114.10 Td (Our future success depends on our ability to anticipate our customers' needs and develop products that address those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.10 Td (needs. Introduction of new products and product enhancements will require that we ef) Tj ET Q q 0 0 0 rg BT 393.37 102.10 Td (fectively transfer production processes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.10 Td (from research and development to manufacturing and coordinate our ef) Tj ET Q q 0 0 0 rg BT 334.48 90.10 Td (forts with those of our suppliers to achieve volume ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.10 Td (production rapidly) Tj ET Q q 0 0 0 rg BT 123.00 78.10 Td (. If we fail to transfer production processes ef) Tj ET Q q 0 0 0 rg BT 304.70 78.10 Td (fectively) Tj ET Q q 0 0 0 rg BT 339.03 78.10 Td (, develop product enhancements or introduce new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 66.10 Td (products in suf) Tj ET Q q 0 0 0 rg BT 108.76 66.10 Td (ficient quantities to meet the needs of our customers as scheduled, our net sales may be reduced and our business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 54.10 Td (may be harmed.) Tj ET Q endstream endobj 57 0 obj <>] /Rotate 0 /Contents 58 0 R>> endobj 58 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (26) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 742.25 Td (e face risks associated with our foreign operations and sales that could harm our financial condition and results of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 710.25 Td (For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.39 710.25 Td (fiscal 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.55 710.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.55 710.25 Td (fiscal 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.70 710.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.14 710.25 Td (fiscal 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.30 710.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.30 710.25 Td (76%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.63 710.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.63 710.25 Td (73%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.96 710.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.39 710.25 Td (74%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.72 710.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 382.39 710.25 Td (, of our net sales were derived from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (customers outside of the United States. ) Tj ET Q q 0 0 0 rg BT 207.53 698.25 Td (A) Tj ET Q q 0 0 0 rg BT 214.20 698.25 Td ( majority of Rofin) Tj ET Q q 0 0 0 rg BT 289.47 698.25 Td (s sales have also been to customers outside of the United States in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (recent years. ) Tj ET Q q 0 0 0 rg BT 102.34 686.25 Td (W) Tj ET Q q 0 0 0 rg BT 110.98 686.25 Td (e anticipate that foreign sales, particularly in ) Tj ET Q q 0 0 0 rg BT 290.91 686.25 Td (Asia, will continue to account for a significant portion of our net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (sales in the foreseeable future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 654.25 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 654.25 Td ( global economic slowdown or a natural disaster could have a negative ef) Tj ET Q q 0 0 0 rg BT 371.72 654.25 Td (fect on various foreign markets in which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (operate, such as the earthquake, tsunami and resulting nuclear disaster in Japan and the flooding in ) Tj ET Q q 0 0 0 rg BT 446.42 642.25 Td (Thailand in recent years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (Such a slowdown may cause us to reduce our presence in certain countries, which may negatively af) Tj ET Q q 0 0 0 rg BT 451.13 630.25 Td (fect the overall level of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (business in such countries. Our foreign sales are primarily through our direct sales force. ) Tj ET Q q 0 0 0 rg BT 406.07 618.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 455.97 618.25 Td (, some foreign sales are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.25 Td (made through foreign distributors and representatives. Our foreign operations and sales are subject to a number of risks, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.25 Td (including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 574.25 Td (longer accounts receivable collection periods;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 554.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 554.25 Td (the impact of recessions and other economic conditions in economies outside the United States;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 534.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 534.25 Td (unexpected changes in regulatory requirements;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 514.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 514.25 Td (certification requirements;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 494.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 494.25 Td (environmental regulations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 474.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 474.25 Td (reduced protection for intellectual property rights in some countries;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 454.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 454.25 Td (potentially adverse tax consequences;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 434.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 434.25 Td (political and economic instability;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 414.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 414.25 Td (import/export regulations, tarif) Tj ET Q q 0 0 0 rg BT 208.90 414.25 Td (fs and trade barriers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 394.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 394.25 Td (compliance with applicable United States and foreign anti-corruption laws;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 374.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 374.25 Td (cultural and management dif) Tj ET Q q 0 0 0 rg BT 200.00 374.25 Td (ferences;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 354.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 354.25 Td (reliance in some jurisdictions on third party sales channel partners;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 334.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 334.25 Td (preference for locally produced products; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 314.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 314.25 Td (shipping and other logistics complications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 294.25 Td (Our business could also be impacted by international conflicts, terrorist and military activity) Tj ET Q q 0 0 0 rg BT 440.42 294.25 Td (, civil unrest and pandemic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.25 Td (illness which could cause a slowdown in customer orders, cause customer order cancellations or negatively impact availability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.25 Td (of supplies or limit our ability to timely service our installed base of products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 250.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 250.25 Td (e are also subject to the risks of fluctuating foreign currency exchange rates, which could materially adversely af) Tj ET Q q 0 0 0 rg BT 530.83 250.25 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (sales price of our products in foreign markets, as well as the costs and expenses of our foreign subsidiaries. ) Tj ET Q q 0 0 0 rg BT 480.04 238.25 Td (While we use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (forward exchange contracts and other risk management techniques to hedge our foreign currency exposure, we remain exposed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (to the economic risks of foreign currency fluctuations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 194.25 Td (e may not be able to protect our proprietary technology which could adversely af) Tj ET Q q 0 0 0 rg BT 387.71 194.25 Td (fect our competitive advantage.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 174.25 Td (Maintenance of intellectual property rights and the protection thereof is important to our business. ) Tj ET Q q 0 0 0 rg BT 466.43 174.25 Td (W) Tj ET Q q 0 0 0 rg BT 475.07 174.25 Td (e rely on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.25 Td (combination of patent, copyright, trademark and trade secret laws and restrictions on disclosure to protect our intellectual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.25 Td (property rights. Our patent applications may not be approved, any patents that may be issued may not suf) Tj ET Q q 0 0 0 rg BT 470.05 150.25 Td (ficiently protect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.25 Td (intellectual property and any issued patents may be challenged by third parties. Other parties may independently develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.25 Td (similar or competing technology or design around any patents that may be issued to us. ) Tj ET Q q 0 0 0 rg BT 400.36 126.25 Td (W) Tj ET Q q 0 0 0 rg BT 409.00 126.25 Td (e cannot be certain that the steps we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.25 Td (have taken will prevent the misappropriation of our intellectual property) Tj ET Q q 0 0 0 rg BT 337.92 114.25 Td (, particularly in foreign countries where the laws may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.25 Td (not protect our proprietary rights as fully as in the United States. Further) Tj ET Q q 0 0 0 rg BT 338.76 102.25 Td (, we may be required to enforce our intellectual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.25 Td (property or other proprietary rights through litigation, which, regardless of success, could result in substantial costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.25 Td (diversion of management's attention. ) Tj ET Q q 0 0 0 rg BT 198.77 78.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 248.67 78.25 Td (, there may be existing patents of which we are unaware that could be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 66.25 Td (pertinent to our business and it is not possible for us to know whether there are patent applications pending that our products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 54.25 Td (might infringe upon since these applications are often not publicly available until a patent is issued or published.) Tj ET Q endstream endobj 59 0 obj <>] /Rotate 0 /Contents 60 0 R>> endobj 60 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (27) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 742.25 Td (e may) Tj ET Q q 0 0 0 rg BT 81.43 742.25 Td (, in the future, be subject to claims or litigation from third parties, for claims of infringement of their proprietary ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (rights or to determine the scope and validity of our proprietary rights or the proprietary rights of competitors or other rights ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (holders. These claims could result in costly litigation and the diversion of our technical and management personnel. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (Adverse resolution of litigation may harm our operating results or financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.11 706.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 686.25 Td (In recent years, there has been significant litigation in the United States and around the world involving patents and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (intellectual property rights. ) Tj ET Q q 0 0 0 rg BT 160.40 674.25 Td (This has been seen in our industry) Tj ET Q q 0 0 0 rg BT 296.39 674.25 Td (, for example in the recently concluded patent-related litigation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (between IMRA) Tj ET Q q 0 0 0 rg BT 110.88 662.25 Td ( ) Tj ET Q q 0 0 0 rg BT 112.83 662.25 Td (America, Inc. \("Imra"\) and IPG Photonics Corporation and in Imra's recently brought litigation against two of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (our German subsidiaries. From time to time, like many other technology companies, we have received communications from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (other parties asserting the existence of patent rights, copyrights, trademark rights or other intellectual property rights which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (such third parties believe may cover certain of our products, processes, technologies or information. In the future, we may be a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (party to litigation to protect our intellectual property or as a result of an alleged infringement of others' intellectual property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (whether through direct claims or by way of indemnification claims of our customers, as, in some cases, we contractually agree ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (to indemnify our customers against third-party infringement claims relating to our products. ) Tj ET Q q 0 0 0 rg BT 419.51 590.25 Td (These claims and any resulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (lawsuit, if successful, could subject us to significant liability for damages or invalidation of our proprietary rights. ) Tj ET Q q 0 0 0 rg BT 507.55 578.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (lawsuits, regardless of their success, would likely be time-consuming and expensive to resolve and would divert management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (time and attention. ) Tj ET Q q 0 0 0 rg BT 126.15 554.25 Td (Any potential intellectual property litigation could also force us to do one or more of the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 534.25 Td ( ) Tj ET Q BT /F1 3.00 Tf ET q 0 0 0 rg BT 85.50 534.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.25 534.25 Td (stop manufacturing, selling or using our products that use the infringed intellectual property;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 514.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 514.25 Td (obtain from the owner of the infringed intellectual property right a license to sell or use the relevant technology) Tj ET Q q 0 0 0 rg BT 530.26 514.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 502.25 Td (although such license may not be available on reasonable terms, or at all; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 482.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 482.25 Td (redesign the products that use the technology) Tj ET Q q 0 0 0 rg BT 265.36 482.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 462.25 Td (If we are forced to take any of these actions or are otherwise a party to lawsuits of this nature, we may incur significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.25 Td (losses and our business may be seriously harmed. ) Tj ET Q q 0 0 0 rg BT 250.12 450.25 Td (W) Tj ET Q q 0 0 0 rg BT 258.76 450.25 Td (e do not have insurance to cover potential claims of this type.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (If our goodwill or intangible assets become impaired, we may be required to record a significant charge to earnings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 410.25 Td (Under accounting principles generally accepted in the United States, we review our intangible assets for impairment when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (events or changes in circumstances indicate the carrying value may not be recoverable. Goodwill is required to be tested for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (impairment at least annually) Tj ET Q q 0 0 0 rg BT 162.42 386.25 Td (. Factors that may be considered in determining whether a change in circumstances indicating that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (the carrying value of our goodwill or other intangible assets may not be recoverable include declines in our stock price and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (market capitalization or future cash flows projections. ) Tj ET Q q 0 0 0 rg BT 267.21 362.25 Td (A) Tj ET Q q 0 0 0 rg BT 273.88 362.25 Td ( decline in our stock price, or any other adverse change in market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (conditions, particularly if such change has the ef) Tj ET Q q 0 0 0 rg BT 243.14 350.25 Td (fect of changing one of the critical assumptions or estimates we used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (calculate the estimated fair value of our reporting units, could result in a change to the estimation of fair value that could result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (in an impairment char) Tj ET Q q 0 0 0 rg BT 137.34 326.25 Td (ge. ) Tj ET Q q 0 0 0 rg BT 151.23 326.25 Td (Any such material char) Tj ET Q q 0 0 0 rg BT 244.07 326.25 Td (ges, whether related to goodwill or purchased intangible assets, may have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (material negative impact on our financial and operating results.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 294.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 294.25 Td (e depend on skilled personnel to operate our business ef) Tj ET Q q 0 0 0 rg BT 287.20 294.25 Td (fectively in a rapidly changing market, and if we are unable to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 282.25 Td (retain existing or hire additional personnel when needed, our ability to develop and sell our products could be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 262.25 Td (Our ability to continue to attract and retain highly skilled personnel will be a critical factor in determining whether we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (will be successful in the future. Recruiting and retaining highly skilled personnel in certain functions continues to be dif) Tj ET Q q 0 0 0 rg BT 528.92 250.25 Td (ficult. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (At certain locations where we operate, the cost of living is extremely high and it may be dif) Tj ET Q q 0 0 0 rg BT 415.32 238.25 Td (ficult to retain key employees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (management at a reasonable cost. ) Tj ET Q q 0 0 0 rg BT 185.93 226.25 Td (W) Tj ET Q q 0 0 0 rg BT 194.56 226.25 Td (e may not be successful in attracting, assimilating or retaining qualified personnel to fulfill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (our current or future needs. Our failure to attract additional employees and retain our existing employees could adversely af) Tj ET Q q 0 0 0 rg BT 543.86 214.25 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (our growth and our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 182.25 Td (Our future success depends upon the continued services of our executive of) Tj ET Q q 0 0 0 rg BT 373.67 182.25 Td (ficers and other key engineering, sales, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.25 Td (marketing, manufacturing and support personnel, any of whom may leave and our ability to ef) Tj ET Q q 0 0 0 rg BT 426.43 170.25 Td (fectively transition to their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.25 Td (successors. Our inability to retain or to ef) Tj ET Q q 0 0 0 rg BT 214.83 158.25 Td (fectively transition to their successors could harm our business and our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.25 Td (operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 126.25 Td (The long sales cycles for our products may cause us to incur significant expenses without of) Tj ET Q q 0 0 0 rg BT 427.95 126.25 Td (fsetting net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 106.25 Td (Customers often view the purchase of our products as a significant and strategic decision. ) Tj ET Q q 0 0 0 rg BT 432.18 106.25 Td (As a result, customers typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (expend significant ef) Tj ET Q q 0 0 0 rg BT 133.18 94.25 Td (fort in evaluating, testing and qualifying our products before making a decision to purchase them, resulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (in a lengthy initial sales cycle. ) Tj ET Q q 0 0 0 rg BT 172.89 82.25 Td (While our customers are evaluating our products and before they place an order with us, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (incur substantial sales and marketing and research and development expenses to customize our products to the customers' ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (needs. ) Tj ET Q q 0 0 0 rg BT 77.09 58.25 Td (W) Tj ET Q q 0 0 0 rg BT 85.73 58.25 Td (e may also expend significant management ef) Tj ET Q q 0 0 0 rg BT 268.25 58.25 Td (forts, increase manufacturing capacity and order long lead-time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (components or materials prior to receiving an order) Tj ET Q q 0 0 0 rg BT 254.71 46.25 Td (. Even after this evaluation process, a potential customer may not purchase ) Tj ET Q endstream endobj 61 0 obj <>] /Rotate 0 /Contents 62 0 R>> endobj 62 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (our products. ) Tj ET Q q 0 0 0 rg BT 104.22 742.10 Td (As a result, these long sales cycles may cause us to incur significant expenses without ever receiving net sales to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 730.10 Td (fset such expenses.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (The markets in which we sell our products are intensely competitive and increased competition could cause reduced sales ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (levels, reduced gross margins or the loss of market share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 678.10 Td (Competition in the various photonics markets in which we provide products is very intense. ) Tj ET Q q 0 0 0 rg BT 440.92 678.10 Td (W) Tj ET Q q 0 0 0 rg BT 449.56 678.10 Td (e compete against a number ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.10 Td (of lar) Tj ET Q q 0 0 0 rg BT 70.70 666.10 Td (ge public and private companies, including CVI Melles Griot, NovantaInc.,IPG Photonics Corporation, Lumentum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (Holdings Inc., MKS Instruments, Inc. and ) Tj ET Q q 0 0 0 rg BT 219.86 654.10 Td (T) Tj ET Q q 0 0 0 rg BT 225.61 654.10 Td (rumpfGmbH, as well as other smaller companies. Some of our competitors are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 642.10 Td (ge companies that have significant financial, technical, marketing and other resources. ) Tj ET Q q 0 0 0 rg BT 407.33 642.10 Td (These competitors may be able to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (devote greater resources than we can to the development, promotion, sale and support of their products. Some of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (competitors are much better positioned than we are to acquire other companies in order to gain new technologies or products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (that may displace our product lines. ) Tj ET Q q 0 0 0 rg BT 194.19 606.10 Td (Any of these acquisitions could give our competitors a strategic advantage. ) Tj ET Q q 0 0 0 rg BT 496.33 606.10 Td (Any business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (combinations or mer) Tj ET Q q 0 0 0 rg BT 132.08 594.10 Td (gers among our competitors, forming lar) Tj ET Q q 0 0 0 rg BT 294.08 594.10 Td (ger companies with greater resources, could result in increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (competition, price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 220.92 582.10 Td (gins or loss of market share, any of which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 523.98 582.10 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (business, results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 550.10 Td (Additional competitors may enter the markets in which we serve, both foreign and domestic, and we are likely to compete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (with new companies in the future. ) Tj ET Q q 0 0 0 rg BT 187.89 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 196.53 538.10 Td (e may encounter potential customers that, due to existing relationships with our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (competitors, are committed to the products of) Tj ET Q q 0 0 0 rg BT 231.77 526.10 Td (fered by these competitors. Further) Tj ET Q q 0 0 0 rg BT 371.60 526.10 Td (, our current or potential customers may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (determine to develop and produce products for their own use which are competitive to our products. ) Tj ET Q q 0 0 0 rg BT 451.88 514.10 Td (As a result of the foregoing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (factors, we expect that competitive pressures may result in price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 404.74 502.10 Td (gins, loss of sales and loss of market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (share. In addition, in markets where there are a limited number of customers, competition is particularly intense.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (If we fail to accurately forecast component and material requirements for our products, we could incur additional costs and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (incur significant delays in shipments, which could result in a loss of customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 438.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 438.10 Td (e use rolling forecasts based on anticipated product orders and material requirements planning systems to determine our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.10 Td (product requirements. It is very important that we accurately predict both the demand for our products and the lead times ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.10 Td (required to obtain the necessary components and materials. ) Tj ET Q q 0 0 0 rg BT 288.41 414.10 Td (W) Tj ET Q q 0 0 0 rg BT 297.04 414.10 Td (e depend on our suppliers for most of our product components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.10 Td (and materials. Lead times for components and materials that we order vary significantly and depend on factors including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.10 Td (specific supplier requirements, the size of the order) Tj ET Q q 0 0 0 rg BT 254.02 390.10 Td (, contract terms and current market demand for components. For substantial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (increases in our sales levels of certain products, some of our suppliers may need at least nine months lead-time. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (overestimate our component and material requirements, we may have excess inventory) Tj ET Q q 0 0 0 rg BT 396.78 366.10 Td (, which would increase our costs. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (underestimate our component and material requirements, we may have inadequate inventory) Tj ET Q q 0 0 0 rg BT 418.99 354.10 Td (, which could interrupt and delay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (delivery of our products to our customers. ) Tj ET Q q 0 0 0 rg BT 219.47 342.10 Td (Any of these occurrences would negatively impact our net sales, business or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (operating results.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (Our reliance on contract manufacturing and outsourcing may adversely impact our financial results and operations due to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (our decreased control over the performance and timing of certain aspects of our manufacturing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.17 298.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 278.10 Td (Our manufacturing strategy includes partnering with contract manufacturers to outsource non-core subassemblies and less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (complex turnkey products, including some performed at international sites located in ) Tj ET Q q 0 0 0 rg BT 391.08 266.10 Td (Asia and Eastern Europe. Our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (resume internal manufacturing operations for certain products and components in a timely manner may be eliminated. ) Tj ET Q q 0 0 0 rg BT 523.88 254.10 Td (The cost, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (quality) Tj ET Q q 0 0 0 rg BT 76.62 242.10 Td (, performance and availability of contract manufacturing operations are and will be essential to the successful production ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (and sale of many of our products. Our financial condition or results of operation could be adversely impacted if any contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (manufacturer or other supplier is unable for any reason, including as a result of the impact of worldwide economic conditions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (to meet our cost, quality) Tj ET Q q 0 0 0 rg BT 145.77 206.10 Td (, performance, and availability standards. ) Tj ET Q q 0 0 0 rg BT 313.31 206.10 Td (W) Tj ET Q q 0 0 0 rg BT 321.95 206.10 Td (e may not be able to provide contract manufacturers with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (product volumes that are high enough to achieve suf) Tj ET Q q 0 0 0 rg BT 258.70 194.10 Td (ficient cost savings. If shipments fall below forecasted levels, we may incur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (increased costs or be required to take ownership of the inventory) Tj ET Q q 0 0 0 rg BT 307.65 182.10 Td (. ) Tj ET Q q 0 0 0 rg BT 312.10 182.10 Td (Also, our ability to control the quality of products produced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (by contract manufacturers may be limited and quality issues may not be resolved in a timely manner) Tj ET Q q 0 0 0 rg BT 450.65 170.10 Td (, which could adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (impact our financial condition or results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 138.10 Td (If we fail to ef) Tj ET Q q 0 0 0 rg BT 107.08 138.10 Td (fectively manage our growth or) Tj ET Q q 0 0 0 rg BT 235.41 138.10 Td (, alternatively) Tj ET Q q 0 0 0 rg BT 291.14 138.10 Td (, our spending during downturns, our business could be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td (disrupted, which could harm our operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 106.10 Td (Growth in sales, combined with the challenges of managing geographically dispersed operations, can place a significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (strain on our management systems and resources, and our anticipated growth in future operations could continue to place such a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (strain. ) Tj ET Q q 0 0 0 rg BT 76.54 82.10 Td (The failure to ef) Tj ET Q q 0 0 0 rg BT 141.04 82.10 Td (fectively manage our growth could disrupt our business and harm our operating results. Our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (successfully of) Tj ET Q q 0 0 0 rg BT 109.03 70.10 Td (fer our products and implement our business plan in evolving markets requires an ef) Tj ET Q q 0 0 0 rg BT 445.70 70.10 Td (fective planning and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (management process. In economic downturns, we must ef) Tj ET Q q 0 0 0 rg BT 281.20 58.10 Td (fectively manage our spending and operations to ensure our ) Tj ET Q endstream endobj 63 0 obj <>] /Rotate 0 /Contents 64 0 R>> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (competitive position during the downturn, as well as our future opportunities when the economy improves, remain intact. ) Tj ET Q q 0 0 0 rg BT 536.99 742.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (failure to ef) Tj ET Q q 0 0 0 rg BT 95.96 730.10 Td (fectively manage our spending and operations could disrupt our business and harm our operating results. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 97.46 710.10 Td (, acquisitions have been an important element of our strategy) Tj ET Q q 0 0 0 rg BT 348.76 710.10 Td (. However) Tj ET Q q 0 0 0 rg BT 389.87 710.10 Td (, we may not find suitable acquisition ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (candidates in the future and we may not be able to successfully integrate and manage acquired businesses. ) Tj ET Q q 0 0 0 rg BT 490.25 698.10 Td (Any acquisitions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (we make could disrupt our business and harm our financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 666.10 Td () Tj ET Q q 0 0 0 rg BT 74.32 666.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.96 666.10 Td (e have in the past made strategic acquisitions of other corporations and entities, including Rofin in November 2016, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (well as asset purchases, and we continue to evaluate potential strategic acquisitions of complementary companies, products and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (technologies. In the event of any future acquisitions, we could:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 622.10 Td (issue stock that would dilute our current stockholders' percentage ownership;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 602.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 602.10 Td (pay cash that would decrease our working capital;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 582.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 582.10 Td (incur debt;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 562.10 Td (assume liabilities; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 542.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 542.10 Td (incur expenses related to impairment of goodwill and amortization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 522.10 Td (Acquisitions also involve numerous risks, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 502.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 502.10 Td (problems combining the acquired operations, systems, technologies or products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 482.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 482.10 Td (an inability to realize expected operating ef) Tj ET Q q 0 0 0 rg BT 258.57 482.10 Td (ficiencies or product integration benefits;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 462.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 462.10 Td (dif) Tj ET Q q 0 0 0 rg BT 96.43 462.10 Td (ficulties in coordinating and integrating geographically separated personnel, or) Tj ET Q q 0 0 0 rg BT 411.42 462.10 Td (ganizations, systems and facilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 442.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 442.10 Td (dif) Tj ET Q q 0 0 0 rg BT 96.43 442.10 Td (ficulties integrating business cultures;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 422.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 422.10 Td (unanticipated costs or liabilities, including the costs associated with improving the internal controls of the acquired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 410.10 Td (company;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 390.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 390.10 Td (diversion of management's attention from our core businesses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 370.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 370.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 126.13 370.10 Td (fects on existing business relationships with suppliers and customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 350.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 350.10 Td (potential loss of key employees, particularly those of the purchased or) Tj ET Q q 0 0 0 rg BT 365.51 350.10 Td (ganizations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 330.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 330.10 Td (incurring unforeseen obligations or liabilities in connection with acquisitions; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 310.10 Td (the failure to complete acquisitions even after signing definitive agreements which, among other things, would result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 298.10 Td (in the expensing of potentially significant professional fees and other char) Tj ET Q q 0 0 0 rg BT 381.34 298.10 Td (ges in the period in which the acquisition or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 286.10 Td (negotiations are terminated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 266.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 266.10 Td (e cannot assure you that we will be able to successfully identify appropriate acquisition candidates, to integrate any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (businesses, products, technologies or personnel that we might acquire in the future or achieve the anticipated benefits of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (transactions, which may harm our business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (Our market is unpredictable and characterized by rapid technological changes and evolving standards demanding a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (significant investment in research and development, and, if we fail to address changing market conditions, our business and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (operating results will be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 178.10 Td (The photonics industry is characterized by extensive research and development, rapid technological change, frequent new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (product introductions, changes in customer requirements and evolving industry standards. Because this industry is subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (rapid change, it is dif) Tj ET Q q 0 0 0 rg BT 134.02 154.10 Td (ficult to predict its potential size or future growth rate. Our success in generating net sales in this industry ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (will depend on, among other things:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 122.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 122.10 Td (maintaining and enhancing our relationships with our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 102.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 102.10 Td (the education of potential end-user customers about the benefits of lasers and laser systems; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 82.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 82.10 Td (our ability to accurately predict and develop our products to meet industry standards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 62.10 Td (For our fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.98 62.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.98 62.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.98 62.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.98 62.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.41 62.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.41 62.10 Td (, our research and development costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.57 62.10 Td ($81.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.46 62.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.29 62.10 Td (9.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.12 62.10 Td ( of net sales\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.10 Td ($81.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 50.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.22 50.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.05 50.10 Td ( of net sales\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.31 50.10 Td ($79.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.20 50.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.03 50.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.86 50.10 Td ( of net sales\), respectively) Tj ET Q q 0 0 0 rg BT 394.33 50.10 Td (. ) Tj ET Q q 0 0 0 rg BT 399.15 50.10 Td (W) Tj ET Q q 0 0 0 rg BT 407.79 50.10 Td (e cannot assure you that our ) Tj ET Q endstream endobj 65 0 obj <>] /Rotate 0 /Contents 66 0 R>> endobj 66 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (expenditures for research and development will result in the introduction of new products or) Tj ET Q q 0 0 0 rg BT 418.16 742.10 Td (, if such products are introduced, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (that those products will achieve suf) Tj ET Q q 0 0 0 rg BT 190.67 730.10 Td (ficient market acceptance or to generate sales to of) Tj ET Q q 0 0 0 rg BT 393.16 730.10 Td (fset the costs of development. Our failure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (to address rapid technological changes in our markets could adversely af) Tj ET Q q 0 0 0 rg BT 339.77 718.10 Td (fect our business and results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 698.10 Td (e are exposed to lawsuits in the normal course of business which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 458.87 698.10 Td (fect on our business, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (operating results, or financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 666.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 666.10 Td (e are exposed to lawsuits in the normal course of our business, including product liability claims, if personal injury) Tj ET Q q 0 0 0 rg BT 539.33 666.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (death or commercial losses occur from the use of our products. ) Tj ET Q q 0 0 0 rg BT 303.68 654.10 Td (While we typically maintain business insurance, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (directors' and of) Tj ET Q q 0 0 0 rg BT 113.88 642.10 Td (ficers' policies, litigation can be expensive, lengthy) Tj ET Q q 0 0 0 rg BT 317.74 642.10 Td (, and disruptive to normal business operations, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (potential impact of indemnification obligations for individuals named in any such lawsuits. ) Tj ET Q q 0 0 0 rg BT 416.19 630.10 Td (W) Tj ET Q q 0 0 0 rg BT 424.83 630.10 Td (e may not, however) Tj ET Q q 0 0 0 rg BT 503.29 630.10 Td (, be able to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (secure insurance coverage on terms acceptable to us in the future. Moreover) Tj ET Q q 0 0 0 rg BT 353.41 618.10 Td (, the results of complex legal proceedings are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 606.10 Td (ficult to predict. ) Tj ET Q q 0 0 0 rg BT 126.52 606.10 Td (An unfavorable resolution of a particular lawsuit, including a recall or redesign of products if ultimately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (determined to be defective, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 289.75 594.10 Td (fect on our business, operating results, or financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 574.10 Td (e use standard laboratory and manufacturing materials that could be considered hazardous and we could be liable for any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (damage or liability resulting from accidental environmental contamination or injury) Tj ET Q q 0 0 0 rg BT 396.66 562.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 542.10 Td (Although most of our products do not incorporate hazardous or toxic materials and chemicals, some of the gases used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (our excimer lasers and some of the liquid dyes used in some of our scientific laser products are highly toxic. In addition, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (operations involve the use of standard laboratory and manufacturing materials that could be considered hazardous. ) Tj ET Q q 0 0 0 rg BT 509.35 518.10 Td (Also, if a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (facility fire were to occur at our Sunnyvale, California site and were to spread to a reactor used to grow semiconductor wafers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (it could release highly toxic emissions. ) Tj ET Q q 0 0 0 rg BT 207.35 494.10 Td (W) Tj ET Q q 0 0 0 rg BT 215.98 494.10 Td (e believe that our safety procedures for handling and disposing of such materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (comply with all federal, state and of) Tj ET Q q 0 0 0 rg BT 193.44 482.10 Td (fshore regulations and standards. However) Tj ET Q q 0 0 0 rg BT 363.82 482.10 Td (, the risk of accidental environmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (contamination or injury from such materials cannot be entirely eliminated. In the event of such an accident involving such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (materials, we could be liable for damages and such liability could exceed the amount of our liability insurance coverage and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (resources of our business which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 278.41 446.10 Td (fect on our financial results or our business as a whole.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 426.10 Td (Compliance or the failure to comply with current and future environmental regulations could cause us significant expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 406.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 406.10 Td (e are subject to a variety of federal, state, local and foreign environmental regulations relating to the use, storage, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (dischar) Tj ET Q q 0 0 0 rg BT 78.20 394.10 Td (ge and disposal of hazardous chemicals used during our manufacturing process or requiring design changes or recycling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (of products we manufacture. If we fail to comply with any present and future regulations, we could be subject to future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (liabilities, the suspension of production or a prohibition on the sale of products we manufacture. In addition, such regulations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (could restrict our ability to expand our facilities or could require us to acquire costly equipment, or to incur other significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (expenses to comply with environmental regulations, including expenses associated with the recall of any non-compliant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (product and the management of historical waste.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 314.10 Td (From time to time new regulations are enacted, and it is dif) Tj ET Q q 0 0 0 rg BT 308.42 314.10 Td (ficult to anticipate how such regulations will be implemented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (and enforced. ) Tj ET Q q 0 0 0 rg BT 106.23 302.10 Td (W) Tj ET Q q 0 0 0 rg BT 114.87 302.10 Td (e continue to evaluate the necessary steps for compliance with regulations as they are enacted. ) Tj ET Q q 0 0 0 rg BT 493.98 302.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (regulations include, for example, the Registration, Evaluation, ) Tj ET Q q 0 0 0 rg BT 300.27 290.10 Td (Authorization and Restriction of Chemical substances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (\(REACH\), the Restriction on the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Directive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (\(RoHS\) and the ) Tj ET Q q 0 0 0 rg BT 123.46 266.10 Td (W) Tj ET Q q 0 0 0 rg BT 132.10 266.10 Td (aste Electrical and Electronic Equipment Directive \(WEEE\) enacted in the European Union which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (regulate the use of certain hazardous substances in, and require the collection, reuse and recycling of waste from, certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (products we manufacture. ) Tj ET Q q 0 0 0 rg BT 155.39 242.10 Td (This and similar legislation that has been or is in the process of being enacted in Japan, China, South ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (Korea and various states of the United States may require us to re-design our products to ensure compliance with the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (standards, for example by requiring the use of dif) Tj ET Q q 0 0 0 rg BT 246.76 218.10 Td (ferent types of materials. ) Tj ET Q q 0 0 0 rg BT 348.48 218.10 Td (These redesigns or alternative materials may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (detrimentally impact the performance of our products, add greater testing lead-times for product introductions or have other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (similar ef) Tj ET Q q 0 0 0 rg BT 87.36 194.10 Td (fects. ) Tj ET Q q 0 0 0 rg BT 111.06 194.10 Td (W) Tj ET Q q 0 0 0 rg BT 119.70 194.10 Td (e believe we comply with all such legislation where our products are sold and we will continue to monitor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (these laws and the regulations being adopted under them to determine our responsibilities. In addition, we are monitoring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (legislation relating to the reduction of carbon emissions from industrial operations to determine whether we may be required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (incur any additional material costs or expenses associated with our operations. ) Tj ET Q q 0 0 0 rg BT 365.34 158.10 Td (W) Tj ET Q q 0 0 0 rg BT 373.98 158.10 Td (e are not currently aware of any such material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (costs or expenses. ) Tj ET Q q 0 0 0 rg BT 123.75 146.10 Td (The SEC has promulgated rules requiring disclosure regarding the use of certain conflict minerals mined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (from the Democratic Republic of Congo and adjoining countries and procedures regarding a manufacturer's ef) Tj ET Q q 0 0 0 rg BT 490.41 134.10 Td (forts to prevent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (the sourcing of such minerals. ) Tj ET Q q 0 0 0 rg BT 172.07 122.10 Td (The implementation of such rules has required us to incur additional expense and internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (resources and may continue to do so in the future, particularly in the event that only a limited pool of suppliers are available to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (certify that products are free from conflict minerals. Our failure to comply with any of the foregoing regulatory requirements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (or contractual obligations could result in our being directly or indirectly liable for costs, fines or penalties and third-party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (claims, and could jeopardize our ability to conduct business in the United States and foreign countries.) Tj ET Q endstream endobj 67 0 obj <>] /Rotate 0 /Contents 68 0 R>> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (31) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Our and our customers' operations would be seriously harmed if our logistics or facilities or those of our suppliers, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (customers' suppliers or our contract manufacturers were to experience catastrophic loss.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 710.25 Td (Our operations, logistics and facilities and those of our customers, suppliers and contract manufacturers could be subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (to a catastrophic loss from fire, flood, earthquake, volcanic eruption, work stoppages, power outages, acts of war) Tj ET Q q 0 0 0 rg BT 500.07 698.25 Td (, pandemic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (illnesses, ener) Tj ET Q q 0 0 0 rg BT 105.41 686.25 Td (gy shortages, theft of assets, other natural disasters or terrorist activity) Tj ET Q q 0 0 0 rg BT 385.24 686.25 Td (. ) Tj ET Q q 0 0 0 rg BT 389.69 686.25 Td (A) Tj ET Q q 0 0 0 rg BT 396.36 686.25 Td ( substantial portion of our research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (development activities, manufacturing, our corporate headquarters and other critical business operations are located near major ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (earthquake faults in Santa Clara, California, an area with a history of seismic events. ) Tj ET Q q 0 0 0 rg BT 389.67 662.25 Td (Any such loss or detrimental impact to any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (of our operations, logistics or facilities could disrupt our operations, delay production, shipments and net sales and result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 638.25 Td (ge expenses to repair or replace the facility) Tj ET Q q 0 0 0 rg BT 231.08 638.25 Td (. ) Tj ET Q q 0 0 0 rg BT 235.90 638.25 Td (While we have obtained insurance to cover most potential losses, after reviewing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (the costs and limitations associated with earthquake insurance, we have decided not to procure such insurance. ) Tj ET Q q 0 0 0 rg BT 494.17 626.25 Td (W) Tj ET Q q 0 0 0 rg BT 502.81 626.25 Td (e believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (this decision is consistent with decisions reached by numerous other companies located nearby) Tj ET Q q 0 0 0 rg BT 428.20 614.25 Td (. ) Tj ET Q q 0 0 0 rg BT 433.02 614.25 Td (W) Tj ET Q q 0 0 0 rg BT 441.65 614.25 Td (e cannot assure you that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (existing insurance coverage will be adequate against all other possible losses.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 582.25 Td (Dif) Tj ET Q q 0 0 0 rg BT 62.65 582.25 Td (ficulties with our enterprise resource planning \(ERP\) system and other parts of our global information technology ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 570.25 Td (system could harm our business and results of operation. If our network security measures are breached and unauthorized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 558.25 Td (access is obtained to a customer's data or our data or our information technology systems, we may incur significant legal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 546.25 Td (and financial exposure and liabilities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 526.25 Td (Like many modern multinational corporations, we maintain a global information technology system, including software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (products licensed from third parties. ) Tj ET Q q 0 0 0 rg BT 198.63 514.25 Td (Any system, network or Internet failures, misuse by system users, the hacking into or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (disruption caused by the unauthorized access by third parties or loss of license rights could disrupt our ability to timely and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (accurately manufacture and ship products or to report our financial information in compliance with the timelines mandated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (the SEC. ) Tj ET Q q 0 0 0 rg BT 89.50 478.25 Td (Any such failure, misuse, hacking, disruptions or loss would likely cause a diversion of management's attention from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (the underlying business and could harm our operations. In addition, a significant failure of our global information technology ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (system could adversely af) Tj ET Q q 0 0 0 rg BT 152.90 454.25 Td (fect our ability to complete an evaluation of our internal controls and attestation activities pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (Section 404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 190.86 442.25 Td (Act of 2002. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (Our information systems are subject to attacks, interruptions and failures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 402.25 Td (As part of our day-to-day business, we store our data and certain data about our customers in our global information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.25 Td (technology system. ) Tj ET Q q 0 0 0 rg BT 129.03 390.25 Td (While our system is designed with access security) Tj ET Q q 0 0 0 rg BT 328.61 390.25 Td (, if a third party gains unauthorized access to our data, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.25 Td (including any regarding our customers, such a security breach could expose us to a risk of loss of this information, loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.25 Td (business, litigation and possible liability) Tj ET Q q 0 0 0 rg BT 209.68 366.25 Td (. Our security measures may be breached as a result of third-party action, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.25 Td (intentional misconduct by computer hackers, employee error) Tj ET Q q 0 0 0 rg BT 292.07 354.25 Td (, malfeasance or otherwise. ) Tj ET Q q 0 0 0 rg BT 403.14 354.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 453.04 354.25 Td (, third parties may attempt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.25 Td (to fraudulently induce employees or customers into disclosing sensitive information such as user names, passwords or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.25 Td (information in order to gain access to our customers' data or our data, including our intellectual property and other confidential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (business information, or our information technology systems. Because the techniques used to obtain unauthorized access, or to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.25 Td (sabotage systems, change frequently and generally are not recognized until launched against a tar) Tj ET Q q 0 0 0 rg BT 438.61 306.25 Td (get, we may be unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.25 Td (anticipate these techniques or to implement adequate preventative measures. ) Tj ET Q q 0 0 0 rg BT 357.16 294.25 Td (Any unauthorized access could result in a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.25 Td (confidence by our customers, damage our reputation, disrupt our business, lead to legal liability and negatively impact our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.25 Td (future sales. ) Tj ET Q q 0 0 0 rg BT 99.76 270.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 149.67 270.25 Td (, such actions could result in significant costs associated with loss of our intellectual property) Tj ET Q q 0 0 0 rg BT 521.99 270.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.25 Td (impairment of our ability to conduct our operations, rebuilding our network and systems, prosecuting and defending litigation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.25 Td (responding to regulatory inquiries or actions, paying damages or taking other remedial steps.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (Changes in tax rates, tax liabilities or tax accounting rulescould af) Tj ET Q q 0 0 0 rg BT 326.58 226.25 Td (fect future results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 206.25 Td (As a global company) Tj ET Q q 0 0 0 rg BT 156.05 206.25 Td (, we are subject to taxation in the United States and various other countries and jurisdictions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (Significant judgment is required to determine our worldwide tax liabilities. ) Tj ET Q q 0 0 0 rg BT 351.38 194.25 Td (A) Tj ET Q q 0 0 0 rg BT 358.05 194.25 Td ( number of factors may af) Tj ET Q q 0 0 0 rg BT 461.44 194.25 Td (fect our future ef) Tj ET Q q 0 0 0 rg BT 528.72 194.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (tax rates including, but not limited to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 162.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 162.25 Td (changes in the composition of earnings in countries or states with dif) Tj ET Q q 0 0 0 rg BT 382.54 162.25 Td (fering tax rates;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 142.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 142.25 Td (changes the assessment of the ability to recognize our deferred tax assets and change in the valuation of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 130.25 Td (deferred tax liabilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 110.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 110.25 Td (the resolution of issues arising from tax audits with various tax authorities, and in particular) Tj ET Q q 0 0 0 rg BT 473.96 110.25 Td (, the outcome of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 98.25 Td (German tax audits of our tax returns for fiscal years 201) Tj ET Q q 0 0 0 rg BT 331.50 98.25 Td (1 - 2014 and the U.S. tax audit of our tax return for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 86.25 Td (year 2013;) Tj ET Q endstream endobj 69 0 obj <>] /Rotate 0 /Contents 70 0 R>> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 742.10 Td (changes in our global structure that involve acquisitions including the Rofin acquisition, or an increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 730.10 Td (investment in technology outside of the United States to better align asset ownership and business functions with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 718.10 Td (revenues and profits; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 698.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 698.10 Td (adjustments to estimated taxes upon finalization of various tax returns;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 678.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 678.10 Td (increases in expenses not deductible for tax purposes, including impairments of goodwill in connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 666.10 Td (acquisitions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 646.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 646.10 Td (our ability to meet the eligibility requirements for tax holidays of limited time tax-advantage status;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 626.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 626.10 Td (changes in available tax credits;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 606.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 606.10 Td (changes in share-based compensation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 586.10 Td (changes in the tax laws or the interpretation of such tax laws, including the Base Erosion Profit Shifting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 574.10 Td (\(BEPS\) project being conducted by the Or) Tj ET Q q 0 0 0 rg BT 285.60 574.10 Td (ganization for Economic Co-operation and Development \(OECD\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 554.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 554.10 Td (changes in generally accepted accounting principles; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 534.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 534.10 Td (the repatriation of non-U.S. earnings for which we have not previously provided for U.S. taxes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 514.10 Td (e are also engaged in discussions with various tax authorities regarding the appropriate level of profitability for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (Coherent entities and this may result in changes to our worldwide tax liabilities. In addition, we are subject to regular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (examination of our income tax returns by the Internal Revenue Service \(IRS\) and other tax authorities. From time to time the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (United States, foreign and state governments make substantive changes to tax rulesand the application of rulesto companies, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (including various announcements from the United States government potentially impacting our ability to defer taxes on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (international earnings. ) Tj ET Q q 0 0 0 rg BT 141.23 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 149.87 454.10 Td (e regularly assess the likelihood of favorable or unfavorable outcomes resulting from these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (examinations to determine the adequacy of our provision for income taxes. ) Tj ET Q q 0 0 0 rg BT 351.08 442.10 Td (Although we believe our tax estimates are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (reasonable, there can be no assurance that any final determination will not be materially dif) Tj ET Q q 0 0 0 rg BT 414.46 430.10 Td (ferent than the treatment reflected in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (our historical income tax provisions and accruals, which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 410.59 418.10 Td (fect our operating results and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Changing laws, regulations and standards relating to corporate governance and public disclosure may create uncertainty ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (regarding compliance matters. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 354.10 Td (Federal securities laws, rulesand regulations, as well as the rulesand regulations of self-regulatory or) Tj ET Q q 0 0 0 rg BT 481.14 354.10 Td (ganizations such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (NASDAQ and the NYSE, require companies to maintain extensive corporate governance measures, impose comprehensive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (reporting and disclosure requirements, set strict independence and financial expertise standards for audit and other committee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (members and impose civil and criminal penalties for companies and their chief executive of) Tj ET Q q 0 0 0 rg BT 416.69 318.10 Td (ficers, chief financial of) Tj ET Q q 0 0 0 rg BT 512.01 318.10 Td (ficers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (directors for securities law violations. ) Tj ET Q q 0 0 0 rg BT 202.61 306.10 Td (These laws, rulesand regulations have increased and will continue to increase the scope, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (complexity and cost of our corporate governance, reporting and disclosure practices, which could harm our results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (and divert management's attention from business operations. Changing laws, regulations and standards relating to corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (governance and public disclosure may create uncertainty regarding compliance matters. New or changed laws, regulations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (standards are subject to varying interpretations in many cases. ) Tj ET Q q 0 0 0 rg BT 299.43 258.10 Td (As a result, their application in practice may evolve over time. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 246.10 Td (e are committed to maintaining high standards of ethics, corporate governance and public disclosure. Complying with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (evolving interpretations of new or changed legal requirements may cause us to incur higher costs as we revise current practices, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (policies and procedures, and may divert management time and attention from revenue generating to compliance activities. If ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (our ef) Tj ET Q q 0 0 0 rg BT 72.92 210.10 Td (forts to comply with new or changed laws, regulations and standards dif) Tj ET Q q 0 0 0 rg BT 361.00 210.10 Td (fer from the activities intended by regulatory or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (governing bodies due to ambiguities related to practice, our reputation may also be harmed.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (Governmental regulations, including duties, af) Tj ET Q q 0 0 0 rg BT 242.12 178.10 Td (fecting the import or export of products could negatively af) Tj ET Q q 0 0 0 rg BT 484.42 178.10 Td (fect our net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 158.10 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 321.20 158.10 Td (fs and duties on the import and export of products, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (including some of those which we sell. In particular) Tj ET Q q 0 0 0 rg BT 256.55 146.10 Td (, given our worldwide operations, we pay duties on certain products when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (they are imported into the United States for repair work as well as on certain of our products which are manufactured by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (foreign subsidiaries. ) Tj ET Q q 0 0 0 rg BT 132.91 122.10 Td (These products can be subject to a duty on the product value. ) Tj ET Q q 0 0 0 rg BT 379.23 122.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 429.13 122.10 Td (, the United States and various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (foreign governments have imposed tarif) Tj ET Q q 0 0 0 rg BT 209.27 110.10 Td (fs, controls, export license requirements and restrictions on the import or export of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (some technologies, especially encryption technology) Tj ET Q q 0 0 0 rg BT 260.18 98.10 Td (. From time to time, government agencies have proposed additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (regulation of encryption technology) Tj ET Q q 0 0 0 rg BT 192.42 86.10 Td (, such as requiring the escrow and governmental recovery of private encryption keys. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (Governmental regulation of encryption technology and regulation of imports or exports, or our failure to obtain required import ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (or export approval for our products, could harm our international and domestic sales and adversely af) Tj ET Q q 0 0 0 rg BT 454.74 62.10 Td (fect our net sales. From ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.10 Td (time to time our duty calculations and payments are audited by government agencies. For example, we were audited in South ) Tj ET Q endstream endobj 71 0 obj <>] /Rotate 0 /Contents 72 0 R>> endobj 72 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (Korea for customs duties and value-added-tax for the period March 2009 to March 2014. ) Tj ET Q q 0 0 0 rg BT 407.82 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 416.46 742.10 Td (e were liable for additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (payments, duties, taxes and penalties of $1.6 million, which we paid in the second quarter of fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 470.79 730.10 Td (Any future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (assessments could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 229.25 718.10 Td (fect on our business or financial position, results of operations, or cash flows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 698.10 Td (In addition, compliance with the directives of the Directorate of Defense ) Tj ET Q q 0 0 0 rg BT 364.49 698.10 Td (T) Tj ET Q q 0 0 0 rg BT 370.24 698.10 Td (rade Controls \(DDTC\) may result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (substantial expenses and diversion of management. ) Tj ET Q q 0 0 0 rg BT 256.39 686.10 Td (Any failure to adequately address the directives of DDTC could result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (civil fines or suspension or loss of our export privileges, any of which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 460.59 674.10 Td (fect on our business or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (financial position, results of operations, or cash flows.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (Failure to maintain ef) Tj ET Q q 0 0 0 rg BT 140.72 642.10 Td (fective internal controls may cause a loss of investor confidence in the reliability of our financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (statements or to cause us to delay filing our periodic reports with the SEC and adversely af) Tj ET Q q 0 0 0 rg BT 422.11 630.10 Td (fect our stock price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 610.10 Td (The SEC, as directed by Section404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 312.78 610.10 Td (Act of 2002, adopted rulesrequiring public companies to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (include a report of management on internal control over financial reporting in their annual reports on Form10-K that contain an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (assessment by management of the ef) Tj ET Q q 0 0 0 rg BT 195.66 586.10 Td (fectiveness of our internal control over financial reporting. In addition, our independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (registered public accounting firm must attest to and report on the ef) Tj ET Q q 0 0 0 rg BT 318.96 574.10 Td (fectiveness of our internal control over financial reporting. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (Although we test our internal control over financial reporting in order to ensure compliance with the Section404 requirements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (our failure to maintain adequate internal controls over financial reporting could result in an adverse reaction in the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (marketplace due to a loss of investor confidence in the reliability of our financial statements or a delay in our ability to timely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (file our periodic reports with the SEC, which ultimately could negatively impact our stock price.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (Provisions of our charter documents and Delaware law) Tj ET Q q 0 0 0 rg BT 276.65 506.10 Td (, and our Change-of-Control Severance Plan may have anti-takeover ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 494.10 Td (fects that could prevent or delay a change in control.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 474.10 Td (Provisions of our certificate of incorporation and bylaws may discourage, delay or prevent a mer) Tj ET Q q 0 0 0 rg BT 458.64 474.10 Td (ger or acquisition or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.10 Td (make removal of incumbent directors or of) Tj ET Q q 0 0 0 rg BT 220.93 462.10 Td (ficers more dif) Tj ET Q q 0 0 0 rg BT 279.61 462.10 Td (ficult. ) Tj ET Q q 0 0 0 rg BT 305.53 462.10 Td (These provisions may discourage takeover attempts and bids ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.10 Td (for our common stock at a premium over the market price. ) Tj ET Q q 0 0 0 rg BT 285.91 450.10 Td (These provisions include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 430.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 430.10 Td (the ability of our Board of Directors to alter our bylaws without stockholder approval;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 410.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 410.10 Td (limiting the ability of stockholders to call special meetings; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 390.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 390.10 Td (establishing advance notice requirements for nominations for election to our Board of Directors or for proposing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 378.10 Td (matters that can be acted on by stockholders at stockholder meetings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 358.10 Td (e are subject to Section203 of the Delaware General Corporation Law) Tj ET Q q 0 0 0 rg BT 361.82 358.10 Td (, which prohibits a publicly-held Delaware ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (corporation from engaging in a mer) Tj ET Q q 0 0 0 rg BT 191.77 346.10 Td (ger) Tj ET Q q 0 0 0 rg BT 204.14 346.10 Td (, asset or stock sale or other transaction with an interested stockholder for a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (three years following the date such person became an interested stockholder) Tj ET Q q 0 0 0 rg BT 353.43 334.10 Td (, unless prior approval of our board of directors is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (obtained or as otherwise provided. ) Tj ET Q q 0 0 0 rg BT 189.84 322.10 Td (These provisions of Delaware law also may discourage, delay or prevent someone from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (acquiring or mer) Tj ET Q q 0 0 0 rg BT 115.96 310.10 Td (ging with us without obtaining the prior approval of our board of directors, which may cause the market price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (of our common stock to decline. In addition, we have adopted a change of control severance plan, which provides for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (payment of a cash severance benefit to each eligible employee based on the employee's position. If a change of control occurs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (our successor or acquirer will be required to assume and agree to perform all of our obligations under the change of control ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (severance plan which may discourage potential acquirers or result in a lower stock price.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 222.10 Td (ITEM 1B.UNRESOL) Tj ET Q q 0 0 0 rg BT 150.77 222.10 Td (VED ST) Tj ET Q q 0 0 0 rg BT 185.87 222.10 Td (AFF) Tj ET Q q 0 0 0 rg BT 204.94 222.10 Td ( COMMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 202.10 Td (Not ) Tj ET Q q 0 0 0 rg BT 90.95 202.10 Td (Applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (ITEM 2.PROPER) Tj ET Q q 0 0 0 rg BT 137.43 170.10 Td (TIES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 150.10 Td (Our corporate headquarters is located in Santa Clara, California. ) Tj ET Q q 0 0 0 rg BT 333.07 150.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.73 150.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.73 150.10 Td (year) Tj ET Q q 0 0 0 rg BT 409.23 150.10 Td (-end, our locations with lar) Tj ET Q q 0 0 0 rg BT 517.08 150.10 Td (ger than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (10,000 square feet were as follows \(all square footage is approximate\) \(unless otherwise indicated, each property is utilized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (jointly by our two segments\):) Tj ET Q endstream endobj 73 0 obj <>] /Rotate 0 /Contents 74 0 R>> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (34) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 734.50 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 734.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 734.50 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 734.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 734.50 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 734.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 734.50 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 694.50 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 694.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg 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156.50 594.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 594.50 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 594.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 594.50 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 594.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 594.50 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 546.50 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 546.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 546.50 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 546.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 546.50 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 546.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 546.50 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 506.50 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 506.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 506.50 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 506.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 506.50 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 506.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 506.50 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 445.50 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 445.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 445.50 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 445.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 445.50 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 445.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 445.50 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 381.50 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 381.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 381.50 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 381.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 381.50 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 381.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 381.50 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 331.50 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 331.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 331.50 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 331.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 331.50 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 331.50 4.00 -25.00 re f 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0.9333333333333333 1 rg /GS0 gs 298.50 131.50 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 131.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 131.50 126.00 -25.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 734.5 m 294.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 734.5 m 431.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 734.5 m 561.5 734.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 739.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 207.20 738.73 Td (Description) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.25 738.73 Td (Use) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.30 739.07 Td (T) Tj ET Q q 0 0 0 rg BT 490.90 739.07 Td (erm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.67 739.07 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 725.07 Td (Santa Clara, CA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 725.07 Td (8.5 acres of land, 200,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 715.07 Td (square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 725.07 Td (Corporate headquarters,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 715.07 Td (manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 725.07 Td (Owned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 700.07 Td (Santa Clara, CA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 700.07 Td (90,120 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 700.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 700.07 Td (Leased through July 2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 685.07 Td (Sunnyvale, CA \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 685.07 Td (24,159 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 685.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 685.07 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 675.07 Td (2023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 660.07 Td (Richmond, CA \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 660.07 Td (37,952 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 660.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 660.07 Td (Leased through November) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 650.07 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 635.07 Td (Richmond, CA \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 635.07 Td (30,683 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 635.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 635.07 Td (Leased through February) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 625.07 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 610.07 Td (Richmond, CA \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 610.07 Td (11,500 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 610.07 Td (Warehouse) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 610.07 Td (Leased through November) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 600.07 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 585.07 Td (Bloomfield, CT \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 585.07 Td (72,996 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 585.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 585.07 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 575.07 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 560.07 Td (East Hanover, NJ \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 560.07 Td (29,932 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 560.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 560.07 Td (Leased through January 2025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 537.07 Td (Wilsonville, OR \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 537.07 Td (41,250 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 537.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 537.07 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 527.07 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 512.07 Td (Salem, NH\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 512.07 Td (44,153 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 512.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 512.07 Td (Leased through October 2024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 497.07 Td (Dieburg, Germany) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 497.07 Td (32,123 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 497.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 497.07 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 487.07 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 472.07 Td (Gttingen, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 472.07 Td (14.2 acres of land, several) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 462.07 Td (buildings totaling 224,753) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 452.07 Td (square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 472.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 472.07 Td (Owned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 436.07 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 436.07 Td (40,944 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 436.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 436.07 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 426.07 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 411.07 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 411.07 Td (22,583 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 411.07 Td (Manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 411.07 Td (Leased through October 2018 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 401.07 Td (with option to purchase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 391.07 Td (building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 372.07 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 372.07 Td (8,095 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 372.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 361.17 Td (Leased through April 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 347.07 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 347.07 Td (7,578 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 347.07 Td (Warehouse) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 347.07 Td (Leased through April 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 322.07 Td (Kaiserslautern, Germany) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 312.07 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 322.07 Td (33,740 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 322.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 322.07 Td (Leased through September) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 312.07 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 297.07 Td (Glasgow, Scotland \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 297.07 Td (2 acres of land, 31,600 square) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 287.07 Td (feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 297.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 297.07 Td (Owned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 272.07 Td (Tokyo, Japan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 272.07 Td (17,602 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 272.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 272.07 Td (Leased through June 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 247.07 Td (Shanghai, China) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 247.07 Td (11,127 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 247.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 247.07 Td (Leased through May 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 222.07 Td (Beijing, China) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 222.07 Td (10,739 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 222.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 222.07 Td (Leased through July 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 197.07 Td (Seoul, South Korea) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 197.07 Td (19,119 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 197.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 197.07 Td (Leased through June 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 172.07 Td (YongIn-Si, South Korea) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 162.07 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 172.07 Td (33,074 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 172.07 Td (Office, manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 172.07 Td (Leased through November) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 162.07 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 147.07 Td (Kallang Sector,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 137.07 Td (Singapore) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 147.07 Td (39,332 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 147.07 Td (Office, manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 147.07 Td (Leased through January 2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 122.07 Td (Penang, Malaysia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 122.07 Td (12,519 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 122.07 Td (Office, manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 122.07 Td (Leased through August 2017) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 95.00 Td (_________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 83.00 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 83.00 Td (This facility is utilized primarily by our CLC operating segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 71.00 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 71.00 Td (This facility is utilized primarily by our SLS operating segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 59.00 Td (* ) Tj ET Q q 0 0 0 rg BT 113.00 59.00 Td (W) Tj ET Q q 0 0 0 rg BT 121.64 59.00 Td (e currently plan to renew leases on buildings as they expire. ) Tj ET Q endstream endobj 75 0 obj <>] /Rotate 0 /Contents 76 0 R>> endobj 76 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 742.10 Td (e maintain other sales and service of) Tj ET Q q 0 0 0 rg BT 226.46 742.10 Td (fices under varying leases expiring from 2017 through 2020 in Japan, China, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 730.10 Td (aiwan, France, Italy) Tj ET Q q 0 0 0 rg BT 134.17 730.10 Td (, the United Kingdom and the Netherlands.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 710.10 Td (e consider our facilities to be both suitable and adequate to provide for current and near term requirements and that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (productive capacity in our facilities is substantially being utilized or we have plans to utilize it.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 Td (ITEM 3.LEGAL) Tj ET Q q 0 0 0 rg BT 131.13 666.10 Td ( PROCEEDINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 646.10 Td (e are subject to legal claims and litigation arising in the ordinary course of business, such as product liability) Tj ET Q q 0 0 0 rg BT 514.55 646.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (employment or intellectual property claims, including, but not limited to, the matters described below) Tj ET Q q 0 0 0 rg BT 455.92 634.10 Td (. On May 14, 2013, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (IMRA) Tj ET Q q 0 0 0 rg BT 75.56 622.10 Td ( ) Tj ET Q q 0 0 0 rg BT 77.51 622.10 Td (America \(Imra\) filed a complaint for patent infringement against two of our subsidiaries in the Regional Court of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (Dsseldorf, Germany) Tj ET Q q 0 0 0 rg BT 135.44 610.10 Td (, captioned In re IMRA) Tj ET Q q 0 0 0 rg BT 228.47 610.10 Td ( ) Tj ET Q q 0 0 0 rg BT 230.42 610.10 Td (America Inc. versus Coherent Kaiserslautern GmbH et. al. 4b O 38/13. ) Tj ET Q q 0 0 0 rg BT 516.55 610.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (complaint alleges that the use of certain of the Company) Tj ET Q q 0 0 0 rg BT 278.54 598.10 Td (s lasers infringes upon EP) Tj ET Q q 0 0 0 rg BT 382.05 598.10 Td ( Patent No. 754,103, entitled Method For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (Controlling Configuration of Laser Induced Breakdown and ) Tj ET Q q 0 0 0 rg BT 292.45 586.10 Td (Ablation, issued November 5, 1997. ) Tj ET Q q 0 0 0 rg BT 443.91 586.10 Td (The patent, now expired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (all jurisdictions, is owned by the University of Michigan and licensed to Imra. ) Tj ET Q q 0 0 0 rg BT 365.03 574.10 Td (The complaint seeks unspecified compensatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (damages, the cost of court proceedings and seeks to permanently enjoin the Company from infringing the patent in the future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (Following the filing of the infringement suit, our subsidiaries filed a separate nullity action with the Federal Patent Court in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (Munich, Germany requesting that the court hold that the Patent was invalid based on prior art. On October 1, 2015, the Federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (Patent Court ruled that the German portion of the Patent was invalid. Imra has appealed this decision to the Federal Court of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (Justice, the highest civil jurisdiction court in Germany) Tj ET Q q 0 0 0 rg BT 266.53 514.10 Td (. ) Tj ET Q q 0 0 0 rg BT 271.35 514.10 Td (The infringement action is currently stayed pending the outcome of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (appeal. Management has made an accrual with respect to this matter and has determined, based on its current knowledge, that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (the amount or range of reasonably possible losses in excess of the amounts already accrued is not reasonably estimable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (Although we do not expect that such legal claims and litigation will ultimately have a material adverse ef) Tj ET Q q 0 0 0 rg BT 470.52 478.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (consolidated financial position, results of operations or cash flows, an adverse result in one or more matters could negatively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 454.10 Td (fect our results in the period in which they occur) Tj ET Q q 0 0 0 rg BT 251.14 454.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 434.10 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 321.70 434.10 Td (fs and duties on the import and export of certain products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (we sell. From time to time our duty calculations and payments are audited by government agencies.During the second quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (of fiscal 2016, we concluded an audit in South Korea for customs duties and value added tax for the period March 2009 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (March 2014. ) Tj ET Q q 0 0 0 rg BT 103.42 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 112.06 398.10 Td (e paid $1.6 million related to this matter in the second quarter of fiscal 2016 and have no remaining accrual at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (October 1, 2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (Income ) Tj ET Q q 0 0 0 rg BT 83.98 366.10 Td (T) Tj ET Q q 0 0 0 rg BT 89.73 366.10 Td (ax ) Tj ET Q q 0 0 0 rg BT 101.68 366.10 Td (Audits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 346.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 346.10 Td (e are subject to taxation and file income tax returns in the U.S. federal jurisdiction and in many state and foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (jurisdictions. For U.S. federal income tax purposes, all years prior to fiscal 201) Tj ET Q q 0 0 0 rg BT 365.67 334.10 Td (1 are closed. ) Tj ET Q q 0 0 0 rg BT 418.24 334.10 Td (The Company agreed to extend the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (statutes of limitations for its fiscal 201) Tj ET Q q 0 0 0 rg BT 203.50 322.10 Td (1 and 2012 U.S. federal tax returns to June 17, 2017 due to an ongoing ) Tj ET Q q 0 0 0 rg BT 488.45 322.10 Td (Advanced Pricing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (Agreement \(AP) Tj ET Q q 0 0 0 rg BT 116.56 310.10 Td (A\) between the U.S. and Korea. In March 2016, the Internal Revenue Service \(IRS\) issued an audit notice and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (Information Documentation Requests \(IDRs\) for fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 296.43 298.10 Td (The audit is currently in progress and the statute of limitation was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (extended to December 31, 2017. In our major foreign jurisdictions and our major state jurisdictions, the years prior to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (201) Tj ET Q q 0 0 0 rg BT 64.63 274.10 Td (1 and 2012, respectively) Tj ET Q q 0 0 0 rg BT 161.73 274.10 Td (, are closed to examination. Earlier years in our various jurisdictions may remain open for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (adjustment to the extent that we have tax attribute carryforwards from those years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 242.10 Td (In December 201) Tj ET Q q 0 0 0 rg BT 141.54 242.10 Td (1 and January 2012, three of our German subsidiaries received notices of tax audits for the fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (2006 through 2010. ) Tj ET Q q 0 0 0 rg BT 130.93 230.10 Td (The audits were completed in the third quarter of fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 378.07 230.10 Td (As a result of the settlement, our gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (uncertain tax positions decreased by approximately $4.9 million. ) Tj ET Q q 0 0 0 rg BT 311.42 218.10 Td (The net provision impact of the adjustments was immaterial to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (the consolidated statement of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 186.10 Td (In July 2015 and March 2016, Coherent Kaiserslautern GmbH \(formerly Lumera Laser GmbH\) received tax audit notices ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (for the fiscal years 2010 to 2014. ) Tj ET Q q 0 0 0 rg BT 184.23 174.10 Td (The audit began in ) Tj ET Q q 0 0 0 rg BT 260.87 174.10 Td (August 2015. ) Tj ET Q q 0 0 0 rg BT 317.08 174.10 Td (W) Tj ET Q q 0 0 0 rg BT 325.72 174.10 Td (e acquired the shares of Lumera Laser GmbH in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (December 2012 and, pursuant to the terms of the acquisition agreement, we should not have responsibility for any assessments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (related to the pre-acquisition period. In June, 2016, Coherent Holding GmbH and Coherent Deutschland GmbH each received a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (tax audit notice for the fiscal years 201) Tj ET Q q 0 0 0 rg BT 205.41 138.10 Td (1 to 2014. ) Tj ET Q q 0 0 0 rg BT 248.00 138.10 Td (The audit began in the fourth quarter of fiscal 2016. Coherent GmbH, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (Coherent LaserSystems GmbH & Co. KG and Coherent Germany GmbH received audit notices for the period that they were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (in existence during the fiscal years 201) Tj ET Q q 0 0 0 rg BT 205.69 114.10 Td (1 through 2014 and the audit work is scheduled to commence in January 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 94.10 Td (e regularly engage in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (management believes that it has adequately provided reserves for any adjustments that may result from tax examinations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 45.10 Td (ITEM 4.MINE SAFETY) Tj ET Q q 0 0 0 rg BT 165.47 45.10 Td ( DISCLOSURES) Tj ET Q endstream endobj 77 0 obj <>] /Rotate 0 /Contents 78 0 R>> endobj 78 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 742.10 Td (Not applicable.) Tj ET Q endstream endobj 79 0 obj <>] /Rotate 0 /Contents 80 0 R>> endobj 80 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (37) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.85 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 293.22 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 307.31 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 313.80 742.25 Td ( II) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (ITEM 5.MARKET) Tj ET Q q 0 0 0 rg BT 141.49 698.25 Td ( FOR ) Tj ET Q q 0 0 0 rg BT 167.42 698.25 Td (THE REGISTRANT'S COMMON EQUITY) Tj ET Q q 0 0 0 rg BT 357.92 698.25 Td (, RELA) Tj ET Q q 0 0 0 rg BT 389.96 698.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 425.07 698.25 Td (OCKHOLDER MA) Tj ET Q q 0 0 0 rg BT 509.60 698.25 Td (TTERS ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (AND ISSUER PURCHASES OF) Tj ET Q q 0 0 0 rg BT 189.38 686.25 Td ( EQUITY) Tj ET Q q 0 0 0 rg BT 230.96 686.25 Td ( SECURITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 666.25 Td (Our common stock is quoted on the NASDAQ Stock Market under the symbol "COHR." ) Tj ET Q q 0 0 0 rg BT 432.78 666.25 Td (The following table sets forth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (the high and low sales prices for each quarterly period during the past two fiscal years as reported on the Nasdaq Global Select ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (Market.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 586.75 304.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.50 586.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 586.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 586.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 586.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.50 586.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 586.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 586.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 558.75 304.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.50 558.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 558.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 558.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 558.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.50 558.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 558.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 558.75 49.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 610.75 m 402.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 610.75 m 406.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 610.75 m 455.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 610.75 m 459.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 610.75 m 508.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 610.75 m 512.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 610.75 m 561.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 598.75 m 402.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 598.75 m 406.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 598.75 m 455.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 598.75 m 508.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 598.75 m 512.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 598.75 m 561.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 586.75 m 402.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 586.75 m 455.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 586.75 m 508.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 586.75 m 561.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 586.75 m 402.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 586.75 m 455.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 586.75 m 508.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 586.75 m 561.5 586.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 614.48 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.00 614.98 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 602.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.00 602.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.00 602.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 590.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 369.05 590.83 Td (High) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.90 590.83 Td (Low) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.05 590.83 Td (High) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.90 590.83 Td (Low) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 577.32 Td (First quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 577.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 577.32 Td (68.33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 577.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 577.32 Td (52.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 577.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 577.32 Td (65.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 577.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 577.32 Td (54.53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 563.32 Td (Second quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 563.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 563.32 Td (92.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 563.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 563.32 Td (57.96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 563.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 563.32 Td (67.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 563.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 563.32 Td (54.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 549.32 Td (Third quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 549.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 549.32 Td (98.26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 549.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 549.32 Td (84.11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 549.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 549.32 Td (68.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 549.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 549.32 Td (60.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 535.32 Td (Fourth quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 535.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 535.32 Td (111.63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 535.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 535.32 Td (89.43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 535.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 535.32 Td (63.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 535.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 535.32 Td (53.09) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 511.25 Td (The number of stockholders of record as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.50 511.25 Td (November28, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.21 511.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.76 511.25 Td (746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.76 511.25 Td (. ) Tj ET Q q 0 0 0 rg BT 369.58 511.25 Td (While we paid a cash dividend in fiscal 2013 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.25 Td (and may elect to pay dividends in the future, we have no present intention to declare cash dividends. Our line of credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 487.25 Td (agreement, signed on November 7, 2016, includes certain restrictions on our ability to pay cash dividends.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 467.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.50 467.25 Td (There were no sales of unregistered securities in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.98 467.25 Td (fiscal 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.13 467.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 447.25 Td (There were no stock repurchases during the fourth quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.96 447.25 Td (fiscal 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.11 447.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 427.25 Td (Refer to Note 1) Tj ET Q q 0 0 0 rg BT 134.05 427.25 Td (1 "Stock Repurchases" of our Notes to Consolidated Financial Statements under Item15 of this annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 415.25 Td (report for discussion on repurchases during fiscal 2015 and 2014.) Tj ET Q endstream endobj 81 0 obj <>] /Rotate 0 /Contents 82 0 R>> endobj 82 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (38) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 204.25 722.25 Td (COMP) Tj ET Q q 0 0 0 rg BT 234.05 722.25 Td (ANY) Tj ET Q q 0 0 0 rg BT 255.35 722.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 269.90 722.25 Td (OCK PRICE PERFORMANCE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 702.25 Td (The following graph shows a five-year comparison of cumulative total stockholder return, calculated on a dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 690.25 Td (reinvestment basis and based on a $100 investment, from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.62 690.25 Td (October1, 201) Tj ET Q q 0 0 0 rg BT 340.95 690.25 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.95 690.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.06 690.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.77 690.25 Td ( comparing the return on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (common stock with the Russell 2000 Index, the Standard and Poors ) Tj ET Q q 0 0 0 rg BT 323.12 678.25 Td (T) Tj ET Q q 0 0 0 rg BT 328.53 678.25 Td (echnology Index and the Nasdaq Composite Index. ) Tj ET Q q 0 0 0 rg BT 535.52 678.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (stock price performance shown on the following graph is not necessarily indicative of future price performance.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.35 646.25 Td (COMP) Tj ET Q q 0 0 0 rg BT 124.15 646.25 Td (ARISON OF) Tj ET Q q 0 0 0 rg BT 179.07 646.25 Td ( FIVE-YEAR CUMULA) Tj ET Q q 0 0 0 rg BT 283.88 646.25 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 310.65 646.25 Td (T) Tj ET Q q 0 0 0 rg BT 317.14 646.25 Td (OT) Tj ET Q q 0 0 0 rg BT 330.84 646.25 Td (AL) Tj ET Q q 0 0 0 rg BT 344.18 646.25 Td ( RETURN ) Tj ET Q q 0 0 0 rg BT 390.86 646.25 Td (AMONG COHERENT) Tj ET Q q 0 0 0 rg BT 489.29 646.25 Td (,INC.,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.55 626.25 Td (THE RUSSELL) Tj ET Q q 0 0 0 rg BT 221.19 626.25 Td ( 2000 INDEX, ) Tj ET Q q 0 0 0 rg BT 283.24 626.25 Td (THE S&P) Tj ET Q q 0 0 0 rg BT 326.30 626.25 Td ( ) Tj ET Q q 0 0 0 rg BT 328.62 626.25 Td (TECHNOLOGY) Tj ET Q q 0 0 0 rg BT 401.04 626.25 Td ( INDEX ) Tj ET Q q 0 0 0 rg BT 437.72 626.25 Td (AND) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.65 606.25 Td (THE NASDAQ COMPOSITE INDEX.) Tj ET Q /GS0 gs q 512.00 0 0 237.95 50.00 355.31 cm /I19 Do Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 331.79999999999995 m 349.5 331.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 331.79999999999995 m 353.5 331.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 331.79999999999995 m 402.5 331.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 331.79999999999995 m 406.5 331.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 331.79999999999995 m 455.5 331.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 331.79999999999995 m 459.5 331.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 331.79999999999995 m 508.5 331.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 331.79999999999995 m 512.5 331.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 331.79999999999995 m 561.5 331.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 311.79999999999995 m 296.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 311.79999999999995 m 349.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 311.79999999999995 m 353.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 311.79999999999995 m 402.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 311.79999999999995 m 406.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 311.79999999999995 m 455.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 311.79999999999995 m 459.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 311.79999999999995 m 508.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 311.79999999999995 m 512.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 311.79999999999995 m 561.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 311.79999999999995 m 296.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 299.79999999999995 m 296.5 299.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 311.79999999999995 m 349.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 299.79999999999995 m 349.5 299.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 311.79999999999995 m 402.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 299.79999999999995 m 402.5 299.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 299.79999999999995 m 455.5 299.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 299.79999999999995 m 508.5 299.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 299.79999999999995 m 561.5 299.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 299.79999999999995 m 296.5 299.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 299.79999999999995 m 349.5 299.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 299.79999999999995 m 402.5 299.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 299.79999999999995 m 455.5 299.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 299.79999999999995 m 508.5 299.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 299.79999999999995 m 561.5 299.79999999999995 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 335.53 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 254.00 335.53 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.90 336.03 Td (INDEXED RETURNS) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 316.03 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.50 323.88 Td (Base) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.15 315.88 Td (Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.45 316.03 Td (Years Ending) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 303.88 Td (Company Name / Index) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.45 303.88 Td (10/1/2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.25 303.88 Td (9/29/2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.25 303.88 Td (9/28/2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.25 303.88 Td (9/27/2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.25 303.88 Td (10/3/2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.25 303.88 Td (10/1/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 290.37 Td (Coherent,Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 290.37 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 290.37 Td (106.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 290.37 Td (145.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 290.37 Td (149.54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 290.37 Td (129.91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 290.37 Td (262.63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 276.37 Td (Russell 2000 Index) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 276.37 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 276.37 Td (131.91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 276.37 Td (171.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 276.37 Td (181.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 276.37 Td (182.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 276.37 Td (208.43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 262.37 Td (S&P Technology Index) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 262.37 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 262.37 Td (132.41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 262.37 Td (142.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 262.37 Td (182.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 262.37 Td (189.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 262.37 Td (229.51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 248.37 Td (Nasdaq Composite Index) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 248.37 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 248.37 Td (130.53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 248.37 Td (160.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 248.37 Td (194.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 248.37 Td (204.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 248.37 Td (234.02) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 224.30 Td (The information contained above under the caption "Company Stock Price Performance" shall not be deemed to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 212.30 Td ("soliciting material" or to be "filed" with the SEC, nor will such information be incorporated by reference into any future SEC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 200.30 Td (filing except to the extent that we specifically incorporate it by reference into such filing.) Tj ET Q endstream endobj 83 0 obj <>] /Rotate 0 /Contents 84 0 R>> endobj 84 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (39) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 6.SELECTED FINANCIAL) Tj ET Q q 0 0 0 rg BT 208.64 742.25 Td ( DA) Tj ET Q q 0 0 0 rg BT 224.84 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 230.77 742.25 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 Td (The information set forth below is not necessarily indicative of results of future operations and should be read in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (conjunction with Item7. "Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 278.07 710.25 Td (Analysis of Financial Condition and Results of Operations" and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (Consolidated Financial Statements and Notes to Consolidated Financial Statements included elsewhere in this annual report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 678.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 678.25 Td (e derived the consolidated statement of operations data for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.10 678.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.10 678.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.10 678.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.10 678.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.54 678.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.54 678.25 Td ( and the consolidated balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (sheet data as of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.02 666.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.02 666.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.46 666.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.46 666.25 Td (year) Tj ET Q q 0 0 0 rg BT 216.96 666.25 Td (-end from our audited consolidated financial statements, and accompanying notes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (contained in this annual report. ) Tj ET Q q 0 0 0 rg BT 176.45 654.25 Td (The consolidated statements of operations data for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.71 654.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.71 654.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 654.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 654.25 Td ( and the consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (balance sheet data as of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.05 642.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.05 642.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.05 642.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.05 642.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.49 642.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.49 642.25 Td (year) Tj ET Q q 0 0 0 rg BT 275.00 642.25 Td (-end are derived from our consolidated financial statements which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.25 Td (not included in this annual report.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 579.75 181.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 579.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 579.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.50 579.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 579.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 579.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 579.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 579.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 579.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 579.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 551.75 181.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 551.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 551.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.50 551.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 551.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 551.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 551.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 551.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 551.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 551.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 523.75 181.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 523.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 523.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.50 523.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 523.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 523.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 523.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 523.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 523.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 523.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 495.75 181.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 495.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 495.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.50 495.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 495.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 495.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 495.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 495.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 495.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 495.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 467.75 181.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 467.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 467.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.50 467.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 467.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 467.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 467.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 467.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 467.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 467.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 439.75 181.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 439.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 439.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.50 439.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 439.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 439.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 439.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 439.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 439.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 439.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 411.75 181.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 411.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 411.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.50 411.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 411.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 411.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 411.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 411.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 411.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 411.75 71.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 591.75 m 291.5 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295.5 591.75 m 356.5 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 591.75 m 421.5 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 591.75 m 486.5 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 591.75 m 561.5 591.75 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52 594.730078125 m 145.79296875 594.730078125 l s q 0 0 0 rg BT 52.00 595.98 Td (Consolidated financial data) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 250.50 603.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 246.80 595.83 Td (2016 \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.50 603.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.80 595.83 Td (2015 \(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.50 603.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 595.83 Td (2014 ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.50 603.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.80 595.83 Td (2013 \(3\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.50 603.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.80 595.83 Td (2012 \(4\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 583.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 332.75 583.83 Td (\(in thousands, except per share data\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 570.32 Td (Net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 570.32 Td (857,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 570.32 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 570.32 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 570.32 Td (810,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 570.32 Td (769,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 556.32 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 556.32 Td (381,392) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 556.32 Td (335,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 556.32 Td (313,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 556.32 Td (322,271) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 556.32 Td (315,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 542.32 Td (Net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 542.32 Td (87,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 542.32 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 542.32 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 542.32 Td (66,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 542.32 Td (62,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 528.32 Td (Net income per share\(5\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 528.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 528.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 528.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 514.32 Td (Basic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.15 514.32 Td (3.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.15 514.32 Td (3.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 514.32 Td (2.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 514.32 Td (2.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 514.32 Td (2.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 500.32 Td (Diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.15 500.32 Td (3.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.15 500.32 Td (3.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 500.32 Td (2.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 500.32 Td (2.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 500.32 Td (2.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 486.32 Td (Shares used in computation\(5\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 486.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 486.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 486.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 472.32 Td (Basic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 472.32 Td (24,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 472.32 Td (24,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 472.32 Td (24,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 472.32 Td (24,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 472.32 Td (23,561) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 458.32 Td (Diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 458.32 Td (24,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 458.32 Td (24,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 458.32 Td (25,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 458.32 Td (24,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 458.32 Td (24,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 444.32 Td (Total assets *) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.60 444.32 Td (1,161,148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 444.32 Td (968,947) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 444.32 Td (999,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 444.32 Td (966,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 444.32 Td (880,772) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 430.32 Td (Other long-term liabilities *) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 430.32 Td (48,826) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 430.32 Td (49,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 430.32 Td (62,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 430.32 Td (62,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 430.32 Td (55,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 416.32 Td (Stockholders' equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 416.32 Td (910,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 416.32 Td (796,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 416.32 Td (819,649) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 416.32 Td (758,518) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 416.32 Td (671,656) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 402.32 Td (Other data:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 388.32 Td (Cash dividends declared per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 388.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.65 388.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 388.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.65 388.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 388.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 388.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 388.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 388.32 Td (1.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 388.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 388.32 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 362.65 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 362.65 Td (In November 2015, the F) Tj ET Q q 0 0 0 rg BT 154.07 362.65 Td (ASB issued amended guidance that clarifies that in a classified statement of financial position, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.65 Td (entity shall classify deferred tax liabilities and assets as noncurrent amounts.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 355.75 350.65 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.25 350.65 Td (The new guidance supersedes ) Tj ET Q q 0 0 0 rg BT 479.32 350.65 Td (ASC 740-10-45-5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.65 Td (which required the valuation allowance for a particular tax jurisdiction be allocated between current and noncurrent deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.65 Td (tax assets for that tax jurisdiction on a pro rata basis. ) Tj ET Q q 0 0 0 rg BT 262.54 326.65 Td (W) Tj ET Q q 0 0 0 rg BT 271.18 326.65 Td (e elected to early adopt the standard retrospectively in fiscal 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.65 Td (which resulted in the reclassification of current deferred income tax assets to non-current deferred income tax assets and non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.65 Td (current deferred income tax liabilities on our consolidated balance sheets for fiscal 2016 and 2015. ) Tj ET Q q 0 0 0 rg BT 446.90 302.65 Td (The impact of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.65 Td (reclassifications to deferred tax assets and liabilities for fiscal 2014, 2013 and 2012 was immaterial.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 148.00 281.05 Td (_______________________________________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 260.05 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 260.05 Td (Includes $6.4 million of after tax costs related to the acquisition of Rofin, a $1.4 million after) Tj ET Q q 0 0 0 rg BT 449.76 260.05 Td (-tax loss on our hedge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 248.05 Td (our foreign exchange risk related to the commitment of our term loan to finance the acquisition of Rofin, $0.8 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 236.05 Td (after) Tj ET Q q 0 0 0 rg BT 95.12 236.05 Td (-tax interest expense on the commitment of our term loan to finance the acquisition of Rofin and a benefit of $1.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 224.05 Td (million from the renewal of the R&D tax credit for fiscal 2015.) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 50.00 209.98 27.00 -9.09 re f /GS0 gs q 0 0 0 rg BT 50.00 203.05 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 203.05 Td (Includes a char) Tj ET Q q 0 0 0 rg BT 137.34 203.05 Td (ge of $1.3 million after tax for the impairment of our investment in SiOnyx, a $1.3 million after) Tj ET Q q 0 0 0 rg BT 519.84 203.05 Td (-tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 191.05 Td (char) Tj ET Q q 0 0 0 rg BT 94.03 191.05 Td (ge for an accrual related to an ongoing customs audit, a benefit of $1.1 million from the renewal of the R&D tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 179.05 Td (credit for fiscal 2014 and $1.3 million gain on our purchase of ) Tj ET Q q 0 0 0 rg BT 328.14 179.05 Td (T) Tj ET Q q 0 0 0 rg BT 333.90 179.05 Td (insley in the fourth quarter of fiscal 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.05 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 158.05 Td (Includes a tax benefit of $1.4 million from the renewal of the R&D tax credit for fiscal 2012. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 137.05 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 137.05 Td (Includes a char) Tj ET Q q 0 0 0 rg BT 137.34 137.05 Td (ge of $4.3 million after tax related to the write-of) Tj ET Q q 0 0 0 rg BT 333.76 137.05 Td (f of previously acquired intangible assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 125.05 Td (inventories, a $2.8 million tax benefit due to decreases in valuation allowances against deferred tax assets and a $1.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 113.05 Td (million tax benefit related to the release of tax reserves and related interest as a result of the closure of open tax years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 92.05 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 92.05 Td (See Note2, "Significant ) Tj ET Q q 0 0 0 rg BT 175.79 92.05 Td (Accounting Policies" in our Notes to Consolidated Financial Statements under Item15 of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 80.05 Td (annual report for an explanation of the determination of the number of shares used in computing net income \(loss\) per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 68.05 Td (share.) Tj ET Q endstream endobj 85 0 obj <>] /Rotate 0 /Contents 86 0 R>> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (40) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (ITEM 7.MANAGEMENT'S DISCUSSION ) Tj ET Q q 0 0 0 rg BT 245.64 742.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 269.26 742.25 Td (ANAL) Tj ET Q q 0 0 0 rg BT 296.67 742.25 Td (YSIS OF) Tj ET Q q 0 0 0 rg BT 334.92 742.25 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 393.54 742.25 Td ( CONDITION ) Tj ET Q q 0 0 0 rg BT 456.89 742.25 Td (AND RESUL) Tj ET Q q 0 0 0 rg BT 513.48 742.25 Td (TS OF) Tj ET Q q 0 0 0 rg BT 541.73 742.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (OPERA) Tj ET Q q 0 0 0 rg BT 83.76 730.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 710.25 Td (The following discussion and analysis of our financial condition and results of operations should be read in conjunction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (with our Consolidated Financial Statements and related notes included in Item8, "Financial Statements and Supplementary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (Data" in this annual report. ) Tj ET Q q 0 0 0 rg BT 160.04 686.25 Td (This discussion contains forward-looking statements, which involve risks and uncertainties. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (actual results could dif) Tj ET Q q 0 0 0 rg BT 140.13 674.25 Td (fer materially from those anticipated in the forward-looking statements as a result of certain factors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (including but not limited to those discussed in Item 1A,"Risk Factors" and elsewhere in this annual report. Please see the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (discussion of forward-looking statements at the beginning of this annual report under "Special Note Regarding Forward-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (Looking Statements.") Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (KEY) Tj ET Q q 0 0 0 rg BT 70.80 618.25 Td ( PERFORMANCE INDICA) Tj ET Q q 0 0 0 rg BT 190.61 618.25 Td (T) Tj ET Q q 0 0 0 rg BT 197.10 618.25 Td (ORS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 598.25 Td (Below is a summary of some of the quantitative performance indicators \(as defined below\) that are evaluated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (management to assess our financial performance. Some of the indicators are non-GAAP) Tj ET Q q 0 0 0 rg BT 401.79 586.25 Td ( measures and should not be considered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (as an alternative to any other measure for determining operating performance that is calculated in accordance with generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (accepted accounting principles.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 511.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 511.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 511.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 511.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 511.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 511.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 481.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 481.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 481.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 481.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 481.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 481.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 451.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 451.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 451.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 451.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 451.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 451.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 408.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 408.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 408.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 408.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 408.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 408.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 378.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 378.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 378.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 378.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 378.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 378.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 348.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 348.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 348.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 348.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 348.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 348.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 318.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 318.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 318.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 318.75 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 537.75 m 422 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 537.75 m 426 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 537.75 m 486 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 537.75 m 490 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 537.75 m 550 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 537.75 m 422 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 524.75 m 422 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 524.75 m 486 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 524.75 m 550 524.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.50 542.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.50 541.98 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 528.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.50 528.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.50 528.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.50 528.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 515.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.70 515.98 Td (\(Dollars in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 501.42 Td (Bookings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 501.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.10 501.42 Td (1,412,096) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.50 501.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 501.42 Td (765,174) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 501.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.65 501.42 Td (890,531) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 486.42 Td (Book-to-bill ratio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 486.42 Td (1.65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 486.42 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 486.42 Td (1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 471.42 Td (Net SalesSpecialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 471.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 471.42 Td (631,313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.50 471.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 471.42 Td (559,593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 471.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.65 471.42 Td (565,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 456.42 Td (Net SalesCommercial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 456.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 456.42 Td (226,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.50 456.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 456.42 Td (242,867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 456.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.65 456.42 Td (229,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 441.42 Td (Gross Profit as a Percentage of Net SalesSpecialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 441.42 Td (48.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 441.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 441.42 Td (45.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 441.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 441.42 Td (42.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 441.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 423.42 Td (Gross Profit as a Percentage of Net SalesCommercial Lasers and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 413.42 Td (Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 413.42 Td (35.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 413.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 413.42 Td (34.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 413.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 413.42 Td (33.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 413.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 398.42 Td (Research and Development Expenses as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 398.42 Td (9.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 398.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 398.42 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 398.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 398.42 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 398.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 383.42 Td (Income Before Income Taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 383.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 383.42 Td (122,896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.50 383.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 383.42 Td (99,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 383.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 383.42 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 368.42 Td (Net Cash Provided by Operating Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 368.42 Td (105,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.50 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 368.42 Td (124,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 368.42 Td (91,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 353.42 Td (Days Sales Outstanding in Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 353.42 Td (69.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 353.42 Td (63.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 353.42 Td (62.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 338.42 Td (Annualized Fourth Quarter Inventory Turns) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 338.42 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 338.42 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 338.42 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 323.42 Td (Capital Spending as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 323.42 Td (5.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 323.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 323.42 Td (2.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 323.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 323.42 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 323.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 308.42 Td (Net Income as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 308.42 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 308.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 308.42 Td (9.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 308.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 308.42 Td (7.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 308.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 293.42 Td (Adjusted EBITDA as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 293.42 Td (22.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 293.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 293.42 Td (19.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 293.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 293.42 Td (17.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 293.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 269.25 Td (Definitions and analysis of these performance indicators are as follows:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 249.25 Td (Bookings and Book-to-Bill Ratio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 229.25 Td (Bookings represent orders received during the current period for products and services. ) Tj ET Q q 0 0 0 rg BT 424.59 229.25 Td (While we generally have not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.25 Td (experienced a significant rate of cancellation, bookings are generally cancelable, depending on the notice period, by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.25 Td (customers without substantial penalty and, therefore, we cannot assure all bookings will be converted to net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 185.25 Td (The book-to-bill ratio is calculated as annual bookings divided by annual net sales. ) Tj ET Q q 0 0 0 rg BT 407.12 185.25 Td (This is an indication of the strength of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.25 Td (our business but can sometimes be impacted by a single lar) Tj ET Q q 0 0 0 rg BT 285.93 173.25 Td (ge order or a single lar) Tj ET Q q 0 0 0 rg BT 375.99 173.25 Td (ge shipment. ) Tj ET Q q 0 0 0 rg BT 429.04 173.25 Td (A) Tj ET Q q 0 0 0 rg BT 435.71 173.25 Td ( ratio greater than 1.0 indicates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.25 Td (that demand for our products is greater than what we supply in the year whereas a ratio of less than 1.0 indicates that demand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (for our products is less than what we supply in the year) Tj ET Q q 0 0 0 rg BT 269.73 149.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 129.25 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.89 129.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.89 129.25 Td ( bookings increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.81 129.25 Td (85%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.14 129.25 Td ( from bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.18 129.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.18 129.25 Td ( and our book-to-bill ratio increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.74 129.25 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.24 129.25 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 117.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.28 117.25 Td (1.65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.78 117.25 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.71 117.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.71 117.25 Td (. ) Tj ET Q q 0 0 0 rg BT 161.53 117.25 Td (The bookings increase included increases in the microelectronics \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.54 117.25 Td (170%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.87 117.25 Td (\), materials processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.25 Td (\() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.83 105.25 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.16 105.25 Td (\) and OEM components and instrumentation \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.01 105.25 Td (9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.34 105.25 Td (\) markets partially of) Tj ET Q q 0 0 0 rg BT 352.30 105.25 Td (fset by decreases in the scientific \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.02 105.25 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.35 105.25 Td (\) market. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.25 Td (Although fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.93 93.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.93 93.25 Td ( bookings increased, bookings in the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.26 93.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.26 93.25 Td ( decreased 36% from the third quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.25 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 81.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 81.25 Td (, with decreases in the microelectronics, materials processing and OEM components and instrumentation markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 69.25 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.47 69.25 Td (fset by increases in the scientific market.) Tj ET Q endstream endobj 87 0 obj <>] /Rotate 0 /Contents 88 0 R>> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 742.10 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.89 742.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.89 742.10 Td ( bookings decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.47 742.10 Td (14%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.80 742.10 Td ( from bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.84 742.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.84 742.10 Td ( and our book-to-bill ratio decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.06 742.10 Td (1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.56 742.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 730.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.28 730.10 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.78 730.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.71 730.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.71 730.10 Td (. ) Tj ET Q q 0 0 0 rg BT 161.53 730.10 Td (The bookings decrease included decreases in the microelectronics \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.86 730.10 Td (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.19 730.10 Td (\), OEM components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (instrumentation \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.10 718.10 Td (14%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.43 718.10 Td (\), materials processing \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.51 718.10 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.84 718.10 Td (\) and scientific \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.09 718.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.42 718.10 Td (\) markets. ) Tj ET Q q 0 0 0 rg BT 366.35 718.10 Td (Although fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.78 718.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.78 718.10 Td ( bookings decreased, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (bookings in the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.40 706.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.40 706.10 Td ( increased 16% from the third quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.83 706.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.83 706.10 Td (, with increases in all four ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 674.10 Td (Backlog represents orders which we expect to be shipped within 12 months and the current portion of service contracts. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (For a discussion of backlog, see "RESUL) Tj ET Q q 0 0 0 rg BT 214.59 662.10 Td (TS OF OPERA) Tj ET Q q 0 0 0 rg BT 275.72 662.10 Td (TIONS - BACKLOG".) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 49.5 640.7669921875 m 117.2490234375 640.7669921875 l s q 0 0 0 rg BT 49.50 642.10 Td (Microelectronics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 622.10 Td (Although fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.93 622.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.93 622.10 Td ( bookings increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.86 622.10 Td (170%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.19 622.10 Td ( from bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.23 622.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.23 622.10 Td ( and the book-to-bill ratio for the year was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (2.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 610.10 Td (, bookings in the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.90 610.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.90 610.10 Td ( decreased 48% from the third quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.99 610.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.99 610.10 Td ( primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (decreased systems orders net of higher service orders for the flat panel display market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 578.10 Td (Flat panel display orders for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.90 578.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.90 578.10 Td ( increased 310% from orders in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.35 578.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.35 578.10 Td ( primarily due to the timing and mix of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (order placement by customers with orders received from multiple customers for lar) Tj ET Q q 0 0 0 rg BT 381.71 566.10 Td (ge format Linebeam systems to be used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (flexible or) Tj ET Q q 0 0 0 rg BT 90.69 554.10 Td (ganic light-emitting diode \(OLED\) production. Fourth quarter fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.34 554.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.34 554.10 Td ( orders were 56% lower than those in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (third quarter of fiscal 2016 primarily due to lower orders for Linebeam 1500 and 1000 systems, net of higher service bookings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 530.10 Td (e expect continued fluctuations in order volumes on a quarterly basis. ) Tj ET Q q 0 0 0 rg BT 338.06 530.10 Td (After building significant flat panel display backlog ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (during the first three quarters of fiscal 2016, in the fourth quarter system orders temporarily returned to a more modest level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (while flat panel display service orders and revenue were very strong. Some customers are adding capacity to take a lar) Tj ET Q q 0 0 0 rg BT 522.47 506.10 Td (ger share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (of the first wave of OLED adoption while others believe OLED will replace LCDs everywhere from handsets to mobile ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (computing to ) Tj ET Q q 0 0 0 rg BT 104.87 482.10 Td (TVs and signage. ) Tj ET Q q 0 0 0 rg BT 176.90 482.10 Td (These customers are securing capacity to capitalize on these potential trends and, as a result, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (have already booked $100 million of new orders in the first quarter of fiscal 2017, which together with our existing backlog ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (fills out most of our existing fiscal 2018 capacity) Tj ET Q q 0 0 0 rg BT 244.92 458.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 438.10 Td (Advanced packaging \("API"\) orders decreased 29% for the full fiscal year and fourth quarter fiscal 2016 orders decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.10 Td (12% from orders in the third quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.94 426.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.94 426.10 Td (. ) Tj ET Q q 0 0 0 rg BT 256.76 426.10 Td (The ) Tj ET Q q 0 0 0 rg BT 274.26 426.10 Td (API market continues to demonstrate variability based on project ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.10 Td (specific activity) Tj ET Q q 0 0 0 rg BT 112.43 414.10 Td (. ) Tj ET Q q 0 0 0 rg BT 117.25 414.10 Td (There is an increased use of SiPs, or system in package, in the newest smartphones, which increases the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.10 Td (number of interconnects and functionality in a smaller footprint. ) Tj ET Q q 0 0 0 rg BT 308.69 402.10 Td (This will maintain pressure on the via drilling market in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.10 Td (next few quarters, but we believe the impact will be temporary since new applications like virtual reality need lar) Tj ET Q q 0 0 0 rg BT 501.65 390.10 Td (ge amounts of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (processing power) Tj ET Q q 0 0 0 rg BT 119.21 378.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 358.10 Td (Orders from semiconductor capital equipment OEMs increased 5% for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.40 358.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.40 358.10 Td ( and were 26% higher in the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.30 346.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.30 346.10 Td ( compared to the third quarter of fiscal 2016 due to increases in wafer inspection \(investments for mobile ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (logic chips\) and ink jet nozzle printing applications. Service orders and shipments remain strong due to high utilization rates in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (most fabs. In addition, we saw favorable inventory corrections at certain customers that resulted in increased sales that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (believe are sustainable. ) Tj ET Q q 0 0 0 rg BT 144.83 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 153.47 310.10 Td (e do not anticipate any significant reduction in orders from the recent collapse of two proposed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (mer) Tj ET Q q 0 0 0 rg BT 64.87 298.10 Td (gers in the semiconductor capital equipment market since they were lar) Tj ET Q q 0 0 0 rg BT 349.58 298.10 Td (gely complementary with respect to our ongoing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (business. ) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 49.5 264.7669921875 m 207.537109375 264.7669921875 l s q 0 0 0 rg BT 49.50 266.10 Td (OEM Components and Instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 246.10 Td (Bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.77 246.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.77 246.10 Td ( increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.53 246.10 Td (9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.86 246.10 Td ( from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.45 246.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.45 246.10 Td ( and the book-to-bill ratio for the year was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.34 246.10 Td (1.08) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.84 246.10 Td (. However) Tj ET Q q 0 0 0 rg BT 524.09 246.10 Td (, orders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (in the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.23 234.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.23 234.10 Td ( decreased 3% from orders in the third quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.09 234.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.09 234.10 Td ( due to lower orders for medical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (applications. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 202.10 Td (Instrumentation orders decreased 1% for the full fiscal year and fourth quarter fiscal 2016 orders increased 12% compared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (to the third quarter of fiscal 2016 due to timing of orders. Demand is strong for all submarkets in bioinstrumentation. In flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (cytometry) Tj ET Q q 0 0 0 rg BT 89.39 178.10 Td (, market adoption of the test protocols and the proliferation of desktop instruments from existing and new market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (entrants are fueling growth. Bookings for confocal microscopy were solid. Our ef) Tj ET Q q 0 0 0 rg BT 375.61 166.10 Td (forts in high-speed gene sequencing are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (resulting in increasing orders as we secure more design wins.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 134.10 Td (Orders for medical OEM products increased 13% for the full fiscal year 2016, but fourth quarter fiscal 2016 orders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (decreased 32% compared to the third quarter of fiscal 2016. In spite of the decrease in orders, the medical OEM market remains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (strong. ) Tj ET Q q 0 0 0 rg BT 79.32 110.10 Td (The medical OEM market is being af) Tj ET Q q 0 0 0 rg BT 227.98 110.10 Td (fected by M&A) Tj ET Q q 0 0 0 rg BT 290.74 110.10 Td ( activity and reor) Tj ET Q q 0 0 0 rg BT 358.59 110.10 Td (ganizations within existing customers, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (causing changes in demand, inventory practices and R&D spending. From our historical experience, we believe these are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (mostly temporary factors. By contrast, the consumables business is robust, suggesting the number of procedures being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (performed is stable to increasing.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 49.5 52.76699218750002 m 133.09375 52.76699218750002 l s q 0 0 0 rg BT 49.50 54.10 Td (Materials Processing) Tj ET Q endstream endobj 89 0 obj <>] /Rotate 0 /Contents 90 0 R>> endobj 90 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 742.10 Td (Annual bookings increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.86 742.10 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.19 742.10 Td ( from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.79 742.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.79 742.10 Td ( and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.38 742.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.38 742.10 Td ('s book-to-bill ratio was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.72 742.10 Td (1.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.22 742.10 Td (. However) Tj ET Q q 0 0 0 rg BT 491.47 742.10 Td (, bookings in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.24 730.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.24 730.10 Td ( decreased 26% from the prior quarter due to lower orders for metal cutting and engraving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (applications. Bookings volumes in our materials processing business can vary significantly from quarter to quarter) Tj ET Q q 0 0 0 rg BT 506.90 718.10 Td (. In spite of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (the decrease in the fourth quarter of fiscal 2016, it was a record year for orders and sales in our materials processing business. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 694.10 Td ( number of applications contributed to our success including thin metal cutting in consumer electronics packaging and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (additive manufacturing as well as short pulse processing for the automotive, medical device and machine tool industries.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 49.5 660.7669921875 m 198.07421875 660.7669921875 l s q 0 0 0 rg BT 49.50 662.10 Td (Scientific and Government Programs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 642.10 Td (Although fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.93 642.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.93 642.10 Td ( orders decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.84 642.10 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.17 642.10 Td ( from bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.21 642.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.21 642.10 Td (, the book-to-bill ratio for the year was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.66 642.10 Td (1.03) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.16 642.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (Orders in the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.95 630.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.95 630.10 Td ( increased 37% from the third quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.37 630.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.37 630.10 Td ( as the U.S., ) Tj ET Q q 0 0 0 rg BT 474.65 630.10 Td (Asian and European ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (markets delivered a typically strong fourth quarter performance. Our ) Tj ET Q q 0 0 0 rg BT 326.06 618.10 Td (Astrella ultrafast amplifier is the leading solution in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (research marketplace based upon performance and unit volumes; bookings were particularly strong in China, where funding for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (applied physics and physical chemistry is similar to that in the U.S. ) Tj ET Q q 0 0 0 rg BT 320.95 594.10 Td (The Chameleon Discovery, our most advanced light ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (source for multiphoton imaging, had record unit and dollar bookings in the fourth quarter of fiscal 2016. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 542.10 Td (Net sales include sales of lasers, laser tools, related accessories and service. Net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.30 542.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 542.10 Td ( increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.05 542.10 Td (7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.38 542.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 530.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 530.10 Td (. Net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.85 530.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.85 530.10 Td ( increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.60 530.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.93 530.10 Td ( from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.53 530.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.53 530.10 Td (. For a description of the reasons for changes in net sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (refer to the "Results of Operations" section below) Tj ET Q q 0 0 0 rg BT 247.80 518.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (Gr) Tj ET Q q 0 0 0 rg BT 61.54 498.10 Td (oss Pr) Tj ET Q q 0 0 0 rg BT 87.19 498.10 Td (ofit as a Per) Tj ET Q q 0 0 0 rg BT 137.82 498.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 478.10 Td (Gross profit as a percentage of net sales \("gross profit percentage"\) is calculated as gross profit for the period divided by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (net sales for the period. Gross profit percentage for SLS increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.36 466.10 Td (48.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.19 466.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.12 466.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.12 466.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.56 466.10 Td (45.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.39 466.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.32 466.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.32 466.10 Td ( and from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (42.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.33 454.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.26 454.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.26 454.10 Td (. Gross profit percentage for CLC increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.26 454.10 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.09 454.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.02 454.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.02 454.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.46 454.10 Td (34.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.29 454.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.22 454.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.22 454.10 Td ( and from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (33.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.33 442.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.26 442.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.26 442.10 Td (. For a description of the reasons for changes in gross profit refer to the "Results of Operations" section ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (below) Tj ET Q q 0 0 0 rg BT 73.29 430.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 78.75 410.10 Td (ch and Development as a Per) Tj ET Q q 0 0 0 rg BT 202.17 410.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 390.10 Td (Research and development as a percentage of net sales \("R&D percentage"\) is calculated as research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (expense for the period divided by net sales for the period. Management considers R&D percentage to be an important indicator ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (in managing our business as investing in new technologies is a key to future growth. R&D percentage decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.60 366.10 Td (9.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.43 366.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (fiscal 2016 from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.09 354.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.92 354.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.86 354.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.86 354.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.30 354.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.13 354.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.06 354.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.06 354.10 Td (. For a description of the reasons for changes in R&D spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (refer to the "Results of Operations" section below) Tj ET Q q 0 0 0 rg BT 247.80 342.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (Net Cash Pr) Tj ET Q q 0 0 0 rg BT 101.53 322.10 Td (ovided by Operating ) Tj ET Q q 0 0 0 rg BT 191.27 322.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 302.10 Td (Net cash provided by operating activities shown on our Consolidated Statements of Cash Flows primarily represents the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (excess of cash collected from billings to our customers and other receipts over cash paid to our vendors for expenses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (inventory purchases to run our business. ) Tj ET Q q 0 0 0 rg BT 212.90 278.10 Td (W) Tj ET Q q 0 0 0 rg BT 221.54 278.10 Td (e believe that cash flows from operations are an important performance indicator ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (because cash generation over the long term is essential to maintaining a healthy business and providing funds to help fuel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (growth. For a description of the reasons for changes in Net Cash Provided by Operating ) Tj ET Q q 0 0 0 rg BT 402.76 254.10 Td (Activities refer to the "Liquidity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (Capital Resources" section below) Tj ET Q q 0 0 0 rg BT 183.18 242.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (Days Sales Outstanding in Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 202.10 Td (e calculate days sales outstanding \("DSO"\) in receivables as net receivables at the end of the period divided by net sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (during the period and then multiplied by the number of days in the period, using 360days for years. DSO in receivables ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (indicates how well we are managing our collection of receivables, with lower DSO in receivables resulting in higher working ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (capital availability) Tj ET Q q 0 0 0 rg BT 122.99 166.10 Td (. ) Tj ET Q q 0 0 0 rg BT 127.81 166.10 Td (The more money we have tied up in receivables, the less money we have available for research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (development, acquisitions, expansion, marketing and other activities to grow our business. Our DSO in receivables for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 142.10 Td ( increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.53 142.10 Td (69.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.03 142.10 Td (days from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.30 142.10 Td (63.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.80 142.10 Td ( days in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.56 142.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.56 142.10 Td (. ) Tj ET Q q 0 0 0 rg BT 285.38 142.10 Td (The increase in DSO in receivables is primarily due to a higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (concentration of receivables in ) Tj ET Q q 0 0 0 rg BT 174.45 130.10 Td (Asia and Japan where DSOs are typically higher and the unfavorable impact of foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (exchange rates partially of) Tj ET Q q 0 0 0 rg BT 155.10 118.10 Td (fset by a lower concentration of sales in the last month of the fiscal year in all regions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (Annualized Fourth Quarter) Tj ET Q q 0 0 0 rg BT 168.21 98.10 Td ( Inventory ) Tj ET Q q 0 0 0 rg BT 215.25 98.10 Td (T) Tj ET Q q 0 0 0 rg BT 221.00 98.10 Td (urns) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 78.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 78.10 Td (e calculate annualized fourth quarter inventory turns as cost of sales during the fourth quarter annualized and divided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 66.10 Td (by net inventories at the end of the fourth quarter) Tj ET Q q 0 0 0 rg BT 245.27 66.10 Td (. ) Tj ET Q q 0 0 0 rg BT 250.09 66.10 Td (This indicates how well we are managing our inventory levels, with higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 54.10 Td (inventory turns resulting in more working capital availability and a higher return on our investments in inventory) Tj ET Q q 0 0 0 rg BT 500.97 54.10 Td (. ) Tj ET Q q 0 0 0 rg BT 505.79 54.10 Td (The more ) Tj ET Q endstream endobj 91 0 obj <>] /Rotate 0 /Contents 92 0 R>> endobj 92 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (money we have tied up in inventory) Tj ET Q q 0 0 0 rg BT 192.70 742.10 Td (, the less money we have available for research and development, acquisitions, expansion, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (marketing and other activities to grow our business. Our annualized fourth quarter inventory turns for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.43 730.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.43 730.10 Td ( decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 718.10 Td (turns from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 718.10 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.44 718.10 Td ( turns in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.87 718.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.87 718.10 Td ( primarily due to the planned build-up of inventory levels in certain business units, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (primarily in microelectronics, to support increased demand for our lar) Tj ET Q q 0 0 0 rg BT 328.67 706.10 Td (ge format Linebeam systems.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Capital Spending as a Per) Tj ET Q q 0 0 0 rg BT 159.89 686.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 666.10 Td (Capital spending as a percentage of net sales \("capital spending percentage"\) is calculated as capital expenditures for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (period divided by net sales for the period. Capital spending percentage indicates the extent to which we are expanding or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (improving our operations, including investments in technology and equipment. Management monitors capital spending levels ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (as this assists us in measuring our cash flows, net of capital expenditures. Our capital spending percentage increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.42 630.10 Td (5.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.25 630.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 618.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 618.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.09 618.10 Td (2.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.92 618.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.86 618.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.86 618.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.30 618.10 Td (2.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.13 618.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.06 618.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.06 618.10 Td (. ) Tj ET Q q 0 0 0 rg BT 297.88 618.10 Td (The fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.08 618.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.08 618.10 Td ( increase was primarily due to increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (investments to expand our manufacturing capacity in Gttingen, Germany) Tj ET Q q 0 0 0 rg BT 345.71 606.10 Td (, upgrade certain of our production facilities in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (California and New Jersey and higher purchases of production-related assets, partially of) Tj ET Q q 0 0 0 rg BT 404.75 594.10 Td (fset by the impact of higher revenues ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (in fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 108.75 582.10 Td (The fiscal 2015 decrease was primarily due to lower purchases of production-related assets. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 128.69 562.10 Td ( as a Per) Tj ET Q q 0 0 0 rg BT 164.89 562.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 542.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 542.10 Td (e define adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 187.00 542.10 Td ( as operating income adjusted for depreciation, amortization, stock-based compensation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (major restructuring costs and certain other non-operating income and expense items, such as costs related to the acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (Rofin. Key initiatives to reach our goals for EBITDA) Tj ET Q q 0 0 0 rg BT 262.51 518.10 Td ( improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 425.81 518.10 Td (Asian manufacturing locations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (rationalizing our supply chain and continued leveraging of our infrastructure.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 484.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 484.10 Td (e utilize a number of dif) Tj ET Q q 0 0 0 rg BT 176.81 484.10 Td (ferent financial measures, both GAAP) Tj ET Q q 0 0 0 rg BT 329.45 484.10 Td ( and non-GAAP) Tj ET Q q 0 0 0 rg BT 393.33 484.10 Td (, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 501.93 484.10 Td ( as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.10 Td (percentage of net sales, in analyzing and assessing our overall business performance, for making operating decisions and for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.10 Td (forecasting and planning future periods. ) Tj ET Q q 0 0 0 rg BT 211.49 460.10 Td (W) Tj ET Q q 0 0 0 rg BT 220.13 460.10 Td (e consider the use of non-GAAP) Tj ET Q q 0 0 0 rg BT 350.01 460.10 Td ( financial measures helpful in assessing our current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.10 Td (financial performance and ongoing operations. ) Tj ET Q q 0 0 0 rg BT 238.69 448.10 Td (While we use non-GAAP) Tj ET Q q 0 0 0 rg BT 340.80 448.10 Td ( financial measures as a tool to enhance our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (understanding of certain aspects of our financial performance, we do not consider these measures to be a substitute for) Tj ET Q q 0 0 0 rg BT 522.55 436.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.10 Td (superior to, the information provided by GAAP) Tj ET Q q 0 0 0 rg BT 239.38 424.10 Td ( financial measures. ) Tj ET Q q 0 0 0 rg BT 321.38 424.10 Td (W) Tj ET Q q 0 0 0 rg BT 330.02 424.10 Td (e provide adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 441.94 424.10 Td ( in order to enhance investors' ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.10 Td (understanding of our ongoing operations. ) Tj ET Q q 0 0 0 rg BT 217.07 412.10 Td (This measure is used by some investors when assessing our performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 390.10 Td (Below is the reconciliation of our net income as a percentage of net sales to our adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 464.38 390.10 Td ( as a percentage of net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (sales:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 332.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 332.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 332.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 332.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 332.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 332.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 302.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 302.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 302.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 302.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 302.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 302.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 272.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 272.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 272.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 272.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 272.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 272.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 242.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 242.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 242.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 242.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 242.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 242.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 212.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 212.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 212.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 212.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 212.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 212.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 182.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 182.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 182.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 182.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 182.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 182.60 57.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 345.6 m 438 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 345.6 m 442 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 345.6 m 500 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 345.6 m 504 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 345.6 m 561 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 345.6 m 438 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 332.6 m 438 332.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 345.6 m 500 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 332.6 m 500 332.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 345.6 m 561 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 332.6 m 561 332.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 182.60000000000002 m 438 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 168.60000000000002 m 438 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 166.60000000000002 m 438 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 182.60000000000002 m 500 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 168.60000000000002 m 500 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 166.60000000000002 m 500 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 182.60000000000002 m 561 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 168.60000000000002 m 561 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 166.60000000000002 m 561 166.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.00 350.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.50 349.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 74.50 336.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.00 336.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.50 336.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.00 336.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 322.27 Td (Net income as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 322.27 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 322.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 322.27 Td (9.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 322.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 322.27 Td (7.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 322.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 307.27 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 307.27 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 307.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 307.27 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 307.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 307.27 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 307.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 292.27 Td (Interest and other income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 292.27 Td (0.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 292.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 292.27 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 292.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 292.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 292.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 277.27 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 277.27 Td (4.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 277.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 277.27 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 277.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 277.27 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 277.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 262.27 Td (Purchase accounting step up) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 262.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 262.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 262.27 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 262.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 262.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 262.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 247.27 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 247.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 247.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.95 247.27 Td (\(0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.80 247.27 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 247.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 247.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 232.27 Td (Customs audit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 232.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 232.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 232.27 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 232.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 232.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 232.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 217.27 Td (Costs related to acquisition of Rofin) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 217.27 Td (1.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 217.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.80 217.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 217.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 217.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 217.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 202.27 Td (Impairment of investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 202.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 202.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 202.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 202.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 202.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 202.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 187.27 Td (Stock-based compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 187.27 Td (2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 187.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 187.27 Td (2.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 187.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 187.27 Td (2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 187.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 172.27 Td (Adjusted EBITDA as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 172.27 Td (22.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 172.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.25 172.27 Td (19.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 172.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 172.27 Td (17.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 172.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 148.10 Td (SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 116.00 148.10 Td ( EVENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (Acquisitions and r) Tj ET Q q 0 0 0 rg BT 127.67 128.10 Td (elated financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 108.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 108.10 Td (November7, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.93 108.10 Td (, we completed our previously announced acquisition of Rofin pursuant to the Mer) Tj ET Q q 0 0 0 rg BT 491.50 108.10 Td (ger ) Tj ET Q q 0 0 0 rg BT 506.22 108.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.10 Td (dated March 16, 2016. Rofin is one of the world's leading developers and manufacturers of high-performance industrial laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.10 Td (sources and laser) Tj ET Q q 0 0 0 rg BT 117.61 84.10 Td (-based solutions and components. ) Tj ET Q q 0 0 0 rg BT 254.53 84.10 Td (As a condition of the acquisition, we are required to divest ourselves of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.10 Td (Rofin) Tj ET Q q 0 0 0 rg BT 75.06 72.10 Td (s low power CO2 laser business based in Hull, United Kingdom, and will report this business separately as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 60.10 Td (discontinued operation until it is divested. ) Tj ET Q q 0 0 0 rg BT 219.57 60.10 Td (The acquisition was an all-cash transaction at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.93 60.10 Td ($32.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.43 60.10 Td ( per share of Rofin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 48.10 Td (common stock. ) Tj ET Q q 0 0 0 rg BT 112.92 48.10 Td (The aggregate consideration paid by us to the former Rofin stockholders was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 48.10 Td ($904.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.54 48.10 Td (, ) Tj ET Q endstream endobj 93 0 obj <>] /Rotate 0 /Contents 94 0 R>> endobj 94 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (excluding related transaction fees and expenses. ) Tj ET Q q 0 0 0 rg BT 243.96 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 252.60 742.10 Td (e also paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.86 742.10 Td ($15.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.76 742.10 Td ( due to the cancellation of options held by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (employees of Rofin. ) Tj ET Q q 0 0 0 rg BT 133.19 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 141.83 730.10 Td (e funded the payment of the aggregate consideration with a combination of our available cash on hand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (and the proceeds from the Euro ) Tj ET Q q 0 0 0 rg BT 177.61 718.10 Td (T) Tj ET Q q 0 0 0 rg BT 183.02 718.10 Td (erm Loan described below) Tj ET Q q 0 0 0 rg BT 288.71 718.10 Td (. See Note16, "Subsequent Events" in our Notes to Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (Financial Statements under Item15 of this annual report for further discussion of the acquisition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 686.10 Td (On November7, 2016, we entered into a Credit ) Tj ET Q q 0 0 0 rg BT 263.95 686.10 Td (Agreement \(the Credit ) Tj ET Q q 0 0 0 rg BT 360.30 686.10 Td (Agreement\) with Barclays Bank PLC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (\("Barclays"\), Bank of ) Tj ET Q q 0 0 0 rg BT 138.20 674.10 Td (America, N.A. \("BAML"\) and ) Tj ET Q q 0 0 0 rg BT 262.54 674.10 Td (The Bank of ) Tj ET Q q 0 0 0 rg BT 314.84 674.10 Td (T) Tj ET Q q 0 0 0 rg BT 320.25 674.10 Td (okyo-Mitsubishi UFJ, Ltd. \("MUFG"\). ) Tj ET Q q 0 0 0 rg BT 477.97 674.10 Td (The Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (Agreement provided for a 670.0 million Euro senior secured term loan facility \(the Euro ) Tj ET Q q 0 0 0 rg BT 409.48 662.10 Td (T) Tj ET Q q 0 0 0 rg BT 414.89 662.10 Td (erm Loan\) and a $100.0 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (senior secured revolving credit facility) Tj ET Q q 0 0 0 rg BT 203.24 650.10 Td (. On November7, 2016, the Euro ) Tj ET Q q 0 0 0 rg BT 339.14 650.10 Td (T) Tj ET Q q 0 0 0 rg BT 344.55 650.10 Td (erm Loan was drawn in full and its proceeds were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (used to finance the acquisition of Rofin and pay related fees and expenses. ) Tj ET Q q 0 0 0 rg BT 349.40 638.10 Td (Also, on November7, 2016, we used 10.0 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (Euro of the capacity under the revolving credit facility for the issuance of a letter of credit. See Note16, "Subsequent Events" ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (in our Notes to Consolidated Financial Statements under Item15 of this annual report for further discussion of the Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (Agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 582.10 Td (In relation to the acquisition of Rofin, we paid Barclays, our financial advisor) Tj ET Q q 0 0 0 rg BT 382.07 582.10 Td (, a fee of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.80 582.10 Td ($9.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.69 582.10 Td (, $1.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (million of which was paid upon delivery of the fairness opinion in the second quarter of fiscal 2016, and was recorded in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (selling, general and administrative line of the consolidated statements of operations, and the remaining portion of which was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (paid upon consummation of the acquisition in the first quarter of fiscal 2017. ) Tj ET Q q 0 0 0 rg BT 359.25 546.10 Td (W) Tj ET Q q 0 0 0 rg BT 367.89 546.10 Td (e also paid Barclays, BAML) Tj ET Q q 0 0 0 rg BT 481.66 546.10 Td ( and MUFG ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (together approximately $17.0 million and $5.6 million for underwriting and upfront fees, respectively) Tj ET Q q 0 0 0 rg BT 455.70 534.10 Td (, upon the close of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (financing on November 7, 2016. See Note16, "Subsequent Events" in our Notes to Consolidated Financial Statements under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (Item15 of this annual report for further discussion of the completion of the acquisition and issuance of the financing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 490.10 Td (On July 24, 2015, we acquired certain assets of Raydiance, Inc. \("Raydiance"\) for approximately $5.0 million, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (transaction costs. Raydiance manufactured complete tools and lasers for ultrafast processing systems and subsystems in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (precision micromachining processing market. ) Tj ET Q q 0 0 0 rg BT 234.54 466.10 Td (The Raydiance assets have been included in our Specialty Lasers and Systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 434.10 Td (On July 27, 2015, we acquired the assets and certain liabilities of the ) Tj ET Q q 0 0 0 rg BT 349.25 434.10 Td (T) Tj ET Q q 0 0 0 rg BT 355.00 434.10 Td (insley Optics \("T) Tj ET Q q 0 0 0 rg BT 423.17 434.10 Td (insley"\) business from L-3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (Communications Corporation for approximately $4.3 million, excluding transaction costs. ) Tj ET Q q 0 0 0 rg BT 412.59 422.10 Td (T) Tj ET Q q 0 0 0 rg BT 418.35 422.10 Td (insley is a specialized manufacturer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (of high precision optical components and subsystems sold primarily in the aerospace and defense industry) Tj ET Q q 0 0 0 rg BT 473.20 410.10 Td (. ) Tj ET Q q 0 0 0 rg BT 478.02 410.10 Td (T) Tj ET Q q 0 0 0 rg BT 483.77 410.10 Td (insley ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (manufactures the lar) Tj ET Q q 0 0 0 rg BT 130.95 398.10 Td (ge form factor optics for our excimer laser annealing systems. ) Tj ET Q q 0 0 0 rg BT 380.96 398.10 Td (The ) Tj ET Q q 0 0 0 rg BT 398.82 398.10 Td (T) Tj ET Q q 0 0 0 rg BT 404.58 398.10 Td (insley assets have been included in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Specialty Lasers and Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 366.10 Td (On June 8, 2010, we invested $2.0 million in SiOnyx, Inc., a privately-held company) Tj ET Q q 0 0 0 rg BT 411.57 366.10 Td (. ) Tj ET Q q 0 0 0 rg BT 418.89 366.10 Td (The investment was included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (other assets and was being carried on a cost basis. During the third quarter of fiscal 2015 we determined that our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (became other) Tj ET Q q 0 0 0 rg BT 102.88 342.10 Td (-than temporarily impaired. ) Tj ET Q q 0 0 0 rg BT 215.07 342.10 Td (As a result, we recorded a non-cash char) Tj ET Q q 0 0 0 rg BT 377.03 342.10 Td (ge of $2.0 million to operating expense in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (results of operations in the third quarter of fiscal 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (Stock Repur) Tj ET Q q 0 0 0 rg BT 102.93 310.10 Td (chases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 290.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.17 290.10 Td (August25, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.56 290.10 Td (, our Board of Directors authorized a stock repurchase program to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.16 290.10 Td ($25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.66 290.10 Td ( million of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (our outstanding common stock from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.42 278.10 Td (August31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.81 278.10 Td (. During the fourth quarter of fiscal 2015, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.84 266.10 Td (437,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.34 266.10 Td ( shares of outstanding common stock under this plan at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.92 266.10 Td ($57.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.42 266.10 Td ( per share for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.54 254.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.43 254.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 234.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 234.10 Td (January21, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.32 234.10 Td (, our Board of Directors authorized a stock repurchase program to repurchase up to $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.92 234.10 Td (25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.42 234.10 Td ( million of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (our outstanding common stock from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.97 222.10 Td (January31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.57 222.10 Td (. During the fourth quarter of fiscal 2015, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.84 210.10 Td (430,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.34 210.10 Td ( shares of outstanding common stock under this plan at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.92 210.10 Td ($58.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.42 210.10 Td ( per share for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.54 198.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.43 198.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 178.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 178.10 Td (July25, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.89 178.10 Td (, the Board of Directors authorized a buyback program whereby we were authorized to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td ($25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 166.10 Td ( million of our common stock from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.03 166.10 Td (July31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.20 166.10 Td (. During the first and second quarters of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (2015, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.00 154.10 Td (434,1) Tj ET Q q 0 0 0 rg BT 207.13 154.10 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.13 154.10 Td ( shares of outstanding common stock at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.77 154.10 Td ($57.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.27 154.10 Td ( per share for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.60 142.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.50 142.10 Td (, excluding expenses.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (RESUL) Tj ET Q q 0 0 0 rg BT 82.43 102.10 Td (TS OF) Tj ET Q q 0 0 0 rg BT 110.67 102.10 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 147.43 102.10 Td (TIONSFISCAL) Tj ET Q q 0 0 0 rg BT 224.68 102.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 227.18 102.10 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.18 102.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.18 102.10 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.18 102.10 Td ( ) Tj ET Q q 0 0 0 rg BT 274.13 102.10 Td (AND ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.29 102.10 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 318.29 102.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 82.10 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.39 82.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.39 82.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.83 82.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.83 82.10 Td ( consisted of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.87 82.10 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.87 82.10 Td ( weeks. Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.75 82.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.75 82.10 Td ( consisted of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.80 82.10 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.80 82.10 Td (weeks. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (Consolidated Summary) Tj ET Q endstream endobj 95 0 obj <>] /Rotate 0 /Contents 96 0 R>> endobj 96 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (The following table sets forth, for the years indicated, the percentage of total net sales represented by the line items ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (reflected in our consolidated statement of operations:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 682.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 682.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 682.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 682.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 682.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 682.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 654.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 654.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 654.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 654.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 626.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 626.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 626.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 626.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 598.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 598.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 598.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 598.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 570.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 570.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 570.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 570.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 542.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 542.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 542.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 542.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 514.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 514.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 514.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 514.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 514.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 514.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 486.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 486.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 486.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 486.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 486.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 486.60 70.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 706.6 m 382.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 706.6 m 386.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 706.6 m 456.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 706.6 m 460.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 706.6 m 530.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 694.6 m 382.5 694.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 694.6 m 456.5 694.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 694.6 m 530.5 694.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 654.6 m 382.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 654.6 m 456.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 654.6 m 530.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 654.6 m 382.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 654.6 m 456.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 654.6 m 530.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 640.6 m 382.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 640.6 m 456.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 640.6 m 530.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 556.6 m 382.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 556.6 m 456.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 556.6 m 530.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 556.6 m 382.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 556.6 m 456.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 556.6 m 530.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 542.6 m 382.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 542.6 m 456.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 542.6 m 530.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 514.6 m 382.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 514.6 m 456.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 514.6 m 530.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 514.6 m 382.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 514.6 m 456.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 514.6 m 530.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 486.6 m 382.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 486.6 m 456.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 486.6 m 530.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 486.6 m 382.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 473.6 m 382.5 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 471.6 m 382.5 471.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 486.6 m 456.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 473.6 m 456.5 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 471.6 m 456.5 471.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 486.6 m 530.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 473.6 m 530.5 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 471.6 m 530.5 471.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 710.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 411.00 710.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 181.00 698.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.00 698.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.00 698.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.00 698.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 686.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.60 686.68 Td (\(As a percentage of net sales\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 673.28 Td (Net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.80 673.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 673.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.80 673.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 673.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 673.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 673.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 659.28 Td (Cost of sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 659.17 Td (55.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 659.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 659.17 Td (58.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 659.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 659.17 Td (60.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 659.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 645.28 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 645.17 Td (44.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 645.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 645.17 Td (41.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 645.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 645.17 Td (39.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 645.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 631.28 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 631.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.00 631.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 631.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 617.17 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.80 617.17 Td (9.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 617.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 617.17 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 617.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 617.17 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 617.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 603.17 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 603.17 Td (19.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 603.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 603.17 Td (18.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 603.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 603.17 Td (19.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 603.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 589.17 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.30 589.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 589.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.45 589.17 Td (\(0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.30 589.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.65 589.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 589.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 575.17 Td (Impairment of investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.30 575.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 575.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 575.17 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 575.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.65 575.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 575.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 561.17 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.80 561.17 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 561.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 561.17 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 561.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 561.17 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 561.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 547.17 Td (Total operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 547.17 Td (29.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 547.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 547.17 Td (29.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 547.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 547.17 Td (29.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 547.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 533.28 Td (Income from operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 533.17 Td (14.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 533.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 533.17 Td (12.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 533.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 533.17 Td (9.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 533.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 519.28 Td (Other income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.45 519.17 Td (\(0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.30 519.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.45 519.17 Td (\(0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.30 519.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 519.17 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 519.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 505.28 Td (Income before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 505.17 Td (14.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 505.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 505.17 Td (12.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 505.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 505.17 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 505.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 491.17 Td (Provision for income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.80 491.17 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 491.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 491.17 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 491.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 491.17 Td (2.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 491.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 477.28 Td (Net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 477.17 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 477.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 477.17 Td (9.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 477.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 477.17 Td (7.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 477.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 453.10 Td (Refer to Item6 "Selected Financial Data" for a description of significant events that impacted the results of operations for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 441.10 Td (fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.75 441.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.75 441.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.75 441.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.75 441.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.19 441.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.19 441.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 421.10 Td (Backlog) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 401.10 Td (Backlog represents orders which we expect to be shipped within 12 months and the current portion of service contracts. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 389.10 Td (Orders used to compute backlog are generally cancelable and, depending on the notice period, are subject to rescheduling by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 377.10 Td (our customers without substantial penalties. Historically) Tj ET Q q 0 0 0 rg BT 274.31 377.10 Td (, we have not experienced a significant rate of cancellation or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 365.10 Td (rescheduling, though we cannot guarantee that the rate of cancellations or rescheduling will not increase in the future. ) Tj ET Q q 0 0 0 rg BT 522.98 365.10 Td (W) Tj ET Q q 0 0 0 rg BT 531.62 365.10 Td (e had a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 353.10 Td (backlog of orders shippable within 12 months of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.64 353.10 Td ($605.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.53 353.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.74 353.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.45 353.10 Td (, including a significant concentration in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 341.10 Td (flat panel display market \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 341.10 Td (63%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.29 341.10 Td (\) for customers which are primarily located in ) Tj ET Q q 0 0 0 rg BT 358.78 341.10 Td (Asia.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.10 Td (Net Sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 301.10 Td (Market ) Tj ET Q q 0 0 0 rg BT 84.16 301.10 Td (Application) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 281.10 Td (The following table sets forth, for the periods indicated, the amount of net sales and their relative percentages of total net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 269.10 Td (sales by market application \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 217.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 217.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 217.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.50 217.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 217.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 217.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 217.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 217.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 217.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 217.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 217.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 217.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 187.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 187.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 187.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.50 187.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 187.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 187.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 187.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 187.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 187.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 187.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 187.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 187.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 157.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 157.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 157.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.50 157.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 157.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 157.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 157.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 157.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 157.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 157.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 157.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 157.60 55.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 245.60000000000002 m 275.5 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 245.60000000000002 m 279.5 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 245.60000000000002 m 334.5 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 245.60000000000002 m 393.5 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393.5 245.60000000000002 m 397.5 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 245.60000000000002 m 452.5 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 245.60000000000002 m 511.5 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 245.60000000000002 m 515.5 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 245.60000000000002 m 570.5 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 217.60000000000002 m 275.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 217.60000000000002 m 334.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 217.60000000000002 m 393.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 217.60000000000002 m 452.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 217.60000000000002 m 511.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 217.60000000000002 m 570.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 142.60000000000002 m 275.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 142.60000000000002 m 334.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 142.60000000000002 m 393.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 142.60000000000002 m 452.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 142.60000000000002 m 511.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 142.60000000000002 m 570.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 142.60000000000002 m 275.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 128.60000000000002 m 275.5 128.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 126.60000000000002 m 275.5 126.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 142.60000000000002 m 334.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 128.60000000000002 m 334.5 128.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 126.60000000000002 m 334.5 126.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 142.60000000000002 m 393.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 128.60000000000002 m 393.5 128.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 126.60000000000002 m 393.5 126.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 142.60000000000002 m 452.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 128.60000000000002 m 452.5 128.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 126.60000000000002 m 452.5 126.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 142.60000000000002 m 511.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 128.60000000000002 m 511.5 128.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 126.60000000000002 m 511.5 126.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 142.60000000000002 m 570.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 128.60000000000002 m 570.5 128.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 126.60000000000002 m 570.5 126.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 249.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 258.00 249.83 Td (Fiscal 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.00 249.83 Td (Fiscal 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.00 249.83 Td (Fiscal 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 221.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 233.45 221.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.65 237.68 Td (Per) Tj ET Q q 0 0 0 rg BT 299.49 237.68 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 294.35 229.68 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.15 221.68 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 351.45 221.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.65 237.68 Td (Per) Tj ET Q q 0 0 0 rg BT 417.49 237.68 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.35 229.68 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.15 221.68 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.45 221.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.65 237.68 Td (Per) Tj ET Q q 0 0 0 rg BT 535.49 237.68 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.35 229.68 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.15 221.68 Td (net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 207.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.00 207.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.00 207.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.00 207.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.00 207.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.00 207.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.00 207.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 192.27 Td (Microelectronics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.00 192.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 192.27 Td (454,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 192.27 Td (53.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.65 192.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.00 192.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 192.27 Td (406,187) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 192.27 Td (50.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 192.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.00 192.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 192.27 Td (384,620) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 192.27 Td (48.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.65 192.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 177.27 Td (OEM components and instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 177.27 Td (161,573) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 177.27 Td (18.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.65 177.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 177.27 Td (168,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 177.27 Td (21.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 177.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 177.27 Td (169,978) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 177.27 Td (21.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.65 177.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 162.27 Td (Materials processing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 162.27 Td (124,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 162.27 Td (14.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.65 162.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 162.27 Td (110,986) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 162.27 Td (13.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 162.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 162.27 Td (118,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 162.27 Td (14.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.65 162.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 147.27 Td (Scientific and government programs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 147.27 Td (116,893) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 147.27 Td (13.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.65 147.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 147.27 Td (116,546) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 147.27 Td (14.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 147.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 147.27 Td (121,472) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 147.27 Td (15.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.65 147.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.00 132.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.00 132.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 132.27 Td (857,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 132.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.65 132.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.00 132.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 132.27 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 132.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 132.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.00 132.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 132.27 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.15 132.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.65 132.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 108.10 Td (During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.99 108.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.99 108.10 Td (, net sales increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.39 108.10 Td ($54.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.29 108.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.12 108.10 Td (7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.45 108.10 Td (, compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.80 108.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.80 108.10 Td (, including decreases due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 96.10 Td (unfavorable impact of foreign exchange rates, with sales increases in the microelectronics, materials processing and scientific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 84.10 Td (and government programs markets partially of) Tj ET Q q 0 0 0 rg BT 235.60 84.10 Td (fset by decreases in the OEM components and instrumentation market. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 72.10 Td (Microelectronics sales increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.44 72.10 Td ($48.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.33 72.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.16 72.10 Td (12%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.49 72.10 Td (, primarily due to higher shipments for flat panel display annealing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 60.10 Td (systems and higher shipments for semiconductor applications partially of) Tj ET Q q 0 0 0 rg BT 342.53 60.10 Td (fset by lower shipments for advanced packaging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 48.10 Td (applications. Materials processing sales increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.04 48.10 Td ($13.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.94 48.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.77 48.10 Td (12%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.10 48.10 Td (, during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.86 48.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.86 48.10 Td ( primarily due to higher shipments ) Tj ET Q endstream endobj 97 0 obj <>] /Rotate 0 /Contents 98 0 R>> endobj 98 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (for cutting, marking and other materials processing applications. ) Tj ET Q q 0 0 0 rg BT 310.30 742.10 Td (The increase in scientific and government programs market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (sales of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.77 730.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.66 730.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.49 730.10 Td (0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.82 730.10 Td (, during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.58 730.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.58 730.10 Td ( was primarily due to higher demand for advanced research applications used by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (university and government research groups. ) Tj ET Q q 0 0 0 rg BT 227.54 718.10 Td (The decrease in the OEM components and instrumentation market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.35 718.10 Td ($7.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.24 718.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 706.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 706.10 Td (, during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.92 706.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.92 706.10 Td ( was primarily due to lower shipments for medical and machine vision applications partially of) Tj ET Q q 0 0 0 rg BT 531.09 706.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (higher shipments for military and bio-instrumentation applications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 674.10 Td (During fiscal 2015, net sales increased by $7.8 million, or 1%, compared to fiscal 2014, with sales increases in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (microelectronics market partially of) Tj ET Q q 0 0 0 rg BT 193.37 662.10 Td (fset by decreases in the materials processing, scientific and government programs and OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (components and instrumentation markets. Microelectronics sales increased $21.6 million, or 6%, primarily due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (shipments for flat panel display annealing systems partially of) Tj ET Q q 0 0 0 rg BT 298.10 638.10 Td (fset by lower shipments for semiconductor and advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (packaging applications. Materials processing sales decreased $7.6 million, or 6%, during fiscal 2015 primarily due to lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (shipments for marking, non-metal drilling and non-metal cutting applications. ) Tj ET Q q 0 0 0 rg BT 363.92 614.10 Td (The decrease in scientific and government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (programs market sales of $4.9 million, or 4%, during fiscal 2015 was primarily due to lower demand for advanced research ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (applications used by university and government research groups in Europe. ) Tj ET Q q 0 0 0 rg BT 353.35 590.10 Td (The decrease in the OEM components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (instrumentation market of $1.2 million, or 1%, during fiscal 2015 was primarily due to lower shipments for medical and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (machine vision applications partially of) Tj ET Q q 0 0 0 rg BT 208.11 566.10 Td (fset by higher shipments for bio-instrumentation and forensic applications, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (impact of the acquisitions of ) Tj ET Q q 0 0 0 rg BT 166.18 554.10 Td (T) Tj ET Q q 0 0 0 rg BT 171.94 554.10 Td (insley and Raydiance assets \($2.0 million\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 534.10 Td (The timing for shipments of our higher average selling price excimer products in the flat panel display market have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (historically fluctuated and are in the future expected to fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 358.83 522.10 Td (-to-quarter due to customer scheduling, our ability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (to manufacture these products and/or availability of critical component parts and supplies.) Tj ET Q q 0 0 0 rg BT 412.39 510.10 Td (As a result, the timing to convert ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (orders for these products to net sales will likely fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 329.43 498.10 Td (-to-quarter) Tj ET Q q 0 0 0 rg BT 371.64 498.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 478.10 Td (Looking at our prior ten years of actual results, excluding a couple of recovery years, our first quarter revenues generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (ranged 2% to 12% below the fourth quarter of the prior fiscal year) Tj ET Q q 0 0 0 rg BT 314.35 466.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 446.10 Td (In fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.99 446.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.99 446.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.99 446.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.99 446.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.42 446.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.42 446.10 Td (, one customer accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.71 446.10 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.04 446.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.04 446.10 Td (17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.37 446.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.81 446.10 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.14 446.10 Td ( of net sales, respectively) Tj ET Q q 0 0 0 rg BT 491.29 446.10 Td (. In fiscal 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (another customer accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.83 434.10 Td (16%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.16 434.10 Td ( of net sales.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (Segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 394.10 Td (e are or) Tj ET Q q 0 0 0 rg BT 112.43 394.10 Td (ganized into two reportable operating segments: Specialty Lasers and Systems \("SLS"\) and Commercial Lasers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (and Components \("CLC"\). SLS develops and manufactures configurable, advanced-performance products lar) Tj ET Q q 0 0 0 rg BT 487.29 382.10 Td (gely serving the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (microelectronics, scientific research and government programs and OEM components and instrumentation markets. CLC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (focuses on higher volume products that are of) Tj ET Q q 0 0 0 rg BT 232.82 358.10 Td (fered in set configurations. CLC's primary markets include materials processing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 326.10 Td (The following table sets forth, for the periods indicated, the amount of net sales and their relative percentages of total net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (sales by segment \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 252.60 132.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 252.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 252.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.50 252.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.50 252.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 252.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 252.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 252.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 252.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 252.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 252.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 252.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 212.60 132.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 212.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 212.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.50 212.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.50 212.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 212.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 212.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 212.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 212.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 212.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 212.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 212.60 57.00 -25.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 281.6 m 247.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 281.6 m 251.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 281.6 m 308.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 281.6 m 369.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 281.6 m 373.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 281.6 m 430.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 281.6 m 491.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 281.6 m 495.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 281.6 m 552.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 252.60000000000002 m 247.5 252.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 252.60000000000002 m 308.5 252.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 252.60000000000002 m 369.5 252.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 252.60000000000002 m 430.5 252.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 252.60000000000002 m 491.5 252.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 252.60000000000002 m 552.5 252.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 187.60000000000002 m 247.5 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 173.60000000000002 m 247.5 173.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 171.60000000000002 m 247.5 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 187.60000000000002 m 308.5 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 173.60000000000002 m 308.5 173.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 171.60000000000002 m 308.5 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 187.60000000000002 m 369.5 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 173.60000000000002 m 369.5 173.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 171.60000000000002 m 369.5 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 187.60000000000002 m 430.5 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 173.60000000000002 m 430.5 173.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 171.60000000000002 m 430.5 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 187.60000000000002 m 491.5 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 173.60000000000002 m 491.5 173.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 171.60000000000002 m 491.5 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 187.60000000000002 m 552.5 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 173.60000000000002 m 552.5 173.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 171.60000000000002 m 552.5 171.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 61.00 286.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 230.00 285.83 Td (Fiscal 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.00 285.83 Td (Fiscal 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.00 285.83 Td (Fiscal 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 124.00 256.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 204.45 256.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 260.65 272.83 Td (Per) Tj ET Q q 0 0 0 rg BT 272.49 272.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 267.35 264.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.15 256.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 326.45 256.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.65 272.83 Td (Per) Tj ET Q q 0 0 0 rg BT 394.49 272.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.35 264.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.15 256.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.45 256.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.65 272.83 Td (Per) Tj ET Q q 0 0 0 rg BT 516.49 272.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.35 264.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.15 256.83 Td (net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 61.00 242.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 242.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.00 242.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 242.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 242.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 242.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.00 242.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 227.27 Td (Specialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 217.27 Td (\(SLS\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 217.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.15 217.27 Td (631,313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.15 217.27 Td (73.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 217.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 217.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 217.27 Td (559,593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 217.27 Td (69.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 217.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 217.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 217.27 Td (565,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 217.27 Td (71.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 217.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 202.27 Td (Commercial Lasers and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 192.27 Td (Components \(CLC\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.15 192.27 Td (226,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.15 192.27 Td (26.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 192.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 192.27 Td (242,867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 192.27 Td (30.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 192.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 192.27 Td (229,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 192.27 Td (28.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 192.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 177.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 177.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.15 177.27 Td (857,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 177.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 177.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 177.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 177.27 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 177.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 177.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 177.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 177.27 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 177.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 177.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 153.10 Td (Net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.19 153.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.19 153.10 Td ( increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.95 153.10 Td ($54.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.84 153.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.67 153.10 Td (7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 153.10 Td (, compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.36 153.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.36 153.10 Td (, with increases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.61 153.10 Td ($71.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.50 153.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 141.10 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.33 141.10 Td (, in our SLS segment and decreases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.57 141.10 Td ($16.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.46 141.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.29 141.10 Td (7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.62 141.10 Td (, in our CLC segment. Both the fiscal 2016 increase in SLS and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 129.10 Td (decrease in CLC segment sales, respectively) Tj ET Q q 0 0 0 rg BT 227.07 129.10 Td (, included decreases due to the unfavorable impact of foreign exchange rates. Net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 117.10 Td (sales for fiscal 2015 increased $7.8 million, or 1%, compared to fiscal 2014, with increases of $13.8 million, or 6%, in our CLC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 105.10 Td (segment and decreases of $6.0 million, or 1%, in our SLS segment. Both the fiscal 2015 increase and decrease in CLC and SLS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 93.10 Td (segment sales, respectively) Tj ET Q q 0 0 0 rg BT 157.92 93.10 Td (, included decreases due to the unfavorable impact of foreign exchange rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 73.10 Td (The increase in our SLS segment sales in fiscal 2016 was primarily due to higher shipments of flat panel display ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 61.10 Td (annealing systems and higher service revenue as well as higher shipments for semiconductor and military applications partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 49.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 49.10 Td (fset by lower shipments for medical and advanced packaging applications. ) Tj ET Q q 0 0 0 rg BT 358.15 49.10 Td (The fiscal 2016 increase includes an increase of ) Tj ET Q endstream endobj 99 0 obj <>] /Rotate 0 /Contents 100 0 R>> endobj 100 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td ($1) Tj ET Q q 0 0 0 rg BT 59.63 742.10 Td (1.3 million, primarily in military and scientific applications, resulting from our acquisitions of ) Tj ET Q q 0 0 0 rg BT 438.27 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 444.02 742.10 Td (insley and Raydiance assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (in the fourth quarter of fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 192.55 730.10 Td (The decrease in our SLS segment sales in fiscal 2015 was primarily due to lower shipments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (for medical, semiconductor) Tj ET Q q 0 0 0 rg BT 159.28 718.10 Td (, bioinstrumentation and advanced packaging applications partially of) Tj ET Q q 0 0 0 rg BT 437.91 718.10 Td (fset by higher shipments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (flat panel display annealing systems. ) Tj ET Q q 0 0 0 rg BT 199.23 706.10 Td (The fiscal 2015 decrease includes an increase of $2.0 million, primarily in military ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (applications, resulting from our acquisitions of ) Tj ET Q q 0 0 0 rg BT 239.51 694.10 Td (T) Tj ET Q q 0 0 0 rg BT 245.26 694.10 Td (insley and Raydiance assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 674.10 Td (The decrease in our CLC segment sales from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.88 674.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.88 674.10 Td ( to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.81 674.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.81 674.10 Td ( was primarily due to lower medical and advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (packaging application sales. ) Tj ET Q q 0 0 0 rg BT 164.78 662.10 Td (The increase in our CLC segment sales from fiscal 2014 to fiscal 2015 was primarily due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (medical, bioinstrumentation and flat panel display application sales.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (Gross Profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (Consolidated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 590.10 Td (Our gross profit rate increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.62 590.10 Td (2.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.45 590.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.23 590.10 Td (44.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.06 590.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.99 590.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.99 590.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.43 590.10 Td (41.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.26 590.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.20 590.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.20 590.10 Td ( primarily due to favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (product mar) Tj ET Q q 0 0 0 rg BT 98.41 578.10 Td (gins \(2.2%\) resulting from the impact of higher volumes in certain business units \(primarily flat panel display ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (applications\) and the favorable impact from foreign currency fluctuations \(primarily the Euro and ) Tj ET Q q 0 0 0 rg BT 442.54 566.10 Td (Y) Tj ET Q q 0 0 0 rg BT 448.76 566.10 Td (en\) as well as favorable mix ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (in the microelectronics market, particularly for flat panel display applications, net of unfavorable mix in the OEM components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (and instrumentation market. In addition, the mar) Tj ET Q q 0 0 0 rg BT 243.66 542.10 Td (gin also benefited from lower other costs \(0.3%\) due primarily to an accrual in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (the third quarter of fiscal 2015 for a customs audit in South Korea and lower inventory char) Tj ET Q q 0 0 0 rg BT 416.38 530.10 Td (ges for excess or obsolete inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (as well as lower warranty costs \(0.2%\) due to fewer warranty events.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 498.10 Td (Our gross profit rate increased by 2.4% to 41.8% in fiscal 2015 from 39.4% in fiscal 2014 primarily due to favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (product mar) Tj ET Q q 0 0 0 rg BT 98.41 486.10 Td (gins \(1.2%\) resulting from favorable mix in the microelectronics market and the favorable impact from foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (currency fluctuations net of the impact of lower volumes in certain business units. In addition, the mar) Tj ET Q q 0 0 0 rg BT 459.16 474.10 Td (gin also benefited from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (lower warranty costs \(0.6%\) due to fewer warranty events in both segments, lower other costs \(0.5%\) due primarily to lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (inventory char) Tj ET Q q 0 0 0 rg BT 107.85 450.10 Td (ges for excess or obsolete inventory and lower intangibles amortization \(0.1%\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 430.10 Td (Our gross profit rate has been and will continue to be af) Tj ET Q q 0 0 0 rg BT 296.81 430.10 Td (fected by a variety of factors including market and product mix, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (pricing on volume orders, shipment volumes, our ability to manufacture advanced and more complex products, manufacturing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 406.10 Td (ficiencies, excess and obsolete inventory write-downs, warranty costs, amortization of intangibles, pricing by competitors or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (suppliers, new product introductions, production volume, customization and reconfiguration of systems, commodity prices and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (foreign currency fluctuations, particularly the recent volatility of the Euro and a lesser extent, the Japanese ) Tj ET Q q 0 0 0 rg BT 478.35 382.10 Td (Y) Tj ET Q q 0 0 0 rg BT 484.57 382.10 Td (en and South ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (Korean ) Tj ET Q q 0 0 0 rg BT 81.75 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 90.39 370.10 Td (on.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (Specialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 330.10 Td (Our SLS gross profit rate increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.35 330.10 Td (3.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.18 330.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.96 330.10 Td (48.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.79 330.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.72 330.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.72 330.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.16 330.10 Td (45.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.99 330.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.93 330.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.93 330.10 Td ( primarily due to favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (product mar) Tj ET Q q 0 0 0 rg BT 98.41 318.10 Td (gins \(2.7%\), lower warranty costs \(0.2%\) due to fewer warranty events and lower intangibles amortization expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (\(0.1%\). ) Tj ET Q q 0 0 0 rg BT 82.31 306.10 Td (The 2.7% product mar) Tj ET Q q 0 0 0 rg BT 172.10 306.10 Td (gin improvement resulted from the impact of higher volumes in most business units and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (favorable impact from foreign currency fluctuations \(primarily the Euro and ) Tj ET Q q 0 0 0 rg BT 356.73 294.10 Td (Y) Tj ET Q q 0 0 0 rg BT 362.95 294.10 Td (en\) as well as favorable mix in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (microelectronics market, particularly for flat panel display applications, including favorable service mix net of unfavorable mix ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 Td (in the OEM components and instrumentation market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 250.10 Td (Our SLS gross profit rate increased by 3.2% to 45.3% in fiscal 2015 from 42.1% in fiscal 2014 primarily due to) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 520.86 250.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 523.36 250.10 Td (favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (product mar) Tj ET Q q 0 0 0 rg BT 98.41 238.10 Td (gins \(1.7%\), lower other costs \(0.8%\) primarily due to lower inventory char) Tj ET Q q 0 0 0 rg BT 400.93 238.10 Td (ges for excess or obsolete inventory net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (of the amortization of the inventory step up from the ) Tj ET Q q 0 0 0 rg BT 262.54 226.10 Td (T) Tj ET Q q 0 0 0 rg BT 268.30 226.10 Td (insley and Raydiance asset acquisitions, lower warranty costs \(0.6%\) due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (to fewer warranty events and lower intangibles amortization expense \(0.1%\). ) Tj ET Q q 0 0 0 rg BT 360.26 214.10 Td (The 1.7% product mar) Tj ET Q q 0 0 0 rg BT 450.05 214.10 Td (gin improvement resulted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (from favorable product mix in the microelectronics and OEM components and instrumentation markets as well as favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (service mix and the favorable impact from foreign currency fluctuations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (Commer) Tj ET Q q 0 0 0 rg BT 87.58 170.10 Td (cial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 150.10 Td (Our CLC gross profit rate increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.57 150.10 Td (0.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.40 150.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.18 150.10 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.01 150.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.94 150.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.94 150.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.38 150.10 Td (34.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.21 150.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.14 150.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.14 150.10 Td ( primarily due to lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (other costs \(0.8%\) due to lower freight and packaging costs as well as lower inventory char) Tj ET Q q 0 0 0 rg BT 414.71 138.10 Td (ges for excess or obsolete inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 126.10 Td (fset by unfavorable product mar) Tj ET Q q 0 0 0 rg BT 222.08 126.10 Td (gin \(0.5%\) and higher warranty costs \(0.2%\) due to more warranty events. ) Tj ET Q q 0 0 0 rg BT 521.52 126.10 Td (The 0.5% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (product mar) Tj ET Q q 0 0 0 rg BT 98.41 114.10 Td (gin deterioration resulted from unfavorable yields and lower volumes in certain business units partially of) Tj ET Q q 0 0 0 rg BT 520.90 114.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (favorable mix in the OEM components and instrumentation and materials processing markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 82.10 Td (Our CLC gross profit rate increased by 1.0% to 34.9% in fiscal 2015 from 33.9% in fiscal 2014 primarily due to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (favorable product mar) Tj ET Q q 0 0 0 rg BT 138.67 70.10 Td (gin \(0.5%\) and lower warranty costs \(0.5%\) due to fewer warranty events. ) Tj ET Q q 0 0 0 rg BT 437.55 70.10 Td (The 0.5% product mar) Tj ET Q q 0 0 0 rg BT 527.34 70.10 Td (gin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (improvement resulted from favorable mix in the OEM components and instrumentation and materials processing markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 46.10 Td (fset by unfavorable yields in certain business units.) Tj ET Q endstream endobj 101 0 obj <>] /Rotate 0 /Contents 102 0 R>> endobj 102 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (48) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Operating Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 722.25 Td (The following table sets forth, for the periods indicated, the amount of operating expenses and their relative percentages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (of total net sales by the line items reflected in our consolidated statement of operations \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 622.75 157.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 622.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 622.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 622.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 622.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 622.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 592.75 157.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 592.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 592.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 592.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 592.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 592.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 562.75 157.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.50 562.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 562.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 562.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 562.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 562.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 562.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 562.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 562.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 562.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 562.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 562.75 54.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 677.75 m 261.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 677.75 m 265.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 677.75 m 319.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 677.75 m 323.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 677.75 m 377.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 677.75 m 381.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 677.75 m 435.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 677.75 m 439.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 677.75 m 493.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 677.75 m 497.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 677.75 m 551.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 664.75 m 261.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 664.75 m 265.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 664.75 m 319.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 664.75 m 377.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 664.75 m 381.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 664.75 m 435.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 664.75 m 493.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 664.75 m 497.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 664.75 m 551.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 635.75 m 261.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 635.75 m 319.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 635.75 m 377.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 635.75 m 435.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 635.75 m 493.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 635.75 m 551.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 547.75 m 261.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 547.75 m 319.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 547.75 m 377.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 547.75 m 435.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 547.75 m 493.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 547.75 m 551.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 547.75 m 261.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 533.75 m 261.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 531.75 m 261.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 547.75 m 319.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 533.75 m 319.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 531.75 m 319.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 547.75 m 377.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 533.75 m 377.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 531.75 m 377.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 547.75 m 435.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 533.75 m 435.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 531.75 m 435.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 547.75 m 493.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 533.75 m 493.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 531.75 m 493.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 547.75 m 551.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 533.75 m 551.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 531.75 m 551.5 531.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 682.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 369.00 681.98 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 668.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.00 668.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 668.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.00 668.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 128.50 639.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 219.95 639.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 273.15 655.98 Td (Per) Tj ET Q q 0 0 0 rg BT 284.99 655.98 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.85 647.98 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.65 639.98 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.95 639.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.15 655.98 Td (Per) Tj ET Q q 0 0 0 rg BT 400.99 655.98 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.85 647.98 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.65 639.98 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.95 639.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.15 655.98 Td (Per) Tj ET Q q 0 0 0 rg BT 516.99 655.98 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.85 647.98 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.65 639.98 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 626.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.20 626.98 Td (\(Dollars in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 612.42 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.00 612.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.15 612.42 Td (81,801) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.15 612.42 Td (9.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 612.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.00 612.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 612.42 Td (81,455) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.75 612.42 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 612.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.00 612.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 612.42 Td (79,070) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 612.42 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 612.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 597.42 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.15 597.42 Td (169,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.15 597.42 Td (19.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 597.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 597.42 Td (149,829) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.75 597.42 Td (18.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 597.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 597.42 Td (154,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 597.42 Td (19.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 597.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 582.42 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.65 582.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 582.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 582.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.80 582.47 Td (\(1,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 582.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.45 582.42 Td (\(0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.30 582.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 582.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 582.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 582.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 567.42 Td (Impairment of investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.65 567.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 567.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 567.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 567.42 Td (2,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.75 567.42 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 567.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 567.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 567.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 567.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 552.42 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.15 552.42 Td (2,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.15 552.42 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 552.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 552.42 Td (2,667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.75 552.42 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 552.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 552.42 Td (3,424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 552.42 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 552.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 537.42 Td (Total operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.00 537.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.15 537.42 Td (253,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.15 537.42 Td (29.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 537.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.00 537.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 537.42 Td (234,652) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.75 537.42 Td (29.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 537.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.00 537.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 537.42 Td (236,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 537.42 Td (29.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 537.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 513.25 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 513.25 Td (ch and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 493.25 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.39 493.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.39 493.25 Td ( research and development \("R&D"\) expenses increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.63 493.25 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.52 493.25 Td (, or less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.57 493.25 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.90 493.25 Td (, from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.99 493.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.99 493.25 Td (, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 481.25 Td (decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.19 481.25 Td (9.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.02 481.25 Td ( of sales, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.99 481.25 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.82 481.25 Td ( in fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 300.58 481.25 Td (The $0.3 million increase was primarily due to $2.0 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 469.25 Td (incremental spending from the asset acquisitions from ) Tj ET Q q 0 0 0 rg BT 268.93 469.25 Td (T) Tj ET Q q 0 0 0 rg BT 274.69 469.25 Td (insley and Raydiance, both of which were acquired in the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 457.25 Td (quarter of fiscal 2015, $0.3 million higher stock-based compensation expense and $0.3 million higher char) Tj ET Q q 0 0 0 rg BT 476.10 457.25 Td (ges for increases in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 445.25 Td (deferred compensation plan liabilities. ) Tj ET Q q 0 0 0 rg BT 205.60 445.25 Td (The increases were partially of) Tj ET Q q 0 0 0 rg BT 328.69 445.25 Td (fset by $2.3 million lower project spending including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 433.25 Td (favorable impact of foreign exchange rates, lower spending on labor and materials and higher customer reimbursements. On a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 421.25 Td (segment basis, SLS spending increased $0.7 million primarily due to the asset acquisitions from ) Tj ET Q q 0 0 0 rg BT 436.43 421.25 Td (T) Tj ET Q q 0 0 0 rg BT 442.18 421.25 Td (insley and Raydiance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 409.25 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 409.25 Td (fset by lower project spending including the favorable impact of foreign exchange rates. CLC spending decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 397.25 Td ($1.4 million primarily due to lower spending on projects and higher customer reimbursements. Corporate and other spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 385.25 Td (increased $1.0 million primarily due to higher char) Tj ET Q q 0 0 0 rg BT 253.65 385.25 Td (ges for increases in deferred compensation plan liabilities and higher stock-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 373.25 Td (based compensation expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 353.25 Td (Fiscal 2015 research and development \("R&D"\) expenses increased $2.4 million, or 3%, from fiscal 2014, and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 341.25 Td (to 10.2% from 10.0% of net sales. ) Tj ET Q q 0 0 0 rg BT 188.68 341.25 Td (The $2.4 million increase was primarily due to $2.5 million higher project spending as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 329.25 Td (result of lower customer reimbursements for development projects and higher spending on various projects net of the favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 317.25 Td (impact of foreign exchange rates as well as an increase of $0.6 million from the impact of the acquisitions of ) Tj ET Q q 0 0 0 rg BT 487.18 317.25 Td (T) Tj ET Q q 0 0 0 rg BT 492.93 317.25 Td (insley and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 305.25 Td (Raydiance assets in the fourth quarter of fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 263.09 305.25 Td (The increases were partially of) Tj ET Q q 0 0 0 rg BT 386.18 305.25 Td (fset by $0.7 million lower other spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 293.25 Td (including lower char) Tj ET Q q 0 0 0 rg BT 132.57 293.25 Td (ges for increases in deferred compensation plan liabilities with the related income for increases in deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 281.25 Td (compensation assets recorded in other income \(expense\) and lower stock-based compensation expense. On a segment basis, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 269.25 Td (SLS spending increased $0.8 million primarily due to higher net spending on projects due to lower customer reimbursements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 257.25 Td (and the impact of the acquisitions of ) Tj ET Q q 0 0 0 rg BT 197.84 257.25 Td (T) Tj ET Q q 0 0 0 rg BT 203.59 257.25 Td (insley and Raydiance assets, in the fourth quarter of fiscal 2015, partially of) Tj ET Q q 0 0 0 rg BT 506.66 257.25 Td (fset by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 245.25 Td (favorable impact of foreign exchange rates. CLC spending increased $2.1 million primarily due to higher spending on projects ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 233.25 Td (and lower customer reimbursements. Corporate and other spending decreased $0.5 million due to lower char) Tj ET Q q 0 0 0 rg BT 484.13 233.25 Td (ges for increases in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 221.25 Td (deferred compensation plan liabilities and lower stock-based compensation expense.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 201.25 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 181.25 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.39 181.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.39 181.25 Td ( selling, general and administrative \("SG&A"\) expenses increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.08 181.25 Td ($19.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.97 181.25 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.80 181.25 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.13 181.25 Td (, from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.23 181.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.23 181.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 169.25 Td (The increase was primarily due to a net $8.5 million higher consulting and legal costs related to acquisitions in fiscal 2016 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 157.25 Td (compared to fiscal 2015 \(of which $9.8 million was related to the acquisition of Rofin in fiscal 2016\) and $6.2 million higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 145.25 Td (payroll spending primarily due to higher variable compensation and higher sales commissions net of the favorable impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 133.25 Td (foreign exchange rates. In addition, the increase includes $1.8 million higher char) Tj ET Q q 0 0 0 rg BT 376.37 133.25 Td (ges for increases in deferred compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 121.25 Td (plan liabilities, $1.6 million higher stock-based compensation expense due to \(1\) a higher average stock price during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 109.25 Td (2016, \(2\) a higher number of restricted stock shares outstanding and \(3\) the expense related to accounting for the transition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 97.25 Td (agreement of our former CFO, and $1.2 million higher other net variable spending including incremental spending from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 85.25 Td (asset acquisitions of ) Tj ET Q q 0 0 0 rg BT 132.86 85.25 Td (T) Tj ET Q q 0 0 0 rg BT 138.62 85.25 Td (insley and Raydiance. On a segment basis as compared to the prior year period, SLS segment expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 73.25 Td (increased $4.0 million primarily due to higher payroll spending and the impact due to the asset acquisitions from ) Tj ET Q q 0 0 0 rg BT 503.33 73.25 Td (T) Tj ET Q q 0 0 0 rg BT 509.08 73.25 Td (insley and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 61.25 Td (Raydiance net of the favorable impact of foreign exchange rates. CLC spending increased $1.9 million primarily due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 49.25 Td (payroll spending net of the favorable impact of foreign exchange rates. Spending for Corporate and other increased $13.4 ) Tj ET Q endstream endobj 103 0 obj <>] /Rotate 0 /Contents 104 0 R>> endobj 104 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (million primarily due to higher consulting and legal costs related to acquisitions, higher char) Tj ET Q q 0 0 0 rg BT 419.73 742.10 Td (ges for increases in deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (compensation plan liabilities, higher stock-based compensation expense and higher payroll spending.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 710.10 Td (Fiscal 2015 SG&A) Tj ET Q q 0 0 0 rg BT 150.12 710.10 Td ( expenses decreased $4.2 million, or 3%, from fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 387.10 710.10 Td (The decrease was primarily due to $3.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (million lower char) Tj ET Q q 0 0 0 rg BT 123.69 698.10 Td (ges for increases in deferred compensation plan liabilities with the related income for increases in deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (compensation assets recorded in other income \(expense\) and $0.7 million lower stock-based compensation expense. ) Tj ET Q q 0 0 0 rg BT 516.35 686.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (decreases were partially of) Tj ET Q q 0 0 0 rg BT 156.70 674.10 Td (fset by $0.2 million higher other net variable spending due to higher payroll related spending from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (higher variable compensation, salaries and benefits, higher legal and consulting costs including costs related to acquisitions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (higher bad debt expenses partially of) Tj ET Q q 0 0 0 rg BT 197.27 650.10 Td (fset by the favorable impact of foreign exchange rates and lower demo amortization. On a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (segment basis, SLS segment expenses decreased $1.7million primarily due to lower variable spending. CLC spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (decreased $1.2million primarily due to lower variable spending. Spending for Corporate and other decreased $1.3 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (primarily due to lower char) Tj ET Q q 0 0 0 rg BT 159.22 614.10 Td (ges for increases in deferred compensation plan liabilities and lower stock-based compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (expense partially of) Tj ET Q q 0 0 0 rg BT 128.68 602.10 Td (fset by higher variable spending including $1.3 million of legal and consulting costs related to acquisitions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (and higher payroll spending.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 550.10 Td (On July 27, 2015, we acquired the assets and certain liabilities of the ) Tj ET Q q 0 0 0 rg BT 349.75 550.10 Td (T) Tj ET Q q 0 0 0 rg BT 355.50 550.10 Td (insley business from L-3 Communications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (Corporation for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.24 538.10 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.14 538.10 Td (, excluding transaction costs \(See Note 3\). ) Tj ET Q q 0 0 0 rg BT 395.30 538.10 Td (The purchase price was lower than the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (fair value of net assets purchased, resulting in a gain of $1.3 million recorded in our consolidated statements of operations for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (our fiscal year 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (Impairment of investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 474.10 Td (On June 8, 2010, we invested $2.0 million in SiOnyx, Inc., a privately-held company) Tj ET Q q 0 0 0 rg BT 412.07 474.10 Td (.) Tj ET Q q 0 0 0 rg BT 416.89 474.10 Td (The investment was included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (other assets and was being carried on a cost basis. During the third quarter of fiscal 2015 we determined that our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (became other) Tj ET Q q 0 0 0 rg BT 103.38 450.10 Td (-than temporarily impaired. ) Tj ET Q q 0 0 0 rg BT 215.57 450.10 Td (As a result, we recorded a non-cash impairment char) Tj ET Q q 0 0 0 rg BT 426.13 450.10 Td (ge of $2.0 million to operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (expense in our results of operations in the third quarter of fiscal 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 398.10 Td (Amortization of intangible assets increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.22 398.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.12 398.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.95 398.10 Td (6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.28 398.10 Td (, from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.37 398.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.37 398.10 Td ( to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.30 398.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.30 398.10 Td ( primarily due to increases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (due to the write-of) Tj ET Q q 0 0 0 rg BT 123.96 386.10 Td (f of IPR&D of $0.4 million related to our acquisition of Innolight and due to the asset acquisition from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (Raydiance in the fourth quarter of fiscal 2015 partially of) Tj ET Q q 0 0 0 rg BT 278.91 374.10 Td (fset by the completion of amortization of certain intangibles from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (prior acquisitions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 342.10 Td (Amortization of intangible assets decreased $0.8 million, or 22%, from fiscal 2014 to fiscal 2015 primarily due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (completion of amortization of certain intangibles from prior acquisitions partially of) Tj ET Q q 0 0 0 rg BT 386.39 330.10 Td (fset by amortization due to the asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (acquisition from Raydiance in the fourth quarter of fiscal 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (Other) Tj ET Q q 0 0 0 rg BT 75.37 298.10 Td ( income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 278.10 Td (Other income \(expense\), net, changed by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.60 278.10 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.49 278.10 Td ( from other expense of $1.2 million in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.34 278.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.34 278.10 Td ( to other expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (of $4.7 million fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.38 266.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.38 266.10 Td (. ) Tj ET Q q 0 0 0 rg BT 161.20 266.10 Td (The higher expenses were primarily due to higher net foreign exchange losses \($4.9 million\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td ($1.3 million higher interest expense primarily for the commitment of our term loan to finance the acquisition of Rofin partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 242.10 Td (fset by $2.1 million higher gains, net of expenses, on our deferred compensation plan assets and $0.5 million higher interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (income due to higher balances of cash and short-term investments. ) Tj ET Q q 0 0 0 rg BT 318.91 230.10 Td (The higher foreign exchange losses were primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (\(1\) higher unhedged exposure in fiscal 2016, \(2\) a loss of $2.2 million on our hedge of our foreign exchange risk related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (commitment of our term loan to finance the acquisition of Rofin, \(3\) the significant movement of rates in June 2016 due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (Brexit vote and \(4\) higher forward points on our hedging contracts. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 174.10 Td (Other income \(expense\), net, changed by $3.5 million from other income of $2.4 million in fiscal 2014 to other expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (of $1.2 million in fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 171.47 162.10 Td (The decrease was primarily due to $4.6 million lower gains, net of expenses, on our deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (compensation plan assets partially of) Tj ET Q q 0 0 0 rg BT 197.56 150.10 Td (fset by lower net foreign currency exchange losses \($0.9 million\) and $0.2 million higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (interest income due to higher balances of cash and short-term investments. Net foreign currency exchange losses decreased due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (to higher unhedged exposure in fiscal 2014 and the significant movement of the Japanese ) Tj ET Q q 0 0 0 rg BT 409.53 126.10 Td (Y) Tj ET Q q 0 0 0 rg BT 415.75 126.10 Td (en versus the Euro in the last month ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (of the first quarter of fiscal 2014. In addition, favorable changes in foreign exchange rates in the second quarter of fiscal 2015 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (compared to the timing of hedge contracts were partially of) Tj ET Q q 0 0 0 rg BT 287.23 102.10 Td (fset by an unfavorable impact in fiscal 2015 due to the weakening of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (certain ) Tj ET Q q 0 0 0 rg BT 79.15 90.10 Td (Asian currencies against the U.S. Dollar) Tj ET Q q 0 0 0 rg BT 239.38 90.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (Income taxes) Tj ET Q endstream endobj 105 0 obj <>] /Rotate 0 /Contents 106 0 R>> endobj 106 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.63 742.10 Td (fective tax rate on income before income taxes for fiscal 2016 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.64 742.10 Td (28.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.47 742.10 Td ( was lower than the statutory rate of 35.0%. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (This was primarily due to dif) Tj ET Q q 0 0 0 rg BT 166.19 730.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (rates including the Singapore tax exemption, the benefit of foreign tax credits and the benefit of federal research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (development tax credits including renewal of the federal research and development tax credits for fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 492.14 706.10 Td (These amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (are partially of) Tj ET Q q 0 0 0 rg BT 108.68 694.10 Td (fset by deemed dividend inclusions under the Subpart F tax rules, stock-based compensation not deductible for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (tax purposes and limitations on the deductibility of compensation under IRC Section 162\(m\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 662.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.63 662.10 Td (fective tax rate on income before income taxes for fiscal 2015 of 23.3% was lower than the statutory rate of 35.0%. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (This was primarily due to dif) Tj ET Q q 0 0 0 rg BT 166.19 650.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (rates including South Korea and Singapore tax exemptions, the benefit of foreign tax credits and the benefit of federal research ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (and development tax credits including renewal of the federal research and development tax credits for fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 509.08 626.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (amounts are partially of) Tj ET Q q 0 0 0 rg BT 145.06 614.10 Td (fset by deemed dividend inclusions under the Subpart F tax rules, stock-based compensation not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (deductible for tax purposes and limitations on the deductibility of compensation under IRC Section 162\(m\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 582.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.63 582.10 Td (fective tax rate on income before income taxes for fiscal 2014 of 25.4% was lower than the statutory rate of 35.0%. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 Td (This was primarily due to dif) Tj ET Q q 0 0 0 rg BT 166.19 570.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (rates including South Korea and Singapore tax exemptions and the benefit of foreign tax credits. ) Tj ET Q q 0 0 0 rg BT 438.04 558.10 Td (These amounts are partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 546.10 Td (fset by deemed dividend inclusions under the Subpart F tax rules, stock-based compensation not deductible for tax purposes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (and limitations on the deductibility of compensation under IRC Section 162\(m\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 514.10 Td (During fiscal 2016, we increased our valuation allowance on deferred tax assets by $2.1 million to $17.6million primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (due to the increase in California and other states research and development tax credits which are not expected to be recognized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (During fiscal 2015, we increased our valuation allowance on deferred tax assets by $1.2 million to $15.6million primarily due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (to the reduced ability to utilize California and other states research and development tax credits. In making the determination to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (record the valuation allowance, management considered the likelihood of future taxable income and feasible and prudent tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (planning strategies to realize deferred tax assets. In the future, if we determine that we expect to realize deferred tax assets, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (adjustment to the valuation allowance will af) Tj ET Q q 0 0 0 rg BT 229.77 442.10 Td (fect income in the period such determination is made.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 422.10 Td (In October 2016, Coherent Singapore received an amended Pioneer Status tax exemption from the Singapore authorities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 410.10 Td (fective from fiscal 2012 through fiscal 2021. ) Tj ET Q q 0 0 0 rg BT 238.47 410.10 Td (The tax holiday continues to be conditional upon our meeting certain revenue, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (business spending and employment thresholds. ) Tj ET Q q 0 0 0 rg BT 240.36 398.10 Td (The impact of this tax exemption decreased Singapore income taxes by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (approximately $0.7 million in fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 220.90 386.10 Td (There are no tax benefits for fiscal 2015 and fiscal 2014 due to the utilization of net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (operating loss.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 106.12 342.10 Td ( CONDITION) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (Liquidity and capital resources) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 302.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.00 302.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.71 302.10 Td (, we had assets classified as cash and cash equivalents and short-term investments, in an aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.33 290.10 Td ($400.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.22 290.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.42 290.10 Td ($325.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.31 290.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.53 290.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.23 290.10 Td (. ) Tj ET Q q 0 0 0 rg BT 349.68 290.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.18 290.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.89 290.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 290.10 Td ($331.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.04 290.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (this cash and securities was held in certain of our foreign subsidiaries, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.42 278.10 Td ($93.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.31 278.10 Td ( of which was denominated in currencies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 150.54 266.10 Td (. ) Tj ET Q q 0 0 0 rg BT 154.99 266.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.49 266.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.19 266.10 Td (, we had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.55 266.10 Td ($313.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.44 266.10 Td ( of cash held by foreign subsidiaries where ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (we intend to permanently reinvest our accumulated earnings in these entities and our current plans do not demonstrate a need ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (for these funds to support our domestic operations. If, however) Tj ET Q q 0 0 0 rg BT 301.48 242.10 Td (, a portion of these funds are needed for and distributed to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (operations in the United States,we may be subject to additional U.S.income taxes and foreign withholding taxes. ) Tj ET Q q 0 0 0 rg BT 506.57 230.10 Td (An exception ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (to U.S. taxation may be the repatriation of foreign funds that had been previously taxed in the U.S. as Subpart F income. ) Tj ET Q q 0 0 0 rg BT 533.88 218.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (amount of the U.S. and foreign taxes due would depend on the amount and manner of repatriation, as well as the location from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (where the funds are repatriated. ) Tj ET Q q 0 0 0 rg BT 178.64 194.10 Td (W) Tj ET Q q 0 0 0 rg BT 187.28 194.10 Td (e actively monitor the third-party depository institutions that hold these assets, primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (focusing on the safety of principal and secondarily maximizing yield on these assets. ) Tj ET Q q 0 0 0 rg BT 391.40 182.10 Td (W) Tj ET Q q 0 0 0 rg BT 400.03 182.10 Td (e diversify our cash and cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (equivalents and investments among various financial institutions, money market funds, sovereign debt and other securities in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (order to reduce our exposure should any one of these financial institutions or financial instruments fail or encounter dif) Tj ET Q q 0 0 0 rg BT 525.79 158.10 Td (ficulties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 146.10 Td (o date, we have not experienced any material loss or lack of access to our invested cash, cash equivalents or short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (investments. However) Tj ET Q q 0 0 0 rg BT 139.02 134.10 Td (, we can provide no assurances that access to our invested cash, cash equivalents or short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (investments will not be impacted by adverse conditions in the financial markets. In the first quarter of fiscal 2017, we spent a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (significant portion of our foreign funds on the Rofin acquisition. ) Tj ET Q q 0 0 0 rg BT 310.05 110.10 Td (W) Tj ET Q q 0 0 0 rg BT 318.69 110.10 Td (e did not repatriate foreign funds to our domestic operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (to fund this acquisition. ) Tj ET Q q 0 0 0 rg BT 146.76 98.10 Td (W) Tj ET Q q 0 0 0 rg BT 155.40 98.10 Td (e expect to have adequate foreign funds in the future to service the acquisition debt and do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (anticipate any repatriation of foreign funds to operate our domestic business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 69.10 Td (In the second quarter of fiscal 2016, the first quarter of fiscal 2016, the second quarter of fiscal 2015 and the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 57.10 Td (quarter of fiscal 2014, we converted $22.6 million, $33.0 million, $42.3 million and $62.7 million, respectively) Tj ET Q q 0 0 0 rg BT 494.55 57.10 Td (, of cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 45.10 Td (securities heldin certain of our foreign subsidiaries to U.S. dollars and invested those funds within a European subsidiary ) Tj ET Q endstream endobj 107 0 obj <>] /Rotate 0 /Contents 108 0 R>> endobj 108 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (whose functional currency is the U.S. dollar) Tj ET Q q 0 0 0 rg BT 225.51 742.10 Td (. ) Tj ET Q q 0 0 0 rg BT 229.96 742.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.46 742.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.17 742.10 Td (, this subsidiary had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.66 742.10 Td ($226.8 million) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 448.55 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 451.05 742.10 Td (of U.S. dollar denominated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (investments primarily in money market funds and commercial paper) Tj ET Q q 0 0 0 rg BT 323.26 730.10 Td (. ) Tj ET Q q 0 0 0 rg BT 327.71 730.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 377.04 730.10 Td (, there is no translation expense arising from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (this entity holding U.S. dollar denominated investments. ) Tj ET Q q 0 0 0 rg BT 278.13 718.10 Td (The converted funds are not intended to be repatriated to the U.S. and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (no U.S. tax was triggered on the transfer of these funds to the European subsidiary) Tj ET Q q 0 0 0 rg BT 379.27 706.10 Td (. See ITEM 7A. QUANTIT) Tj ET Q q 0 0 0 rg BT 489.00 706.10 Td (A) Tj ET Q q 0 0 0 rg BT 495.11 706.10 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 519.83 706.10 Td (AND ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (QUALIT) Tj ET Q q 0 0 0 rg BT 86.41 694.10 Td (A) Tj ET Q q 0 0 0 rg BT 92.52 694.10 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 186.98 694.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 221.24 694.10 Td ( MARKET) Tj ET Q q 0 0 0 rg BT 265.78 694.10 Td ( RISK below for more information about risks and trends related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (foreign currencies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (Sour) Tj ET Q q 0 0 0 rg BT 70.38 662.10 Td (ces and Uses of Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 642.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 120.56 642.10 Td (, our primary source of cash has been provided by operations. Other sources of cash in the past three fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (years include proceeds received from the sale of our stock through our employee stock purchase plan as well as borrowings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (under our domestic line of credit. Our historical uses of cash have primarily been for the repurchase of our common stock, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (capital expenditures and acquisitions of businesses and technologies. Supplemental information pertaining to our historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (sources and uses of cash is presented as follows and should be read in conjunction with our Consolidated Statements of Cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (Flows and notes thereto \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 536.60 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 536.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 536.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 536.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 536.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 536.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 506.60 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 506.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 506.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 506.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 506.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 506.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 476.60 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 476.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 476.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 476.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 446.60 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 446.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 446.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 446.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 446.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 446.60 66.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 549.6 m 427.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 549.6 m 431.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 549.6 m 491.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 549.6 m 495.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 549.6 m 561.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 536.6 m 427.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 536.6 m 491.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 536.6 m 561.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 536.6 m 427.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 536.6 m 491.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 536.6 m 561.5 536.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 208.00 554.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.00 553.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 540.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.00 540.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 540.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.00 540.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 526.27 Td (Net cash provided by operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 526.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 526.27 Td (105,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.00 526.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 526.27 Td (124,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.00 526.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 526.27 Td (91,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 511.27 Td (Sales of shares under employee stock plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 511.27 Td (7,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 511.27 Td (7,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 511.27 Td (10,685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 496.27 Td (Repurchase of common stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 496.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.80 496.32 Td (\(75,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 496.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 496.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 481.27 Td (Capital expenditures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.80 481.32 Td (\(49,327) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.65 481.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.80 481.32 Td (\(22,163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 481.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 481.32 Td (\(23,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 481.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 466.27 Td (Acquisition of businesses, net of cash acquired) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 466.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.80 466.32 Td (\(9,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 466.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 466.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 451.27 Td (Short-term borrowings, net of repayments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 451.27 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 451.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 451.27 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 436.27 Td (Debt issuance costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.80 436.32 Td (\(5,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.65 436.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 436.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 436.27 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 412.10 Td (Net cash provided by operating activities decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.03 412.10 Td ($19.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.92 412.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.86 412.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.86 412.10 Td ( compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.71 412.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.71 412.10 Td ( and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.10 Td (by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 400.10 Td ($33.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.39 400.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.33 400.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.33 400.10 Td ( compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.18 400.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.18 400.10 Td (. ) Tj ET Q q 0 0 0 rg BT 277.00 400.10 Td (The decrease in cash provided by operating activities in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.35 400.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.35 400.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.10 Td (was primarily due to lower cash flows from the timing of shipments of lar) Tj ET Q q 0 0 0 rg BT 345.59 388.10 Td (ge systems from inventory and lower cash flows from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 376.10 Td (accounts receivable partially of) Tj ET Q q 0 0 0 rg BT 175.03 376.10 Td (fset by higher net income and higher accrued payroll and accounts payable balances. ) Tj ET Q q 0 0 0 rg BT 515.83 376.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 364.10 Td (increase in cash provided by operating activities in fiscal 2015 was primarily due to higher net income and higher cash flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td (from the timing of shipments of lar) Tj ET Q q 0 0 0 rg BT 190.35 352.10 Td (ge systems from inventory partially of) Tj ET Q q 0 0 0 rg BT 343.19 352.10 Td (fset by lower cash flows from prepaid income taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 340.10 Td (and accounts receivable. ) Tj ET Q q 0 0 0 rg BT 150.32 340.10 Td (W) Tj ET Q q 0 0 0 rg BT 158.96 340.10 Td (e believe that our existing cash, cash equivalents and short term investments combined with cash to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 328.10 Td (be provided by operating activities, amounts available under our revolving credit facility will be adequate to cover our working ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 316.10 Td (capital needs and planned capital expenditures for at least the next 12months to the extent such items are known or are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 304.10 Td (reasonably determinable based on current business and market conditions. However) Tj ET Q q 0 0 0 rg BT 385.61 304.10 Td (, we may elect to finance certain of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.10 Td (capital expenditure requirements through other sources of capital. ) Tj ET Q q 0 0 0 rg BT 315.00 292.10 Td (W) Tj ET Q q 0 0 0 rg BT 323.64 292.10 Td (e continue to follow our strategy to further strengthen our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (financial position by using available cash flow to fund operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 260.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 260.10 Td (e intend to continue pursuing acquisition opportunities at valuations we believe are reasonable based upon market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 248.10 Td (conditions. However) Tj ET Q q 0 0 0 rg BT 132.92 248.10 Td (, we cannot accurately predict the timing, size and success of our acquisition ef) Tj ET Q q 0 0 0 rg BT 449.01 248.10 Td (forts or our associated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 236.10 Td (potential capital commitments. Furthermore, we cannot assure you that we will be able to acquire businesses on terms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 224.10 Td (acceptable to us. ) Tj ET Q q 0 0 0 rg BT 118.68 224.10 Td (W) Tj ET Q q 0 0 0 rg BT 127.31 224.10 Td (e expect to fund future acquisitions through additional borrowings \(as in our acquisition of Rofin\), existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 212.10 Td (cash balances and cash flows from operations. If required, we will consider the issuance of securities. ) Tj ET Q q 0 0 0 rg BT 458.29 212.10 Td (The extent to which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 200.10 Td (will be willing or able to use our common stock to make acquisitions will depend on its market value at the time and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 188.10 Td (willingness of potential sellers to accept it as full or partial payment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 168.10 Td (On November7, 2016, we entered into a Credit ) Tj ET Q q 0 0 0 rg BT 264.45 168.10 Td (Agreement by and among us, Coherent Holding GmbH, as borrower \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 156.10 Td (Borrower\), and certain of our direct and indirect subsidiaries from time to time party thereto, as guarantors, the lenders from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 144.10 Td (time to time party thereto, Barclays Bank PLC, as administrative agent and L/C Issuer) Tj ET Q q 0 0 0 rg BT 394.24 144.10 Td (, Bank of ) Tj ET Q q 0 0 0 rg BT 433.13 144.10 Td (America, N.A., as L/C Issuer) Tj ET Q q 0 0 0 rg BT 549.36 144.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 132.10 Td (and ) Tj ET Q q 0 0 0 rg BT 66.76 132.10 Td (The Bank of ) Tj ET Q q 0 0 0 rg BT 119.06 132.10 Td (T) Tj ET Q q 0 0 0 rg BT 124.47 132.10 Td (okyo-Mitsubishi UFJ, Ltd., as L/C Issuer) Tj ET Q q 0 0 0 rg BT 288.37 132.10 Td (.) Tj ET Q q 0 0 0 rg BT 293.19 132.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 338.18 132.10 Td (Agreement provided for a 670.0 million Euro senior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 120.10 Td (secured term loan facility \(the Euro ) Tj ET Q q 0 0 0 rg BT 198.64 120.10 Td (T) Tj ET Q q 0 0 0 rg BT 204.05 120.10 Td (erm Loan\) and a $100.0 million senior secured revolving credit facility \(Revolving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 108.10 Td (Credit Facility\) with a $30.0 million letter of credit sublimit and $10.0 million swing line sublimit. ) Tj ET Q q 0 0 0 rg BT 451.16 108.10 Td (W) Tj ET Q q 0 0 0 rg BT 459.80 108.10 Td (e may increase the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 96.10 Td (aggregate revolving commitments or borrow incremental term loans in an aggregate principal amount of up to $150.0 million, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 84.10 Td (subject to certain conditions, including obtaining additional commitments from the lenders then party to the Credit ) Tj ET Q q 0 0 0 rg BT 510.18 84.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 72.10 Td (or new lenders. On November7, 2016, we borrowed the full 670.0 million Euro under the Euro ) Tj ET Q q 0 0 0 rg BT 434.45 72.10 Td (T) Tj ET Q q 0 0 0 rg BT 439.86 72.10 Td (erm Loan and its proceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 60.10 Td (were used to finance the acquisition of Rofin and pay related fees and expenses. ) Tj ET Q q 0 0 0 rg BT 371.83 60.10 Td (Also, on November7, 2016, we used 10.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 48.10 Td (million Euro of the $100.0 million capacity under the Revolving Credit Facility for the issuance of a letter of credit; the ) Tj ET Q endstream endobj 109 0 obj <>] /Rotate 0 /Contents 110 0 R>> endobj 110 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (remainder of the Revolving Credit Facility is available. ) Tj ET Q q 0 0 0 rg BT 273.37 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 282.01 742.10 Td (e expect to use future loans under the Revolving Credit Facility) Tj ET Q q 0 0 0 rg BT 535.18 742.10 Td (, if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (any) Tj ET Q q 0 0 0 rg BT 63.79 730.10 Td (, for general corporate purposes. ) Tj ET Q q 0 0 0 rg BT 195.50 730.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 240.49 730.10 Td (Agreement replaces our existing $50.0 million Credit ) Tj ET Q q 0 0 0 rg BT 456.00 730.10 Td (Agreement with Union ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (Bank of California. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 698.10 Td (Loans under the Credit ) Tj ET Q q 0 0 0 rg BT 165.87 698.10 Td (Agreement bear interest, at the Borrower) Tj ET Q q 0 0 0 rg BT 330.06 698.10 Td () Tj ET Q q 0 0 0 rg BT 332.83 698.10 Td (s option, at a rate equal to either \(i\) the London interbank ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 686.10 Td (fered rate \(the Eurocurrency Rate\) or \(ii\) a base rate \(the Base Rate\) equal to the highest of \(x\) the federal funds rate, plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (0.50%, \(y\) the prime rate then in ef) Tj ET Q q 0 0 0 rg BT 190.60 674.10 Td (fect and \(z\) the Eurocurrency Rate for loans denominated in U.S. dollars applicable to a one-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (month interest period, plus 1.0%, in each case, plus an applicable mar) Tj ET Q q 0 0 0 rg BT 328.90 662.10 Td (gin. ) Tj ET Q q 0 0 0 rg BT 346.50 662.10 Td (The applicable mar) Tj ET Q q 0 0 0 rg BT 423.50 662.10 Td (gin for term loans borrowed as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (Eurocurrency Rate loans, is 3.50% initially) Tj ET Q q 0 0 0 rg BT 221.81 650.10 Td (, and following the first anniversary of the Closing Date ranges from 3.00% to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (3.50% depending on the consolidated total gross leverage ratio at the time of determination. For term loans borrowed as Base ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (Rate Loans, the applicable mar) Tj ET Q q 0 0 0 rg BT 173.94 626.10 Td (gin initially is 2.50%, and following the first anniversary of the Closing Date ranges from 2.00% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (to 2.50% depending upon the consolidated total gross leverage ratio at the time of determination. ) Tj ET Q q 0 0 0 rg BT 439.99 614.10 Td (The applicable mar) Tj ET Q q 0 0 0 rg BT 516.99 614.10 Td (gin for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (revolving loans borrowed as Eurocurrency Rate Loans, ranges from 3.75% to 4.25%, and for revolving loans borrowed as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (Base Rate Loans, ranges from 2.75% to 3.25%, in each case, based on the consolidated total gross leverage ratio at the time of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (determination. Interest on Base Rate Loans is payable quarterly in arrears. Interest on Eurocurrency Rate Loans is payable at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (the end of the applicable interest period. Interest periods for Eurocurrency Rate loans may be, at the Borrower) Tj ET Q q 0 0 0 rg BT 492.98 566.10 Td () Tj ET Q q 0 0 0 rg BT 495.76 566.10 Td (s option, one, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (two, three or six months. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 534.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 116.99 534.10 Td (Agreement requires the Borrower to make scheduled quarterly payments on the Euro ) Tj ET Q q 0 0 0 rg BT 459.47 534.10 Td (T) Tj ET Q q 0 0 0 rg BT 464.88 534.10 Td (erm Loan of 0.25% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (the original principal amount of the Euro ) Tj ET Q q 0 0 0 rg BT 216.16 522.10 Td (T) Tj ET Q q 0 0 0 rg BT 221.57 522.10 Td (erm Loan, with any remaining principal payable at maturity) Tj ET Q q 0 0 0 rg BT 460.01 522.10 Td (. ) Tj ET Q q 0 0 0 rg BT 464.46 522.10 Td (A) Tj ET Q q 0 0 0 rg BT 471.13 522.10 Td ( commitment fee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (accrues on any unused portion of the revolving loan commitments under the Credit ) Tj ET Q q 0 0 0 rg BT 384.09 510.10 Td (Agreement at a rate of 0.375% or 0.5% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (depending on the consolidated total gross leverage ratio at any time of determination. ) Tj ET Q q 0 0 0 rg BT 393.60 498.10 Td (The Borrower is also obligated to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (other customary fees for a credit facility of this size and type. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 466.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 116.99 466.10 Td (Agreement contains customary af) Tj ET Q q 0 0 0 rg BT 251.48 466.10 Td (firmative covenants, including covenants regarding the payment of taxes and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (other obligations, maintenance of insurance, reporting requirements and compliance with applicable laws and regulations, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (negative covenants, including covenants limiting the ability of us and our subsidiaries to, among other things, incur debt, grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (liens, make investments, make certain restricted payments, transact with af) Tj ET Q q 0 0 0 rg BT 349.16 430.10 Td (filiates, and sell assets.) Tj ET Q q 0 0 0 rg BT 442.85 430.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 487.84 430.10 Td (Agreement also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (requires us and our subsidiaries to maintain a senior secured net leverage ratio as of the last day of each fiscal quarter of less of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (than or equal to 3.50 to 1.00. ) Tj ET Q q 0 0 0 rg BT 167.58 406.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 212.57 406.10 Td (Agreement contains customary events of default that include, among other things, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (payment defaults, cross defaults with certain other indebtedness, violation of covenants, inaccuracy of representations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (warranties in any material respect, change in control of us and the Borrower) Tj ET Q q 0 0 0 rg BT 353.65 382.10 Td (, judgment defaults, and bankruptcy and insolvency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (events. If an event of default exists, the lenders may require the immediate payment of all Obligations, as defined in the Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (Agreement, and may exercise certain other rights and remedies provided for under the Credit ) Tj ET Q q 0 0 0 rg BT 424.03 358.10 Td (Agreement, the other loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (documents and applicable law) Tj ET Q q 0 0 0 rg BT 170.14 346.10 Td (. ) Tj ET Q q 0 0 0 rg BT 174.96 346.10 Td (The acceleration of such obligations is automatic upon the occurrence of a bankruptcy and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (insolvency event of default.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 314.10 Td (The aggregate consideration paid by us to the former Rofin stockholders was approximately $904.5 million, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (related transaction fees and expenses. ) Tj ET Q q 0 0 0 rg BT 202.53 302.10 Td (W) Tj ET Q q 0 0 0 rg BT 211.17 302.10 Td (e also paid $15.3 million due to the cancellation of options held by employees of Rofin. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 282.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 282.10 Td (e paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.79 282.10 Td ($5.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.68 282.10 Td ( of debt issuance costs in fiscal 2016 and expect to pay approximately $25.0 million to $30.0 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 Td (of debt issuance costs in the first quarter of fiscal 2017. In the fourth quarter of fiscal 2016, and the first quarter of fiscal 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (we recorded an interest char) Tj ET Q q 0 0 0 rg BT 162.53 258.10 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.30 258.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.19 258.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.63 258.10 Td ($2.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.52 258.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 355.19 258.10 Td (, in other income \(expense\) in our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.10 Td (statement of operations related to the debt financing commitment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 226.10 Td (In relation to the acquisition of Rofin, we paid Barclays, our financial advisor) Tj ET Q q 0 0 0 rg BT 382.57 226.10 Td (, a fee of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.30 226.10 Td ($9.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.19 226.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.19 226.10 Td ($1.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 214.10 Td ( of which was paid upon delivery of the fairness opinion in the second quarter of fiscal 2016, and was recorded as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (SG&A) Tj ET Q q 0 0 0 rg BT 77.23 202.10 Td ( expense, and the remaining portion of which was paid upon consummation of the acquisition in the first quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 170.10 Td (Additional sources of cash available to us were domestic and international currency lines of credit and bank credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (facilities totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.98 158.10 Td ($63.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.87 158.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.03 158.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.74 158.10 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.51 158.10 Td ($40.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.40 158.10 Td ( was unused and available. ) Tj ET Q q 0 0 0 rg BT 468.63 158.10 Td (These unsecured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (international credit facilities were used in Europe and Japan during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.61 146.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.61 146.10 Td (. ) Tj ET Q q 0 0 0 rg BT 369.06 146.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.51 146.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.21 146.10 Td (, we had utilized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 146.10 Td ($1.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 134.10 Td ( of the international credit facilities as guarantees. Our domestic line of credit consisted of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.48 134.10 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.37 134.10 Td ( unsecured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (revolving credit account, under which we had drawn ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.98 122.10 Td ($20.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.87 122.10 Td ( and used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.14 122.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.03 122.10 Td ( for letters of credit as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.38 122.10 Td (October1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 110.10 Td (. On November 4, 2016, we repaid the outstanding balance, plus accrued interest, on our domestic line of credit and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (terminated the credit facility) Tj ET Q q 0 0 0 rg BT 162.91 98.10 Td (. ) Tj ET Q endstream endobj 111 0 obj <>] /Rotate 0 /Contents 112 0 R>> endobj 112 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 742.10 Td (In fiscal 2015, under plans authorized by the Board of Directors, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.75 742.10 Td (1,302,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.75 742.10 Td ( shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (outstanding common stock at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.82 730.10 Td ($57.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.32 730.10 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.89 730.10 Td ($75.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.78 730.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 710.10 Td (Our ratio of current assets to current liabilities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.21 710.10 Td (4.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.71 710.10 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.71 710.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.42 710.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.62 710.10 Td (5.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.12 710.10 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.11 710.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.82 710.10 Td (. ) Tj ET Q q 0 0 0 rg BT 535.64 710.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (decrease in our ratio is primarily due to increases in other current liabilities, short-term borrowings, taxes payable and accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (payable partially of) Tj ET Q q 0 0 0 rg BT 127.56 686.10 Td (fset by increases in cash and short-term investments, inventories, accounts receivable and prepaid expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (and other assets. Our cash and cash equivalents, short-term investments and working capital are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 628.60 365.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 628.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 628.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 628.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 598.60 365.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 598.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 598.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 598.60 61.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 641.6 m 486 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 641.6 m 490 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 641.6 m 551 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 628.6 m 486 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 628.6 m 551 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 628.6 m 486 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 628.6 m 551 628.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 646.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.50 645.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 62.50 632.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.00 632.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.00 632.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 618.27 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.50 618.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 618.27 Td (354,347) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 618.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 618.27 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 603.27 Td (Short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.65 603.27 Td (45,606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 603.27 Td (194,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 588.27 Td (Working capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 588.27 Td (614,145) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 588.27 Td (530,093) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 564.10 Td (Contractual Obligations and Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 254.17 564.10 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 544.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 544.10 Td (e have no of) Tj ET Q q 0 0 0 rg BT 131.60 544.10 Td (f-balance sheet arrangements as defined by RegulationS-K of the Securities ) Tj ET Q q 0 0 0 rg BT 438.44 544.10 Td (Act of 1933. ) Tj ET Q q 0 0 0 rg BT 491.03 544.10 Td (The following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 532.10 Td (summarizes our contractual obligations at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.67 532.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.38 532.10 Td ( and the ef) Tj ET Q q 0 0 0 rg BT 326.12 532.10 Td (fect such obligations are expected to have on our liquidity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 520.10 Td (and cash flow in future periods \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 63.00 481.60 164.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 481.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 481.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 481.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 481.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 481.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 63.00 453.60 164.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 453.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 453.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 453.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 453.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 453.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 453.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 453.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 453.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 453.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 63.00 425.60 164.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 425.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 425.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 425.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 425.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 425.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 425.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 425.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 425.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 425.60 61.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 481.6 m 282 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 481.6 m 343 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 481.6 m 413 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 481.6 m 483 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 481.6 m 548 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 425.6 m 282 425.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 412.6 m 282 412.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 410.6 m 282 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 425.6 m 343 425.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 412.6 m 343 412.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 410.6 m 343 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 425.6 m 413 425.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 412.6 m 413 412.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 410.6 m 413 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 425.6 m 483 425.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 412.6 m 483 412.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 410.6 m 483 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 425.6 m 548 425.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 412.6 m 548 412.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 410.6 m 548 410.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 245.25 485.83 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.65 493.68 Td (Less than) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 303.50 485.68 Td (1year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.05 485.83 Td (1 to 3years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.05 485.83 Td (3 to 5years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.95 493.68 Td (Mor) Tj ET Q q 0 0 0 rg BT 513.91 493.68 Td (e than) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.85 485.68 Td (5years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 472.17 Td (Operating lease payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.50 472.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.65 472.17 Td (39,854) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.50 472.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 472.17 Td (11,548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 472.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 472.17 Td (15,470) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 472.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 472.17 Td (7,711) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 472.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 472.17 Td (5,125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 458.17 Td (Asset retirement obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.65 458.17 Td (3,086) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 458.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 458.17 Td (1,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 458.17 Td (101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 458.17 Td (1,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 444.17 Td (Purchase commitments for inventory) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.65 444.17 Td (73,736) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 444.17 Td (73,721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 444.17 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 444.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 444.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 430.17 Td (Purchase obligations-other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.65 430.17 Td (12,165) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 430.17 Td (10,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 430.17 Td (1,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 430.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 430.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 416.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.50 416.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.65 416.17 Td (128,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.50 416.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 416.17 Td (96,115) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 416.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 416.17 Td (18,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 416.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 416.17 Td (7,812) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 416.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 416.17 Td (6,197) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 392.10 Td (Because of the uncertainty as to the timing of such payments, we have excluded cash payments related to our contractual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 380.10 Td (obligations for our deferred compensation plans aggregating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.09 380.10 Td ($30.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.98 380.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.20 380.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.91 380.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 360.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.44 360.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.15 360.10 Td (, we recorded gross unrecognized tax benefits of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.46 360.10 Td ($20.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.36 360.10 Td ( including gross interest and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 348.10 Td (penalties of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.87 348.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.76 348.10 Td (. ) Tj ET Q q 0 0 0 rg BT 152.21 348.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.66 348.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.36 348.10 Td (, we recorded gross unrecognized tax benefits of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.68 348.10 Td ($24.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.57 348.10 Td ( including gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 336.10 Td (interest and penalties of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.74 336.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.64 336.10 Td (. Both gross unrecognized tax benefits and gross interest and penalties are classified as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 324.10 Td (non-current liabilities in the consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 274.93 324.10 Td (At this time, we are unable to make a reasonably reliable estimate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 312.10 Td (the timing of payments in individual years due to uncertainties in the timing of tax audit outcomes. ) Tj ET Q q 0 0 0 rg BT 447.14 312.10 Td (As a result, these amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 300.10 Td (are not included in the table above.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (Changes in financial condition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 260.10 Td (Cash provided by operating activities in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.34 260.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.34 260.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.89 260.10 Td ($105.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.79 260.10 Td (, which included net income of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.14 260.10 Td ($87.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.03 260.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 248.10 Td (depreciation and amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.72 248.10 Td ($34.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.62 248.10 Td (, stock-based compensation expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.90 248.10 Td ($20.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.79 248.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.23 248.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.12 248.10 Td ( other) Tj ET Q q 0 0 0 rg BT 539.77 248.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 236.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 236.10 Td (fset by cash used by operating assets and liabilities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.59 236.10 Td ($27.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.48 236.10 Td ( \(primarily increases in inventories net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 224.10 Td (increases in accrued payroll and deferred income\) and increases in net deferred tax assets of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.10 224.10 Td ($9.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.99 224.10 Td (. Cash provided by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 212.10 Td (operating activities in fiscal 2015 was $124.5 million, which included net income of $76.4 million, depreciation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 200.10 Td (amortization of $33.1 million, stock-based compensation expense of $18.2 million, the impairment of our investment in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 188.10 Td (SiOnyx of $2.0 million, decreases in net deferred tax assets of $0.8 million and $0.6 million other) Tj ET Q q 0 0 0 rg BT 440.63 188.10 Td (, partially of) Tj ET Q q 0 0 0 rg BT 489.60 188.10 Td (fset by cash used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 176.10 Td (by operating assets and liabilities of $5.3 million and the net ef) Tj ET Q q 0 0 0 rg BT 301.43 176.10 Td (fect of the gain from acquisition of ) Tj ET Q q 0 0 0 rg BT 443.15 176.10 Td (T) Tj ET Q q 0 0 0 rg BT 448.91 176.10 Td (insley asset of $1.3 million. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 156.10 Td (Cash provided by investing activities in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.24 156.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.24 156.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.57 156.10 Td ($103.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.47 156.10 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.90 156.10 Td ($152.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.79 156.10 Td ( net sales and maturities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 144.10 Td (available-for) Tj ET Q q 0 0 0 rg BT 100.88 144.10 Td (-sale securities partially of) Tj ET Q q 0 0 0 rg BT 206.49 144.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.93 144.10 Td ($48.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.82 144.10 Td (, net, used to acquire property and equipment, purchase and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 132.10 Td (upgrade buildings, net of proceeds from dispositions. Cash provided by investing activities in fiscal 2015 of $3.2 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 120.10 Td (included $33.5 million net sales and maturities of available-for) Tj ET Q q 0 0 0 rg BT 301.12 120.10 Td (-sale securities partially of) Tj ET Q q 0 0 0 rg BT 406.73 120.10 Td (fset by $21.0 million, net, used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 108.10 Td (acquire property and equipment and improve buildings net of proceeds from dispositions and $9.3 million used to acquire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 96.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.76 96.10 Td (insley and Raydiance assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 76.10 Td (Cash provided by financing activities in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.34 76.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.34 76.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.89 76.10 Td ($17.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.79 76.10 Td (, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.66 76.10 Td ($20.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.55 76.10 Td ( net borrowings, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.10 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 64.10 Td ( generated from our employee stock option and purchase plans partially of) Tj ET Q q 0 0 0 rg BT 396.11 64.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.55 64.10 Td ($5.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.44 64.10 Td ( outflows due to net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 52.10 Td (settlement of restricted stock and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.68 52.10 Td ($5.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.57 52.10 Td ( of debt issuance costs. Cash used in financing activities in fiscal 2015 was $73.0 ) Tj ET Q endstream endobj 113 0 obj <>] /Rotate 0 /Contents 114 0 R>> endobj 114 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (million, which included $75.0 million repurchases of common stock and $5.3 million outflows due to net settlement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (restricted stock partially of) Tj ET Q q 0 0 0 rg BT 157.28 730.10 Td (fset by $7.3 million generated from our employee stock option and purchase plans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 710.10 Td (Changes in exchange rates in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.28 710.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.28 710.10 Td ( resulted in a decrease in cash balances of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.37 710.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.26 710.10 Td (. Changes in exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (rates in fiscal 2015 resulted in a decrease in cash balances of $15.2 million.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 678.10 Td (RECENT) Tj ET Q q 0 0 0 rg BT 91.49 678.10 Td ( ) Tj ET Q q 0 0 0 rg BT 93.44 678.10 Td (ACCOUNTING PRONOUNCEMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 658.10 Td (See Note2. "Significant ) Tj ET Q q 0 0 0 rg BT 172.79 658.10 Td (Accounting Policies" in the Notes to Consolidated Financial Statements for a full description of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (recent accounting pronouncements, including the respective dates of adoption or expected adoption and ef) Tj ET Q q 0 0 0 rg BT 474.67 646.10 Td (fects on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (consolidated financial position, results of operations and cash flows.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 93.70 610.10 Td (TION OF) Tj ET Q q 0 0 0 rg BT 135.28 610.10 Td ( CRITICAL) Tj ET Q q 0 0 0 rg BT 187.24 610.10 Td ( ) Tj ET Q q 0 0 0 rg BT 189.18 610.10 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 590.10 Td (Our discussion and analysis of financial condition and results of operations are based upon our consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (statements, which have been prepared in accordance with accounting principles generally accepted in the United States of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (America and pursuant to the rules and regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 300.31 566.10 Td (The preparation of these financial statements requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 271.70 554.10 Td (fect the reported amounts of assets and liabilities and disclosure of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (during the reporting period. ) Tj ET Q q 0 0 0 rg BT 162.85 530.10 Td (W) Tj ET Q q 0 0 0 rg BT 171.48 530.10 Td (e have identified the following as the items that require the most significant judgment and often ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (involve complex estimation: revenue recognition, accounting for long-lived assets \(including goodwill and intangible assets\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.10 Td (inventory valuation, warranty reserves, stock-based compensation and accounting for income taxes.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 466.10 Td (e recognize revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (exists, the product has been delivered or the service has been rendered, the price is fixed or determinable and collection is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (probable. Revenue from product sales is recorded when all of the foregoing conditions are met and risk of loss and title passes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (to the customer) Tj ET Q q 0 0 0 rg BT 111.10 430.10 Td (. Our products typically include a warranty and the estimated cost of product warranty claims \(based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (historical experience\) is recorded at the time the sale is recognized. Sales to customers are generally not subject to any price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (protection or return rights.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 386.10 Td (The majority of our sales are made to original equipment manufacturers \("OEMs"\), distributors, representatives and end-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (users in the non-scientific market. Sales made to these customers do not require installation of the products by us and are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (subject to other post-delivery obligations, except in occasional instances where we have agreed to perform installation or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (provide training. In those instances, we defer revenue related to installation services or training until these services have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (rendered. ) Tj ET Q q 0 0 0 rg BT 89.79 338.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.43 338.10 Td (e allocate revenue from multiple element arrangements to the various elements based upon fair values or a selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (price hierarchy) Tj ET Q q 0 0 0 rg BT 109.59 326.10 Td (, as more fully described in Note 2, "Significant ) Tj ET Q q 0 0 0 rg BT 302.80 326.10 Td (Accounting Policies - Revenue Recognition," in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 294.10 Td (Should changes in conditions cause management to determine these criteria are not met for certain future transactions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (revenue recognized for any reporting period could be adversely af) Tj ET Q q 0 0 0 rg BT 313.87 282.10 Td (fected. Failure to obtain anticipated orders due to delays or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 Td (cancellations of orders could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 271.93 270.10 Td (fect on our revenue. In addition, pressures from customers to reduce our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (prices or to modify our existing sales terms may have a material adverse ef) Tj ET Q q 0 0 0 rg BT 349.44 258.10 Td (fect on our revenue in future periods.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 238.10 Td (Our sales to distributors, representatives and end-user customers typically do not have customer acceptance provisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (and only certain of our sales to OEM customers and integrators have customer acceptance provisions. Customer acceptance is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (generally limited to performance under our published product specifications. For the few product sales that have customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (acceptance provisions because of higher than published specifications, \(1\)the products are tested and accepted by the customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (at our site or the customer accepts the results of our testing program prior to shipment to the customer) Tj ET Q q 0 0 0 rg BT 456.72 190.10 Td (, or \(2\)the revenue is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (deferred until customer acceptance occurs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 158.10 Td (Sales to end-users in the scientific market typically require installation and, thus, involve post-delivery obligations; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (however our post-delivery installation obligations are not essential to the functionality of our products. ) Tj ET Q q 0 0 0 rg BT 463.33 146.10 Td (W) Tj ET Q q 0 0 0 rg BT 471.97 146.10 Td (e defer revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (related to installation services until completion of these services.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 114.10 Td (For most products, training is not provided; therefore, no post-delivery training obligation exists. However) Tj ET Q q 0 0 0 rg BT 500.19 114.10 Td (, when training ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (is provided to our customers, it is typically priced separately and recognized as revenue as these services are provided.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 82.10 Td (For multiple element arrangements which include extended maintenance contracts, we allocate and defer the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (consideration equal to the separately stated price and recognize revenue on a straight-line basis over the contract period.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td (Long-Lived ) Tj ET Q q 0 0 0 rg BT 99.89 50.10 Td (Assets and Goodwill) Tj ET Q endstream endobj 115 0 obj <>] /Rotate 0 /Contents 116 0 R>> endobj 116 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 742.10 Td (e evaluate long-lived assets and amortizable intangible assets whenever events or changes in business circumstances or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (our planned use of assets indicate that their carrying amounts may not be fully recoverable or that their useful lives are no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (longer appropriate. Reviews are performed to determine whether the carrying values of the assets are impaired based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (comparison to the undiscounted expected future cash flows identifiable to such long-lived and amortizable intangible assets. If ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (the comparison indicates that impairment exists, the impaired asset is written down to its fair value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 674.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 674.10 Td (e have determined that our reporting units are the same as our operating segments as each constitutes a business for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (which discrete financial information is available and for which segment management regularly reviews the operating results. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 650.10 Td (e make this determination in a manner consistent with how the operating segments are managed. Based on this analysis, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (have identified two reporting units which are our reportable segments: SLS and CLC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 618.10 Td (Goodwill is tested for impairment on an annual basis and between annual tests in certain circumstances, and written down ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (when impaired \(see Note7 "Goodwill and Intangible ) Tj ET Q q 0 0 0 rg BT 264.03 606.10 Td (Assets" in the Notes to Consolidated Financial Statements\). ) Tj ET Q q 0 0 0 rg BT 504.84 606.10 Td (W) Tj ET Q q 0 0 0 rg BT 513.48 606.10 Td (e generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (perform our annual impairment tests during the fourth quarter of each fiscal year using the opening balance sheet as of the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (day of the fourth fiscal quarter) Tj ET Q q 0 0 0 rg BT 171.49 582.10 Td (, with any resulting impairment recorded in the fourth quarter of the fiscal year) Tj ET Q q 0 0 0 rg BT 486.39 582.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 562.10 Td (In fiscal 2014, 2015 and 2016, we conducted a qualitative assessment of the goodwill in the SLS reporting unit during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (fourth quarter of each fiscal year using the opening balance sheet as of the first day of the fourth quarter and concluded that it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (was more likely than not that the fair value of the reporting unit exceeded its carrying amount. In assessing the qualitative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (factors, we considered the impact of these key factors: macroeconomic conditions, fluctuations in foreign currency) Tj ET Q q 0 0 0 rg BT 508.63 526.10 Td (, market and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (industry conditions, our operating and competitive environment, regulatory and political developments, the overall financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (performance of our reporting units including cost factors and budgeted-to-actual revenue results. ) Tj ET Q q 0 0 0 rg BT 438.85 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 447.49 502.10 Td (e also considered our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (market capitalization, stock price performance and the significant excess calculated in the prior year between estimated fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (value and the carrying value of SLS. Based on our assessment, goodwill in the SLS reporting unit was not impaired as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (first day of the fourth quarter of fiscal 2014, 2015 or 2016. ) Tj ET Q q 0 0 0 rg BT 286.61 466.10 Td (As such, it was not necessary to perform the two-step goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (impairment test at that time in any of those fiscal years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 434.10 Td (For our CLC reporting unit we elected to bypass the qualitative assessment in fiscal 2014, 2015 and 2016 and proceeded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (directly to performing the first step of goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 292.17 422.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 341.51 422.10 Td (, we performed the Step 1 test during the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (quarter of fiscal 2016, 2015 and 2014. ) Tj ET Q q 0 0 0 rg BT 205.06 410.10 Td (W) Tj ET Q q 0 0 0 rg BT 213.70 410.10 Td (e determined the fair value of the reporting unit for the Step 1 test using a 50-50% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (weighting of the Income \(discounted cash flow\) approach and Market \(market comparable\) approach. ) Tj ET Q q 0 0 0 rg BT 459.10 398.10 Td (The Income approach ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (utilizes the discounted cash flow model to provide an estimation of fair value based on the cash flows that a business expects to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (generate. ) Tj ET Q q 0 0 0 rg BT 88.68 374.10 Td (These cash flows are based on forecasts developed internally by management which are then discounted at an after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (tax rate of return required by equity and debt market participants of a business enterprise. ) Tj ET Q q 0 0 0 rg BT 409.69 362.10 Td (This rate of return or cost of capital is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (weighted based on the capitalization of comparable companies. ) Tj ET Q q 0 0 0 rg BT 305.56 350.10 Td (The Market approach determines fair value by comparing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (reporting units to comparable companies in similar lines of business that are publicly traded. ) Tj ET Q q 0 0 0 rg BT 422.23 338.10 Td (T) Tj ET Q q 0 0 0 rg BT 427.64 338.10 Td (otal Enterprise ) Tj ET Q q 0 0 0 rg BT 488.54 338.10 Td (V) Tj ET Q q 0 0 0 rg BT 494.66 338.10 Td (alue \(TEV\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (multiples such as ) Tj ET Q q 0 0 0 rg BT 121.20 326.10 Td (TEV) Tj ET Q q 0 0 0 rg BT 140.46 326.10 Td ( to revenues and ) Tj ET Q q 0 0 0 rg BT 208.03 326.10 Td (TEV) Tj ET Q q 0 0 0 rg BT 227.29 326.10 Td ( to earnings \(if applicable\) before interest and taxes of the publicly traded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (companies are calculated. ) Tj ET Q q 0 0 0 rg BT 155.32 314.10 Td (These multiples are then applied to the reporting unit's operating results to obtain an estimate of fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (value. Each of these two approaches captures aspects of value in each reporting unit. ) Tj ET Q q 0 0 0 rg BT 390.80 302.10 Td (The Income approach captures our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (expected future performance, and the Market approach captures how investors view the reporting units through other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (competitors. ) Tj ET Q q 0 0 0 rg BT 102.03 278.10 Td (W) Tj ET Q q 0 0 0 rg BT 110.67 278.10 Td (e believe these valuation approaches are proven valuation techniques and methodologies for our industry and are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (widely accepted by investors. ) Tj ET Q q 0 0 0 rg BT 170.24 266.10 Td (As neither was perceived by us to deliver any greater indication of value than the other) Tj ET Q q 0 0 0 rg BT 517.22 266.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (neither approach individually computed a fair value less than the carrying value of the segment, we weighted each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (approaches equally) Tj ET Q q 0 0 0 rg BT 126.26 242.10 Td (. Management completed and reviewed the results of the Step 1 analysis and concluded that a Step 2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (analysis was not required as the estimated fair value of the CLC reporting unit was substantially in excess of its carrying value. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (Between the completion of that testing and the end of the fourth quarter of fiscal 2016, we noted no indications of impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (or triggering events for either reporting unit to cause us to review goodwill for potential impairment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 186.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.00 186.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.71 186.10 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.81 186.10 Td ($101.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.70 186.10 Td ( of goodwill \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.41 186.10 Td ($95.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.31 186.10 Td ( SLS and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.48 186.10 Td ($6.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.37 186.10 Td ( in CLC\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.92 186.10 Td ($13.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.82 186.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (purchased intangible assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.30 174.10 Td ($127.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.19 174.10 Td ( of property and equipment on our consolidated balance sheet. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (Inventory V) Tj ET Q q 0 0 0 rg BT 98.06 154.10 Td (aluation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 134.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 134.10 Td (e record our inventory at the lower of cost \(computed on a first-in, first-out basis\) or market. ) Tj ET Q q 0 0 0 rg BT 454.29 134.10 Td (W) Tj ET Q q 0 0 0 rg BT 462.93 134.10 Td (e write-down our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (inventory to its estimated market value based on assumptions about future demand and market conditions. Inventory write-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (downs are generally recorded within guidelines set by management when the inventory for a device exceeds 12months of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (demand or when management has deemed parts are no longer active or useful. If actual market conditions are less favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (than those projected by management, additional inventory write-downs may be required which could materially af) Tj ET Q q 0 0 0 rg BT 507.17 86.10 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (future results of operations. Due to rapidly changing forecasts and orders, additional write-downs for excess or obsolete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (inventory) Tj ET Q q 0 0 0 rg BT 87.68 62.10 Td (, while not currently expected, could be required in the future. In the event that alternative future uses of fully written ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td (down inventories are identified, we may experience better than normal profit mar) Tj ET Q q 0 0 0 rg BT 375.25 50.10 Td (gins when such inventory is sold. Dif) Tj ET Q q 0 0 0 rg BT 524.22 50.10 Td (ferences ) Tj ET Q endstream endobj 117 0 obj <>] /Rotate 0 /Contents 118 0 R>> endobj 118 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (between actual results and previous estimates of excess and obsolete inventory could materially af) Tj ET Q q 0 0 0 rg BT 442.74 742.10 Td (fect our future results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (operations. ) Tj ET Q q 0 0 0 rg BT 96.47 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 105.11 730.10 Td (e write-down our demo inventory by amortizing the cost of demo inventory over a twenty month period starting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (from the fourth month after such inventory is placed in service.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 698.10 Td (arranty Reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 678.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 678.10 Td (e provide warranties on the majority of our product sales and allowances for estimated warranty costs are recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 Td (during the period of sale. ) Tj ET Q q 0 0 0 rg BT 152.57 666.10 Td (The determination of such allowances requires us to make estimates of product return rates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 Td (expected costs to repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 300.63 654.10 Td (. ) Tj ET Q q 0 0 0 rg BT 305.45 654.10 Td (W) Tj ET Q q 0 0 0 rg BT 314.09 654.10 Td (e currently establish warranty reserves based on historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 Td (warranty costs for each product line. ) Tj ET Q q 0 0 0 rg BT 198.37 642.10 Td (The weighted average warranty period covered is approximately ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.9333333333333333 0.15294117647058825 0.1411764705882353 rg BT 458.82 642.10 Td (15months) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 500.77 642.10 Td (. If actual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (return rates and/or repair and replacement costs dif) Tj ET Q q 0 0 0 rg BT 253.34 630.10 Td (fer significantly from our estimates, adjustments to cost of sales may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (required in future periods.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (Stock-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 578.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 578.10 Td (e account for stock-based compensation using fair value. ) Tj ET Q q 0 0 0 rg BT 312.10 578.10 Td (W) Tj ET Q q 0 0 0 rg BT 320.74 578.10 Td (e estimate the fair value of performance restricted stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (units granted using a Monte Carlo simulation model. ) Tj ET Q q 0 0 0 rg BT 263.40 566.10 Td (W) Tj ET Q q 0 0 0 rg BT 272.04 566.10 Td (e use historical data to estimate pre-vesting option forfeitures and record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (stock-based compensation expense only for those awards that are expected to vest. ) Tj ET Q q 0 0 0 rg BT 382.76 554.10 Td (W) Tj ET Q q 0 0 0 rg BT 391.40 554.10 Td (e value service-based restricted stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (units using the intrinsic value method and amortize the value on a straight-line basis over the restriction period. ) Tj ET Q q 0 0 0 rg BT 497.20 542.10 Td (W) Tj ET Q q 0 0 0 rg BT 505.84 542.10 Td (e value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (performance restricted stock units using a Monte Carlo simulation model and amortize the value over the performance period, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (with no adjustment in future periods, based upon the actual shareholder return over the performance period. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 498.10 Td (U.S.Generally ) Tj ET Q q 0 0 0 rg BT 135.66 498.10 Td (Accepted ) Tj ET Q q 0 0 0 rg BT 175.36 498.10 Td (Accounting Principles \("GAAP"\) requires the use of option pricing models that were not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (developed for use in valuing employee stock options. ) Tj ET Q q 0 0 0 rg BT 265.61 486.10 Td (The Black-Scholes option-pricing model was developed for use in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (estimating the fair value of short-lived exchange traded options that have no vesting restrictions and are fully transferable. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (addition, option-pricing models require the input of highly subjective assumptions, including the options expected life, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (expected price volatility of the underlying stock and an estimate of expected forfeitures. Our computation of expected volatility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (considers historical volatility and market-based implied volatility) Tj ET Q q 0 0 0 rg BT 310.40 438.10 Td (. Our estimate of expected forfeitures is based on historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (employee data and could dif) Tj ET Q q 0 0 0 rg BT 163.11 426.10 Td (fer from actual forfeitures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 406.10 Td (See Note12 "Employee Stock ) Tj ET Q q 0 0 0 rg BT 197.23 406.10 Td (A) Tj ET Q q 0 0 0 rg BT 203.53 406.10 Td (ward and Benefit Plans" in the notes to the Consolidated Financial Statements for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (description of our stock-based employee compensation plans and the assumptions we use to calculate the fair value of stock-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (based employee compensation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.80 362.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 342.10 Td (As part of the process of preparing our consolidated financial statements, we are required to estimate our income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (provision \(benefit\) in each of the jurisdictions in which we operate. ) Tj ET Q q 0 0 0 rg BT 321.41 330.10 Td (This process involves us estimating our current income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (provision \(benefit\) together with assessing temporary dif) Tj ET Q q 0 0 0 rg BT 276.99 318.10 Td (ferences resulting from dif) Tj ET Q q 0 0 0 rg BT 383.15 318.10 Td (fering treatment of items for tax and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (accounting purposes. ) Tj ET Q q 0 0 0 rg BT 136.74 306.10 Td (These dif) Tj ET Q q 0 0 0 rg BT 174.05 306.10 Td (ferences result in deferred tax assets and liabilities, which are included within our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (balance sheets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 274.10 Td (e record a valuation allowance to reduce our deferred tax assets to an amount that more likely than not will be realized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (While we have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (for the valuation allowance, in the event we were to determine that we would be able to realize our deferred tax assets in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (future in excess of our net recorded amount, an adjustment to the allowance for the deferred tax asset would increase income in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (net deferred tax asset in the future, an adjustment to the valuation allowance for the deferred tax asset would be char) Tj ET Q q 0 0 0 rg BT 514.91 214.10 Td (ged to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (income in the period such determination was made.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 182.10 Td (During fiscal 2016, we increased our valuation allowance on deferred tax assets by $2.1 million to $17.6 million, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (primarily due to the increase in California and certain state research and development tax credits, which are not expected to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (recognized. ) Tj ET Q q 0 0 0 rg BT 98.68 158.10 Td (The Company had U.S. federal deferred tax assets related to research and development credits, foreign tax credits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (and other tax attributes that can be used to of) Tj ET Q q 0 0 0 rg BT 229.48 146.10 Td (fset federal taxable income in future periods. ) Tj ET Q q 0 0 0 rg BT 410.89 146.10 Td (These credit carryforwards will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (expire if they are not used within certain time periods. ) Tj ET Q q 0 0 0 rg BT 268.54 134.10 Td (As of October 1, 2016, management determined that there is suf) Tj ET Q q 0 0 0 rg BT 524.96 134.10 Td (ficient ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (positive evidence to conclude that it is more likely than not suf) Tj ET Q q 0 0 0 rg BT 301.15 122.10 Td (ficient taxable income will exist in the future allowing us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (recognize these deferred tax assets. It is possible that some or all these attributes could ultimately expire unused. If facts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (circumstances change in the future, management may determine at that time a valuation allowance is necessary) Tj ET Q q 0 0 0 rg BT 494.17 98.10 Td (. ) Tj ET Q q 0 0 0 rg BT 501.12 98.10 Td (A) Tj ET Q q 0 0 0 rg BT 507.79 98.10 Td ( valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (allowance would materially increase our tax expense in the period applied and would adversely af) Tj ET Q q 0 0 0 rg BT 441.89 86.10 Td (fect our results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (and statement of financial condition. Changes in the Company) Tj ET Q q 0 0 0 rg BT 307.44 74.10 Td (s underlying facts or circumstances, such as the impact of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (Rofin-Sinar mer) Tj ET Q q 0 0 0 rg BT 115.08 62.10 Td (ger) Tj ET Q q 0 0 0 rg BT 127.45 62.10 Td (, will be assessed as they occur and the Company will re-evaluate its position accordingly) Tj ET Q q 0 0 0 rg BT 485.32 62.10 Td (. ) Tj ET Q endstream endobj 119 0 obj <>] /Rotate 0 /Contents 120 0 R>> endobj 120 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (Federal and state income taxes have not been provided on a portion of the unremitted earnings of foreign subsidiaries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (because such earnings are intended to be permanently reinvested. ) Tj ET Q q 0 0 0 rg BT 313.60 730.10 Td (The total amount of unremitted earnings \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (accumulated translation adjustments\) of foreign subsidiaries for which we have not yet recorded federal and state income taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.31 706.10 Td ($574.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.20 706.10 Td ( at fiscal 2016year) Tj ET Q q 0 0 0 rg BT 263.08 706.10 Td (-end. ) Tj ET Q q 0 0 0 rg BT 285.67 706.10 Td (The amount of federal and state income taxes that would be payable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (upon repatriation of such earnings is not practicably determinable. ) Tj ET Q q 0 0 0 rg BT 317.51 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 326.15 694.10 Td (e have not, nor do we anticipate the need to, repatriate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (funds to the United States to satisfy domestic liquidity needs arising in the ordinary course of business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (ITEM 7A.QUANTIT) Tj ET Q q 0 0 0 rg BT 149.82 650.10 Td (A) Tj ET Q q 0 0 0 rg BT 156.30 650.10 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 182.71 650.10 Td (AND QUALIT) Tj ET Q q 0 0 0 rg BT 245.58 650.10 Td (A) Tj ET Q q 0 0 0 rg BT 252.06 650.10 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 351.54 650.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 386.92 650.10 Td ( MARKET) Tj ET Q q 0 0 0 rg BT 434.24 650.10 Td ( RISK) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (Market risk disclosur) Tj ET Q q 0 0 0 rg BT 142.04 630.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 610.10 Td (e are exposed to market risk related to changes in interest rates and foreign currency exchange rates. ) Tj ET Q q 0 0 0 rg BT 485.61 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 494.25 610.10 Td (e do not use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (derivative financial instruments for speculative or trading purposes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (Inter) Tj ET Q q 0 0 0 rg BT 71.48 578.10 Td (est rate sensitivity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 558.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.67 558.10 Td ( portion of our investment portfolio is composed of fixed income securities. ) Tj ET Q q 0 0 0 rg BT 385.70 558.10 Td (These securities are subject to interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (risk and will fall in value if market interest rates increase. If interest rates were to increase immediately \(whether due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (changes in overall market rates or credit worthiness of the issuers of our individual securities\) and uniformly by 10% from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (levels at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.70 522.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.70 522.10 Td (year) Tj ET Q q 0 0 0 rg BT 149.20 522.10 Td (-end, the fair value of the portfolio, based on quoted market prices in active markets involving similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (assets, would decline by an immaterial amount due to their short-term maturities. ) Tj ET Q q 0 0 0 rg BT 376.96 510.10 Td (W) Tj ET Q q 0 0 0 rg BT 385.60 510.10 Td (e have the ability to generally hold our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (fixed income investments until maturity and therefore we would not expect our operating results or cash flows to be af) Tj ET Q q 0 0 0 rg BT 523.85 498.10 Td (fected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (any significant degree by the ef) Tj ET Q q 0 0 0 rg BT 175.60 486.10 Td (fect of a sudden change in market interest rates on our securities portfolio. If necessary) Tj ET Q q 0 0 0 rg BT 522.32 486.10 Td (, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (sell short-term investments prior to maturity to meet our liquidity needs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 454.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.66 454.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.66 454.10 Td (year) Tj ET Q q 0 0 0 rg BT 150.16 454.10 Td (-end, the fair value of our available-for) Tj ET Q q 0 0 0 rg BT 305.72 454.10 Td (-sale debt securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.13 454.10 Td ($25.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.02 454.10 Td (, all of which was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (classified as short-term investments. ) Tj ET Q q 0 0 0 rg BT 197.84 442.10 Td (There were no gross unrealized gains and losses on available-for) Tj ET Q q 0 0 0 rg BT 456.16 442.10 Td (-sale debt securities at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 430.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 430.10 Td (year) Tj ET Q q 0 0 0 rg BT 113.66 430.10 Td (-end. ) Tj ET Q q 0 0 0 rg BT 135.88 430.10 Td (At fiscal 2015year) Tj ET Q q 0 0 0 rg BT 212.04 430.10 Td (-end, the fair value of our available-for) Tj ET Q q 0 0 0 rg BT 367.60 430.10 Td (-sale debt securities was $178.4 million, all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (which was classified as short-term investments. Gross unrealized gains and losses on available-for) Tj ET Q q 0 0 0 rg BT 443.31 418.10 Td (-sale debt securities were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td ($1.1 million and $\(2,000\), respectively) Tj ET Q q 0 0 0 rg BT 205.15 406.10 Td (, at fiscal 2015year) Tj ET Q q 0 0 0 rg BT 283.53 406.10 Td (-end.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (For) Tj ET Q q 0 0 0 rg BT 65.37 386.10 Td (eign curr) Tj ET Q q 0 0 0 rg BT 104.34 386.10 Td (ency exchange risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 366.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 366.10 Td (e maintain operations in various countries outside of the United States and have foreign subsidiaries that manufacture ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (and sell our products in various global markets. ) Tj ET Q q 0 0 0 rg BT 242.28 354.10 Td (The majority of our sales are transacted in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 502.08 354.10 Td (, we do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (generate revenues in other currencies, primarily the Euro, the Japanese ) Tj ET Q q 0 0 0 rg BT 335.06 342.10 Td (Y) Tj ET Q q 0 0 0 rg BT 341.28 342.10 Td (en, the South Korean ) Tj ET Q q 0 0 0 rg BT 428.02 342.10 Td (W) Tj ET Q q 0 0 0 rg BT 436.66 342.10 Td (on and the Chinese RMB. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.90 330.10 Td (, we have operations in dif) Tj ET Q q 0 0 0 rg BT 205.80 330.10 Td (ferent countries around the world with costs incurred in other local currencies, such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (British Pound Sterling, Singapore Dollars and Malaysian Ringgit. ) Tj ET Q q 0 0 0 rg BT 314.99 318.10 Td (As a result, our earnings, cash flows and cash balances are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (exposed to fluctuations in foreign currency exchange rates. For example, we have significant manufacturing operations in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (Europe so that a weakening Euro is advantageous to our financial results. ) Tj ET Q q 0 0 0 rg BT 345.57 294.10 Td (W) Tj ET Q q 0 0 0 rg BT 354.20 294.10 Td (e attempt to limit these exposures through financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (market instruments. ) Tj ET Q q 0 0 0 rg BT 131.75 282.10 Td (W) Tj ET Q q 0 0 0 rg BT 140.39 282.10 Td (e utilize derivative instruments, primarily forward contracts with maturities of two months or less, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 Td (manage our exposure associated with anticipated cash flows and net asset and liability positions denominated in foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (currencies. Gains and losses on the forward contracts are mitigated by gains and losses on the underlying instruments. ) Tj ET Q q 0 0 0 rg BT 524.15 258.10 Td (W) Tj ET Q q 0 0 0 rg BT 532.78 258.10 Td (e do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.10 Td (not use derivative financial instruments for trading purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 226.10 Td (On occasion, we enter into currency forward exchange contracts to hedge specific anticipated foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (denominated transactions generally expected to occur within the next 12months. ) Tj ET Q q 0 0 0 rg BT 376.39 214.10 Td (These cash flow hedges are designated for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (hedge accounting treatment and gains and losses on these contracts are recorded in accumulated other comprehensive income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (in stockholder's equity and reclassified into earnings at the time that the related transactions being hedged are recognized in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (earnings. See Note 6 "Derivative Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 287.08 178.10 Td (Activities".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 158.10 Td (On ) Tj ET Q q 0 0 0 rg BT 86.67 158.10 Td (August 1, 2016, we purchased forward contracts totaling 670.0 million Euro, with a value date of November 30, 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (to limit our foreign exchange risk related to the commitment of our term loan \(denominated in Euros\) in an amount of the Euro ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (equivalent of $750.0 million to finance the U.S. dollar payment for the acquisition of Rofin. In the fourth quarter of fiscal 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (we recognized an unrealized loss of $2.2 million on these hedges. Subsequent to October 1, 2016, we settled these hedges at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (net gain of $3.1 million, resulting in a realized gain of $5.3 million in the first quarter of fiscal 2017. See Note 6 "Derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 153.04 98.10 Td (Activities" to our consolidated financial statements in Part IV) Tj ET Q q 0 0 0 rg BT 399.11 98.10 Td ( of this report. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 78.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 78.10 Td (e do not anticipate any material adverse ef) Tj ET Q q 0 0 0 rg BT 251.54 78.10 Td (fect on our consolidated financial position, results of operations or cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 66.10 Td (flows resulting from the use of these instruments. ) Tj ET Q q 0 0 0 rg BT 250.06 66.10 Td (There can be no assurance that these strategies will be ef) Tj ET Q q 0 0 0 rg BT 476.45 66.10 Td (fective or that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 54.10 Td (transaction losses can be minimized or forecasted accurately) Tj ET Q q 0 0 0 rg BT 291.19 54.10 Td (. ) Tj ET Q q 0 0 0 rg BT 296.01 54.10 Td (While we model currency valuations and fluctuations, these may ) Tj ET Q endstream endobj 121 0 obj <>] /Rotate 0 /Contents 122 0 R>> endobj 122 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (not ultimately be accurate. If a financial counterparty to any of our hedging arrangements experiences financial dif) Tj ET Q q 0 0 0 rg BT 508.23 742.10 Td (ficulties or is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (otherwise unable to honor the terms of the foreign currency hedge, we may experience material financial losses. In the current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (economic environment, the risk of failure of a financial party remains high.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 698.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.50 698.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.21 698.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.47 698.10 Td ($331.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.36 698.10 Td ( of our cash, cash equivalents and short-term investments were held ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (outside the U.S. in certain of our foreign operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.06 686.10 Td ($93.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.95 686.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 317.45 693.03 241.60 -9.09 re f /GS0 gs q 0 0 0 rg BT 317.45 686.10 Td (of which was denominated in currencies other than the U.S. ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 50.00 681.03 27.77 -9.09 re f /GS0 gs q 0 0 0 rg BT 50.00 674.10 Td (dollar) Tj ET Q q 0 0 0 rg BT 72.77 674.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.77 674.10 Td (See Note16, "Subsequent Events" in our Notes to Consolidated Financial Statements under Item15 of this annual report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (for further discussion of the completion of our acquisition of Rofin and the use of cash to finance the acquisition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 642.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.67 642.10 Td ( hypothetical 10% change in foreign currency rates on our forward contracts would not have a material impact on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (results of operations, cash flows or financial position.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 610.10 Td (The following table provides information about our foreign exchange forward contracts at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.66 610.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.36 610.10 Td (. ) Tj ET Q q 0 0 0 rg BT 506.18 610.10 Td (The table ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (presents the weighted average contractual foreign currency exchange rates, the value of the contracts in U.S. dollars at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (contract exchange rate as of the contract maturity date and fair value. ) Tj ET Q q 0 0 0 rg BT 328.85 586.10 Td (The U.S. fair value represents the fair value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (contracts valued at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.47 574.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.17 574.10 Td ( rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 554.10 Td (Forward contracts to sell \(buy\) foreign currencies \(in thousands, except contract rates\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 515.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 515.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 515.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 515.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 515.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 515.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 487.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 487.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 487.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 487.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 487.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 487.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 459.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 459.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 459.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 459.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 459.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 459.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 431.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 431.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 431.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 431.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 431.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 431.60 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 515.6 m 433.5 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 515.6 m 497.5 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 515.6 m 561.5 515.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.05 527.68 Td (A) Tj ET Q q 0 0 0 rg BT 394.23 527.68 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.65 519.68 Td (Contract Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.20 527.68 Td (U.S. Notional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.10 519.68 Td (Contract ) Tj ET Q q 0 0 0 rg BT 473.61 519.68 Td (V) Tj ET Q q 0 0 0 rg BT 478.65 519.68 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.05 519.83 Td (U.S. Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 506.17 Td (Non-Designated - For US Dollars:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 492.17 Td (Euro) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 492.17 Td (1.1202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 492.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 492.17 Td (659,346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 492.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 492.17 Td (2,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 478.17 Td (Japanese Yen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 478.17 Td (102.1105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 478.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 478.17 Td (36,450) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 478.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 478.17 Td (343) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 464.17 Td (South Korean Won) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 464.17 Td (1,057.7555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 464.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 464.17 Td (6,681) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 464.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 464.22 Td (\(261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 464.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 450.17 Td (Chinese RMB) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 450.17 Td (6.7001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 450.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 450.17 Td (25,237) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 450.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 450.17 Td (91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 436.17 Td (Singaporean Dollar) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 436.17 Td (1.3615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 436.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 436.22 Td (\(6,033) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 436.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 436.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 436.17 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 422.17 Td (Malaysian Ringgit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 422.17 Td (4.0498) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 422.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 422.17 Td (1,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 422.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 422.22 Td (\(38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 422.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 372.10 Td (ITEM 8.FINANCIAL) Tj ET Q q 0 0 0 rg BT 152.79 372.10 Td ( ST) Tj ET Q q 0 0 0 rg BT 166.78 372.10 Td (A) Tj ET Q q 0 0 0 rg BT 173.26 372.10 Td (TEMENTS ) Tj ET Q q 0 0 0 rg BT 224.11 372.10 Td (AND SUPPLEMENT) Tj ET Q q 0 0 0 rg BT 315.87 372.10 Td (AR) Tj ET Q q 0 0 0 rg BT 329.96 372.10 Td (Y) Tj ET Q q 0 0 0 rg BT 336.81 372.10 Td ( DA) Tj ET Q q 0 0 0 rg BT 353.01 372.10 Td (T) Tj ET Q q 0 0 0 rg BT 358.94 372.10 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 352.10 Td (See Item15-\(a\)for an index to the Consolidated Financial Statements and Supplementary Financial Information, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 340.10 Td (are attached hereto and incorporated by reference herein. ) Tj ET Q q 0 0 0 rg BT 279.96 340.10 Td (The financial statements and notes thereto can be found beginning on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 328.10 Td (page67 of this annual report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 304.10 Td (ITEM 9.CHANGES IN ) Tj ET Q q 0 0 0 rg BT 161.68 304.10 Td (AND DISAGREEMENTS ) Tj ET Q q 0 0 0 rg BT 275.97 304.10 Td (WITH ) Tj ET Q q 0 0 0 rg BT 306.25 304.10 Td (ACCOUNT) Tj ET Q q 0 0 0 rg BT 356.07 304.10 Td (ANTS ON ) Tj ET Q q 0 0 0 rg BT 402.19 304.10 Td (ACCOUNTING ) Tj ET Q q 0 0 0 rg BT 473.59 304.10 Td (AND FINANCIAL) Tj ET Q q 0 0 0 rg BT 553.87 304.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 95.00 292.10 Td (DISCLOSURE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 272.10 Td (Not applicable.) Tj ET Q endstream endobj 123 0 obj <>] /Rotate 0 /Contents 124 0 R>> endobj 124 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (59) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 9A.CONTROLS ) Tj ET Q q 0 0 0 rg BT 161.96 742.25 Td (AND PROCEDURES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (Management's Evaluation of Disclosur) Tj ET Q q 0 0 0 rg BT 215.10 722.25 Td (e Contr) Tj ET Q q 0 0 0 rg BT 247.41 722.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 290.57 722.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 319.82 722.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 702.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 702.25 Td (e have evaluated the ef) Tj ET Q q 0 0 0 rg BT 174.07 702.25 Td (fectiveness of the design and operation of our disclosure controls and procedures, as such term is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 690.25 Td (defined in Rule13a-15\(e\) under the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 278.81 690.25 Td (Act of 1934, as of the end of the period covered by this annual report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (\("Evaluation Date"\). ) Tj ET Q q 0 0 0 rg BT 134.34 678.25 Td (The controls evaluation was conducted under the supervision and with the participation of management, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 183.67 666.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 296.23 666.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 313.99 666.25 Td (. Based on this evaluation, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 515.42 666.25 Td (ficer and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (Chief Financial Of) Tj ET Q q 0 0 0 rg BT 124.80 654.25 Td (ficer concluded as of the Evaluation Date that our disclosure controls and procedures were ef) Tj ET Q q 0 0 0 rg BT 496.69 654.25 Td (fective in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (providing reasonable assurance that information required to be disclosed by us in reports that we file or submit under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.25 Td (Securities Exchange ) Tj ET Q q 0 0 0 rg BT 133.31 630.25 Td (Act of 1934, as amended, is \(i\)recorded, processed, summarized and reported within the time periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.25 Td (specified in the Securities and Exchange Commission's rules and forms and \(ii\)accumulated and communicated to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.25 Td (management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 239.76 606.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 352.31 606.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 370.23 606.25 Td (, as appropriate, to allow timely decisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.25 Td (regarding required disclosures.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (Management's Report on Internal Contr) Tj ET Q q 0 0 0 rg BT 223.69 574.25 Td (ol Over) Tj ET Q q 0 0 0 rg BT 255.44 574.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 554.25 Td (Management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 264.87 554.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 377.43 554.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 395.34 554.25 Td (, is responsible for establishing and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (maintaining adequate internal control over financial reporting \(as defined in Exchange ) Tj ET Q q 0 0 0 rg BT 397.37 542.25 Td (Act Rules13a-15\(f\) and 15d-15\(f\)\) for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (the Company) Tj ET Q q 0 0 0 rg BT 102.95 530.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 510.25 Td (Management assessed the ef) Tj ET Q q 0 0 0 rg BT 187.39 510.25 Td (fectiveness of our internal control over financial reporting as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.40 510.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.11 510.25 Td (, utilizing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.25 Td (criteria set forth by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 259.78 498.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 333.18 498.25 Td (T) Tj ET Q q 0 0 0 rg BT 338.94 498.25 Td (readway Commission \("COSO"\) in Internal Control-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.25 Td (Integrated Framework \(2013\). Based on the assessment by management, we determined that our internal control over financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (reporting was ef) Tj ET Q q 0 0 0 rg BT 114.79 474.25 Td (fective as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.16 474.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.86 474.25 Td (. ) Tj ET Q q 0 0 0 rg BT 235.68 474.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 261.32 474.25 Td (fectiveness of our internal control over financial reporting as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.33 474.25 Td (October1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 462.25 Td ( has been audited by Deloitte& ) Tj ET Q q 0 0 0 rg BT 198.95 462.25 Td (T) Tj ET Q q 0 0 0 rg BT 204.36 462.25 Td (oucheLLP) Tj ET Q q 0 0 0 rg BT 247.41 462.25 Td (, our independent registered public accounting firm, as stated in their report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.25 Td (which appears below) Tj ET Q q 0 0 0 rg BT 133.76 450.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (Inher) Tj ET Q q 0 0 0 rg BT 73.71 430.25 Td (ent Limitations Over) Tj ET Q q 0 0 0 rg BT 162.96 430.25 Td ( Internal Contr) Tj ET Q q 0 0 0 rg BT 228.33 430.25 Td (ols) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 410.25 Td (Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.25 Td (financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.25 Td (accounting principles \("GAAP"\). Because of its inherent limitations, internal control over financial reporting may not prevent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.25 Td (or detect misstatements. ) Tj ET Q q 0 0 0 rg BT 148.31 374.25 Td (Also, projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 309.47 374.25 Td (fectiveness for future periods are subject to the risk that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.25 Td (controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.25 Td (procedures may deteriorate. Our internal control over financial reporting is designed to provide reasonable assurance regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.25 Td (the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 76.12 326.25 Td (. Our internal control over financial reporting includes those policies and procedures that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 306.25 Td (\(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 306.25 Td (pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 294.25 Td (dispositions of our assets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 279.25 Td (\(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 279.25 Td (provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 267.25 Td (statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 255.25 Td (being made only in accordance with authorizations of our management and directors; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 240.25 Td (\(iii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 240.25 Td ( provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 228.25 Td (disposition of our assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 316.26 228.25 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 208.25 Td (Management, including our CEO and CFO, does not expect that our internal controls will prevent or detect all errors and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.25 Td (all fraud. ) Tj ET Q q 0 0 0 rg BT 88.04 196.25 Td (A) Tj ET Q q 0 0 0 rg BT 94.71 196.25 Td ( control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.25 Td (that the objectives of the control system are met. Further) Tj ET Q q 0 0 0 rg BT 275.64 184.25 Td (, the design of a control system must reflect the fact that there are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.25 Td (resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.25 Td (in all control systems, no evaluation of internal controls can provide absolute assurance that all control issues and instances of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.25 Td (fraud, if any) Tj ET Q q 0 0 0 rg BT 98.50 148.25 Td (, have been detected. ) Tj ET Q q 0 0 0 rg BT 184.01 148.25 Td (Also, any evaluation of the ef) Tj ET Q q 0 0 0 rg BT 302.12 148.25 Td (fectiveness of controls in future periods are subject to the risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.25 Td (that those internal controls may become inadequate because of changes in business conditions, or that the degree of compliance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.25 Td (with the policies or procedures may deteriorate.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 104.25 Td (Changes in Internal Contr) Tj ET Q q 0 0 0 rg BT 162.89 104.25 Td (ol Over) Tj ET Q q 0 0 0 rg BT 194.64 104.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 84.25 Td (There were no changes in our internal control over financial reporting that occurred during the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.32 84.25 Td (October1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 72.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 72.25 Td ( that have materially af) Tj ET Q q 0 0 0 rg BT 162.00 72.25 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 348.95 72.25 Td (fect, our internal control over financial reporting.) Tj ET Q endstream endobj 125 0 obj <>] /Rotate 0 /Contents 126 0 R>> endobj 126 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (60) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 135.40 742.25 Td (REPOR) Tj ET Q q 0 0 0 rg BT 170.05 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 176.54 742.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 192.55 742.25 Td ( INDEPENDENT) Tj ET Q q 0 0 0 rg BT 267.66 742.25 Td ( REGISTERED PUBLIC ) Tj ET Q q 0 0 0 rg BT 377.97 742.25 Td (ACCOUNTING FIRM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 722.25 Td (o the Board of Directors and Stockholders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (Coherent,Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (Santa Clara, CA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 678.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 678.25 Td (e have audited the internal control over financial reporting of Coherent,Inc. and its subsidiaries \(collectively) Tj ET Q q 0 0 0 rg BT 516.56 678.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td ("Company"\) as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.54 666.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.25 666.25 Td (, based on the criteria established in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 334.76 666.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 392.44 666.25 Td (olIntegrated Framework \(2013\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.59 666.25 Td (issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 193.42 654.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 266.83 654.25 Td (T) Tj ET Q q 0 0 0 rg BT 272.58 654.25 Td (readway Commission. ) Tj ET Q q 0 0 0 rg BT 364.34 654.25 Td (The Company's management is responsible for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (maintaining ef) Tj ET Q q 0 0 0 rg BT 107.86 642.25 Td (fective internal control over financial reporting and for its assessment of the ef) Tj ET Q q 0 0 0 rg BT 421.45 642.25 Td (fectiveness of internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.25 Td (financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.25 Td (responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 598.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 598.25 Td (e conducted our audit in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 398.94 598.25 Td (Accounting Oversight Board \(United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (States\). ) Tj ET Q q 0 0 0 rg BT 82.04 586.25 Td (Those standards require that we plan and perform the audit to obtain reasonable assurance about whether ef) Tj ET Q q 0 0 0 rg BT 511.69 586.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (and operating ef) Tj ET Q q 0 0 0 rg BT 114.79 550.25 Td (fectiveness of internal control based on the assessed risk, and performing such other procedures as we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (considered necessary in the circumstances. ) Tj ET Q q 0 0 0 rg BT 223.64 538.25 Td (W) Tj ET Q q 0 0 0 rg BT 232.28 538.25 Td (e believe that our audit provides a reasonable basis for our opinion.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 518.25 Td (A) Tj ET Q q 0 0 0 rg BT 80.67 518.25 Td ( company's internal control over financial reporting is a process designed by) Tj ET Q q 0 0 0 rg BT 384.79 518.25 Td (, or under the supervision of, the company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (principal executive and principal financial of) Tj ET Q q 0 0 0 rg BT 229.46 506.25 Td (ficers, or persons performing similar functions, and ef) Tj ET Q q 0 0 0 rg BT 445.05 506.25 Td (fected by the company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.25 Td (reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 470.25 Td (principles. ) Tj ET Q q 0 0 0 rg BT 93.88 470.25 Td (A) Tj ET Q q 0 0 0 rg BT 100.55 470.25 Td ( company's internal control over financial reporting includes those policies and procedures that \(1\)pertain to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.25 Td (maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (the company; \(2\)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.25 Td (statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.25 Td (being made only in accordance with authorizations of management and directors of the company; and \(3\)provide reasonable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.25 Td (could have a material ef) Tj ET Q q 0 0 0 rg BT 145.88 398.25 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 378.25 Td (Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.25 Td (improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.25 Td (timely basis. ) Tj ET Q q 0 0 0 rg BT 102.50 354.25 Td (Also, projections of any evaluation of the ef) Tj ET Q q 0 0 0 rg BT 278.38 354.25 Td (fectiveness of the internal control over financial reporting to future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.25 Td (periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.25 Td (compliance with the policies or procedures may deteriorate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 310.25 Td (In our opinion, the Company maintained, in all material respects, ef) Tj ET Q q 0 0 0 rg BT 344.58 310.25 Td (fective internal control over financial reporting as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.71 298.25 Td (, based on the criteria established in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 260.21 298.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 317.90 298.25 Td (olIntegrated Framework \(2013\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.55 298.25 Td ( issued by the Committee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 119.26 286.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 192.67 286.25 Td (T) Tj ET Q q 0 0 0 rg BT 198.43 286.25 Td (readway Commission.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 266.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 266.25 Td (e have also audited, in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 391.44 266.25 Td (Accounting Oversight Board \(United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.25 Td (States\), the consolidated financial statements as of and for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.73 254.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.43 254.25 Td (, of the Company and our report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.25 Td (dated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 242.25 Td (November29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.86 242.25 Td (, expressed an unqualified opinion on those consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (/s/ DELOITTE& ) Tj ET Q q 0 0 0 rg BT 122.86 202.25 Td (T) Tj ET Q q 0 0 0 rg BT 128.79 202.25 Td (OUCHELLP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.25 Td (San Jose, California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 167.25 Td (November29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.71 167.25 Td ( ) Tj ET Q endstream endobj 127 0 obj <>] /Rotate 0 /Contents 128 0 R>> endobj 128 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (61) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (ITEM 9B.OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 190.10 710.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 690.10 Td (Not applicable.) Tj ET Q endstream endobj 129 0 obj <>] /Rotate 0 /Contents 130 0 R>> endobj 130 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (62) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 285.90 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 291.27 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 305.36 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 311.85 742.25 Td ( III) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (ITEM 10.DIRECT) Tj ET Q q 0 0 0 rg BT 140.39 718.25 Td (ORS, EXECUTIVE OFFICERS ) Tj ET Q q 0 0 0 rg BT 280.42 718.25 Td (AND CORPORA) Tj ET Q q 0 0 0 rg BT 354.39 718.25 Td (TE GOVERNANCE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 698.25 Td (Information regarding: \(i\)our directors will be set forth under the caption "Proposal One Election of Directors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (Nominees"; \(ii\)compliance with Section16\(a\) of the Securities ) Tj ET Q q 0 0 0 rg BT 306.51 686.25 Td (Act of 1933 will be set forth under the caption "Section16\(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.25 Td (Beneficial Ownership Reporting Compliance"; \(iii\)the process for stockholders to nominate directors will be set forth under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.25 Td (the caption "Proposal OneElection of DirectorsProcess for Recommending Candidates for Election to the Board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.25 Td (Directors"; \(iv\)our audit committee and audit committee financial expert will be set forth under the caption "Proposal One) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.25 Td (Election of DirectorsBoard Meetings and CommitteesAudit Committee"; in our proxy statement for use in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.25 Td (with an upcoming ) Tj ET Q q 0 0 0 rg BT 124.16 626.25 Td (Annual Meeting of Stockholders to be held in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.68 626.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.68 626.25 Td ( \(the ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.31 626.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.31 626.25 Td ( Proxy Statement"\) and is incorporated herein ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.25 Td (by reference or included in a Form10-K/A) Tj ET Q q 0 0 0 rg BT 221.33 614.25 Td ( as an amendment to this Form10-K. ) Tj ET Q q 0 0 0 rg BT 372.52 614.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.57 614.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.57 614.25 Td ( Proxy Statement or Form10-K/A) Tj ET Q q 0 0 0 rg BT 546.95 614.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.25 Td (will be filed with the SEC within 120days after the end of our fiscal year) Tj ET Q q 0 0 0 rg BT 342.98 602.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 580.9169921875 m 150.0048828125 580.9169921875 l s q 0 0 0 rg BT 50.00 582.25 Td (Business Conduct Policy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 562.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 562.25 Td (e have adopted a worldwide Business Conduct Policy that applies to the members of our Board of Directors, executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 550.25 Td (ficers and other employees. ) Tj ET Q q 0 0 0 rg BT 170.42 550.25 Td (This policy is posted on our ) Tj ET Q q 0 0 0 rg BT 284.13 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 292.76 550.25 Td (ebsite at ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 328.31 550.25 Td (www) Tj ET Q q 0 0 0 rg BT 347.57 550.25 Td (.coher) Tj ET Q q 0 0 0 rg BT 372.47 550.25 Td (ent.com) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.85 550.25 Td ( and may be found as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 530.25 Td (1. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 530.25 Td (From our main ) Tj ET Q q 0 0 0 rg BT 166.31 530.25 Td (W) Tj ET Q q 0 0 0 rg BT 174.95 530.25 Td (eb page, first click on "Company" and then on "corporate governance.") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 510.25 Td (2. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 510.25 Td (Next, click on "Business Conduct Policy) Tj ET Q q 0 0 0 rg BT 266.31 510.25 Td (.") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 490.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 490.25 Td (e intend to satisfy the disclosure requirement under Item5.05 of Form8-K regarding an amendment to, or waiver from, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (a provision of this Business Conduct Policy by posting such information on our ) Tj ET Q q 0 0 0 rg BT 370.64 478.25 Td (W) Tj ET Q q 0 0 0 rg BT 379.28 478.25 Td (ebsite, at the address and location specified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (above.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 446.25 Td (Stockholders may request free printed copies of our worldwide Business Conduct Policy from:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 426.25 Td (Coherent,Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.95 414.25 Td (Attention: Investor Relations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.20 402.25 Td (5100 Patrick Henry Drive) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.25 390.25 Td (Santa Clara, California 95054) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 368.68505859375 m 128.5791015625 368.68505859375 l s q 0 0 0 rg BT 50.00 370.25 Td (Executive Officers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 350.25 Td (The name, age, position and a brief account of the business experience of our executive of) Tj ET Q q 0 0 0 rg BT 434.51 350.25 Td (ficers as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.88 350.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.59 350.25 Td ( are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.25 Td (set forth below:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 319.75 130.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 179.50 319.75 30.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 319.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.50 319.75 348.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 293.75 130.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 179.50 293.75 30.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 293.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.50 293.75 348.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 265.75 130.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 179.50 265.75 30.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 265.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.50 265.75 348.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 237.75 130.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 179.50 237.75 30.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 237.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.50 237.75 348.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 179.5 307.75 m 209.5 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213.5 307.75 m 561.5 307.75 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52 310.580078125 m 71.9921875 310.580078125 l s q 0 0 0 rg BT 52.00 311.83 Td (Name) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 187.30 311.83 Td (Age) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.30 311.83 Td (Office Held) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 298.32 Td (John R. Ambroseo) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.60 298.32 Td (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 298.32 Td (President and Chief Executive Officer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 284.32 Td (Kevin Palatnik) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.60 284.32 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 284.32 Td (Executive Vice President and Chief Financial Officer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 270.32 Td (Mark Sobey) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.60 270.32 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 270.32 Td (Executive Vice President and General Manager, Specialty Laser Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 256.32 Td (Paul Sechrist) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.60 256.32 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 256.32 Td (Executive Vice President, Worldwide Sales and Service) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 242.32 Td (Luis Spinelli) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.60 242.32 Td (68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 242.32 Td (Executive Vice President and Chief Technology Officer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 228.32 Td (Bret M. DiMarco) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.60 228.32 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 228.32 Td (Executive Vice President, General Counsel and Corporate Secretary) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 74.00 204.25 Td (John R. ) Tj ET Q q 0 0 0 rg BT 106.87 204.25 Td (Ambr) Tj ET Q q 0 0 0 rg BT 128.72 204.25 Td (oseo.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.55 204.25 Td (Mr) Tj ET Q q 0 0 0 rg BT 171.22 204.25 Td (.) Tj ET Q q 0 0 0 rg BT 175.67 204.25 Td (Ambroseo has served as our President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 425.14 204.25 Td (ficer as well as a member of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 192.25 Td (Board of Directors since October 2002. Mr) Tj ET Q q 0 0 0 rg BT 221.90 192.25 Td (.) Tj ET Q q 0 0 0 rg BT 226.35 192.25 Td (Ambroseo served as our Chief Operating Of) Tj ET Q q 0 0 0 rg BT 403.34 192.25 Td (ficer from June 2001 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 180.25 Td (September 2002. Mr) Tj ET Q q 0 0 0 rg BT 131.93 180.25 Td (.) Tj ET Q q 0 0 0 rg BT 136.38 180.25 Td (Ambroseo served as our Executive ) Tj ET Q q 0 0 0 rg BT 278.10 180.25 Td (V) Tj ET Q q 0 0 0 rg BT 284.72 180.25 Td (ice President and as President and General Manager of the Coherent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 168.25 Td (Photonics Group from September 2000 to June 2001. From September 1997 to September 2000, Mr) Tj ET Q q 0 0 0 rg BT 449.96 168.25 Td (.) Tj ET Q q 0 0 0 rg BT 454.40 168.25 Td (Ambroseo served as our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 156.25 Td (Executive ) Tj ET Q q 0 0 0 rg BT 92.30 156.25 Td (V) Tj ET Q q 0 0 0 rg BT 98.92 156.25 Td (ice President and as President and General Manager of the Coherent Laser Group. From March 1997 to September ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 144.25 Td (1997, Mr) Tj ET Q q 0 0 0 rg BT 86.67 144.25 Td (.) Tj ET Q q 0 0 0 rg BT 91.12 144.25 Td (Ambroseo served as our Scientific Business Unit Manager) Tj ET Q q 0 0 0 rg BT 324.68 144.25 Td (. From ) Tj ET Q q 0 0 0 rg BT 353.30 144.25 Td (August 1988, when Mr) Tj ET Q q 0 0 0 rg BT 445.52 144.25 Td (.) Tj ET Q q 0 0 0 rg BT 449.97 144.25 Td (Ambroseo joined us, until ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 132.25 Td (March 1997, he served as a Sales Engineer) Tj ET Q q 0 0 0 rg BT 221.21 132.25 Td (, Product Marketing Manager) Tj ET Q q 0 0 0 rg BT 339.11 132.25 Td (, National Sales Manager and Director of European ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 120.25 Td (Operations. Mr) Tj ET Q q 0 0 0 rg BT 110.55 120.25 Td (.) Tj ET Q q 0 0 0 rg BT 115.00 120.25 Td (Ambroseo received a Bachelor degree from SUNY) Tj ET Q q 0 0 0 rg BT 318.25 120.25 Td (-College at Purchase and a PhD in Chemistry from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 108.25 Td (University of Pennsylvania.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 74.00 88.25 Td (Kevin Palatnik.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.21 88.25 Td (Mr) Tj ET Q q 0 0 0 rg BT 157.88 88.25 Td (. Palatnik has served as our Executive ) Tj ET Q q 0 0 0 rg BT 311.54 88.25 Td (V) Tj ET Q q 0 0 0 rg BT 318.16 88.25 Td (ice President and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 463.77 88.25 Td (ficer since February ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.25 Td (2016. Prior to his appointment, Mr) Tj ET Q q 0 0 0 rg BT 188.61 76.25 Td (. Palatnik was Chief Financial Of) Tj ET Q q 0 0 0 rg BT 321.73 76.25 Td (ficer at voice-technology provider) Tj ET Q q 0 0 0 rg BT 457.66 76.25 Td (, ) Tj ET Q q 0 0 0 rg BT 462.11 76.25 Td (Audience, Inc. from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.25 Td (August 201) Tj ET Q q 0 0 0 rg BT 96.02 64.25 Td (1 until it was acquired by the Knowles Corporation in July 2015. From ) Tj ET Q q 0 0 0 rg BT 381.55 64.25 Td (April 2008 through September 2010, Mr) Tj ET Q q 0 0 0 rg BT 543.20 64.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 52.25 Td (Palatnik served as the Chief Financial Of) Tj ET Q q 0 0 0 rg BT 214.22 52.25 Td (ficer at Cadence Design Systems, Inc., where he also led the investor relations, ) Tj ET Q endstream endobj 131 0 obj <>] /Rotate 0 /Contents 132 0 R>> endobj 132 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (information technology and workplace resources groups. From ) Tj ET Q q 0 0 0 rg BT 303.83 742.10 Td (April 2006 through March 2008, Mr) Tj ET Q q 0 0 0 rg BT 448.81 742.10 Td (. Palatnik served as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (company) Tj ET Q q 0 0 0 rg BT 89.43 730.10 Td (s Sr) Tj ET Q q 0 0 0 rg BT 104.17 730.10 Td (. ) Tj ET Q q 0 0 0 rg BT 108.98 730.10 Td (V) Tj ET Q q 0 0 0 rg BT 115.61 730.10 Td (ice President and Corporate Controller) Tj ET Q q 0 0 0 rg BT 269.45 730.10 Td (. From July 2004 through March 2006, Mr) Tj ET Q q 0 0 0 rg BT 439.17 730.10 Td (. Palatnik served as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (company) Tj ET Q q 0 0 0 rg BT 89.43 718.10 Td (s Corporate ) Tj ET Q q 0 0 0 rg BT 138.13 718.10 Td (V) Tj ET Q q 0 0 0 rg BT 144.75 718.10 Td (ice President of ) Tj ET Q q 0 0 0 rg BT 209.27 718.10 Td (T) Tj ET Q q 0 0 0 rg BT 214.68 718.10 Td (echnical Field Operations. From June 2001 through June 2004, Mr) Tj ET Q q 0 0 0 rg BT 481.04 718.10 Td (. Palatnik served as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (the company) Tj ET Q q 0 0 0 rg BT 104.15 706.10 Td (s Corporate ) Tj ET Q q 0 0 0 rg BT 152.85 706.10 Td (V) Tj ET Q q 0 0 0 rg BT 159.47 706.10 Td (ice President of Sales Finance & Operations. Prior to joining Cadence, Mr) Tj ET Q q 0 0 0 rg BT 455.80 706.10 Td (. Palatnik held a series of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (senior financial roles at IBM. Mr) Tj ET Q q 0 0 0 rg BT 181.64 694.10 Td (. Palatnik received a Bachelor of Science degree in industrial engineering and operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (research, as well as a Master of Business ) Tj ET Q q 0 0 0 rg BT 215.23 682.10 Td (Administration from Syracuse University) Tj ET Q q 0 0 0 rg BT 380.39 682.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 74.00 662.10 Td (Mark Sobey) Tj ET Q q 0 0 0 rg BT 121.49 662.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.99 662.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 145.66 662.10 Td (.Sobey was appointed Executive ) Tj ET Q q 0 0 0 rg BT 280.44 662.10 Td (V) Tj ET Q q 0 0 0 rg BT 287.06 662.10 Td (ice President of Coherent and General Manager of Specialty Laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (Systems \(SLS\) in ) Tj ET Q q 0 0 0 rg BT 121.96 650.10 Td (April 2010. He has served as Senior ) Tj ET Q q 0 0 0 rg BT 268.41 650.10 Td (V) Tj ET Q q 0 0 0 rg BT 275.03 650.10 Td (ice President and General Manager for the SLS Business Group, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (primarily serves the Microelectronics and Research markets, since joining Coherent in July 2007. Prior to Coherent, Mr) Tj ET Q q 0 0 0 rg BT 528.50 638.10 Td (.Sobey ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (has spent over 20years in the Laser and Fiber Optics ) Tj ET Q q 0 0 0 rg BT 264.48 626.10 Td (T) Tj ET Q q 0 0 0 rg BT 269.89 626.10 Td (elecommunications industries, including roles as Senior ) Tj ET Q q 0 0 0 rg BT 495.50 626.10 Td (V) Tj ET Q q 0 0 0 rg BT 502.12 626.10 Td (ice President ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (Product Management at Cymer from January 2006 through June 2007 and previously as Senior ) Tj ET Q q 0 0 0 rg BT 433.63 614.10 Td (V) Tj ET Q q 0 0 0 rg BT 440.25 614.10 Td (ice President Global Sales at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (JDS Uniphase through October 2005. He received his PhD in Engineering and BSc in Physics, both from the University of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (Strathclyde in Scotland.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 74.00 570.10 Td (Paul Sechrist. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.60 570.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 144.27 570.10 Td (. Paul Sechrist was appointed Executive ) Tj ET Q q 0 0 0 rg BT 306.55 570.10 Td (V) Tj ET Q q 0 0 0 rg BT 313.17 570.10 Td (ice President, ) Tj ET Q q 0 0 0 rg BT 369.37 570.10 Td (W) Tj ET Q q 0 0 0 rg BT 378.00 570.10 Td (orldwide Sales and Service in March 201) Tj ET Q q 0 0 0 rg BT 542.59 570.10 Td (1. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (He has over 35 years of experience with Coherent, including roles as Senior ) Tj ET Q q 0 0 0 rg BT 356.39 558.10 Td (V) Tj ET Q q 0 0 0 rg BT 363.01 558.10 Td (ice President and General Manager of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (Commercial Lasers and Components from October 2008 to March 201) Tj ET Q q 0 0 0 rg BT 333.17 546.10 Td (1, ) Tj ET Q q 0 0 0 rg BT 342.99 546.10 Td (V) Tj ET Q q 0 0 0 rg BT 349.61 546.10 Td (ice President and General Manager of Specialty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (Laser Systems, Santa Clara from March 2008 to October 2008 and ) Tj ET Q q 0 0 0 rg BT 319.20 534.10 Td (V) Tj ET Q q 0 0 0 rg BT 325.82 534.10 Td (ice President for Components from ) Tj ET Q q 0 0 0 rg BT 468.30 534.10 Td (April 2005 to October ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (2008. Mr) Tj ET Q q 0 0 0 rg BT 89.17 522.10 Td (. Sechrist received an ) Tj ET Q q 0 0 0 rg BT 176.64 522.10 Td (AA) Tj ET Q q 0 0 0 rg BT 190.53 522.10 Td ( degree from San Jose City College, with Physics studies at California State University) Tj ET Q q 0 0 0 rg BT 537.60 522.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (Hayward.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 74.00 490.10 Td (Luis Spinelli.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.78 490.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 148.45 490.10 Td (.Spinelli has served as our Executive ) Tj ET Q q 0 0 0 rg BT 300.46 490.10 Td (V) Tj ET Q q 0 0 0 rg BT 307.08 490.10 Td (ice President and Chief ) Tj ET Q q 0 0 0 rg BT 402.42 490.10 Td (T) Tj ET Q q 0 0 0 rg BT 407.83 490.10 Td (echnology Of) Tj ET Q q 0 0 0 rg BT 462.36 490.10 Td (ficer since February ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (2004. Mr) Tj ET Q q 0 0 0 rg BT 86.67 478.10 Td (.Spinelli joined the Company in May 1985 and has since held various engineering and managerial positions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (including ) Tj ET Q q 0 0 0 rg BT 90.09 466.10 Td (V) Tj ET Q q 0 0 0 rg BT 96.71 466.10 Td (ice President, ) Tj ET Q q 0 0 0 rg BT 152.53 466.10 Td (Advanced Research from ) Tj ET Q q 0 0 0 rg BT 256.10 466.10 Td (April 2000 to September 2002 and ) Tj ET Q q 0 0 0 rg BT 397.01 466.10 Td (V) Tj ET Q q 0 0 0 rg BT 403.63 466.10 Td (ice President, Corporate Research from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (September 2002 to February 2004. Mr) Tj ET Q q 0 0 0 rg BT 203.31 454.10 Td (.Spinelli has led the ) Tj ET Q q 0 0 0 rg BT 286.64 454.10 Td (Advanced Research Unit from its inception in 1998, whose charter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (is to identify and evaluate new and emer) Tj ET Q q 0 0 0 rg BT 211.70 442.10 Td (ging technologies of interest for us across a range of disciplines in the laser field. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 61.67 430.10 Td (.Spinelli holds a degree in Electrical Engineering from the University of Buenos ) Tj ET Q q 0 0 0 rg BT 387.14 430.10 Td (Aires, ) Tj ET Q q 0 0 0 rg BT 413.25 430.10 Td (Ar) Tj ET Q q 0 0 0 rg BT 423.62 430.10 Td (gentina with post-graduate work ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (at the Massachusetts Institute of ) Tj ET Q q 0 0 0 rg BT 180.63 418.10 Td (T) Tj ET Q q 0 0 0 rg BT 186.04 418.10 Td (echnology) Tj ET Q q 0 0 0 rg BT 227.04 418.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 74.00 398.10 Td (Br) Tj ET Q q 0 0 0 rg BT 83.63 398.10 Td (et M. DiMar) Tj ET Q q 0 0 0 rg BT 133.53 398.10 Td (co.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.46 398.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 167.13 398.10 Td (.DiMarco has served as our Executive ) Tj ET Q q 0 0 0 rg BT 324.12 398.10 Td (V) Tj ET Q q 0 0 0 rg BT 330.74 398.10 Td (ice President and General Counsel since June 2006 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (our Corporate Secretary since February 2007. From February 2003 until May 2006, Mr) Tj ET Q q 0 0 0 rg BT 398.82 386.10 Td (.DiMarco was a member and from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (October 1995 until January 2003 was an associate at ) Tj ET Q q 0 0 0 rg BT 262.26 374.10 Td (W) Tj ET Q q 0 0 0 rg BT 271.30 374.10 Td (ilson Sonsini Goodrich& Rosati, P) Tj ET Q q 0 0 0 rg BT 411.31 374.10 Td (.C., a law firm. Mr) Tj ET Q q 0 0 0 rg BT 485.75 374.10 Td (.DiMarco ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (received a Bachelor's degree from the University of California at Irvine and a Juris Doctorate degree from the Law Center at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (the University of Southern California. Mr) Tj ET Q q 0 0 0 rg BT 216.08 350.10 Td (. DiMarco also serves on the NASDAQ Listing and Hearing Review Council.) 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53.00 485.42 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 83 484.9833984375 m 262.1064453125 484.9833984375 l s q 0 0 1 rg BT 83.00 486.32 Td (Quarterly Financial Information \(Unaudited\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 628.0833984375 m 559 628.0833984375 l s q 0 0 1 rg BT 549.00 629.42 Td (70) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 613.0833984375 m 559 613.0833984375 l s q 0 0 1 rg BT 549.00 614.42 Td (71) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 589.0833984375 m 559 589.0833984375 l s q 0 0 1 rg BT 549.00 590.42 Td (72) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 564.0833984375 m 559 564.0833984375 l s q 0 0 1 rg BT 549.00 565.42 Td (73) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 539.0833984375 m 559 539.0833984375 l s q 0 0 1 rg BT 549.00 540.42 Td (74) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 514.0833984375 m 559 514.0833984375 l s q 0 0 1 rg BT 549.00 515.42 Td (75) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 499.0833984375 m 559 499.0833984375 l s q 0 0 1 rg BT 549.00 500.42 Td (77) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 544 484.0833984375 m 559 484.0833984375 l s q 0 0 1 rg BT 544.00 485.42 Td (109) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 137 0 obj <>] /Rotate 0 /Contents 138 0 R>> endobj 138 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (66) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 742.25 Td (2. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 122.00 742.25 Td (Consolidated Financial Statement Schedules) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 Td (Financial statement schedules have been omitted because they are either not required, not applicable or the information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (required to be set forth therein is included in the Consolidated Financial Statements hereto.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 690.25 Td (3. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 122.00 690.25 Td (Exhibits ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 658.75 m 100 658.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 670.98 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 662.98 Td (Numbers) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 106.50 662.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 116.50 662.98 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 649.32 Td (2.1*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 649.32 Td (Mer) Tj ET Q q 0 0 0 rg BT 132.98 649.32 Td (ger ) Tj ET Q q 0 0 0 rg BT 147.70 649.32 Td (Agreement, dated as of March16, 2016, by and among the Company) Tj ET Q q 0 0 0 rg BT 423.64 649.32 Td (, Rembrandt Mer) Tj ET Q q 0 0 0 rg BT 492.06 649.32 Td (ger Sub Corp. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 639.32 Td (and Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 182.97 639.32 Td (T) Tj ET Q q 0 0 0 rg BT 188.38 639.32 Td (echnologies Inc. \(previously filed as Exhibit2.1 to the Current Report on Form8-K filed on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 629.32 Td (March16, 2016\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 616.32 Td (3.1*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 616.32 Td (Restated and Amended Certificate of Incorporation. \(Previously filed as Exhibit3.1 to Form10-K for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 606.32 Td (fiscal year ended September29, 1990\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 591.32 Td (3.2*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 591.32 Td (Certificate of Amendment of Restated and Amended Certificate of Incorporation of Coherent,Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 581.32 Td (\(Previously filed as Exhibit3.2 to Form10-K for the fiscal year ended September28, 2002\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 566.32 Td (3.3*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 566.32 Td (Bylaws. \(Previously filed as Exhibit3.1 to Form8-K, filed on December 12, 2012\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 551.32 Td (10.1*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 551.32 Td (Amended and Restated Employee Stock Purchase Plan. \(Previously filed as Exhibit10.1 to FormS-8 filed on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 541.32 Td (June 12, 2012\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 524.93 Td (10.2*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 524.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 526.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 526.32 Td (Coherent Employee Retirement and Investment Plan. \(Previously filed as Exhibit10.23 to Form8,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 516.32 Td (Amendment No.1 to Annual Report on Form10-K for the fiscal year ended September25, 1982\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 501.32 Td (10.3*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 501.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 501.32 Td (1998 Director Option Plan. \(Previously filed as AppendixB to Schedule14A filed February28, 2006\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 484.93 Td (10.4*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 484.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 486.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 486.32 Td (2001 Stock Plan. \(Previously filed as Exhibit10.1 to Form10-Q for the quarter ended March29, 2008\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 469.93 Td (10.5*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 469.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 471.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 471.32 Td (Change of Control Severance Plan, as amended and restated effective December7, 2012. \(Previously filed as) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 461.32 Td (Exhibit10.1 to Form8-K, filed on December 17, 2014\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 444.93 Td (10.6*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 444.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 446.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 445.42 Td (Variable Compensation Plan, as amended. \(Previously filed as Exhibit 10.7 to Form 10-K for the fiscal year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 435.42 Td (ended October 1, 2011\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 419.93 Td (10.7*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 419.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 421.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 420.42 Td (Fiscal 2015 Variable Compensation Plan Payout Scale \(Previously filed as Exhibit 10.1 to Form 10-Q filed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 410.42 Td (February 10, 2016\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 54.75 385.88 Td (10.8***) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 385.88 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 396.32 Td (Fiscal 2016 ) Tj ET Q q 0 0 0 rg BT 165.21 396.32 Td (V) Tj ET Q q 0 0 0 rg BT 171.32 396.32 Td (ariable Compensation Plan Payout Scale \(Previously filed as Exhibit 10.2 to Form 10-Q filed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 386.32 Td (February 10, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 376.37 Td (\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 65.75 360.88 Td (10.9*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 360.88 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 360.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 370.42 Td (Supplementary Retirement Plan. \(Previously filed as Exhibit10.5 to Form10-Q for the quarter ended April1,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 360.42 Td (2006\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.25 335.88 Td (10.10*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 335.88 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 335.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 345.42 Td (2005 Deferred Compensation Plan. \(Previously filed as Exhibit10.1 to Form10-Q for the fiscal quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 335.42 Td (ended December 31, 2011\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.65 310.88 Td (10.1) Tj ET Q q 0 0 0 rg BT 79.49 310.88 Td (1*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.49 310.88 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 310.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 320.42 Td (Form of 2001 Stock Plan Terms and Conditions of Restricted Stock Units. \(Previously filed as Exhibit10.1 to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 310.42 Td (Form8-K filed on November27, 2009\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.25 285.88 Td (10.12*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 285.88 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 285.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 295.42 Td (Form of 2001 Stock Plan Amended Global Stock Option Agreement. \(Previously filed as Exhibit10.2 to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 285.42 Td (Form8-K filed on November27, 2009\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 66.25 260.67 Td (10.13*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 260.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 270.42 Td (Amended and Restated Loan Agreement by and between Coherent,Inc. and Union Bank of California, N.A.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 260.42 Td (dated as of May 30, 2012. \(Previously filed as Exhibit10.1 to Form8-K filed on June 5, 2012\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 66.25 235.67 Td (10.14*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 235.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 245.42 Td (Amended and Restated Promissory Note \(Base Rate\) \(Previously filed as Exhibit 10.2 to Form 8-K filed on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 235.42 Td (June 5, 2012\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 66.25 210.67 Td (10.15*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 210.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 220.42 Td (Second Lease Amendment by and between Coherent,Inc. and 5200 Patrick Henry AssociatesLLC dated as of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 210.42 Td (July23, 2010. \(Previously filed as Exhibit10.1 to Form10-Q for the quarter ended July3, 2010\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 66.25 185.67 Td (10.16*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 185.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 195.42 Td (Form of Indemnification Agreement \(Previously filed as Exhibit10.18 to Form10-K for the year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 185.42 Td (October 2, 2010\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.75 160.67 Td (10.17*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 170.42 Td (2011 Equity Incentive Plan. \(incorporated by reference to Exhibit10.1 to the Company's Registration) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 160.42 Td (Statement on FormS-8 \(File No.333-174019\) filed on May6, 2011\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.75 135.67 Td (10.18*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 145.42 Td (Form of RSU Agreement for members of the Board of Directors under the Company's 2011 Equity Incentive) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 135.42 Td (Plan. \(Previously filed as Exhibit 10.1 to Form 10-Q for the fiscal quarter ended July 2, 2011\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.75 110.67 Td (10.19*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 120.42 Td (Form of Option Agreement for members of the Board of Directors under the Company's 2011 Equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 110.42 Td (Incentive Plan. \(Previously filed as Exhibit 10.1 to Form 10-Q for the fiscal quarter ended July 2, 2011\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.75 85.67 Td (10.20*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 96.32 Td (Form of Time-Based RSU Agreement under the 2011 Equity Incentive Plan. \(Previously filed as Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 86.32 Td (10.23 to Form 10-K for the fiscal year ended October 1, 2011\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 71.32 Td (10.21*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 71.32 Td (Form of Performance RSU Agreement under the 2011 Equity Incentive Plan, as amended November 8, 2013.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 61.32 Td (\(Previously filed as Exhibit 10.1 to Form 8-K filed November 14, 2013\)) Tj ET Q endstream endobj 139 0 obj <>] /Rotate 0 /Contents 140 0 R>> endobj 140 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 738.07 Td (10.22*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 738.07 Td (First Modification Agreement to Loan and Security Agreement with Union Bank, N.A., dated May 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 728.07 Td (\(Previously filed as Exhibit 10.1 to Form 8-K filed June 3, 2014\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 713.07 Td (10.23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 713.07 Td (Form of Performance RSU ) Tj ET Q q 0 0 0 rg BT 226.49 713.07 Td (Agreement under the 201) Tj ET Q q 0 0 0 rg BT 328.02 713.07 Td (1 Equity Plan \(Previously filed as Exhibit 10.25 to Form ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 703.07 Td (10-K filed December 1, 2015\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 685.07 Td (10.24*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 685.07 Td (Offer letter with Kevin Palatnik \(Previously filed as Exhibit 10.1 to Form 10-Q filed February 10, 2016\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 670.07 Td (10.25*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 670.07 Td (Credit Agreement, dated as of November7, 2016, by and among Coherent,Inc., Coherent Holding GmbH,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 660.07 Td (the guarantors from time to time party thereto, the lenders from time to time party thereto, Barclays Bank) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 650.07 Td (PLC, as Administrative Agent and L/C Issuer, Bank of America, N.A., as L/C Issuer, and The Bank of Tokyo-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 640.07 Td (Mitsubishi UJF,Ltd., as L/C Issuer \(Previously filed as Exhibit 10.1 to Form 8-K filed November 8, 2016\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 625.07 Td (10.26*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 625.07 Td (Form of Performance RSU Award Terms \(Previously filed as Exhibit 10.23 to Form 10-K filed December 1,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 615.07 Td (2015\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 600.07 Td (10.27*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 600.07 Td (Transition Service Agreement, dated February 22, 2016, between the Company and Helene Simonet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 590.07 Td (\(Previously filed as Exhibit 10.3 to Form 10-Q filed May 11, 2016\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 575.07 Td (21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 575.07 Td (Subsidiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 560.07 Td (23.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 560.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 560.07 Td (Consent of Independent Registered Public Accounting Firm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 545.07 Td (24.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 545.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 545.07 Td (Power of Attorney \(see signature page\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 530.07 Td (31.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 519.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 529.17 Td (Certification of Chief Executive Officer pursuant to Exchange Act Rule13a-14\(a\)/15d-14\(a\), as adopted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 519.17 Td (pursuant to Section302 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 505.07 Td (31.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 493.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 503.17 Td (Certification of Chief Financial Officer pursuant to Exchange Act Rule13a-14\(a\)/15d-14\(a\), as adopted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 493.17 Td (pursuant to Section302 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 479.07 Td (32.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 468.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 478.17 Td (Certification of Chief Executive Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 468.17 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 454.07 Td (32.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 443.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 453.17 Td (Certification of Chief Financial Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 443.17 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 427.00 Td (__________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 406.17 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 406.17 Td (These exhibits were previously filed with the Commission as indicated and are incorporated herein by reference.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 52.00 390.68 Td (**) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 392.07 Td (Portions of this exhibit are redacted and confidential treatment has been requested.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 52.00 375.68 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 376.17 Td (Identifies management contract or compensatory plans or arrangements required to be filed as an exhibit.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 141 0 obj <>] /Rotate 0 /Contents 142 0 R>> endobj 142 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (68) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.85 742.25 Td (SIGNA) Tj ET Q q 0 0 0 rg BT 304.78 742.25 Td (TURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 Td (Pursuant to the requirements of Section13 or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 390.87 722.25 Td (Act of 1934, the registrant has duly caused ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (this report to be signed on its behalf by the undersigned, thereunto duly authorized.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 663.75 m 531.5 663.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.00 682.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.00 682.32 Td (COHERENT,INC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 668.32 Td (Date:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.00 668.32 Td (November 29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.00 668.32 Td (/s/JOHN R. AMBROSEO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.00 654.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.00 654.32 Td (By:John R. Ambroseo) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.00 640.32 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 249.00 640.31 Td (President and Chief Executive Officer) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 250.40 594.65 Td (POWER OF) Tj ET Q q 0 0 0 rg BT 304.19 594.65 Td ( ) Tj ET Q q 0 0 0 rg BT 306.14 594.65 Td (A) Tj ET Q q 0 0 0 rg BT 312.62 594.65 Td (TT) Tj ET Q q 0 0 0 rg BT 325.78 594.65 Td (ORNEY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 574.65 Td (KNOW) Tj ET Q q 0 0 0 rg BT 104.92 574.65 Td ( ) Tj ET Q q 0 0 0 rg BT 106.87 574.65 Td (ALL) Tj ET Q q 0 0 0 rg BT 125.94 574.65 Td ( PERSONS BY) Tj ET Q q 0 0 0 rg BT 188.37 574.65 Td ( ) Tj ET Q q 0 0 0 rg BT 190.68 574.65 Td (THESE PRESENTS, that each person whose signature appears below hereby constitutes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.65 Td (and appoints John R. ) Tj ET Q q 0 0 0 rg BT 135.83 562.65 Td (Ambroseo and Kevin Palatnik, and each of them individually) Tj ET Q q 0 0 0 rg BT 380.41 562.65 Td (, as his attorney-in-fact, each with full power ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.65 Td (of substitution, for him in any and all capacities to sign any and all amendments to this Report on Form10-K, and to file the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.65 Td (same with, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.65 Td (hereby ratifying and confirming all that said attorney-in-fact, or his or her substitute, may do or cause to be done by virtue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.65 Td (hereof.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 494.65 Td (Pursuant to the requirements of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 300.05 494.65 Td (Act of 1934, this report has been signed below by the following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.65 Td (persons on behalf of the registrant and in the capacities and on the dates indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 449.15 m 294.5 449.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 409.15 m 294.5 409.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 369.15 m 294.5 369.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 329.15 m 294.5 329.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 289.15 m 294.5 289.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 249.14999999999998 m 294.5 249.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 209.14999999999998 m 294.5 209.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 169.14999999999998 m 294.5 169.14999999999998 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.15 453.82 Td (/s/JOHN R. AMBROSEO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.40 439.72 Td (John R. ) Tj ET Q q 0 0 0 rg BT 166.91 439.72 Td (Ambroseo) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.90 429.72 Td (\(Director and Principal Executive Of) Tj ET Q q 0 0 0 rg BT 234.44 429.72 Td (ficer\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 428.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.60 439.72 Td (November 29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.05 429.72 Td (Date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.70 413.82 Td (/s/KEVIN PALATNIK) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.60 399.72 Td (Kevin Palatnik) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.85 389.72 Td (\(Principal Financial and ) Tj ET Q q 0 0 0 rg BT 179.88 389.72 Td (Accounting Of) Tj ET Q q 0 0 0 rg BT 239.41 389.72 Td (ficer\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 388.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.60 399.72 Td (November 29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.05 389.72 Td (Date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.15 373.82 Td (/s/JAY T. FLATLEY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.60 358.82 Td (Jay T. Flatley) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.50 348.82 Td (\(Director\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.60 359.72 Td (November 29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.05 349.72 Td (Date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.05 333.82 Td (/s/SUSAN M. JAMES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.10 318.82 Td (Susan M. James) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.50 308.82 Td (\(Director\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.60 319.72 Td (November 29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.05 309.72 Td (Date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.55 293.82 Td (/s/L. WILLIAM KRAUSE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.40 279.72 Td (L. ) Tj ET Q q 0 0 0 rg BT 145.33 279.72 Td (W) Tj ET Q q 0 0 0 rg BT 154.37 279.72 Td (illiam Krause) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.50 269.72 Td (\(Director\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 268.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.60 279.72 Td (November 29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.05 269.72 Td (Date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.60 253.82 Td (/s/GARRY W. ROGERSON) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.75 239.72 Td (Garry ) Tj ET Q q 0 0 0 rg BT 158.39 239.72 Td (W) Tj ET Q q 0 0 0 rg BT 166.91 239.72 Td (. Rogerson) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.50 229.72 Td (\(Director\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 228.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.60 239.72 Td (November 29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.05 229.72 Td (Date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.70 213.82 Td (/s/STEVE SKAGGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.65 199.72 Td (Steve Skaggs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.50 189.72 Td (\(Director\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 188.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.60 199.72 Td (November 29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.05 189.72 Td (Date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.80 173.82 Td (/s/SANDEEP VIJ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.30 159.72 Td (Sandeep ) Tj ET Q q 0 0 0 rg BT 183.50 159.72 Td (V) Tj ET Q q 0 0 0 rg BT 190.12 159.72 Td (ij) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.50 149.72 Td (\(Director\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 148.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.60 159.72 Td (November 29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.05 149.72 Td (Date) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 143 0 obj <>] /Rotate 0 /Contents 144 0 R>> endobj 144 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (69) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 184.90 742.25 Td (ST) Tj ET Q q 0 0 0 rg BT 196.39 742.25 Td (A) Tj ET Q q 0 0 0 rg BT 202.87 742.25 Td (TEMENT) Tj ET Q q 0 0 0 rg BT 246.03 742.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 262.04 742.25 Td ( MANAGEMENT) Tj ET Q q 0 0 0 rg BT 339.91 742.25 Td ( RESPONSIBILITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 Td (Management is responsible for the preparation, integrity) Tj ET Q q 0 0 0 rg BT 298.56 722.25 Td (, and objectivity of the Consolidated Financial Statements and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (other financial information included in the Company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.25 710.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.25 710.25 Td ( ) Tj ET Q q 0 0 0 rg BT 291.20 710.25 Td (Annual Report on Form10-K. ) Tj ET Q q 0 0 0 rg BT 414.89 710.25 Td (The Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (Statements have been prepared in conformity with U.S. generally accepted accounting principles and reflect the ef) Tj ET Q q 0 0 0 rg BT 507.14 698.25 Td (fects of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (certain estimates and judgments made by management. It is critical for investors and other readers of the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.25 Td (Financial Statements to have confidence that the financial information that we provide is timely) Tj ET Q q 0 0 0 rg BT 432.29 674.25 Td (, complete, relevant and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.25 Td (accurate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 642.25 Td (Management, with oversight by the Company's Board of Directors, has established and maintains a corporate culture that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.25 Td (requires that the Company's af) Tj ET Q q 0 0 0 rg BT 171.59 630.25 Td (fairs be conducted to the highest standards of business ethics and conduct. Management also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.25 Td (maintains a system of internal controls that is designed to provide reasonable assurance that assets are safeguarded and that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.25 Td (transactions are properly recorded and executed in accordance with management's authorization. ) Tj ET Q q 0 0 0 rg BT 438.67 606.25 Td (This system is regularly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.25 Td (monitored through direct management review) Tj ET Q q 0 0 0 rg BT 232.62 594.25 Td (, as well as extensive audits conducted by internal auditors throughout the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.25 Td (or) Tj ET Q q 0 0 0 rg BT 58.15 582.25 Td (ganization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 562.25 Td (Our Consolidated Financial Statements as of and for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.98 562.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.69 562.25 Td ( have been audited by Deloitte& ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 550.25 Td (oucheLLP) Tj ET Q q 0 0 0 rg BT 98.46 550.25 Td (, an independent registered public accounting firm. ) Tj ET Q q 0 0 0 rg BT 304.59 550.25 Td (Their audit was conducted in accordance with the standards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (the Public Company ) Tj ET Q q 0 0 0 rg BT 133.61 538.25 Td (Accounting Oversight Board \(United States\) and included an integrated audit under such standards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 518.25 Td (The ) Tj ET Q q 0 0 0 rg BT 91.50 518.25 Td (Audit Committee of the Board of Directors meets regularly with management, the internal auditors and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (independent registered public accounting firm to review accounting, reporting, auditing and internal control matters. ) Tj ET Q q 0 0 0 rg BT 517.72 506.25 Td (The ) Tj ET Q q 0 0 0 rg BT 535.22 506.25 Td (Audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (Committee has direct and private access to both internal and external auditors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 474.25 Td (See Item9A) Tj ET Q q 0 0 0 rg BT 123.43 474.25 Td ( for Management's Report on Internal Control Over Financial Reporting.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 454.25 Td (e are committed to enhancing shareholder value and fully understand and embrace our fiduciary oversight ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (responsibilities. ) Tj ET Q q 0 0 0 rg BT 115.37 442.25 Td (W) Tj ET Q q 0 0 0 rg BT 124.01 442.25 Td (e are dedicated to ensuring that our high standards of financial accounting and reporting as well as our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (underlying system of internal controls are maintained. Our culture demands integrity and we have the highest confidence in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (processes, internal controls, and people, who are objective in their responsibilities and operate under the highest level of ethical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (standards.) 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AMBROSEO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.00 377.42 Td (/s/KEVIN PALATNIK) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 362.47 Td (John R. ) Tj ET Q q 0 0 0 rg BT 84.51 362.47 Td (Ambroseo) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.00 352.46 Td (Pr) Tj ET Q q 0 0 0 rg BT 61.63 352.46 Td (esident and Chief Executive Officer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 363.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.00 362.47 Td (Kevin Palatnik) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 319.00 352.46 Td (Executive V) Tj ET Q q 0 0 0 rg BT 365.72 352.46 Td (ice Pr) Tj ET Q q 0 0 0 rg BT 389.51 352.46 Td (esident and Chief Financial Officer) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 145 0 obj <>] /Rotate 0 /Contents 146 0 R>> endobj 146 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (70) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 135.40 742.25 Td (REPOR) Tj ET Q q 0 0 0 rg BT 170.05 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 176.54 742.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 192.55 742.25 Td ( INDEPENDENT) Tj ET Q q 0 0 0 rg BT 267.66 742.25 Td ( REGISTERED PUBLIC ) Tj ET Q q 0 0 0 rg BT 377.97 742.25 Td (ACCOUNTING FIRM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 702.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 702.25 Td (o the Board of Directors and Stockholders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 690.25 Td (Coherent,Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (Santa Clara, CA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 658.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 658.25 Td (e have audited the accompanying consolidated balance sheets of Coherent,Inc. and its subsidiaries \(collectively) Tj ET Q q 0 0 0 rg BT 529.61 658.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td ("Company"\) as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.54 646.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.25 646.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.69 646.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.39 646.25 Td (, and the related consolidated statements of operations, comprehensive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (income, stockholders' equity) Tj ET Q q 0 0 0 rg BT 163.63 634.25 Td (, and cash flows for each of the three years in the period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.58 634.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.29 634.25 Td (. ) Tj ET Q q 0 0 0 rg BT 486.11 634.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (opinion on these consolidated financial statements based on our audits.) 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.25 Td (/s/DELOITTE & ) Tj ET Q q 0 0 0 rg BT 122.86 386.25 Td (T) Tj ET Q q 0 0 0 rg BT 128.79 386.25 Td (OUCHE LLP) Tj ET Q q 0 0 0 rg BT 183.14 386.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.25 Td (San Jose, California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.25 Td (November29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.71 342.25 Td ( ) Tj ET Q endstream endobj 147 0 obj <>] /Rotate 0 /Contents 148 0 R>> endobj 148 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (71) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 742.25 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 742.25 Td (,INC. 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10.00 Tf ET q 0 0 0 rg BT 224.35 661.43 Td (ASSETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 661.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 661.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 646.42 Td (Current assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 646.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 646.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 631.42 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 631.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 631.43 Td (354,347) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 631.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 631.42 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 616.42 Td (Short-term investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 616.43 Td (45,606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 616.42 Td (194,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 601.42 Td (Accounts receivablenet of allowances of $2,420 in 2016 and $3,015 in 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 601.43 Td (165,715) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 601.42 Td (142,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 586.42 Td (Inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 586.43 Td (212,898) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 586.42 Td (156,614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 571.42 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 571.43 Td (37,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 571.42 Td (28,294) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 556.42 Td (Total current assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 556.43 Td (815,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 556.42 Td (652,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 541.42 Td (Property and equipment, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 541.43 Td (127,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 541.42 Td (102,445) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 526.42 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 526.43 Td (101,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 526.42 Td (101,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 511.42 Td (Intangible assets, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 511.43 Td (13,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 511.42 Td (22,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 496.42 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 496.43 Td (102,734) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 496.42 Td (89,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 481.42 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 481.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.10 481.43 Td (1,161,148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 481.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 481.42 Td (968,947) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 135.00 466.43 Td (LIABILITIES AND STOCKHOLDERS' EQUITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 466.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 466.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 451.42 Td (Current liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 451.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 451.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 436.42 Td (Short term borrowings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 436.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 436.43 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 436.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 566.15 436.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 421.42 Td (Accounts payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 421.43 Td (45,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 421.42 Td (33,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 406.42 Td (Income taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 406.43 Td (19,870) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 406.42 Td (4,279) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 391.42 Td (Other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 391.43 Td (116,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 391.42 Td (84,932) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 376.42 Td (Total current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 376.43 Td (201,494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 376.42 Td (122,590) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 361.42 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 361.43 Td (48,826) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 361.42 Td (49,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 346.42 Td (Commitments and contingencies \(Note10\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 331.42 Td (Stockholders' equity:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 331.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 316.42 Td (Common stock, par value $.01:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 316.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 316.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 301.42 Td (Authorized500,000 shares;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 286.42 Td (Outstanding24,324 shares in 2016 and 23,970 shares in 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.15 286.43 Td (242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.15 286.42 Td (238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 271.42 Td (Additional paid-in capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 271.43 Td (151,298) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 271.42 Td (128,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 256.42 Td (Accumulated other comprehensive loss) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.30 256.48 Td (\(5,300) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 512.15 256.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 256.42 Td (\(9,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 576.15 256.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 241.42 Td (Retained earnings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 241.43 Td (764,588) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 241.42 Td (677,086) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 226.42 Td (Total stockholders' equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 226.43 Td (910,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 226.42 Td (796,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 211.42 Td (Total liabilities and stockholders' equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 211.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.10 211.43 Td (1,161,148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 211.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 211.42 Td (968,947) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.35 187.25 Td (See accompanying Notes to Consolidated Financial Statements.) 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332.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 528.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 528.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 528.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 528.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 528.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 498.75 332.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 498.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 498.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 498.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 498.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 498.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 468.75 332.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 468.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 468.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 468.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 438.75 332.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 438.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 438.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 438.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 438.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 438.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 408.75 332.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 408.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 408.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 408.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 408.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 408.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 378.75 332.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 378.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 378.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 378.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 378.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 378.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 348.75 332.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 348.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 348.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 348.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 348.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 348.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 318.75 332.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 318.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 318.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 318.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 288.75 332.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 288.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 288.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 288.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 288.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 288.75 58.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 669.75 m 438.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 669.75 m 442.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 669.75 m 499.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 669.75 m 503.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 669.75 m 561.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 648.75 m 438.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 648.75 m 499.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 648.75 m 561.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 618.75 m 438.5 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 618.75 m 499.5 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 618.75 m 561.5 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 603.75 m 438.5 603.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 603.75 m 499.5 603.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 603.75 m 561.5 603.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 513.75 m 438.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 513.75 m 499.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 513.75 m 561.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 498.75 m 438.5 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 498.75 m 499.5 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 498.75 m 561.5 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 423.75 m 438.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 423.75 m 499.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 423.75 m 561.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 408.75 m 438.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 408.75 m 499.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 408.75 m 561.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 378.75 m 438.5 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 378.75 m 499.5 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 378.75 m 561.5 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 362.75 m 438.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 364.75 m 438.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 362.75 m 499.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 364.75 m 499.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 362.75 m 561.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 364.75 m 561.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 332.75 m 438.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 334.75 m 438.5 334.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 332.75 m 499.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 334.75 m 499.5 334.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 332.75 m 561.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 334.75 m 561.5 334.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 317.75 m 438.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 319.75 m 438.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 317.75 m 499.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 319.75 m 499.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 317.75 m 561.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 319.75 m 561.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 287.75 m 438.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 289.75 m 438.5 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 274.75 m 438.5 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 272.75 m 438.5 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 287.75 m 499.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 289.75 m 499.5 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 274.75 m 499.5 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 272.75 m 499.5 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 287.75 m 561.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 289.75 m 561.5 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 274.75 m 561.5 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 272.75 m 561.5 272.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 674.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.95 673.98 Td (Year Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 653.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.55 660.98 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.50 652.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.55 660.98 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.50 652.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.60 660.98 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.00 652.98 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 638.43 Td (Net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 638.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 638.43 Td (857,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 638.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 638.42 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 638.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 638.42 Td (794,639) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 623.43 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 623.43 Td (475,993) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 623.42 Td (467,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 623.42 Td (481,249) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 608.43 Td (Gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 608.43 Td (381,392) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 608.42 Td (335,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 608.42 Td (313,390) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 593.43 Td (Operating expenses:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 593.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 593.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 593.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 578.42 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 578.43 Td (81,801) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 578.42 Td (81,455) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 578.42 Td (79,070) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 563.42 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 563.43 Td (169,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 563.42 Td (149,829) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 563.42 Td (154,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 548.42 Td (Gain on business combination) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.65 548.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.80 548.47 Td (\(1,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 548.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 548.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 533.42 Td (Impairment of investment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.65 533.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 533.42 Td (2,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 533.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 518.42 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 518.43 Td (2,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 518.42 Td (2,667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 518.42 Td (3,424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 503.42 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 503.43 Td (253,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 503.42 Td (234,652) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 503.42 Td (236,524) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 488.43 Td (Income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 488.43 Td (127,614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 488.42 Td (100,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 488.42 Td (76,866) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 473.43 Td (Other income \(expense\):) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 473.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 473.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 473.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 458.42 Td (Interest and dividend income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 458.43 Td (1,143) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 458.42 Td (595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 458.42 Td (397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 443.42 Td (Interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.80 443.48 Td (\(1,346) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.65 443.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.30 443.47 Td (\(48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 443.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 443.47 Td (\(72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 443.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 428.42 Td (Othernet) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.80 428.48 Td (\(4,515) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.65 428.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.80 428.47 Td (\(1,726) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 428.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 428.42 Td (2,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 413.42 Td (Total other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.80 413.48 Td (\(4,718) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.65 413.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.80 413.47 Td (\(1,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 413.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 413.42 Td (2,353) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 398.43 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 398.43 Td (122,896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 398.42 Td (99,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 398.42 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 383.42 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 383.43 Td (35,394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 383.42 Td (23,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 383.42 Td (20,113) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 368.43 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 368.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 368.43 Td (87,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 368.42 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 368.42 Td (59,106) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 353.43 Td (Net income per share:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 353.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 353.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 353.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 338.42 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 338.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.15 338.43 Td (3.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 338.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 338.42 Td (3.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 338.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 338.42 Td (2.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 323.42 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 323.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.15 323.43 Td (3.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 323.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 323.42 Td (3.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 323.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 323.42 Td (2.36) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 308.43 Td (Shares used in computation:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 308.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 308.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 308.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 293.42 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 293.43 Td (24,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 293.42 Td (24,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 293.42 Td (24,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 278.42 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 278.43 Td (24,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 278.42 Td (24,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 278.42 Td (25,076) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.35 254.25 Td (See accompanying Notes to Consolidated Financial Statements.) Tj ET Q endstream endobj 151 0 obj <>] /Rotate 0 /Contents 152 0 R>> endobj 152 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (73) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 742.25 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 742.25 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 742.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 154.75 730.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 214.57 730.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 249.13 730.25 Td (A) Tj ET Q q 0 0 0 rg BT 255.60 730.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 320.52 730.25 Td ( COMPREHENSIVE INCOME) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 710.25 Td (\(In thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 84.50 657.75 250.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 657.75 60.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 657.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 657.75 60.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 657.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 657.75 60.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 84.50 630.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 630.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 630.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 630.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 630.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 630.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 84.50 600.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 600.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 600.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 600.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 600.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 600.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 84.50 560.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 560.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 560.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 560.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 560.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 560.75 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 678.75 m 394.5 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 678.75 m 398.5 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 678.75 m 458.5 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 678.75 m 462.5 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 678.75 m 522.5 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 657.75 m 394.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 657.75 m 458.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 657.75 m 522.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 560.75 m 394.5 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 560.75 m 458.5 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 560.75 m 522.5 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 545.75 m 394.5 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 531.75 m 394.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 529.75 m 394.5 529.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 545.75 m 458.5 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 531.75 m 458.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 529.75 m 458.5 529.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 545.75 m 522.5 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 531.75 m 522.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 529.75 m 522.5 529.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 682.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.95 682.98 Td (Year Ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 662.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.05 669.98 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.00 661.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.05 669.98 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 661.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.60 669.98 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.00 661.98 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 635.42 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.00 635.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 635.43 Td (87,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.00 635.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 635.42 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.00 635.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 635.42 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 620.42 Td (Other comprehensive income \(loss\): ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 234.73 624.95 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.00 620.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 605.42 Td (T) Tj ET Q q 0 0 0 rg BT 101.76 605.42 Td (ranslation adjustment, net of taxes ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 241.17 609.95 Td (\(2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.15 605.43 Td (1,731) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.80 605.47 Td (\(45,624) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.65 605.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.80 605.47 Td (\(19,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 605.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 590.42 Td (Net gain \(loss\) on derivative instruments, net of taxes ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 312.62 594.95 Td (\(3\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.30 590.48 Td (\(28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 590.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 590.42 Td (601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.30 590.47 Td (\(573) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 590.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 575.42 Td (Changes in unrealized gains \(losses\) on available-for) Tj ET Q q 0 0 0 rg BT 307.40 575.42 Td (-sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 565.42 Td (securities, net of taxes ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 187.36 569.95 Td (\(4\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.15 565.43 Td (2,510) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 565.42 Td (828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.30 565.47 Td (\(10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 565.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.00 550.42 Td (Other comprehensive income \(loss\), net of tax) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.15 550.43 Td (4,213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.80 550.47 Td (\(44,195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.65 550.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.80 550.47 Td (\(19,768) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 550.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 535.42 Td (Comprehensive income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.00 535.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 535.43 Td (91,715) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.00 535.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 535.42 Td (32,214) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.00 535.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 535.42 Td (39,338) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 499.25 Td (\(1\) Reclassification adjustments were not significant during fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.08 499.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.08 499.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.08 499.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.08 499.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.52 499.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.52 499.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 479.25 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 99.98 479.25 Td (T) Tj ET Q q 0 0 0 rg BT 105.39 479.25 Td (ax expenses \(benefits\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.57 479.25 Td ($279) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.57 479.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.57 479.25 Td ($\(1,768\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.73 479.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.17 479.25 Td ($250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.17 479.25 Td ( were provided on translation adjustments during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.90 479.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.90 479.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 467.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.50 467.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.94 467.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.94 467.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 220.60 467.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 447.25 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 99.98 447.25 Td (T) Tj ET Q q 0 0 0 rg BT 105.39 447.25 Td (ax expenses \(benefits\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.57 447.25 Td ($\(17\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.23 447.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.23 447.25 Td ($349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.23 447.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.67 447.25 Td ($\(332\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.33 447.25 Td ( were provided on net gain \(loss\) on derivative instruments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 435.25 Td (during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.26 435.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.26 435.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.26 435.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.26 435.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.70 435.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.70 435.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 298.36 435.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 415.25 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 99.63 415.25 Td (T) Tj ET Q q 0 0 0 rg BT 105.04 415.25 Td (ax ) Tj ET Q q 0 0 0 rg BT 116.59 415.25 Td (expenses ) Tj ET Q q 0 0 0 rg BT 154.81 415.25 Td (\(benefits\) ) Tj ET Q q 0 0 0 rg BT 195.24 415.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.69 415.25 Td ($1,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.19 415.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.81 415.25 Td ($486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.81 415.25 Td ( ) Tj ET Q q 0 0 0 rg BT 259.93 415.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.48 415.25 Td ($\(7\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.14 415.25 Td ( ) Tj ET Q q 0 0 0 rg BT 295.26 415.25 Td (were ) Tj ET Q q 0 0 0 rg BT 316.81 415.25 Td (provided ) Tj ET Q q 0 0 0 rg BT 354.47 415.25 Td (on ) Tj ET Q q 0 0 0 rg BT 366.59 415.25 Td (changes ) Tj ET Q q 0 0 0 rg BT 400.92 415.25 Td (in ) Tj ET Q q 0 0 0 rg BT 410.81 415.25 Td (unrealized ) Tj ET Q q 0 0 0 rg BT 454.57 415.25 Td (gains ) Tj ET Q q 0 0 0 rg BT 477.80 415.25 Td (\(losses\) ) Tj ET Q q 0 0 0 rg BT 510.47 415.25 Td (on ) Tj ET Q q 0 0 0 rg BT 522.59 415.25 Td (available-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 403.25 Td (for) Tj ET Q q 0 0 0 rg BT 119.96 403.25 Td (-sale ) Tj ET Q q 0 0 0 rg BT 141.34 403.25 Td (securities ) Tj ET Q q 0 0 0 rg BT 181.60 403.25 Td (during ) Tj ET Q q 0 0 0 rg BT 210.21 403.25 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.36 403.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.36 403.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.36 403.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.36 403.25 Td ( ) Tj ET Q q 0 0 0 rg BT 281.86 403.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.80 403.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.80 403.25 Td (, ) Tj ET Q q 0 0 0 rg BT 323.80 403.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 371.46 403.25 Td (.) 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522.75 m 558.5 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 522.75 m 304.5 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 522.75 m 353.5 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 522.75 m 402.5 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 522.75 m 458.5 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 522.75 m 507.5 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 522.75 m 558.5 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 423.75 m 304.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 423.75 m 353.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 423.75 m 402.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 423.75 m 458.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 423.75 m 507.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 423.75 m 558.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 423.75 m 304.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 423.75 m 353.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 423.75 m 402.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 423.75 m 458.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 423.75 m 507.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 423.75 m 558.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 350.75 m 304.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 350.75 m 353.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 350.75 m 402.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 350.75 m 507.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 350.75 m 558.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 350.75 m 304.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 338.75 m 304.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 336.75 m 304.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 350.75 m 353.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 338.75 m 353.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 336.75 m 353.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 350.75 m 402.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 338.75 m 402.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 336.75 m 402.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 350.75 m 458.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 338.75 m 458.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 336.75 m 458.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 350.75 m 507.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 338.75 m 507.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 336.75 m 507.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 350.75 m 558.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 338.75 m 558.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 336.75 m 558.5 336.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.70 630.98 Td (Common) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 271.90 622.98 Td (Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 270.00 614.98 Td (Shar) Tj ET Q q 0 0 0 rg BT 286.30 614.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.70 638.98 Td (Common) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.90 630.98 Td (Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.35 622.98 Td (Par) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.85 614.98 Td (V) Tj ET Q q 0 0 0 rg BT 325.89 614.98 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.15 630.98 Td (Add.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.05 622.98 Td (Paid-in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.80 614.98 Td (Capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.00 646.98 Td (Accum.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.85 638.98 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.55 630.98 Td (Comp.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.30 622.98 Td (Income) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.55 614.98 Td (\(Loss\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.15 622.98 Td (Retained) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.90 614.98 Td (Earnings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.75 614.98 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 55.00 601.98 Td (Balances, September) Tj ET Q q 0 0 0 rg BT 125.96 601.98 Td ( 28, 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.65 601.98 Td (24,464) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.00 601.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.65 601.98 Td (244) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.00 601.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.25 601.98 Td (162,253) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 409.00 601.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.65 601.98 Td (54,450) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.00 601.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.60 601.98 Td (541,571) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.00 601.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 529.25 601.98 Td (758,518) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 589.00 Td (Common stock issued under stock plans, net of shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 581.00 Td (withheld for employee taxes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.65 581.00 Td (486) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.65 581.00 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.25 581.00 Td (2,870) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.65 581.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.65 581.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 581.00 Td (2,874) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 566.00 Td (Tax impact from employee stock options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.65 566.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.65 566.42 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.60 566.00 Td (\(52) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.30 566.00 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 566.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 566.42 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.60 566.00 Td (\(52) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.30 566.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 553.00 Td (Stock-based compensation) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.65 553.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.65 553.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.25 553.00 Td (18,971) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.65 553.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.65 553.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 553.00 Td (18,971) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 540.00 Td (Net income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.65 540.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.65 540.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.30 540.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.65 540.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.65 540.00 Td (59,106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 540.00 Td (59,106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 527.00 Td (Other comprehensive income, net of tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.65 527.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.65 527.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.30 527.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.95 527.00 Td (\(19,768) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.65 527.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.65 527.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 530.60 527.00 Td (\(19,768) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.30 527.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 55.00 513.98 Td (Balances, September) Tj ET Q q 0 0 0 rg BT 125.96 513.98 Td ( 27, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.65 513.98 Td (24,950) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.00 513.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.65 513.98 Td (248) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.00 513.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.25 513.98 Td (184,042) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 409.00 513.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.65 513.98 Td (34,682) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.00 513.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.60 513.98 Td (600,677) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.00 513.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 529.25 513.98 Td (819,649) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 501.00 Td (Common stock issued under stock plans, net of shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 493.00 Td (withheld for employee taxes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.65 493.00 Td (322) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.65 493.00 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.25 493.00 Td (2,002) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.65 493.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.65 493.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 493.00 Td (2,006) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 480.00 Td (Tax impact from employee stock options) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.65 480.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.65 480.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.60 480.00 Td (\(667) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.30 480.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.65 480.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.65 480.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.60 480.00 Td (\(667) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.30 480.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 467.00 Td (Repurchases of common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 279.95 467.00 Td (\(1,302) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.65 467.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 338.95 467.00 Td (\(14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.65 467.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.60 467.00 Td (\(75,013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.30 467.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.65 467.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.65 467.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 530.60 467.00 Td (\(75,027) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.30 467.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 454.00 Td (Stock-based compensation) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.65 454.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.65 454.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.25 454.00 Td (18,243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.65 454.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.65 454.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 454.00 Td (18,243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 441.00 Td (Net income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.65 441.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.65 441.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.30 441.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.65 441.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.65 441.00 Td (76,409) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 441.00 Td (76,409) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 428.00 Td (Other comprehensive loss, net of tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.65 428.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.65 428.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.30 428.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.95 428.00 Td (\(44,195) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.65 428.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.65 428.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 530.60 428.00 Td (\(44,195) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.30 428.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 55.00 414.98 Td (Balances, October) Tj ET Q q 0 0 0 rg BT 117.07 414.98 Td ( 3, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.65 414.98 Td (23,970) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.00 414.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.65 414.98 Td (238) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.00 414.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.25 414.98 Td (128,607) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 409.00 414.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.95 414.98 Td (\(9,513) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.65 414.98 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.00 414.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.60 414.98 Td (677,086) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.00 414.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 529.25 414.98 Td (796,418) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 402.00 Td (Common stock issued under stock plans, net of shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 394.00 Td (withheld for employee taxes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.65 394.00 Td (354) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.65 394.00 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.25 394.00 Td (2,402) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.65 394.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.65 394.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 394.00 Td (2,406) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 381.00 Td (Stock-based compensation) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.65 381.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.65 381.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.25 381.00 Td (20,289) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.65 381.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.65 381.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 381.00 Td (20,289) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 368.00 Td (Net income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.65 368.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.65 368.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.30 368.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.65 368.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.65 368.00 Td (87,502) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 368.00 Td (87,502) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.00 355.00 Td (Other comprehensive loss, net of tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.65 355.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.65 355.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.30 355.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.65 355.00 Td (4,213) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.65 355.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 355.00 Td (4,213) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 55.00 341.98 Td (Balances, October) Tj ET Q q 0 0 0 rg BT 117.07 341.98 Td ( 1, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.65 341.98 Td (24,324) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.00 341.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.65 341.98 Td (242) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.00 341.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.25 341.98 Td (151,298) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 409.00 341.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.95 341.98 Td (\(5,300) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.65 341.98 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.00 341.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.60 341.98 Td (764,588) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.00 341.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 529.25 341.98 Td (910,828) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.60 318.25 Td (See accompanying Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 155 0 obj <>] /Rotate 0 /Contents 156 0 R>> endobj 156 0 obj <> stream BT /F1 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Tf ET q 0 0 0 rg BT 440.00 638.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 638.17 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 638.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 638.17 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 623.17 Td (Adjustments to reconcile net income to net cash provided by operating) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 613.17 Td (activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 613.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 613.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 613.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 598.17 Td (Depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 598.18 Td (25,905) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 598.17 Td (24,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 598.17 Td (26,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 583.17 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 583.18 Td (8,450) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 583.17 Td (8,244) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 583.17 Td (9,593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 569.07 Td (Gain on business combination) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 568.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 568.22 Td (\(1,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 568.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 568.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 553.17 Td (Impairment of investment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 553.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 553.17 Td (2,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 553.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 538.17 Td (Stock-based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 538.18 Td (20,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 538.17 Td (18,232) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 538.17 Td (18,897) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 523.17 Td (Deferred income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 523.23 Td (\(9,770) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 523.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 523.17 Td (838) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 523.22 Td (\(8,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 523.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 508.17 Td (Other non-cash expense \(income\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.65 508.18 Td (963) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 508.17 Td (526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 508.22 Td (\(1,364) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 508.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 493.17 Td (Changes in assets and liabilities, net of effect of acquisitions:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 493.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 493.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 493.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 478.17 Td (Accounts receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.80 478.23 Td (\(17,525) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 478.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.80 478.22 Td (\(10,099) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 478.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 478.22 Td (\(5,191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 478.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 463.17 Td (Inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.80 463.23 Td (\(55,708) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 463.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 463.17 Td (6,054) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 463.22 Td (\(6,890) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 463.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 448.17 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 448.23 Td (\(4,855) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 448.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 448.22 Td (\(2,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 448.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 448.17 Td (11,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 433.17 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 433.23 Td (\(1,552) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 433.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 433.17 Td (802) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 433.22 Td (\(3,489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 433.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 418.17 Td (Accounts payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 418.18 Td (9,735) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 418.17 Td (1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 418.22 Td (\(2,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 418.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 403.17 Td (Income taxes payable/receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 403.18 Td (7,384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 403.22 Td (\(6,759) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 403.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 403.22 Td (\(11,373) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 403.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 388.17 Td (Other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 388.18 Td (30,661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 388.17 Td (5,623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 388.22 Td (\(580) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 388.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 373.17 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 373.18 Td (3,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 373.17 Td (120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 373.17 Td (4,907) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 358.18 Td (Net cash provided by operating activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 358.18 Td (105,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 358.17 Td (124,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 358.17 Td (91,379) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 343.18 Td (Cash flows from investing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 328.17 Td (Purchases of property and equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.80 328.23 Td (\(49,327) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 328.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.80 328.22 Td (\(22,163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 328.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 328.22 Td (\(23,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 328.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 313.17 Td (Proceeds from dispositions of property and equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.65 313.18 Td (555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 313.17 Td (1,163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 313.17 Td (585) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 298.17 Td (Purchases of available-for-sale securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.80 298.23 Td (\(180,842) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 298.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 298.22 Td (\(312,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 298.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 298.22 Td (\(280,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 298.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 283.17 Td (Proceeds from sales and maturities of available-for-sale securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 283.18 Td (333,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 283.17 Td (346,059) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 283.17 Td (193,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 268.17 Td (Acquisition of businesses, net of cash acquired) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 268.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 268.22 Td (\(9,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 268.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 268.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 253.18 Td (Net cash provided by \(used in\) investing activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 253.18 Td (103,444) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 253.17 Td (3,167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 253.22 Td (\(109,783) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 253.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 205.00 Td (\(continued\)) Tj ET Q endstream endobj 157 0 obj <>] /Rotate 0 /Contents 158 0 R>> endobj 158 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (76) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 215.45 739.25 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 271.94 739.25 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 299.72 739.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 160.55 721.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 220.37 721.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 254.93 721.25 Td (A) Tj ET Q q 0 0 0 rg BT 261.40 721.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 326.32 721.25 Td ( CASH FLOWS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.00 703.25 Td (\(In thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 661.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 661.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 661.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 661.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 661.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 661.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 631.50 325.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 631.50 57.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 631.50 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 631.50 57.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 631.50 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 631.50 58.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 600.50 325.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 600.50 57.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 600.50 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 600.50 57.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 600.50 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 600.50 58.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 561.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 561.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 561.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 561.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 561.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 561.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 530.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 530.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 530.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 530.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 530.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 530.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 500.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 500.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 500.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 500.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 500.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 500.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 470.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 470.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 470.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 470.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 470.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 470.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 440.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 440.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 440.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 440.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 410.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 410.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 410.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 410.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 410.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 410.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 380.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 380.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 380.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 380.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 380.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 380.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 350.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 350.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 350.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 350.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 350.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 350.50 58.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 682.5 m 435 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 682.5 m 439 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 682.5 m 496 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 682.5 m 500 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 682.5 m 558 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 661.5 m 435 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 661.5 m 496 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 661.5 m 558 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 661.5 m 435 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 661.5 m 496 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 661.5 m 558 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 530.5 m 435 530.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 530.5 m 496 530.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 530.5 m 558 530.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 515.5 m 435 515.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 515.5 m 496 515.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 515.5 m 558 515.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 500.5 m 435 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 500.5 m 496 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 500.5 m 558 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 470.5 m 435 470.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 470.5 m 435 470.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 456.5 m 435 456.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 454.5 m 435 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 470.5 m 496 470.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 470.5 m 558 470.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 454.5 m 435 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 456.5 m 435 456.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 454.5 m 496 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 456.5 m 496 456.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 454.5 m 558 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 456.5 m 558 456.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.45 686.73 Td (Year Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.05 673.73 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.00 665.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.05 673.73 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 665.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.10 673.73 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 665.73 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 651.18 Td (Cash flows from financing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 651.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 651.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 651.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 636.17 Td (Short-term borrowings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 636.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 636.18 Td (54,792) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 636.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 636.17 Td (38,729) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 636.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 636.17 Td (61,523) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 620.17 Td (Repayments of short-term borrowings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.30 620.23 Td (\(34,792) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 620.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.30 620.22 Td (\(38,729) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 620.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 620.22 Td (\(61,499) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 620.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 605.17 Td (Net change in capital lease obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.15 605.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 605.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 605.22 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 605.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 591.07 Td (Issuance of common stock under employee stock option and purchase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 581.07 Td (plans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.65 582.18 Td (7,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 582.17 Td (7,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 582.17 Td (10,685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 566.17 Td (Repurchase of common stock) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.15 566.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.30 566.22 Td (\(75,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 566.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 566.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 551.17 Td (Debt issuance costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.30 551.23 Td (\(5,202) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 551.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 551.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 551.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 535.17 Td (Net settlement of restricted common stock) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.30 535.23 Td (\(5,443) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 535.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 535.22 Td (\(5,302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 535.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 535.22 Td (\(7,811) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 535.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 520.18 Td (Net cash provided by \(used in\) financing activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 520.18 Td (17,204) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.30 520.22 Td (\(73,021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 520.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 520.17 Td (2,896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 505.17 Td (Effect of exchange rate changes on cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.30 505.23 Td (\(2,207) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 505.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.30 505.22 Td (\(15,214) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 505.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 505.22 Td (\(3,719) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 505.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 490.18 Td (Net increase \(decrease\) in cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.65 490.18 Td (223,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 490.17 Td (39,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 490.22 Td (\(19,227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 490.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 475.17 Td (Cash and cash equivalents, beginning of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.65 475.18 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 475.17 Td (91,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 475.17 Td (110,444) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 460.18 Td (Cash and cash equivalents, end of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 460.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.65 460.18 Td (354,347) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 460.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 460.17 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 460.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 460.17 Td (91,217) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 445.18 Td (Supplemental disclosure of cash flow information:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 445.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 445.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 445.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 430.17 Td (Cash paid during the year for:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 430.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 430.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 430.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 415.17 Td (Interest) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 415.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.15 415.18 Td (149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 415.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 415.17 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 415.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 415.17 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 400.17 Td (Income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 400.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 400.18 Td (43,884) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 400.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 400.17 Td (29,816) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 400.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 400.17 Td (44,055) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 385.17 Td (Cash received during the year for:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 385.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 385.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 385.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 370.17 Td (Income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 370.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.65 370.18 Td (6,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 370.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 370.17 Td (3,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 370.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 370.17 Td (7,022) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 355.18 Td (Noncash investing and financing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 355.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 355.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 355.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 340.17 Td (Unpaid property and equipment purchases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 340.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.65 340.18 Td (3,492) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 340.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 340.17 Td (1,425) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 340.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.15 340.17 Td (721) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.10 296.00 Td (\(concluded\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.60 276.00 Td (See accompanying Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 159 0 obj <>] /Rotate 0 /Contents 160 0 R>> endobj 160 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (77) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 742.25 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 742.25 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 742.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 175.30 722.25 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 211.52 722.25 Td (T) Tj ET Q q 0 0 0 rg BT 218.01 722.25 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 288.11 722.25 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 367.29 722.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 381.28 722.25 Td (A) Tj ET Q q 0 0 0 rg BT 387.76 722.25 Td (TEMENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (1. DESCRIPTION OF) Tj ET Q q 0 0 0 rg BT 145.47 698.25 Td ( BUSINESS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 678.25 Td (Founded in 1966, Coherent,Inc. provides lasers and laser) Tj ET Q q 0 0 0 rg BT 302.52 678.25 Td (-based technology in a broad range of commercial and scientific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (research applications. Coherent designs, manufactures, services and markets lasers and related accessories for a diverse group ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (of customers. Headquartered in Santa Clara, California, the Company has worldwide operations including research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (development, manufacturing, sales, service and support capabilities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.00 618.25 Td ( ) Tj ET Q q 0 0 0 rg BT 127.95 618.25 Td (ACCOUNTING POLICIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (Fiscal ) Tj ET Q q 0 0 0 rg BT 76.62 598.25 Td (Y) Tj ET Q q 0 0 0 rg BT 82.74 598.25 Td (ear) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 578.25 Td (Our fiscal year ends on the Saturday closest to September30. Fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.75 578.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.75 578.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.75 578.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.75 578.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.19 578.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.19 578.25 Td ( ended on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.57 578.25 Td (October1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 566.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 566.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.21 566.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.65 566.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.91 566.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 291.57 566.25 Td (, and are referred to in these financial statements as fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.13 566.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.13 566.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 554.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 554.25 Td (, and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.75 554.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.75 554.25 Td ( for convenience. Fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.87 554.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.87 554.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.30 554.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.30 554.25 Td ( include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.74 554.25 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.74 554.25 Td ( weeks and fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.53 554.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.53 554.25 Td ( includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.85 554.25 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.85 554.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (weeks. ) Tj ET Q q 0 0 0 rg BT 79.31 542.25 Td (The fiscal years of the majority of our international subsidiaries end on September 30. ) Tj ET Q q 0 0 0 rg BT 425.60 542.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 474.94 542.25 Td (, the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (statements of these subsidiaries as of that date and for the years then ended have been used for our consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (statements. Management believes that the impact of the use of dif) Tj ET Q q 0 0 0 rg BT 311.74 518.25 Td (ferent year) Tj ET Q q 0 0 0 rg BT 354.56 518.25 Td (-ends is immaterial to our consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (statements taken as a whole.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 486.25 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 466.25 Td (The preparation of consolidated financial statements in conformity with Generally ) Tj ET Q q 0 0 0 rg BT 404.51 466.25 Td (Accepted ) Tj ET Q q 0 0 0 rg BT 444.21 466.25 Td (Accounting Principles ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (\("GAAP"\) requires management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 350.46 454.25 Td (fect the reported amounts of assets and liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (of revenues and expenses during the reporting period. ) Tj ET Q q 0 0 0 rg BT 266.38 430.25 Td (Actual results could dif) Tj ET Q q 0 0 0 rg BT 359.79 430.25 Td (fer from those estimates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (Basis of Pr) Tj ET Q q 0 0 0 rg BT 95.43 410.25 Td (esentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 390.25 Td (The consolidated financial statements include the accounts of Coherent,Inc. and its majority-owned subsidiaries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.25 Td (\(collectively) Tj ET Q q 0 0 0 rg BT 98.83 378.25 Td (, the "Company", "we", "our", or "Coherent"\). Intercompany balances and transactions have been eliminated. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (Fair) Tj ET Q q 0 0 0 rg BT 67.64 358.25 Td ( ) Tj ET Q q 0 0 0 rg BT 69.96 358.25 Td (V) Tj ET Q q 0 0 0 rg BT 76.27 358.25 Td (alue of Financial Instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 338.25 Td (The carrying amounts of certain of our financial instruments including accounts receivable, accounts payable and accrued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (liabilities approximate fair value due to their short maturities. Short-term investments are comprised of available-for) Tj ET Q q 0 0 0 rg BT 514.43 326.25 Td (-sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (securities, which are carried at fair value. Other non-current assets include trading securities and life insurance contracts related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.25 Td (to our deferred compensation plans; trading securities are carried at fair value and life insurance contracts are carried at cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 Td (surrender values, which due to their ability to be converted to cash at that amount, approximate their fair values. Foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.25 Td (exchange contracts are stated at fair value based on prevailing financial market information.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 258.25 Td (Cash Equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 238.25 Td (All highly liquid investments with maturities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.54 238.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.53 238.25 Td ( months or less at the time of purchase are classified as cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (equivalents. ) Tj ET Q q 0 0 0 rg BT 99.49 226.25 Td (At fiscal 2016 year) Tj ET Q q 0 0 0 rg BT 175.65 226.25 Td (-end, cash and cash equivalents included cash and money market funds.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (Concentration of Cr) Tj ET Q q 0 0 0 rg BT 135.97 206.25 Td (edit Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 186.25 Td (Financial instruments that may potentially subject us to concentrations of credit risk consist principally of cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.25 Td (equivalents, short-term investments and accounts receivable. ) Tj ET Q q 0 0 0 rg BT 294.42 174.25 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.08 174.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.08 174.25 Td (year) Tj ET Q q 0 0 0 rg BT 370.58 174.25 Td (-end, the majority of our short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.25 Td (investments were in commercial paper and equity securities. Cash equivalents and short-term investments are maintained with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.25 Td (several financial institutions and may exceed the amount of insurance provided on such balances. ) Tj ET Q q 0 0 0 rg BT 440.76 150.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.26 150.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.97 150.25 Td (, we held ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.25 Td (cash and cash equivalents and short-term investments outside the U.S.in certain of our foreign operations totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.25 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 126.25 Td ($331.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.65 126.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.65 126.25 Td ($93.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.54 126.25 Td ( of which was denominated in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 494.41 126.25 Td (. ) Tj ET Q q 0 0 0 rg BT 499.23 126.25 Td (The majority of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.25 Td (our accounts receivable are derived from sales to customers for commercial applications. ) Tj ET Q q 0 0 0 rg BT 407.79 114.25 Td (W) Tj ET Q q 0 0 0 rg BT 416.42 114.25 Td (e perform ongoing credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.25 Td (evaluations of our customers' financial condition and limit the amount of credit extended when deemed necessary but generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.25 Td (require no collateral. In certain instances, we may require customers to issue a letter of credit. ) Tj ET Q q 0 0 0 rg BT 426.11 90.25 Td (W) Tj ET Q q 0 0 0 rg BT 434.75 90.25 Td (e maintain reserves for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.25 Td (potential credit losses. Our products are broadly distributed and there was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.64 78.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.08 78.25 Td ( customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 78.25 Td (18.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.48 78.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.92 78.25 Td (21.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.75 78.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 66.25 Td (accounts receivable at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.44 66.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.44 66.25 Td (and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.03 66.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.03 66.25 Td ( year) Tj ET Q q 0 0 0 rg BT 267.54 66.25 Td (-end. ) Tj ET Q q 0 0 0 rg BT 290.13 66.25 Td (W) Tj ET Q q 0 0 0 rg BT 298.76 66.25 Td (e had another customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.19 66.25 Td (18.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.02 66.25 Td ( of accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 54.25 Td (receivable at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.95 54.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.95 54.25 Td ( year) Tj ET Q q 0 0 0 rg BT 166.46 54.25 Td (-end.) Tj ET Q endstream endobj 161 0 obj <>] /Rotate 0 /Contents 162 0 R>> endobj 162 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (78) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (Derivative Financial Instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 675.25 Td (Our primary objective for holding derivative financial instruments is to manage currency exchange rate risk. Principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.25 Td (currencies hedged include the Euro, South Korean ) Tj ET Q q 0 0 0 rg BT 253.14 663.25 Td (W) Tj ET Q q 0 0 0 rg BT 261.78 663.25 Td (on, Japanese ) Tj ET Q q 0 0 0 rg BT 314.44 663.25 Td (Y) Tj ET Q q 0 0 0 rg BT 320.66 663.25 Td (en, British Pound, Chinese Renminbi, Malaysian Ringgit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.25 Td (and Singapore dollar) Tj ET Q q 0 0 0 rg BT 132.26 651.25 Td (. Our derivative financial instruments are recorded at fair value, on a gross basis, and are included in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.25 Td (current assets and other current liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 619.25 Td (Our accounting policies for derivative financial instruments are based on whether they meet the criteria for designation as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.25 Td (a cash flow hedge. Changes in the fair value of these cash flow hedges that are highly ef) Tj ET Q q 0 0 0 rg BT 401.97 607.25 Td (fective are recorded in accumulated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.25 Td (other comprehensive income and reclassified into earnings in the same line item on the consolidated statements of operations as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.25 Td (the impact of the hedged transaction during the period in which the hedged transaction af) Tj ET Q q 0 0 0 rg BT 405.87 583.25 Td (fects earnings. ) Tj ET Q q 0 0 0 rg BT 465.94 583.25 Td (The inef) Tj ET Q q 0 0 0 rg BT 499.35 583.25 Td (fective portion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.25 Td (of cash flow hedges are recognized immediately in other income and expenses. Derivatives that we designate as cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.25 Td (hedges are classified in the consolidated statements of cash flows in the same section as the underlying item, primarily within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.25 Td (cash flows from operating activities. ) Tj ET Q q 0 0 0 rg BT 197.61 547.25 Td (The changes in fair value of derivative instruments that are not designated as hedges are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.25 Td (recognized immediately in other income \(expense\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 515.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 515.25 Td (e formally document all relationships between hedging instruments and hedged items, as well as the risk management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (objective and strategy for undertaking various hedge transactions. ) Tj ET Q q 0 0 0 rg BT 315.07 503.25 Td (This process includes linking all derivatives that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (designated as cash-flow hedges to specific forecasted transactions. ) Tj ET Q q 0 0 0 rg BT 317.83 491.25 Td (W) Tj ET Q q 0 0 0 rg BT 326.47 491.25 Td (e also assess, both at the hedge) Tj ET Q q 0 0 0 rg BT 452.83 491.25 Td (s inception and on an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (ongoing basis, whether the derivatives that are used in hedging transactions are highly ef) Tj ET Q q 0 0 0 rg BT 404.22 479.25 Td (fective in of) Tj ET Q q 0 0 0 rg BT 452.35 479.25 Td (fsetting changes in cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (flows of the hedged items. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 447.25 Td (Accounts Receivable ) Tj ET Q q 0 0 0 rg BT 139.49 447.25 Td (Allowances) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 427.25 Td (Accounts receivable allowances reflect our best estimate of probable losses inherent in our accounts receivable balances. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 415.25 Td (e regularly review allowances by considering factors such as historical experience, credit quality) Tj ET Q q 0 0 0 rg BT 443.72 415.25 Td (, the age of the accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.25 Td (receivable balances and current economic conditions that may af) Tj ET Q q 0 0 0 rg BT 308.09 403.25 Td (fect a customer's ability to pay) Tj ET Q q 0 0 0 rg BT 429.49 403.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 383.25 Td (Activity in accounts receivable allowance is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 336.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 336.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 336.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 336.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 336.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 336.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 306.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 306.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 306.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 306.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 306.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 306.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 350.75 m 423.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 350.75 m 427.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 350.75 m 492.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 350.75 m 496.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 350.75 m 561.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 336.75 m 423.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 336.75 m 492.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 350.75 m 561.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 336.75 m 561.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 336.75 m 423.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 336.75 m 492.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 336.75 m 561.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 291.75 m 423.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 277.75 m 423.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 275.75 m 423.5 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 291.75 m 492.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 277.75 m 492.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 275.75 m 492.5 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 291.75 m 561.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 277.75 m 561.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 275.75 m 561.5 275.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 355.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 354.98 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 341.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 340.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 340.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 340.98 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 326.42 Td (Beginning balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 326.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 326.43 Td (3,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 326.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 326.42 Td (1,155) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 326.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 326.42 Td (1,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 311.42 Td (Additions charged to expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 311.43 Td (2,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 311.42 Td (2,716) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 311.42 Td (1,194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 296.42 Td (Deductions from reserves) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.80 296.48 Td (\(2,679) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 296.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 296.47 Td (\(856) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 296.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 296.47 Td (\(1,425) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 296.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 281.42 Td (Ending balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 281.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 281.43 Td (2,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 281.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 281.42 Td (3,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 281.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 281.42 Td (1,155) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 257.25 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 237.25 Td (Inventories are stated at the lower of cost \(first-in, first-out\) or market. Inventories are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 190.75 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 190.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 190.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 190.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 160.75 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 160.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 160.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 160.75 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 204.75 m 497.5 204.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 204.75 m 501.5 204.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 204.75 m 561.5 204.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 190.75 m 497.5 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 190.75 m 561.5 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 190.75 m 497.5 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 190.75 m 561.5 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 145.75 m 497.5 145.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 131.75 m 497.5 131.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 129.75 m 497.5 129.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 145.75 m 561.5 145.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 131.75 m 561.5 131.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 129.75 m 561.5 129.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 209.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.00 208.98 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 195.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 194.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 194.98 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 180.42 Td (Purchased parts and assemblies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 180.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 180.43 Td (56,824) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 180.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 180.42 Td (50,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 165.42 Td (Work-in-process) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 165.43 Td (88,391) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 165.42 Td (56,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 150.42 Td (Finished goods) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 150.43 Td (67,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 150.42 Td (50,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 135.42 Td (Total inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 135.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 135.43 Td (212,898) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 135.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 135.42 Td (156,614) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 111.25 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.87 111.25 Td (operty and Equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 91.25 Td (Property and equipment are stated at cost and are depreciated or amortized using the straight-line method. Cost, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 79.25 Td (accumulated depreciation and amortization, and estimated useful lives are as follows \(dollars in thousands\):) Tj ET Q endstream endobj 163 0 obj <>] /Rotate 0 /Contents 164 0 R>> endobj 164 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (79) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 674.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 674.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 674.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 674.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 674.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 674.50 181.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 644.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 644.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 644.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 644.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 644.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 644.50 181.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 614.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 614.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 614.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 614.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 614.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 614.50 181.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 584.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 584.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 584.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 584.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 584.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 584.50 181.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 687.5 m 307.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 687.5 m 311.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 687.5 m 376.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 674.5 m 307.5 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 674.5 m 376.5 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 674.5 m 561.5 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 674.5 m 307.5 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 674.5 m 376.5 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 614.5 m 307.5 614.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 614.5 m 376.5 614.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 614.5 m 307.5 614.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 614.5 m 376.5 614.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 584.5 m 307.5 584.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 570.5 m 307.5 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 568.5 m 307.5 568.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 584.5 m 376.5 584.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 570.5 m 376.5 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 568.5 m 376.5 568.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 692.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.00 691.73 Td (Fiscal year-end) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 691.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 678.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 266.50 678.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.50 678.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.70 678.73 Td (Useful Life) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 664.17 Td (Land) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 245.00 664.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.15 664.18 Td (7,523) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.00 664.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.15 664.17 Td (6,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 664.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 649.17 Td (Buildings and improvements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.15 649.18 Td (85,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 649.17 Td (69,970) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.05 649.17 Td (5-40years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 634.17 Td (Equipment, furniture and fixtures) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.15 634.18 Td (248,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 634.17 Td (230,208) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.05 634.17 Td (3-10years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 619.17 Td (Leasehold improvements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.15 619.18 Td (38,979) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 619.17 Td (31,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.05 619.17 Td (1-15 years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.15 604.18 Td (381,151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 604.17 Td (337,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 604.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 589.17 Td (Accumulated depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.80 589.18 Td (\(253,708) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 589.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.80 589.22 Td (\(235,155) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.65 589.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 589.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 574.17 Td (Property and equipment, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 245.00 574.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.15 574.18 Td (127,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.00 574.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 574.17 Td (102,445) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 574.17 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 550.00 Td (Asset Retir) Tj ET Q q 0 0 0 rg BT 96.80 550.00 Td (ement Obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.00 Td (The fair value \(the present value of estimated cash flows\) of a liability for an asset retirement obligation is recognized in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.00 Td (the period in which it is incurred if a reasonable estimate of fair value can be made. ) Tj ET Q q 0 0 0 rg BT 385.30 518.00 Td (The fair value of the liability is added to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.00 Td (carrying amount of the associated asset and this additional carrying amount is depreciated over the life of the asset. ) Tj ET Q q 0 0 0 rg BT 511.57 506.00 Td (All of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.00 Td (existing asset retirement obligations are associated with commitments to return the property to its original condition upon lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.00 Td (termination at various sites and costs to clean up and dispose of certain fixed assets at our Sunnyvale, California site. ) Tj ET Q q 0 0 0 rg BT 519.20 482.00 Td (W) Tj ET Q q 0 0 0 rg BT 527.84 482.00 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.00 Td (estimated that as of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.63 470.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.63 470.00 Td (year) Tj ET Q q 0 0 0 rg BT 193.14 470.00 Td (-end, gross expected future cash flows of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.75 470.00 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.64 470.00 Td ( would be required to fulfill these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.00 Td (obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 438.00 Td (The following table reconciles changes in our asset retirement liability for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.17 438.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.17 438.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.60 438.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.60 438.00 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 419.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 419.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 389.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 389.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 359.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 359.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 329.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 329.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 299.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 299.50 50.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 359.5 m 561.5 359.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 299.5 m 561.5 299.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 285.5 m 561.5 285.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 283.5 m 561.5 283.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 409.17 Td (Asset retirement liability as of September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.00 409.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 409.17 Td (2,222) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 394.17 Td (Adjustment to asset retirement obligations recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 394.17 Td (542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 379.17 Td (Accretion recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 379.17 Td (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 364.17 Td (Changes due to foreign currency exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 364.22 Td (\(165) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 364.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 349.17 Td (Asset retirement liability as of October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 349.17 Td (2,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 334.17 Td (Adjustment to asset retirement obligations recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 334.22 Td (\(14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 334.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 319.17 Td (Accretion recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 319.17 Td (71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 304.17 Td (Changes due to foreign currency exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 304.17 Td (85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 289.17 Td (Asset retirement liability as of October 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.00 289.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 289.17 Td (2,796) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 265.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 265.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.71 265.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.15 265.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.85 265.00 Td (, the asset retirement liability is included in Other long-term liabilities on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.00 Td (consolidated balance sheets. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 233.00 Td (Long-lived ) Tj ET Q q 0 0 0 rg BT 97.57 233.00 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 213.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 213.00 Td (e evaluate the carrying value of long-lived assets, including intangible assets, whenever events or changes in business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.00 Td (circumstances or our planned use of long-lived assets indicate that their carrying amounts may not be fully recoverable or that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.00 Td (their useful lives are no longer appropriate. Reviews are performed to determine whether the carrying values of long-lived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.00 Td (assets are impaired based on a comparison to the undiscounted expected future net cash flows. If the comparison indicates that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.00 Td (impairment exists, long-lived assets that are classified as held and used are written down to their respective fair values. ) Tj ET Q q 0 0 0 rg BT 527.22 165.00 Td (When ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.00 Td (long-lived assets are classified as held for sale, they are written down to their respective fair values less costs to sell. Significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.00 Td (management judgment is required in the forecast of future operating results that is used in the preparation of expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.00 Td (undiscounted cash flows. For fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.96 129.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.96 129.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.96 129.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.96 129.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.40 129.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 129.00 Td (, there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.81 129.00 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.81 129.00 Td ( significant asset impairments recorded other than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.00 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 117.00 Td ($2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.61 117.00 Td ( impairment of our investment in SiOnyx in fiscal 2015 \(See Note 8. "Balance Sheet Details"\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 97.00 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 77.00 Td (Goodwill is tested for impairment on an annual basis and between annual tests in certain circumstances, and written down ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.00 Td (when impaired \(see Note7. "Goodwill and Intangible ) Tj ET Q q 0 0 0 rg BT 266.03 65.00 Td (Assets"\). In testing for impairment, we have the option to first assess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.00 Td (qualitative factors to determine whether it is more likely than not \(that is, a likelihood of more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.00 53.00 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.33 53.00 Td (\) that the fair value of a ) Tj ET Q endstream endobj 165 0 obj <>] /Rotate 0 /Contents 166 0 R>> endobj 166 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (reporting unit is less than its carrying amount. Moreover) Tj ET Q q 0 0 0 rg BT 274.89 695.10 Td (, an entity can bypass the qualitative assessment for any reporting unit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (in any period and proceed directly to step one of the impairment test, and then resume performing the qualitative assessment in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (any subsequent period. In both our fiscal 2016 and 2015 annual testing, we performed a qualitative assessment of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (goodwillfor our SLS reporting unit using the opening balance sheet as of the first day of the fourth quarter and noted no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (impairment. For the CLC reporting unit, we elected to bypass the qualitative assessment and proceed directly to performing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (first step of the goodwill impairment test. ) Tj ET Q q 0 0 0 rg BT 217.25 635.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 266.59 635.10 Td (, we performed our Step 1 test using the opening balance sheet as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (first day of the fourth quarter and noted no impairment in both fiscal 2016 and 2015. \(See Note 7 for additional discussion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (the fiscal 2016 analysis.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (Intangible ) Tj ET Q q 0 0 0 rg BT 95.35 591.10 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 571.10 Td (Intangible assets, including acquired existing technology) Tj ET Q q 0 0 0 rg BT 300.02 571.10 Td (, customer lists and trade name are amortized on a straight-line ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.10 Td (basis over their estimated useful lives, currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.33 559.10 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.33 559.10 Td ( year to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.82 559.10 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.82 559.10 Td ( years \(See Note 7. "Goodwill and Intangible ) Tj ET Q q 0 0 0 rg BT 472.91 559.10 Td (Assets"\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.95 539.10 Td (arranty Reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 519.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 519.10 Td (e provide warranties on the majority of our product sales and reserves for estimated warranty costs are recorded during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.10 Td (the period of sale. ) Tj ET Q q 0 0 0 rg BT 123.46 507.10 Td (The determination of such reserves requires us to make estimates of product return rates and expected costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (to repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 239.60 495.10 Td (. ) Tj ET Q q 0 0 0 rg BT 244.42 495.10 Td (W) Tj ET Q q 0 0 0 rg BT 253.05 495.10 Td (e currently establish warranty reserves based on historical warranty costs for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.10 Td (each product line. ) Tj ET Q q 0 0 0 rg BT 123.18 483.10 Td (The weighted average warranty period covered is approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.62 483.10 Td (15 months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.57 483.10 Td (. If actual return rates and/or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (repair and replacement costs dif) Tj ET Q q 0 0 0 rg BT 177.04 471.10 Td (fer significantly from our estimates, adjustments to cost of sales may be required in future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.10 Td (periods.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 439.10 Td (Components of the reserve for warranty costs during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.93 439.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.93 439.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.93 439.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.93 439.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.37 439.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.37 439.10 Td ( were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 392.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 392.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 392.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 392.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 392.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 392.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 362.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 362.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 362.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 362.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 362.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 362.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 332.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 332.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 332.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 332.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 332.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 332.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 406.6 m 423.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 406.6 m 427.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 406.6 m 492.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 406.6 m 496.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 406.6 m 561.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 392.6 m 423.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 392.6 m 492.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 392.6 m 561.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 392.6 m 423.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 392.6 m 492.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 392.6 m 561.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 317.6 m 423.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 303.6 m 423.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 301.6 m 423.5 301.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 317.6 m 492.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 303.6 m 492.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 301.6 m 492.5 301.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 317.6 m 561.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 303.6 m 561.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 301.6 m 561.5 301.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 411.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 410.83 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 397.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 396.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 396.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 396.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 382.27 Td (Beginning balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 382.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 382.28 Td (15,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 382.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 382.27 Td (16,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 382.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 382.27 Td (18,508) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 367.27 Td (Additions related to current period sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 367.28 Td (21,859) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 367.27 Td (20,959) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 367.27 Td (24,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 352.27 Td (Warranty costs incurred in the current period) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.80 352.33 Td (\(21,393) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 352.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 352.32 Td (\(21,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 352.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 352.32 Td (\(25,144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 352.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 337.27 Td (Accruals resulting from acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.65 337.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 337.27 Td (215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 337.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 322.27 Td (Adjustments to accruals related to foreign exchange and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.65 322.28 Td (175) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 322.32 Td (\(905) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 322.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 322.32 Td (\(552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 322.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 307.27 Td (Ending balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 307.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 307.28 Td (15,949) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 307.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 307.27 Td (15,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 307.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 307.27 Td (16,961) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 283.10 Td (Loss contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 263.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 263.10 Td (e are subject to the possibility of various loss contingencies arising in the ordinary course of business. ) Tj ET Q q 0 0 0 rg BT 489.82 263.10 Td (W) Tj ET Q q 0 0 0 rg BT 498.46 263.10 Td (e consider the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (likelihood of loss or impairment of an asset, or the incurrence of a liability) Tj ET Q q 0 0 0 rg BT 346.55 251.10 Td (, as well as our ability to reasonably estimate the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (amount of loss, in determining loss contingencies. ) Tj ET Q q 0 0 0 rg BT 251.98 239.10 Td (An estimated loss contingency is accrued when it is probable that an asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. If we determine that a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (loss is possible and the range of the loss can be reasonably determined, then we disclose the range of the possible loss. ) Tj ET Q q 0 0 0 rg BT 525.32 215.10 Td (W) Tj ET Q q 0 0 0 rg BT 533.95 215.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (regularly evaluate current information available to us to determine whether an accrual is required, an accrual should be adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (or a range of possible loss should be disclosed.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 171.10 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 151.10 Td (When a sales arrangement contains multiple elements, such as products and/or services, we allocate revenue to each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (element based on a selling price hierarchy) Tj ET Q q 0 0 0 rg BT 217.11 139.10 Td (. Using the selling price hierarchy) Tj ET Q q 0 0 0 rg BT 351.98 139.10 Td (, we determine the selling price of each deliverable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (using vendor specific objective evidence \(VSOE\), if it exists, and otherwise third-party evidence \(TPE\). If neither ) Tj ET Q q 0 0 0 rg BT 524.98 127.10 Td (VSOE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.10 Td (nor ) Tj ET Q q 0 0 0 rg BT 65.15 115.10 Td (TPE of selling price exists, we use estimated selling price \(ESP\). ) Tj ET Q q 0 0 0 rg BT 335.74 115.10 Td (W) Tj ET Q q 0 0 0 rg BT 344.37 115.10 Td (e generally expect that we will not be able to establish ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.10 Td (TPE due to the nature of the markets in which we compete, and, as such, we typically will determine selling price using ) Tj ET Q q 0 0 0 rg BT 530.57 103.10 Td (VSOE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.10 Td (or if not available, ESP) Tj ET Q q 0 0 0 rg BT 141.43 91.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 71.10 Td (Our basis for establishing ) Tj ET Q q 0 0 0 rg BT 176.80 71.10 Td (VSOE of a deliverable's selling price consists of standalone sales transactions when the same or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 59.10 Td (similar product or service is sold separately) Tj ET Q q 0 0 0 rg BT 222.69 59.10 Td (. However) Tj ET Q q 0 0 0 rg BT 263.94 59.10 Td (, when services are never sold separately) Tj ET Q q 0 0 0 rg BT 426.27 59.10 Td (, such as product installation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 47.10 Td (services, ) Tj ET Q q 0 0 0 rg BT 86.53 47.10 Td (VSOE is based on the product's estimated installation hours based on historical experience multiplied by the standard ) Tj ET Q endstream endobj 167 0 obj <>] /Rotate 0 /Contents 168 0 R>> endobj 168 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (service billing rate. In determining ) Tj ET Q q 0 0 0 rg BT 190.38 695.10 Td (VSOE, we require that a substantial majority of the selling price for a product or service fall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (within a reasonably narrow price range, as defined by us. ) Tj ET Q q 0 0 0 rg BT 280.35 683.10 Td (W) Tj ET Q q 0 0 0 rg BT 288.99 683.10 Td (e also consider the geographies in which the products or services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (are sold, major product and service groups, and other environmental variables in determining ) Tj ET Q q 0 0 0 rg BT 424.48 671.10 Td (VSOE. ) Tj ET Q q 0 0 0 rg BT 455.04 671.10 Td (Absent the existence of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (VSOE and ) Tj ET Q q 0 0 0 rg BT 94.87 659.10 Td (TPE, our determination of a deliverable's ESP) Tj ET Q q 0 0 0 rg BT 278.76 659.10 Td ( involves evaluating several factors based on the specific facts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (circumstances of these arrangements, which include pricing strategy and policies driven by geographies, market conditions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (competitive landscape, correlation between proportionate selling price and list price established by management having the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (relevant authority) Tj ET Q q 0 0 0 rg BT 119.66 623.10 Td (, and other environmental variables in which the deliverable is sold.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 603.10 Td (For multiple element arrangements which include extended maintenance contracts, we allocate and defer the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (consideration equal to the separately stated price and recognize revenue on a straight-line basis over the contract period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 571.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 571.10 Td (e recognize revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.10 Td (exists, the product has been delivered or the service has been rendered, the price is fixed or determinable and collection is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.10 Td (reasonably assured. Revenue from product sales is recorded when all of the foregoing conditions are met and risk of loss and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.10 Td (title passes to the customer) Tj ET Q q 0 0 0 rg BT 156.70 535.10 Td (. Sales to customers are generally not subject to any price protection or return rights.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 515.10 Td (The majority of our sales are made to original equipment manufacturers \("OEMs"\), distributors, representatives and end-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (users in the non-scientific market. Sales made to these customers do not require installation of the products by us and are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (subject to other post-delivery obligations, except in occasional instances where we have agreed to perform installation or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (provide training. In those instances, we defer revenue related to installation services or training until these services have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (rendered. ) Tj ET Q q 0 0 0 rg BT 89.29 467.10 Td (W) Tj ET Q q 0 0 0 rg BT 97.93 467.10 Td (e allocate revenue from multiple element arrangements to the various elements based upon relative fair values.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 447.10 Td (Our sales to distributors, representatives and end-user customers typically do not have customer acceptance provisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.10 Td (and only certain of our sales to OEM customers and integrators have customer acceptance provisions. Customer acceptance is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.10 Td (generally limited to performance under our published product specifications. For the few product sales that have customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.10 Td (acceptance provisions because of higher than published specifications, \(1\)the products are tested and accepted by the customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (at our site or the customer accepts the results of our testing program prior to shipment to the customer) Tj ET Q q 0 0 0 rg BT 456.22 399.10 Td (, or \(2\)the revenue is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (deferred until customer acceptance occurs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 367.10 Td (Sales to end-users in the scientific market typically require installation and, thus, involve post-delivery obligations; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.10 Td (however) Tj ET Q q 0 0 0 rg BT 83.53 355.10 Td (, our post-delivery installation obligations are not essential to the functionality of our products. ) Tj ET Q q 0 0 0 rg BT 464.93 355.10 Td (W) Tj ET Q q 0 0 0 rg BT 473.57 355.10 Td (e defer revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.10 Td (related to installation services until completion of these services.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 323.10 Td (For most products, training is not provided; therefore, no post-delivery training obligation exists. However) Tj ET Q q 0 0 0 rg BT 499.69 323.10 Td (, when training ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (is provided to our customers, it is typically priced separately and is recognized as revenue as these services are provided.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 291.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 291.10 Td (e record taxes collected on revenue-producing activities on a net basis.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 271.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 78.75 271.10 Td (ch and Development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 251.10 Td (Research and development expenses include salaries, contractor and consultant fees, supplies and materials, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (costs related to other overhead such as depreciation, facilities, utilities and other departmental expenses. ) Tj ET Q q 0 0 0 rg BT 467.78 239.10 Td (The costs we incur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (with respect to internally developed technology and engineering services are included in research and development expenses as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (incurred as they do not directly relate to any particular licensee, license agreement or license fee.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 195.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 195.10 Td (e treat third party and government funding of our research and development activity) Tj ET Q q 0 0 0 rg BT 417.48 195.10 Td (, where we are the primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.10 Td (beneficiary of such work conducted, as a reduction of research and development cost. Research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.10 Td (reimbursements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.70 171.10 Td ($2.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.59 171.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.59 171.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.49 171.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.92 171.10 Td ($7.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.82 171.10 Td ( were of) Tj ET Q q 0 0 0 rg BT 330.39 171.10 Td (fset against research and development costs in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 159.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 159.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 159.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.94 159.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.94 159.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 186.60 159.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (For) Tj ET Q q 0 0 0 rg BT 64.87 139.10 Td (eign Curr) Tj ET Q q 0 0 0 rg BT 106.62 139.10 Td (ency ) Tj ET Q q 0 0 0 rg BT 128.38 139.10 Td (T) Tj ET Q q 0 0 0 rg BT 134.31 139.10 Td (ranslation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 119.10 Td (The functional currencies of our foreign subsidiaries are generally their respective local currencies. ) Tj ET Q q 0 0 0 rg BT 471.66 119.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 521.00 119.10 Td (, gains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (and losses from the translation of the financial statements of the foreign subsidiaries are reported as a separate component of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (accumulated other comprehensive income \("OCI"\). Foreign currency transaction gains and losses are included in earnings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (Compr) Tj ET Q q 0 0 0 rg BT 79.87 75.10 Td (ehensive Income \(Loss\)) Tj ET Q endstream endobj 169 0 obj <>] /Rotate 0 /Contents 170 0 R>> endobj 170 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (82) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (Comprehensive income \(loss\) is defined as the change in equity of a business enterprise during a period from transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (and other events and circumstances from non-owner sources. ) Tj ET Q q 0 0 0 rg BT 295.81 683.10 Td (Accumulated other comprehensive income \(loss\) \(net of tax\) at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 671.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 671.10 Td ( year) Tj ET Q q 0 0 0 rg BT 113.16 671.10 Td (-end is substantially comprised of accumulated translation adjustments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.48 671.10 Td ($\(8.6\) million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.03 671.10 Td ( and unrealized gain on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (marketable equity securities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.01 659.10 Td ($3.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.90 659.10 Td (. ) Tj ET Q q 0 0 0 rg BT 228.35 659.10 Td (Accumulated other comprehensive income \(loss\) \(net of tax\) at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.69 659.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.69 659.10 Td ( year) Tj ET Q q 0 0 0 rg BT 547.20 659.10 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (end is substantially comprised of accumulated translation adjustments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.49 647.10 Td ($\(10.4\) million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.04 647.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 627.10 Td (Earnings Per) Tj ET Q q 0 0 0 rg BT 105.71 627.10 Td ( Shar) Tj ET Q q 0 0 0 rg BT 128.59 627.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 607.10 Td (Basic earnings per share is computed based on the weighted average number of shares outstanding during the period, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.10 Td (excluding unvested restricted stock. Diluted earnings per share is computed based on the weighted average number of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.10 Td (outstanding during the period increased by the ef) Tj ET Q q 0 0 0 rg BT 245.10 583.10 Td (fect of dilutive employee stock awards, including stock options, restricted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.10 Td (stock awards and stock purchase contracts, using the treasury stock method.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 551.10 Td (The following table presents information necessary to calculate basic and diluted earnings per share \(in thousands, except ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (per share data\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 500.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 500.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 500.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 500.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 470.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 470.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 470.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 470.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 470.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 470.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 440.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 440.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 440.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 440.60 64.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 514.6 m 424 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 514.6 m 428 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 514.6 m 493 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 514.6 m 497 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 514.6 m 561 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 500.6 m 424 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 500.6 m 493 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 500.6 m 561 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 500.6 m 424 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 500.6 m 493 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 500.6 m 561 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 470.6 m 424 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 456.6 m 424 456.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 454.6 m 424 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 470.6 m 493 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 470.6 m 561 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 441.6 m 424 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 439.6 m 424 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 454.6 m 493 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 456.6 m 493 456.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 454.6 m 561 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 456.6 m 561 456.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 439.6 m 493 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 441.6 m 493 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 439.6 m 561 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 441.6 m 561 441.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 519.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 518.83 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 505.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 504.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 504.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 504.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 490.27 Td (Weighted average shares outstandingbasic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 490.28 Td (24,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 490.27 Td (24,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 490.27 Td (24,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 475.27 Td (Dilutive effect of employee stock awards) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 475.28 Td (273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 475.27 Td (238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 475.27 Td (316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 460.27 Td (Weighted average shares outstandingdiluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 460.28 Td (24,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 460.27 Td (24,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 460.27 Td (25,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 445.27 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 445.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 445.28 Td (87,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 445.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 445.27 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 445.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 445.27 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 430.27 Td (Net incomebasic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 430.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 430.28 Td (3.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 430.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 430.27 Td (3.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 430.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 430.27 Td (2.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 415.27 Td (Net incomediluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 415.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 415.28 Td (3.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 415.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 415.27 Td (3.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 415.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 415.27 Td (2.36) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 391.10 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.74 391.10 Td (323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.74 391.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.74 391.10 Td (0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.74 391.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.18 391.10 Td (47,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.68 391.10 Td ( potentially dilutive securities excluded from the dilutive share calculation for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.35 391.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.35 391.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 379.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 379.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 379.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 161.60 379.10 Td (, as its ef) Tj ET Q q 0 0 0 rg BT 196.97 379.10 Td (fect was anti-dilutive.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (Stock-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 339.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 339.10 Td (e account for stock-based compensation using the fair value of the awards granted. ) Tj ET Q q 0 0 0 rg BT 415.17 339.10 Td (W) Tj ET Q q 0 0 0 rg BT 423.81 339.10 Td (e value restricted stock units using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.10 Td (the intrinsic value method, which is based on the fair market value price on the grant date. ) Tj ET Q q 0 0 0 rg BT 412.25 327.10 Td (W) Tj ET Q q 0 0 0 rg BT 420.89 327.10 Td (e use a Monte Carlo simulation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td (model to estimate the fair value of performance restricted stock units. ) Tj ET Q q 0 0 0 rg BT 329.77 315.10 Td (W) Tj ET Q q 0 0 0 rg BT 338.41 315.10 Td (e use historical data to estimate pre-vesting option and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.10 Td (restricted stock unit forfeitures and record stock-based compensation expense only for those awards that are expected to vest. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 291.10 Td (e amortize the fair value of stock awards on a straight-line basis over the requisite service periods of the awards, which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.10 Td (generally the vesting periods. See Note12 "Employee Stock ) Tj ET Q q 0 0 0 rg BT 292.97 279.10 Td (A) Tj ET Q q 0 0 0 rg BT 299.28 279.10 Td (ward, Option and Benefit Plans" for a description of our stock-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.10 Td (based employee compensation plans and the assumptions we use to calculate the fair value of stock-based employee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.10 Td (compensation.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 235.10 Td (Shipping and Handling Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 215.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 215.10 Td (e record costs related to shipping and handling of net sales in cost of sales for all periods presented. Shipping and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (handling fees billed to customers are included in net sales. Custom duties billed to customers are recorded in cost of sales.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 183.10 Td (Income ) Tj ET Q q 0 0 0 rg BT 83.48 183.10 Td (T) Tj ET Q q 0 0 0 rg BT 89.23 183.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 163.10 Td (As part of the process of preparing our consolidated financial statements, we are required to estimate our income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (provision \(benefit\) in each of the jurisdictions in which we operate. ) Tj ET Q q 0 0 0 rg BT 320.91 151.10 Td (This process involves us estimating our current income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (provision \(benefit\) together with assessing temporary dif) Tj ET Q q 0 0 0 rg BT 276.49 139.10 Td (ferences resulting from dif) Tj ET Q q 0 0 0 rg BT 382.65 139.10 Td (fering treatment of items for tax and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (accounting purposes. ) Tj ET Q q 0 0 0 rg BT 136.24 127.10 Td (These dif) Tj ET Q q 0 0 0 rg BT 173.55 127.10 Td (ferences result in deferred tax assets and liabilities, which are included within our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.10 Td (balance sheets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 95.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 95.10 Td (e account for uncertain tax issues pursuant to ) Tj ET Q q 0 0 0 rg BT 264.31 95.10 Td (ASC 740-10 ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 317.09 95.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 353.66 95.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.43 95.10 Td (, which creates a single model to address ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.10 Td (accounting for uncertainty in tax positions by prescribing a minimum recognition threshold that a tax position is required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.10 Td (meet before being recognized in the financial statements. ) Tj ET Q q 0 0 0 rg BT 280.06 71.10 Td (This standard provides a two-step approach for evaluating tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 59.10 Td (positions. ) Tj ET Q q 0 0 0 rg BT 90.44 59.10 Td (The first step, recognition, occurs when a company concludes \(based solely on the technical aspects of the matter\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 47.10 Td (that a tax position is more likely than not to be sustained upon examination by a taxing authority) Tj ET Q q 0 0 0 rg BT 434.61 47.10 Td (. ) Tj ET Q q 0 0 0 rg BT 439.43 47.10 Td (The second step, ) Tj ET Q endstream endobj 171 0 obj <>] /Rotate 0 /Contents 172 0 R>> endobj 172 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (measurement, is only considered after step one has been satisfied and measures any tax benefit at the lar) Tj ET Q q 0 0 0 rg BT 465.83 695.10 Td (gest amount that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (deemed more likely than not to be realized upon ultimate settlement of the uncertainty) Tj ET Q q 0 0 0 rg BT 394.01 683.10 Td (. ) Tj ET Q q 0 0 0 rg BT 398.83 683.10 Td (These determinations involve significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (judgment by management. ) Tj ET Q q 0 0 0 rg BT 158.18 671.10 Td (T) Tj ET Q q 0 0 0 rg BT 163.59 671.10 Td (ax positions that fail to qualify for initial recognition are recognized in the first subsequent interim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (period that they meet the more likely than not standard or when they are resolved through negotiation or litigation with factual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (interpretation, judgment and certainty) Tj ET Q q 0 0 0 rg BT 199.91 647.10 Td (. ) Tj ET Q q 0 0 0 rg BT 204.73 647.10 Td (T) Tj ET Q q 0 0 0 rg BT 210.14 647.10 Td (ax laws and regulations themselves are complex and are subject to change as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (changes in fiscal policy) Tj ET Q q 0 0 0 rg BT 142.99 635.10 Td (, changes in legislation, evolution of regulations and court filings. ) Tj ET Q q 0 0 0 rg BT 408.03 635.10 Td (Therefore, the actual liability for U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (or foreign taxes may be materially dif) Tj ET Q q 0 0 0 rg BT 200.37 623.10 Td (ferent from our estimates, which could result in the need to record additional tax liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (or potentially to reverse previously recorded tax liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 591.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 591.10 Td (e record a valuation allowance to reduce our deferred tax assets to an amount that more likely than not will be realized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.10 Td (While we have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 567.10 Td (for the valuation allowance, in the event we were to determine that we would be able to realize our deferred tax assets in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.10 Td (future in excess of our net recorded amount, an adjustment to the allowance for the deferred tax asset would increase income in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 543.10 Td (the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.10 Td (net deferred tax asset in the future, an adjustment to the allowance for the deferred tax asset would be char) Tj ET Q q 0 0 0 rg BT 474.70 531.10 Td (ged to income in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.10 Td (period such determination was made.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 499.10 Td (Federal and state income taxes have not been provided on a portion of the unremitted earnings of foreign subsidiaries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.10 Td (because such earnings are intended to be permanently reinvested. ) Tj ET Q q 0 0 0 rg BT 313.10 487.10 Td (The total amount of unremitted earnings \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.10 Td (accumulated translation adjustments\) of foreign subsidiaries for which we have not yet recorded federal and state income taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.10 Td (was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.81 463.10 Td ($574.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.70 463.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.14 463.10 Td ($471.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.03 463.10 Td ( at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 463.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.40 463.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.84 463.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.84 463.10 Td ( year) Tj ET Q q 0 0 0 rg BT 380.35 463.10 Td (-end, respectively) Tj ET Q q 0 0 0 rg BT 450.78 463.10 Td (. ) Tj ET Q q 0 0 0 rg BT 455.60 463.10 Td (The amount of federal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.10 Td (state income taxes that would be payable upon repatriation of such earnings is not practicably determinable. ) Tj ET Q q 0 0 0 rg BT 483.34 451.10 Td (W) Tj ET Q q 0 0 0 rg BT 491.98 451.10 Td (e have not, nor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.10 Td (do we anticipate the need to, repatriate funds to the United States to satisfy domestic liquidity needs arising in the ordinary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.10 Td (course of business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (Adoption of New ) Tj ET Q q 0 0 0 rg BT 123.67 407.10 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 185.43 407.10 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 387.10 Td (In November 2015, the F) Tj ET Q q 0 0 0 rg BT 172.07 387.10 Td (ASB issued amended guidance that clarifies that in a classified statement of financial position, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (entity shall classify deferred tax liabilities and assets as noncurrent amounts.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 355.25 375.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.75 375.10 Td (The new guidance supersedes ) Tj ET Q q 0 0 0 rg BT 478.82 375.10 Td (ASC 740-10-45-5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (which required the valuation allowance for a particular tax jurisdiction be allocated between current and noncurrent deferred tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.10 Td (assets for that tax jurisdiction on a pro rata basis. ) Tj ET Q q 0 0 0 rg BT 247.33 351.10 Td (W) Tj ET Q q 0 0 0 rg BT 255.96 351.10 Td (e elected to early adopt the standard retrospectively in the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (fiscal 2016, which resulted in the reclassification of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.60 339.10 Td ($28.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.49 339.10 Td ( from current deferred income tax assets to non-current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.10 Td (deferred income tax assets and non-current deferred income tax liabilities as of October 3, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 310.10 Td (In ) Tj ET Q q 0 0 0 rg BT 82.28 310.10 Td (April 2015, the F) Tj ET Q q 0 0 0 rg BT 150.42 310.10 Td (ASB issued amended guidance that simplifies the presentation of debt issuance costs by requiring that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (carrying amount of that debt liability) Tj ET Q q 0 0 0 rg BT 196.31 286.10 Td (, consistent with debt discounts. ) Tj ET Q q 0 0 0 rg BT 326.40 286.10 Td (The recognition and measurement guidance for debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (issuance costs are not af) Tj ET Q q 0 0 0 rg BT 145.95 274.10 Td (fected by the amended guidance. ) Tj ET Q q 0 0 0 rg BT 279.60 274.10 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 412.42 274.10 Td (fective for our fiscal year beginning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (October 2, 2016. ) Tj ET Q q 0 0 0 rg BT 119.03 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 127.66 262.10 Td (e elected to early adopt the standard in the second quarter of fiscal 2016 and have recorded the debt issuance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.83 250.10 Td ($5.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.72 250.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.88 250.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.59 250.10 Td ( in other assets for the debt commitment we entered into in the second quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 98.47 238.10 Td (The debt issuance cost related to the term loan facility will be reclassified to debt in the first quarter of fiscal 2017.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 118.39 218.10 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 180.15 218.10 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 198.10 Td (In October 2016, the F) Tj ET Q q 0 0 0 rg BT 162.07 198.10 Td (ASB issued amended guidance that improves the accounting for the income tax consequences of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (intra-entity transfers of assets other than inventory) Tj ET Q q 0 0 0 rg BT 250.46 186.10 Td (. Under the new guidance, an entity should recognize the income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ) Tj ET Q q 0 0 0 rg BT 440.84 174.10 Td (The new standard will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (become ef) Tj ET Q q 0 0 0 rg BT 90.68 162.10 Td (fective for our fiscal year beginning October 1, 2018. ) Tj ET Q q 0 0 0 rg BT 306.26 162.10 Td (W) Tj ET Q q 0 0 0 rg BT 314.90 162.10 Td (e are currently assessing the impact of this amended guidance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (and the timing of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 133.10 Td (In May 2016, accounting guidance was issued to clarify the not yet ef) Tj ET Q q 0 0 0 rg BT 350.35 133.10 Td (fective revenue recognition guidance issued in May ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.10 Td (2014. ) Tj ET Q q 0 0 0 rg BT 74.32 121.10 Td (This additional guidance does not change the core principle of the revenue recognition guidance issued in May 2014, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.10 Td (rather) Tj ET Q q 0 0 0 rg BT 72.42 109.10 Td (, it provides clarification of accounting for collections of sales taxes as well as recognition of revenue \(i\) associated with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.10 Td (contract modifications, \(ii\) for noncash consideration, and \(iii\) based on the collectability of the consideration from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.10 Td (customer) Tj ET Q q 0 0 0 rg BT 85.60 85.10 Td (. ) Tj ET Q q 0 0 0 rg BT 90.42 85.10 Td (The guidance also specifies when a contract should be considered completed for purposes of applying the transition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.10 Td (guidance. ) Tj ET Q q 0 0 0 rg BT 90.41 73.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 116.05 73.10 Td (fective date and transition requirements for this guidance are the same as the ef) Tj ET Q q 0 0 0 rg BT 432.13 73.10 Td (fective date and transition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.10 Td (requirements for the guidance previously issued in 2014, which is ef) Tj ET Q q 0 0 0 rg BT 322.86 61.10 Td (fective for our fiscal year beginning September 30, 2018. ) Tj ET Q endstream endobj 173 0 obj <>] /Rotate 0 /Contents 174 0 R>> endobj 174 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 695.10 Td (e are currently evaluating the new guidance and have not determined the impact this standard may have on our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (statements nor have we decided upon the method of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 666.10 Td (In March 2016, the F) Tj ET Q q 0 0 0 rg BT 155.96 666.10 Td (ASB issued amended guidance that simplifies several aspects of the accounting for employee share-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (as well as classification in the statement of cash flows. Under the new guidance, an entity recognizes all excess tax benefits and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (tax deficiencies as income tax expense or benefit in the income statement. ) Tj ET Q q 0 0 0 rg BT 347.82 630.10 Td (This change eliminates the notion of the ) Tj ET Q q 0 0 0 rg BT 510.28 630.10 Td (APIC pool ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (and significantly reduces the complexity and cost of accounting for excess tax benefits and tax deficiencies. ) Tj ET Q q 0 0 0 rg BT 482.78 618.10 Td (The new standard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (will become ef) Tj ET Q q 0 0 0 rg BT 108.74 606.10 Td (fective for our fiscal year beginning October 1, 2017. ) Tj ET Q q 0 0 0 rg BT 324.31 606.10 Td (W) Tj ET Q q 0 0 0 rg BT 332.95 606.10 Td (e are currently assessing the impact of this amended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (guidance and the timing of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 570.10 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 165.96 570.10 Td (ASB issued amended guidance to increase transparency and comparability among or) Tj ET Q q 0 0 0 rg BT 504.56 570.10 Td (ganizations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (The new guidance clarifies the criteria for distinguishing between a finance lease and operating lease, as well as classification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (between the two types of leases, which is substantially unchanged from the previous lease guidance. Further) Tj ET Q q 0 0 0 rg BT 482.03 534.10 Td (, the new guidance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (requires a lessee to recognize in the statement of financial position a liability to make lease payments \(the lease liability\) and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (right-of-use asset, initially measured at the present value of the lease payments. For finance leases, a lessee should recognize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (interest on the lease liability separately from amortization of the right-of-use asset. For operating leases, a lessee should ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.10 Td (recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.10 Td (basis. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.10 Td (lease assets and lease liabilities. ) Tj ET Q q 0 0 0 rg BT 179.28 462.10 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 312.10 462.10 Td (fective for our fiscal year beginning September 29, 2019. ) Tj ET Q q 0 0 0 rg BT 543.23 462.10 Td (W) Tj ET Q q 0 0 0 rg BT 551.87 462.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.10 Td (are currently assessing the impact of this amended guidance and the timing of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 438.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 426.10 Td (In January 2016, the F) Tj ET Q q 0 0 0 rg BT 160.96 426.10 Td (ASB issued amended guidance that revises the recognition and measurement of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.10 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 100.98 414.10 Td (The new guidance requires equity investments \(except those accounted for under the equity method of accounting, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.10 Td (or those that result in consolidation of the investee\) to be measured at fair value with changes in fair value recognized in net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.10 Td (income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (form of financial asset, and eliminates the requirement for public business entities to disclose the method\(s\) and significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 182.32 342.10 Td (fective for our fiscal year beginning September 30, 2018. ) Tj ET Q q 0 0 0 rg BT 413.46 342.10 Td (W) Tj ET Q q 0 0 0 rg BT 422.09 342.10 Td (e are currently assessing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (impact of this amended guidance and the timing of adoption.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (3. BUSINESS COMBINA) Tj ET Q q 0 0 0 rg BT 159.06 296.10 Td (TIONS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 276.10 Td (Rofin-Sinar) Tj ET Q q 0 0 0 rg BT 99.88 276.10 Td ( ) Tj ET Q q 0 0 0 rg BT 102.20 276.10 Td (T) Tj ET Q q 0 0 0 rg BT 107.95 276.10 Td (echnologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 259.10 Td (On November 7, 2016, we acquired Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 267.05 259.10 Td (T) Tj ET Q q 0 0 0 rg BT 272.46 259.10 Td (echnologies, Inc. \("Rofin"\), one of the world's leading developers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.10 Td (manufacturers of high-performance industrial laser sources and laser) Tj ET Q q 0 0 0 rg BT 323.91 247.10 Td (-based solutions and components. See Note16, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.10 Td ("Subsequent Events" for further discussion of the acquisition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (Fiscal 2015 ) Tj ET Q q 0 0 0 rg BT 98.94 215.10 Td (Acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 195.10 Td (Raydiance, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 175.10 Td (On July 24, 2015, we acquired certain assets of Raydiance, Inc. \("Raydiance"\) for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.25 175.10 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 175.10 Td (, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.10 Td (transaction costs. Raydiance manufactured complete tools and lasers for ultrafast processing systems and subsystems in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (precision micromachining processing market. ) Tj ET Q q 0 0 0 rg BT 234.54 151.10 Td (The Raydiance assets have been included in our Specialty Lasers and Systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (segment.) Tj ET Q endstream endobj 175 0 obj <>] /Rotate 0 /Contents 176 0 R>> endobj 176 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 742.10 Td (Our allocation of the purchase price is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 731.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 731.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 701.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 701.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 671.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 671.60 70.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 656.6 m 470 656.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 642.6 m 470 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 640.6 m 470 640.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 721.27 Td (Tangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.50 721.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 721.27 Td (1,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 706.27 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 706.27 Td (1,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 691.27 Td (Intangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 676.27 Td ( Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 676.27 Td (800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 661.27 Td ( Customer lists) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 661.27 Td (1,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 646.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.50 646.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 646.27 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 622.10 Td (The purchase price allocated to goodwill was finalized in the first quarter of fiscal 2016, with an increase of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.73 622.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.62 622.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (and a corresponding decrease of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.83 610.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.72 610.10 Td ( to tangible assets, and has been updated from the preliminary allocation in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (fourth quarter of fiscal 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 578.10 Td (Results of operations for the business have been included in our consolidated financial statements subsequent to the date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (of acquisition and pro forma results of operations in accordance with authoritative guidance for prior periods have not been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 146.77 554.10 Td (fect of the acquisition was not material to our prior period consolidated financial results.) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 72.00 541.03 353.76 -9.09 re f /GS0 gs q 0 0 0 rg BT 72.00 534.10 Td (The identifiable intangible assets are being amortized over their respective useful lives o) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.76 534.10 Td (f ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.59 534.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.58 534.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.35 534.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.90 534.10 Td ( years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 514.10 Td (None of the goodwill from this purchase is deductible for tax purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 494.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 494.10 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.28 494.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.17 494.10 Td ( of acquisition-related costs as selling, general and administrative expenses in our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (statements of operations for our fiscal year 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 462.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.99 462.10 Td (insley Optics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 442.10 Td (On July 27, 2015, we acquired the assets and certain liabilities of the ) Tj ET Q q 0 0 0 rg BT 349.25 442.10 Td (T) Tj ET Q q 0 0 0 rg BT 355.00 442.10 Td (insley Optics \("T) Tj ET Q q 0 0 0 rg BT 423.17 442.10 Td (insley"\) business from L-3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (Communications Corporation for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.57 430.10 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.47 430.10 Td (, excluding transaction costs. ) Tj ET Q q 0 0 0 rg BT 412.59 430.10 Td (T) Tj ET Q q 0 0 0 rg BT 418.35 430.10 Td (insley is a specialized manufacturer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (of high precision optical components and subsystems sold primarily in the aerospace and defense industry) Tj ET Q q 0 0 0 rg BT 473.20 418.10 Td (. ) Tj ET Q q 0 0 0 rg BT 478.02 418.10 Td (T) Tj ET Q q 0 0 0 rg BT 483.77 418.10 Td (insley ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (manufactures the lar) Tj ET Q q 0 0 0 rg BT 130.95 406.10 Td (ge form factor optics for our excimer laser annealing systems. ) Tj ET Q q 0 0 0 rg BT 380.96 406.10 Td (T) Tj ET Q q 0 0 0 rg BT 386.71 406.10 Td (insley has been included in our Specialty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (Lasers and Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 374.10 Td (Our allocation of the purchase price is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 363.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 363.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 333.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 333.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 303.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 303.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 273.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 273.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 243.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 243.60 70.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 243.60000000000002 m 470 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 229.60000000000002 m 470 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 227.60000000000002 m 470 227.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 353.27 Td (Tangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 338.27 Td ( Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.50 338.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 338.27 Td (2,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 323.27 Td ( Accounts receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 323.27 Td (2,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 308.27 Td ( Prepaid expenses and other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 308.27 Td (1,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 293.27 Td ( Property and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 293.27 Td (2,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 278.27 Td (Liabilities assumed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.30 278.32 Td (\(1,702) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 278.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 263.27 Td (Deferred tax liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 263.32 Td (\(768) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 263.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 248.27 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.30 248.32 Td (\(1,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 248.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 233.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.50 233.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 233.27 Td (4,300) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 209.10 Td (The purchase price was lower than the fair value of net assets purchased, resulting in a gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.03 209.10 Td ($1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.53 209.10 Td ( million recorded as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (separate line item in our consolidated statements of operations for our fiscal year 2015. ) Tj ET Q q 0 0 0 rg BT 400.04 197.10 Td (The Company reassessed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (recognition and measurement of identifiable assets acquired and liabilities assumed and concluded that all acquired assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (assumed liabilities were recognized and that the valuation procedures and resulting measures were appropriate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 153.10 Td (Results of operations for the business have been included in our consolidated financial statements subsequent to the date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.10 Td (of acquisition and pro forma results of operations in accordance with authoritative guidance for prior periods have not been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.10 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 146.77 129.10 Td (fect of the acquisition was not material to our prior period consolidated financial results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 109.10 Td (The gain from the bar) Tj ET Q q 0 0 0 rg BT 158.51 109.10 Td (gain purchase is not subject to income taxation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 89.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 89.10 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.28 89.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.17 89.10 Td ( of acquisition-related costs as selling, general and administrative expenses in our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.10 Td (statements of operations for our fiscal year 2015.) Tj ET Q endstream endobj 177 0 obj <>] /Rotate 0 /Contents 178 0 R>> endobj 178 0 obj <> stream BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.39 w 0 i [] 0 d 1 J 1 j 3 M 50 772.93359375 m 106.76171875 772.93359375 l s q 0 0 1 rg BT 50.00 774.00 Td (T) Tj ET Q q 0 0 1 rg BT 54.33 774.00 Td (able of Contents) Tj ET Q BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 754.00 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 754.00 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 754.00 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 734.00 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 734.00 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 734.00 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 734.00 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 734.00 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 734.00 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 734.00 Td (TEMENTS \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (86) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (4. F) Tj ET Q q 0 0 0 rg BT 64.87 695.25 Td (AIR ) Tj ET Q q 0 0 0 rg BT 85.52 695.25 Td (V) Tj ET Q q 0 0 0 rg BT 91.45 695.25 Td (ALUES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 675.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 675.25 Td (e measure our cash equivalents and marketable securities at fair value. ) Tj ET Q q 0 0 0 rg BT 365.72 675.25 Td (The fair values of our financial assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.25 Td (liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.25 Td (markets. ) Tj ET Q q 0 0 0 rg BT 85.97 651.25 Td (W) Tj ET Q q 0 0 0 rg BT 94.61 651.25 Td (e recognize transfers between levels within the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 361.89 651.25 Td (, if any) Tj ET Q q 0 0 0 rg BT 389.29 651.25 Td (, at the end of each quarter) Tj ET Q q 0 0 0 rg BT 495.07 651.25 Td (. ) Tj ET Q q 0 0 0 rg BT 499.89 651.25 Td (There were no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.25 Td (transfers between levels during the periods presented. ) Tj ET Q q 0 0 0 rg BT 266.10 639.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.54 639.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.25 639.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.69 639.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.39 639.25 Td (, we did not have any assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.25 Td (liabilities valued based on Level3 valuations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 607.25 Td (Financial assets and liabilities measured at fair value as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.42 607.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.13 607.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.57 607.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.27 607.25 Td ( are summarized below ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.25 Td (\(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 498.75 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 498.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 498.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 498.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 498.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 498.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 498.75 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 498.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 498.75 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 498.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 498.75 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 498.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 498.75 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 468.75 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 468.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 468.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 468.75 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 468.75 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 468.75 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 468.75 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 429.75 156.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 429.75 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 429.75 46.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 429.75 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 429.75 60.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 429.75 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 429.75 48.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 429.75 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 429.75 47.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 429.75 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 429.75 59.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 429.75 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 429.75 49.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 388.75 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 388.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 388.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 388.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 388.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 388.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 388.75 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 388.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 388.75 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 388.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 388.75 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 388.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 388.75 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 358.75 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 358.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 358.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 358.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 358.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 358.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 358.75 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 358.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 358.75 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 358.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 358.75 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 358.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 358.75 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 328.75 156.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 328.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 328.75 46.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 328.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 328.75 60.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 328.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 328.75 48.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 328.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 328.75 47.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 328.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 328.75 59.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 328.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 328.75 49.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 284.75 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 284.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 284.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 284.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 284.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 284.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 284.75 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 284.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 284.75 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 284.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 284.75 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 284.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 284.75 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 254.75 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 254.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 254.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 254.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 254.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 254.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 254.75 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 254.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 254.75 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 254.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 254.75 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 254.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 254.75 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 224.75 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 224.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 224.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 224.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 224.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 224.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 224.75 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 224.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 224.75 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 224.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 224.75 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 224.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 224.75 49.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229 524.75 m 233 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 524.75 m 279 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 524.75 m 283 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 524.75 m 343 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 524.75 m 347 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 524.75 m 395 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 524.75 m 446 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 524.75 m 450 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 524.75 m 509 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 524.75 m 513 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 524.75 m 562 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229 511.75 m 233 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 511.75 m 279 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 511.75 m 283 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 511.75 m 343 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 511.75 m 347 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 511.75 m 395 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 524.75 m 446 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 511.75 m 446 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 524.75 m 450 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 511.75 m 450 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 524.75 m 509 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 511.75 m 509 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 524.75 m 513 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 511.75 m 513 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 524.75 m 562 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 511.75 m 562 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 511.75 m 446 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 511.75 m 450 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 511.75 m 509 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 511.75 m 562 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 299.75 m 343 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 299.75 m 395 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 299.75 m 446 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 299.75 m 509 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 299.75 m 562 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 299.75 m 279 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 285.75 m 279 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 283.75 m 279 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 299.75 m 343 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 285.75 m 343 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 283.75 m 343 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 299.75 m 395 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 285.75 m 395 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 283.75 m 395 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 299.75 m 446 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 285.75 m 446 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 283.75 m 446 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 299.75 m 509 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 285.75 m 509 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 283.75 m 509 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 299.75 m 562 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 285.75 m 562 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 283.75 m 562 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 224.75 m 343 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 224.75 m 395 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 224.75 m 509 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 224.75 m 562 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 224.75 m 279 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 210.75 m 279 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 208.75 m 279 208.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 224.75 m 343 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 210.75 m 343 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 208.75 m 343 208.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 210.75 m 395 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 208.75 m 395 208.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 224.75 m 446 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 210.75 m 446 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 208.75 m 446 208.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 224.75 m 509 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 210.75 m 509 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 208.75 m 509 208.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 224.75 m 562 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 210.75 m 562 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 208.75 m 562 208.75 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 75.50 527.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 238.00 536.98 Td (Aggregate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 237.65 528.98 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.35 560.98 Td (QuotedPrices) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 309.15 552.98 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.15 544.98 Td (ActiveMarkets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.35 536.98 Td (for) Tj ET Q q 0 0 0 rg BT 301.42 536.98 Td (Identical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.80 528.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.05 552.98 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.35 544.98 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.90 536.98 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.35 528.98 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.50 536.98 Td (Aggregate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.15 528.98 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.85 560.98 Td (QuotedPrices) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.65 552.98 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.65 544.98 Td (ActiveMarkets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.85 536.98 Td (forIdentical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.30 528.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.55 552.98 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.85 544.98 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.40 536.98 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.85 528.98 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.50 515.98 Td (Fiscal year-end 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.00 515.98 Td (Fiscal year-end 2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 150.50 501.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.50 502.98 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 355.50 502.98 Td (\(Level2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.00 502.98 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 502.98 Td (\(Level2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 488.42 Td (Assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 473.42 Td (Cash equivalents:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 458.42 Td (Money market fund deposits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.50 458.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.60 458.42 Td (237,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.50 458.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.65 458.42 Td (237,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 458.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 458.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 458.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 458.42 Td (8,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.50 458.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 458.42 Td (8,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.50 458.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 458.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 434.42 Td (Short-term investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 418.42 Td (U.S. ) Tj ET Q q 0 0 0 rg BT 107.60 418.42 Td (T) Tj ET Q q 0 0 0 rg BT 113.36 418.42 Td (reasury and agency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 408.42 Td (obligations ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 134.44 412.95 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 408.42 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 408.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 408.42 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.60 408.42 Td (150,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 408.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.60 408.42 Td (150,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 393.42 Td (Corporate notes and obligations ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 217.48 397.95 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.15 393.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 393.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 393.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.60 393.42 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 393.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 393.42 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 378.42 Td (Commercial paper ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 164.14 382.95 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.60 378.42 Td (24,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 378.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.60 378.42 Td (24,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 378.42 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 378.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 378.42 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 363.42 Td (Equity securities ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 156.93 367.95 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.60 363.42 Td (20,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 363.42 Td (20,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 363.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.60 363.42 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 363.42 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 363.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 348.42 Td (Prepaid and other assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 333.42 Td (Foreign currency contracts ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 197.18 337.95 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 333.42 Td (889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 333.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 333.42 Td (889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 333.42 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 333.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 333.42 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 314.42 Td (Mutual funds Deferred comp ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 304.42 Td (and supplemental plan ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 179.98 308.95 Td (\(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.60 304.42 Td (14,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 304.42 Td (14,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 304.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.60 304.42 Td (13,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 304.42 Td (13,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 304.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 289.42 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.50 289.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.60 289.42 Td (298,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.50 289.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.65 289.42 Td (272,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 289.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.60 289.42 Td (26,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 289.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.60 289.42 Td (217,354) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.50 289.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 289.42 Td (38,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.50 289.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.60 289.42 Td (178,688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 259.42 Td (Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 244.42 Td (Other current liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 229.42 Td (Foreign currency contracts ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 197.18 233.95 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.30 229.42 Td (\(3,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.15 229.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 229.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.30 229.47 Td (\(3,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 229.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.80 229.47 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.15 229.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 229.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 229.47 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 229.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 214.42 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.50 214.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.60 214.42 Td (294,936) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.50 214.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.65 214.42 Td (272,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 214.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.60 214.42 Td (22,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 214.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.60 214.42 Td (217,115) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.50 214.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 214.42 Td (38,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.50 214.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.60 214.42 Td (178,449) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (___________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.25 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 170.25 Td (V) Tj ET Q q 0 0 0 rg BT 78.11 170.25 Td (aluations are based upon quoted market prices.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.25 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.00 150.25 Td (V) Tj ET Q q 0 0 0 rg BT 78.11 150.25 Td (aluations are based upon quoted market prices in active markets involving similar assets. ) Tj ET Q q 0 0 0 rg BT 435.61 150.25 Td (The market inputs used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 138.25 Td (value these instruments generally consist of market yields, reported trades, broker/dealer quotes or alternative pricing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 126.25 Td (sources with reasonable levels of price transparency) Tj ET Q q 0 0 0 rg BT 279.60 126.25 Td (. Pricing sources include industry standard data providers, security ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 114.25 Td (master files from lar) Tj ET Q q 0 0 0 rg BT 153.18 114.25 Td (ge financial institutions, and other third party sources which are input into a distribution-curve-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 102.25 Td (algorithm to determine a daily market value. ) Tj ET Q q 0 0 0 rg BT 252.31 102.25 Td (This creates a consensus price or a weighted average price for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 90.25 Td (security) Tj ET Q q 0 0 0 rg BT 103.01 90.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.00 70.25 Td (The principal market in which we execute our foreign currency contracts is the institutional market in an over) Tj ET Q q 0 0 0 rg BT 510.25 70.25 Td (-the-counter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 58.25 Td (environment with a relatively high level of price transparency) Tj ET Q q 0 0 0 rg BT 318.48 58.25 Td (. ) Tj ET Q q 0 0 0 rg BT 323.30 58.25 Td (The market participants usually are lar) Tj ET Q q 0 0 0 rg BT 477.22 58.25 Td (ge commercial ) Tj ET Q endstream endobj 179 0 obj <>] /Rotate 0 /Contents 180 0 R>> endobj 180 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (4. F) Tj ET Q q 0 0 0 rg BT 65.37 712.60 Td (AIR ) Tj ET Q q 0 0 0 rg BT 86.02 712.60 Td (V) Tj ET Q q 0 0 0 rg BT 91.95 712.60 Td (ALUES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (87) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 695.10 Td (banks. Our foreign currency contracts) Tj ET Q q 0 0 0 rg BT 225.92 695.10 Td ( valuation inputs are based on quoted prices and quoted pricing intervals from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 683.10 Td (public data sources and do not involve management judgment. ) Tj ET Q q 0 0 0 rg BT 324.16 683.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.66 683.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.37 683.10 Td (, prepaid expenses and other assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 671.10 Td (include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.93 671.10 Td ($889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.93 671.10 Td ( non-designated forward contracts; other current liabilities include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.06 671.10 Td ($3,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.56 671.10 Td ( non-designated forward contracts. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 659.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.50 659.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.21 659.10 Td (, prepaid expenses and other assets include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.04 659.10 Td ($217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.04 659.10 Td ( non-designated forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.82 659.10 Td ($41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.82 659.10 Td ( foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 647.10 Td (currency contracts designated for cash flow hedges, respectively; other current liabilities include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.46 647.10 Td ($239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.46 647.10 Td ( non-designated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 635.10 Td (forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.68 635.10 Td ($0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.68 635.10 Td ( foreign currency contracts designated for cash flow hedges, respectively) Tj ET Q q 0 0 0 rg BT 462.58 635.10 Td (. See Note 6, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 623.10 Td ("Derivative Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 223.83 623.10 Td (Activities". ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.10 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.00 603.10 Td (The fair value of mutual funds is determined based on quoted market prices. Securities traded on a national exchange are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 591.10 Td (stated at the last reported sales price on the day of valuation; other securities traded in over) Tj ET Q q 0 0 0 rg BT 435.00 591.10 Td (-the-counter markets and listed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 579.10 Td (securities for which no sale was reported on that date are stated as the last quoted bid price. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (5. SHOR) Tj ET Q q 0 0 0 rg BT 87.49 539.10 Td (T) Tj ET Q q 0 0 0 rg BT 93.24 539.10 Td (-TERM INVESTMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 519.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 519.10 Td (e consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.10 Td (equivalents. Investments classified as available-for) Tj ET Q q 0 0 0 rg BT 252.84 507.10 Td (-sale are reported at fair value with unrealized gains and losses, net of related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (income taxes, recorded as a separate component of OCI in stockholders' equity until realized. Interest and amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.10 Td (premiums and discounts for debt securities are included in interest income. Gains and losses on securities sold are determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (based on the specific identification method and are included in other income \(expense\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 451.10 Td (Cash, cash equivalents and short-term investments consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 407.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 407.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 407.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 407.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 407.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 407.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 407.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 407.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 379.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 379.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 379.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 379.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 379.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 379.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 379.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 379.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 351.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 351.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 351.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 351.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 351.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 351.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 351.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 351.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 323.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 323.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 323.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 323.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 323.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 323.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 323.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 323.60 70.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 419.6 m 337 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 419.6 m 342 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 419.6 m 412 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 419.6 m 417 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 419.6 m 487 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 419.6 m 492 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 419.6 m 562 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 407.6 m 337 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 407.6 m 412 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 407.6 m 487 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 407.6 m 562 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 394.6 m 337 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 392.6 m 337 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 394.6 m 412 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 392.6 m 412 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 394.6 m 487 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 392.6 m 487 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 394.6 m 562 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 392.6 m 562 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 392.6 m 337 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 394.6 m 337 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 392.6 m 562 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 394.6 m 562 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 323.6 m 337 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 323.6 m 412 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 323.6 m 487 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 323.6 m 337 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 310.6 m 337 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 308.6 m 337 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 323.6 m 412 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 310.6 m 412 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 308.6 m 412 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 323.6 m 487 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 310.6 m 487 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 308.6 m 487 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 323.6 m 562 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 310.6 m 562 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 308.6 m 562 308.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 423.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.50 423.83 Td (Fiscal year-end 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 411.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.30 411.68 Td (Cost Basis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.90 411.68 Td (Unrealized Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.75 411.68 Td (Unrealized Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.65 411.68 Td (Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 398.17 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 398.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 398.17 Td (354,347) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 398.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 398.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 398.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 398.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 398.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 398.17 Td (354,347) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 384.17 Td (Short-term investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 384.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 384.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 384.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 384.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 370.17 Td (Available-for-sale securities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 370.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 370.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 370.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 370.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 356.17 Td (Commercial paper) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 356.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 356.17 Td (24,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 356.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 356.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 356.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 356.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 356.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 356.17 Td (24,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 342.17 Td (U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.15 342.17 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 342.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 342.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 342.17 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 328.17 Td (Equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 328.17 Td (15,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 328.17 Td (5,213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 328.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 328.17 Td (20,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 314.17 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 314.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 314.17 Td (40,393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 314.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 314.17 Td (5,213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 314.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 314.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 314.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 314.17 Td (45,606) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 262.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 262.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 262.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 262.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 262.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 262.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 262.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 262.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 234.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 234.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 234.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 234.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 234.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 234.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 234.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 234.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 206.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 206.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 206.60 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 206.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 206.60 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 206.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 206.60 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 206.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 179.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 179.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 179.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 179.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 179.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 179.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 179.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 179.60 70.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 274.6 m 337 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 274.6 m 342 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 274.6 m 412 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 274.6 m 417 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 274.6 m 487 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 274.6 m 492 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 274.6 m 562 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 262.6 m 337 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 262.6 m 412 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 262.6 m 487 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 262.6 m 562 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 249.60000000000002 m 412 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 247.60000000000002 m 412 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 249.60000000000002 m 487 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 247.60000000000002 m 487 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 247.60000000000002 m 337 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 249.60000000000002 m 337 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 247.60000000000002 m 562 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 249.60000000000002 m 562 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 165.60000000000002 m 337 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 165.60000000000002 m 412 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 165.60000000000002 m 487 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 165.60000000000002 m 562 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 165.60000000000002 m 337 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 152.60000000000002 m 337 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 150.60000000000002 m 337 150.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 165.60000000000002 m 412 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 152.60000000000002 m 412 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 150.60000000000002 m 412 150.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 165.60000000000002 m 487 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 152.60000000000002 m 487 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 150.60000000000002 m 487 150.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 165.60000000000002 m 562 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 152.60000000000002 m 562 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 150.60000000000002 m 562 150.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 278.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.50 279.68 Td (Fiscal year) Tj ET Q q 0 0 0 rg BT 416.30 279.68 Td (-end 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 266.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.30 266.68 Td (Cost Basis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.90 266.68 Td (Unrealized Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.75 266.68 Td (Unrealized Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.65 266.68 Td (Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 253.17 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 253.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 253.17 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 253.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 253.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 253.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 253.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 253.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 253.17 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 239.17 Td (Short-term investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 239.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 239.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 239.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 239.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 225.17 Td (Available-for-sale securities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 225.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 225.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 225.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 225.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 211.17 Td (Commercial paper) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 211.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 211.17 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 211.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 211.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 211.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 211.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 211.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 211.17 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 197.17 Td (U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 197.17 Td (149,708) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 197.17 Td (1,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 197.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 197.17 Td (150,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 184.17 Td (Corporate notes and obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 184.17 Td (17,892) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 184.17 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.80 184.22 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 184.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 184.17 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 170.17 Td (Equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 170.17 Td (15,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 170.17 Td (1,209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 170.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 170.17 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 156.17 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 156.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 156.17 Td (192,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 156.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 156.17 Td (2,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 156.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.80 156.22 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 156.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 156.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 156.17 Td (194,908) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 128.10 Td (None of the unrealized losses as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.40 128.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.11 128.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.44 128.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.14 128.10 Td ( were considered to be other) Tj ET Q q 0 0 0 rg BT 470.95 128.10 Td (-than-temporary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (impairments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 96.10 Td (The amortized cost and estimated fair value of available-for) Tj ET Q q 0 0 0 rg BT 312.64 96.10 Td (-sale investments in debt securities as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.21 96.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.91 96.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.10 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 84.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.15 84.10 Td (, classified as short-term investments on our consolidated balance sheets, were as follows \(in thousands\):) Tj ET Q endstream endobj 181 0 obj <>] /Rotate 0 /Contents 182 0 R>> endobj 182 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (5. SHOR) Tj ET Q q 0 0 0 rg BT 87.99 712.60 Td (T) Tj ET Q q 0 0 0 rg BT 93.74 712.60 Td (-TERM INVESTMENTS \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (88) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 654.50 219.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 654.50 69.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 654.50 5.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 654.50 70.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 654.50 5.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 654.50 70.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 654.50 5.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 654.50 70.00 -26.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 687.5 m 337 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 687.5 m 342 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 687.5 m 412 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 687.5 m 417 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 687.5 m 487 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 687.5 m 492 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 687.5 m 562 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 674.5 m 337 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 674.5 m 342 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 674.5 m 412 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 674.5 m 487 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 674.5 m 492 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 674.5 m 562 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 654.5 m 337 654.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 654.5 m 412 654.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 654.5 m 487 654.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 654.5 m 562 654.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 629.5 m 337 629.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 627.5 m 337 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 629.5 m 412 629.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 627.5 m 412 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 654.5 m 487 654.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 629.5 m 487 629.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 627.5 m 487 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 629.5 m 562 629.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 627.5 m 562 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 603.5 m 337 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 601.5 m 337 601.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 603.5 m 412 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 601.5 m 412 601.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 603.5 m 487 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 601.5 m 487 601.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 603.5 m 562 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 601.5 m 562 601.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 692.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.50 691.73 Td (Fiscal year-end) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 678.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.50 678.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.00 678.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 658.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.00 658.73 Td (Amortized Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.90 666.58 Td (Estimated Fair) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.85 658.58 Td (Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.50 658.73 Td (Amortized Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.90 666.58 Td (Estimated Fair) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.85 658.58 Td (Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 643.17 Td (Investments in available-for-sale debt securities due) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 633.17 Td (in less than one year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 633.17 Td (25,124) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 633.17 Td (25,124) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 633.17 Td (148,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 633.17 Td (149,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 619.07 Td (Investments in available-for) Tj ET Q q 0 0 0 rg BT 163.48 619.07 Td (-sale debt securities due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 609.07 Td (in one to five years ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 130.64 613.60 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 607.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.15 607.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 607.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 607.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 607.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 607.17 Td (29,252) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 607.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 607.17 Td (29,330) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 573.60 Td (\(1\) Classified as short-term investments because these securities are highly liquid and can be sold at any time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 553.60 Td (During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.49 553.60 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.49 553.60 Td (, we received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.10 553.60 Td ($126.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.99 553.60 Td ( from the sale of available-for) Tj ET Q q 0 0 0 rg BT 452.90 553.60 Td (-sale securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.60 Td (realized gross gains of less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.91 541.60 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.80 541.60 Td (. During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.79 541.60 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.79 541.60 Td (, we received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.40 541.60 Td ($163.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.29 541.60 Td ( from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.60 Td (available-for) Tj ET Q q 0 0 0 rg BT 100.38 529.60 Td (-sale securities and realized gross gains of less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.37 529.60 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.26 529.60 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 489.60 Td (6. DERIV) Tj ET Q q 0 0 0 rg BT 90.44 489.60 Td (A) Tj ET Q q 0 0 0 rg BT 96.92 489.60 Td (TIVE INSTRUMENTS ) Tj ET Q q 0 0 0 rg BT 199.17 489.60 Td (AND HEDGING ) Tj ET Q q 0 0 0 rg BT 273.62 489.60 Td (ACTIVITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 469.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 469.60 Td (e maintain operations in various countries outside of the United States and have foreign subsidiaries that manufacture ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.60 Td (and sell our products in various global markets. ) Tj ET Q q 0 0 0 rg BT 241.78 457.60 Td (The majority of our sales are transacted in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 501.58 457.60 Td (, we do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.60 Td (generate revenues in other currencies, primarily the Euro, Japanese ) Tj ET Q q 0 0 0 rg BT 319.84 445.60 Td (Y) Tj ET Q q 0 0 0 rg BT 326.06 445.60 Td (en, South Korean ) Tj ET Q q 0 0 0 rg BT 398.09 445.60 Td (W) Tj ET Q q 0 0 0 rg BT 406.73 445.60 Td (on and Chinese Renminbi \(RMB\). ) Tj ET Q q 0 0 0 rg BT 546.17 445.60 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.60 Td (a result, our earnings, cash flows and cash balances are exposed to fluctuations in foreign currency exchange rates. ) Tj ET Q q 0 0 0 rg BT 510.53 433.60 Td (W) Tj ET Q q 0 0 0 rg BT 519.17 433.60 Td (e attempt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.60 Td (to limit these exposures through financial market instruments. ) Tj ET Q q 0 0 0 rg BT 299.54 421.60 Td (W) Tj ET Q q 0 0 0 rg BT 308.18 421.60 Td (e utilize derivative instruments, primarily forward contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.60 Td (with maturities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.10 409.60 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.87 409.60 Td ( months or less, to manage our exposure associated with anticipated cash flows and net asset and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.60 Td (liability positions denominated in foreign currencies. Gains and losses on the forward contracts are mitigated by gains and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.60 Td (losses on the underlying instruments. ) Tj ET Q q 0 0 0 rg BT 200.42 385.60 Td (W) Tj ET Q q 0 0 0 rg BT 209.06 385.60 Td (e do not use derivative financial instruments for speculative or trading purposes. ) Tj ET Q q 0 0 0 rg BT 532.40 385.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.60 Td (credit risk amounts represent the Company) Tj ET Q q 0 0 0 rg BT 224.18 373.60 Td (s gross exposure to potential accounting loss on derivative instruments that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.60 Td (outstanding or unsettled if all counterparties failed to perform according to the terms of the contract, based on then-current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.60 Td (currency rates at each respective date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 329.60 Td (For derivative instruments that are not designated as hedging instruments, gains and losses are recognized in other income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.60 Td (\(expense\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 297.60 Td (On ) Tj ET Q q 0 0 0 rg BT 85.67 297.60 Td (August 1, 2016, we purchased forward contracts totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.05 297.60 Td (670.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.95 297.60 Td ( Euros, with a value date of November 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.60 Td (2016, to limit our foreign exchange risk related to the commitment of our term loan \(denominated in Euros\) in an amount of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.60 Td (Euro equivalent of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.42 273.60 Td ($750.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.31 273.60 Td ( to finance the U.S. dollar payment for the acquisition of Rofin. ) Tj ET Q q 0 0 0 rg BT 441.09 273.60 Td (As of October 1, 2016, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.60 Td (had recognized an unrealized loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.77 261.60 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.66 261.60 Td ( on these contracts in other income \(expense\) net. Subsequent to October 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.60 Td (2016, we settled these hedges at a net gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.50 249.60 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.39 249.60 Td (, resulting in a realized gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.79 249.60 Td ($5.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.68 249.60 Td ( in the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.60 Td (fiscal 2017. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 217.60 Td (Non-Designated Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 197.60 Td (The outstanding notional contract and fair value asset \(liability\) amounts of non-designated hedge contracts, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.60 Td (maximum maturity of sevenmonths, are as follows \(in thousands\):) Tj ET Q endstream endobj 183 0 obj <>] /Rotate 0 /Contents 184 0 R>> endobj 184 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (6. DERIV) Tj ET Q q 0 0 0 rg BT 90.94 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 97.42 712.60 Td (TIVE INSTRUMENTS ) Tj ET Q q 0 0 0 rg BT 199.67 712.60 Td (AND HEDGING ) Tj ET Q q 0 0 0 rg BT 274.12 712.60 Td (ACTIVITIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (89) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 669.50 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 669.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 669.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 669.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 669.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 669.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 669.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 669.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 641.50 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 641.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 641.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 641.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 641.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 641.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 641.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 641.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 613.50 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 613.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 613.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 613.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 613.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 613.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 613.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 613.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 585.50 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 585.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 585.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 585.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 585.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 585.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 585.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 585.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 557.50 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 557.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 557.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 557.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 557.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 557.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 557.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 557.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 529.50 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 529.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 529.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 529.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 529.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 529.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 529.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 529.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 501.50 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 501.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 501.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 501.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 501.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 501.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 501.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 501.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 473.50 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 473.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 473.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 473.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 473.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 473.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 473.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 473.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 445.50 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 445.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 445.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 445.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 445.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 445.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 445.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 445.50 58.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 688.5 m 355 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 688.5 m 359 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 688.5 m 416 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 688.5 m 477 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 688.5 m 481 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 688.5 m 539 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 688.5 m 355 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 669.5 m 355 669.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 688.5 m 416 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 669.5 m 416 669.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 688.5 m 477 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 669.5 m 477 669.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 688.5 m 539 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 669.5 m 539 669.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 173.00 692.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.30 692.73 Td (U.S. Notional Contract Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.05 692.73 Td (U.S. Fair Value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 674.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 307.55 680.58 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 317.50 672.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 369.05 680.58 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.00 672.58 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.05 680.58 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.00 672.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.55 680.58 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.50 672.58 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 660.07 Td (Euro currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.50 660.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 660.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 660.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 660.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 646.07 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 646.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.65 646.18 Td (91,108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 646.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.65 646.07 Td (52,699) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 646.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 646.18 Td (162) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 646.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 646.07 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 632.07 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 632.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.30 632.23 Td (\(750,454) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 632.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 632.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 632.07 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 632.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.30 632.23 Td (\(2,234) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 632.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 632.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 632.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 604.07 Td (South Korean WON currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 590.07 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 590.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.65 590.18 Td (31,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 590.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 590.07 Td (253) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 590.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 590.18 Td (413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 590.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 590.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 576.07 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 576.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.30 576.23 Td (\(37,929) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 576.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 576.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.30 576.12 Td (\(17,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 576.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 576.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.80 576.23 Td (\(152) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 576.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 576.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 576.07 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 548.07 Td (Chinese RMB currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 534.07 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 534.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.30 534.23 Td (\(25,237) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 534.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 534.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.30 534.12 Td (\(10,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 534.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 534.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.80 534.23 Td (\(91) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 534.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 534.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.80 534.12 Td (\(106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 534.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 506.07 Td (Japanese Yen currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 492.07 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 492.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.15 492.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 492.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 492.07 Td (558) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 492.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 492.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 492.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 492.07 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 478.07 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 478.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.30 478.23 Td (\(36,450) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 478.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 478.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.30 478.12 Td (\(15,804) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 478.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 478.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.80 478.23 Td (\(343) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 478.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 478.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 478.12 Td (\(84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 478.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 450.07 Td (Other foreign currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.50 450.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 450.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 450.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 450.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 436.07 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 436.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.65 436.18 Td (6,033) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 436.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 436.07 Td (3,283) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 436.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.80 436.23 Td (\(4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 436.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 436.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 436.12 Td (\(49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 436.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 422.07 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 422.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.30 422.23 Td (\(1,775) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 422.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 422.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.30 422.12 Td (\(5,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 422.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 422.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 422.18 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 422.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 422.07 Td (146) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 398.00 Td (Designated Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 381.00 Td (Cash flow hedges related to anticipated transactions are designated and documented at the inception of the hedge when we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.00 Td (enter into contracts for specific future transactions. Cash flow hedges are evaluated for ef) Tj ET Q q 0 0 0 rg BT 406.39 369.00 Td (fectiveness quarterly) Tj ET Q q 0 0 0 rg BT 488.76 369.00 Td (. ) Tj ET Q q 0 0 0 rg BT 493.58 369.00 Td (The ef) Tj ET Q q 0 0 0 rg BT 519.22 369.00 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.00 Td (portion of the gain or loss on these hedges is reported as a component of OCI in stockholder's equity and is reclassified into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.00 Td (earnings when the underlying transaction af) Tj ET Q q 0 0 0 rg BT 224.54 345.00 Td (fects earnings. ) Tj ET Q q 0 0 0 rg BT 284.61 345.00 Td (W) Tj ET Q q 0 0 0 rg BT 293.25 345.00 Td (e had no cash flow hedges outstanding at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.88 345.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.58 345.00 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.00 Td (Changes in the fair value of currency forward contracts due to changes in time value are excluded from the assessment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.00 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 321.00 Td (fectiveness and recognized in other income \(expense\) as incurred. ) Tj ET Q q 0 0 0 rg BT 322.90 321.00 Td (W) Tj ET Q q 0 0 0 rg BT 331.54 321.00 Td (e classify the cash flows from the foreign exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.00 Td (forward contracts that are accounted for as cash flow hedges in the same section as the underlying item, primarily within cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.00 Td (flows from operating activities since we do not designate our cash flow hedges as investing or financing activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 277.00 Td (The outstanding notional contract and fair value asset \(liability\) amounts of designated cash flow hedge contracts, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.00 Td (have all been settled prior to October 1, 2016, are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 74.00 214.50 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 214.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 214.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 214.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 214.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 214.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 214.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 214.50 58.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 233.5 m 379 233.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 233.5 m 383 233.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 233.5 m 440 233.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 233.5 m 501 233.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 233.5 m 505 233.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 233.5 m 563 233.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 233.5 m 379 233.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 214.5 m 379 214.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 233.5 m 440 233.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 214.5 m 440 214.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 233.5 m 501 233.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 214.5 m 501 214.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 233.5 m 563 233.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 214.5 m 563 214.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.00 237.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.30 237.73 Td (U.S. Notional Contract Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.05 237.73 Td (U.S. Fair Value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 219.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.55 225.58 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.50 217.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.05 225.58 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.00 217.58 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.05 225.58 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.00 217.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.55 225.58 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.50 217.58 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 205.07 Td (Japanese Yen currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 191.07 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.50 191.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 365.15 191.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 191.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.30 191.12 Td (\(2,903) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 191.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.50 191.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.15 191.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 191.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 191.07 Td (41) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 167.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 167.00 Td (e had entered into certain derivative forward contracts to sell Japanese ) Tj ET Q q 0 0 0 rg BT 365.25 167.00 Td (Y) Tj ET Q q 0 0 0 rg BT 371.47 167.00 Td (en and buy Euro to hedge revenue exposures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.00 Td (related to our photonics-based solutions in ) Tj ET Q q 0 0 0 rg BT 221.14 155.00 Td (Asia. In order to facilitate the hedge, we transacted with counterparties in the U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.00 Td (directly and then allocated the hedge contracts to our af) Tj ET Q q 0 0 0 rg BT 271.17 143.00 Td (filiates through a back-to-back relationship with our German subsidiary) Tj ET Q q 0 0 0 rg BT 557.11 143.00 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.00 Td (The German subsidiary designated these hedge contracts as cash flow hedges under ) Tj ET Q q 0 0 0 rg BT 386.06 131.00 Td (ASC 815. ) Tj ET Q q 0 0 0 rg BT 427.83 131.00 Td (The hedges were settled prior to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.00 Td (October 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 99.00 Td (The fair value of our derivative instruments is included in prepaid expenses and other assets and in other current liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.00 Td (in our Consolidated Balance Sheets \(See Note 4\); such amounts were not material as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.35 87.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.06 87.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.50 87.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.20 87.00 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 67.00 Td (The locations and amounts of designated and non-designated derivative instruments) Tj ET Q q 0 0 0 rg BT 411.83 67.00 Td ( gains and losses in the consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 55.00 Td (financial statements for the fiscal year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.81 55.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.52 55.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.95 55.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.66 55.00 Td ( were as follows \(in thousands\):) Tj ET Q endstream endobj 185 0 obj <>] /Rotate 0 /Contents 186 0 R>> endobj 186 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (6. DERIV) Tj ET Q q 0 0 0 rg BT 90.94 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 97.42 712.60 Td (TIVE INSTRUMENTS ) Tj ET Q q 0 0 0 rg BT 199.67 712.60 Td (AND HEDGING ) Tj ET Q q 0 0 0 rg BT 274.12 712.60 Td (ACTIVITIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (90) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 701.50 146.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 701.50 63.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 701.50 6.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 701.50 75.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 701.50 6.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 701.50 76.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 701.50 9.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 701.50 76.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 647.50 146.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 647.50 63.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 647.50 6.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 647.50 75.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 647.50 6.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 647.50 76.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 647.50 9.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 647.50 76.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 591.50 146.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 591.50 63.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 591.50 6.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 591.50 75.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 591.50 6.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 591.50 76.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 591.50 9.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 591.50 76.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 522.50 146.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 522.50 63.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 522.50 6.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 522.50 75.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 522.50 6.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 522.50 76.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 522.50 9.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 522.50 76.00 -25.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223 672.5 m 286 672.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 672.5 m 367 672.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 672.5 m 449 672.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 672.5 m 458 672.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 672.5 m 534 672.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 79.50 676.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.55 692.73 Td (Location in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 239.10 684.73 Td (financial) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 235.75 676.73 Td (statements) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 310.00 676.73 Td (Fiscal 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.50 676.73 Td (Fiscal 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.50 676.73 Td (Fiscal 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.50 662.18 Td (Derivatives designated as) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.50 652.18 Td (hedging instruments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 632.96 Td (Gains\(losses\) in OCI on derivatives) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 623.96 Td (\(effective portion\), after tax) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 623.96 Td (OCI) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 624.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.80 624.23 Td (\(28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 624.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 624.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 624.17 Td (601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 624.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.80 624.22 Td (\(573) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 624.17 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 604.96 Td (Losses reclassified from OCI into) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 595.96 Td (income \(effective portion\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 595.96 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 596.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.15 596.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 596.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.30 596.22 Td (\(1,720) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 596.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 596.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 596.17 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 576.96 Td (Gains\(losses\) reclassified from OCI) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 567.96 Td (into income \(effective portion\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 567.96 Td (Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 568.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.80 568.23 Td (\(58) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 568.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 568.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 568.17 Td (208) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 568.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.80 568.22 Td (\(13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 568.17 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 554.76 Td (Gains\(losses\) recognized in income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 545.76 Td (on derivatives \(ineffective portion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 536.76 Td (and amount excluded from) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 527.76 Td (effectiveness testing\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 535.96 Td (Other income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 526.96 Td (\(expense\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 527.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.80 527.23 Td (\(29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 527.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 527.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 527.22 Td (\(108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 527.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 527.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 527.17 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.50 512.18 Td (Derivatives not designated as) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.50 502.18 Td (hedging instruments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 473.96 Td (Losses recognized in income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 482.96 Td (Other income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 473.96 Td (\(expense\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 474.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.30 474.23 Td (\(10,527) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 474.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 474.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.30 474.22 Td (\(4,320) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 474.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 474.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.30 474.22 Td (\(3,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 474.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 446.00 Td (During the fiscal year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.79 446.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.49 446.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.93 446.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.64 446.00 Td (, we recognized losses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.38 446.00 Td ($31,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.88 446.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.32 446.00 Td ($107,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.82 446.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.00 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 434.00 Td (, in other income \(expense\) as inef) Tj ET Q q 0 0 0 rg BT 234.98 434.00 Td (fectiveness related to a portion of an anticipated hedged transaction that failed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.00 Td (occur within the original hedge period plus two months. ) Tj ET Q q 0 0 0 rg BT 275.95 422.00 Td (The remainder of the hedged transaction occurred as expected and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.00 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 410.00 Td (fective amounts were recognized in revenue or cost of sales as disclosed in the above table.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 390.00 Td (The amounts that will be reclassified from OCI to earnings are generally of) Tj ET Q q 0 0 0 rg BT 374.33 390.00 Td (fset by the recognition of the hedged ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.00 Td (transactions \(e.g., anticipated cost of sales\) in earnings, thereby achieving the realization of prices contemplated by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.00 Td (underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.00 Td (foreign exchange rates. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 334.00 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 334.00 Td (o mitigate credit risk in derivative transactions, we enter into master netting arrangements that allow each counterparty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.00 Td (in the arrangements to net settle amounts of multiple and separate derivative transactions under certain conditions. ) Tj ET Q q 0 0 0 rg BT 508.89 322.00 Td (W) Tj ET Q q 0 0 0 rg BT 517.53 322.00 Td (e present ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.00 Td (the fair value of derivative assets and liabilities within the our consolidated balance sheet on a gross basis even when derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.00 Td (transactions are subject to master netting arrangements and may otherwise qualify for net presentation. Our derivative contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.00 Td (do not contain any credit risk related contingent features and do not require collateral or other security to be furnished by us or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.00 Td (the counterparties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 254.00 Td (Of) Tj ET Q q 0 0 0 rg BT 83.87 254.00 Td (fsetting of Financial ) Tj ET Q q 0 0 0 rg BT 166.36 254.00 Td (Assets/Liabilities under Master Netting ) Tj ET Q q 0 0 0 rg BT 325.78 254.00 Td (Agreements with Derivative Counterparties as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.21 242.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.65 242.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.35 242.00 Td ( \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 103.50 120.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 103.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 103.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 103.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 103.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 103.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 103.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 103.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 103.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 103.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 103.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 103.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 103.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 75.50 120.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 75.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 75.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 75.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 75.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 75.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 75.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 75.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 75.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 75.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 75.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 75.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 75.50 50.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 187.5 m 444.5 187.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 187.5 m 449.5 187.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 187.5 m 499.5 187.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 103.5 m 254.5 103.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 103.5 m 319.5 103.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 103.5 m 384.5 103.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 103.5 m 444.5 103.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 103.5 m 499.5 103.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 103.5 m 554.5 103.5 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 393.45 209.95 Td (Gross Amounts Not Offset) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 406.70 200.95 Td (in the Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 415.35 191.95 Td (Balance Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 212.80 143.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 201.60 134.95 Td (Amounts of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 202.00 125.95 Td (Recognized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 204.00 116.95 Td (Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 212.00 107.95 Td (Assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 277.80 152.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 271.45 143.95 Td (Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 265.25 134.95 Td (Offset in the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 263.70 125.95 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 273.75 116.95 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 276.75 107.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.85 170.95 Td (Net Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 329.10 161.95 Td (of Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 342.00 152.95 Td (Assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 330.20 143.95 Td (Presented in) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 348.00 134.95 Td (the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.70 125.95 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 338.75 116.95 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 341.75 107.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 398.45 125.95 Td (Financial) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.95 116.95 Td (Instruments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 411.25 107.95 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 464.20 125.95 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 454.75 116.95 Td (Collateral) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 456.75 107.95 Td (Received) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 522.25 116.95 Td (Net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 511.45 107.95 Td (Amounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 94.18 Td (As of October 1, 2016:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 80.07 Td (Foreign exchange contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.00 80.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.65 80.07 Td (889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.00 80.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 80.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.00 80.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 80.07 Td (889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.00 80.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.30 80.12 Td (\(860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 80.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 80.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 80.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.00 80.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 80.07 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 66.23 Td (As of October) Tj ET Q q 0 0 0 rg BT 131.25 66.23 Td ( 3, 2015:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 52.07 Td (Foreign exchange contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.00 52.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.65 52.07 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.00 52.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 52.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.00 52.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 52.07 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.00 52.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.30 52.12 Td (\(116) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 52.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 52.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 52.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.00 52.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 52.07 Td (142) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 187 0 obj <>] /Rotate 0 /Contents 188 0 R>> endobj 188 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (6. DERIV) Tj ET Q q 0 0 0 rg BT 90.94 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 97.42 712.60 Td (TIVE INSTRUMENTS ) Tj ET Q q 0 0 0 rg BT 199.67 712.60 Td (AND HEDGING ) Tj ET Q q 0 0 0 rg BT 274.12 712.60 Td (ACTIVITIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 695.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 81.48 695.10 Td (The balances at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.17 695.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.87 695.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.31 695.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.02 695.10 Td ( were related to derivative liabilities which are allowed to be net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 683.10 Td (settled against derivative assets in accordance with the master netting agreements.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 70.00 536.60 119.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.00 536.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.00 536.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 536.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 536.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 536.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 536.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 536.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 536.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 536.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 536.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 536.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 536.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.00 508.60 119.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.00 508.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.00 508.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 508.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 508.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 508.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 508.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 508.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 508.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 508.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 508.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 508.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 508.60 50.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 621.6 m 444 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 621.6 m 449 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 621.6 m 499 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194 536.6 m 254 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259 536.6 m 319 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 536.6 m 384 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 536.6 m 444 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 536.6 m 499 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 536.6 m 554 536.6 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.95 644.05 Td (Gross Amounts Not Offset) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 406.20 635.05 Td (in the Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 414.85 626.05 Td (Balance Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 212.30 577.05 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 201.10 568.05 Td (Amounts of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 201.50 559.05 Td (Recognized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 203.50 550.05 Td (Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 204.20 541.05 Td (Liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 277.30 586.05 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 270.95 577.05 Td (Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 264.75 568.05 Td (Offset in the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 263.20 559.05 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 273.25 550.05 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 276.25 541.05 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.35 604.05 Td (Net Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.60 595.05 Td (of Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 334.20 586.05 Td (Liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 329.70 577.05 Td (Presented in) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 347.50 568.05 Td (the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.20 559.05 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 338.25 550.05 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 341.25 541.05 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 397.95 559.05 Td (Financial) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.45 550.05 Td (Instruments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 410.75 541.05 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 463.70 559.05 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 454.25 550.05 Td (Collateral) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 464.70 541.05 Td (Paid) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 521.75 550.05 Td (Net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 510.95 541.05 Td (Amounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.50 527.28 Td (As of October 1, 2016:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 513.17 Td (Foreign exchange contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.50 513.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.30 513.17 Td (\(3,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.15 513.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.50 513.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.15 513.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 513.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.30 513.22 Td (\(3,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 513.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 513.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.15 513.17 Td (860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.50 513.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 513.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 513.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.30 513.22 Td (\(2,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.15 513.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.50 499.33 Td (As of October) Tj ET Q q 0 0 0 rg BT 131.75 499.33 Td ( 3, 2015:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 485.17 Td (Foreign exchange contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.50 485.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.80 485.17 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.15 485.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.50 485.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.15 485.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 485.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.80 485.22 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 485.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 485.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.15 485.17 Td (116) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.50 485.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 485.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 485.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 485.22 Td (\(123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.15 485.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 461.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 81.48 461.10 Td (The balances at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.17 461.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.87 461.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.31 461.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.02 461.10 Td ( were related to derivative assets which are allowed to be net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 449.10 Td (settled against derivative liabilities in accordance with the master netting agreements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (7. GOODWILL) Tj ET Q q 0 0 0 rg BT 116.74 425.10 Td ( ) Tj ET Q q 0 0 0 rg BT 118.68 425.10 Td (AND INT) Tj ET Q q 0 0 0 rg BT 159.89 425.10 Td (ANGIBLE ) Tj ET Q q 0 0 0 rg BT 207.96 425.10 Td (ASSETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 405.10 Td (Goodwill is tested for impairment on an annual basis and between annual tests if events or circumstances indicate that an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.10 Td (impairment loss may have occurred, and we write down these assets when impaired. ) Tj ET Q q 0 0 0 rg BT 389.50 393.10 Td (W) Tj ET Q q 0 0 0 rg BT 398.13 393.10 Td (e perform our annual impairment tests ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.10 Td (during the fourth quarter of each fiscal year using the opening balance sheet as of the first day of the fourth quarter) Tj ET Q q 0 0 0 rg BT 508.09 381.10 Td (, with any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.10 Td (resulting impairment recorded in the fourth quarter of the fiscal year) Tj ET Q q 0 0 0 rg BT 322.18 369.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 349.10 Td (During fiscal 2016, Coherent had two reporting units: Specialty Laser Systems \("SLS"\) and Commercial Lasers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.10 Td (Components \("CLC"\). In our fiscal 2016 annual testing, we performed a qualitative assessment of the goodwill for our SLS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.10 Td (reporting unit during the fourth quarter of fiscal 2016 using the opening balance sheet as of the first day of the fourth quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 Td (and concluded that it was more likely than not that the fair value of the reporting unit exceeded its carrying amount. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.10 Td (assessing the qualitative factors, we considered the impact of these key factors: macroeconomic conditions, fluctuations in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.10 Td (foreign currency) Tj ET Q q 0 0 0 rg BT 115.20 289.10 Td (, market and industry conditions, our operating and competitive environment, regulatory and political ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (developments, the overall financial performance of the reporting unit including cost factors and budgeted-to-actual revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (results. ) Tj ET Q q 0 0 0 rg BT 80.43 265.10 Td (W) Tj ET Q q 0 0 0 rg BT 89.07 265.10 Td (e also considered our market capitalization, stock price performance and the significant excess between the estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (fair value and carrying value of the SLS reporting unit. Based on our assessment, goodwill in the SLS reporting unit was not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (impaired as of the first day of the fourth quarter of fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 302.20 241.10 Td (As such, it was not necessary to perform the two-step goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (impairment test at that time. For the CLC reporting unit, we elected to bypass the qualitative assessment and proceed directly to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.10 Td (performing the first step of the goodwill impairment test. ) Tj ET Q q 0 0 0 rg BT 279.83 217.10 Td (W) Tj ET Q q 0 0 0 rg BT 288.46 217.10 Td (e performed our Step 1 test using the opening balance sheet as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.10 Td (the first day of the fourth quarter and noted no impairment. ) Tj ET Q q 0 0 0 rg BT 288.14 205.10 Td (W) Tj ET Q q 0 0 0 rg BT 296.78 205.10 Td (e determined the fair value of the CLC reporting unit for the Step ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (1 test using a 50-50% weighting of the Income \(discounted cash flow\) approach and Market \(market comparable\) approach. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.10 Td (Management completed and reviewed the results of the Step 1 analysis and concluded that a Step 2 analysis was not required as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (the estimated fair value of the CLC reporting unit was significantly in excess of its carrying value. Between the completion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.10 Td (that testing and the end of the fourth quarter of fiscal 2016, we noted no indications of impairment or triggering events with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.10 Td (either reporting unit to cause us to review goodwill for potential impairment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 125.10 Td (The changes in the carrying amount of goodwill by segment for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.09 125.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.09 125.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.53 125.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.53 125.10 Td ( are as follows \(in thousands\):) Tj ET Q endstream endobj 189 0 obj <>] /Rotate 0 /Contents 190 0 R>> endobj 190 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (7. GOODWILL) Tj ET Q q 0 0 0 rg BT 117.24 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 119.18 712.60 Td (AND INT) Tj ET Q q 0 0 0 rg BT 160.39 712.60 Td (ANGIBLE ) Tj ET Q q 0 0 0 rg BT 208.46 712.60 Td (ASSETS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (92) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 672.50 316.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 672.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 672.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 672.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 672.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 672.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 642.50 316.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 642.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 642.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 642.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 612.50 316.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 612.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 612.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 612.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 612.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 612.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 582.50 316.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 582.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 582.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 582.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 582.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 582.50 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 672.5 m 432.5 672.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 672.5 m 496.5 672.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 672.5 m 560.5 672.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 672.5 m 432.5 672.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 672.5 m 496.5 672.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 627.5 m 432.5 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 627.5 m 496.5 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 627.5 m 432.5 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 627.5 m 496.5 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 627.5 m 560.5 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 582.5 m 432.5 582.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 582.5 m 496.5 582.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 582.5 m 560.5 582.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 582.5 m 432.5 582.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 568.5 m 432.5 568.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 566.5 m 432.5 566.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 568.5 m 496.5 568.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 566.5 m 496.5 566.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 568.5 m 560.5 568.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 566.5 m 560.5 566.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.95 692.73 Td (Commer) Tj ET Q q 0 0 0 rg BT 408.01 692.73 Td (cial) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.20 684.73 Td (Lasers and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.75 676.73 Td (Components \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.40 692.73 Td (Specialty) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.25 684.73 Td (Laser) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.55 676.73 Td (Systems \(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.25 676.73 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 662.17 Td (Balance as of September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.00 662.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 662.17 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 662.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 662.17 Td (103,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 662.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 662.17 Td (109,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 647.17 Td (Additions \(see Note3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 647.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 647.17 Td (1,119) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 647.17 Td (1,119) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 632.17 Td (Translation adjustments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 632.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.80 632.22 Td (\(8,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 632.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.80 632.22 Td (\(8,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.65 632.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 617.17 Td (Balance as of October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 617.17 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 617.17 Td (95,454) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 617.17 Td (101,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 602.17 Td (Additions \(see Note3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 602.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 602.17 Td (434) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 602.17 Td (434) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 587.17 Td (Translation adjustments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 587.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.30 587.22 Td (\(793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 587.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.30 587.22 Td (\(793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.65 587.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 572.17 Td (Balance as of October 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.00 572.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 572.17 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 572.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 572.17 Td (95,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 572.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 572.17 Td (101,458) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 73.50 550.40 Td (\(1\) Gross amount of goodwill for our CLC segment was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.25 550.40 Td ($25.7 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.37 550.40 Td ( at both ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.36 550.40 Td (October1, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.13 550.40 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.68 550.40 Td (October3, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 443.45 550.40 Td (. ) Tj ET Q q 0 0 0 rg BT 449.00 550.40 Td (At both ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.23 550.40 Td (October1, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 526.99 550.40 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 540.80 Td (October3, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.27 540.80 Td (, the accumulated impairment loss for the CLC reporting unit was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.66 540.80 Td ($19.3 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.77 540.80 Td ( reflecting an impairment char) Tj ET Q q 0 0 0 rg BT 453.47 540.80 Td (ge in fiscal 2009.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 73.50 520.80 Td (\(2\) Gross amount of goodwill for our SLS segment was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.48 520.80 Td ($97.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.59 520.80 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 316.03 520.80 Td ($97.8 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.15 520.80 Td ( at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 368.92 520.80 Td (October1, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.68 520.80 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.24 520.80 Td (October3, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.00 520.80 Td (. ) Tj ET Q q 0 0 0 rg BT 493.56 520.80 Td (At both ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 519.78 520.80 Td (October1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 511.20 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 65.50 511.20 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 81.05 511.20 Td (October3, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 132.82 511.20 Td (, the accumulated impairment loss for the SLS reporting unit was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 343.44 511.20 Td ($2.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.55 511.20 Td ( reflecting an impairment char) Tj ET Q q 0 0 0 rg BT 479.25 511.20 Td (ge in fiscal 2003.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 491.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 491.25 Td (e evaluate long-lived assets and amortizable intangible assets whenever events or changes in business circumstances or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (our planned use of assets indicate that their carrying amounts may not be fully recoverable or that their useful lives are no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (longer appropriate. Reviews are performed to determine whether the carrying values of assets are impaired based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (comparison to the undiscounted expected future cash flows identifiable to such long-lived and amortizable intangible assets. If ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.25 Td (the comparison indicates that impairment exists, the impaired asset is written down to its fair value. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 423.25 Td (During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.99 423.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.99 423.25 Td (, we wrote down IPR&D of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.03 423.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.92 423.25 Td ( related to our fiscal 2013 acquisition of Innolight Innovative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.25 Td (Laser and Systemtechnik GmbH as management abandoned the in-process R&D projects in the fourth quarter of fiscal 2016. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.25 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 399.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 399.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.09 399.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.09 399.25 Td (, we did not have any impairment of intangible assets as a result of the impairment analysis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 379.20 Td (The components of our amortizable intangible assets are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 317.70 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 317.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 317.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 317.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 317.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 317.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 317.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 317.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 317.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 317.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 317.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 317.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 287.70 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 287.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 287.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 287.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 287.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 287.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 287.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 287.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 287.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 287.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 287.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 287.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 257.70 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 257.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 257.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 257.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 257.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 257.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 257.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 257.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 257.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 257.70 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 257.70 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 257.70 55.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 346.70000000000005 m 266.5 346.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 346.70000000000005 m 270.5 346.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 346.70000000000005 m 325.5 346.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 346.70000000000005 m 329.5 346.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 346.70000000000005 m 384.5 346.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 346.70000000000005 m 443.5 346.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 346.70000000000005 m 447.5 346.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 346.70000000000005 m 502.5 346.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 346.70000000000005 m 506.5 346.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 346.70000000000005 m 561.5 346.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 317.70000000000005 m 266.5 317.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 317.70000000000005 m 325.5 317.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 317.70000000000005 m 384.5 317.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 317.70000000000005 m 443.5 317.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 317.70000000000005 m 502.5 317.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 317.70000000000005 m 561.5 317.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 317.70000000000005 m 266.5 317.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 317.70000000000005 m 325.5 317.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 317.70000000000005 m 443.5 317.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 317.70000000000005 m 502.5 317.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 257.70000000000005 m 266.5 257.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 257.70000000000005 m 325.5 257.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 257.70000000000005 m 443.5 257.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 257.70000000000005 m 502.5 257.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 257.70000000000005 m 266.5 257.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 243.70000000000005 m 266.5 243.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 241.70000000000005 m 266.5 241.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 257.70000000000005 m 325.5 257.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 243.70000000000005 m 325.5 243.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 241.70000000000005 m 325.5 241.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 257.70000000000005 m 384.5 257.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 243.70000000000005 m 384.5 243.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 241.70000000000005 m 384.5 241.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 257.70000000000005 m 443.5 257.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 243.70000000000005 m 443.5 243.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 241.70000000000005 m 443.5 241.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 257.70000000000005 m 502.5 257.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 243.70000000000005 m 502.5 243.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 241.70000000000005 m 502.5 241.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 257.70000000000005 m 561.5 257.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 243.70000000000005 m 561.5 243.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 241.70000000000005 m 561.5 241.70000000000005 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 351.38 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.50 350.93 Td (Fiscal year-end 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.50 350.93 Td (Fiscal year-end 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 322.38 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.55 337.93 Td (Gr) Tj ET Q q 0 0 0 rg BT 238.18 337.93 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 222.70 329.93 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 224.45 321.93 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.80 329.93 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.60 321.93 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.50 321.93 Td (Net) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.55 337.93 Td (Gr) Tj ET Q q 0 0 0 rg BT 415.18 337.93 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.70 329.93 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.45 321.93 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.80 329.93 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.60 321.93 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.50 321.93 Td (Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 307.37 Td (Existing technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.00 307.38 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.15 307.38 Td (70,664) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 307.38 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 290.80 307.43 Td (\(61,133) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 307.38 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.00 307.38 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.15 307.38 Td (9,531) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 307.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 307.37 Td (71,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 307.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 307.42 Td (\(55,452) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 307.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.00 307.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 307.37 Td (15,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 292.37 Td (Customer lists) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.15 292.38 Td (15,968) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 290.80 292.43 Td (\(11,658) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 292.38 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.15 292.38 Td (4,310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 292.37 Td (16,099) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.80 292.42 Td (\(9,661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 292.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 292.37 Td (6,438) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 277.37 Td (Trade name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.65 277.38 Td (384) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.30 277.43 Td (\(351) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 277.38 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 370.65 277.38 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 277.37 Td (399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.30 277.42 Td (\(349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 277.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 277.37 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 262.37 Td (In-process research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.65 262.38 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.65 262.38 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 370.65 262.38 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 262.37 Td (375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 262.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 262.37 Td (375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 247.37 Td (Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.00 247.38 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.15 247.38 Td (87,016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 247.38 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 290.80 247.43 Td (\(73,142) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 247.38 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.00 247.38 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.15 247.38 Td (13,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 247.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 247.37 Td (88,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 247.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 247.42 Td (\(65,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 247.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.00 247.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 247.37 Td (22,776) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 221.35 Td (For accounting purposes, when an intangible asset is fully amortized, it is removed from the disclosure schedule. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 199.45 Td (Amortizable intangible assets include intangible assets acquired through business combinations as well as through direct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.45 Td (purchases or licenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 167.45 Td (The weighted average remaining amortization period for existing technology is approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.10 167.45 Td (2.1 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.20 167.45 Td (, the weighted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.45 Td (average remaining amortization period for customer lists is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.31 155.45 Td (2.8 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.41 155.45 Td (, and the weighted average remaining amortization period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.45 Td (for trade name is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.47 143.45 Td (3.1 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.57 143.45 Td (. ) Tj ET Q q 0 0 0 rg BT 160.02 143.45 Td (Amortization expense for intangible assets during fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.39 143.45 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.39 143.45 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.39 143.45 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.39 143.45 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.33 143.45 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.33 143.45 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.88 143.45 Td ($8.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.45 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 131.45 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.39 131.45 Td ($8.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.28 131.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.72 131.45 Td ($9.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.61 131.45 Td (, respectively) Tj ET Q q 0 0 0 rg BT 253.27 131.45 Td (, which includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.04 131.45 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.93 131.45 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.93 131.45 Td ($6.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.82 131.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.26 131.45 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 131.45 Td (, respectively) Tj ET Q q 0 0 0 rg BT 544.81 131.45 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.45 Td (amortization of existing technology) Tj ET Q q 0 0 0 rg BT 191.32 119.45 Td (. ) Tj ET Q q 0 0 0 rg BT 196.14 119.45 Td (The change in accumulated amortization also includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.77 119.45 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.9333333333333333 0.15294117647058825 0.1411764705882353 rg BT 464.67 119.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 467.17 119.45 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.10 119.45 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.00 119.45 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.45 Td (foreign exchange impact for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.16 107.45 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.16 107.45 Td ( and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.75 107.45 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.75 107.45 Td (, respectively) Tj ET Q q 0 0 0 rg BT 325.41 107.45 Td (.) Tj ET Q endstream endobj 191 0 obj <>] /Rotate 0 /Contents 192 0 R>> endobj 192 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (7. GOODWILL) Tj ET Q q 0 0 0 rg BT 117.24 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 119.18 712.60 Td (AND INT) Tj ET Q q 0 0 0 rg BT 160.39 712.60 Td (ANGIBLE ) Tj ET Q q 0 0 0 rg BT 208.46 712.60 Td (ASSETS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (Estimated amortization expense for the next five fiscal years and all years thereafter are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 648.60 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 648.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 620.60 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 620.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 592.60 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 592.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 564.60 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 564.60 70.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 648.6 m 561.5 648.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 648.6 m 561.5 648.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 564.6 m 561.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 564.6 m 561.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 551.6 m 561.5 551.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 549.6 m 561.5 549.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 653.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.65 668.68 Td (Estimated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.10 660.68 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.75 652.68 Td (Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 639.17 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 639.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 639.17 Td (6,932) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 625.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 625.17 Td (4,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 611.17 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 611.17 Td (2,107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 597.17 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 597.17 Td (634) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 583.17 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 583.17 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 569.17 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 569.17 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 555.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 555.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 555.17 Td (13,874) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (8. BALANCE SHEET) Tj ET Q q 0 0 0 rg BT 144.07 527.10 Td ( DET) Tj ET Q q 0 0 0 rg BT 166.38 527.10 Td (AILS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 507.10 Td (Prepaid expenses and other assets consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 462.60 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 462.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 462.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 462.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 434.60 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 434.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 434.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 434.60 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 475.6 m 492.5 475.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 475.6 m 496.5 475.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 475.6 m 561.5 475.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 475.6 m 492.5 475.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 462.6 m 492.5 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 475.6 m 561.5 475.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 462.6 m 561.5 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 462.6 m 492.5 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 462.6 m 561.5 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 420.6 m 492.5 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 420.6 m 561.5 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 420.6 m 492.5 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 407.6 m 492.5 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 405.6 m 492.5 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 420.6 m 561.5 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 407.6 m 561.5 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 405.6 m 561.5 405.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 479.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 479.83 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 466.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 466.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 466.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 453.17 Td (Prepaid and refundable income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 453.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 453.28 Td (12,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 453.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 453.17 Td (8,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 439.17 Td (Other taxes receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 439.28 Td (10,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 439.17 Td (6,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 425.17 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 425.28 Td (14,120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 425.17 Td (12,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 411.17 Td (Total prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 411.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 411.28 Td (37,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 411.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 411.17 Td (28,294) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 387.10 Td (Other assets consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 340.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 340.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 340.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 340.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 310.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 310.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 310.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 310.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 354.6 m 492.5 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 354.6 m 496.5 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 354.6 m 561.5 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 354.6 m 492.5 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 340.6 m 492.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 354.6 m 561.5 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 340.6 m 561.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 340.6 m 492.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 340.6 m 561.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 295.6 m 492.5 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 295.6 m 561.5 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 295.6 m 492.5 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 281.6 m 492.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 279.6 m 492.5 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 295.6 m 561.5 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 281.6 m 561.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 279.6 m 561.5 279.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 359.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 358.83 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 345.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 344.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 344.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 330.27 Td (Assets related to deferred compensation arrangements \(see Note12\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 330.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 330.28 Td (26,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 330.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 330.27 Td (25,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 315.27 Td (Deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 315.28 Td (67,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 315.27 Td (60,254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 300.27 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 300.28 Td (9,221) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 300.27 Td (3,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 285.27 Td (Total other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 285.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 285.28 Td (102,734) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 285.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 285.27 Td (89,226) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 261.10 Td (In fiscal 2010, we invested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.47 261.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.36 261.10 Td ( in SiOnyx,Inc., a privately-held company) Tj ET Q q 0 0 0 rg BT 402.50 261.10 Td (. ) Tj ET Q q 0 0 0 rg BT 407.32 261.10 Td (The investment was included in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.10 Td (assets and was being carried on a cost basis. During the third quarter of fiscal 2015 we determined that our investment became ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.10 Td (other) Tj ET Q q 0 0 0 rg BT 69.85 237.10 Td (-than temporarily impaired. ) Tj ET Q q 0 0 0 rg BT 182.03 237.10 Td (As a result, during the third quarter of fiscal 2015, we recorded a non-cash char) Tj ET Q q 0 0 0 rg BT 499.51 237.10 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.28 237.10 Td ($2.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 225.10 Td ( in our results of operations to impair this investment. In determining the fair value of the cost method investment, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.10 Td (considered many factors including but not limited to operating performance of the investee, the amount of cash that the investee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.10 Td (has on-hand, the ability to obtain additional financing and the overall market conditions in which the investee operates. ) Tj ET Q q 0 0 0 rg BT 528.07 201.10 Td (The fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.10 Td (value of the cost method investment represents a Level 3 valuation as the assumptions used in valuing the investment were not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.10 Td (directly or indirectly observable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 157.10 Td (For our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.22 157.10 Td ($750.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.11 157.10 Td ( debt financing commitment with certain lenders \(See Note 9 "Borrowings"\), we paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.30 157.10 Td ($5.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.19 157.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.10 Td (of debt issuance costs in fiscal 2016 and recorded it to other assets. ) Tj ET Q q 0 0 0 rg BT 319.80 145.10 Td (The debt issuance cost related to the term loan facility will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (be reclassified to debt in the first quarter of fiscal 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 113.10 Td (Other current liabilities consist of the following \(in thousands\):) Tj ET Q endstream endobj 193 0 obj <>] /Rotate 0 /Contents 194 0 R>> endobj 194 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (8. BALANCE SHEET) Tj ET Q q 0 0 0 rg BT 144.57 712.60 Td ( DET) Tj ET Q q 0 0 0 rg BT 166.88 712.60 Td (AILS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (94) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 675.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 675.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 675.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 675.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 647.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 647.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 647.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 647.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 619.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 619.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 619.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 619.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 591.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 591.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 591.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 591.50 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 688.5 m 492.5 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 688.5 m 496.5 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 688.5 m 561.5 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 688.5 m 492.5 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 675.5 m 492.5 675.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 688.5 m 561.5 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 675.5 m 561.5 675.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 675.5 m 492.5 675.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 675.5 m 561.5 675.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 591.5 m 492.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 591.5 m 561.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 591.5 m 492.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 578.5 m 492.5 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 576.5 m 492.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 591.5 m 561.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 578.5 m 561.5 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 576.5 m 561.5 576.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 692.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 692.73 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 679.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 679.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 679.73 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 666.07 Td (Accrued payroll and benefits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 666.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 666.18 Td (47,506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 666.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 666.07 Td (35,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 652.07 Td (Accrued expenses and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 652.18 Td (14,700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 652.07 Td (10,965) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 638.07 Td (Warranty reserve \(see Note 2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 638.18 Td (15,949) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 638.07 Td (15,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 624.07 Td (Other taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 624.18 Td (3,656) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 624.07 Td (4,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 610.07 Td (Customer deposits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 610.18 Td (1,597) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 610.07 Td (1,793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 596.07 Td (Deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 596.18 Td (33,034) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 596.07 Td (16,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 582.07 Td (Total other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 582.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 582.18 Td (116,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 582.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 582.07 Td (84,932) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 558.00 Td (Other long-term liabilities consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 513.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 513.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 513.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 513.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 485.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 485.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 485.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 485.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 457.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 457.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 457.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 457.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 429.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 429.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 429.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 429.50 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 526.5 m 492.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 526.5 m 496.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 526.5 m 561.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 526.5 m 492.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 513.5 m 492.5 513.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 526.5 m 561.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 513.5 m 561.5 513.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 513.5 m 492.5 513.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 513.5 m 561.5 513.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 429.5 m 492.5 429.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 429.5 m 561.5 429.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 429.5 m 492.5 429.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 416.5 m 492.5 416.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 414.5 m 492.5 414.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 429.5 m 561.5 429.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 416.5 m 561.5 416.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 414.5 m 561.5 414.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 530.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 530.73 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 517.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 517.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 517.73 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 504.07 Td (Long-term taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 504.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 504.18 Td (2,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 504.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 504.07 Td (7,651) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 490.07 Td (Deferred compensation \(see Note12\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 490.18 Td (28,313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 490.07 Td (26,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 476.07 Td (Deferred tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 476.18 Td (1,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 476.07 Td (2,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 462.07 Td (Deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 462.18 Td (4,069) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 462.07 Td (3,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 448.07 Td (Asset retirement obligations liability \(see Note2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 448.18 Td (2,796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 448.07 Td (2,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 434.07 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 434.18 Td (9,229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 434.07 Td (7,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 420.07 Td (Total other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 420.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 420.18 Td (48,826) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 420.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 420.07 Td (49,939) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 392.00 Td ( 9. BORROWINGS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 372.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 372.00 Td (e have several lines of credit which allow us to borrow in the applicable local currency) Tj ET Q q 0 0 0 rg BT 428.30 372.00 Td (. ) Tj ET Q q 0 0 0 rg BT 433.12 372.00 Td (W) Tj ET Q q 0 0 0 rg BT 441.76 372.00 Td (e have a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.11 372.00 Td ($13.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.01 372.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.00 Td (of unsecured foreign lines of credit as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.88 360.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.59 360.00 Td (. ) Tj ET Q q 0 0 0 rg BT 283.04 360.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.54 360.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.25 360.00 Td (, we had used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.18 360.00 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.07 360.00 Td ( of these available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 348.00 Td (foreign lines of credit as guarantees. ) Tj ET Q q 0 0 0 rg BT 196.76 348.00 Td (These credit facilities were used in Europe and Japan during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.71 348.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.71 348.00 Td (. In addition, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 336.00 Td (domestic line of credit consists of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.63 336.00 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.52 336.00 Td ( unsecured revolving credit account. ) Tj ET Q q 0 0 0 rg BT 395.06 336.00 Td (The agreement will expire on May31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.00 Td (2017. ) Tj ET Q q 0 0 0 rg BT 74.32 324.00 Td (The line of credit is subject to covenants related to financial ratios and tangible net worth with which we are currently in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.00 Td (compliance. ) Tj ET Q q 0 0 0 rg BT 100.41 312.00 Td (W) Tj ET Q q 0 0 0 rg BT 109.05 312.00 Td (e have an outstanding balance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.33 312.00 Td ($20.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.22 312.00 Td ( and have used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.86 312.00 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.76 312.00 Td ( for letters of credit against our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.00 Td (domestic line of credit as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.35 300.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.06 300.00 Td (. On November 4, 2016, we repaid the outstanding balance, plus accrued interest, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.00 Td (on our domestic line of credit and terminated the credit facility) Tj ET Q q 0 0 0 rg BT 299.87 288.00 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 268.00 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 268.00 Td (November7, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.43 268.00 Td (, we entered into a Credit ) Tj ET Q q 0 0 0 rg BT 264.45 268.00 Td (Agreement \(the Credit ) Tj ET Q q 0 0 0 rg BT 360.80 268.00 Td (Agreement\) with Barclays Bank PLC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.00 Td (\("Barclays"\), Bank of ) Tj ET Q q 0 0 0 rg BT 138.20 256.00 Td (America, N.A. \("BAML"\) and ) Tj ET Q q 0 0 0 rg BT 262.54 256.00 Td (The Bank of ) Tj ET Q q 0 0 0 rg BT 314.84 256.00 Td (T) Tj ET Q q 0 0 0 rg BT 320.25 256.00 Td (okyo-Mitsubishi UFJ, Ltd. \("MUFG"\). ) Tj ET Q q 0 0 0 rg BT 477.97 256.00 Td (The Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.00 Td (Agreement provided for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.57 244.00 Td (670.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.46 244.00 Td ( Euro senior secured term loan facility \(the Euro ) Tj ET Q q 0 0 0 rg BT 409.48 244.00 Td (T) Tj ET Q q 0 0 0 rg BT 414.89 244.00 Td (erm Loan\) and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.63 244.00 Td ($100.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.52 244.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.00 Td (senior secured revolving credit facility) Tj ET Q q 0 0 0 rg BT 203.24 232.00 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.96 232.00 Td (November7, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.66 232.00 Td (, the Euro ) Tj ET Q q 0 0 0 rg BT 339.14 232.00 Td (T) Tj ET Q q 0 0 0 rg BT 344.55 232.00 Td (erm Loan was drawn in full and its proceeds were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.00 Td (used to finance the acquisition of Rofin and pay related fees and expenses. ) Tj ET Q q 0 0 0 rg BT 349.40 220.00 Td (Also, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.79 220.00 Td (November7, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 220.00 Td (, we used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.49 220.00 Td (10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.38 220.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.00 Td (Euro of the capacity under the revolving credit facility for the issuance of a letter of credit. ) Tj ET Q q 0 0 0 rg BT 414.17 208.00 Td (W) Tj ET Q q 0 0 0 rg BT 422.81 208.00 Td (e paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.46 208.00 Td ($5.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.35 208.00 Td ( of debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.00 Td (issuance costs in fiscal 2016 and recorded it to other assets on our consolidated balance sheets as we had not drawn down the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.00 Td (debt as of October 1, 2016. ) Tj ET Q q 0 0 0 rg BT 160.40 184.00 Td (The debt issuance cost related to the term loan facility will be reclassified to debt in the first quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.00 Td (of fiscal 2017. In the fourth quarter of fiscal 2016, we recorded an interest char) Tj ET Q q 0 0 0 rg BT 365.31 172.00 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.07 172.00 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.97 172.00 Td ( interest expense within other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.00 Td (income \(expense\) in our consolidated statement of operations related to the debt financing commitment. See Note16, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.00 Td ("Subsequent Events" for further discussion of the issuance of the financing.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 116.00 Td (10. COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 146.45 116.00 Td (AND CONTINGENCIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 96.00 Td (Commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 76.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 76.00 Td (e lease several of our facilities under operating leases and recognize rent expense on a straight-line basis over the life of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 64.00 Td (the leases.) Tj ET Q endstream endobj 195 0 obj <>] /Rotate 0 /Contents 196 0 R>> endobj 196 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (10. COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 146.95 712.60 Td (AND CONTINGENCIES \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (Future minimum payments under our non-cancelable operating leases at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.80 695.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.51 695.10 Td ( are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 670.60 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 670.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 642.60 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 642.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 614.60 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 614.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 586.60 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 586.60 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 586.6 m 562 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 586.6 m 562 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 573.6 m 562 573.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 571.6 m 562 571.6 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 673.580078125 m 72.49609375 673.580078125 l s q 0 0 0 rg BT 52.50 674.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.50 674.83 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 661.17 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 661.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 661.17 Td (11,548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 647.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 647.17 Td (9,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 633.17 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 633.17 Td (6,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 619.17 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 619.17 Td (4,859) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 605.17 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 605.17 Td (2,852) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 591.17 Td (Thereafter through 2025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 591.17 Td (5,125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 577.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 577.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 577.17 Td (39,854) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 553.10 Td (Rent expense, exclusive of sublease income, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.05 553.10 Td ($12.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.94 553.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.94 553.10 Td ($1) Tj ET Q q 0 0 0 rg BT 340.57 553.10 Td (1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.46 553.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.90 553.10 Td ($1) Tj ET Q q 0 0 0 rg BT 413.53 553.10 Td (1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.42 553.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.35 553.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.35 553.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.35 553.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.35 553.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 541.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.16 541.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 521.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 521.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.65 521.10 Td (, we had total purchase commitments for inventory of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.07 521.10 Td ($73.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.96 521.10 Td ( and purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.10 Td (obligations for fixed assets and services of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.96 509.10 Td ($12.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.85 509.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.55 509.10 Td ($25.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.44 509.10 Td ( of purchase commitments for inventory and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td ($9.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 497.10 Td ( of purchase obligations for fixed assets and services at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.10 497.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.81 497.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 477.10 Td (Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 457.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 457.10 Td (e are subject to legal claims and litigation arising in the ordinary course of business, such as product liability) Tj ET Q q 0 0 0 rg BT 514.05 457.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.10 Td (employment or intellectual property claims, including, but not limited to, the matters described below) Tj ET Q q 0 0 0 rg BT 455.42 445.10 Td (. On May 14, 2013, IMRA) Tj ET Q q 0 0 0 rg BT 561.53 445.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (America \(Imra\) filed a complaint for patent infringement against two of our subsidiaries in the Regional Court of Dsseldorf, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.10 Td (Germany) Tj ET Q q 0 0 0 rg BT 86.06 421.10 Td (, captioned In re IMRA) Tj ET Q q 0 0 0 rg BT 179.09 421.10 Td ( ) Tj ET Q q 0 0 0 rg BT 181.04 421.10 Td (America Inc. versus Coherent Kaiserslautern GmbH et. al. 4b O 38/13. ) Tj ET Q q 0 0 0 rg BT 467.17 421.10 Td (The complaint alleges ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.10 Td (that the use of certain of the Company) Tj ET Q q 0 0 0 rg BT 205.29 409.10 Td (s lasers infringes upon EP) Tj ET Q q 0 0 0 rg BT 308.79 409.10 Td ( Patent No. 754,103, entitled Method For Controlling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.10 Td (Configuration of Laser Induced Breakdown and ) Tj ET Q q 0 0 0 rg BT 243.33 397.10 Td (Ablation, issued November 5, 1997. ) Tj ET Q q 0 0 0 rg BT 394.79 397.10 Td (The patent, now expired in all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.10 Td (jurisdictions, is owned by the University of Michigan and licensed to Imra. ) Tj ET Q q 0 0 0 rg BT 352.04 385.10 Td (The complaint seeks unspecified compensatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.10 Td (damages, the cost of court proceedings and seeks to permanently enjoin the Company from infringing the patent in the future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.10 Td (Following the filing of the infringement suit, our subsidiaries filed a separate nullity action with the Federal Patent Court in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.10 Td (Munich, Germany requesting that the court hold that the Patent was invalid based on prior art. On October 1, 2015, the Federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.10 Td (Patent Court ruled that the German portion of the Patent was invalid. Imra has appealed this decision to the Federal Court of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.10 Td (Justice, the highest civil jurisdiction court in Germany) Tj ET Q q 0 0 0 rg BT 266.03 325.10 Td (. ) Tj ET Q q 0 0 0 rg BT 270.85 325.10 Td (The infringement action is currently stayed pending the outcome of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 Td (appeal. Management has made an accrual with respect to this matter and has determined, based on its current knowledge, that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.10 Td (the amount or range of reasonably possible losses in excess of the amounts already accrued is not reasonably estimable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.10 Td (Although we do not expect that such legal claims and litigation will ultimately have a material adverse ef) Tj ET Q q 0 0 0 rg BT 470.02 289.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (consolidated financial position, results of operations or cash flows, an adverse result in one or more matters could negatively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 265.10 Td (fect our results in the period in which they occur) Tj ET Q q 0 0 0 rg BT 250.64 265.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 245.10 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 321.20 245.10 Td (fs and duties on the import and export of certain products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (we sell. From time to time our duty calculations and payments are audited by government agencies. During the second quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (of fiscal 2016, we concluded an audit in South Korea for customs duties and value added tax for the period March 2009 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.10 Td (March 2014. ) Tj ET Q q 0 0 0 rg BT 102.92 209.10 Td (W) Tj ET Q q 0 0 0 rg BT 111.56 209.10 Td (e paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.21 209.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.10 209.10 Td ( related to this matter in the second quarter of fiscal 2016 and have no remaining accrual at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (October 1, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 177.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 177.10 Td (November7, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.43 177.10 Td (, we entered into a Credit ) Tj ET Q q 0 0 0 rg BT 264.45 177.10 Td (Agreement with Barclays, BAML) Tj ET Q q 0 0 0 rg BT 400.16 177.10 Td ( and MUFG. See Note 9 "Borrowings" ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.10 Td (and Note 16 "Subsequent Events" for further discussion of the issuance of the financing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 145.10 Td (In relation to the acquisition of Rofin, we paid Barclays, our financial advisor) Tj ET Q q 0 0 0 rg BT 382.07 145.10 Td (, a fee of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.80 145.10 Td ($9.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.69 145.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.69 145.10 Td ($1.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 133.10 Td ( of which was paid upon delivery of the fairness opinion in the second quarter of fiscal 2016, and was recorded in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.10 Td (selling, general and administrative line of the consolidated statements of operations, and the remaining portion of which was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.10 Td (paid upon consummation of the acquisition in the first quarter of fiscal 2017. ) Tj ET Q q 0 0 0 rg BT 359.25 109.10 Td (W) Tj ET Q q 0 0 0 rg BT 367.89 109.10 Td (e also paid Barclays, BAML) Tj ET Q q 0 0 0 rg BT 481.66 109.10 Td ( and MUFG ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.10 Td (together approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.02 97.10 Td ($17.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.91 97.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.35 97.10 Td ($5.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.24 97.10 Td ( for underwriting and upfront fees, respectively) Tj ET Q q 0 0 0 rg BT 455.70 97.10 Td (, upon the close of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.10 Td (financing on November 7, 2016. ) Tj ET Q endstream endobj 197 0 obj <>] /Rotate 0 /Contents 198 0 R>> endobj 198 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (96) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 695.25 Td (1. ST) Tj ET Q q 0 0 0 rg BT 76.00 695.25 Td (OCK REPURCHASES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 675.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 675.25 Td (July25, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.89 675.25 Td (, our Board of Directors authorized a buyback program whereby we were authorized to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.25 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 663.25 Td ( of our common stock from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.03 663.25 Td (July31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.20 663.25 Td (. During the first and second quarters of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.25 Td (2015, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.00 651.25 Td (434,1) Tj ET Q q 0 0 0 rg BT 207.13 651.25 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.13 651.25 Td ( shares of outstanding common stock under this plan at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.70 651.25 Td ($57.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.20 651.25 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.25 Td (share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.30 639.25 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.19 639.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 619.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 619.25 Td (January21, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.32 619.25 Td (, our Board of Directors authorized an additional stock repurchase program to repurchase up to $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.41 619.25 Td (25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.91 619.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.25 Td (million of our outstanding common stock from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.19 607.25 Td (January31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.79 607.25 Td (. During the fourth quarter of fiscal 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.25 Td (we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.00 595.25 Td (430,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.50 595.25 Td ( shares of outstanding common stock under this plan at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.08 595.25 Td ($58.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.58 595.25 Td ( per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.25 Td (for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.70 583.25 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.59 583.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 563.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.17 563.25 Td (August25, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.56 563.25 Td (, our Board of Directors authorized an additional stock repurchase program to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 563.25 Td ($25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.15 563.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.25 Td (million of our outstanding common stock from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.64 551.25 Td (August31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.03 551.25 Td (. During the fourth quarter of fiscal 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.00 539.25 Td (437,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.50 539.25 Td ( shares of outstanding common stock under this plan at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.08 539.25 Td ($57.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.58 539.25 Td ( per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.70 527.25 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.59 527.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 487.25 Td (12. EMPLOYEE ST) Tj ET Q q 0 0 0 rg BT 136.28 487.25 Td (OCK ) Tj ET Q q 0 0 0 rg BT 161.00 487.25 Td (A) Tj ET Q q 0 0 0 rg BT 167.12 487.25 Td (W) Tj ET Q q 0 0 0 rg BT 176.01 487.25 Td (ARD ) Tj ET Q q 0 0 0 rg BT 199.62 487.25 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 267.51 487.25 Td ( PLANS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (Deferr) Tj ET Q q 0 0 0 rg BT 77.63 467.25 Td (ed Compensation Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 447.25 Td (Under our deferred compensation plans \("plans"\), eligible employees are permitted to make compensation deferrals up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.25 Td (established limits set under the plans and accrue income on these deferrals based on reference to changes in available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.25 Td (investment options. ) Tj ET Q q 0 0 0 rg BT 130.15 423.25 Td (While not required by the plan, the Company chooses to invest in insurance contracts and mutual funds in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.25 Td (order to approximate the changes in the liability to the employees. ) Tj ET Q q 0 0 0 rg BT 316.46 411.25 Td (These investments and the liability to the employees were as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.25 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 367.75 388.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 367.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 367.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 367.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 340.75 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 340.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 340.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 340.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 312.75 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 312.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 312.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 312.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 284.75 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 284.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 284.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 284.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 256.75 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 256.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 256.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 256.75 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 367.75 m 497.5 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 367.75 m 501.5 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 367.75 m 561.5 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 367.75 m 497.5 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 354.75 m 497.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 367.75 m 561.5 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 354.75 m 561.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 354.75 m 497.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 354.75 m 561.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 326.75 m 497.5 326.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 326.75 m 561.5 326.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 326.75 m 497.5 326.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 313.75 m 497.5 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 311.75 m 497.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 326.75 m 561.5 326.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 313.75 m 561.5 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 311.75 m 561.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 256.75 m 497.5 256.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 243.75 m 497.5 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 241.75 m 497.5 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 256.75 m 561.5 256.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 243.75 m 561.5 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 241.75 m 561.5 241.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 371.48 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.70 371.98 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 358.48 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 358.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 358.98 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 345.32 Td (Cash surrender value of life insurance contracts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 345.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 345.43 Td (13,636) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 345.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 345.32 Td (12,780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 331.32 Td (Fair value of mutual funds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.50 331.43 Td (14,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 331.32 Td (13,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 317.32 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 317.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 317.43 Td (28,035) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 317.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 317.32 Td (26,671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 289.32 Td (Total assets, included in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 289.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 289.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 275.32 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 275.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 275.43 Td (1,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 275.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 275.32 Td (1,540) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 261.32 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.50 261.43 Td (26,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 261.32 Td (25,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 247.32 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 247.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 247.43 Td (28,035) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 247.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 247.32 Td (26,671) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 206.75 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 206.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 206.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 206.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 177.75 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 177.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 177.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 177.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 147.75 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 147.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 147.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 147.75 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 206.75 m 497.5 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 206.75 m 501.5 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 206.75 m 561.5 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 206.75 m 497.5 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 192.75 m 497.5 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 206.75 m 561.5 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 192.75 m 561.5 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 147.75 m 497.5 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 147.75 m 561.5 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 147.75 m 497.5 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 133.75 m 497.5 133.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 131.75 m 497.5 131.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 147.75 m 561.5 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 133.75 m 561.5 133.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 131.75 m 561.5 131.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 211.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.00 210.98 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 197.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 196.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 196.98 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 182.42 Td (Total deferred compensation liability, included in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 182.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 182.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 167.42 Td (Other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 167.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 167.43 Td (1,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 167.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 167.42 Td (1,540) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 152.42 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 152.43 Td (28,313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 152.42 Td (26,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 137.42 Td (Total deferred compensation liability) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 137.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 137.43 Td (29,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 137.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 137.42 Td (28,231) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 113.25 Td (Life insurance premiums loads, policy fees and cost of insurance that are paid from the asset investments and gains and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.25 Td (losses from the asset investments for these plans are recorded as components of other income or expense; such amounts were a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.25 Td (net gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.76 89.25 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.66 89.25 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.30 89.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.30 89.25 Td (, a net loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.84 89.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.73 89.25 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.38 89.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.38 89.25 Td ( and a net gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.02 89.25 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.91 89.25 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.25 Td (year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.21 77.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.21 77.25 Td (. Changes in the obligation to plan participants are recorded as a component of operating expenses and cost of sales; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.25 Td (such amounts were a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.48 65.25 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.37 65.25 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.01 65.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.01 65.25 Td (, an income of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.71 65.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.60 65.25 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.24 65.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.24 65.25 Td ( and a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.51 65.25 Td ($4.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 53.25 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.03 53.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.03 53.25 Td (. Liabilities associated with participant balances under our deferred compensation plans are af) Tj ET Q q 0 0 0 rg BT 529.98 53.25 Td (fected ) Tj ET Q endstream endobj 199 0 obj <>] /Rotate 0 /Contents 200 0 R>> endobj 200 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (12. EMPLOYEE ST) Tj ET Q q 0 0 0 rg BT 136.78 712.60 Td (OCK ) Tj ET Q q 0 0 0 rg BT 161.50 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 167.62 712.60 Td (W) Tj ET Q q 0 0 0 rg BT 176.51 712.60 Td (ARD ) Tj ET Q q 0 0 0 rg BT 200.12 712.60 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 268.01 712.60 Td ( PLANS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (by individual contributions and distributions made, as well as gains and losses on the participant's investment allocation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (election.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 663.10 Td (Coher) Tj ET Q q 0 0 0 rg BT 75.98 663.10 Td (ent Employee Retir) Tj ET Q q 0 0 0 rg BT 158.55 663.10 Td (ement and Investment Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 643.10 Td (Under the Coherent Employee Retirement and Investment Plan, we match employee contributions to the plan up to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.10 Td (maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.38 631.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.71 631.10 Td ( of the employee's individual earnings subject to IRS limitations. Employees become eligible for participation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.10 Td (on their first day of employment and for Company matching contributions after completing one year of service. Ef) Tj ET Q q 0 0 0 rg BT 507.52 619.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.10 Td (November 1, 2016, employees became eligible for participation and Company matching contributions on their first day of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.10 Td (employment. ) Tj ET Q q 0 0 0 rg BT 104.31 595.10 Td (The Company's contributions \(net of forfeitures\) during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.83 595.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.83 595.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.83 595.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.83 595.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.76 595.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.76 595.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.19 595.10 Td ($4.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.08 595.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.08 595.10 Td ($3.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 583.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 583.10 Td ($3.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 583.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 199.38 583.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (Employee Stock Pur) Tj ET Q q 0 0 0 rg BT 136.54 563.10 Td (chase Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 543.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 543.10 Td (e have an Employee Stock Purchase Plan \("ESPP"\) whereby eligible employees may authorize payroll deductions of up ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.10 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.78 531.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.11 531.10 Td ( of their regular base salary to purchase shares at the lower of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.06 531.10 Td (85%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.39 531.10 Td ( of the fair market value of the common stock on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.10 Td (date of commencement of the of) Tj ET Q q 0 0 0 rg BT 178.99 519.10 Td (fering or on the last day of the six-month of) Tj ET Q q 0 0 0 rg BT 353.49 519.10 Td (fering period. During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.40 519.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.40 519.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.40 519.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.40 519.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.84 519.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.84 519.10 Td (, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.10 Td (total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.60 507.10 Td (141,340) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 507.10 Td ( shares, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.59 507.10 Td (132,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.09 507.10 Td ( shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.02 507.10 Td (134,321) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.52 507.10 Td ( shares, respectively) Tj ET Q q 0 0 0 rg BT 337.67 507.10 Td (, were purchased by and distributed to employees at an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.40 495.10 Td ($46.81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.90 495.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.90 495.10 Td ($51.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.40 495.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.84 495.10 Td ($48.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.34 495.10 Td ( per share, respectively) Tj ET Q q 0 0 0 rg BT 314.87 495.10 Td (. ) Tj ET Q q 0 0 0 rg BT 319.31 495.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.97 495.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.97 495.10 Td (year) Tj ET Q q 0 0 0 rg BT 395.48 495.10 Td (-end, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.34 495.10 Td (520,560) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.84 495.10 Td ( shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.10 Td (common stock reserved for future issuance under the plan.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 463.10 Td (Stock ) Tj ET Q q 0 0 0 rg BT 75.34 463.10 Td (A) Tj ET Q q 0 0 0 rg BT 81.82 463.10 Td (ward Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 443.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 443.10 Td (e maintain a stock plan for which employees, service providers and non-employee directors are eligible participants. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (This plan, the 201) Tj ET Q q 0 0 0 rg BT 121.34 431.10 Td (1 Equity Incentive Plan \(the "201) Tj ET Q q 0 0 0 rg BT 254.74 431.10 Td (1 Plan"\), provides for grants of options, time-based restricted stock units and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (performance restricted stock units. In prior years, we had a stock plan for which employees and service providers were eligible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (participants and a non-employee Directors' Stock Option Plan for which only non-employee directors were eligible participants. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (Those prior plans have expired. Under the 201) Tj ET Q q 0 0 0 rg BT 235.18 395.10 Td (1 Plan, Coherent may grant options and awards \(time-based restricted stock units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (and performance restricted stock units\) to purchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.14 383.10 Td (6,747,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.14 383.10 Td ( shares of common stock, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.34 383.10 Td (5,230,398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.34 383.10 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (remained available for grant at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.71 371.10 Td (fiscal 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.87 371.10 Td ( year) Tj ET Q q 0 0 0 rg BT 238.38 371.10 Td (-end. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 351.10 Td (Historically option grants to employees generally expired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.94 351.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.60 351.10 Td ( years from the original grant date. Since adoption of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (201) Tj ET Q q 0 0 0 rg BT 64.13 339.10 Td (1 Plan, no stock options have been granted to employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 319.10 Td (Director options were previously automatically granted to our non-employee directors. New directors now initially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.10 Td (receive an award of restricted stock units of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.65 307.10 Td (3,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.15 307.10 Td ( shares which vest over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.89 307.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.89 307.10 Td ( year period. ) Tj ET Q q 0 0 0 rg BT 419.47 307.10 Td (The annual grant for non-employee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 295.10 Td (directors is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.16 295.10 Td (3,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.66 295.10 Td ( shares of restricted stock units that vest on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.34 295.10 Td (February 15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.94 295.10 Td ( of the calendar year following the grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 275.10 Td (Restricted stock awards and restricted stock units are typically subject to vesting restrictionseither time-based or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (market-based conditions for vesting. Until restricted stock vests, shares \(including those issuable upon vesting of the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (restricted stock unit\) are subject to forfeiture if employment or service to the Company terminates prior to the release of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (restrictions and cannot be transferred.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 218.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 218.10 Td (The service based restricted stock awards generally vest within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.13 218.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.11 218.10 Td ( years from the date of grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 197.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 197.10 Td (The service based restricted stock unit awards are generally subject to annual vesting over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.14 197.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.13 197.10 Td ( years from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 185.10 Td (date of grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 164.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 164.10 Td (The performance restricted stock unit award grants are generally either subject to annual vesting over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.39 164.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.38 164.10 Td ( years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 152.10 Td (from the date of grant or subject to a single vest measurement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.87 152.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.85 152.10 Td ( years from the date of grant, depending upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 140.10 Td (achievement of performance measurements based on the performance of the Company's total shareholder returns ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 128.10 Td (\(as defined in the plan\) compared with the performance of the Russell 2000 Index.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 108.10 Td (Fair) Tj ET Q q 0 0 0 rg BT 67.64 108.10 Td ( ) Tj ET Q q 0 0 0 rg BT 69.96 108.10 Td (V) Tj ET Q q 0 0 0 rg BT 76.27 108.10 Td (alue of Stock Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 88.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 88.10 Td (e recognize compensation expense for all share-based payment awards based on the fair value of such awards. ) Tj ET Q q 0 0 0 rg BT 525.11 88.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 76.10 Td (expense is recognized on a straight-line basis per tranche over the respective requisite service period of the awards.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 56.10 Td (Determining Fair) Tj ET Q q 0 0 0 rg BT 124.02 56.10 Td ( ) Tj ET Q q 0 0 0 rg BT 126.34 56.10 Td (V) Tj ET Q q 0 0 0 rg BT 132.64 56.10 Td (alue) Tj ET Q endstream endobj 201 0 obj <>] /Rotate 0 /Contents 202 0 R>> endobj 202 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (12. EMPLOYEE ST) Tj ET Q q 0 0 0 rg BT 136.78 712.60 Td (OCK ) Tj ET Q q 0 0 0 rg BT 161.50 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 167.62 712.60 Td (W) Tj ET Q q 0 0 0 rg BT 176.51 712.60 Td (ARD ) Tj ET Q q 0 0 0 rg BT 200.12 712.60 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 268.01 712.60 Td ( PLANS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (98) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (V) Tj ET Q q 0 0 0 rg BT 78.50 695.10 Td (aluation and amortization method) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.89 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 233.53 695.10 Td (e estimate the fair value of employee stock purchase shares using the Black-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (Scholes-Merton option-pricing formula. ) Tj ET Q q 0 0 0 rg BT 212.06 683.10 Td (This fair value is then amortized on a straight-line basis over the purchase period.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 663.10 Td (Expected T) Tj ET Q q 0 0 0 rg BT 117.28 663.10 Td (erm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.84 663.10 Td (The expected term represents the period of our employee stock purchase plan.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 643.10 Td (Expected V) Tj ET Q q 0 0 0 rg BT 117.64 643.10 Td (olatility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.75 643.10 Td (Our process for computing expected volatility considers both historical volatility and market-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.10 Td (implied volatility; however our estimate of expected forfeitures is based on historical employee data and could dif) Tj ET Q q 0 0 0 rg BT 505.29 631.10 Td (fer from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.10 Td (actual forfeitures.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 599.10 Td (Risk-Fr) Tj ET Q q 0 0 0 rg BT 103.68 599.10 Td (ee Inter) Tj ET Q q 0 0 0 rg BT 134.12 599.10 Td (est Rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.05 599.10 Td (The risk-free interest rate used in the Black-Scholes-Merton valuation method is based on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (implied yield currently available on U.S. ) Tj ET Q q 0 0 0 rg BT 214.83 587.10 Td (T) Tj ET Q q 0 0 0 rg BT 220.59 587.10 Td (reasury zero-coupon issues with an equivalent remaining term.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 567.10 Td (The fair values of shares purchased under the employee stock purchase plan for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.36 567.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.36 567.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.36 567.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.36 567.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.80 567.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.80 567.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.10 Td (estimated using the following weighted-average assumptions:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 490.60 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.00 490.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 490.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 490.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 490.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 490.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 490.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 462.60 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.00 462.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 462.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 462.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 462.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 462.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 462.60 87.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 516.6 m 380 516.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 516.6 m 384 516.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 516.6 m 471 516.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 516.6 m 475 516.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 516.6 m 562 516.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 503.6 m 380 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 503.6 m 384 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 503.6 m 471 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 503.6 m 475 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 503.6 m 562 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 503.6 m 380 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 490.6 m 380 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 503.6 m 471 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 490.6 m 471 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 503.6 m 562 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 490.6 m 562 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 490.6 m 380 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 490.6 m 471 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 490.6 m 562 490.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 521.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.55 528.68 Td (Employee Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.95 520.68 Td (Pur) Tj ET Q q 0 0 0 rg BT 413.69 520.68 Td (chase Plans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 507.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.00 507.83 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 494.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 328.00 494.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.00 494.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.00 494.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 481.17 Td (Expected life in years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 364.00 481.28 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.00 481.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 481.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 467.17 Td (Expected volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 352.00 467.28 Td (35.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 467.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 467.17 Td (28.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 467.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 467.17 Td (24.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 467.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 453.17 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 357.00 453.28 Td (0.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 453.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 453.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 453.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 453.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 453.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 439.17 Td (Weighted average fair value per share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.50 439.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.00 439.28 Td (18.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 439.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 439.17 Td (14.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 439.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 439.17 Td (13.57) Tj ET Q BT /F1 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 416.30 Td (T) Tj ET Q q 0 0 0 rg BT 55.34 416.30 Td (ime-Based Restricted Stock Units) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 396.30 Td (T) Tj ET Q q 0 0 0 rg BT 77.76 396.30 Td (ime-based restricted stock units are fair valued at the closing market price on the date of grant. ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 377.50 Td (Performance Restricted Stock Units) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 357.50 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 357.50 Td (e grant performance restricted stock units to of) Tj ET Q q 0 0 0 rg BT 267.33 357.50 Td (ficers and certain employees. ) Tj ET Q q 0 0 0 rg BT 388.76 357.50 Td (The performance stock unit agreements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.50 Td (provide for the award of performance stock units with each unit representing the right to receive one share of our common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.50 Td (to be issued after the applicable award vesting period. ) Tj ET Q q 0 0 0 rg BT 267.02 333.50 Td (The final number of units awarded, if any) Tj ET Q q 0 0 0 rg BT 432.98 333.50 Td (, for these performance grants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.50 Td (will be determined as of the vesting dates, based upon our total shareholder return over the performance period compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.50 Td (Russell 2000 Index and could range from no units to a maximum of twice the initial award units. ) Tj ET Q q 0 0 0 rg BT 438.96 309.50 Td (The weighted average fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.50 Td (value for these performance units was determined using a Monte Carlo simulation model incorporating the following weighted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.50 Td (average assumptions:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 267.00 349.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 267.00 164.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 238.00 349.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 238.00 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 238.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 238.00 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 238.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.00 238.00 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 210.00 349.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 210.00 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 210.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 210.00 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 210.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.00 210.00 52.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 252 m 450 252 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 252 m 454 252 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 252 m 506 252 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 252 m 510 252 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 252 m 562 252 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 238 m 450 238 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 238 m 506 238 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 238 m 562 238 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 238 m 450 238 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 238 m 506 238 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.50 256.23 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.50 242.23 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.50 242.23 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.50 242.23 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 228.57 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.00 228.68 Td (1.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.50 228.68 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 228.57 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 228.57 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 228.57 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 228.57 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 214.57 Td (Volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.00 214.68 Td (27.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.50 214.68 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 214.57 Td (28.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 214.57 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 214.57 Td (36.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 214.57 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 200.57 Td (Weighted average fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.50 200.68 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.00 200.68 Td (74.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.50 200.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 200.57 Td (70.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.50 200.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 200.57 Td (77.10) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 184.50 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 172.50 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 172.50 Td (e recognize the estimated cost of these awards, as determined under the simulation model, over the related service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.50 Td (period, with no adjustment in future periods based upon the actual shareholder return over the performance period.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 140.50 Td (Stock Compensation Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 120.50 Td (The following table shows total stock-based compensation expense and related tax benefits included in the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.50 Td (Statements of Operations for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.40 108.50 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.40 108.50 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.40 108.50 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 108.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.84 108.50 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.84 108.50 Td ( \(in thousands\):) Tj ET Q endstream endobj 203 0 obj <>] /Rotate 0 /Contents 204 0 R>> endobj 204 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (12. EMPLOYEE ST) Tj ET Q q 0 0 0 rg BT 136.78 712.60 Td (OCK ) Tj ET Q q 0 0 0 rg BT 161.50 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 167.62 712.60 Td (W) Tj ET Q q 0 0 0 rg BT 176.51 712.60 Td (ARD ) Tj ET Q q 0 0 0 rg BT 200.12 712.60 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 268.01 712.60 Td ( PLANS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (99) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 701.50 324.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 701.50 188.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 663.50 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 663.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 663.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 663.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 663.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 663.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 635.50 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 635.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 635.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 635.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 635.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 635.50 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 689.5 m 433.5 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 689.5 m 437.5 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 689.5 m 497.5 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 689.5 m 501.5 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 689.5 m 561.5 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 677.5 m 433.5 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 677.5 m 497.5 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 677.5 m 561.5 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 621.5 m 433.5 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 621.5 m 497.5 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 621.5 m 561.5 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 621.5 m 433.5 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 608.5 m 433.5 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 606.5 m 433.5 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 621.5 m 497.5 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 608.5 m 497.5 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 606.5 m 497.5 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 621.5 m 561.5 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 608.5 m 561.5 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 606.5 m 561.5 606.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.00 693.58 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.00 681.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 681.58 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 681.58 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 668.07 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.00 668.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 668.18 Td (2,558) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 668.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 668.07 Td (2,530) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 668.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 668.07 Td (2,393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 654.07 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 654.18 Td (2,268) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 654.07 Td (1,946) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 654.07 Td (2,033) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 640.07 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 640.18 Td (15,331) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 640.07 Td (13,756) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 640.07 Td (14,471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 626.07 Td (Income tax benefit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 626.23 Td (\(4,896) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 626.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 626.12 Td (\(4,247) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 626.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 626.12 Td (\(5,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 626.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.00 612.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 612.18 Td (15,261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 612.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 612.07 Td (13,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 612.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 612.07 Td (13,654) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 588.00 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 588.00 Td (otal stock-based compensation cost capitalized as part of inventory during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.86 588.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.86 588.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.42 588.00 Td ($2.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.31 588.00 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.59 588.00 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.48 588.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 576.00 Td (was amortized into income during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.79 576.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.79 576.00 Td (, which includes amounts capitalized in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.18 576.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.18 576.00 Td ( and amounts carried over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.00 Td (from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.59 564.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.59 564.00 Td (. ) Tj ET Q q 0 0 0 rg BT 120.41 564.00 Td (T) Tj ET Q q 0 0 0 rg BT 125.82 564.00 Td (otal stock-based compensation cost capitalized as part of inventory during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.78 564.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.78 564.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.33 564.00 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.22 564.00 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.50 564.00 Td ($2.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 552.00 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 552.00 Td ( was amortized into income during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.18 552.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.18 552.00 Td (, which includes amounts capitalized in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.57 552.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.57 552.00 Td ( and amounts carried ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 540.00 Td (over from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.86 540.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.86 540.00 Td (. Management has made an estimate of expected forfeitures and is recognizing compensation costs only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 528.00 Td (for those equity awards expected to vest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 508.00 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.16 508.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.16 508.00 Td (year) Tj ET Q q 0 0 0 rg BT 149.66 508.00 Td (-end, the total compensation cost related to unvested stock-based awards granted to employees under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.00 Td (the Company's stock plans but not yet recognized was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.46 496.00 Td ($21.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.35 496.00 Td (, net of estimated forfeitures of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.69 496.00 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.59 496.00 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.00 Td (This cost will be amortized on a straight-line basis over a weighted-average period of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.53 484.00 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.03 484.00 Td (years and will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.00 Td (adjusted for subsequent changes in estimated forfeitures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 452.00 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.16 452.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.16 452.00 Td (year) Tj ET Q q 0 0 0 rg BT 149.66 452.00 Td (-end, the total compensation cost related to options to purchase common shares under the ESPP) Tj ET Q q 0 0 0 rg BT 531.71 452.00 Td ( but not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.00 Td (yet recognized was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.89 440.00 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.78 440.00 Td (. ) Tj ET Q q 0 0 0 rg BT 242.60 440.00 Td (This cost will be amortized on a straight-line basis over a weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.00 Td (period of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.64 428.00 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.07 428.00 Td ( month.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 408.00 Td (The stock option exercise tax benefits reported in the statement of cash flows results from the excess tax benefits arising ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.00 Td (from tax deductions in excess of the stock-based compensation cost recognized, determined on a grant-by-grant basis. During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.00 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 384.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 384.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.66 384.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.66 384.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.09 384.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.09 384.00 Td ( we have not generated any excess tax benefits as cash flows from financing activities. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 364.00 Td (Stock ) Tj ET Q q 0 0 0 rg BT 75.34 364.00 Td (A) Tj ET Q q 0 0 0 rg BT 81.82 364.00 Td (wards ) Tj ET Q q 0 0 0 rg BT 109.88 364.00 Td (Activity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 344.00 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.66 344.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.66 344.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.66 344.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.66 344.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.09 344.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.09 344.00 Td ( year) Tj ET Q q 0 0 0 rg BT 212.60 344.00 Td (-end, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.47 344.00 Td (33,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.97 344.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.97 344.00 Td (86,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.47 344.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.91 344.00 Td (107,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.41 344.00 Td ( shares subject to stock options outstanding. ) Tj ET Q endstream endobj 205 0 obj <>] /Rotate 0 /Contents 206 0 R>> endobj 206 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (12. EMPLOYEE ST) Tj ET Q q 0 0 0 rg BT 136.78 712.60 Td (OCK ) Tj ET Q q 0 0 0 rg BT 161.50 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 167.62 712.60 Td (W) Tj ET Q q 0 0 0 rg BT 176.51 712.60 Td (ARD ) Tj ET Q q 0 0 0 rg BT 200.12 712.60 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 268.01 712.60 Td ( PLANS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 695.10 Td (The following table summarizes our time-based and performance restricted stock unit activity for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.97 695.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.97 695.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.97 695.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.97 695.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 683.10 Td ( \(in thousands, except per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 664.60 245.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 664.60 91.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 664.60 4.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 664.60 93.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 585.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 585.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 585.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 585.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 585.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 585.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 585.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 585.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 555.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 555.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 555.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 555.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 555.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 555.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 555.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 555.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 525.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 525.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 525.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 525.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 525.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 525.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 525.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 525.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 495.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 495.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 495.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 495.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 495.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 495.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 495.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 495.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 465.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 465.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 465.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 465.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 465.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 465.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 465.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 465.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 435.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 435.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 435.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 435.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 435.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 435.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 435.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 435.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 405.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 405.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 405.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 405.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 405.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 405.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 405.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 405.60 45.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 636.6 m 377 636.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 636.6 m 381 636.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 636.6 m 425 636.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 636.6 m 473 636.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 636.6 m 477 636.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 636.6 m 522 636.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 585.6 m 377 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 585.6 m 425 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 585.6 m 473 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 585.6 m 522 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 585.6 m 377 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 585.6 m 425 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 525.6 m 377 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 525.6 m 473 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 525.6 m 377 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 465.6 m 377 465.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 465.6 m 473 465.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 465.6 m 377 465.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 405.6 m 377 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 405.6 m 377 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 391.6 m 377 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 389.6 m 377 389.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 405.6 m 473 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 391.6 m 473 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 389.6 m 473 389.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 340.40 648.83 Td (Time Based Restricted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.30 640.83 Td (Stock Units) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.20 648.83 Td (Performance Restricted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.30 640.83 Td (Stock Units) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.50 597.83 Td (Number) Tj ET Q q 0 0 0 rg BT 364.80 597.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.50 589.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 359.80 589.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.25 621.83 Td (W) Tj ET Q q 0 0 0 rg BT 393.81 621.83 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.55 613.83 Td (A) Tj ET Q q 0 0 0 rg BT 393.73 613.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.05 605.83 Td (Grant ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 394.50 597.83 Td (Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.65 589.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 399.17 589.83 Td ( ) Tj ET Q q 0 0 0 rg BT 401.02 589.83 Td (V) Tj ET Q q 0 0 0 rg BT 406.06 589.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.00 597.83 Td (Number) Tj ET Q q 0 0 0 rg BT 460.30 597.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.00 589.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 455.30 589.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.75 613.83 Td (Weighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.05 605.83 Td (Average) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.55 597.83 Td (Grant Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.15 589.83 Td (Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 575.27 Td (Nonvested stock at September 28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 575.27 Td (453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 575.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 575.27 Td (48.22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 575.27 Td (213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 575.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 575.27 Td (54.63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 560.27 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 560.27 Td (226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 560.27 Td (65.80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 560.27 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 560.27 Td (77.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 545.27 Td (V) Tj ET Q q 0 0 0 rg BT 97.61 545.27 Td (ested ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 120.66 549.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.80 545.32 Td (\(275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 545.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 545.27 Td (47.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 545.32 Td (\(33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 545.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 545.27 Td (43.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 530.27 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.80 530.32 Td (\(14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 530.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 530.27 Td (56.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 530.32 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 530.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 530.27 Td (46.99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 515.27 Td (Nonvested stock at September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 515.27 Td (390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 515.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 515.27 Td (58.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 515.27 Td (229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 515.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 515.27 Td (61.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 500.27 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 500.27 Td (237) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 500.27 Td (64.84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 500.27 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 500.27 Td (70.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 485.27 Td (V) Tj ET Q q 0 0 0 rg BT 97.61 485.27 Td (ested) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 118.16 489.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.80 485.32 Td (\(219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 485.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 485.27 Td (53.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 485.32 Td (\(38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 485.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 485.27 Td (53.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 470.27 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.80 470.32 Td (\(14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 470.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 470.27 Td (59.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 470.32 Td (\(43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 470.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 470.27 Td (53.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 455.27 Td (Nonvested stock at October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 455.27 Td (394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 455.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 455.27 Td (65.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 455.27 Td (199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 455.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 455.27 Td (67.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 440.27 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 440.27 Td (270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 440.27 Td (64.42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 440.27 Td (65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 440.27 Td (74.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 425.27 Td (V) Tj ET Q q 0 0 0 rg BT 97.61 425.27 Td (ested) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 118.16 429.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.80 425.32 Td (\(192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 425.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 425.27 Td (61.11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 425.32 Td (\(57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 425.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 425.27 Td (48.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 410.27 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.80 410.32 Td (\(13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 410.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 410.27 Td (63.89) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 410.32 Td (\(38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 410.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 410.27 Td (48.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 395.27 Td (Nonvested stock at October 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 395.27 Td (459) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 395.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 395.27 Td (66.47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 395.27 Td (169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 395.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 395.27 Td (74.10) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.10 Td (__________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 358.10 Td (Service-based restricted stock vested during each fiscal year) Tj ET Q q 0 0 0 rg BT 325.68 358.10 Td (. Performance awards and units included at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.62 358.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.95 358.10 Td ( of tar) Tj ET Q q 0 0 0 rg BT 547.64 358.10 Td (get ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 346.10 Td (goal; under the terms of the awards, the recipient may earn between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.00 346.10 Td (0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.33 346.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.77 346.10 Td (200%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.10 346.10 Td ( of the award.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 326.10 Td (Restricted Stock Units are converted into the right to receive common stock upon vesting; prior to issuance, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (permits the employee holders to satisfy their tax withholding requirements by net settlement, whereby the Company withholds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (a portion of the shares to cover the applicable taxes based on the fair market value of the Company's stock at the vesting date. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (The number of shares withheld to cover tax payments was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.99 290.10 Td (89,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.49 290.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.27 290.10 Td (fiscal 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.42 290.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.42 290.10 Td (91,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.92 290.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.70 290.10 Td (fiscal 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.86 290.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.29 290.10 Td (1) Tj ET Q q 0 0 0 rg BT 482.92 290.10 Td (18,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.42 290.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.20 290.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 278.10 Td (; tax payments made were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.40 278.10 Td ($5.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.30 278.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.30 278.10 Td ($5.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.19 278.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.63 278.10 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.52 278.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 400.18 278.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 258.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.16 258.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.16 258.10 Td (year) Tj ET Q q 0 0 0 rg BT 149.66 258.10 Td (-end, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.43 258.10 Td (5,230,398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.43 258.10 Td ( options or restricted stock units were available for future grant under all plans. ) Tj ET Q q 0 0 0 rg BT 530.39 258.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 246.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 246.10 Td (year) Tj ET Q q 0 0 0 rg BT 113.16 246.10 Td (-end, all outstanding stock options and restricted stock units have been issued under plans approved by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (shareholders.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (13. OTHER INCOME \(EXPENSE\), NET) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 174.10 Td (Other income \(expense\) includes other) Tj ET Q q 0 0 0 rg BT 228.24 174.10 Td (-net which is comprised of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 127.60 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 127.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 127.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 127.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 127.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 127.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 97.60 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 97.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 97.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 97.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 97.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 97.60 61.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 141.60000000000002 m 432.5 141.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 141.60000000000002 m 436.5 141.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 141.60000000000002 m 496.5 141.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 141.60000000000002 m 500.5 141.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 141.60000000000002 m 561.5 141.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 141.60000000000002 m 432.5 141.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 127.60000000000002 m 432.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 141.60000000000002 m 496.5 141.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 127.60000000000002 m 496.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 141.60000000000002 m 561.5 141.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 127.60000000000002 m 561.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 127.60000000000002 m 432.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 127.60000000000002 m 496.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 127.60000000000002 m 561.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 82.60000000000002 m 432.5 82.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 82.60000000000002 m 496.5 82.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 82.60000000000002 m 561.5 82.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 82.60000000000002 m 432.5 82.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 68.60000000000002 m 432.5 68.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 66.60000000000002 m 432.5 66.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 82.60000000000002 m 496.5 82.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 68.60000000000002 m 496.5 68.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 66.60000000000002 m 496.5 66.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 82.60000000000002 m 561.5 82.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 68.60000000000002 m 561.5 68.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 66.60000000000002 m 561.5 66.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 146.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.50 145.83 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 132.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 394.00 131.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.00 131.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.50 131.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 117.27 Td (Foreign exchange loss) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.00 117.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.80 117.33 Td (\(6,310) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 117.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 117.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.80 117.32 Td (\(1,396) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 117.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 117.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 117.32 Td (\(2,246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 117.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 102.27 Td (Gain \(loss\) on deferred compensation investments, net \(Note12\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.15 102.28 Td (1,738) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.30 102.32 Td (\(351) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 102.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 102.27 Td (4,236) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 87.27 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.65 87.28 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 87.27 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 87.27 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 72.27 Td (Other - net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.00 72.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.80 72.33 Td (\(4,515) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 72.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 72.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.80 72.32 Td (\(1,726) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 72.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 72.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 72.27 Td (2,028) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 207 0 obj <>] /Rotate 0 /Contents 208 0 R>> endobj 208 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (14. INCOME ) Tj ET Q q 0 0 0 rg BT 109.54 712.60 Td (T) Tj ET Q q 0 0 0 rg BT 115.47 712.60 Td (AXES \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (101) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (14. INCOME ) Tj ET Q q 0 0 0 rg BT 109.04 695.25 Td (T) Tj ET Q q 0 0 0 rg BT 114.97 695.25 Td (AXES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 675.25 Td (The provision for \(benefit from\) income taxes on income \(loss\) before income taxes consists of the following \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.25 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 624.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 624.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 624.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 624.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 624.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 624.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 594.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 594.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 594.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 594.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 594.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 594.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 564.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 564.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 564.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 564.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 564.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 564.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 534.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 534.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 534.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 534.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 534.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 534.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 504.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 504.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 504.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 504.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 504.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 504.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 474.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 474.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 474.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 474.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 474.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 474.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 638.75 m 424 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 638.75 m 428 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 638.75 m 493 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 638.75 m 497 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 638.75 m 562 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 638.75 m 424 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 624.75 m 424 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 638.75 m 493 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 624.75 m 493 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 638.75 m 562 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 624.75 m 562 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 564.75 m 424 564.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 564.75 m 493 564.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 564.75 m 562 564.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 564.75 m 424 564.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 564.75 m 493 564.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 564.75 m 562 564.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 489.75 m 424 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 474.75 m 424 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 489.75 m 493 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 474.75 m 493 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 489.75 m 562 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 474.75 m 562 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 460.75 m 424 460.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 458.75 m 424 458.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 460.75 m 493 460.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 458.75 m 493 458.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 460.75 m 562 460.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 458.75 m 562 458.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 204.00 643.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.00 642.98 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 629.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 628.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 628.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 628.98 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 614.42 Td (Currently payable:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 614.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 614.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 614.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 599.42 Td (Federal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 599.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 599.48 Td (\(3,069) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 599.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 599.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 599.47 Td (\(932) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 599.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 599.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 599.42 Td (2,492) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 584.42 Td (State) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 584.43 Td (89) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 584.42 Td (108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 584.42 Td (92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 569.42 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 569.43 Td (48,039) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 569.42 Td (32,189) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 569.42 Td (26,885) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 554.43 Td (45,059) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 554.42 Td (31,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 554.42 Td (29,469) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 539.42 Td (Deferred:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 539.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 539.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 539.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 524.42 Td (Federal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 524.48 Td (\(8,131) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 524.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 524.47 Td (\(4,327) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 524.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 524.47 Td (\(2,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 524.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 509.42 Td (State) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.80 509.48 Td (\(439) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 509.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 509.47 Td (\(200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 509.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 509.47 Td (\(111) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 509.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 494.42 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 494.48 Td (\(1,095) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 494.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 494.47 Td (\(3,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 494.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 494.47 Td (\(6,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 494.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 479.48 Td (\(9,665) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 479.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 479.47 Td (\(8,206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 479.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 479.47 Td (\(9,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 479.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 464.42 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 464.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 464.43 Td (35,394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 464.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 464.42 Td (23,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 464.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 464.42 Td (20,113) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 440.25 Td (The components of income \(loss\) before income taxes consist of \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 393.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 393.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 393.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 393.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 393.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 393.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 363.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 363.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 363.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 363.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 363.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 363.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 407.75 m 423.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 407.75 m 427.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 407.75 m 492.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 407.75 m 496.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 407.75 m 561.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 407.75 m 423.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 393.75 m 423.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 407.75 m 492.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 393.75 m 492.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 407.75 m 561.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 393.75 m 561.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 393.75 m 423.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 393.75 m 492.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 393.75 m 561.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 363.75 m 423.5 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 349.75 m 423.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 347.75 m 423.5 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 363.75 m 492.5 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 349.75 m 492.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 347.75 m 492.5 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 363.75 m 561.5 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 349.75 m 561.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 347.75 m 561.5 347.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 412.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 411.98 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 398.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 397.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 397.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 397.98 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 383.42 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 383.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.80 383.48 Td (\(44,029) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 383.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 383.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 383.47 Td (\(13,293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 383.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 383.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 383.42 Td (821) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 368.42 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 368.43 Td (166,925) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 368.42 Td (112,861) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 368.42 Td (78,398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 353.42 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 353.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 353.43 Td (122,896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 353.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 353.42 Td (99,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 353.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 353.42 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 329.25 Td (The reconciliation of the income tax expense at the U.S. Federal statutory rate \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.44 329.25 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.27 329.25 Td (\) to actual income tax expense is as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.25 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 270.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 270.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 270.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 270.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 270.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 270.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 240.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 240.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 240.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 240.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 240.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 240.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 210.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 210.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 210.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 210.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 210.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 210.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 180.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 180.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 180.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 180.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 180.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 180.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 150.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 150.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 150.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 150.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 150.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 150.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 120.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 120.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 120.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 120.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 120.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 120.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 90.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 90.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 90.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 90.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 90.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 90.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 284.75 m 423.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 284.75 m 427.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 284.75 m 492.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 284.75 m 496.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 284.75 m 561.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 284.75 m 423.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 270.75 m 423.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 284.75 m 492.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 270.75 m 492.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 284.75 m 561.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 270.75 m 561.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 270.75 m 423.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 270.75 m 492.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 270.75 m 561.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 105.75 m 423.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 105.75 m 492.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 105.75 m 561.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 105.75 m 423.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 105.75 m 492.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 105.75 m 561.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 89.75 m 423.5 89.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 91.75 m 423.5 91.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 76.75 m 423.5 76.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 74.75 m 423.5 74.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 89.75 m 492.5 89.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 91.75 m 492.5 91.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 76.75 m 492.5 76.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 74.75 m 492.5 74.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 89.75 m 561.5 89.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 91.75 m 561.5 91.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 76.75 m 561.5 76.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 74.75 m 561.5 74.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 289.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 288.98 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 275.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 274.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 274.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 274.98 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 260.42 Td (Federal statutory tax expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 260.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 260.43 Td (43,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 260.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 260.42 Td (34,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 260.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 260.42 Td (27,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 245.42 Td (Valuation allowance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.50 245.43 Td (1,441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 245.42 Td (635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.65 245.42 Td (841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 230.42 Td (Foreign taxes at rates less than U.S. rates, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 230.43 Td (\(5,642) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 230.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.80 230.47 Td (\(10,558) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 230.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 230.47 Td (\(6,974) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 230.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 215.42 Td (Stock-based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.50 215.43 Td (2,161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 215.42 Td (2,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 215.42 Td (1,326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 200.42 Td (State income taxes, net of federal income tax benefit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.65 200.43 Td (\(198) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 200.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 200.47 Td (\(38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 200.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 200.42 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 185.42 Td (Research and development credit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 185.43 Td (\(4,408) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 185.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 185.47 Td (\(2,979) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 185.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 185.47 Td (\(1,797) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 185.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 170.42 Td (Deferred compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.65 170.43 Td (\(428) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 170.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 170.47 Td (\(133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 170.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 170.47 Td (\(778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 170.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 155.42 Td (Release of unrecognized tax benefits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 155.43 Td (\(4,961) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 155.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 155.47 Td (\(39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 155.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 155.47 Td (\(51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 155.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 140.42 Td (Release of interest accrued for unrecognized tax benefits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 140.43 Td (\(1,508) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 140.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 140.47 Td (\(38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 140.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 140.47 Td (\(289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 140.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 125.42 Td (Reversal of Competent Authority) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.50 125.43 Td (4,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 125.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 125.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 110.42 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.50 110.43 Td (1,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 110.47 Td (\(690) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 110.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 110.42 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 95.42 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 95.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 95.43 Td (35,394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 95.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 95.42 Td (23,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 95.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 95.42 Td (20,113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 80.42 Td (Effective tax rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 395.50 80.43 Td (28.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 80.43 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 80.42 Td (23.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 80.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 80.42 Td (25.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 80.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 209 0 obj <>] /Rotate 0 /Contents 210 0 R>> endobj 210 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (14. INCOME ) Tj ET Q q 0 0 0 rg BT 109.54 712.60 Td (T) Tj ET Q q 0 0 0 rg BT 115.47 712.60 Td (AXES \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.13 695.10 Td (fective tax rate on income before income taxes for fiscal 2016 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.14 695.10 Td (28.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.97 695.10 Td ( was lower than the statutory rate of 35.0%. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (This was primarily due to dif) Tj ET Q q 0 0 0 rg BT 165.69 683.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (rates including the Singapore tax exemption, the benefit of foreign tax credits and the benefit of federal research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (development tax credits including renewal of the federal research and development tax credits for fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 491.64 659.10 Td (These amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (are partially of) Tj ET Q q 0 0 0 rg BT 108.18 647.10 Td (fset by deemed dividend inclusions under the Subpart F tax rules, stock-based compensation not deductible for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (tax purposes and limitations on the deductibility of compensation under IRC Section 162\(m\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 615.10 Td (In October 2016, Coherent Singapore received an amended Pioneer Status tax exemption from the Singapore authorities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 603.10 Td (fective from fiscal 2012 through fiscal 2021. ) Tj ET Q q 0 0 0 rg BT 237.97 603.10 Td (The tax holiday continues to be conditional upon our meeting certain revenue, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (business spending and employment thresholds. ) Tj ET Q q 0 0 0 rg BT 239.86 591.10 Td (The impact of this tax exemption decreased Singapore income taxes by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.10 Td (approximately $0.7 million in fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 220.40 579.10 Td (There are no tax benefits for fiscal 2015 and fiscal 2014 due to the utilization of net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 567.10 Td (operating loss.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 547.10 Td (The significant components of deferred tax assets and liabilities were \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 500.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 500.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 500.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 470.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 470.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 470.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 470.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 440.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 440.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 440.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 410.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 410.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 410.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 410.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 380.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 380.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 380.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 380.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 350.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 350.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 350.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 350.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 320.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 320.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 320.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 320.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 290.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 290.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 290.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 290.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 260.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 260.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 260.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 260.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 514.6 m 492.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 514.6 m 496.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 514.6 m 561.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 514.6 m 492.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 500.6 m 492.5 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 514.6 m 561.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 500.6 m 561.5 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 365.6 m 492.5 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 365.6 m 561.5 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 335.6 m 492.5 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 335.6 m 561.5 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 335.6 m 492.5 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 335.6 m 561.5 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 260.6 m 492.5 260.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 260.6 m 561.5 260.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 245.60000000000002 m 492.5 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 231.60000000000002 m 492.5 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 229.60000000000002 m 492.5 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 245.60000000000002 m 561.5 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 231.60000000000002 m 561.5 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 229.60000000000002 m 561.5 229.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 519.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 518.83 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 505.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 504.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 504.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 490.27 Td (Deferred tax assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 490.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 490.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 475.27 Td (Reserves and accruals not currently deductible) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 475.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 475.28 Td (34,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 475.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 475.27 Td (31,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 460.27 Td (Operating loss carryforwards and tax credits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 460.28 Td (52,213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 460.27 Td (53,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 445.27 Td (Deferred service revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 445.28 Td (2,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 445.27 Td (2,144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 430.27 Td (Inventory capitalization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 430.28 Td (5,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 430.27 Td (1,827) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 415.27 Td (Stock-based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 415.28 Td (6,428) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 415.27 Td (6,128) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 400.27 Td (Competent authority offset to transfer pricing tax reserves) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 400.28 Td (1,437) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 400.27 Td (4,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 385.27 Td (Depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 385.28 Td (1,043) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 385.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 370.27 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 370.28 Td (5,277) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 370.27 Td (2,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 355.27 Td (Total gross deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 355.28 Td (108,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 355.27 Td (101,298) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 340.27 Td (Valuation allowance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.80 340.33 Td (\(17,642) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 488.65 340.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 340.32 Td (\(15,556) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 340.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 325.27 Td (Total net deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 325.28 Td (90,743) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 325.27 Td (85,742) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 310.27 Td (Deferred tax liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 310.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 310.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 295.27 Td (Gain on issuance of stock by subsidiary) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 295.28 Td (20,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 295.27 Td (20,859) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 280.27 Td (Depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.65 280.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 280.27 Td (5,117) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 265.27 Td (Accumulated translation adjustment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 265.28 Td (4,273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 265.27 Td (2,229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 250.27 Td (Total gross deferred tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 250.28 Td (25,054) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 250.27 Td (28,205) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 235.27 Td (Net deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 235.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 235.28 Td (65,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 235.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 235.27 Td (57,537) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 208.10 Td (In determining our fiscal 2016 and 2015 tax provisions under ) Tj ET Q q 0 0 0 rg BT 320.68 208.10 Td (ASC Subtopic740, we calculated the deferred tax assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 Td (and liabilities for each separate tax entity) Tj ET Q q 0 0 0 rg BT 213.23 196.10 Td (. ) Tj ET Q q 0 0 0 rg BT 218.04 196.10 Td (W) Tj ET Q q 0 0 0 rg BT 226.68 196.10 Td (e then considered a number of factors including the positive and negative evidence ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.10 Td (regarding the realization of our deferred tax assets to determine whether a valuation allowance should be recognized with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.10 Td (respect to our deferred tax assets. ) Tj ET Q q 0 0 0 rg BT 185.10 172.10 Td (W) Tj ET Q q 0 0 0 rg BT 193.73 172.10 Td (e determined that a valuation allowance was appropriate for a portion of the deferred tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.10 Td (assets of our California and certain state research and development tax credits, foreign tax attributes and foreign net operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.10 Td (losses at fiscal 2016 and 2015year) Tj ET Q q 0 0 0 rg BT 188.71 148.10 Td (-ends.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 128.10 Td (During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.49 128.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.49 128.10 Td (, we increased our valuation allowance on deferred tax assets) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 392.83 128.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 395.33 128.10 Td (by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.83 128.10 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.72 128.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.50 128.10 Td ($17.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.39 128.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (primarily due to the increase in California and certain state research and development tax credits which are not expected to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (recognized. ) Tj ET Q q 0 0 0 rg BT 98.18 104.10 Td (The Company had U.S. federal deferred tax assets related to research and development credits, foreign tax credits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (and other tax attributes that can be used to of) Tj ET Q q 0 0 0 rg BT 228.98 92.10 Td (fset federal taxable income in future periods. ) Tj ET Q q 0 0 0 rg BT 410.39 92.10 Td (These credit carryforwards will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.10 Td (expire if they are not used within certain time periods. ) Tj ET Q q 0 0 0 rg BT 268.04 80.10 Td (As of October 1, 2016, management determined that there is suf) Tj ET Q q 0 0 0 rg BT 524.46 80.10 Td (ficient ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.10 Td (positive evidence to conclude that it is more likely than not suf) Tj ET Q q 0 0 0 rg BT 300.65 68.10 Td (ficient taxable income will exist in the future allowing us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 56.10 Td (recognize these deferred tax assets. It is possible that some or all these attributes could ultimately expire unused. If facts and ) Tj ET Q endstream endobj 211 0 obj <>] /Rotate 0 /Contents 212 0 R>> endobj 212 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (14. INCOME ) Tj ET Q q 0 0 0 rg BT 109.54 712.60 Td (T) Tj ET Q q 0 0 0 rg BT 115.47 712.60 Td (AXES \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (circumstances change in the future, management may determine at that time a valuation allowance is necessary) Tj ET Q q 0 0 0 rg BT 493.67 695.10 Td (. ) Tj ET Q q 0 0 0 rg BT 500.62 695.10 Td (A) Tj ET Q q 0 0 0 rg BT 507.29 695.10 Td ( valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (allowance would materially increase our tax expense in the period applied and would adversely af) Tj ET Q q 0 0 0 rg BT 441.39 683.10 Td (fect our results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (and statement of financial condition. Changes in the Company) Tj ET Q q 0 0 0 rg BT 306.94 671.10 Td (s underlying facts or circumstances, such as the impact of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (Rofin-Sinar mer) Tj ET Q q 0 0 0 rg BT 114.58 659.10 Td (ger) Tj ET Q q 0 0 0 rg BT 126.95 659.10 Td (, will be assessed as they occur and the Company will re-evaluate its position accordingly) Tj ET Q q 0 0 0 rg BT 484.82 659.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 639.10 Td (The net deferred tax asset is classified on the consolidated balance sheets as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 61.50 592.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 592.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 592.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 592.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 61.50 562.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 562.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 562.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 562.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 606.6 m 504.5 606.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 606.6 m 508.5 606.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 606.6 m 573.5 606.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 606.6 m 504.5 606.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 592.6 m 504.5 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 606.6 m 573.5 606.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 592.6 m 573.5 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 562.6 m 504.5 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 562.6 m 573.5 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 562.6 m 504.5 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 548.6 m 504.5 548.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 546.6 m 504.5 546.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 562.6 m 573.5 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 548.6 m 573.5 548.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 546.6 m 573.5 546.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 611.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.00 610.83 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 597.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.50 596.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.50 596.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 582.27 Td (Non-current deferred income tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.00 582.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 582.28 Td (67,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.00 582.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 582.27 Td (60,254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 567.27 Td (Non-current deferred income tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.80 567.33 Td (\(1,468) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.65 567.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.80 567.32 Td (\(2,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 569.65 567.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 552.27 Td (Net deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.00 552.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 552.28 Td (65,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.00 552.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 552.27 Td (57,537) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 528.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 528.10 Td (e have various tax attribute carryforwards which include the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 508.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 508.10 Td (Foreign gross net operating loss carryforwards are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.05 508.10 Td ($13.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.94 508.10 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.71 508.10 Td ($12.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.60 508.10 Td ( have no expiration date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 496.10 Td (and of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.21 496.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.10 496.10 Td ( are scheduled to expire beginning in fiscal year 2030. ) Tj ET Q q 0 0 0 rg BT 425.64 496.10 Td (A) Tj ET Q q 0 0 0 rg BT 432.31 496.10 Td ( valuation allowance totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 484.10 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.39 484.10 Td ( has been provided against the foreign gross net operating loss carryforwards in certain jurisdictions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 472.10 Td (since the recovery of the carryforwards are uncertain. California gross net operating loss carryforwards are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.76 472.10 Td ($12.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 460.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.39 460.10 Td ( and are scheduled to expire in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.93 460.10 Td (2032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.93 460.10 Td (. ) Tj ET Q q 0 0 0 rg BT 325.75 460.10 Td (The tax benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.35 460.10 Td ($7.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.24 460.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 448.10 Td (the state gross net operating loss carryforwards will be credited to additional paid-in-capital when recognized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 428.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 428.10 Td (Federal gross capital loss carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.22 428.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.11 428.10 Td ( are scheduled to expire in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.71 428.10 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.71 428.10 Td (. State gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 416.10 Td (capital loss carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.12 416.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.01 416.10 Td ( are scheduled to expire in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.61 416.10 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.61 416.10 Td (. No valuation allowance is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 404.10 Td (recorded against the federal gross capital loss and the state gross capital loss carryforwards since we anticipate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 392.10 Td (that it is more likely than not we will be able to utilize the capital loss in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 372.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 372.10 Td (Federal R&D credit carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.83 372.10 Td ($29.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.72 372.10 Td ( are scheduled to expire in fiscal years 2024 to 2036. ) Tj ET Q q 0 0 0 rg BT 521.81 372.10 Td (The tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 360.10 Td (benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.34 360.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.23 360.10 Td ( of the federal tax credit carryforwards will be credited to additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 348.10 Td (paid-in-capital when recognized. California R&D credit carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.21 348.10 Td ($24.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.10 348.10 Td ( have no expiration date. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 336.10 Td (The tax benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.11 336.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.00 336.10 Td ( of the state tax credit carryforwards will be credited to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 324.10 Td (additional paid-in-capital when recognized. ) Tj ET Q q 0 0 0 rg BT 279.27 324.10 Td (A) Tj ET Q q 0 0 0 rg BT 285.94 324.10 Td ( valuation allowance totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.23 324.10 Td ($16.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.12 324.10 Td (, before federal benefit, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 312.10 Td (has been recorded against California R&D credit carryforwards since the recovery of the carryforwards are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 300.10 Td (uncertain. Other states R&D credit carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.53 300.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.42 300.10 Td ( are scheduled to expire in fiscal years 2017 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 288.10 Td (2030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.50 288.10 Td (. ) Tj ET Q q 0 0 0 rg BT 127.95 288.10 Td (A) Tj ET Q q 0 0 0 rg BT 134.62 288.10 Td ( valuation allowance totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.91 288.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.81 288.10 Td (, before federal benefit, has been recorded against certain state ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 276.10 Td (R&D credit carryforwards since the recovery of the carryforwards is uncertain.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 256.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 256.10 Td (Federal foreign tax credit carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.75 256.10 Td ($14.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.64 256.10 Td ( are scheduled to expire in fiscal years 2018 to 2023. ) Tj ET Q q 0 0 0 rg BT 543.73 256.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 244.10 Td (tax benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.06 244.10 Td ($13.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.95 244.10 Td ( of the federal foreign tax credit carryforwards will be credited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 232.10 Td (to additional paid-in-capital when recognized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 212.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 212.10 Td (e are subject to taxation and file income tax returns in the U.S. federal jurisdiction and in many state and foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (jurisdictions. For U.S. federal income tax purposes, all years prior to fiscal 201) Tj ET Q q 0 0 0 rg BT 365.17 200.10 Td (1 are closed. ) Tj ET Q q 0 0 0 rg BT 417.74 200.10 Td (The Company agreed to extend the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (statutes of limitations for its fiscal 201) Tj ET Q q 0 0 0 rg BT 203.00 188.10 Td (1 and 2012 U.S. federal tax returns to June 17, 2017 due to an ongoing ) Tj ET Q q 0 0 0 rg BT 487.95 188.10 Td (Advanced Pricing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (Agreement \(AP) Tj ET Q q 0 0 0 rg BT 116.06 176.10 Td (A\) between the U.S. and Korea. In March 2016, the Internal Revenue Service \(IRS\) issued an audit notice and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (Information Documentation Requests \(IDRs\) for fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 295.93 164.10 Td (The audit is currently in progress and the statute of limitation was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (extended to December 31, 2017. In our major foreign jurisdictions and our major state jurisdictions, the years prior to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (201) Tj ET Q q 0 0 0 rg BT 64.13 140.10 Td (1 and 2012, respectively) Tj ET Q q 0 0 0 rg BT 161.23 140.10 Td (, are closed to examination. Earlier years in our various jurisdictions may remain open for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (adjustment to the extent that we have tax attribute carryforwards from those years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 108.10 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 108.10 Td (In December 201) Tj ET Q q 0 0 0 rg BT 154.54 108.10 Td (1 and January 2012, three of our German subsidiaries received notices of tax audits for the fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.10 Td (years 2006 through 2010. ) Tj ET Q q 0 0 0 rg BT 154.03 96.10 Td (The audits were completed in the third quarter of fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 401.17 96.10 Td (As a result of the settlement, our gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.10 Td (uncertain tax positions decreased by approximately $4.9 million. ) Tj ET Q q 0 0 0 rg BT 310.92 84.10 Td (The net provision impact of the adjustments was immaterial to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.10 Td (the consolidated statement of operations.) Tj ET Q endstream endobj 213 0 obj <>] /Rotate 0 /Contents 214 0 R>> endobj 214 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (14. INCOME ) Tj ET Q q 0 0 0 rg BT 109.54 712.60 Td (T) Tj ET Q q 0 0 0 rg BT 115.47 712.60 Td (AXES \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 695.10 Td (In July 2015 and March 2016, Coherent Kaiserslautern GmbH \(formerly Lumera Laser GmbH\) received tax audit notices ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (for the fiscal years 2010 to 2014. ) Tj ET Q q 0 0 0 rg BT 183.73 683.10 Td (The audit began in ) Tj ET Q q 0 0 0 rg BT 260.37 683.10 Td (August 2015. ) Tj ET Q q 0 0 0 rg BT 316.58 683.10 Td (W) Tj ET Q q 0 0 0 rg BT 325.22 683.10 Td (e acquired the shares of Lumera Laser GmbH in December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (2012 and, pursuant to the terms of the acquisition agreement, we should not have responsibility for any assessments related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (the pre-acquisition period. In June, 2016, Coherent Holding GmbH and Coherent Deutschland GmbH each received a tax audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (notice for the fiscal years 201) Tj ET Q q 0 0 0 rg BT 167.69 647.10 Td (1 to 2014. ) Tj ET Q q 0 0 0 rg BT 210.29 647.10 Td (The audit began in the fourth quarter of fiscal 2016. Coherent GmbH, Coherent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (LaserSystems GmbH & Co. KG and Coherent Germany GmbH received audit notices for the period that they were in existence ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (during the fiscal years 201) Tj ET Q q 0 0 0 rg BT 155.21 623.10 Td (1 through 2014 and the audit work is scheduled to commence in January 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 603.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 603.10 Td (e regularly engage in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (management believes that it has adequately provided reserves for any adjustments that may result from tax examinations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 571.10 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 571.10 Td ( reconciliation of the change in gross unrecognized tax benefits, excluding interest and penalties, is as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 523.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 523.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 523.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 523.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 523.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 523.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 495.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 495.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 495.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 495.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 495.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 495.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 467.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 467.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 467.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 467.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 467.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 467.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 439.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 439.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 439.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 439.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 439.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 439.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 411.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 411.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 411.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 411.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 411.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 411.60 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 535.6 m 424 535.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 535.6 m 428 535.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 535.6 m 493 535.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 535.6 m 497 535.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 535.6 m 562 535.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 535.6 m 424 535.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 523.6 m 424 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 535.6 m 493 535.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 523.6 m 493 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 535.6 m 562 535.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 523.6 m 562 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 523.6 m 424 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 523.6 m 493 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 523.6 m 562 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 397.6 m 424 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 397.6 m 493 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 397.6 m 562 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 397.6 m 424 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 384.6 m 424 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 382.6 m 424 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 397.6 m 493 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 384.6 m 493 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 382.6 m 493 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 397.6 m 562 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 384.6 m 562 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 382.6 m 562 382.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 204.00 539.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 539.83 Td (Fiscal year-end) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 527.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 527.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 527.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 527.68 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 514.17 Td (Balance as of the beginning of the year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 514.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 514.28 Td (22,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 514.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 514.17 Td (21,893) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 514.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 514.17 Td (21,378) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 500.17 Td (Tax positions related to current year:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 486.17 Td (Additions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 486.28 Td (2,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 486.17 Td (311) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 486.17 Td (346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 472.17 Td (Reductions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 472.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 472.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 472.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 458.17 Td (Tax positions related to prior year:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 444.17 Td (Additions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 444.28 Td (424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 444.17 Td (855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 444.17 Td (235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 430.17 Td (Reductions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 430.33 Td (\(3,239) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 430.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 430.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 430.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 416.17 Td (Settlements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 416.33 Td (\(1,655) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 416.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 416.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 416.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 402.17 Td (Lapses in statutes of limitations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.80 402.33 Td (\(94) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 402.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 402.22 Td (\(521) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 402.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 402.22 Td (\(66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 402.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 388.17 Td (Balance as of end of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 388.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 388.28 Td (20,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 388.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 388.17 Td (22,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 388.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 388.17 Td (21,893) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 364.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 364.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.65 364.10 Td (, the total amount of gross unrecognized tax benefits including gross interest and penalties was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td ($20.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 352.10 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.16 352.10 Td ($15.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.05 352.10 Td (, if recognized, would af) Tj ET Q q 0 0 0 rg BT 297.61 352.10 Td (fect our ef) Tj ET Q q 0 0 0 rg BT 338.51 352.10 Td (fective tax rate. Our total gross unrecognized tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (benefit was classified as a long-term taxes payable in the consolidated balance sheets after reduction by certain deferred tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td (assets. ) Tj ET Q q 0 0 0 rg BT 77.65 328.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.29 328.10 Td (e include interest and penalties related to unrecognized tax benefits within the provision for income taxes. ) Tj ET Q q 0 0 0 rg BT 511.43 328.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.21 316.10 Td (, the total amount of gross interest and penalties accrued was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.69 316.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.58 316.10 Td ( and it is classified as long-term taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.10 Td (payable in the consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 223.05 304.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.49 304.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.20 304.10 Td (, we had accrued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.88 304.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.77 304.10 Td ( for the gross interest and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.10 Td (penalties and it is classified as long-term taxes payable in the consolidated balance sheets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 272.10 Td (Management believes that it has adequately provided for any adjustments that may result from tax examinations. ) Tj ET Q q 0 0 0 rg BT 524.80 272.10 Td (W) Tj ET Q q 0 0 0 rg BT 533.44 272.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (regularly engage in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. It is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (reasonably possible that certain federal, foreign and state tax matters may be concluded in the next 12 months. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 228.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 228.10 Td ( summary of the fiscal tax years that remain subject to examination, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.36 228.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.06 228.10 Td (, for our major tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.10 Td (jurisdictions is:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 183.60 408.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 183.60 104.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 155.60 408.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 155.60 104.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 127.60 408.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 127.60 104.00 -14.00 re f /GS0 gs BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 188.17 Td (United StatesFederal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.70 188.17 Td (2011forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 174.17 Td (United StatesVarious States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 174.17 Td (2012forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 160.17 Td (Netherlands) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.70 160.17 Td (2011forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 146.17 Td (Germany) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.70 146.17 Td (2011forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 132.17 Td (Japan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 132.17 Td (2010forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 118.17 Td (United Kingdom) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 118.17 Td (2015forward) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 215 0 obj <>] /Rotate 0 /Contents 216 0 R>> endobj 216 0 obj <> stream BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.39 w 0 i [] 0 d 1 J 1 j 3 M 50 772.93359375 m 106.76171875 772.93359375 l s q 0 0 1 rg BT 50.00 774.00 Td (T) Tj ET Q q 0 0 1 rg BT 54.33 774.00 Td (able of Contents) Tj ET Q BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 754.00 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 754.00 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 754.00 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 734.00 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 734.00 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 734.00 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 734.00 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 734.00 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 734.00 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 734.00 Td (TEMENTS \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (105) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (15. SEGMENT) Tj ET Q q 0 0 0 rg BT 114.33 695.25 Td ( ) Tj ET Q q 0 0 0 rg BT 116.28 695.25 Td (AND GEOGRAPHIC INFORMA) Tj ET Q q 0 0 0 rg BT 260.53 695.25 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 675.25 Td (At October 1, 2016, we were or) Tj ET Q q 0 0 0 rg BT 198.45 675.25 Td (ganized into two reportable operating segments: Specialty Lasers and Systems \("SLS"\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.25 Td (and Commercial Lasers and Components \("CLC"\). ) Tj ET Q q 0 0 0 rg BT 256.05 663.25 Td (This segmentation reflects the go-to-market strategies for various products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.25 Td (and markets. ) Tj ET Q q 0 0 0 rg BT 102.91 651.25 Td (While both segments work to deliver cost-ef) Tj ET Q q 0 0 0 rg BT 280.46 651.25 Td (fective solutions, SLS develops and manufactures configurable, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.25 Td (advanced-performance products lar) Tj ET Q q 0 0 0 rg BT 190.91 639.25 Td (gely serving the microelectronics, scientific research and government programs and OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.25 Td (components and instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 219.01 627.25 Td (The size and complexity of many of our SLS products require service to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.25 Td (performed at the customer site by factory-trained field service engineers. CLC focuses on higher volume products that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 603.25 Td (fered in set configurations. ) Tj ET Q q 0 0 0 rg BT 167.16 603.25 Td (The product architectures are designed for easy exchange at the point of use such that product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.25 Td (service and repairs are based upon advanced replacement and depot \(i.e., factory\) repair) Tj ET Q q 0 0 0 rg BT 400.16 591.25 Td (. CLC's primary markets include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.25 Td (materials processing, OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 562.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 562.25 Td (e have identified SLS and CLC as operating segments for which discrete financial information is available. Both units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (have dedicated engineering, manufacturing, product business management and product line management functions. ) Tj ET Q q 0 0 0 rg BT 512.96 550.25 Td (A) Tj ET Q q 0 0 0 rg BT 519.63 550.25 Td ( small ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (portion of our outside revenue is attributable to projects and recently developed products for which a segment has not yet been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (determined. ) Tj ET Q q 0 0 0 rg BT 99.30 526.25 Td (The associated direct and indirect costs are presented in the category of Corporate and other) Tj ET Q q 0 0 0 rg BT 466.53 526.25 Td (, along with other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (corporate costs as described below) Tj ET Q q 0 0 0 rg BT 187.69 514.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 497.25 Td (Our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 172.12 497.25 Td (ficer has been identified as the chief operating decision maker \(CODM\) as he assesses the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.25 Td (performance of the segments and decides how to allocate resources to the segments. Income from operations is the measure of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.25 Td (profit and loss that our CODM uses to assess performance and make decisions. ) Tj ET Q q 0 0 0 rg BT 367.77 473.25 Td (As assets are not a measure used to assess the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.25 Td (performance of the company by the CODM, asset information is not tracked or compiled by segment and is not available to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.25 Td (reported in our disclosures. Income from operations represents the net sales less the cost of sales and direct operating expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.25 Td (incurred within the operating segments as well as allocated expenses such as shared sales and manufacturing costs. ) Tj ET Q q 0 0 0 rg BT 511.40 437.25 Td (W) Tj ET Q q 0 0 0 rg BT 520.04 437.25 Td (e do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td (allocate to our operating segments certain operating expenses which we manage separately at the corporate level. ) Tj ET Q q 0 0 0 rg BT 504.41 425.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (unallocated costs include stock-based compensation and corporate functions \(certain research and development, management, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (finance, legal and human resources\) and are included in the results below under Corporate and other in the reconciliation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (operating results. Management does not consider unallocated Corporate and other costs in its measurement of segment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 357.25 Td (The following table provides net sales and income from operations for our operating segments a reconciliation of our total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.25 Td (income from operations to net income \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 306.75 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 306.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 306.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 306.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 306.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 306.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 276.75 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 276.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 276.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 276.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 276.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 276.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 246.75 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 246.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 246.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 246.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 246.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 246.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 216.75 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 216.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 216.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 216.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 216.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 216.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 186.75 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 186.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 186.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 186.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 186.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 186.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 156.75 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 156.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 156.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 156.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 156.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 156.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 126.75 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 126.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 126.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 126.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 126.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 126.75 63.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 320.75 m 406 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 320.75 m 410 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 320.75 m 472 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 320.75 m 476 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 320.75 m 539 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 320.75 m 406 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 306.75 m 406 306.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 320.75 m 472 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 306.75 m 472 306.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 320.75 m 539 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 306.75 m 539 306.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 261.75 m 406 261.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 247.75 m 406 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 245.75 m 406 245.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 261.75 m 472 261.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 247.75 m 472 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 245.75 m 472 245.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 261.75 m 539 261.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 247.75 m 539 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 245.75 m 539 245.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 245.75 m 406 245.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 247.75 m 406 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 245.75 m 472 245.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 247.75 m 472 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 245.75 m 539 245.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 247.75 m 539 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 186.75 m 406 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 186.75 m 472 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 186.75 m 539 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 186.75 m 406 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 186.75 m 472 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 186.75 m 539 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 156.75 m 406 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 156.75 m 472 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 156.75 m 539 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 156.75 m 406 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 156.75 m 472 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 156.75 m 539 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 126.75 m 406 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 126.75 m 472 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 126.75 m 539 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 126.75 m 406 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 112.75 m 406 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 110.75 m 406 110.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 126.75 m 472 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 112.75 m 472 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 110.75 m 472 110.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 126.75 m 539 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 112.75 m 539 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 110.75 m 539 110.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 325.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.00 324.98 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 311.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.50 310.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.50 310.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.00 310.98 Td (2014) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 295.0833984375 m 91.6552734375 295.0833984375 l s q 0 0 0 rg BT 52.50 296.42 Td (Net sales:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.50 296.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 296.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 296.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 281.42 Td (Specialty Laser Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.50 281.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.65 281.43 Td (631,313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 281.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 281.42 Td (559,593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 281.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 281.42 Td (565,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 266.42 Td (Commercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.65 266.43 Td (226,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 266.42 Td (242,867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 266.42 Td (229,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 251.42 Td (Total net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.50 251.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.65 251.43 Td (857,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 251.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 251.42 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 251.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 251.42 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 235.08339843750002 m 192.724609375 235.08339843750002 l s q 0 0 0 rg BT 52.50 236.42 Td (Income \(expense\) from operations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.50 236.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 236.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 236.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 221.42 Td (Specialty Laser Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.50 221.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.65 221.43 Td (180,577) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 221.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 221.42 Td (133,506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 221.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 221.42 Td (117,947) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 206.42 Td (Commercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.65 206.43 Td (3,477) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.65 206.42 Td (9,127) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 206.42 Td (2,688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 191.42 Td (Corporate and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.30 191.48 Td (\(56,440) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 191.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.30 191.47 Td (\(41,886) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 191.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.30 191.47 Td (\(43,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 191.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 176.42 Td (Total income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.50 176.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.65 176.43 Td (127,614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 176.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 176.42 Td (100,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 176.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 176.42 Td (76,866) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 161.42 Td (Total other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.30 161.48 Td (\(4,718) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 161.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.30 161.47 Td (\(1,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 161.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 161.42 Td (2,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 146.42 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.65 146.43 Td (122,896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 146.42 Td (99,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 146.42 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 131.42 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.65 131.43 Td (35,394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 131.42 Td (23,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 131.42 Td (20,113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 116.42 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.50 116.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.65 116.43 Td (87,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 116.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 116.42 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 116.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 116.42 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 217 0 obj <>] /Rotate 0 /Contents 218 0 R>> endobj 218 0 obj <> stream BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.39 w 0 i [] 0 d 1 J 1 j 3 M 50 772.93359375 m 106.76171875 772.93359375 l s q 0 0 1 rg BT 50.00 774.00 Td (T) Tj ET Q q 0 0 1 rg BT 54.33 774.00 Td (able of Contents) Tj ET Q BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 754.00 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 754.00 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 754.00 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 734.00 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 734.00 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 734.00 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 734.00 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 734.00 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 734.00 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 734.00 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 710.00 Td (15. SEGMENT) Tj ET Q q 0 0 0 rg BT 114.83 710.00 Td ( ) Tj ET Q q 0 0 0 rg BT 116.78 710.00 Td (AND GEOGRAPHIC INFORMA) Tj ET Q q 0 0 0 rg BT 261.03 710.00 Td (TION \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (106) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (Geographic Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 675.25 Td (Our foreign operations consist primarily of manufacturing facilities and sales of) Tj ET Q q 0 0 0 rg BT 392.67 675.25 Td (fices in Europe and ) Tj ET Q q 0 0 0 rg BT 472.09 675.25 Td (Asia-Pacific. Sales, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.25 Td (marketing and customer service activities are conducted through sales subsidiaries throughout the world. Geographic sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.25 Td (information for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 651.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.53 651.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.53 651.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.53 651.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.97 651.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.97 651.25 Td ( is based on the location of the end customer) Tj ET Q q 0 0 0 rg BT 399.42 651.25 Td (. Geographic long-lived asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.25 Td (information presented below is based on the physical location of the assets at the end of each year) Tj ET Q q 0 0 0 rg BT 440.21 639.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 619.25 Td (Sales to unaf) Tj ET Q q 0 0 0 rg BT 124.97 619.25 Td (filiated customers are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 573.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 573.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 573.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 573.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 573.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 573.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 543.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 543.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 543.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 543.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 543.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 543.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 513.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 513.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 513.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 513.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 513.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 513.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 483.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 483.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 483.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 483.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 483.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 483.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 453.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 453.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 453.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 453.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 453.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 453.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 423.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 423.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 423.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 423.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 423.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 423.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 586.75 m 423.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 586.75 m 427.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 586.75 m 492.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 586.75 m 496.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 586.75 m 561.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 586.75 m 423.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 573.75 m 423.5 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 586.75 m 492.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 573.75 m 492.5 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 586.75 m 561.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 573.75 m 561.5 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 573.75 m 423.5 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 558.75 m 423.5 558.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 573.75 m 492.5 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 558.75 m 492.5 558.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 573.75 m 561.5 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 558.75 m 561.5 558.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 438.75 m 423.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 438.75 m 492.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 438.75 m 561.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 438.75 m 423.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 438.75 m 492.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 438.75 m 561.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 423.75 m 423.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 409.75 m 423.5 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 407.75 m 423.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 423.75 m 492.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 409.75 m 492.5 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 407.75 m 492.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 423.75 m 561.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 409.75 m 561.5 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 407.75 m 561.5 407.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 591.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 590.98 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52 576.730078125 m 77.34765625 576.730078125 l s q 0 0 0 rg BT 52.00 577.98 Td (SALES) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 577.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 577.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 577.98 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 563.42 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 563.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 563.43 Td (204,963) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 563.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 563.42 Td (213,483) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 563.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 563.42 Td (202,205) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 548.42 Td (Foreign countries:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 533.42 Td (South Korea) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 533.43 Td (187,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 533.42 Td (195,589) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 533.42 Td (167,473) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 518.42 Td (Japan) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 518.43 Td (193,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 518.42 Td (135,674) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 518.42 Td (124,765) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 503.42 Td (China) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 503.43 Td (63,050) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 503.42 Td (57,548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 503.42 Td (56,101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 488.42 Td (Germany) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 488.43 Td (71,427) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 488.42 Td (75,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 488.42 Td (86,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 473.42 Td (Europe, other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 473.43 Td (55,351) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 473.42 Td (53,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 473.42 Td (64,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 458.42 Td (Asia-Pacific, other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 458.43 Td (36,364) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 458.42 Td (28,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 458.42 Td (42,659) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 443.42 Td (Rest of World) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 443.43 Td (44,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 443.42 Td (43,629) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 443.42 Td (50,765) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 428.42 Td (Total foreign countries sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 428.43 Td (652,422) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 428.42 Td (588,977) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 428.42 Td (592,434) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 413.42 Td (Total sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 413.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 413.43 Td (857,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 413.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 413.42 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 413.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 413.42 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 389.25 Td (Long-lived assets, which include all non-current assets other than goodwill, intangibles and deferred taxes, by geographic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (region, are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 331.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 331.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 331.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 331.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 301.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 301.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 301.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 301.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 271.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 271.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 271.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 271.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 241.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 241.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 241.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 241.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 344.75 m 492.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 344.75 m 496.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 344.75 m 561.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 344.75 m 492.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 331.75 m 492.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 344.75 m 561.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 331.75 m 561.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 331.75 m 492.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 316.75 m 492.5 316.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 331.75 m 561.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 316.75 m 561.5 316.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 256.75 m 492.5 256.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 256.75 m 561.5 256.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 256.75 m 492.5 256.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 256.75 m 561.5 256.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 241.75 m 492.5 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 227.75 m 492.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 225.75 m 492.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 241.75 m 561.5 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 227.75 m 561.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 225.75 m 561.5 225.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 349.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 348.98 Td (Fiscal year-end) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52 334.730078125 m 134.91796875 334.730078125 l s q 0 0 0 rg BT 52.00 335.98 Td (LONG-LIVED ASSETS) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 335.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 335.98 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 321.42 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 321.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 321.43 Td (92,771) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 321.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 321.42 Td (82,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 306.42 Td (Foreign countries:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 291.42 Td (Germany) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 291.43 Td (55,786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 291.42 Td (33,964) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 276.42 Td (Europe, other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 276.43 Td (2,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 276.42 Td (2,993) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 261.42 Td (Asia-Pacific) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 261.43 Td (11,981) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 261.42 Td (11,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 246.42 Td (Total foreign countries long-lived assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 246.43 Td (70,245) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 246.42 Td (48,461) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 231.42 Td (Total long-lived assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 231.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 231.43 Td (163,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 231.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 231.42 Td (131,412) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (Major) Tj ET Q q 0 0 0 rg BT 76.53 207.25 Td ( Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 187.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 187.25 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.01 187.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.45 187.25 Td ( major customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.85 187.25 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.18 187.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.18 187.25 Td (17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.51 187.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.95 187.25 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.28 187.25 Td ( of consolidated revenue during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.56 187.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.56 187.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.56 187.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.56 187.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 175.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.16 175.25 Td (. ) Tj ET Q q 0 0 0 rg BT 126.98 175.25 Td (W) Tj ET Q q 0 0 0 rg BT 135.62 175.25 Td (e had another major customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.88 175.25 Td (16%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.21 175.25 Td ( of consolidated revenue during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.49 175.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.49 175.25 Td (. Both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.25 Td (customers purchased primarily from our SLS segment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 131.25 Td (16. SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 131.57 131.25 Td ( EVENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 111.25 Td (Acquisition of Rofin) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 91.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 91.25 Td (November7, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.93 91.25 Td (, we completed our previously announced acquisition of Rofin pursuant to the Mer) Tj ET Q q 0 0 0 rg BT 491.50 91.25 Td (ger ) Tj ET Q q 0 0 0 rg BT 506.22 91.25 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 79.25 Td (dated March 16, 2016. Rofin is one of the world's leading developers and manufacturers of high-performance industrial laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.25 Td (sources and laser) Tj ET Q q 0 0 0 rg BT 117.61 67.25 Td (-based solutions and components. ) Tj ET Q q 0 0 0 rg BT 254.53 67.25 Td (As a condition of the acquisition, we are required to divest ourselves of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 55.25 Td (Rofin) Tj ET Q q 0 0 0 rg BT 75.06 55.25 Td (s low power CO2 laser business based in Hull, United Kingdom, and will report this business separately as a ) Tj ET Q endstream endobj 219 0 obj <>] /Rotate 0 /Contents 220 0 R>> endobj 220 0 obj <> stream BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.39 w 0 i [] 0 d 1 J 1 j 3 M 50 772.93359375 m 106.76171875 772.93359375 l s q 0 0 1 rg BT 50.00 774.00 Td (T) Tj ET Q q 0 0 1 rg BT 54.33 774.00 Td (able of Contents) Tj ET Q BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 754.00 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 754.00 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 754.00 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 734.00 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 734.00 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 734.00 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 734.00 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 734.00 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 734.00 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 734.00 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 710.00 Td (16. SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 132.07 710.00 Td ( EVENTS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (discontinued operation until it is divested. ) Tj ET Q q 0 0 0 rg BT 219.57 695.10 Td (The acquisition was an all-cash transaction at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.93 695.10 Td ($32.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.43 695.10 Td ( per share of Rofin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (common stock. ) Tj ET Q q 0 0 0 rg BT 112.92 683.10 Td (The aggregate consideration paid by us to the former Rofin stockholders was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 683.10 Td ($904.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.54 683.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (excluding related transaction fees and expenses. ) Tj ET Q q 0 0 0 rg BT 243.96 671.10 Td (W) Tj ET Q q 0 0 0 rg BT 252.60 671.10 Td (e also paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.86 671.10 Td ($15.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.76 671.10 Td ( due to the cancellation of options held by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (employees of Rofin. ) Tj ET Q q 0 0 0 rg BT 133.19 659.10 Td (W) Tj ET Q q 0 0 0 rg BT 141.83 659.10 Td (e funded the payment of the aggregate consideration with a combination of our available cash on hand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (and the proceeds from the Euro ) Tj ET Q q 0 0 0 rg BT 177.61 647.10 Td (T) Tj ET Q q 0 0 0 rg BT 183.02 647.10 Td (erm Loan described below) Tj ET Q q 0 0 0 rg BT 288.71 647.10 Td (. ) Tj ET Q q 0 0 0 rg BT 293.53 647.10 Td (W) Tj ET Q q 0 0 0 rg BT 302.17 647.10 Td (e are in the process of evaluating the business combination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (accounting considerations, including the consideration transferred and the initial purchase price allocation.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 Td (Execution of the Cr) Tj ET Q q 0 0 0 rg BT 132.92 615.10 Td (edit ) Tj ET Q q 0 0 0 rg BT 150.97 615.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 167.45 615.10 Td (eement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 595.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 595.10 Td (November7, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.93 595.10 Td (, we entered into the Credit ) Tj ET Q q 0 0 0 rg BT 271.73 595.10 Td (Agreement by and among us, Coherent Holding GmbH, as borrower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.10 Td (\(the Borrower\), and certain of our direct and indirect subsidiaries from time to time party thereto, as guarantors, the lenders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.10 Td (from time to time party thereto, Barclays Bank PLC, as administrative agent and L/C Issuer) Tj ET Q q 0 0 0 rg BT 415.68 571.10 Td (, Bank of ) Tj ET Q q 0 0 0 rg BT 454.56 571.10 Td (America, N.A., as L/C ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.10 Td (Issuer) Tj ET Q q 0 0 0 rg BT 72.98 559.10 Td (, and ) Tj ET Q q 0 0 0 rg BT 94.74 559.10 Td (The Bank of ) Tj ET Q q 0 0 0 rg BT 147.04 559.10 Td (T) Tj ET Q q 0 0 0 rg BT 152.45 559.10 Td (okyo-Mitsubishi UFJ, Ltd., as L/C Issuer) Tj ET Q q 0 0 0 rg BT 316.35 559.10 Td (.) Tj ET Q q 0 0 0 rg BT 321.17 559.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 366.16 559.10 Td (Agreement provided for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.23 559.10 Td (670.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.12 559.10 Td ( Euro ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.10 Td (senior secured term loan facility and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.71 547.10 Td ($100.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.61 547.10 Td ( senior secured revolving credit facility with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.21 547.10 Td ($30.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.10 547.10 Td ( letter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.10 Td (credit sublimit and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.92 535.10 Td ($10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.82 535.10 Td ( swing line sublimit. ) Tj ET Q q 0 0 0 rg BT 271.80 535.10 Td (W) Tj ET Q q 0 0 0 rg BT 280.44 535.10 Td (e may increase the aggregate revolving commitments or borrow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.10 Td (incremental term loans in an aggregate principal amount of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.36 523.10 Td ($150.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.25 523.10 Td (, subject to certain conditions, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.10 Td (obtaining additional commitments from the lenders then party to the Credit ) Tj ET Q q 0 0 0 rg BT 351.94 511.10 Td (Agreement or new lenders. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.45 511.10 Td (November7, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.16 511.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.10 Td (we borrowed the full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.58 499.10 Td (670.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.48 499.10 Td ( Euros under the Euro ) Tj ET Q q 0 0 0 rg BT 279.55 499.10 Td (T) Tj ET Q q 0 0 0 rg BT 284.96 499.10 Td (erm Loan and its proceeds were used to finance the acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.10 Td (Rofin and pay related fees and expenses. ) Tj ET Q q 0 0 0 rg BT 214.44 487.10 Td (Also, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.83 487.10 Td (November7, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.54 487.10 Td (, we used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.53 487.10 Td (10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.42 487.10 Td ( Euro of the capacity under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.10 Td (Revolving Credit Facility for the issuance of a letter of credit. ) Tj ET Q q 0 0 0 rg BT 298.69 475.10 Td (W) Tj ET Q q 0 0 0 rg BT 307.33 475.10 Td (e expect to use future loans under the Revolving Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.10 Td (Facility) Tj ET Q q 0 0 0 rg BT 79.40 463.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 106.80 463.10 Td (, for general corporate purposes. ) Tj ET Q q 0 0 0 rg BT 238.51 463.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 283.50 463.10 Td (Agreement replaces our existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.67 463.10 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.56 463.10 Td ( Credit ) Tj ET Q q 0 0 0 rg BT 499.01 463.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.10 Td (with Union Bank of California. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 431.10 Td (The terms of the Credit ) Tj ET Q q 0 0 0 rg BT 166.75 431.10 Td (Agreement require Borrower to prepay the term loans in certain circumstances, including from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (excess cash flow beyond a threshold amount, from the receipt of proceeds from certain dispositions or from the incurrence of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (certain indebtedness, and from extraordinary receipts resulting in net cash proceeds in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.19 407.10 Td ($10 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.58 407.10 Td ( in any fiscal year) Tj ET Q q 0 0 0 rg BT 552.11 407.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (Borrower has the right to prepay loans under the Credit ) Tj ET Q q 0 0 0 rg BT 272.78 395.10 Td (Agreement in whole or in part at any time without premium or penalty) Tj ET Q q 0 0 0 rg BT 554.28 395.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (Revolving loans may be borrowed, repaid and reborrowed until the fifth anniversary of the Closing Date, at which time all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (outstanding revolving loans must be repaid. ) Tj ET Q q 0 0 0 rg BT 226.79 371.10 Td (The Euro ) Tj ET Q q 0 0 0 rg BT 266.59 371.10 Td (T) Tj ET Q q 0 0 0 rg BT 272.00 371.10 Td (erm Loan matures on the seventh anniversary of the Closing Date, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (which time all outstanding principal and accrued and unpaid interest on the Euro ) Tj ET Q q 0 0 0 rg BT 374.50 359.10 Td (T) Tj ET Q q 0 0 0 rg BT 379.91 359.10 Td (erm Loan must be repaid. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 339.10 Td (Loans under the Credit ) Tj ET Q q 0 0 0 rg BT 165.37 339.10 Td (Agreement bear interest, at the Borrower) Tj ET Q q 0 0 0 rg BT 329.56 339.10 Td () Tj ET Q q 0 0 0 rg BT 332.33 339.10 Td (s option, at a rate equal to either \(i\) the London interbank ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 327.10 Td (fered rate \(the Eurocurrency Rate\) or \(ii\) a base rate \(the Base Rate\) equal to the highest of \(x\) the federal funds rate, plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td (0.50%, \(y\) the prime rate then in ef) Tj ET Q q 0 0 0 rg BT 190.10 315.10 Td (fect and \(z\) the Eurocurrency Rate for loans denominated in U.S. dollars applicable to a one-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.10 Td (month interest period, plus 1.0%, in each case, plus an applicable mar) Tj ET Q q 0 0 0 rg BT 328.40 303.10 Td (gin. ) Tj ET Q q 0 0 0 rg BT 346.00 303.10 Td (The applicable mar) Tj ET Q q 0 0 0 rg BT 423.00 303.10 Td (gin for term loans borrowed as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.10 Td (Eurocurrency Rate loans, is 3.50% initially) Tj ET Q q 0 0 0 rg BT 221.31 291.10 Td (, and following the first anniversary of the Closing Date ranges from 3.00% to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.10 Td (3.50% depending on the consolidated total gross leverage ratio at the time of determination. For term loans borrowed as Base ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.10 Td (Rate Loans, the applicable mar) Tj ET Q q 0 0 0 rg BT 173.44 267.10 Td (gin initially is 2.50%, and following the first anniversary of the Closing Date ranges from 2.00% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.10 Td (to 2.50% depending upon the consolidated total gross leverage ratio at the time of determination. ) Tj ET Q q 0 0 0 rg BT 439.49 255.10 Td (The applicable mar) Tj ET Q q 0 0 0 rg BT 516.49 255.10 Td (gin for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.10 Td (revolving loans borrowed as Eurocurrency Rate Loans, ranges from 3.75% to 4.25%, and for revolving loans borrowed as Base ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.10 Td (Rate Loans, ranges from 2.75% to 3.25%, in each case, based on the consolidated total gross leverage ratio at the time of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.10 Td (determination. Interest on Base Rate Loans is payable quarterly in arrears. Interest on Eurocurrency Rate Loans is payable at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.10 Td (the end of the applicable interest period. Interest periods for Eurocurrency Rate loans may be, at the Borrower) Tj ET Q q 0 0 0 rg BT 492.48 207.10 Td () Tj ET Q q 0 0 0 rg BT 495.26 207.10 Td (s option, one, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.10 Td (two, three or six months. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 175.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 116.49 175.10 Td (Agreement requires the Borrower to make scheduled quarterly payments on the Euro ) Tj ET Q q 0 0 0 rg BT 458.97 175.10 Td (T) Tj ET Q q 0 0 0 rg BT 464.38 175.10 Td (erm Loan of 0.25% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.10 Td (the original principal amount of the Euro ) Tj ET Q q 0 0 0 rg BT 215.66 163.10 Td (T) Tj ET Q q 0 0 0 rg BT 221.07 163.10 Td (erm Loan, with any remaining principal payable at maturity) Tj ET Q q 0 0 0 rg BT 459.51 163.10 Td (. ) Tj ET Q q 0 0 0 rg BT 463.96 163.10 Td (A) Tj ET Q q 0 0 0 rg BT 470.63 163.10 Td ( commitment fee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (accrues on any unused portion of the revolving loan commitments under the Credit ) Tj ET Q q 0 0 0 rg BT 383.59 151.10 Td (Agreement at a rate of 0.375% or 0.5% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (depending on the consolidated total gross leverage ratio at any time of determination. ) Tj ET Q q 0 0 0 rg BT 393.10 139.10 Td (The Borrower is also obligated to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (other customary fees for a credit facility of this size and type. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 107.10 Td (On the Closing Date, we and certain of our direct and indirect subsidiaries, as guarantors, provided an unconditional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (guaranty of all obligations of the Borrower and the other loan parties arising under the Credit ) Tj ET Q q 0 0 0 rg BT 423.84 95.10 Td (Agreement, the other loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.10 Td (documents and under swap contracts and treasury management agreements with the lenders or their af) Tj ET Q q 0 0 0 rg BT 458.06 83.10 Td (filiates \(with certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.10 Td (limited exceptions\). ) Tj ET Q q 0 0 0 rg BT 131.24 71.10 Td (The Borrower and the guarantors have also granted security interests in substantially all their assets to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 59.10 Td (secure such obligations. ) Tj ET Q endstream endobj 221 0 obj <>] /Rotate 0 /Contents 222 0 R>> endobj 222 0 obj <> stream BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.39 w 0 i [] 0 d 1 J 1 j 3 M 50 772.93359375 m 106.76171875 772.93359375 l s q 0 0 1 rg BT 50.00 774.00 Td (T) Tj ET Q q 0 0 1 rg BT 54.33 774.00 Td (able of Contents) Tj ET Q BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 754.00 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 754.00 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 754.00 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 734.00 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 734.00 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 734.00 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 734.00 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 734.00 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 734.00 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 734.00 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 710.00 Td (16. SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 132.07 710.00 Td ( EVENTS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 695.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 116.49 695.10 Td (Agreement contains customary af) Tj ET Q q 0 0 0 rg BT 250.98 695.10 Td (firmative covenants, including covenants regarding the payment of taxes and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (other obligations, maintenance of insurance, reporting requirements and compliance with applicable laws and regulations, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (negative covenants, including covenants limiting the ability of us and our subsidiaries to, among other things, incur debt, grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (liens, make investments, make certain restricted payments, transact with af) Tj ET Q q 0 0 0 rg BT 348.66 659.10 Td (filiates, and sell assets.) Tj ET Q q 0 0 0 rg BT 442.35 659.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 487.34 659.10 Td (Agreement also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (requires us and our subsidiaries to maintain a senior secured net leverage ratio as of the last day of each fiscal quarter of less of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (than or equal to 3.50 to 1.00. ) Tj ET Q q 0 0 0 rg BT 167.08 635.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 212.07 635.10 Td (Agreement contains customary events of default that include, among other things, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (payment defaults, cross defaults with certain other indebtedness, violation of covenants, inaccuracy of representations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (warranties in any material respect, change in control of us and the Borrower) Tj ET Q q 0 0 0 rg BT 353.15 611.10 Td (, judgment defaults, and bankruptcy and insolvency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (events. If an event of default exists, the lenders may require the immediate payment of all Obligations, as defined in the Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (Agreement, and may exercise certain other rights and remedies provided for under the Credit ) Tj ET Q q 0 0 0 rg BT 423.53 587.10 Td (Agreement, the other loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (documents and applicable law) Tj ET Q q 0 0 0 rg BT 169.64 575.10 Td (. ) Tj ET Q q 0 0 0 rg BT 174.46 575.10 Td (The acceleration of such obligations is automatic upon the occurrence of a bankruptcy and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (insolvency event of default.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 543.10 Td (Segment Restatement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 523.10 Td (As a result of the acquisition of Rofin, and subsequent to fiscal 2016 year) Tj ET Q q 0 0 0 rg BT 365.12 523.10 Td (-end, we announced that in the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.10 Td (fiscal 2017 we will reor) Tj ET Q q 0 0 0 rg BT 144.29 511.10 Td (ganize our existing two segments into two new reporting segments for the combined company) Tj ET Q q 0 0 0 rg BT 520.50 511.10 Td (, OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.10 Td (Laser Systems and Industrial Lasers and Systems. ) Tj ET Q q 0 0 0 rg BT 251.14 499.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 300.47 499.10 Td (, our segment information will be restated retroactively in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.10 Td (first quarter of fiscal 2017.) Tj ET Q endstream endobj 223 0 obj <>] /Rotate 0 /Contents 224 0 R>> endobj 224 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (109) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 172.60 695.25 Td (QUAR) Tj ET Q q 0 0 0 rg BT 201.69 695.25 Td (TERL) Tj ET Q q 0 0 0 rg BT 228.01 695.25 Td (Y) Tj ET Q q 0 0 0 rg BT 234.86 695.25 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 293.47 695.25 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 344.11 695.25 Td (TION \(UNAUDITED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 675.25 Td (Summarized quarterly financial data for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.12 675.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.83 675.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.27 675.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.98 675.25 Td ( are as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 663.25 Td (thousands, except per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 623.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 623.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 623.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 623.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 623.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 623.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 623.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 623.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 623.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 623.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 623.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 623.75 18.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 593.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 593.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 593.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 593.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 593.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 593.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 593.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 593.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 593.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 593.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 593.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 593.75 18.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 563.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 563.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 563.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 563.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 563.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 563.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 563.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 563.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 563.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 563.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 563.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 563.75 18.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 533.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 533.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 533.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 533.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 533.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 533.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 533.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 533.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 533.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 533.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 533.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 533.75 18.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 503.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 503.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 503.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 503.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 503.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 503.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 503.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 503.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 503.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 503.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 503.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 503.75 18.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 473.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 473.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 473.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 473.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 473.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 473.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 473.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 473.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 473.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 473.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 473.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 473.75 18.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234.5 623.75 m 294.5 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 623.75 m 377.5 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 623.75 m 460.5 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 623.75 m 543.5 623.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.75 635.98 Td (First) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 250.05 627.98 Td (Quarter) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 334.75 635.98 Td (Second) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.05 627.98 Td (Quarter) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.95 635.98 Td (Third) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.05 627.98 Td (Quarter) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.00 635.98 Td (Fourth) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.05 627.98 Td (Quarter) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 613.43 Td (Fiscal 2016:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.00 613.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 613.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 613.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 613.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 613.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 613.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 613.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 613.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 598.42 Td (Net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.00 598.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.15 598.42 Td (190,275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 598.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 598.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 598.42 Td (199,882) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 598.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 598.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 598.42 Td (218,767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 598.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 598.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 598.42 Td (248,461) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 598.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 583.42 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 583.42 Td (83,898) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 583.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 583.42 Td (88,599) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 583.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 583.42 Td (94,559) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 583.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 583.42 Td (114,336) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 583.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 568.42 Td (Net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 568.42 Td (20,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 568.42 Td (17,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 568.42 Td (18,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 568.42 Td (30,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 553.42 Td (Net income per basic share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.00 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 553.42 Td (0.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 553.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 553.42 Td (0.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 553.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 553.42 Td (0.77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 553.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 553.42 Td (1.27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 553.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 538.42 Td (Net income per diluted share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.00 538.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 538.42 Td (0.84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 538.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 538.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 538.42 Td (0.73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 538.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 538.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 538.42 Td (0.76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 538.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 538.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 538.42 Td (1.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 538.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 523.43 Td (Fiscal 2015:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.00 523.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 523.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 523.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 523.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 523.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 523.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 523.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 523.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 508.42 Td (Net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.00 508.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.15 508.42 Td (200,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 508.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 508.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 508.42 Td (203,721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 508.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 508.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 508.42 Td (188,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 508.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 508.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 508.42 Td (209,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 508.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 493.42 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 493.42 Td (82,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 493.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 493.42 Td (83,304) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 493.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 493.42 Td (78,782) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 493.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 493.42 Td (90,994) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 493.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 478.42 Td (Net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 478.42 Td (17,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 478.42 Td (18,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 478.42 Td (13,264) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 478.42 Td (27,302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 463.42 Td (Net income per basic share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.00 463.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 463.42 Td (0.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 463.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 463.42 Td (0.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 463.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 463.42 Td (0.54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 463.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 463.42 Td (1.11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 448.42 Td (Net income per diluted share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.00 448.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 448.42 Td (0.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 448.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 448.42 Td (0.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 448.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 448.42 Td (0.53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 448.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 448.42 Td (1.10) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 225 0 obj <>] /Rotate 0 /Contents 226 0 R>> endobj 226 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 31.60 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.15 742.25 Td (INDEX ) Tj ET Q q 0 0 0 rg BT 290.70 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 297.19 742.25 Td (O EXHIBITS ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 723.75 51.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 723.75 13.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 113.50 723.75 448.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 679.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 679.75 13.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 113.50 679.75 448.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 649.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 649.75 13.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 113.50 649.75 448.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 599.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 599.75 13.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 113.50 599.75 448.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 549.75 512.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 694.75 m 100.5 694.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 113.5 694.75 m 561.5 694.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 714.98 Td (Sequentially) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 706.98 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 698.98 Td (Number) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.30 698.98 Td (Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 685.32 Td (21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 685.32 Td (Subsidiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 670.32 Td (23.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 670.32 Td (Consent of Independent Registered Public Accounting Firm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 655.32 Td (24.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 655.32 Td (Power of Attorney \(see signature page\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 640.32 Td (31.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 640.32 Td (Certification of Chief Executive Officer pursuant to Exchange Act Rule13a-14\(a\)/15d-14\(a\), as adopted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 630.32 Td (pursuant to Section302 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 615.32 Td (31.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 615.32 Td (Certification of Chief Financial Officer pursuant to Exchange Act Rule13a-14\(a\)/15d-14\(a\), as adopted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 605.32 Td (pursuant to Section302 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 590.32 Td (32.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 590.32 Td (Certification of Chief Executive Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 580.32 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 565.32 Td (32.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 565.32 Td (Certification of Chief Financial Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 555.32 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 539.42 Td (_________________________________________________________) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (All other exhibits required to be filed as part of this report have been incorporated by reference. See item15 for a complete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (index of such exhibits.) Tj ET Q endstream endobj 227 0 obj <> /View <>>>>> endobj 228 0 obj <> /View <>>>>> endobj 229 0 obj <> endobj 230 0 obj <> stream xy\E7~n{{w'd'52 HaGPPA!"" b-&h,+TLy?:uk?uΩoH""?W~.Xv3&rm 2\jMgwm'CڴzlycǏ\ rBjx\DsV@{twocmC{Iwl11z:1m!t-\q3D.:yz'Wɨp[_F=>E"ǢӦ/|K&_~=!wn-az3¦h$7,ؑ2Oo_eSFLlk}Fg[F>|;